THQ Inc. Reports Loss in Second Quarter

THQ Inc., a Calabasas developer of video games, reported a second-quarter loss of $3.86 million on a 27% decline in revenue, to $5.17 million from $7.04 million a year earlier.

The company previously said it expected to lose between $3 million and $4 million in the quarter ended June 30 because of costs related to product-development, licensing and consolidation of offices as well as increased reserves for product markdowns and allowances. In the second quarter a year earlier, THQ had a profit of $26,000.

For the six months ended June 30, the company posted a loss of $3.46 million, in contrast to a profit of $1.23 million a year earlier. Revenue dropped 3%, to $17.2 million from $17.7 million in the first half of last year.