Electronic Arts, Inc., the world's biggest producer of video games, just posted it's 1st quarter 2006 figures. They posted a net loss of $81 million (26 cents per share).
A quick explanation of earning per share (EPS) or in this care losses per share:
Basic EPS is figured by the following formula - net income divided by the weighted-average number of common stock shares outstanding.
In the classroom weighted average is figured by adding common stock outstanding at 1/1 and common stock outstanding at 12/31 then dividing this figure by 2.
EPS is very important to the external users of the financial statements and as such is always reported on the income statement below net income.
(This explantion does not take into account any dilution.)
