EA has announced that it made a loss during its third quarter ended December 31, 2009 blaming a lack of launches and the decline in boxed product.
GAAP net revenue for the quarter was $1.243 billion compared with $1.654 billion for the prior year. Non-GAAP net revenue for the quarter was $1.346 billion, down 23 per cent as compared with $1.742 billion for the prior year. GAAP net loss for the quarter was $82 million compared with a net loss of $641 million for the prior year.
EA says the decline is due to several factors, including “fewer titles this holiday quarter versus the 2008 holiday quarter, and a weak overall packaged goods sector in Europe.” The firm says sales were driven by the launches of Dragon Age: Origins, Left 4 Dead 2, and NBA Live, and catalog sales of FIFA 10, Madden NFL 10, and The Sims 3.
John Riccitiello, Chief Executive Officer, said, “EA is growing share in our packaged goods business and our digital businesses continue to grow rapidly. Mass Effect 2 is the first blockbuster of 2010 and we are looking forward to the launch of Dante's Inferno and Battlefield Bad Company 2."
Looking ahead to 2011, Eric Brown, Chief Financial Officer, added, “We are expecting an increase in FY11 full year non-GAAP earnings per share on the basis of strong cost controls and growth in our digital businesses."
EA's highlights from the financial release report the publisher was number one in packaged goods in North America and Europe and that it reduced operating costs and projects fiscal year 2011 non-GAAP costs down $100 million versus fiscal year 2010.
The firm added that FIFA 10 has sold over 9.7 million copies since launch and EA's online games subscribers totaled 1.9 million in the quarter.