THQ losses rise to $56m

The Saints Row publisher has posted its financial results for its third quarter, showing a 275 per cent rise in net losses since the same period in 2010.

THQ posted a net loss of $55.9m for the three months ended December 31st, 2011 – up from just $14.9m in the same quarter the previous year.

Sales took less of hit, down three per cent from $314.6m to $305.4m. The company attributed this to poor sales of its kids, family and casual titles, such as uDraw.

Last month, THQ confirmed it would be withdrawing from this market to focus on core titles and digital initiatives.

"Saints Row: The Third and WWE ’12 demonstrate the strengths of THQ’s core gaming capabilities," said THQ president and CEO Brian Farrell.

"These titles performed at or better than the expectations we shared during our last investor conference cal, driven by favourable critical reviews, community engagement and outstanding marketing efforts.

"Sales of the uDraw GameTablet and related software, and other titles in the kids, family and casual category were far weaker than anticipated, substantially reducing our financial results for the quarter."

THQ estimates that lower revenue from uDraw, high inventory reserves, price protection and concessions at retail had a $33m impact on its operating income for the quarter.

The publisher ended the quarter with $47.7m in cash and cash equivalents, and no outstanding borrowings on its $50m credit facility.