THQ reported an annual net loss of $431 million, a considerable drop from its $35 million loss the year prior.
THQ Chief Executive Brian Farrell opened the company’s earnings conference call on Wednesday by stating it had been a disappointing year for the California-based publisher.
Sales sunk to reach $830 million in full-year revenues, marking a drop of nearly 20 per cent compared to the year prior.
Due to the company’s poor performance, THQ has taken "swift and aggressive actions." It has realigned its business, says Farrell, for "profitability and positive cash flow in fiscal 2010." It’s also eliminated $220 million in planned expenditures and is investing in brands and products with the highest chance of driving long term growth.
That means that the publisher will cap its output to a couple of core titles each year, and further focus more on its kids and mass-market products, and eliminate staff.
THQ’s earnings for the fourth quarter ended March 31 also took a blow. Its Q4 revenues dipped to $170 million, compared to $187 million during the same period last year. It also posted a loss of $96.9 million for the quarter. In 2008, fourth quarter losses were $34.5 million.