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

To: Frank Williams who wrote (5739)	6/3/1998 6:14:00 PM
From: StaggerLee	Read Replies (1) \| Respond to of 14266

>>They are therefore probably expecting non-WCW related revenue to be around 11-12 million Last year's Q2 non-WCW revenues were $12.3 million. Which means that excluding the WCW line, the company has generated ZERO growth since last year. Anyone know what's going on with the Heliotrope folks? Haven't heard much out of them lately. Off in the Caribbean? Weren't they supposed to turn THQ into a high-margin PC-game operation? Haven't heard anything since the PAX flop.

To: Frank Williams who wrote (5739)	6/3/1998 6:14:00 PM
From: Kory	Read Replies (3) \| Respond to of 14266

You know, I really liked it better when THQ did not worry about the stock price and "tipping" off investors early. I would doubt that the people on this board were the first people to hear about this "1/3 WCW news" plus the "$16-19.5M revenue number". And when the dust clears, I'm sure that many of the larger funds were the ones selling this week, revenue projection in hand. At $20 million in sales, THQ will likely only make about $0.25 in EPS, unless of course some receivable reserves are released. Better than analysts estimates, but they aren't going to make $.50 with that revenue level. So what we have is Scenario B from my last post. Market seems happier with a lower profit number just because it isn't weighted so heavily to WCW. Problem is that WCW apparently has dropped from around $42 million in the first quarter to $7 million in this quarter. Hard to understand as the games are still in the top 10. I still like the company regardless of this quarter, as nothing is really new about this "announcement" except a falloff in WCW earlier than I would have liked to see. A little disappointing, but not a fundamental shift in the business model or future prospects. The fact that THQ is going public to try and prop the stock is probably my biggest concern at the moment. Please BF, go back to running the company and let the traders do what they wish. If you can squeeze an extra $0.25 each quarter from WCW, take it.