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| [October 30, 2008] |
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EA Reports Second Quarter Fiscal Year 2009 Results
REDWOOD CITY, Calif. --(Business Wire)-- Electronic Arts Inc. (NASDAQ:ERTS) today announced preliminary financial results for its fiscal second quarter ended September 30, 2008.
Fiscal Second Quarter Results (comparisons are to the quarter ended September 30, 2007)
Net revenue for the second quarter was $894 million, up $254 million as compared with $640 million for the prior year. During the quarter, EA had a net deferral of $232 million of net revenue related to certain online enabled packaged goods games and digital content as compared with $296 million in the prior year.
Non-GAAP net revenue was $1.126 billion, up 20 percent as compared with $936 million for the prior year. Sales were driven by the launches of Madden NFL 09, SPORE(TM), Mercenaries 2: World in Flames(TM), NCAA(R) Football 09, Tiger Woods PGA TOUR 09, Warhammer(R) Online: Age of Reckoning(TM), as well as the continued strength of Rock Band(TM).
Net loss for the quarter was $310 million as compared with net loss of $195 million for the prior year. Diluted loss per share was $0.97 as compared with diluted loss per share of $0.62 for the prior year.
Non-GAAP net loss was $20 million as compared with non-GAAP net income of $87 million a year ago. Non-GAAP diluted loss per share was $0.06 as compared with non-GAAP diluted earnings per share of $0.27 for the prior year.
Trailing-twelve-month operating cash flow was $219 million as compared with $145 million a year ago. The Company ended the quarter with cash and short-term investments of $1.825 billion.
"Considering the slow down at retail we've seen in October, we are cautious in the short term," said John Riccitiello, Chief Executive Officer. "Longer term, we are very bullish on the game sector overall and on EA in particular. The industry is growing double-digits on the strength of three new game consoles and increases in the number of homes with broadband internet connections. EA is well positioned to benefit from these technology drivers due to the strength of our creative studios and our broad collection of game properties--from The Sims, to Spore and Madden NFL, to Warhammer Online."
Highlights
-- Madden NFL 09 sold 4.5 million copies and was the number one title across all platforms in the quarter based on NPD data.
-- SPORE is a hit selling nearly 2.0 million copies in just 3 weeks - over 40 million creatures have been uploaded into Sporepedia(TM). SPORE is the number one title on the PC in North America and number three title in Europe year-to-date.
-- Warhammer Online: Age of Reckoning, an MMO from EA's Mythic Entertainment studio, sold 1.2 million copies in the quarter - with over 800 thousand current players.
-- The EA SPORTS core portfolio of annual simulation games takes a step up in quality - up 4 points year-over-year according to Metacritic's aggregated review score system on the Xbox 360(R) and PLAYSTATION(R)3 entertainment systems.
-- EA was awarded 5 of the 9 honors at the Leipzig Games Convention in Germany -Spore as best PC game; Mirror's Edge(TM) as best Xbox 360 game; Skate It as best Wii(TM) game; Warhammer Online: Age of Reckoning as best online game; and Sonic Chronicles, a game developed by EA BioWare, won best Nintendo DS(TM) game.
-- EA Mobile is the world's leading publisher of games for phones - with revenue of $47 million - up 24 percent year-over-year.
-- EA BioWare and LucasArts announced the development of Star Wars(R): The Old Republic(TM), a story-driven massively multiplayer online PC game.
-- EA signs publishing agreements with Grasshopper Manufacture and Epic Games.
EA Announces Cost Reduction Plan
EA announced today a cost reduction plan, which will include the elimination of approximately 6% of the Company's workforce. The Company estimates its cost reduction plan will result in annual pre-tax cost savings of approximately $50 million.
Business Outlook
The following forward-looking statements, as well as those made above, reflect expectations as of October 30, 2008. Results may be materially different and are affected by many factors, including: development delays on EA's products; competition in the industry; the health of the economy in the U.S. and abroad and the related impact on discretionary consumer spending; changes in anticipated costs; expected savings and impact on EA's operations of the Company's cost reduction plan; consumer demand for console hardware and the ability of the console manufacturers to produce an adequate supply of consoles to meet that demand; changes in foreign exchange rates; consumer demand for games for the PlayStation(R)2; the financial impact of potential future acquisitions by EA; the popular appeal of EA's products; EA's effective tax rate; and other factors detailed in this release and in EA's annual and quarterly SEC filings.
Fiscal Year Expectations - Ending March 31, 2009
-- GAAP net revenue is expected to be between $4.9 and $5.15 billion
as compared with $3.665 billion in the prior year - up 33 to 41
percent.
-- Non-GAAP net revenue is expected to be between $5.0 and $5.3
billion as compared with $4.020 billion in the prior year - up 24
to 32 percent.
-- GAAP diluted earnings per share are expected to be a diluted loss
per share of $0.21 to diluted earnings per share of $0.07 as
compared with a diluted loss per share of $1.45 in the prior year.
-- Non-GAAP diluted earnings per share are expected to be between
$1.00 and $1.40 as compared with $1.06 in the prior year.
-- Expected non-GAAP net income excludes the following pre-tax items
from expected GAAP net income:
-- $100 to $150 million for the impact of the change in deferred
net revenue (packaged goods and digital content),
-- $211 million of estimated stock-based compensation,
-- $75 million of amortization of intangible assets,
-- $37 million of restructuring charges,
-- $40 million of losses on strategic investments,
-- $3 million in acquired-in process technology, and
-- $21 million of certain abandoned acquisition-related costs
In fiscal 2009, the Company began using a fixed, long-term projected tax rate of 28 percent internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company has applied the same 28 percent tax rate to its fiscal 2009 non-GAAP financial results. The Company expects its GAAP tax expense to be approximately $35 to $70 million for fiscal 2009.
Conference Call
Electronic Arts will host a conference call today at 2:00 pm PT (5:00 pm ET) to review its results for the fiscal second quarter ended September 30, 2008 and its outlook for the future. During the course of the call, Electronic Arts may also disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number: (877) 857-6177, access code 220497, or via webcast: http://investor.ea.com.
A dial-in replay of the conference call will be provided until November 6, 2008 at (719) 457-0820, access code 220497. A webcast archive of the conference call will be available for one year at http://investor.ea.com.
Non-GAAP Financial Measures
To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with GAAP, Electronic Arts uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by Electronic Arts include: non-GAAP net revenue, non-GAAP gross profit, non-GAAP operating income (loss), non-GAAP net income (loss) and historical and estimated non-GAAP diluted earnings (loss) per share. These non-GAAP financial measures exclude the following items, as applicable in a given reporting period, from the Company's unaudited condensed consolidated statements of operations:
-- Amortization of intangibles
-- Stock-based compensation
-- Acquired in-process technology
-- Restructuring charges
-- Losses on strategic investments
-- Change in deferred net revenue (packaged goods and digital content)
-- Certain abandoned acquisition-related costs
Through the end of fiscal 2008, Electronic Arts made certain income tax adjustments to its non-GAAP financial measures to reflect the income tax effects of each of the items it excluded from its pre-tax non-GAAP financial measures, as well as certain discrete one-time income tax adjustments. This approach was consistent with how the Company evaluated operating performance, planned, forecasted and analyzed future periods, and assessed the performance of its management team.
In fiscal 2009, the Company began using a fixed, long-term projected tax rate of 28 percent internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company has applied the same 28 percent tax rate to its fiscal 2009 non-GAAP financial results.
Electronic Arts may consider whether other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.
Electronic Arts believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company's performance by excluding certain items that may not be indicative of the Company's core business, operating results or future outlook. Electronic Arts' management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing the Company's operating results both as a consolidated entity and at the business unit level, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company's performance to prior periods.
In addition to the reasons stated above, which are generally applicable to each of the items Electronic Arts excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude certain items for the following reasons:
Amortization of Intangibles. When analyzing the operating performance of an acquired entity, Electronic Arts' management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any allocations made for accounting purposes. Because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets (including acquired in-process technology and goodwill), when analyzing the operating performance of an acquisition in subsequent periods, the Company's management excludes the GAAP impact of acquired intangible assets to its financial results. Electronic Arts believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.
In addition, in accordance with GAAP, Electronic Arts generally recognizes expenses for internally-developed intangible assets as they are incurred, notwithstanding the potential future benefit such assets may provide. Unlike internally-developed intangible assets, however, and also in accordance with GAAP, the Company generally capitalizes the cost of acquired intangible assets and recognizes that cost as an expense over the useful lives of the assets acquired (other than goodwill, which is not amortized, and acquired in-process technology, which is expensed immediately, as required under GAAP). As a result of their GAAP treatment, there is an inherent lack of comparability between the financial performance of internally-developed intangible assets and acquired intangible assets. Accordingly, Electronic Arts believes it is useful to provide, as a supplement to its GAAP operating results, a non-GAAP financial measure that excludes the amortization of acquired intangibles.
Stock-Based Compensation. Electronic Arts adopted SFAS 123(R), "Share-Based Payment" beginning in its fiscal year 2007. When evaluating the performance of its individual business units, the Company does not consider stock-based compensation charges. Likewise, the Company's management teams exclude stock-based compensation expense from their short and long-term operating plans. In contrast, the Company's management teams are held accountable for cash-based compensation and such amounts are included in their operating plans. Further, when considering the impact of equity award grants, Electronic Arts places a greater emphasis on overall shareholder dilution rather than the accounting charges associated with such grants.
Video game platforms have historically had a life cycle of four to six years, which causes the video game software market to be cyclical. The Company's management analyzes its business and operating performance in the context of these business cycles, comparing Electronic Arts' performance at similar stages of different cycles. For comparability purposes, Electronic Arts believes it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of its core business.
Restructuring Charges. Although Electronic Arts has engaged in various restructuring activities in the past, each has been a discrete, extraordinary event based on a unique set of business objectives. Each of these restructurings has been unlike its predecessors in terms of its operational implementation, business impact and scope. The Company does not engage in restructuring activities on a regular basis or in the ordinary course of business. As such, the Company believes it is appropriate to exclude restructuring charges from its non-GAAP financial measures.
Change in Deferred Net Revenue (Packaged Goods and Digital Content). Beginning in fiscal 2008, Electronic Arts was no longer able to objectively determine the fair value of the online service included in certain of its packaged goods games and online content. As a result, the Company began recognizing the revenue from the sale of these games and content over the estimated online service period. Although Electronic Arts defers the recognition of a significant portion of its net revenue as a result of this change, there has been no adverse impact to its operating cash flow. Internally, Electronic Arts' management excludes the impact of the change in deferred net revenue related to packaged goods games and digital content in its non-GAAP financial measures when evaluating the Company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. The Company believes that excluding the impact of the change in deferred net revenue from its operating results is important to facilitate comparisons to prior periods during which the Company was able to objectively determine the fair value of the online service and not delay the recognition of significant amounts of net revenue related to online-enabled packaged goods.
Certain Abandoned Acquisition-Related Costs. Electronic Arts incurred significant legal, banking and other consulting fees related to the Company's proposed acquisition and related cash tender offer for all of the outstanding shares of Take-Two Interactive Software, Inc. On August 18, 2008, the Company allowed the tender offer to expire without purchasing any shares of Take-Two and, on September 14, 2008, the Company announced that it had terminated discussions with, and would not be making a proposal to acquire, Take-Two. The costs incurred in connection with the abandoned proposal and tender offer were outside the ordinary course of business and will be excluded by the Company when assessing the performance of its management team. As such, the Company believes it is appropriate to exclude such expenses from its non-GAAP financial measures.
In the financial tables below, Electronic Arts has provided a reconciliation of the most comparable GAAP financial measure to each of the historical non-GAAP financial measures used in this press release.
Forward-Looking Statements
Some statements set forth in this release, including the estimates under the headings "Business Outlook" contain forward-looking statements that are subject to change. Statements including words such as "anticipate", "believe", "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause the Company's results to differ materially from its expectations include the following: timely development and release of Electronic Arts' products; competition in the interactive entertainment industry; the Company's ability to successfully implement its cost reduction plans; the general health of the U.S. and global economy and the related impact on discretionary consumer spending; the consumer demand for, and the availability of an adequate supply of console hardware units (including the Xbox 360(R) video game and entertainment system, the PLAYSTATION(R)3 computer entertainment system and the Wii(TM)); consumer demand for software for the PlayStation 2; the Company's ability to predict consumer preferences among competing hardware platforms; the financial impact of potential future acquisitions by EA; the Company's ability to realize the anticipated benefits of acquisitions; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; the Company's ability to manage expenses during fiscal year 2009 and beyond; the Company's ability to attract and retain key personnel; changes in the Company's effective tax rates; the performance of strategic investments; adoption of new accounting regulations and standards; potential regulation of the Company's products in key territories; developments in the law regarding protection of the Company's products; fluctuations in foreign exchange rates; the Company's ability to secure licenses to valuable entertainment properties on favorable terms; and other factors described in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008. These forward-looking statements speak only as of October 30, 2008. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements, including those made under the heading "Business Outlook". In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts. While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2008. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 2008.
About Electronic Arts
Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, the Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, wireless devices and the Internet. Electronic Arts markets its products under four brand names: EA SPORTS(TM), EA(TM), EA SPORTS Freestyle (TM) and POGO(TM). In fiscal 2008, EA posted GAAP net revenue of $3.67 billion and had 27 titles that sold more than one million copies. EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com.
EA, EA SPORTS, EA SPORTS Freestyle, EA Mobile, POGO, SPORE, Sporepedia, Need for Speed, MySims, Dead Space, Mercenaries and Mercenaries 2: World in Flames are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. Mirror's Edge and the DICE logo are trademarks or registered trademarks of EA Digital Illusions CE AB. John Madden, NFL, FIFA, Tiger Woods, PGA TOUR and NCAA are trademarks or registered trademarks of their respective owners and used with permission. Rock Band is a trademark of Harmonix Music Systems, Inc., a division of MTV Networks. Warhammer, Warhammer Online, Age of Reckoning, and all associated marks, names, races, race insignia, characters, vehicles, locations, units, illustrations and images from the Warhammer world are either (R), (TM) and/or (C) Games Workshop Ltd 2000-2008. LucasArts, STAR WARS and related properties are trademarks in the United States and/or in other countries of Lucasfilm Ltd. and/or its affiliates. Xbox 360 is a trademark of the Microsoft group of companies and are used under license from Microsoft. "PlayStation" and "PLAYSTATION" are registered trademarks of Sony Computer Entertainment Inc. Wii and Nintendo DS are trademarks of Nintendo. All other trademarks are the property of their respective owners.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In millions, except per share data)
Three Months Ended Six Months Ended
September 30, September 30,
------------------ ----------------
2008 2007 2008 2007
---------- ------- -------- -------
Net revenue $ 894 $ 640 $1,698 $1,035
Cost of goods sold 557 395 853 561
---------- ------- -------- -------
Gross profit 337 245 845 474
Operating expenses:
Marketing and sales 197 164 325 246
General and administrative 92 84 176 155
Research and development 372 259 729 508
Amortization of intangibles 16 7 30 14
Acquired in-process technology - - 2 -
Certain abandoned acquisition-
related costs 21 - 21 -
Restructuring charges 3 5 23 7
---------- ------- -------- -------
Total operating expenses 701 519 1,306 930
---------- ------- -------- -------
Operating loss (364) (274) (461) (456)
Losses on strategic investments (34) - (40) -
Interest and other income, net 7 32 23 58
---------- ------- -------- -------
Loss before benefit from income
taxes (391) (242) (478) (398)
Benefit from income taxes (81) (47) (73) (70)
---------- ------- -------- -------
Net loss $ (310) $ (195) $ (405) $ (328)
========== ======= ======== =======
Loss per share:
Basic and diluted $(0.97) $(0.62) $(1.27) $(1.05)
Number of shares used in
computation:
Basic and diluted 319 313 319 312
Non-GAAP Results (in millions, except per share data)
The following tables reconcile the Company's net loss and loss per share as presented in its Unaudited Condensed Consolidated Statements of Operations as prepared in accordance with Generally Accepted Accounting Principles ("GAAP") to its non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share. The Company's non-GAAP results exclude the following, if any: the impact of the change in deferred net revenue (packaged goods and digital content), acquisition-related expenses (such as amortization of intangibles, acquired in-process technology, and certain abandoned acquisition-related costs), stock-based compensation, restructuring charges, and losses on strategic investments. In addition, prior to fiscal 2009, the Company's non-GAAP financial results excluded income tax adjustments consisting of the income tax expense or benefit associated with the foregoing excluded items and the impact of certain one-time income tax adjustments. On April 1, 2008, the Company began using a fixed, long-term projected tax rate of 28% internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company began applying the same 28% tax rate to its fiscal 2009 non-GAAP financial results. Had the three and six months ended September 30, 2007, been adjusted to reflect a comparable 28% non-GAAP tax rate, adjusted income tax adjustments would have been ($78) and ($81) as compared to ($71) and ($88), adjusted non-GAAP net income would have been $80 and $25 as compared to $87 and $18, and adjusted non-GAAP diluted earnings per share would have been $0.25 and $0.08 as compared to $0.27 and $0.06, respectively.
Three Months Ended Six Months Ended
September 30, September 30,
------------------ ----------------
2008 2007 2008 2007
----------- ------ --------- ------
Net loss $ (310) $(195) $ (405) $(328)
Change in deferred net revenue
(packaged goods and digital
content) 232 296 37 332
COGS amortization of intangibles 4 7 7 14
Amortization of intangibles 16 7 30 14
Stock-based compensation 53 38 103 67
Acquired in-process technology - - 2 -
Restructuring charges 3 5 23 7
Losses on strategic investments 34 - 40 -
Certain abandoned acquisition-
related costs 21 - 21 -
Income tax adjustments (73) (71) (13) (88)
----------- ------ --------- ------
Non-GAAP net income (loss) $ (20) $ 87 $ (155) $ 18
=========== ====== ========= ======
Non-GAAP diluted earnings (loss)
per share $(0.06) $0.27 $(0.49) $0.06
Number of shares used in non-GAAP
diluted earnings (loss) per share
computation 319 320 319 319
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In millions)
September 30, March 31,
2008 2008 (a)
------------- ---------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $1,825 $2,287
Marketable equity securities 640 729
Receivables, net of allowances of $168 and
$238, respectively 547 306
Inventories 328 168
Deferred income taxes, net 246 145
Other current assets 249 290
------------- ---------
Total current assets 3,835 3,925
Property and equipment, net 417 396
Goodwill 1,182 1,152
Other intangibles, net 240 265
Deferred income taxes, net 179 164
Other assets 109 157
------------- ---------
TOTAL ASSETS $5,962 $6,059
============= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 309 $ 229
Accrued and other current liabilities 801 683
Deferred net revenue (packaged goods and
digital content) 424 387
------------- ---------
Total current liabilities 1,534 1,299
Income tax obligations 289 319
Other liabilities 111 102
------------- ---------
Total liabilities 1,934 1,720
Common stock 3 3
Paid-in capital 2,034 1,864
Retained earnings 1,483 1,888
Accumulated other comprehensive income 508 584
------------- ---------
Total stockholders' equity 4,028 4,339
------------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,962 $6,059
============= =========
(a) Derived from audited consolidated financial statements.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(In millions)
Three Months Ended Six Months Ended
September 30, September 30,
------------------ ----------------
2008 2007 2008 2007
---------- ------- ------- --------
OPERATING ACTIVITIES
Net loss $ (310) $ (195) $ (405) $ (328)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation, amortization
and accretion, net 54 37 104 73
Stock-based compensation 53 38 103 67
Net losses (gains) on
investments and sale of
property and equipment 34 (1) 40 (1)
Non-cash restructuring
charges - - 16 -
Acquired in-process
technology - - 2 -
Change in assets and
liabilities:
Receivables, net (291) (294) (253) (156)
Inventories (107) (29) (163) (39)
Other assets 25 (33) 18 (78)
Accounts payable 145 103 89 29
Accrued and other
liabilities 137 49 119 (84)
Deferred income taxes, net (96) (75) (122) (111)
Deferred net revenue
(packaged goods and
digital content) 232 296 37 332
---------- ------- ------- --------
Net cash used in
operating activities (124) (104) (415) (296)
---------- ------- ------- --------
INVESTING ACTIVITIES
Capital expenditures (32) (23) (63) (37)
Purchase of marketable equity
securities and other investments - - - (277)
Proceeds from maturities and
sales of short-term investments 375 750 510 1,391
Purchase of short-term
investments (155) (312) (313) (1,209)
Acquisition of subsidiaries, net
of cash acquired - - (42) -
---------- ------- ------- --------
Net cash provided by
(used in) investing
activities 188 415 92 (132)
---------- ------- ------- --------
FINANCING ACTIVITIES
Proceeds from issuance of common
stock 44 68 69 86
Excess tax benefit from stock-
based compensation 7 23 16 31
---------- ------- ------- --------
Net cash provided by
financing activities 51 91 85 117
---------- ------- ------- --------
Effect of foreign exchange on cash
and cash equivalents (17) 9 (18) 14
---------- ------- ------- --------
Increase (decrease) in cash and
cash equivalents 98 411 (256) (297)
Beginning cash and cash
equivalents 1,199 663 1,553 1,371
---------- ------- ------- --------
Ending cash and cash equivalents 1,297 1,074 1,297 1,074
Short-term investments 528 1,102 528 1,102
---------- ------- ------- --------
Ending cash, cash equivalents and
short-term investments $1,825 $2,176 $1,825 $ 2,176
========== ======= ======= ========
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(In millions, except per share data, SKU count and Headcount)
Q2 Q3 Q4 Q1 Q2 YOY %
FY08 FY08 FY08 FY09 FY09 Change
------- ------- ------- ------- ------- ------
CONSOLIDATED FINANCIAL
DATA
Net revenue 640 1,503 1,127 804 894 40%
Net revenue -
trailing twelve
months ("TTM") 2,929 3,151 3,665 4,074 4,328 48%
Gross profit 245 721 665 508 337 38%
Gross profit % (as
a % of net
revenue) 38% 48% 59% 63% 38%
Gross profit - TTM 1,663 1,573 1,860 2,139 2,231 34%
Gross profit % (as
a % of TTM net
revenue) 57% 50% 51% 53% 52%
Operating income
(loss) (274) 7 (37) (97) (364) (33%)
Operating income
(loss) % (as a %
of net revenue) (43%) - (3%) (12%) (41%)
Operating loss - TTM (313) (521) (487) (401) (491) (57%)
Operating loss %
(as a % of TTM net
revenue) (11%) (17%) (13%) (10%) (11%)
Net loss (195) (33) (94) (95) (310) (59%)
Loss per share $(0.62) $(0.10) $(0.30) $(0.30) $(0.97) (56%)
Net loss - TTM (192) (385) (454) (417) (532) (177%)
Loss per share -
TTM $(0.62) $(1.22) $(1.45) $(1.32) $(1.67) (169%)
CASH FLOW DATA
Operating cash flow (104) 349 285 (291) (124) (19%)
Operating cash flow -
TTM 145 267 338 239 219 51%
Capital expenditures 23 25 22 31 32 39%
Capital expenditures
- TTM 129 122 84 101 110 (15%)
BALANCE SHEET DATA
Cash, cash
equivalents and
short-term
investments 2,176 2,583 2,287 1,947 1,825 (16%)
Marketable equity
securities 716 837 729 732 640 (11%)
Receivables, net 424 830 306 269 547 29%
Inventories 103 178 168 223 328 218%
Deferred net revenue
(packaged goods and
digital content)
End of the quarter 364 595 387 192 424
Less: Beginning of
the quarter 68 364 595 387 192
------- ------- ------- ------- -------
Change in deferred
net revenue
(packaged goods
and digital
content) 296 231 (208) (195) 232
======= ======= ======= ======= =======
STOCK-BASED
COMPENSATION
Cost of goods sold 1 1 - 1 -
Marketing and sales 5 5 5 5 5
General and
administrative 10 11 9 10 13
Research and
development 22 21 31 34 35
------- ------- ------- ------- -------
Total Stock-Based
Compensation 38 38 45 50 53
======= ======= ======= ======= =======
Marketing and sales 1% 1% - 1% 1%
General and
administrative 2% 1% 1% 1% 1%
Research and
development 3% 1% 3% 4% 4%
------- ------- ------- ------- -------
Total Stock-Based
Compensation (as a
% of Net Revenue) 6% 3% 4% 6% 6%
======= ======= ======= ======= =======
OTHER
Employees 8,239 8,165 9,037 9,391 9,671 17%
Diluted weighted-
average shares 313 315 317 318 319
GEOGRAPHIC NET REVENUE
MIX
North America 362 768 649 429 555 53%
Europe 246 668 421 329 301 22%
Asia 32 67 57 46 38 19%
------- ------- ------- ------- -------
Net Revenue 640 1,503 1,127 804 894 40%
======= ======= ======= ======= =======
Geographic Net
Revenue Mix (as a %
of Net Revenue)
North America 57% 51% 58% 53% 62%
Europe 38% 44% 37% 41% 34%
Asia 5% 5% 5% 6% 4%
------- ------- ------- ------- -------
Net Revenue 100% 100% 100% 100% 100%
======= ======= ======= ======= =======
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in millions, except per share data, SKU count and Headcount)
Q2 Q3 Q4 Q1 Q2 YOY %
FY08 FY08 FY08 FY09 FY09 Change
---- ----- ----- ---- ---- ------
PLATFORM NET REVENUE MIX
Xbox 360 218 196 128 81 224 3%
PLAYSTATION 3 17 102 152 139 98 476%
PlayStation 2 73 301 166 79 54 (26%)
Wii 59 139 75 57 33 (44%)
Xbox 12 3 1 - 1 (92%)
Nintendo GameCube 3 1 - - - (100%)
---- ----- ----- ---- ----
Total Consoles 382 742 522 356 410 7%
PC 79 148 114 86 88 11%
Wireless 38 39 42 44 47 24%
Nintendo DS 47 122 36 21 43 (9%)
PSP 21 74 69 57 36 71%
Game Boy Advance 4 2 - - - (100%)
---- ----- ----- ---- ----
Total Mobility 110 237 147 122 126 15%
Co-publishing and Distribution 33 320 295 191 214 548%
Subscription Services 23 25 25 28 29 26%
Licensing, Advertising & Other 13 31 24 21 27 108%
---- ----- ----- ---- ----
Total Internet Services,
Licensing & Other 36 56 49 49 56 56%
---- ----- ----- ---- ----
Total Net Revenue 640 1,503 1,127 804 894 40%
==== ===== ===== ==== ====
Platform Net Revenue Mix (as a %
of Net Revenue)
Xbox 360 34% 13% 11% 10% 25%
PLAYSTATION 3 3% 7% 14% 17% 11%
PlayStation 2 11% 20% 15% 10% 6%
Wii 9% 9% 7% 7% 4%
Xbox 2% - - - -
Nintendo GameCube 1% - - - -
---- ----- ----- ---- ----
Total Consoles 60% 49% 47% 44% 46%
PC 12% 10% 10% 11% 10%
Wireless 6% 3% 4% 5% 5%
Nintendo DS 7% 8% 3% 3% 5%
PSP 3% 5% 6% 7% 4%
Game Boy Advance 1% - - - -
---- ----- ----- ---- ----
Total Mobility 17% 16% 13% 15% 14%
Co-publishing and Distribution 5% 21% 26% 24% 24%
Subscription Services 4% 2% 2% 3% 3%
Licensing, Advertising & Other 2% 2% 2% 3% 3%
---- ----- ----- ---- ----
Total Internet Services,
Licensing & Other 6% 4% 4% 6% 6%
---- ----- ----- ---- ----
Total Net Revenue 100% 100% 100% 100% 100%
==== ===== ===== ==== ====
PLATFORM SKU RELEASE MIX (a)
Xbox 360 8 5 4 4 8 -
PLAYSTATION 3 7 5 4 3 8 14%
PlayStation 2 7 7 - 2 4 (43%)
Wii 5 7 - 1 4 (20%)
Xbox 2 - - - 1 (50%)
Nintendo GameCube 1 - - - - (100%)
---- ----- ----- ---- ----
Total Consoles 30 24 8 10 25 (17%)
PC 7 4 5 8 5 (29%)
Nintendo DS 4 5 1 - 6 50%
PSP 3 4 1 1 3 -
Game Boy Advance 1 - - - - (100%)
---- ----- ----- ---- ----
Total Mobility 8 9 2 1 9 13%
---- ----- ----- ---- ----
Total SKUs 45 37 15 19 39 (13%)
==== ===== ===== ==== ====
(a) Mac(R), Wireless, iPod(R), and iPhone(TM) releases are not
included in SKU count.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Results
(In millions, except per share data)
The following tables reconcile the Company's net revenue, gross
profit, operating income (loss), net loss and loss per share as
presented in its Unaudited Condensed Consolidated Statements of
Operations as prepared in accordance with Generally Accepted
Accounting Principles ("GAAP") with its non-GAAP net revenue, non-
GAAP gross profit, non-GAAP operating income (loss), non-GAAP net
income (loss), and non-GAAP diluted earnings (loss) per share. The
Company's non-GAAP net revenue excludes the impact of the change in
deferred net revenue (packaged goods and digital content). The
Company's non-GAAP gross profit excludes the impact of the change in
deferred net revenue (packaged goods and digital content), COGS
amortization of intangibles, and stock-based compensation. The
Company's non-GAAP operating income (loss), non-GAAP net income
(loss), and non-GAAP diluted earnings (loss) per share exclude the
impact of the change in deferred net revenue (packaged goods and
digital content), amortization of intangibles, stock-based
compensation, acquired in-process technology, certain abandoned
acquisition-related costs, and restructuring charges. In addition,
the Company's non-GAAP net income (loss) and non-GAAP diluted
earnings (loss) per share exclude losses on strategic investments
and, prior to fiscal 2009, income tax adjustments consisting of the
income tax expense or benefit associated with the foregoing excluded
items and the impact of certain one-time income tax adjustments. On
April 1, 2008, the Company began using a fixed, long-term projected
tax rate of 28% internally to evaluate its operating performance, to
forecast, plan and analyze future periods, and to assess the
performance of its management team. Accordingly, the Company began
applying the same 28% tax rate to its fiscal 2009 non-GAAP financial
results. Had Q2, Q3, and Q4 in FY08 been adjusted to reflect a
comparable 28% non-GAAP tax rate, adjusted income tax adjustments
would have been ($78), ($52), and ($37) as compared to ($71), ($49),
and $6, adjusted non-GAAP net income (Ioss) would have been $80,
$287, and ($13) as compared to $87, $290, and $30, and adjusted non-
GAAP diluted earnings (loss) per share would have been $0.25, $0.89,
and ($0.04) as compared to $0.27, $0.90, and $0.09, respectively.
Q2 Q3 Q4 Q1 Q2 YOY %
FY08 FY08 FY08 FY09 FY09 Change
------- ------- ------- ------- ------- ------
QUARTERLY
RECONCILIATION OF
RESULTS
GAAP net revenue $ 640 $ 1,503 $ 1,127 $ 804 $ 894 40%
Change in deferred
net revenue
(packaged goods
and digital
content) 296 231 (208) (195) 232
------- ------- ------- ------- -------
Non-GAAP net revenue $ 936 $ 1,734 $ 919 $ 609 $ 1,126 20%
======= ======= ======= ======= =======
GAAP gross profit $ 245 $ 721 $ 665 $ 508 $ 337 38%
Change in deferred
net revenue
(packaged goods
and digital
content) 296 231 (208) (195) 232
COGS amortization
of intangibles 7 6 6 3 4
Stock-based
compensation 1 1 - 1 -
------- ------- ------- ------- -------
Non-GAAP gross profit $ 549 $ 959 $ 463 $ 317 $ 573 4%
======= ======= ======= ======= =======
Non-GAAP gross
profit % (as a %
of non-GAAP net
revenue) 59% 55% 50% 52% 51%
GAAP operating income
(loss) $ (274) $ 7 $ (37) $ (97) $ (364) (33%)
Change in deferred
net revenue
(packaged goods
and digital
content) 296 231 (208) (195) 232
COGS amortization
of intangibles 7 6 6 3 4
Amortization of
intangibles 7 7 13 15 16
Stock-based
compensation 38 38 45 50 53
Acquired in-process
technology - - 138 2 -
Certain abandoned
acquisition-
related costs - - - - 21
Restructuring
charges 5 78 18 20 3
------- ------- ------- ------- -------
Non-GAAP operating
income (loss) $ 79 $ 367 $ (25) $ (202) $ (35) (144%)
======= ======= ======= ======= =======
Non-GAAP operating
income (loss)
profit % (as a %
of non-GAAP net
revenue) 8% 21% (3%) (33%) (3%)
GAAP net loss $ (195) $ (33) $ (94) $ (95) $ (310) (59%)
Change in deferred
net revenue
(packaged goods
and digital
content) 296 231 (208) (195) 232
COGS amortization
of intangibles 7 6 6 3 4
Amortization of
intangibles 7 7 13 15 16
Stock-based
compensation 38 38 45 50 53
Acquired in-process
technology - - 138 2 -
Certain abandoned
acquisition-
related costs - - - - 21
Restructuring
charges 5 78 18 20 3
Losses on strategic
investments - 12 106 6 34
Income tax
adjustments (71) (49) 6 59 (73)
------- ------- ------- ------- -------
Non-GAAP net income
(loss) $ 87 $ 290 $ 30 $ (135) $ (20) (123%)
======= ======= ======= ======= =======
Non-GAAP net income
(loss) % (as a %
of non-GAAP net
revenue) 9% 17% 3% (22%) (2%)
GAAP loss per share $(0.62) $(0.10) $(0.30) $(0.30) $(0.97) (56%)
Non-GAAP diluted
earnings (loss) per
share $ 0.27 $ 0.90 $ 0.09 $(0.42) $(0.06) (122%)
Number of shares
used in non-GAAP
diluted earnings
(loss) per share
computation 320 323 323 318 319
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Results
(in millions, except per share data)
The following tables reconcile the Company's net revenue, gross
profit, operating loss, net loss and loss per share as presented in
its Unaudited Condensed Consolidated Statements of Operations as
prepared in accordance with Generally Accepted Accounting Principles
("GAAP") with its non-GAAP net revenue, non-GAAP gross profit, non-
GAAP operating income, non-GAAP net income, and non-GAAP diluted
earnings per share. The Company's non-GAAP net revenue excludes the
impact of the change in deferred net revenue (packaged goods and
digital content). The Company's non-GAAP gross profit excludes the
impact of the change in deferred net revenue (packaged goods and
digital content), COGS amortization of intangibles, and stock-based
compensation. The Company's non-GAAP operating income, non-GAAP net
income, and non-GAAP diluted earnings per share exclude the impact of
the change in deferred net revenue (packaged goods and digital
content), amortization of intangibles, stock-based compensation,
acquired in-process technology, certain abandoned acquisition-related
costs, and restructuring charges. In addition, the Company's non-
GAAP net income and non-GAAP diluted earnings per share exclude
losses on strategic investments and, prior to fiscal 2009, income tax
adjustments consisting of the income tax expense or benefit
associated with the foregoing excluded items and the impact of
certain one-time income tax adjustments. On April 1, 2008, the
Company began using a fixed, long-term projected tax rate of 28%
internally to evaluate its operating performance, to forecast, plan
and analyze future periods, and to assess the performance of its
management team. Accordingly, the Company began applying the same
28% tax rate to its fiscal 2009 non-GAAP financial results. Had Q2,
Q3, and Q4 in FY08 and Q1 and Q2 in FY09 been adjusted to reflect a
comparable 28% non-GAAP tax rate, adjusted TTM income tax adjustments
would have been ($96), ($150), ($170), ($108), and ($103) as compared
to ($100), ($138), ($131), ($55), and ($57), adjusted TTM non-GAAP
net income would have been $242, $315, $300, $219, $119 as compared
to $238, $327, $339, $272, and $165, and adjusted TTM non-GAAP
diluted earnings per share would have been $0.75, $0.97, $0.94,
$0.68, and $0.37 as compared to $0.74, $1.01, $1.06, $0.84, $0.51,
respectively.
Q2 Q3 Q4 Q1 Q2 YOY %
FY08 FY08 FY08 FY09 FY09 Change
------- ------- ------- ------- ------- ------
TRAILING TWELVE MONTH
RECONCILIATION OF
RESULTS
GAAP net revenue $ 2,929 $ 3,151 $ 3,665 $ 4,074 $ 4,328 48%
Change in deferred
net revenue
(packaged goods
and digital
content) (a) 332 563 355 124 60
------- ------- ------- ------- -------
Non-GAAP net revenue
(a) $ 3,261 $ 3,714 $ 4,020 $ 4,198 $ 4,388 35%
======= ======= ======= ======= =======
GAAP gross profit $ 1,663 $ 1,573 $ 1,860 $ 2,139 $ 2,231 34%
Change in deferred
net revenue
(packaged goods
and digital
content) (a) 332 563 355 124 60
COGS amortization
of intangibles 28 27 26 22 19
Stock-based
compensation 2 3 2 3 2
------- ------- ------- ------- -------
Non-GAAP gross profit $ 2,025 $ 2,166 $ 2,243 $ 2,288 $ 2,312 14%
======= ======= ======= ======= =======
Non-GAAP gross
profit % (as a %
of non-GAAP net
revenue) 62% 58% 56% 55% 53%
GAAP operating loss $ (313) $ (521) $ (487) $ (401) $ (491) (57%)
Change in deferred
net revenue
(packaged goods
and digital
content) (a) 332 563 355 124 60
COGS amortization
of intangibles 28 27 26 22 19
Amortization of
intangibles 28 28 34 42 51
Stock-based
compensation 129 132 150 171 186
Acquired in-process
technology 1 - 138 140 140
Certain abandoned
acquisition-
related costs - - - - 21
Restructuring
charges 12 88 103 121 119
------- ------- ------- ------- -------
Non-GAAP operating
income $ 217 $ 317 $ 319 $ 219 $ 105 (52%)
======= ======= ======= ======= =======
Non-GAAP operating
income % (as a %
of non-GAAP net
revenue) 7% 9% 8% 5% 2%
GAAP net loss $ (192) $ (385) $ (454) $ (417) $ (532) (177%)
Change in deferred
net revenue
(packaged goods
and digital
content) (a) 332 563 355 124 60
COGS amortization
of intangibles 28 27 26 22 19
Amortization of
intangibles 28 28 34 42 51
Stock-based
compensation 129 132 150 171 186
Acquired in-process
technology 1 - 138 140 140
Certain abandoned
acquisition-
related costs - - - - 21
Restructuring
charges 12 88 103 121 119
Losses on strategic
investments - 12 118 124 158
Income tax
adjustments (100) (138) (131) (55) (57)
------- ------- ------- ------- -------
Non-GAAP net income $ 238 $ 327 $ 339 $ 272 $ 165 (31%)
======= ======= ======= ======= =======
Non-GAAP net income
% (as a % of non-
GAAP net revenue) 7% 9% 8% 6% 4%
GAAP loss per share $(0.62) $(1.22) $(1.45) $(1.32) $(1.67) (169%)
Non-GAAP diluted
earnings per share $ 0.74 $ 1.01 $ 1.06 $ 0.84 $ 0.51 (31%)
(a) Prior to fiscal 2008, the change in deferred net revenue
(packaged goods and digital content) did not have a material impact
on the Company's net revenue. Accordingly, the Company has not
revised its fiscal 2007 non-GAAP financial measures to exclude the
impact of the change in deferred net revenue (packaged goods and
digital content).
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Non-GAAP Financial Information and Business
Metrics
(in millions, except per share data)
Q2 Q3 Q4 Q1 Q2 YOY %
FY08 FY08 FY08 FY09 FY09 Change
------ ------ ------ ------- ------- ------
CONSOLIDATED NON-GAAP
FINANCIAL DATA (a)
Non-GAAP net revenue 936 1,734 919 609 1,126 20%
Non-GAAP net revenue -
TTM 3,261 3,714 4,020 4,198 4,388 35%
Non-GAAP gross profit 549 959 463 317 573 4%
Non-GAAP gross profit
% (as a % of non-GAAP
net revenue) 59% 55% 50% 52% 51%
Non-GAAP gross profit -
TTM 2,025 2,166 2,243 2,288 2,312 14%
Non-GAAP gross profit
% (as a % of TTM non-
GAAP net revenue) 62% 58% 56% 55% 53%
Non-GAAP operating
income (loss) 79 367 (25) (202) (35) (144%)
Non-GAAP operating
income (loss) % (as a
% of non-GAAP net
revenue) 8% 21% (3%) (33%) (3%)
Non-GAAP operating
income - TTM 217 317 319 219 105 (52%)
Non-GAAP operating
income % (as a % of
TTM non-GAAP net
revenue) 7% 9% 8% 5% 2%
Non-GAAP net income
(loss) (b) 87 290 30 (135) (20) (123%)
Non-GAAP diluted
earnings (loss) per
share (b) $ 0.27 $ 0.90 $ 0.09 $(0.42) $(0.06) (122%)
Non-GAAP net income -
TTM (b) 238 327 339 272 165 (31%)
Non-GAAP diluted
earnings per share -
TTM (b) $ 0.74 $ 1.01 $ 1.06 $ 0.84 $ 0.51 (31%)
GEOGRAPHIC NET REVENUE MIX
(GAAP TO NON-GAAP
RECONCILIATION)
North America 362 768 649 429 555 53%
Europe 246 668 421 329 301 22%
Asia 32 67 57 46 38 19%
------ ------ ------ ------- -------
GAAP Net Revenue 640 1,503 1,127 804 894 40%
North America 163 93 (105) (89) 191
Europe 129 124 (103) (95) 37
Asia 4 14 - (11) 4
------ ------ ------ ------- -------
Change In Deferred
Net Revenue
(Packaged Goods and
Digital Content) 296 231 (208) (195) 232
North America 525 861 544 340 746 42%
Europe 375 792 318 234 338 (10%)
Asia 36 81 57 35 42 17%
------ ------ ------ ------- -------
Non-GAAP Net Revenue 936 1,734 919 609 1,126 20%
====== ====== ====== ======= =======
Non-GAAP Geographic Net
Revenue Mix (as a % of
Non-GAAP Net Revenue)
North America 56% 50% 59% 56% 66%
Europe 40% 45% 35% 38% 30%
Asia 4% 5% 6% 6% 4%
------ ------ ------ ------- -------
Non-GAAP Net Revenue 100% 100% 100% 100% 100%
====== ====== ====== ======= =======
(a) Refer to Unaudited Reconciliation of GAAP to Non-GAAP Results.
(b) On April 1, 2008, the Company began using a fixed, long-term
projected tax rate of 28% internally to evaluate its operating
performance, to forecast, plan and analyze future periods, and to
assess the performance of its management team. Accordingly, the
Company began applying the same 28% tax rate to its fiscal 2009 non-
GAAP financial results. Had Q2, Q3, and Q4 in FY08 been adjusted to
reflect a comparable 28% non-GAAP tax rate, adjusted non-GAAP net
income (Ioss) would have been $80, $287, and ($13) as compared to
$87, $290, and $30, and adjusted non-GAAP diluted earnings (loss) per
share would have been $0.25, $0.89, and ($0.04) as compared to $0.27,
$0.90, and $0.09. Had Q2, Q3, and Q4 in FY08 and Q1 and Q2 in FY09
been adjusted to reflect a comparable 28% non-GAAP tax rate, adjusted
TTM non-GAAP net income would have been $242, $315, $300, $219, and
$119 as compared to $238, $327, $339, $272, and $165, and adjusted
TTM non-GAAP diluted earnings per share would have been $0.75, $0.97,
$0.94, $0.68, and $0.37 as compared to $0.74, $1.01, $1.06, $0.84,
and $0.51, respectively.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Non-GAAP Financial Information and Non-GAAP
Business Metrics
(in millions)
Q2 Q3 Q4 Q1 Q2 YOY %
FY08 FY08 FY08 FY09 FY09 Change
----- ----- ----- ---- ----- ------
PLATFORM NON-GAAP NET REVENUE MIX
Non-GAAP Net Revenue
Xbox 360 218 196 128 81 224 3%
PLAYSTATION 3 98 196 138 68 166 69%
PlayStation 2 204 324 52 40 77 (62%)
Wii 83 156 61 39 60 (28%)
Xbox 12 3 1 - 1 (92%)
Nintendo GameCube 3 1 - - - (100%)
----- ----- ----- ---- -----
Total Consoles 618 876 380 228 528 (15%)
PC 116 153 92 70 190 64%
Wireless 38 39 42 43 47 24%
Nintendo DS 47 122 36 21 43 (9%)
PSP 43 111 47 26 33 (23%)
Game Boy Advance 4 2 - - - (100%)
----- ----- ----- ---- -----
Total Mobility 132 274 125 90 123 (7%)
Co-publishing and Distribution 32 372 271 171 221 591%
Licensing, Advertising & Other 15 36 28 23 36 140%
Subscription Services 23 23 23 27 28 22%
----- ----- ----- ---- -----
Total Internet Services,
Licensing & Other 38 59 51 50 64 68%
----- ----- ----- ---- -----
Non-GAAP Net Revenue 936 1,734 919 609 1,126 20%
Change in Deferred Net Revenue
(Packaged Goods and Digital
Content)
PLAYSTATION 3 (81) (94) 14 71 (68)
PlayStation 2 (131) (23) 114 39 (23)
Wii (24) (17) 14 18 (27)
PC (37) (5) 22 16 (102)
Wireless - - - 1 -
PSP (22) (37) 22 31 3
Co-publishing and Distribution 1 (52) 24 20 (7)
Licensing, Advertising & Other (2) (5) (4) (2) (9)
Subscription Services - 2 2 1 1
----- ----- ----- ---- -----
Change in Deferred Net
Revenue (Packaged Goods and
Digital Content) (296) (231) 208 195 (232)
----- ----- ----- ---- -----
GAAP Net Revenue 640 1,503 1,127 804 894
===== ===== ===== ==== =====
PLATFORM NON-GAAP NET REVENUE MIX
(as a % of Non-GAAP Net Revenue)
Non-GAAP Net Revenue
Xbox 360 23% 11% 14% 13% 20%
PLAYSTATION 3 11% 11% 15% 11% 15%
PlayStation 2 22% 19% 5% 7% 7%
Wii 9% 9% 7% 6% 5%
Xbox 1% - - - -
----- ----- ----- ---- -----
Total Consoles 66% 50% 41% 37% 47%
PC 12% 9% 10% 12% 17%
Wireless 4% 2% 4% 7% 4%
Nintendo DS 5% 7% 4% 4% 4%
PSP 5% 7% 5% 4% 3%
----- ----- ----- ---- -----
Total Mobility 14% 16% 13% 15% 11%
Co-publishing and Distribution 4% 22% 30% 28% 20%
Licensing, Advertising & Other 2% 2% 3% 4% 3%
Subscription Services 2% 1% 3% 4% 2%
----- ----- ----- ---- -----
Total Internet Services,
Licensing & Other 4% 3% 6% 8% 5%
----- ----- ----- ---- -----
Non-GAAP Net Revenue 100% 100% 100% 100% 100%
===== ===== ===== ==== =====
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Fact Sheet
Quarterly Product Releases
Platform (i)
--------------------------------
Console
--------------------------------
Xbox
360(R) PLAYSTATION(R)3 Wii(TM)
Q2 Fiscal 2009
---------------------------------- ------- --------------- --------
-- Brain Quest(R)
---------------------------------- ------- --------------- --------
-- FaceBreaker(TM) x x
---------------------------------- ------- --------------- --------
-- FIFA STREET 3 (iii)
---------------------------------- ------- --------------- --------
-- Gum-Un-Bang (iv)
---------------------------------- ------- --------------- --------
-- Heroes Lore(TM) 3 (iv)
---------------------------------- ------- --------------- --------
-- Madden NFL 09 x x x
---------------------------------- ------- --------------- --------
-- Madden NFL 09 en Espanol x x
---------------------------------- ------- --------------- --------
-- Mercenaries 2: World in Flames(TM) x x
---------------------------------- ------- --------------- --------
-- MONOPOLY Worldwide Edition
---------------------------------- ------- --------------- --------
-- NASCAR(R) 09
---------------------------------- ------- --------------- --------
-- NCAA(R) Football 09 x x x
---------------------------------- ------- --------------- --------
-- NFL Head Coach 09 x x
---------------------------------- ------- --------------- --------
-- NHL(R) 09 x x
---------------------------------- ------- --------------- --------
-- Operation(TM) Mania
---------------------------------- ------- --------------- --------
-- SCRABBLE(TM)
---------------------------------- ------- --------------- --------
-- SimCity(TM) Creator x
---------------------------------- ------- --------------- --------
-- SONIC CHRONICLES: THE DARK
BROTHERHOOD
---------------------------------- ------- --------------- --------
-- Spore(TM)
---------------------------------- ------- --------------- --------
-- Sudoku
---------------------------------- ------- --------------- --------
-- Tetris(R)
---------------------------------- ------- --------------- --------
-- Tetris(R) POP
---------------------------------- ------- --------------- --------
-- The Game of LIFE
---------------------------------- ------- --------------- --------
-- The Sims(TM) 2 Apartment Life
---------------------------------- ------- --------------- --------
-- The Sims(TM) 2 Apartment Pets
---------------------------------- ------- --------------- --------
-- Tiger Woods PGA TOUR(R) 09 x x x
---------------------------------- ------- --------------- --------
-- Warhammer(R) Online: Age of
Reckoning(TM)
---------------------------------- ------- --------------- -------
Co-publishing, Distribution, and
International Only (ii)
---------------------------------- ------- --------------- --------
-- Crash Car Mania
---------------------------------- ------- --------------- --------
-- Crysis Warhead(R)
---------------------------------- ------- --------------- --------
-- Rally Stars
---------------------------------- ------- --------------- --------
-- Rock Band(TM) (iii) x x
---------------------------------- ------- --------------- --------
-- Rock Band(TM) 2 x
---------------------------------- ------- --------------- --------
-- Rock Band(TM) EP x
---------------------------------- ------- --------------- --------
-- Warhammer(R) Online: Age of
Reckoning(TM)
---------------------------------- ------- --------------- -------
Platform (i)
------------------------------
Console PC
-------------------------- ---
PlayStation(R)2 Xbox(TM) PC
Q2 Fiscal 2009
------------------------------------- --------------- -------- ---
-- Brain Quest(R)
------------------------------------- --------------- -------- ---
-- FaceBreaker(TM)
------------------------------------- --------------- -------- ---
-- FIFA STREET 3 (iii)
------------------------------------- --------------- -------- ---
-- Gum-Un-Bang (iv)
------------------------------------- --------------- -------- ---
-- Heroes Lore(TM) 3 (iv)
------------------------------------- --------------- -------- ---
-- Madden NFL 09 x x
------------------------------------- --------------- -------- ---
-- Madden NFL 09 en Espanol
------------------------------------- --------------- -------- ---
-- Mercenaries 2: World in Flames(TM) x x
------------------------------------- --------------- -------- ---
-- MONOPOLY Worldwide Edition
------------------------------------- --------------- -------- ---
-- NASCAR(R) 09
------------------------------------- --------------- -------- ---
-- NCAA(R) Football 09 x
------------------------------------- --------------- -------- ---
-- NFL Head Coach 09
------------------------------------- --------------- -------- ---
-- NHL(R) 09
------------------------------------- --------------- -------- ---
-- Operation(TM) Mania x
------------------------------------- --------------- -------- ---
-- SCRABBLE(TM)
------------------------------------- --------------- -------- ---
-- SimCity(TM) Creator
------------------------------------- --------------- -------- ---
-- SONIC CHRONICLES: THE DARK
BROTHERHOOD
------------------------------------- --------------- -------- ---
-- Spore(TM) x
------------------------------------- --------------- -------- ---
-- Sudoku
------------------------------------- --------------- -------- ---
-- Tetris(R)
------------------------------------- --------------- -------- ---
-- Tetris(R) POP
------------------------------------- --------------- -------- ---
-- The Game of LIFE
------------------------------------- --------------- -------- ---
-- The Sims(TM) 2 Apartment Life x
------------------------------------- --------------- -------- ---
-- The Sims(TM) 2 Apartment Pets
------------------------------------- --------------- -------- ---
-- Tiger Woods PGA TOUR(R) 09 x
------------------------------------- --------------- -------- ---
-- Warhammer(R) Online: Age of x
Reckoning(TM)
------------------------------------- --------------- -------- --
Co-publishing, Distribution, and
International Only (ii)
------------------------------------- --------------- -------- ---
-- Crash Car Mania
------------------------------------- --------------- -------- ---
-- Crysis Warhead(R) x
------------------------------------- --------------- -------- ---
-- Rally Stars
------------------------------------- --------------- -------- ---
-- Rock Band(TM) (iii) x
------------------------------------- --------------- -------- ---
-- Rock Band(TM) 2
------------------------------------- --------------- -------- ---
-- Rock Band(TM) EP x
------------------------------------- --------------- -------- ---
-- Warhammer(R) Online: Age of x
Reckoning(TM)
------------------------------------- --------------- -------- --
Platform (i)
---------------------------------------------
Mobility
-------------------------------------------
Nintendo
Wireless iPod(R) iPhone(TM) PSP(R) DS(TM)
Q2 Fiscal 2009
---------------------- -------- ------- ---------- ------ --------
-- Brain Quest(R) x
---------------------- -------- ------- ---------- ------ --------
-- FaceBreaker(TM)
---------------------- -------- ------- ---------- ------ --------
-- FIFA STREET 3 (iii) x
---------------------- -------- ------- ---------- ------ --------
-- Gum-Un-Bang (iv) x
---------------------- -------- ------- ---------- ------ --------
-- Heroes Lore(TM) 3 (iv) x
---------------------- -------- ------- ---------- ------ --------
-- Madden NFL 09 x x x
---------------------- -------- ------- ---------- ------ --------
-- Madden NFL 09 en
Espanol
---------------------- -------- ------- ---------- ------ --------
-- Mercenaries 2: World
in Flames(TM)
---------------------- -------- ------- ---------- ------ --------
-- MONOPOLY Worldwide x
Edition
---------------------- -------- ------- ---------- ------ --------
-- NASCAR(R) 09 x
---------------------- -------- ------- ---------- ------ --------
-- NCAA(R) Football 09 x x
---------------------- -------- ------- ---------- ------ --------
-- NFL Head Coach 09
---------------------- -------- ------- ---------- ------ --------
-- NHL(R) 09
---------------------- -------- ------- ---------- ------ --------
-- Operation(TM) Mania
---------------------- -------- ------- ---------- ------ --------
-- SCRABBLE(TM) x
---------------------- -------- ------- ---------- ------ --------
-- SimCity(TM) Creator x
---------------------- -------- ------- ---------- ------ --------
-- SONIC CHRONICLES: THE x
DARK BROTHERHOOD
---------------------- -------- ------- ---------- ------ --------
-- Spore(TM) x x x x
---------------------- -------- ------- ---------- ------ --------
-- Sudoku x
---------------------- -------- ------- ---------- ------ --------
-- Tetris(R) x
---------------------- -------- ------- ---------- ------ --------
-- Tetris(R) POP x
---------------------- -------- ------- ---------- ------ --------
-- The Game of LIFE x
---------------------- -------- ------- ---------- ------ --------
-- The Sims(TM) 2
Apartment Life
---------------------- -------- ------- ---------- ------ --------
-- The Sims(TM) 2 x
Apartment Pets
---------------------- -------- ------- ---------- ------ --------
-- Tiger Woods PGA x x
TOUR(R) 09
---------------------- -------- ------- ---------- ------ --------
-- Warhammer(R) Online:
Age of Reckoning(TM)
---------------------- -------- ------- ---------- ------ --------
Co-publishing,
Distribution, and
International Only
(ii)
---------------------- -------- ------- ---------- ------ --------
-- Crash Car Mania x
---------------------- -------- ------- ---------- ------ --------
-- Crysis Warhead(R)
---------------------- -------- ------- ---------- ------ --------
-- Rally Stars x
---------------------- -------- ------- ---------- ------ --------
-- Rock Band(TM) (iii)
---------------------- -------- ------- ---------- ------ --------
-- Rock Band(TM) 2
---------------------- -------- ------- ---------- ------ --------
-- Rock Band(TM) EP
---------------------- -------- ------- ---------- ------ --------
-- Warhammer(R) Online:
Age of Reckoning(TM)
---------------------- -------- ------- ---------- ------ --------
(i) Mac, Wireless, iPod, and iPhone releases are not included in SKU
count.
(ii) Co-publishing, distribution, and international only releases are
not included in SKU count.
(iii) Released in Europe.
(iv) Released in Korea.
All trademarks are the property of their respective owners.
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