Electronic Arts Cuts 1,100 Jobs, Delays Sims 3, Trims FY ’09 Outlook; FY Q3 Revenues, Profits Disappoint

February 3, 2009 at 3:00 pm PT

The troubles are mounting for Electronic Arts (ERTS).

The videogame company today reported disappointing results for its fiscal third quarter ended December, cut its full year guidance, and announced plans to chop its workforce by 11 percent, or 1,100 people, while closing 12 facilities.

For the quarter, the company reported revenue of $1.74 billion, about flat with a year earlier at $1.73 billion, and below the Street consensus at $1.9 billion. EA reported a GAAP loss for the quarter of $641 million or $2 a share; on a non-GAAP basis, the company earned 56 cents a share, well below the Street outlook at 88 cents.

For the March 2009 fiscal year, the company now sees non-GAAP revenue of $4.1 billion and a loss of 35 cents a share; the Street consensus had been $4.66 billion and a profit of 60 cents.

Read the rest of this post

Tagged with: Barrons, Electronic Arts, Eric Savitz, frontpage, Tech Trader Daily, video game

comments so far. Add yours.

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Web Sites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other Web sites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Voices is edited by Beth Callaghan.