EA Posts Loss but Results Surpass Expectations

Video game publisher Electronic Arts says its fiscal second-quarter net loss narrowed, and its adjusted results handily surpassed expectations thanks to strong sales of the latest "FIFA" and "Madden" games.


For the three months ended Sept. 30, EA posted a net loss of $201 million, or 61 cents per share.

This compares with a loss of $391 million, or $1.21 per share, the same time last year.

On an adjusted basis, however, EA says it earned a profit of 10. The company had forecast a loss. EA's adjusted revenue was $884 million. Analysts, on average, were expecting an adjusted loss of 10 cents per share on revenue of $815 million, according to a poll by Thomson Reuters.

Looking ahead, the company, which affirmed its view for the fiscal year, said it expects current quarter earnings of between 50 cents to 60 cents a share on revenue of $1.375 billion to $1.5 billion. Wall Street analysts, on average, were expecting a 70-cent profit on revenue of $1.44 billion.

Shares of EA were down in extended trading Tuesday. Get after-hour quotes for Electronic Arts here.

The stock closed at $16.20 in the regular New York Stock Exchange session. Volume exceeded 9.4 million shares before the closing bell.

"We had another strong quarter, beating expectations both top and bottom line, " said John Riccitiello, CEO of EA in a prepared statement. "We credit our results to blockbusters like FIFA 11 and to innovative digital offerings like The Sims 3 Ambitions and Madden NFL 11 on the iPad."

Earlier Tuesday, EA announced it has entered into a five-year strategic relationship with Facebook. The deal is aimed to create a simplified and more accessible experience for users who play games and purchase virtual goods on Facebook. Facebook Credits will become the exclusive payment method in EA games on Facebook.

—CNBC.com staff contributed to this report.