updated 05:59 pm EST, Mon November 5, 2012
Poor title performance, uDraw costs cited as reasons
While game publisher THQ exceeded its most recent quarterly projections, the company has warned that three of its titles will be released significantly later than previously planned, and as a result it will need to generate additional capital to continue operations. All financial guidance for the remainder of the fiscal year through March 2013 has been suspended.
THQ has hired Centerview Partners to revaluate the company's finances and to generate additional fiscal alternatives. The most pressing issue is that the company needs to address the August 2014 due date of $100 million in convertible senior notes.
"There can be no assurance that the evaluation of strategic and financing alternatives will result in a transaction or financing, or that, if completed, said transaction and/or financing will be on attractive terms," the company said in a statement. The company went on to say that no further public announcements would be made until a deal is concluded. THQ stock trades were suspended following the news, with the stock trading at $3.02 per share.