Electronic Arts Inc. (ERTS) reported a GAAP net loss of $391 million or $1.21 per share for the second quarter, compared to a net loss of $310 million or $0.97 per share in the prior year quarter.
Non-GAAP net income was $19 million or $0.06 per share, compared to a net loss of $20 million or $0.06 per share a year ago.
GAAP net revenue for the quarter declined to $788 million from $894 million, while non-GAAP net revenue grew 2% to $1.147 billion from $1.126 billion in the previous year quarter.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share on revenue of $1.13 billion for the quarter. Analysts' estimates typically exclude special items.
For fiscal year 2010, the company now expects GAAP loss of $1.20 to $2.05 per share, and non-GAAP earnings of $0.70 to $1.00 per share. GAAP net revenue is expected to be between $3.6 billion and $3.9 billion, and non-GAAP net revenue is expected to be about $4.2 billion to $4.4 billion. Analysts project earnings of $0.89 per share on revenue of $4.26 billion for the year.
Earlier, the company estimated GAAP loss to be $0.85 to $1.35 per share, and non-GAAP earnings of about $1.00 per share. GAAP net revenue was estimated to be in the range of $3.7 billion to $3.85 billion, and non-GAAP net revenue of about $4.3 billion for fiscal year 2010.
Further, the company plans to close several facilities, reduce about 1,500 positions, of which 1,300 are included in a restructuring plan. The majority of these actions will be completed by March 31, 2010.
This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million, the company said.
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