THQ Announces First Quarter Profits and Financing Plans

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THQTHQ reported its financial results for its first fiscal quarter ended June 30, 2009. THQ also announced plans to undertake a $90 million financing effort.
For the quarter, THQ reported net income of $6.409 million, compared with a net loss of $27.224 million in the same quarter the previous year. THQ attributes its performance during the quarter to the success of UFC 2009 Undisputed (that has shipped more than 2.9 million copies) and Red Faction: Guerrilla.

For the quarter, THQ reported that two-thirds of its revenues came from domestic sales. By platform, Xbox 360 game sales provided 40.0% of THQ's revenues for the quarter, PlayStation 3 game sales provided 32.1% of revenues and the sale of DS games provided 8.2% of revenues with other platforms making up the balance.

THQ also announced that it plans to sell convertible senior notes due in 2014 to raise $90 million for general corporate purposes.

UPDATE (7/30/2009): THQ has priced the convertible senior notes due 2014. The notes will bear interest at 5.00% and will be convertible into 117.4743 shares of common stock per $1,000 principal amount of the notes (essentially, a price of $8.51 per share).

UPDATE (8/4/2009): THQ has completed its sale of the 5.00% convertible senior notes due 2014. The offering was in sufficient demand that the initial purchaser exercised its right to purchase an additional $10 million of notes. As a result, a total of $100 million of notes was sold, the proceeds of which will be used for general corporate purposes.

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This page contains a single entry by Editor published on July 28, 2009 1:28 PM.

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