‘Great’ forecast softens EA loss

Video-game software publisher Electronic Arts Inc. posted a fiscal second-quarter loss as sales fell, but the company said it expected a “great” holiday season and shares rose after hours.

The firm had a net loss of $195 million, or 62 cents a share, compared with a profit of $22 million, or 7 cents, a year earlier.

The company attributed part of the loss to a change in how it accounts for sales of online-enabled games, now recognizing the sales on a deferred basis over an estimated service period.

Adjusted earnings, excluding the change in revenue recognition and other items, were $87 million, or 27 cents a share, 7 cents more than analysts surveyed by Thomson Financial expected.

Revenue, however, fell short of Wall Street expectations. Sales fell 18% to $640 million, well below the $896.2 million that analysts projected.

Shares of Redwood City, Calif.-based EA closed at $58.74, down $2.38 or 3.9%, but rose $2.46 in after-hours trading.