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

To: Sigmund who wrote (6256)	6/22/1998 3:00:00 AM
From: Todd D. Wiener	Respond to of 14266

"We may be able to figure out what they paid for WWF by the change in the accrued royalties number." Not necessarily. For one, there is a 50/50 joint venture, and THQ has to consult with D&T to find out how to account for the JV's sales and costs. The contract may have been signed, but perhaps THQ paid no upfront royalties yet. And any changes in the accrued royalties could be due to other contracts and titles. Product Development is salary, basically. Software Development (a balance sheet item) are capitalized royalties and expected development costs. THQ has very complex accounting. The income statement is easier in 1998, though. Operating interest is now part of G&A, project abandonment is part of royalties, and many costs that were previously considered G&A have been reclassified to selling. For proof, compare the Q1 10-Q for both 1998 and 1997. Todd

To: Sigmund who wrote (6256)	6/22/1998 3:04:00 AM
From: Marc Newman	Read Replies (1) \| Respond to of 14266

Some very encouraging channel checks rolling into the AOL board this weekend. Lots of stores selling 25-50 copies to date. Some selling a lot more. Others that had only sold a handful the first few days have suddenly sold a bunch, as word gets out. Reorders from central warehouses are already hitting the branch stores. Perhaps THQ will even be releasing the extra 25,000 that Farrell mentioned at the SH meeting. Also, most of these stores seem to be selling 5-15 WCW games per week, even at this late date in the selling cycle. New Granstream Saga release date may be June 27. Very bullish about THQI, Marc