THQ 2007 Annual Report Download - page 2

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FISCAL 2007 KEY ACHIEVEMENTS
:: Posted 12th consecutive year of revenue growth with record net sales of more
than $1 billion
:: Gained share in each of our major markets - North America, Europe and
Australia/New Zealand*
:: Achieved operating margins equal to peak of last console cycle
:: Established two owned intellectual properties,
Saints Row™
and
Company
of Heroes™
:: Grew revenue from our licensed franchises, shipping nearly 8 million units of
Disney•Pixar’s
Cars
, 4 million units of
WWE® SmackDown® vs. Raw® 2007
and 4 million units combined of our new Nickelodeon titles
:: Published 8 games that shipped more than one million units
:: Secured the long-term videogame publishing rights to the Ultimate Fighting
Championship® (UFC)®
:: Expanded our Studio System to more than 1,500 people and 16 studios
:: Increased our percent of revenue from internally developed games to 40%,
up from 30% a year ago
:: Increased our international revenue to 42% of total sales and further expanded
our global footprint in Europe and Asia
:: Positioned the company to take advantage of the growing trends of digital
content creation and distribution
*Source of all market data referenced herein: The NPD Group, Inc., UK Chart Track and GfK
This annual report contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, the company’s expectations for revenue for the fi scal year ending March 31, 2008; the company’s expected percent
of fi scal 2008 revenue generated from owned intellectual properties and from internally developed properties; the company’s anticipated fi scal 2008 platform
mix; the company’s ability to continue to generate record results and for the company’s product releases and other fi nancial performance in future periods.
These forward-looking statements are based on current expectations, estimates and projections about the business of THQ Inc. and its subsidiaries (collectively
referred to as “THQ”) and are based upon management’s beliefs and certain assumptions made by management. Such forward-looking statements are subject
to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including,
but not limited to, economic, competitive and technological factors affecting the operations, markets, products, services and pricing of THQ. Unless otherwise
required by law, THQ disclaims any obligation to update its view on any such risks or uncertainties or to revise or publicly release the results of any revision to
these forward-looking statements. Readers should carefully review the risk factors and the information that could materially affect THQ’s fi nancial results,
described in other documents that THQ fi les from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the
fi scal period ended March 31, 2007, and particularly the discussion of risk factors that may affect results of operations set forth therein. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
In addition to results determined in accordance with United States generally accepted accounting principles (“GAAP”), THQ discloses non-GAAP fi nancial
measures that exclude stock-based compensation expense, associated income taxes and the payroll tax effects of our historical stock option grant practices
from the company’s Consolidated Statement of Operations. The use of such non-GAAP fi nancial measures allows for a better comparison of results in the fi scal
year ended March 31, 2007 to those in the same prior year period that did not include FAS 123(R) stock-based compensation expense. The non-GAAP fi nancial
measures included herein have been reconciled to the comparable GAAP results and should be considered in addition to results prepared in accordance with
GAAP, but should not be considered a substitute for, or superior to, GAAP results.