Well LGS made about three games after Terra Nova, so maybe not. Their last full game was Thief 2 which I think made money but not enough to warrant them being kept alive in the wake of the Daikatana fiasco.
Terra Nova was the disaster that led to their demise. It's a shame because I was one of the 100,000 people that purchased it, and it is still one of my favourite games of all time. It's up there with SS2, Half Life, Quake.