THQ Inc. late Monday reported a 77 percent smaller fiscal second-quarter loss, withdrew its full-year guidance for the year and said it was evaluating strategic and financing alternatives.
After the markets closed, the struggling Agoura Hills video game developer reported a net loss of $20.98 million (-$3.06 a share) for the quarter ended Sept. 30, compared with a loss of $92.4 million (-$13.52) in the same period a year earlier. Net sales fell 26 percent to $107 million.
The Wall Street consensus was for a net loss of $3.47 a share on revenue of less than $84 million.
THQ, which has spent more than a year closing development studios, laying off workers and taking other actions to refocus the company, suspended its net sales and earnings guidance, and withdrew its previous guidance for fiscal 2013. It has hired Centerview Partners LLC to assist in evaluating options that would improve overall liquidity.
Those include raising additional capital to actions that would preserve the company’s ability to bring games to market during the most advantageous release windows. Also under consideration are steps that can be taken to deal with $100 million in 5-percent convertible senior notes due in August 2014.
THQ said that the launch date for “South Park: The Stick of Truth” has been pushed from March to early 2014. In addition, “Company of Heroes 2” and “Metro: Last Light,” now are expected to launch in March, also later than expected.
Jason Rubin, who joined the company as president in May, said the decision to take more time make the titles “market-ready” should improve their ultimate sales.
“I believe South Park’s market opportunity is significant. It is shaping up to be one of the most anticipated titles of calendar 2013,” Rubin said in a statement. “I firmly believe releasing our fourth quarter titles without extra time for polish, in the current environment, would lead to under performance that could in turn lead to future additional capital shortfalls.”
Shares earlier closed up 16 cents, or 5.6 percent, to $3.02 on the Nasdaq, and were unchanged in after-market trading.
