Electronic Arts CEO Stepping Down As Lowers Guidance
NEW YORK (TheStreet) -- Electronic Arts (EA) CEO John Riccitiello will resign from the games software maker as the company struggles to reverse declining sales.
Riccitiello, who joined Redwood, Calif.-based Electronic Arts in 1991 is relinquishing his position and leaving the company's board on March 30. Larry Probst has been appointed as his replacement until the company settles on a permanent CEO.
EA, the maker of games such as the Madden franchise, Tiger Woods, and others, also announced that its revenue and earnings per share outlook for the current quarter will be lower than initially estimated. On Jan. 30 during the company's earnings call, EA said it expected revenue to be between $1.115 billion and $1.215 billion, earning between 92 cents per share and $1.12 per share. Now, the company expects its results "will be at the low end of, or slightly below previously issued guidance..." For the quarter, analysts polled by Thomson Reuters expect EA to report earnings of 65 cents per share on $1.08 billion in revenue.
Shares of Electronic Arts fell 0.9% to $18.71 during Monday's regular trading session, but rose 3.3% in after-hours according to Nasdaq.com.
--Written by Chris Ciaccia in New York
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