According to a release calendar in today's earnings report, DMO is still on. The title is listed in the "Fiscal 2014 and beyond" category (Fiscal 2014 begins in April of 2013, just after the original release date), alongside other games THQ claims are still in the works: Turtle Rock Studio's unnamed FPS; Volition's inSane; Homefront 2; and the "Patrice Désilets Original Title." Additionally, THQ has "four unannounced core titles" for fiscal 2014 and beyond, indicating an intention to remain in business beyond fiscal 2014.
Somewhat closer to home, THQ also has two "unannounced core titles" for fiscal 2013 (this year through March 2013). That's in addition to UFC Undisputed 3, Darksiders 2, South Park, a new WWE release, Metro: Last Light, and Devil's Third.