Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: JEFFREY S. FENDER who wrote (11138)	6/28/1999 10:07:00 PM
From: Jim Fitzgerald	Read Replies (1) \| Respond to of 14266

"...for THQ to count sales they must also sell through the channel" WRONG! THQ sells to the distributors - not to the consumers. They usually have a pretty good idea how many will sell before they ship. Admittedly, the company tends to be conservative in its reserves, but I feel pretty confident that reserves for Rugrats will be significantly less than 100%

To: JEFFREY S. FENDER who wrote (11138)	6/28/1999 10:08:00 PM
From: Marc Newman	Respond to of 14266

Ah, JF got in before me. I was going to point out that he understands THQ's accounting backwards and forwards and his post was simply shorthand for "Farrell will count as many as he wants!" Like Jeff, I find it hard to believe that THQ will ship anything near 800,000 copies of Rugrats 64 in the last days of this month. They could. The end demand is certainly there. But this title is supposed to essentially offset Quest from last year. And didn't that title end up selling only 475,000 units or so? And don't we have stronger WCW sales this year than last, not to mention Rugrats tearing things up. I mean, what is there from last year to be offset and beaten by Rugrats? Nothing. Yet this quarter we have PSX reorders, a ripping GBC release (can't believe it is a top twenty game, that's almost unreal), and the big, big, big releases of the PSX game in certain European territories. I'm sure Farrell is going to have a quite big RR 64 reorder in Q3. Just the way he does business. Will Road Rash then slip to Sept. 29th? I wouldn't want to take that bet. Anyway, as it stands now, THQ is going to have such a better July, August, and September than last year it isn't even funny. To think, last Q3 we only did .21. From EB, via TaxDawg: Shao Lin PSX 8/3 Dead Unity PSX (dubious) 8/3 Championship Motocross PSX 8/17 Sinistar Unleashed PC 9/1 Micro Machines 1 & 2: Twin Turbo Gameboy 9/3 Road Rash N64 9/14 NHL 2000 GBC 9/22 Madden NFL 2000 9/22 GBC FIFA 2000 GBC 9/22 Tiger Woods 2000 GBC 9/22 Yoda Stories GBC (missed date) Also, presumably, Star Wars in Germany... ------------------- One last minor positive thought. THQ has been a decent performer this quarter. Up about 30% since the beginning of April. Possibly just a bit of window dressing as we end the month. Marc

To: JEFFREY S. FENDER who wrote (11138)	6/28/1999 10:14:00 PM
From: gofrank150	Respond to of 14266

Remember for THQ to count sales they must also sell through the channel, otherwise they are reserved for. And therefor are deducted from Sales>> Fender, we have had this discussion (or should I say argument) before. You know that I don't agree with you that THQ models / tracks / recognizes revenues in this way. I won't go into the discussion again, we have had it ad nauseum on the AOL board, but can we allow this to be the quarter to figure it out for sure? If the 10q comes out and the data shows they booked several hundred thousand units of Rugrats N64, then we will know that THQ doesn't follow your model, if they don't book very many, then we will know you are right after all. Another tell tale sign will be the WCW % in q3. By your model, they will still be booking revenue from it in q3 since it will not all be sold through by june 30. (Its still pretty well stocked in stores around here). I contend you will see zero revenue from WCW in q3 (it has to ship in the quarter to be recognized as revenue - at least in my model). Chris