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


To: Todd D. Wiener who wrote (12887)1/28/2000 7:20:00 PM
From: Marc Newman  Read Replies (1) | Respond to of 14266
 
<<If anyone here remembers, THQI wrote off some project abandonment costs a few quarters ago. I think it
was Dead Unity and Speed Tribes. Project abandonment costs have declined so much in the past few years
that THQI decided to lump them in the royalties line.>>

In Q4 1999 they said that abandoned projects came to $.15. Otherwise that quarter would've been $1.10, non-split adjusted. (I know, I'm simplifying here.)

This is yet another reason why we won't have as much trouble beating last year. There's simply not as much project abandonment as last year. I believe Knights of Carnage (whatever, was that a European title we got the rights to for here?) was expensed in Q2 and of course Shao Lin actually came out in Europe for the holidays.

Of course there are three other bonuses--

The PCPL pooling makes last Q4 a few pennies worse in the adjusted numbers

We still have NOL to use to lower the tax rate.

AKLM paid us big bucks for shipping WWF games late.

Marc

P.S.--Here's a question. What do we think the margins are for Reptar as a Greatest Hits vs. last year as a normal priced title. I know Sony charges less and of course the retailer has less markup. I assume the development costs are already paid too.