Electronic Arts Inc.’s (NASDAQ:ERTS) loss widened in the second quarter, as the company’s results were dragged down by higher costs. Loss widened to $340 million ($1.03 per diluted share) from $201 million (loss of 61 cents per share) in the same quarter a year earlier. Revenue Rose 13.3% to $715 million from the year earlier quarter. ERTS reported adjusted net income of 5 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 15 cents per share. It fell short of the average revenue estimate of $964.8 million.
“EA had a strong quarter on the strength of FIFA 12, Madden NFL 12, and The Sims Social,” said John Riccitiello, Chief Executive Officer. “Battlefield three is off to a fantastic start on sales and quality, and we are preparing to launch two more blockbusters: Need for Speed The Run, and Star Wars: The Old Republic.” “We are pleased with our results with digital growing at 30% year-over-year,” said Eric Brown, Chief Financial Officer. “We are raising our fiscal 2012 non-GAAP revenue guidance, our digital revenue guidance, and the midpoint of our EPS guidance.”
Competitors to Watch: Activision Blizzard, Inc. (NASDAQ:ATVI), THQ Inc. (NASDAQ:THQI), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Microsoft Corporation (NASDAQ:MSFT), KONAMI CORPORATION (NYSE:KNM), Majesco Entertainment Co. (NASDAQ:COOL), Sony Corporation (NYSE:SNE), Nintendo Co., Ltd (NTDOY), The Walt Disney Company (NYSE:DIS), and Glu Mobile Inc. (NASDAQ:GLUU).
Digital River, Inc.’s (NASDAQ:DRIV) net income fell in the third quarter from a year earlier, profit exceeded analysts’ expectations. Net income for the internet software and services company fell to $5.5 million (15 cents per share) vs. $5.9 million (15 cents per share) a year earlier. This is a decline of 5.9% from the year earlier quarter. Revenue rose 12.3% to $95.4 million from the year earlier quarter. DRIV reported adjusted net income of 32 cents per share. By that measure, the company beat the mean estimate of 13 cents per share. Analysts were expecting revenue of $94 million.
“We delivered good results in the third quarter, with revenue increasing over 12 percent from last year, and continue to see solid performance across our enterprise commerce business,” said Joel Ronning, Digital River’s CEO. “While we have tempered our fourth quarter guidance due to the softening in the economy, we remain confident in our global cloud commerce strategy. During the last decade, we’ve developed an international footprint second to none in the industry. Our global reach, combined with a proven payments solution and world class marketing services will continue to drive our revenue going forward.”
Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Akamai Technologies, Inc. (NASDAQ:AKAM), EasyLink Services Intl. Corp. (NASDAQ:ESIC), PFSweb, Inc. (NASDAQ:PFSW), eBay Inc. (NASDAQ:EBAY), GSI Commerce, Inc. (NASDAQ:GSIC), Oracle Corporation (NASDAQ:ORCL), Premiere Global Services, Inc. (NYSE:PGI), Tier Technologies, Inc. (NASDAQ:TIER), and Symantec Corporation (NASDAQ:SYMC).