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

To: Kelvin Taylor who wrote (10938)	5/27/1999 4:42:00 PM
From: Marc Newman	Read Replies (1) \| Respond to of 14266

Reason for the quick drop yesterday? From downandout on the AOL board: It appears that today's activity was impacted by the shares distributed to the PCPL owners yesterday. Pursuant to my discussions with management, there were no restrictions on the shares distributed so they could be sold at any time. Some shares have been placed in escrow and will be distributed at a later date. I was not able to find out the number of shares placed in escrow. THQ wanted the transaction to qualify as a pooling. Traeger and Harper wanted cash; therefore, as soon as it was possible to sell, they sold the shares of THQ they received. Pursuant to my discussion with management, the official word given to analysts was that the PCPL acquisition would be neither dilutive nor accretive to earnings this year. Due to accounting rules, it is possible that the second quarter may be slightly dilutive but that the last half of the year the acquisition will be accretive. This is because of non-development expenses with no corresponding revenues. Revenues will only be recognized when the games are released in Q3 and Q4. PCPL is presently working on 3 games, Road Rash, Nuclear Strike and Jet Moto. All are expected to be released this year. It has not been determined what games they will be working on for 2000 and beyond. PCPL has 25 employees.