EA losses deepen to $340m
Friday, 28th October 2011 at 9:56 am
Revenues up but shares fall after 'conservative' projections
EA lost $340 million across July, August and September, the company has announced.
Revenues for the period increased by 22.5 per cent to $715 million. Gross profit was $283 million, though operating costs of $657 million helped sink EA to a sizable loss.
Of those operating costs, $222 million was attributed to marketing, and $318 million was attributed to development costs.
Total sales reached $1.03 billion, but shares fell more than 4 per cent in after-hours trading.
Reuters claims investors were puzzled the company did not raise its earnings outlook by more. For the full year, the company raised its outlook to a range of 75 cents to 90 cents per share, compared with a previous range of 70 cents to 90 cents.
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