widened its losses and missed Street estimates for its third fiscal quarter after a disappointing holiday period.
The video game company also announced plans to
reduce its workforce
by approximately 11%, or 1,100 people, closing 12 facilities. The firm expects to incur total
charges of $65 million to $75 million, which will be recorded over the next 12 months.
EA reported a loss of $641 million, or $2 a share, in the quarter, compared to a loss of $33 million, or 10 cents a share, in the same period a year ago.
Excluding charges, EA's net income was $179 million, or 56 cents a share, compared with net income of $290 million, or 90 cents a share, a year ago.
Revenue rose slightly to $1.74 billion from $1.73 billion a year ago.
Sales were driven by
Need for Speed Undercover
Madden NFL 09
NBA Live 09
. EA also noted the continued strength of its game Rock Band, which was launched in partnership with Harmonix and
game was EA's most popular, selling 7.8 million copies and
Need For Speed Undercover
sold 5.2 million copies.
Including all charges, EA reported revenue of $1.65 billion, up $151 million from $1.5 billion the year before.
Analysts were expecting earnings of 88 cents a share on revenue of $1.9 billion.
"Our holiday quarter came in below our expectations, and we have significantly reduced our financial outlook for 2009, a clear disappointment," said John Riccitello, EA's CEO.
its attempts to acquire rival
last year, now expects a loss of between $3.29 and $3.56 a share for fiscal 2009. Excluding charges, the company anticipates a loss of approximately 35 cents a share, well below its
of earnings between $1 and $1.40 a share.
Despite its poor third-quarter results, EA's shares rose 50 cents, or 3.23%, to $16.00 in extended trading Tuesday.