UPDATE 3-Electronic Arts loss narrows on cost cuts
* Q4 loss ex-items 37 cents vs Street view 43 cents loss
* Q4 non-GAAP revenue $609 mln vs Street view $633.1 mln
* Reaffirms fiscal year 2010 outlook
* Shares down nearly 4 pct after hours (Adds analyst comment, new details and stock quote)
SAN FRANCISCO, May 5 (Reuters) - Electronic Arts Inc (ERTS.O) reported a narrower-than-expected quarterly loss, helped by cost cuts, and the video game publisher affirmed its outlook for the current fiscal year.
But its sales fell short of Wall Street's expectations, sending shares down nearly 4 percent. Analysts said questions remain about EA's ability to grow revenue. EA still expects to develop 10 to 20 percent fewer game titles in fiscal 2010.
"Their cost savings were better than expected and that allowed them to post upside in EPS ... but top-line, people want to make sure trends remain robust, so that would be a disappointment" said Pacific Crest Securities analyst Evan Wilson. "It would be a bigger deal if they hadn't cut costs more than they thought they would."
EA reported a net loss of $42 million, or 13 cents a share, in its fiscal fourth quarter ended March 31, versus a net loss of $94 million, or 30 cents a share, in the year-ago period.
Excluding certain items, EA posted a loss of 37 cents a share, compared to the average analyst estimate of 43 cents, according to Reuters Estimates.
But non-GAAP revenue fell 34 percent to $609 million, lower than Wall Street's forecast of $633.1 million.
Chief Financial Officer Eric Brown told Reuters the company's cost-cutting program is ahead of schedule, and EA has reduced its headcount to 9,106 employees from 9,760. Operating expenses fell 18 percent to $573 million in the quarter.
The publisher of popular franchises such as "Need For Speed" and "Madden NFL" has been slashing jobs and closing facilities in an effort to overhaul its cost structure.
MAJOR RELEASES
Although the video game industry as a whole has been holding up relatively well in the economic downturn, much of the demand has been concentrated in top-selling titles.
EA is looking to rebound with a number of major releases scheduled for the current quarter, including "Godfather 2," which has already launched, and the forthcoming "Sims 3," "Harry Potter," and "Tiger Woods." Continued...
