Video game retailer game station(GameStop) second-quarter results released after Wednesday showed sales up and losses narrowed from a year earlier, but the company said in a conference call that it "did not provide performance guidance or answer questions", causing the stock to fall more than 10 per cent at one point in after-hours trading.
The results showed a net loss of $61.6 million, or 85 cents per share, in the second quarter, compared with a loss of $111.3 million, or $1.71 per share, in the same period last year; adjusted loss per share was 76 cents, and analysts expected a loss of 67 cents; net sales rose to $1.18 billion from $942 million a year earlier, with analysts expecting $1.12 billion.
Game Station said the Securities and Exchange Commission (SEC) had asked the company to provide additional documents to investigate the trading activities of Game Station and other companies that were disclosed in May.
The game station said it did not expect the investigation to have a negative impact on the company.
Since the beginning of the year, PlayStation shares have been mired in a so-called "meme" retail trading frenzy, with interest from retail investors driving up the value of its shares by 957 per cent. The market capitalization of PlayStation has soared to $14.28 billion, but the company is still losing money.
The company's after-hours analyst conference call lasted less than 10 minutes and announced that it "does not provide performance guidance or answer questions".