THQ Wireless' Q2 FY11 sales down 46% to $1.5 million

THQ (NASDAQ: THQI) has revealed its THQ Wireless division generated $1.5 million of revenues during its second quarter, for the three months ending September 30, 2010.

This is down 46 percent from the $2.8 million of revenue it booked a year ago, and accounts for a mere 1.9 percent of the company's overall revenue.

THQ has restructured its operations over the past couple of years, with its mobile division being heavily cut back. Its highly regarded internal development studio Universomo was shut down in March 2010.

More recently though THQ Wireless has been slowly building up its smartphone business with external developers. For example, it was a launch partner for Windows Phone 7 with two titles; Star Wars: Battle for Hoth and De Blob.

It's also expected to be launching mobile games based on the UFC and SpongeBob SquarePants licences in future.

Like EA, THQ's handheld business was also significantly down. DS sales were down 13 percent year on year to $17.2 million, and PSP down 10 percent to $6.8 million.

Overall, the category it calls Handheld (mobile, DS, PSP) was down 15 percent to $25.6 million. It accounted for 33 percent of THQ's total sales.

THQ's net sales were $77 million, down 24 percent year on year. It made a loss of $47 million compared to a loss of $6 million a year ago.

THQ has cash and short term investments of $133 million, down 60 percent from its total at the end of March 2010.

All these figures are provided using the standard Generally Accepted Accounting Principles (GAAP).

[source: THQ]