THQ on fraud allegations: Sorry, we didn’t mean to

THQThere are many things that affect one’s performance. For game publisher THQ, it’s their financial statement woes that’s been ongoing for some months now. It would be remembered that back in August of 2006, the Securities and Exchange Commission or SEC began conducting inquiries about the company’s options grants. Last November, NASDAQ threatened to de-list THQ.

When all these happened, THQ officials didn’t hide in their HQ’s deepest basement and cradled themselves to comfort. Instead, they initiated an independent investigation by a special committee to look into the matter.

The said group finally came up with findings the other day and according to them, there are incorrect measurement dates recording an US$ 11 million non-cash charge but there is no evidence of fraud. Were you able to get that? Well, it was rather dodging the bullet on their part but in simpler terms, THQ is saying that “Oops! We slipped up. Sorry.”

It is in this light that the company proposed the following corrections to SEC:

  • The $11 million after-tax charge covers the period of January 1, 1996 to March 31, 2006.
  • The adjustments, after-tax for fiscal 2007, were immaterial and will be reflected in the company’s quarterly report for the period ended September 30, 2006.
  • For each of the 2006, 2005 and 2004 fiscal years, the adjustments were about $2 million and will be reflected in the company’s amended annual report for the fiscal year ended March 31, 2006.
  • The information in the reports for the fiscal years 2002 to 2006 and the quarters in fiscal 2006 and 2005 should no longer be relied upon.

After they’ve ironed out all these jazz, we hope THQ will get back to business and start inking deals with various developers. We certainly do not want to lose games because of financial boo-boos.

Via Reuters

THQThere are many things that affect one’s performance. For game publisher THQ, it’s their financial statement woes that’s been ongoing for some months now. It would be remembered that back in August of 2006, the Securities and Exchange Commission or SEC began conducting inquiries about the company’s options grants. Last November, NASDAQ threatened to de-list THQ.

When all these happened, THQ officials didn’t hide in their HQ’s deepest basement and cradled themselves to comfort. Instead, they initiated an independent investigation by a special committee to look into the matter.

The said group finally came up with findings the other day and according to them, there are incorrect measurement dates recording an US$ 11 million non-cash charge but there is no evidence of fraud. Were you able to get that? Well, it was rather dodging the bullet on their part but in simpler terms, THQ is saying that “Oops! We slipped up. Sorry.”

It is in this light that the company proposed the following corrections to SEC:

  • The $11 million after-tax charge covers the period of January 1, 1996 to March 31, 2006.
  • The adjustments, after-tax for fiscal 2007, were immaterial and will be reflected in the company’s quarterly report for the period ended September 30, 2006.
  • For each of the 2006, 2005 and 2004 fiscal years, the adjustments were about $2 million and will be reflected in the company’s amended annual report for the fiscal year ended March 31, 2006.
  • The information in the reports for the fiscal years 2002 to 2006 and the quarters in fiscal 2006 and 2005 should no longer be relied upon.

After they’ve ironed out all these jazz, we hope THQ will get back to business and start inking deals with various developers. We certainly do not want to lose games because of financial boo-boos.

Via Reuters

Add a Comment

Your email address will not be published. Required fields are marked *