Sales declined and net income increased in the first quarter for video game publisher THQ Inc. when compared to the same period from a year ago.
The Agoura Hills-based company reported net income of $15.4 million, or $2 per diluted share, on revenue of $133.7 million for the quarter ending June 30. For the same period in 2011, THQ reported a net loss of $38.4 million, or $5.63 per diluted share, on revenue of $195.2 million.
Financial struggles at the game maker led to changes in its title mix and new executives to guide the company.
THQ exited the licensed children’s console game business, sold off its ValuSoft division that made value-based PC games and software, and relinquished the rights to release games based on the Ultimate Fighting Championship brand.
In May, the company announced that Jason Rubin would be the new president and Jason Kay as the new chief strategy officer. Ron Moravek was brought on in July as executive vice president, production.
In July, the company also did a 10-to-1 reverse stock split to raise the price per share and stave off being delisted from the NASDAQ exchange.
Those changes put THQ in a better position to deliver on its pipeline of new game releases, said Chairman and CEO Brian Farrell.
“Jason Rubin and his new team bring an entrepreneurial approach to our game slate as we seek to maximize the value of our intellectual properties and evolve our business in the face of our increasingly digital future,” Farrell said.
Mark R. Madler