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