Show Posts
Quote
Oct. 30 (Bloomberg) -- Electronic Arts Inc., the world's second-largest video-game maker, lowered its forecast for the fiscal year and said it would cuts jobs in response to a deteriorating economy. The shares fell.
The company will eliminate 6 percent of its jobs to save $50 million a year, Redwood City, California-based Electronic Arts said today in a statement. Profit excluding some costs will be $1 to $1.40 a share for the year ending in March, below the $1.30 to $1.70 projected in July.
Retailers are seeing a decline in foot traffic, Chief Financial Officer Eric Brown said in an interview. Shelf space for video games is increasing at key stores, he said. [/b]
``We're performing at or better than the overall industry so we're taking share,'' Brown said. ``We've adjusted as we think necessary.''
Electronic Arts fell $3.73, or 13 percent, to $24 in extended trading from a close of $27.73 in Nasdaq Stock Market trading. The stock has fallen 52 percent this year.
The company reported its second-quarter net loss widened to $310 million, or 97 cents a share, from $195 million, or 62 cents, a year earlier. Excluding some items, the 6-cent loss matched the average of 21 analyst estimates compiled by Bloomberg. Sales rose 40 percent to $894 million, lifted by ``Rock Band'' and the ``Madden'' football titles.
Sales in the current quarter will be hurt by a drop in consumer confidence and a delay in the release of a new ``Harry Potter'' game, Janco Partners analyst Mike Hickey said in a research note yesterday. The Potter game was postponed after Time Warner Inc. pushed back the release of ``Harry Potter and the Half Blood Prince'' to July from next month.
Viacom Inc.'s MTV Networks, maker of the ``Rock Band'' play-along video game, announced it will produce a title with songs from the Beatles for the 2009 holiday season. Electronic Arts distributes ``Rock Band.''
To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net
link
The company will eliminate 6 percent of its jobs to save $50 million a year, Redwood City, California-based Electronic Arts said today in a statement. Profit excluding some costs will be $1 to $1.40 a share for the year ending in March, below the $1.30 to $1.70 projected in July.
Retailers are seeing a decline in foot traffic, Chief Financial Officer Eric Brown said in an interview. Shelf space for video games is increasing at key stores, he said. [/b]
``We're performing at or better than the overall industry so we're taking share,'' Brown said. ``We've adjusted as we think necessary.''
Electronic Arts fell $3.73, or 13 percent, to $24 in extended trading from a close of $27.73 in Nasdaq Stock Market trading. The stock has fallen 52 percent this year.
The company reported its second-quarter net loss widened to $310 million, or 97 cents a share, from $195 million, or 62 cents, a year earlier. Excluding some items, the 6-cent loss matched the average of 21 analyst estimates compiled by Bloomberg. Sales rose 40 percent to $894 million, lifted by ``Rock Band'' and the ``Madden'' football titles.
Sales in the current quarter will be hurt by a drop in consumer confidence and a delay in the release of a new ``Harry Potter'' game, Janco Partners analyst Mike Hickey said in a research note yesterday. The Potter game was postponed after Time Warner Inc. pushed back the release of ``Harry Potter and the Half Blood Prince'' to July from next month.
Viacom Inc.'s MTV Networks, maker of the ``Rock Band'' play-along video game, announced it will produce a title with songs from the Beatles for the 2009 holiday season. Electronic Arts distributes ``Rock Band.''
To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net
link
I really want to know their PC Game numbers.
