Struggling gaming giant Electronics Arts posted an adjusted net loss for its fiscal fourth quarter of $120 million (37 cents per share), down from the $30 million profit (9 cents per share) it reported during the same period a year ago. The company also said it was “ahead of schedule on its cost-reduction initiatives.” EA’s adjusted revenue dropped 33 percent to $609 million, from $919 million a year ago. On average, analysts had expected a net loss per share of 43 cents on revenue of $631 million.
Some highlights from the earnings call after the jump:
— Cuts: CFO Eric Brown said EA, which is cutting about 11 percent of its workforce, remained “vigilant on managing costs.” He said during the call that the company expected its restructuring to be done by the end of the quarter.
— Mobile: The company said it brought in $189 million from its EA Mobile division, up 24 percent from a year ago. Executives said they expected to introduce 30 games for the iPhone this year.
— Sims 3: Sims 3 is still expected to be released on June 2 and executives emphasized that they were in the midst of an aggressive marketing campaign for the game. Pre-orders are tracking ahead of Sims 2, according to EA.
— Outlook: The company reinforced its guidance for the remainder of the year. Software sales were down 17 percent year-over-year in March. CEO John Riccitiello said during the call that “as we look forward … we haven’t noticed anything material to offset that weakness.” Music sales have been particularly hard hit, with sales down as much as 42 percent in March.