Electronic Arts Q3 2013 Report Sees Revenue On The Decline
Like a number of other companies, Electronic Arts is delivering quarterly financial results today. The report we're seeing shows the results for EA's fiscal Q3 2013, and things could be a bit better for the company. The company is reporting a non-GAAP revenue of $1.18 billion, which came in below the company's guidance of $1.25 billion to $1.35 billion and was down from the year-ago quarter's revenue of $1.65 billion.
The company posted a non-GAAP net income of $176 million, while non-GAAP diluted earnings-per-share actually fell in line with guidance, coming in at $0.57. While that's decent, the GAAP numbers tell a different story. The company posted a GAAP revenue of $922 million but a net loss of $45 million, which results in a diluted loss-per-share of $0.15. That doesn't sound great, but one good point about these losses is that they're actually smaller year-over-year, and by a significant amount too.
It seems that the losses this quarter can at least partially be blamed on Medal of Honor: Warfighter. Launching to middling critical reception, Warfighter's sales were lower than expected, and Joystiq has confirmed that EA will be taking the series "out of rotation," meaning that it isn't going to be making any new Medal of Honor games for a while. Also remember that we seem to be closing in on the end of the current console generation, which is usually a time when players don't buy as many new games in anticipation of upcoming consoles – something that probably affected EA's sales too.
However, it wasn't all doom and gloom about EA's franchises, as the company also says that Dead Space 3 and Crysis 3 pre-orders are outpacing those of their predecessors. Battlefield 3 Premium also earned some recognition in EA's report, pulling in $108 million over the course of the quarter. FIFA 13 sold a whopping 12 million copies during the quarter as well, with digital revenue from the game topping $100 million for the period. So, while there were some things about the report that weren't so great, EA's biggest franchises are definitely in good shape.