THQ announced today that its net sales climbed 77% to $243.5 million for the first quarter ended June 30. The company also posted net income of $6.4 million, which is a huge improvement over the net loss of $27.2 million THQ suffered during the same period a year earlier. The publisher's results for the first quarter of fiscal 2010 were driven mostly by UFC 2009 Undisputed, along with some contribution from THQ's internally developed and owned intellectual property Red Faction: Guerrilla.
UFC was the best selling title in the June quarter in the U.S. and has shipped more than 2.9 million copies worldwide to date. Red Faction has shipped more than one million units.
“We reported the highest June quarter net sales and net income in our history, driven primarily by the success of our hit title UFC 2009 Undisputed,” said Brian Farrell, THQ president and CEO. “Our first quarter results demonstrate the benefits of our more focused product strategy and aggressive cost management. These record results reflect the hard work and dedication of our employees around the globe.”
He continued, “Our three recently announced business units - Core Games; Kids, Family and Casual Games; and Online Games - are focused on delivering a strong fiscal 2010 line-up and building our pipeline of games to support THQ’s long-term profitability and growth.”
THQ noted that thanks to the encouraging first quarter results, the company now expects fiscal 2010 net sales to top those reported in fiscal 2009, on a non-GAAP basis; THQ also now expects to achieve profitability for fiscal 2010, again on a non-GAAP basis. The company is expecting its fiscal 2010 cash reserves to grow by "at least $50 million" compared to the end of fiscal 2009.
In a separate announcement, THQ also stated that it plans to offer $90 million in convertible senior notes, which would be due in 2014. The net proceeds of the offering would be used "for general corporate purposes."
For more on the "new THQ" and the company's focus on quality, check out our interview with Danny Bilson.
