Electronic Arts Warns Profit, Sales Will Be Short Of Guidance

Redwood City, CA (AHN) - Electronic Arts Inc. said Tuesday that its fiscal 2009 earnings and revenue will likely fall short of the guidance given on Oct. 30 due to weaker than expected holiday sales.

The videogame maker did not give updated earnings and revenue targets and does not plan to do so until the release of fiscal third quarter earnings in February 2009.

"While we saw significant improvement in the overall quality of our key products this year, we are disappointed that our holiday slate is not meeting our sales expectations," said John Riccitiello, Chief Executive Officer in a company statement.

Electronic Arts plans to reduce the size of its product portfolio for fiscal year 2010 and cut jobs that are related to those products.

"Given this performance and the uncertain economic environment, we are taking steps to reduce our cost structure and improve the profitability of our business," Riccitiello said.

Original guidance given in October called for fiscal 2009 earnings of $1 to $1.40 a share on revenue of $5 to $5.3 billion.

Shares of Electronic Arts fell 9.6 percent in after hours trading to $17.49 after dropping 11.5 percent during regular market hours.