THQ net loss shrinks but revenue drops in second quarter
SAN FRANCISCO (Reuters) - Video game publisher THQ Inc THQI.O reported a smaller net loss even as revenue fell in its fiscal second quarter as it continued to grapple with a weak market.
The company, known for its wrestling videogames, announced that the spring 2013 launch of South Park: The Stick of Truth, based on the popular animated television series, was postponed to 2014.
The release of strategy game "Company of Heroes" and first-person shooter "Metro:Last Light," that were expected to hit stores in March have also been delayed.
THQ said it has hired Centerview Partners LLC as it evaluates financing and strategic alternatives to raise capital and improve liquidity to tackle its new release calendar.
The company said total revenue dropped to $91.8 million from $119.6 million a year ago. It posted a net loss of $12.1 million, or $1.76 per share, compared to a net loss of $46.9 million, or $6.86 per share, a year ago.
Wall Street analysts on average expected the company to report a net loss of $3.47 per share, according to Thomson Reuters I/B/E/S. The company also exceeded Wall Street's revenue expectations of $84.26 million.
Ahead of the earnings report, shares of the games maker rose 5.6 percent to close at $3.02 on the Nasdaq. After-hours trade was halted pending the results.
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