Their sales are down because they didn't have any major releases in this last quarter. Last year it was Splinter Cell which sold extremely well and the new Price of Persia.
I'm pretty sure the last PoP totally bombed. Its price dropped drastically within a month. I don't think Conviction sold all that well either. Less than 2 million units, which major publishers typically consider a disappointment. Mirror's Edge sold over 2 million units and we have yet to hear of any sequel.
EA has said they are working on a Mirror's Edge sequel.
Also, the new Prince of Persia sold over a million copies if I recall. I don't know how many of them were after drastic price cuts so maybe they didn't make any money on it though.