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Earnings Roundup

Electronic Arts posts smaller loss

July 30, 2008|From Times Wire Services

Video game publisher Electronic Arts Inc. posted a smaller loss for its fiscal first quarter Tuesday and more than doubled its revenue thanks to soaring sales of games such as Rock Band, which EA distributes for Viacom Inc., even as the company spent more on marketing and development.

But both the earnings and revenue figures fell short of analyst estimates, and EA shares dropped in extended trading.

EA's loss for the quarter that ended June 30 was $95 million, or 30 cents a share, compared with a loss of $132 million, or 42 cents, a year earlier.

On an adjusted basis, the Redwood City, Calif., company lost 42 cents a share, more than the 33 cents analysts expected.

Sales jumped to $804 million from $395 million a year earlier. But they were boosted by the recognition of deferred revenue for certain online games. Without this benefit, sales totaled $609 million, short of analysts' expectations of $640 million.

Shares fell $1.77, or 3.7%, to $45.62 in extended trading after closing up $1.35 at $47.40.

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