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

To: TimeToMakeTheInvs who wrote (10645)	4/23/1999 6:02:00 PM
From: AreWeThereYet	Respond to of 14266

knoxnews.com Is Nintendo liable for this too? aC

To: TimeToMakeTheInvs who wrote (10645)	4/23/1999 6:22:00 PM
From: Kory	Respond to of 14266

Listened to the conference call last night and thought everything went very well. I thought BF did a better job than previous calls giving guidance and answering questions. Gysi also did an admirable job. Only issue I had with the earnings is the fact that the reserve apparently is at about $19 million, which is only about $1 million more than it was in December. Given the strong gross margins, I would guess that the improvement had a lot to do with the greater mix of Playstation, but also due to a lower "new" reserve amount for the quarter. Also a slight concern about the higher G&A costs - but I have come to trust this management team and believe it will prove to be money well spent. By my calculation, THQ sold about 600,000 Rugrats PSX games in the quarter. (25% of revenue = approx. $20 million in sales / $30 per game?). I know there probably is an amount of GB sales in that number as well, but looks like a half million PSX units at least. That is amazing to me, considering it was in its second quarter of release and on a platform more oriented towards older gamers. Given that, I would guess that N64 Rugrats Scavenger Hunt should be at least a million seller in the 2nd and 3rd quarters. From that one game, THQ should be able to generate $50 million in revenue. Contrast that to the fact that THQ "only" had $56 million in the 2nd and 3rd quarters combined last year, and I would be confident of top and bottom line growth if I were Brian as well. Never mind if Road Rash or Sinistar are sucessful. Oh yeah, and the Star Wars games in Germany. If any of you can pull yourself from the stock market game, stop watching the ticker and go pick up a copy of Devil Dice. You'll be glad you did, will enjoy the game, give your brain a workout, put a few more bucks in THQ's coffers, and make you realize what a great company we have, whatever the stock price. As for the 1000 club; although I am a member a few times over, I am much happier being a member of the two year club - having not sold a single share ever purchased and owning a fair amount over two years now. Will park my PSX controller for the weekend and exchange it for a mountain bike trip down the Blue Ridge Parkway. I highly recommend it. Also, if any of you plan to visit our fine city for the U.S. Open in June, let me know and the first beer is on me. Kory