THQ suffers $9.3m net loss in Q1

THQ has posted its fiscal results for the first quarter of FY2008, revealing a year-on year drop in sales of $34.3 million and a net loss of $9.3 million.

The California-based company generated sales of $104.5 million for the period to June 30th, down from the $138.8 million made in Q1 2006.

However, the company’s net loss had narrowed from the $12.1 million reported last year.

The publisher said that sales were driven by Disney/Pixar’s Ratatouille, which has shipped more than a million units worldwide, as well as strong catalogue sales from last year’s runaway hits Cars and WWE SmackDown! vs. Raw 2007.

In his analysis, Wedbush Morgan’s Michael Pachter attributed the ‘lighter than expected revenues’ to ‘European PC sales shortfall’, but maintained a ‘strong buy’ rating for the firm adding that ‘THQ’s balance sheet is in excellent shape’.