THQI News -
THQ Fourth Quarter Net Income Increases 84% to $0.95 Per Share on Record Revenue of $111,318,000
1998 Net Income Increases 148% to $23,221,000 (Before Acquisition Charge) on 141% Revenue Gain
CALABASAS, Calif.--(BUSINESS WIRE)--Feb. 25, 1999-- THQ Inc. (NASDAQ NMS: THQI - news) announced today that net income for the fourth quarter ended December 31, 1998 increased 84% to a record $11,419,000, or $0.95 per diluted share, on 12,054,000 diluted common shares outstanding. This compares to net income of $6,203,000, or $0.56 per diluted share, for the fourth quarter of 1997 on 11,121,000 diluted common shares outstanding. Revenue increased 128% to a record $111,318,000 from $48,903,000 for the same period a year earlier.
For the year ended December 31, 1998, net sales were $215,060,000, a 141% increase from the $89,362,000 reported for fiscal 1997. Net income for the year was $23,221,000, or $2.00 per diluted share (before a one-time charge of $7,232,000 related to the acquisition of GameFx Inc. on May 1, 1998), versus $9,345,000 or $0.90 per diluted share for fiscal 1997. Including the one-time charge, net income for the year ended December 31, 1998 was $15,989,000, or $1.38 per diluted share.
''During 1998, THQ took its place among the top tier of game publishers,'' said Brian J. Farrell, president and chief executive officer, THQ. ''In addition to setting new records for sales and profits, we accomplished all of our strategic goals for the year, including a dramatic expansion of our list of titles and our worldwide distribution network. We are delivering on our commitment to provide leading-edge content for all game platforms, for all game genres, worldwide. THQ has the momentum and the tools needed to become a dominant game publisher. We look forward to further growth in 1999 as we work toward achieving this aggressive goal.''
Fourth quarter results reflected strong sales of ''WCW/NWO Revenge'' for the Nintendo 64, and ''Rugrats: Search for Reptar'' for the PlayStation and Game Boy. ''It is important to note, THQ's growth for 1998 was achieved with fewer titles shipped than in 1997. This means that we realized greater revenue per title than ever before in the Company's history, which we believe speaks to the high quality and entertainment value of our games,'' Farrell said.
As announced earlier this week, THQ placed among the top ten publishers in three different console system categories in the NPD TRSTS 1998 annual report of all software publishers. THQ was ranked the number four software publisher for the month of January 1999, and topped the console category for January 1999 with ''WCW/NWO Thunder'' for the PlayStation. THQ Inc. is a leading developer, publisher and distributor of interactive entertainment software worldwide for a variety of hardware platforms including PC CD-ROM and those manufactured by Nintendo and Sony. The THQ web site is located at www.thq.com.
The statements contained in this release, which are not historical facts, may be deemed to constitute forward-looking statements. Actual results may differ materially from those projected in such statements due to a number of risks and uncertainties, including, without limitation, demand and competition for the Company's products, and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. |
