EA Reports Second Quarter Loss

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Electronic Arts has reported its financial results for its second fiscal quarter ended September 30, 2007.
During its second quarter, EA reported a net loss of $195 million compared to net income in the same quarter the previous year of $22 million.

Part of this is the result of a change in the way that EA recognizes revenue from the online sale of games. As a result of this change, $296 million of revenue that EA would have recognized in this quarter has been deferred to future quarters.

EA's best selling game during the quarter was Madden NFL '08. By platform, 35% of revenues came from PlayStation 2 games and 21% came from Xbox 360 games. Xbox and PSP games each contributed 8%, with all other platforms providing an even smaller contribution.

Finally, EA's Board of Directors officially approved its previously announced reorganization into four labels. As part of that process, EA expects to close certain studios (including its facility in Chertsey, England) EA will also eliminate jobs, end leases and reorganize its business support functions. EA expects to incur between $90 and $110 million while making these changes, but expects the changes will save $25 to $30 million annually.

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This page contains a single entry by Editor published on November 1, 2007 2:38 PM.

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