(By Balaseshan) Game software maker Electronic Arts Inc. (NASDAQ:EA) reported a 9% decline in quarterly earnings due to the impact of the change in deferred revenue from packaged goods and digital content. Adjusted loss was narrower than Street's expectations, while revenue missed consensus.
Profit fell 9% to $201 million for the first quarter, while earnings per share (EPS) decreased 4.5% to $0.63. Adjusted loss widened to $130 million or $0.41 per share from $123 million or $0.37 per share, due to change in deferred revenue (packaged goods and digital content).
Revenue declined 4.4% to $955 million, while adjusted revenue decreased 6.3% to $491 million due to a reduction in distribution revenue.
Analysts, on average, polled by Thomson Reuters had expected a loss of $0.42 per share on revenue of $500.08 million for the first quarter.
On an adjusted basis, revenue from total consoles plunged 31% to $194 million, while revenue from total mobile and handhelds jumped 31% to $89 million. Revenue from PC grew 21% to $186 million, while other revenue increased 10% to $22 million.
Looking ahead into the second quarter, the company anticipates adjusted earnings of $0.07 to $0.12 per share and adjusted revenue of $1.05 billion to $1.10 billion, while Street analysts predict profit of $0.14 per share on revenue of $1.07 billion.
For the fiscal 2013, the company expects adjusted earnings of about $1.05 to $1.20 per share and adjusted revenue of $4.10 billion to $4.25 billion, while Street predicts profit of $1.06 per share on revenue of $4.27 billion.
In addition, the company said its board of directors has authorized a program to repurchase up to $500 million of EA's common stock.
EA closed Tuesday's regular session down 1.87% at $11.02. The stock has been trading between $10.77 and $26.13 for the past 52 weeks.