Saints Row 2 in 2009

THQ released their earning for the second quarter of the year. Ratatouille the game drew strong sales for them. However, the most interesting announcement is that Saints Row 2 was announced with a 2009 fiscal year target date.

AGOURA HILLS, Calif.-Nov. 1, 2007-THQ Inc. (NASDAQ:THQI) today announced financial results for the second quarter of fiscal 2008 that are consistent with the company’s recently announced revised financial guidance.

For the second quarter of fiscal 2008, THQ reported net sales of $229.3 million, driven primarily by shipments of Disney/Pixar’s Ratatouille, as well as Stuntman®: IgnitionTM and JuicedTM 2: Hot Import NightsTM, each across multiple game systems. For the same period a year ago, THQ reported net sales of $240.2 million.

For the second quarter of fiscal 2008, THQ reported a GAAP net loss of $7.0 million, or $0.11 per share, which includes $0.08 per share of stock-based compensation expense. On a non-GAAP basis, excluding stock-based compensation expense, the company reported a net loss of $2.2 million, or $0.03 per share. For the same period a year ago, THQ reported GAAP net income of $11.6 million, or $0.17 per diluted share, which includes $0.08 per diluted share in stock-based compensation expense. On a non-GAAP basis, excluding stock-based compensation expense, net income for the prior-year period was $16.4 million, or $0.25 per diluted share. A reconciliation of non-GAAP to GAAP results is provided in the accompanying financial tables.

For the six months ended September 30, 2007, THQ reported net sales of $333.8 million, compared with $379.0 million in the corresponding prior-year period. The company reported a GAAP net loss of $16.3 million, or $0.24 per share, which includes $0.11 per share of stock-based compensation expense. On a non-GAAP basis, excluding stock-based compensation expense, the company reported a fiscal 2008 first half net loss of $8.4 million, or $0.13 per share. For the prior year period, THQ reported a GAAP net loss of $0.5 million or $0.01 per share, which included stock-based compensation expense of $0.10 per share. On a non-GAAP basis, excluding stock-based compensation expense, net income for the prior-year period was $5.9 million, or $0.09 per diluted share. A reconciliation of non-GAAP to GAAP results is provided in the accompanying financial tables.

“While we are disappointed with our recently revised fiscal 2008 financial guidance, we expect a solid second half to drive THQ’s 13th consecutive year of revenue growth,” said Brian Farrell, THQ president and CEO.

“Our proven holiday line-up features WWE SmackDown vs. Raw 2008, scheduled to release on twice as many platforms as last year. We have already shipped Cars 2: Mater-National, a sequel to last year’s top-selling family title, as well as games based on Nickelodeon’s popular Avatar, Nicktoons and SpongeBob characters.”

Farrell continued, “We are well positioned to increase sales and profitability in fiscal 2009, with a solid product slate, including Disney/Pixar’s Wall-E, Red Faction 3, Saints Row 2 and our first games based on the UFC.”

Recent Developments:
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* THQ announced Saints RowTM 2 for Xbox 360 and PlayStation 3 for fiscal 2009
* The company doubled its Nintendo DSTM revenue from the prior year, driven primarily by Ratatouille and the success of Drawn to LifeTM, a new original property created specifically for the Nintendo DS system

THQ strengthened the breadth of its product offering for family and casual gamers by:
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o entering into an agreement with American Girl®, a division of Mattel, Inc., for rights to publish video games based on the company’s line of popular dolls and books, and
announcing the upcoming launch of its Xbox LIVE arcade portfolio, featuring SpongeBob SquarePants: Underpants Slam

* During the quarter, the company repurchased $42 million of its common stock. THQ’s board recently authorized an additional $25 million for stock repurchase. As a result, the company has $42 million available for repurchase.

Fiscal 2008 Guidance

THQ reaffirmed its recently issued guidance for the third and fourth quarter, and full fiscal year ending March 31, 2008 as follows:

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* For the fiscal year ending March 31, 2008, THQ expects net sales of approximately $1.06 billion and GAAP net income of approximately $0.56, which includes $0.24 per diluted share of stock-based compensation expense. On a non-GAAP basis, excluding stock-based compensation expense, the company expects to report net income of approximately $0.80 per diluted share.
* For the fiscal third quarter ending December 31, 2007, the company expects to report net sales of approximately $490 million and GAAP net income of approximately $0.61, which includes $0.06 per diluted share of stock-based compensation expense. On a non-GAAP basis, excluding stock-based compensation expense, the company expects to report net income of approximately $0.67 per diluted share.

For the fiscal fourth quarter ending March 31, 2008, THQ expects to report net sales of approximately $240 million and GAAP net income of approximately $0.19, which includes $0.06 per diluted share of stock-based compensation expense. On a non-GAAP basis, excluding stock-based compensation expense, the company expects to report net income of approximately $0.25 per diluted share.