THQ Inc. on Wednesday said it swung to a profit in its fiscal third quarter, but results still fell short of Wall Street expectations. The video game maker also cut 60 jobs to focus more on digital distribution.

After the markets closed, the Agoura Hills company reported net income of $542,000 (1 cent a share) for the quarter ended Dec. 31, compared with a net loss of nearly $192 million (-$2.86) a year ago. Revenue for the publisher of the “Saints Row” and “WWE Smackdown vs Raw” franchises was flat at nearly $357 million.

Excluding one-time charges, the company earned 35 cents a share. Analysts surveyed by Thomson Reuters on average expected adjusted net income of 41 cents per share on revenue of nearly $357 million.

For its fourth quarter, THQ expects roughly break-even adjusted results and net sales of $175 million to $185 million.

In a separate announcement, THQ said it would cut 60 jobs as it realigns two out-of-state game development studios to focus on digital distribution. United Kingdom-based Juice Games and Phoenix, Ariz.-based Rainbow Studios will now focus on creation of games for digital distribution, as opposed to DVD and other hard media. The studios have been renamed THQ Digital Studios Warrington and THQ Digital Studios Phoenix, respectively.

“Consumers … want to enjoy games and entertainment via convenient social and portable platforms that suit their lifestyle,” said Danny Bilson, executive vice president for THQ Core Games, in a press release.

Last February, THQ announced it was cutting $220 million from its budget, closing several studios and laying off 24 percent of its workforce as part of an initiative to develop games in a more cost-effective manner.

Shares earlier closed down 6 cents, or 1 percent, to $5.10 on the Nasdaq.