THQ Reports Record Net Sales and Net Income for Fiscal 2007

THQ Reports Record Net Sales and Net Income for Fiscal 2007

THQ Inc. (NASDAQ:THQI) today announced record results for the fiscal year ended March 31, 2007 and reaffirmed its guidance for fiscal 2008. For the twelve months ended March 31, 2007, THQ reported its 12th consecutive year of revenue growth as net sales increased 27% to a record $1,026.9 million from $806.6 million for fiscal 2006. Net income for fiscal 2007 was $68.0 million, or $1.01 per diluted share, which included stock-based compensation expense of $0.23 per diluted share. This compares with prior-year net income of $32.1 million, or $0.49 per diluted share, which included stock-based compensation expense of $0.05 per diluted share. A reconciliation of GAAP to non-GAAP results is provided in the accompanying financial tables.

THQ reported fiscal 2007 fourth quarter net sales of $172.1 million and net income of $6.5 million, or $0.09 per diluted share, which included stock-based compensation expense of $0.06 per diluted share. New releases Supreme Commander and S.T.A.L.K.E.R.: Shadow of Chernobyl for Windows PC drove fourth quarter results as well as continued strong sales of WWE(R) SmackDown(R) vs. RAW(R) 2007 and Disney/Pixar’s Cars. In the same period a year ago, the company reported net sales of $148.1 million and a net loss of $8.6 million, or $0.14 per share, which included stock-based compensation expense of $0.02 per share.

“We are very pleased to report record revenues and net income in fiscal 2007. Additionally, our non-GAAP operating margin reached 10%, already meeting our peak margin in the last cycle. We expect continued revenue and margin expansion in each of the next several years,” said Brian Farrell, president and CEO, THQ.

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