Game maker EA posts narrower loss
Reduced expenses pay off as revenues fallNEW YORK -- Electronic Arts narrowed its fiscal fourth-quarter loss despite a 24% revenue decline as it reduced operating expenses.
The video game giant posted a quarterly loss of $42 million, compared with a loss of $94 million in the year-ago period. Revenue came in at $860 million amid a lighter release schedule.
Game titles released in the traditionally slow quarter included "Skate 2" and "Lord of the Rings: Conquest." Existing titles, such as "Rock Band 2," also were key sales drivers.
Operating expenses for the quarter hit $573 million, down from $702 million in the year-ago period.
"EA's strong cost actions in the (fourth fiscal year quarter) together with our investments in our digital service businesses will set us up for a stronger fiscal year 2010," said EA CEO John Riccitiello.
Before the earnings release, EA shares closed up 1.6% at $21.38.