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Mary Nelson Garrett Investor Relations, THQ T: +1 818 871 5090 |
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Asam Ahmad Senior PR Manager, THQ asam@thq.com T: +44 1483 767656 F: +44 1483 770727 |
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Increases 45% to a Record $0.99 Per Diluted Share
On a 50% Increase in Revenue to a Record $190.9 Million
CALABASAS HILLS, Calif. – February 22, 2001 – THQ Inc. (NASDAQ NMS: THQI) announced today that net income for the fourth quarter of 2000 increased 45% to a record $21,532,000, or $0.99 per diluted share, on a 50% increase in revenue to a fourth-quarter record $190,913,000. For the fourth quarter of 1999, net income was $14,874,000, or $0.72 per diluted share, on revenue of $127,629,000.
For the year ended December 31, 2000, pro forma net income was $26,742,000, or $1.28 per diluted share, on record revenue of $346,952,000. These results exclude a one-time charge and the operating results prior to September 30, 2000 of Volition, Inc., a game developer acquired in August 2000 and accounted for as a pooling of interests. Including the one-time charge and Volition’s results, net income for the year was $18,189,000, or $0.84 per diluted share. For 1999, net income was $31,326,000, or $1.48 per diluted share, on revenue of $303,483,000.
The Company attributed its record fourth quarter performance to strong sales of new wrestling and kids titles, two of THQ's strongest segments, as well as the successful launch of its first PlayStation2 title, Summoner™. Key titles released during the quarter included WWF Smackdown! 2: Know Your Role™ for PlayStation and WWF No Mercy™ for Nintendo 64, the multi-platform release of Rugrats in Paris™ (based on the movie) for PlayStation, Nintendo 64 and Game Boy Color, and Scooby-Doo!: Classic Creep Capers for Nintendo 64.
Brian Farrell, president and CEO of THQ, said, "We are extremely proud of our accomplishments in light of a difficult market environment. Our strategy of harvesting the existing platforms while establishing a leadership position on the new platforms is serving us well.”
Reaffirms Guidance for 2001
As previously announced, THQ currently anticipates net earnings in the range of $0.02 to $0.04 per diluted share for the quarter ending March 31, 2001, $0.12 to $0.14 per diluted share for the quarter ending June 30, 2001, and $1.35 to $1.45 per diluted share for the full year.
"We continue to look forward to a strong second half of 2001 as the installed base of PlayStation 2 rises, Microsoft launches Xbox, and Nintendo launches Game Boy Advance and GameCube. We plan to release 25 new titles for these advanced platforms throughout 2001," Farrell said.
"In addition, during the year we expect to launch six new Hot Wheels and Matchbox adventures based on our new publishing agreement with Mattel. We plan to leverage our growing capabilities by launching several new THQ franchise brands during 2001, including Tetris, Sponge Bob, and Rocket Power to supplement our established franchises," Farrell said.
Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
About THQ
THQ Inc. develops, publishes and distributes interactive entertainment software worldwide for a variety of platforms including PC CD-ROM, and those manufactured by Microsoft, Sony and Nintendo. The THQ Web site is located at www.thq.com.
More complete financial results for the three months and twelve months ended December 31, 2000 and 1999 are contained in the attached tables. Table 1 results are shown without the one-time charge and Volition’s operations prior to September 30, 2000, and Table 2 results include the one-time charge and the pooling of Volition.
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This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing and difficulties encountered in the integration of acquired businesses. In addition, such statements could be affected by growth rates and market conditions relating to the interactive software industry and general domestic and international economic conditions. Specific information concerning these and other such factors is contained in the Company's most recent report on Form 8-K, filed with the Securities Exchange Commission on November 13, 2000. A copy of this filing may be obtained by contacting the Company or the SEC. The forward-looking statements contained herein speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.