Warhammer Online & EA: The Good and the Bad
DateTime:7/8/2009 5:21:12 PM

EA took a massive hit in its earnings in Q4 2008 according to a financial release today. With net losses adding up to a staggering $641 million dollars, how could there possibly be a silver lining? Find out how Warhammer Online brightened the dismal report below:

GAAP net revenue for the third quarter was $1.65 billion, up $151 million as compared with $1.50 billion for the prior year. During the quarter, EA had a net deferral of $88 million of net revenue related to certain online-enabled packaged goods games and digital content as compared with $231 million in the prior year.GAAP net loss for the quarter was $641 million, including certain charges, as compared with a net loss of $33 million for the prior year. Diluted loss per share was $2.00 as compared with diluted loss per share of $0.10 for the prior year. During the quarter, the Company recorded an estimated pre-tax goodwill impairment charge of $368 million related to its wireless business and a $244 million charge for a valuation allowance reserve on certain deferred tax assets.

Non-GAAP net revenue was $1.74 billion, as compared with $1.73 billion for the prior year. Sales were driven by FIFA 09, Rock Band? 2, Need for Speed? Undercover, Rock Band, Left 4 Dead?, Dead Space?, Madden NFL 09, LITTLEST PET SHOP, NBA Live 09 and Mirror's Edge?.Non-GAAP net income was $179 million as compared with non-GAAP net income of $290 million a year ago. Non-GAAP diluted earnings per share were $0.56 as compared with non-GAAP diluted earnings per share of $0.90 for the prior year.