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So Much for Being Recession-Proof, Electronic Arts Warns

December 9, 2008
by Eric Savitz
Blogger and Columnist, Barron's, Tech Trader Daily

Eric Savitz

Electronic Arts (ERTS) this afternoon warned that its revenue and earnings for the March 2009 fiscal year would be below the guidance it provided on Oct. 30. The old forecast was for non-GAAP revenue of $5 billion to $5.3 billion, and non-GAAP EPS of $1 to $1.40 a share. The company said it will not provide any updated guidance for FY ‘09 before it reports FY Q3 results in February.

The videogame company said that the revised expectations are primarily the result of lower than expected sales in North America and Europe.

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