EA stocks down 9%
Company's revenue fell 25% to $1.24 billionEven while cutting 1,500 from its work force, Electronic Arts didn't rein in costs enough to turn a profit during the Christmas gift-giving quarter.
The company said that its net loss during the fiscal third quarter of 2010 was $82 million, an improvement over the year-ago loss of $641 million. Revenue fell 25% to $1.24 billion.
The video game company behind the "Madden NFL" franchise also offered current-quarter guidance of $800 million-$850 million; Wall Street had predicted $851 million.
Shares of EA rose 1% to $17.49 during the regular session but fell as much as 9% in after-hours trading once the results were made public.
EA blamed the disappointing results on weak sales in Europe and on the fact that it had fewer titles selling around the holidays than it had a year ago.
Big titles in the current quarter include "Mass Effect 2," out now, and "Dante's Inferno," coming in a few weeks.
During a conference call with analysts, EA chief executive John Riccitiello said that consumers are spending more time with their gaming consoles than ever before, even though the industry in 2009 had a "less powerful slate" compared with the previous year.