Newly restructured game king Electronic Arts (NASDAQ:ERTS) reported its Q1 earnings on Aug. 1.

  • Adjusted net loss per share clocked in at $0.22, up from a net loss per share of $0.12 the previous year. Still, EA beat analysts' predictions that the company would lose $0.34 per share. The company must have been pleased by this showing, since it increased its guidance for the fiscal year.
  • North American and Asian sales declined by at least 20% each. However, Europeans not only purchased 21% more games year over year, but also beat North Americans in total sales. 
  • Electronic Arts has 10 new games in its pipeline, including the highly anticipated Rock Band, which will compete with Activision's (NASDAQ:ATVI) Guitar Hero. 
  • During the quarter, Electronic Arts continued its expansion by acquiring stakes in two online game companies: The9 (NASDAQ:NCTY) in China and Neowiz in South Korea. 

(Figures in millions, except per-share and CAPS data)

Q1 2007

Q1 2006

Change

Revenue

$395

$413

(4.4%)

Net Income

($132)

($81)

N/A

EPS

($0.42)

($0.26)

N/A

CAPS Score (out of 5)

Outperform

Underperform

CAPS

***

1039

108

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Foolish research associate Katrina Chan does not own shares in any of the companies mentioned.  The Motley Fool has a disclosure policy worth reading.