Although THQ Inc.’s first quarter report for 2004 slightly exceeded analyst estimates, shares of the gamemaker’s stock dropped more than 10 percent today when the company hedged its financial outlook for Q2.
Officials said they expect sales of approximately $82 million with a net loss of 20 cents per share for the recent quarter, but that the low earnings would balance out due to higher-than-average expectations for Q4.
CEO Brian Farrell said THQ has been planning for a slow Q2 due to a “back-half weighted year,” likely to release the bulk of titles just before the holiday season. "All we have done is shipped revenue and earnings from Q2 to Q4," Farrell said.
In the announcement today, THQ reported its net sales for Q1 (the three months ending June 30) to have dropped to $88.2 million, down from $98.1 million in the same period last year.
Included in the announcement was news of COO Eric Doctorow’s resignation. Farrell will assume Doctorow’s responsibilities until and new executive is named.