EA posts $45 million net loss in Q3, reduces revenue forecast
Electronic Arts announced a net loss of $45 million for its third fiscal quarter, ending December 31, 2012. The figure represents a significant year-on-year improvement from the company's previous Q3 net loss of $205 million. However, net revenue for the quarter endured year-on-year decline, down from $1.061 million to $921 million.
In light of the economy's weakness, EA adjusted fiscal year net revenue forecasts to between $3.7 billion and $3.8 billion, down from the figures of $3.85 billion to $4 billion as per the company's Q2 financials. Speaking to Reuters, EA chief financial officer Blake Jorgensen noted the company's uncertainty over the market in the next few months.
"The economy hasn't gotten any stronger," Jorgensen said. "It's a little early for me to know how strong the market's going to be, so based on that we widened our range for revenue for the fourth quarter and brought our guidance down slightly just to make sure we're prudent."
Yesterday's financial call revealed continuing successes for many of EA's headline franchises, such as FIFA, Battlefield, Dead Space and Crysis. However, following the poor reception to Warfighter, the company said it's taking Medal of Honor "out of rotation."
