THQ Inc. (THQI, Financial) filed Quarterly Report for the period ended 2010-12-31.
Thq Inc. has a market cap of $373.7 million; its shares were traded at around $5.49 with and P/S ratio of 0.4. Hedge Fund Gurus that owns THQI: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns THQI: Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.
/td>The decrease in the nine months ended December 31, 2010 was primarily due to the same reasons as just described, as well as the release of Red Faction: Guerrilla in the same period last fiscal year with no comparable title released this fiscal year and a lower average net selling price on UFC Undisputed 2010 compared to UFC 2009 Undisputed in the same period last fiscal year. We estimate that changes in foreign currency translation rates during the three and nine months ended December 31, 2010, compared to the same periods last fiscal year, decreased our reported net sales in Europe by $3.9 million and $8.1 million, respectively.
Asia Pacific territory. We estimate that changes in foreign currency translation rates during the three and nine months ended December 31, 2010, compared to the same periods last fiscal year, increased our reported net sales in the Asia Pacific territories by $1.2 million and $3.6 million, respectively.
Total cost of sales decreased $19.9 million and $50.8 million in the three and nine months ended December 31, 2010, respectively, compared to the same periods last fiscal year. Excluding a $29.5 million one-time charge in venture partner expense recorded in the three months ended December 31, 2009 and also excluding a $24.2 million one-time benefit in venture partner expense recorded in the nine months ended December 31, 2009, both classified as “Cost of Sales — License amortization and royalties” in our condensed consolidated statements of operations, total cost of sales in the three months ended December 31, 2010 would have increased $9.6 million, and would have decreased $45.5 million in the nine months ended December 31, 2010, both reflecting a 12 point increase in total cost of sales as a percentage of net sales. (See “Note 13 — Joint Venture and Settlement Agreements” in the notes to the condensed consolidated financial statements included in Part I, Item I for further discussion of these one-time items.) These increases in total cost of sales as a percent of net sales were primarily due to impairment charges on our kids movie-based licenses. The increase in the nine months ended December 31, 2010 was also due to an increase in product costs as a percent of net sales.
Excluding a $29.5 million one-time charge in venture partner expense recorded in the three months ended December 31, 2009 and also excluding a $24.2 million one-time benefit in venture partner expense recorded in the nine months ended December 31, 2009, license amortization and royalties expense would have increased 13 points and 7 points as a percent of net sales in the three and nine months ended December 31, 2010, respectively. (See “Note 13 — Joint Venture and Settlement Agreements” in the notes to the condensed consolidated financial statements included in Part I, Item I for further discussion of these one-time items.) These increases were primarily due to impairment charges of $30.3 million recorded in the three months ended December 31, 2010. These impairments resulted from our reevaluation of sales expectations on kids movie-based licensed titles given the recent significant industry-wide slowdown in sales of console titles aimed at children, particularly movie-based kids titles. Also contributing to the increases was a high effective license amortization rate in the three months ended December 31, 2010 on Megamind.
General and administrative expenses consist of personnel and related expenses of executive and administrative staff and fees for professional services such as legal and accounting. In the three and nine months ended December 31, 2010, general and administrative expenses decreased $4.6 million and $11.5 million, respectively, compared to the same periods last fiscal year. These decreases were primarily due to lower personnel related costs. The decrease in general and administrative expenses in the three months ended December 31, 2010 was also due to recoveries of bad debt in that period. The decrease in the nine months ended December 31, 2010 was also due to lower legal costs due to settled litigation in the prior fiscal year period.
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Thq Inc. has a market cap of $373.7 million; its shares were traded at around $5.49 with and P/S ratio of 0.4. Hedge Fund Gurus that owns THQI: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns THQI: Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
In addition to publishing software, in November 2010, we launched our new uDraw GameTablet in North America. The uDraw GameTablet is a first-of-its-kind, innovative new gaming accessory developed by THQ initially for the Wii platform and was launched with an expansive drawing, coloring and art-based video game, uDraw Studio, for a suggested retail price of $69.99 in the U.S. In addition to uDraw Studio, we developed and published two other video games designed for use with the uDraw GameTablet - Pictionary and Dood's Big Adventure, which launched with the uDraw GameTablet for a suggested retail price of $29.99 each in the U.S. The uDraw GameTablet is scheduled to be available in Europe and other international territories in early 2011. We have a long-term product plan that includes a diverse software product offering of games we expect to develop and publish for the uDraw GameTablet./td>The decrease in the nine months ended December 31, 2010 was primarily due to the same reasons as just described, as well as the release of Red Faction: Guerrilla in the same period last fiscal year with no comparable title released this fiscal year and a lower average net selling price on UFC Undisputed 2010 compared to UFC 2009 Undisputed in the same period last fiscal year. We estimate that changes in foreign currency translation rates during the three and nine months ended December 31, 2010, compared to the same periods last fiscal year, decreased our reported net sales in Europe by $3.9 million and $8.1 million, respectively.
Asia Pacific territory. We estimate that changes in foreign currency translation rates during the three and nine months ended December 31, 2010, compared to the same periods last fiscal year, increased our reported net sales in the Asia Pacific territories by $1.2 million and $3.6 million, respectively.
Total cost of sales decreased $19.9 million and $50.8 million in the three and nine months ended December 31, 2010, respectively, compared to the same periods last fiscal year. Excluding a $29.5 million one-time charge in venture partner expense recorded in the three months ended December 31, 2009 and also excluding a $24.2 million one-time benefit in venture partner expense recorded in the nine months ended December 31, 2009, both classified as “Cost of Sales — License amortization and royalties” in our condensed consolidated statements of operations, total cost of sales in the three months ended December 31, 2010 would have increased $9.6 million, and would have decreased $45.5 million in the nine months ended December 31, 2010, both reflecting a 12 point increase in total cost of sales as a percentage of net sales. (See “Note 13 — Joint Venture and Settlement Agreements” in the notes to the condensed consolidated financial statements included in Part I, Item I for further discussion of these one-time items.) These increases in total cost of sales as a percent of net sales were primarily due to impairment charges on our kids movie-based licenses. The increase in the nine months ended December 31, 2010 was also due to an increase in product costs as a percent of net sales.
Excluding a $29.5 million one-time charge in venture partner expense recorded in the three months ended December 31, 2009 and also excluding a $24.2 million one-time benefit in venture partner expense recorded in the nine months ended December 31, 2009, license amortization and royalties expense would have increased 13 points and 7 points as a percent of net sales in the three and nine months ended December 31, 2010, respectively. (See “Note 13 — Joint Venture and Settlement Agreements” in the notes to the condensed consolidated financial statements included in Part I, Item I for further discussion of these one-time items.) These increases were primarily due to impairment charges of $30.3 million recorded in the three months ended December 31, 2010. These impairments resulted from our reevaluation of sales expectations on kids movie-based licensed titles given the recent significant industry-wide slowdown in sales of console titles aimed at children, particularly movie-based kids titles. Also contributing to the increases was a high effective license amortization rate in the three months ended December 31, 2010 on Megamind.
General and administrative expenses consist of personnel and related expenses of executive and administrative staff and fees for professional services such as legal and accounting. In the three and nine months ended December 31, 2010, general and administrative expenses decreased $4.6 million and $11.5 million, respectively, compared to the same periods last fiscal year. These decreases were primarily due to lower personnel related costs. The decrease in general and administrative expenses in the three months ended December 31, 2010 was also due to recoveries of bad debt in that period. The decrease in the nine months ended December 31, 2010 was also due to lower legal costs due to settled litigation in the prior fiscal year period.
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