AGOURA HILLS, Calif., Nov 02, 2011 (BUSINESS WIRE) -- --Holiday Slate Expected to Drive Biggest Quarter in Company History

THQ Inc. THQI +5.30% today reported financial results for the fiscal 2012 second quarter ended September 30, 2011.

For the three months ended September 30, 2011, THQ reported net sales of $146.0 million, compared with $77.1 million in the prior-year period. On a non-GAAP basis, for the three months ended September 30, 2011, the company reported net sales of $119.6 million, compared with $70.4 million a year ago.

For the three months ended September 30, 2011, the company reported a net loss of $92.4 million, or $1.35 per diluted share, compared with a net loss of $47.0 million, or $0.69 per diluted share, in the prior-year period. On a non-GAAP basis, for the three months ended September 30, 2011, the company reported a net loss of $46.9 million, or $0.69 per diluted share, compared with a non-GAAP net loss of $40.6 million, or $0.60 per diluted share, in the same period a year ago.

A reconciliation of non-GAAP to GAAP results is provided in the accompanying financial tables, and a supplemental consolidated reconciliation can be found at http://investor.thq.com .

"We are encouraged that our second quarter performance exceeded our expectations, particularly in a quarter with a light release schedule," said Brian Farrell, THQ President and Chief Executive Officer. "Our two biggest quarters of the year remain ahead of us, and we are focused on execution. In Q3 we are planning for the largest quarter in our history, in terms of sales and earnings, driven by Saints Row: The Third, the uDraw GameTablet, and WWE '12. With UFC Undisputed 3 launching in the fourth quarter, we are well-positioned to deliver a strong second half of fiscal 2012."

Fiscal 2012 Second Quarter Highlights and Recent Developments

-- THQ released Warhammer(R) 40,000(R): Space Marine(R). According to NPD, it was a Top 10 title in North America in September.

-- The company announced the next installment of the Homefront(R) franchise to be developed by Crytek, the creators of multiple award-winning first person shooters. The Homefront sequel is currently scheduled for release in fiscal 2014.

-- THQ completed the previously-announced realignment of its internal studios to narrow its focus on key strategic initiatives and franchises, and to properly align resources with its upcoming slate of games.

-- The company finalized a new asset-based credit facility with Wells Fargo Capital Finance, LLC. Under the new facility, the company may borrow up to $75 million during the current peak sales period.

Digital Highlights

-- THQ's digital revenues for the six months ended September 30, 2011 were 68 percent higher than the same period one year ago. The company continues to expect strong growth in digital revenues year-over-year in fiscal 2012.

-- The company launched its THQ.com website with new functionalities, user interface, and e-commerce features. New connectivity features will be introduced as THQ builds its online community and extends the game experience through game-to-web technology.

-- The closed beta for THQ's Margaritaville(R) Online game for Facebook began in October, and the commercial launch is targeted for January 2012. THQ also announced the December 2011 release of its new social/mobile game, Apples to Apples(TM), based upon the popular Mattel family game.

Fiscal 2012 Third Quarter Release Schedule

THQ has announced the following releases scheduled for the third quarter of fiscal 2012: