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THQ Inc. (THQI) filed Quarterly Report for the period ended 2011-12-31.
Thq Inc. has a market cap of $41.8 million; its shares were traded at around $0.6024 with and P/S ratio of 0.1.
This is the annual revenues and earnings per share of THQI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of THQI.
Highlight of Business Operations:
We provide our products through both the retail channel and through online digital delivery methods. Recently, the interactive entertainment software industry began delivering a growing amount of games, downloadable content and product add-ons by direct digital download through the Internet and gaming consoles. We believe that much of the growth in the industry will continue to come via online distribution such as massively multiplayer games, casual free-to-play micro-transaction based games, supplemental paid downloadable content, and digital downloads of full-games, including those on wireless platforms. Conversely, we believe retail sales for the industry will continue to be a decreasing revenue source over the next several years. For the twelve months ended December 31, 2011, retail software sales in the U.S. for the industry decreased 7.8% compared to the same period in 2010 according to The NPD Group; for the same period, across the U.K., Germany, France, Spain and Benelux, aggregated retail software sales decreased 7.4% compared to the same twelve-month period in 2010 according to GfK. However, digital sales for the industry are expected to grow over 20% worldwide in calendar 2011 and more than double over the next four years, to over $42.3 billion worldwide according to the International Development Group, Inc.'s Digital Gaming Thought Piece (October 2011). Accordingly, we plan to continue integrating digital components into our core game franchises. In the event our games are released with increasingly more undelivered elements at the time of sale, such as the online service present within some of our games, more of our revenue may be deferred, which will impact the timing of our revenue recognition but not our cash flow from operations.Net sales in Europe in the three and nine months ended December 31, 2011 increased $64.9 million and $84.3 million, respectively, compared to the same periods last fiscal year. We estimate that changes in foreign currency translation rates during the three and nine months ended December 31, 2011 decreased our reported net sales in this territory by $0.8 million and increased our reported net sales by $5.1 million, respectively. The increase in net sales in this territory in the three and nine months ended December 31, 2011 was primarily due to the release of Saints Row: The Third, with no comparable title released in the same period last fiscal year.
Net sales in the Asia Pacific territory in the three and nine months ended December 31, 2011 increased $16.6 million and $19.9 million, respectively, compared to the same periods last fiscal year. We estimate that changes in foreign currency translation rates increased our reported net sales in this territory by $0.9 million and $5.5 million during the three and nine months ended December 31, 2011, respectively. The increase in net sales in this territory in the three and nine months ended December 31, 2011 was primarily due to the release of Saints Row: The Third, with no comparable title released in the same period last fiscal year.
Net sales from our licensed properties represented 71% and 59% of our total net sales in the three and nine months ended December 31, 2011, respectively, compared to 72% and 76% of our total net sales in the three and nine months ended December 31, 2010.
December 31, 2011, a $28.9 million increase from $87.6 million at March 31, 2011. Allowances for price protection and returns as a percentage of trailing nine-month net sales, excluding the impact of changes in deferred net revenue, were 14% and 11% at December 31, 2011 and 2010, respectively. The increase was primarily due to allowances for price protection on uDraw. We believe our current allowances are adequate based on historical experience, inventory remaining in the retail channel, and the rate of inventory sell-through in the retail channel.
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