THQ cuts third-quarter sales forecast

Reuters News
Posted: Dec 07, 2011 5:19 PM
THQ cuts third-quarter sales forecast

By Liana B. Baker

(Reuters) - THQ Inc <THQI.O> cut its fiscal third-quarter sales forecast by 25 percent as the game maker said one of its products was not selling as well as expected, and its shares fell in after-hours trading.

Video game makers make most of their money in the December quarter, when they release their most important games.

The company now expects third quarter sales to be in the range of $382.5 million to $412.5 million. It previously expected sales to be $510 million to $550 million in the quarter.

Analysts on average are expecting sales of $529.43 million in the quarter, according to Thomson Reuters I/B/E/S.

The company blamed "weaker-than-expected initial sales" of the uDraw tablet it had made for Microsoft's <MSFT.O> Xbox and Sony's PlayStation <6758.T> game consoles. People can draw and play games with the game device, which is also available for Nintendo's <7974.OS> Wii.

Chief Executive Brian Farrell said in a statement that its two new games "WWE '12" and "Saints Row" would perform better than the company had anticipated on its last earnings conference call.

THQ shares fell 18 percent in after-hours trading. Earlier, they closed nearly 11 percent, or 18 cents, lower at $1.46 per share on Nasdaq on Friday.

(Reporting By Liana B. Baker)