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Technology Stocks : THQ,Inc. (THQI)

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To: Todd D. Wiener who wrote (9862)2/25/1999 2:42:00 PM
From: Bonzo  Read Replies (1) of 14266
 
Todd and all it was indeed a great quarter. Todd question, looking out to Year 2000, if THQ's joint venture agreement with JAKK's does not allow them to account for their portion of the WWF revenue at the top line, but on a separate "Unconsolidated Affiliate" line, which drops directly to pre-tax income, are you confident that THQ will be able to replace some $135M (63% of '98) of Wrestling revenue in 2000? I'm long but my concern is the perception of slower or decreasing revenue growth, in spite of increasing earnings. Farrell briefly mentioned at the CC that no final decision has been made but my expectations are that this revenue will not be consolidated since it is a true 50/50 JV. The company is on record, from recent communication with Debra Lake, that either way the JV is accounted for, they will still grow top and bottom line by =>20%. Any thoughts on this?
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