THQ Inc. said Wednesday it plans to cut nearly a quarter of its workforce after reporting a loss in its third quarter due to lower sales and a large goodwill impairment charge.
The Agoura Hills video game publisher reported a net loss of nearly $192 million (-$2.86 a share), compared with net income of $15.5 million (23 cents). Revenue fell 30 percent to $357 million. The company declined to provide guidance for its fourth quarter, citing the uncertain economy.
Excluding the non-cash goodwill impairment charge of $118 million and other one-time items, THQ's loss was 14 cents a share. Analysts surveyed by Reuters Estimates were expecting a profit of 7 cents per share on revenue of $402 million.
THQ said it plans to reduce headcount by 600 people by fiscal 2010 and reduce spending by $220 million. THQ, whose game franchises include "Saints Row," earlier announced it would cancel several games in development, close five studios and cut 250 jobs.
"Our focus for next fiscal year is to return to profitability and to generate cash," Chief Executive Brian Farrell said in a statement. "Our fiscal 2010 plan will reflect the benefits of our focused product strategy and strong actions on costs."
In a separate announcement THQ said Paul Pucino had been named executive vice president and chief financial officer, replacing Colin Slade, who is on indefinite medical leave. Prior to joining THQ, Pucino held the same positions at Classmates Media Corp., a subsidiary of Woodland Hills-based United Online Inc.
THQ shares, which closed down 10 cents, or 2 percent, to $4.14 on the Nasdaq, was down more than 15 percent in after-hours trading.
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