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Technology Stocks : THQ,Inc. (THQI)

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To: Quad Sevens who wrote (7265)	7/26/1998 11:32:00 AM
From: gofrank150	Read Replies (1) of 14266

<<Which is what THQ did in going from 9% to 12% isn't it? That's quite a jump--and the 12% in Q1 occurred in the most profitable quarter in the company's history. Farrell's got some tough comps to make in Q4 98 and Q1 99, and I think he's built up a little rainy day fund to help out a wee bit, no?>> Wade - I believe you are probably right, but since we haven't seen the resv rate drop back down yet, we can't say for sure. One thing we know for sure is that there really wasnt much need to reserve that much for the games that shipped in the quarter - most of Nitro and NWO initial shipments were sold at retail by the end of their respective initial quarters. Todd also pointed out they could be building up so they can ship a ton of WCW products in late 98 / early 99 without having to (rightfully) reserve a bunch. Of course, this assumes they knew they were going to lose WCW back when reserves were being made for 4q 1997. Could be. We will find out for sure come Feb when we get the numbers for 4q 1998. Hopefully, the 4q will be a tremendous blowout and they can still resv 12% and blow out last years .84. Chris

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