Q2 results: EA, Glu receive mixed reception from Wall Street

Shares of Electronic Arts Inc. surged while Glu Mobile Inc.’s stock tumbled after both companies issued quarterly earnings reports.
EA, which continues to dominate the mobile gaming space, managed to exceed Wall Street’s expectations despite a net loss of $132 million for the quarter. The loss marks a 63% widening from the year-ago period, when the game-making giant lost $81 million.
Revenue from mobile games was $33 million, matching last year’s figure, and was down $3 million from the prior quarter. Overall revenue fell 4% to $395 million from $413 million during the same quarter in 2006.
EA shares jumped $3.19, or nearly 7%, to $51.27 following the news.
Glu narrowed its quarterly loss but reported revenue that failed to meet analysts’ expectations. The pure-play mobile publisher posted a net loss of $900,000, down from the $2.7 million loss during the year-ago period, on $16.4 million in revenue.
Glu, which netted $84 million in its March IPO, was expected to generate $16.7 million in revenue during the period, according to Reuters Estimates. Investors demonstrated their disappointment as shares of the San Mateo, Calif.-based company fell 98 cents, or more than 8%, to $11.03.
“We believe we are at the forefront of a large opportunity in the mobile gaming market, and with our balance sheet significantly bolstered by the proceeds from our IPO, we are well-positioned to drive forward with our long-term growth strategy to build the world’s leading mobile games company,” said CFO Rocky Pimentel.
Meanwhile, cross-platform publisher THQ Inc. continued to lose ground in mobile. The company posted $4.2 million in revenue from wireless games during the quarter, down 24% from the year-ago period, although the company narrowed its loss from the same quarter in 2006.