NEW YORK - Video game publisher Electronic Arts Inc. posted a smaller net loss for its fiscal first quarter Tuesday and more than doubled its revenue thanks to soaring sales of games such as “Rock Band” — even as it spent more on marketing and development.
Both the earnings and revenue figures fell short of analysts’ estimates, however, and EA shares slipped in extended trading.
EA said Tuesday its loss for the quarter ended June 30 totaled $95 million, or 30 cents per share, compared with a loss of $132 million, or 42 cents a share, a year earlier.
On an adjusted basis, the company lost 42 cents per share this quarter, short of the 33 cents per share that analysts polled by Thomson Financial were expecting.
A loss in the slower spring and summer season is typical for video game companies, which make most of their money during the holidays. The profit and sales outlook EA issued Tuesday for the full fiscal year fell within the range of analysts’ expectations.
The Redwood City, Calif.-based company’s sales for the quarter jumped to $804 million from $395 million in the year-ago period. But they were boosted by the recognition of deferred revenue for certain online games. Without this benefit, sales totaled $609 million, short of Wall Street’s expectations of $640 million.
“We basically came in pretty much in line with own internal expectations,” Chief Financial Officer Eric Brown said in an interview. Adjusted earnings came in above and sales slightly below the company’s internal expectations.
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