(RTTNews) - Video game software developer Electronic Arts Inc. (ERTS: News ) is scheduled to announce second-quarter results after the market closes on Monday. The Redwood City, California-based company's software and content are playable on various consumer platforms, such as video game consoles, personal computers, handheld game players and wireless devices like cellular and smart phones. The company develops and markets a portfolio of games under the EA brand and also provides a collection of sports-based video games.

When the video game publisher releases results later in the day, on average, 26 analysts polled by Thomson Reuters expect the company to earn $0.07 per share for the quarter, with estimates ranging between a loss of $0.05 per share and a profit of $0.23 per share. Revenues are estimated to be about $1.13 billion. Analysts' estimates typically exclude special items.

On September 16, FBR Capital Markets lowered its second quarter pro forma per share estimate to a loss of $0.02 on revenue of $1.1 billion from a profit of $0.07 on revenue of $1.2 billion. According to the firm, the lowering was in an effort to balance the strength of Rock Band and the potential NFS improvement with the weakness in Madden and NCAA, along with two months of weaker-than-expected industry sales.

For the second quarter of the previous fiscal year, the company's net loss was $310 million and loss per share was $0.97. Net revenue for the quarter was $894 million. The company noted that sales were driven by the launches of Madden NFL 09, SPORE, Mercenaries 2: World in Flames NCAA Football 09, Tiger Woods PGA TOUR 09, Warhammer Online: Age of Reckoning, as well as the continued strength of Rock Band.
The video game industry is becoming highly competitive, and companies are trying to own as many franchises as possible either through acquisition or tie ups. The ongoing economic crisis, which has caused a sharp pull back in consumer spending, is putting further pressure on video game publishers. Feeling the pinch of the economic downturn, Electronic Arts said in February that it would reduce workforce by about 11% or 1,100 people, close 12 facilities, narrow its product portfolio and cut other variable costs.

The company said in August that its first quarter loss widened from last year, as revenue dropped mainly because of revenue deferral related to certain online-enabled packaged goods games and digital content. The company reported a GAAP net loss for the first quarter of $234 million or $0.72 per share, compared to a GAAP net loss of $95 million or $0.30 per share for the year-ago quarter. GAAP net revenue for the first quarter, which includes the impact of deferred revenue adjustments, fell 20% to $644 million from $804 million in the year-ago quarter.

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