THQ 2010 Annual Report Download - page 2

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Successful Turnaround in Fiscal 2010
In  scal 2010, our net sales grew 9%, in a market
that was down 12%, re ecting strong market share
gains for us over the past twelve months. In just
one year, we went from a $165 million operating
loss to a $16 million operating pro t. We delivered
earnings per share of $0.19 versus a loss of $1.52
last year.*
We strengthened our balance sheet, ending the
year with cash, cash equivalents and short-term
investments of $271 million, including $97 million
in net proceeds from the issuance of convertible
senior notes. Our net sales, pro tability and cash
generation each surpassed the  nancial targets we
set forth a year ago.  is strong  nancial turnaround
was accomplished by crisp execution on the strategic
plan outlined one year ago and signi cant cost
savings resulting from our business realignment.
Business Unit Structure and Product
Quality Drive Success; Building Strong
Product Pipeline for Future Growth
During the past year, we made fundamental changes
to our organization to address the evolving market
for video games.  e new business unit structure we
implemented in June of last year played an important
role in THQ’s successful turnaround by focusing
seasoned executives on key aspects of our business.
In addition, our enhanced creative development
organization and disciplined green light and project
management processes delivered consistent high
quality titles: Our average Metacritic quality scores
in  scal 2010 increased to 82 from 80 in  scal 2009
and 72 in  scal 2008.
We recently announced the integration of our
Online Games Business Unit into our Core Games
and Kids, Family, Casual Games Business Units.
is move positions THQ to seamlessly integrate
digital and online game strategies into all of our
key franchise plans in order to capitalize on the
industry’s largest growth opportunity. We are
embracing the Internet, social gaming, digital
connectivity and mobility as integral components
of our franchise plans as our consumers migrate
to acquiring and playing games online.
*non-GAAP results. A reconciliation of non-GAAP to GAAP results is provided in the  nancial tables following the Form 10-K in this annual report.
Dear Fellow Stockholders,
Last year, I wrote to you about the strong actions we took to position THQ for
success. I am very pleased to report that these actions resulted in a signi cant
turnaround in just one year. We have strengthened our organization, our product
pipeline and our balance sheet, enabling us to invest in pro table growth and
build long-term stockholder value.