Electronic Arts (NSDQ: ERTS) topped Wall Street expectations for its last quarter, sending the company’s shares up as much as two percent after-hours before falling back. The company also raised its guidance for the second quarter, saying that its NCAA Football title is “off to a great start.”
The video game giant reported net income of $221 million for FYQ1, compared to $96 million one year ago, on sales of $999 million, up from $815 million last year. Excluding certain items, including deferred revenue, EA would have lost $123 million, or 37 cents per share, on $524 in sales — but that’s less than the loss of 40 cents per shares that analysts had been expecting.
EA said digital revenue, which comes from games played on mobile devices, rose 11 percent to $209 million. Earlier this month, EA agreed to spend $750 million to acquire PopCap Games, the maker of Bejeweled and Plants vs. Zombies, in a move to bolster its position in the online game space. The deal includes a performance payout that could bring the total value to $1.3 billion.
EA has said that it expects PopCap to be “EPS neutral” to the company’s fiscal year 2012 results due to one-time acquisition costs, before adding to the bottom line in 2013.
The company raised its outlook for the next quarter slightly, saying it now expects a loss per share of 13 cents to 3 cents, excluding deferred revenue, compared to the its previous guidance of a loss of 15 cents to 5 cents. EA shares continued to bounce in after-hours trading,