THQ Q3: Sales Up, Profits Down (THQI)

No shocker, because they told us it would happen last month: video game software maker THQ had decent holiday season sales, but profits dropped.

The company reported $509.6 million of Q3 revenue, beating the Street’s $503.3 consensus, and up 7% year-over-year. Leading sales: WWE SmackDown vs. Raw 2008, a pro-wrestling game.

Net income tumbled 75% from $62.1 million in 3Q06 to $15.5 million, or 23 cents per share, last quarter, including a $27 million write-down for cancelling some projects, and $20 million in accelerated amortization expenses.

THQ is sticking by its slashed forecast for Q4: A net loss of 13 cents per share on $200 million of sales. Shares dipped about 2% after-hours, trading around $19.11. Release.

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