EA Earnings
From Marketwatch:SAN FRANCISCO (MarketWatch) -- Electronic Arts Inc. said its fiscal first-quarter loss widened from a year ago but the videogame software maker reported higher sales that ran past Wall Street's target.
Electronic Arts reported its fiscal first-quarter loss swelled to $81 million, or 26 cents a share, from $58 million, or 19 cents a share, in the year ago period. The bigger loss was partly attributed to stock option costs it didn't record the prior year. Excluding options and restructuring costs, the company said it would have lost $38 million.
Revenue rose 13% to $413 million, aided by sales of the "2006 FIFA World Cup," "Battlefield 2: Modern Combat," and "Need for Speed Most Wanted" video games, the company said.
EA actually went up in after-hours trading because the loss was less than expected and revenue exceeded forecast. I thought losing a dollar for every five dollars in revenue could be considered "ass," but hey, what do I know?
They're also forecasting a similar loss for the next quarter.
I'd say that they've improved on the quality issue, thanks to the relatively stellar 360 version of NCAA, but given that the PSP version clearly needs to be recalled, it still looks like a crap shoot. Yes, they're huge, but they have systemic problems, and marketing won't fix any of them.
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