EA’s profits drop 31 percent
Well, can’t say they didn’t warn us. But Electronic Arts missed even the downgraded estimates for their quarterly profits.
FULL STORY:
EA’s profits for the 2005 holiday season were down 31 percent from the same period in 2004. And even after announcing that Wall Street should lower expectations for the quarter, the world’s largest gaming publisher still missed analysts’ expectations — they earned 83 cents a share rather than the expected 90. Last year, EA earned $1.18 per share during the holiday quarter.
EA also announced yesterday that the company is laying off between 325 and 350 workers, about 5 percent of the work force.
“This is a period that’s bittersweet,” Warren Jenson, EA’s chief financial officer, said Thursday in a phone interview. “There’s a lot of positives that will take place this year, but there will be lots of challenges, too.”
• Electronic Arts profit slides 31 percent [Business Week]
