THQ earnings forecast improves due to Saints Row 3 sales, DLC
Are you ready for this? It’s … good news about THQ’s finances. The company is revising its earnings forecast for the quarter ending March 31, now reporting expectations of “non-GAAP net sales of $160 million to $170 million, which is above the company’s previous outlook of non-GAAP net sales in the range of $130 million to $150 million.” Non-GAAP earnings include “adjustments” or other non-recurring costs that aren’t included in the standardized GAAP numbers companies are required to report.
Unfortunately, there’s still some less-than-stellar news: The report will also have to account for “approximately $30 million to $50 million” in non-cash software development charges, “resulting from decisions made related to the company’s previously-announced product strategy.” A THQ representative tells Joystiq that these kinds of “charges” actually reflect a shift in expected performance of certain software – including the no-longer MMO Warhammer 40K Dark Millennium.
As for why the company is doing less poorly than expected, THQ cites three factors: Saints Row the Third, of which THQ has now shipped over four million units; “higher-than-expected digital sales” … mostly of Saints Row DLC; and “slightly” better sales of UFC Undisputed 3 than predicted.THQ earnings forecast improves due to Saints Row 3 sales, DLC originally appeared on Joystiq on Wed, 18 Apr 2012 14:00:00 EST. Please see our terms for use of feeds.
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