EA 1Q loss widens but results surpass expectations

Aug 04, 2009 By BARBARA ORTUTAY , AP Technology Writer
FILE - In this file video game image released by Electronic Arts, a scene from "The Sims 3," where various personality traits can be selected for a character, is shown. Electronic Arts is expected to report fiscal first quarter earnings after the market closes Tuesday, Aug. 4, 2009. (AP Photo/Electronic Arts, file)

(AP) -- Lower revenue from packaged video games amid a seasonal slump for the industry gave Electronic Arts Inc. a larger net loss in its fiscal first quarter. But investors cheered as its adjusted results soundly surpassed expectations.

Shares rose nearly 4 percent in after-hours trading as EA posted an adjusted loss Tuesday that was far smaller than estimates, thanks to strong launches of such games as "The 3" and "EA Sports Active."

Redwood City, Calif.-based EA said it lost $234 million, or 72 cents per share, in the April-June period, compared with a loss of $95 million, or 30 cents per share, in the same quarter a year earlier.

Revenue fell 20 percent to $644 million from $804 million.

Excluding charges and other items, EA lost 2 cents per share in the latest quarter. On this basis, analysts polled by Thomson Reuters had expected a loss of 13 cents a share.

Adjusted revenue, was $816 million, up 34 percent from last year. This is above the $729.5 million that analysts were expecting.

EA provides adjusted sales and figures because it counts revenue from the sale of online services included in some of its packaged games, as well as other online content, over an estimated service period rather than when the game is sold.

In the latest quarter, this meant the deferral of $172 million of revenue to later periods. In the year-ago period, however, it meant a benefit of $195 million.

Looking ahead, EA reaffirmed its previous adjusted guidance for fiscal 2010. It also said it expects a net loss of 85 cents to $1.35 for the year, compared with its earlier outlook of a loss of 85 cents to $1.45 per share.

On an adjusted basis, EA is forecasting a profit of about $1 per share on sales of $4.3 billion.

This compares with analysts' expectations of a profit of 97 cents per share on sales of $4.28 billion.

Shares rose 81 cents, or 3.7 percent, to $22.70 in after-hours trading. Before the release of results, EA shares closed up 34 cents, or 1.6 percent, at $21.89.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Monoprice takes on Amazon in trade of cheap electronics

add to favorites email to friend print save as pdf

Related Stories

EA posts smaller 4Q loss as costs decline

May 05, 2009

(AP) -- Video game publisher Electronic Arts Inc. posted a smaller net loss Tuesday for its fiscal fourth quarter as it further slashed costs in a quarter that had fewer hit game launches.

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

Soft PC sales send Microsoft profit down 29 pct

Jul 23, 2009

(AP) -- Microsoft Corp. said Thursday its profit in the last quarter plunged 29 percent because of weak computer sales, ending a fiscal year in which the software maker's revenue fell for the first time since ...

EBay 1st-qtr profit, sales fall on weak economy

Apr 22, 2009

(AP) -- EBay Inc. said Wednesday the weak economy contributed to declines in both earnings and revenue for the second consecutive quarter, but the online marketplace operator beat analysts' expectations.

Adobe 1Q profit, sales drop, squeezed by downturn

Mar 17, 2009

(AP) -- Adobe Systems Inc., the company behind the popular Photoshop software, posted a decline in fiscal first-quarter profit and sales Tuesday, squeezed by the economic downturn.

Recommended for you

Chinese tech giant Alibaba set to make a splash with US IPO

13 hours ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

Apr 19, 2014

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

User comments : 0

More news stories

Finnish inventor rethinks design of the axe

(Phys.org) —Finnish inventor Heikki Kärnä is the man behind the Vipukirves Leveraxe, which is a precision tool for splitting firewood. He designed the tool to make the job easier and more efficient, with ...

Making graphene in your kitchen

Graphene has been touted as a wonder material—the world's thinnest substance, but super-strong. Now scientists say it is so easy to make you could produce some in your kitchen.

Poll: Big Bang a big question for most Americans

Few Americans question that smoking causes cancer. But they have more skepticism than confidence in global warming, the age of the Earth and evolution and have the most trouble believing a Big Bang created the universe 13.8 ...