THQ posts $21 million loss, seeking financing after key game delays

Struggling video game publisher THQ reported earnings for its second quarter today, posting a $21 million loss on $107.4 million in revenue for the three months ending Sep. 30. In addition to announcing delays for three key titles originally slated for release in early 2013, THQ also revealed it was looking for financial help.

THQ announced it had engaged investment banking and private equity investment firm Centerview Partners to help the publisher find additional capital. The publisher says it is "evaluating strategic and financing alternatives" to improve THQ's "overall liquidity" and its ability to publish its upcoming titles.

The company warns that its financing alternatives may result in a transaction or financing that is not guaranteed to be on "attractive terms." THQ says it will not disclose the terms of that financing until its board deems appropriate.

During an investor call, THQ CEO Brian Farrell said that due to the financing process with Centerview Partners, "we have been advised not to conduct a Q&A following our prepared remarks today."

"We acknowledge that many of you will have questions, and we hope that you understand that we are not in a position to answer those questions until our work with Centerview has run its course," Farrell said.

THQ also said it is suspending sales and earnings guidance, and withdrawing its previous guidance for fiscal 2013.

Darksiders 2 was the one bright spot in THQ's earnings update. The Vigil Games-developed title shipped 1.4 million copies during the quarter, which THQ president Jason Rubin deemed "great."

"Observing this and other recent industry releases, one is left with a firm understanding that in this marketplace, only the absolute top tier of releases is making an impact on the game consumer," Rubin said.

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