[January 28, 2014] |
|
Electronic Arts Reports Q3 FY14 Financial Results
REDWOOD CITY, Calif. --(Business Wire)--
Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial
results for its third fiscal quarter ended December 31, 2013.
"EA's third quarter marked an exciting start to a new generation of
games, and we are proud to have been the #1 publisher on next-generation
consoles in December, with millions of gamers across the globe playing
EA titles on the PlayStation 4 and Xbox One," said Chief Executive
Officer Andrew Wilson. "In addition to consoles, our mobile games,
digital downloads and live services are growing year-over-year as we
continue to deliver exciting new experiences to gamers around the world."
"In a transitional quarter, EA delivered EPS results above our guidance
driven by strong sales of our next-generation console titles, continued
growth in our digital games and services, and financial discipline
across the business," said Chief Financial Officer Blake Jorgensen. "For
our full year outlook, we are lowering our non-GAAP net revenue guidance
to $3.91 billion due to the weakness in current generation software, but
we are increasing our non-GAAP EPS guidance to $1.30 due to the
improvement in our operating profits."
This release, along with ongoing updates regarding EA's business, is
available on EA's blog at http://ea.com/news.
Selected Operating Highlights and Metrics:
*On a non-GAAP basis
-
EA was the #1 publisher on the PlayStation 4 computer entertainment
systems and Xbox One, the all-in-one games and entertainment system
from Microsoft, in the Western World in December, led by Battlefield
4™, Madden NFL 25, FIFA 14 and Need for Speed™
Rivals.
-
For the month of December, FIFA 14 and Battlefield 4
were two of the top three best-selling titles across all platforms in
the Western World, and FIFA 14 was the #1 title in Europe.
-
EA titles represented 35% of the Western World PlayStation 4 and Xbox
One software sales in the third quarter.
-
Third quarter digital net revenue increased by 27% year-over-year to
$517 million*, and trailing twelve month digital net revenue was a
record $1.86 billion*.
-
On a year-to-date basis, FIFA Ultimate Team, Madden NFL
Ultimate Team, and NHL® Hockey Ultimate Team collectively
grew 60% year-over-year and drove digital net revenue* growth.
-
EA's mobile and handheld digital net revenue generated $125 million*
in Q3 fiscal 14, a 26% year-over-year increase over Q3 fiscal 13.
-
The Simpsons™ Tapped Out generated over $130 million* in
digital net revenue through Q3 fiscal 14.
-
Trailing twelve months operating cash flow was $664 million, the
highest trailing twelve month operating cash flow for EA since 2005.
Q3 Financial Highlights:
For the quarter, non-GAAP net revenue of $1.57 billion was below our
guidance of $1.65 billion. Non-GAAP diluted earnings per share of $1.26
was above our guidance of $1.22.
(in millions of $, except per share amounts)
|
|
Quarter Ended 12/31/13
|
|
Quarter Ended 12/31/12
|
|
|
|
|
|
GAAP Digital Net Revenue
|
|
$410
|
|
$321
|
GAAP Publishing Packaged Goods and Other Net Revenue
|
|
370
|
|
568
|
GAAP Distribution Packaged Goods Net Revenue
|
|
28
|
|
33
|
GAAP Total Net Revenue
|
|
$808
|
|
$922
|
|
|
|
|
|
Non-GAAP Digital Net Revenue
|
|
$517
|
|
$407
|
Non-GAAP Publishing Packaged Goods and Other Net Revenue
|
|
1,027
|
|
742
|
Non-GAAP Distribution Packaged Goods Net Revenue
|
|
28
|
|
33
|
Non-GAAP Total Net Revenue
|
|
$1,572
|
|
$1,182
|
|
|
|
|
|
GAAP Net Loss
|
|
$(308)
|
|
$(45)
|
Non-GAAP Net Income
|
|
398
|
|
176
|
GAAP Loss Per Share
|
|
(1.00)
|
|
(0.15)
|
Non-GAAP Diluted Earnings Per Share
|
|
1.26
|
|
0.57
|
|
|
|
|
|
Cash Provided by Operations
|
|
$685
|
|
$363
|
|
|
|
|
|
Trailing Twelve Month (TTM) Financial Highlights:
|
|
|
|
|
|
|
|
|
|
(in millions of $)
|
|
TTM Ended 12/31/13
|
|
TTM Ended 12/31/12
|
|
|
|
|
|
GAAP Net Revenue
|
|
$3,661
|
|
$3,956
|
GAAP Net Income (Loss)
|
|
(36)
|
|
175
|
Non-GAAP Net Revenue
|
|
4,147
|
|
3,730
|
Non-GAAP Net Income
|
|
551
|
|
151
|
|
|
|
|
|
Cash Provided by Operations
|
|
$664
|
|
$378
|
Business Outlook as of January 28, 2014
The following forward-looking statements, as well as those made above,
reflect expectations as of January 28, 2014. Electronic Arts assumes no
obligation to update these statements. Results may be materially
different and are affected by many factors detailed in this release and
in EA's annual and quarterly SEC filings.
Fiscal Year 2014 Expectations - Ending March 31, 2014
-
GAAP net revenue is expected to be approximately $3.52 billion.
-
Non-GAAP net revenue is expected to be approximately $3.91 billion.
-
GAAP diluted loss per share is expected to be approximately $(0.42).
-
Non-GAAP diluted earnings per share is expected to be approximately
$1.30.
-
The Company estimates a share count of 316 million for purposes of
calculating fiscal year 2014 diluted earnings per share, and 308
million for diluted loss per share.
-
Expected non-GAAP net income excludes the following from expected GAAP
net loss:
-
Non-GAAP net revenue is expected to be approximately $385 million
higher than GAAP net revenue due to the impact of the change in
deferred net revenue (online-enabled games);
-
Approximately $151 million of stock-based compensation;
-
Approximately $39 million of acquisition-related expenses;
-
Approximately ($2) million of restructuring charges;
-
Approximately $21 million from the amortization of debt discount;
-
Approximately $40 million of college football settlement expenses;
and
-
Non-GAAP tax expense is expected to be approximately $93 million
higher than GAAP tax expense.
Fourth Quarter Fiscal Year 2014 Expectations - Ending March 31, 2014
-
GAAP net revenue is expected to be approximately $1.07 billion.
-
Non-GAAP net revenue is expected to be approximately $800 million.
-
GAAP diluted earnings per share is expected to be approximately $0.72.
-
Non-GAAP diluted earnings per share is expected to be approximately
$0.09.
-
The Company estimates a share count of 318 million for purposes of
calculating fourth quarter fiscal year 2014 diluted earnings per share.
-
Expected non-GAAP net income excludes the following from expected GAAP
net loss:
-
Non-GAAP net revenue is expected to be approximately $270 million
lower than GAAP net revenue due to the impact of the change in
deferred net revenue (online-enabled games);
-
Approximately $40 million of stock-based compensation;
-
Approximately $19 million of acquisition-related expenses;
-
Approximately $5 million from the amortization of debt discount;
and
-
Non-GAAP tax expense is expected to be $5 million lower than GAAP
tax expense.
Conference Call and Supporting Documents
Electronic Arts will host a conference call on January 28, 2014 at 2:00
pm PT (5:00 pm ET) to review its results for the fiscal quarter ended
December 31, 2013 and its outlook for the future. During the course of
the call, Electronic Arts may disclose material developments affecting
its business and/or financial performance. Listeners may access the
conference call live through the following dial-in number: 773-799-3213
(domestic) or 888-677-1083 (international), using the password "EA" or
via webcast at http://ir.ea.com.
EA will also post a slide presentation that accompanies the call at http://ir.ea.com.
A dial-in replay of the conference call will be provided until February
11, 2014 at the following number: 203-369-0099 (domestic) or
866-356-3373 (international). A webcast replay of the conference call
will be available for one year at http://ir.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:
-
Acquisition-related expenses
-
Amortization of debt discount
-
Certain non-recurring litigation expenses
-
Change in deferred net revenue (online-enabled games)
-
College football settlement expenses
-
Loss (gain) on strategic investments
-
Restructuring charges
-
Stock-based compensation
-
Income tax adjustments
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:
Acquisition-Related Expenses. GAAP requires expenses to be
recognized for various types of events associated with a business
acquisition. These events include, expensing acquired intangible assets,
including acquired in-process technology, post-closing adjustments
associated with changes in the estimated amount of contingent
consideration to be paid in an acquisition, and the impairment of
accounting goodwill created as a result of an acquisition when future
events indicate there has been a decline in its value. 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 including the final amounts paid for contingent
consideration) without taking into consideration any allocations made
for accounting purposes. Because the final purchase price paid for an
acquisition necessarily reflects the accounting value assigned to both
contingent consideration and to the intangible assets (including
goodwill), when analyzing the operating performance of an acquisition in
subsequent periods, the Company's management excludes the GAAP impact of
any adjustments to the fair value of these acquisition-related balances
to its financial results.
Amortization of Debt Discount on the Convertible Senior Notes.
Under GAAP, certain convertible debt instruments that may be settled in
cash on conversion are required to be separately accounted for as
liability (debt) and equity (conversion option) components of the
instrument in a manner that reflects the issuer's non-convertible debt
borrowing rate. Accordingly, for GAAP purposes, we are required to
amortize as a debt discount an amount equal to the fair value of the
conversion option as interest expense on the Company's $632.5 million of
0.75% convertible senior notes that were issued in a private placement
in July 2011 over the term of the notes. Electronic Arts' management
will exclude the effect of this amortization when evaluating the
Company's operating performance and the performance of its management
team during this period and will continue to do so, when it plans,
forecasts and analyzes future periods.
Certain Non-recurring Litigation Expenses. During the fourth
quarter of fiscal 2012, Electronic Arts recognized a $27 million expense
related to a settlement of a litigation matter. This significant
non-recurring litigation expense is excluded from our non-GAAP financial
measures in order to provide comparability between periods. Further, the
Company excluded this expense when evaluating its operating performance
and the performance of its management team during this period and will
continue to do so when it plans, forecasts and analyzes future periods.
Change in Deferred Net Revenue (Online-enabled Games). The
majority of our software games can be connected to the Internet whereby
a consumer may be able to download unspecified content or updates on a
when-and-if-available basis ("unspecified updates") for use with the
original game software. In addition, we may also offer an online
matchmaking service that permits consumers to play against each other
via the Internet. GAAP requires us to account for the consumer's right
to receive unspecified updates or the matchmaking service for no
additional fee as a "bundled" sale, or multiple-element arrangement.
Electronic Arts is not able to objectively determine the fair value of
these unspecified updates or online service included in certain of its
online-enabled games. As a result, the Company recognizes the revenue
from the sale of these online-enabled games on a straight-line basis
over the estimated offering period. Internally, Electronic Arts'
management excludes the impact of the change in deferred net revenue
related to online-enabled games 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 (1) facilitate comparisons between periods in
understanding our underlying sales performance for the period, and (2)
understanding our operations because all related costs of revenue are
expensed as incurred instead of deferred and recognized ratably.
College Football Settlement Expenses. During the second quarter
of fiscal 2014, Electronic Arts recognized a $40 million charge for
expected litigation settlement and license expenses related to our
college football business. This expense is excluded from our non-GAAP
financial measures in order to provide comparability between periods.
Further, the Company excluded this expense when evaluating its operating
performance and the performance of its management team during this
period and will continue to do so when it plans, forecasts and analyzes
future periods.
Loss (gain) on Strategic Investments. From time to time, the
Company makes strategic investments. Electronic Arts' management
excludes the impact of any losses and gains on such investments when
evaluating the Company's operating performance, when planning,
forecasting and analyzing future periods, and when assessing the
performance of its management team. In addition, the Company believes
that excluding the impact of such losses and gains on these investments
from its operating results is important to facilitate comparisons to
prior periods.
Restructuring Charges. Although Electronic Arts has engaged in
various restructuring activities in the past, each has been a discrete
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. As such, the
Company believes it is appropriate to exclude restructuring charges from
its non-GAAP financial measures.
Stock-Based Compensation. 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.
Income Tax Adjustments. The Company uses a fixed, long-term
projected tax rate internally to evaluate its operating performance, to
forecast, plan and analyze future periods, and to assess the performance
of its management team. Prior to April 1, 2013, a 28 percent tax rate
was applied to its non-GAAP financial results. Based on a re-evaluation
of its fixed, long-term projected tax rate, beginning in fiscal year
2014, the Company has applied a tax rate of 25 percent to its non-GAAP
financial results.
In the financial tables below, Electronic Arts has provided a
reconciliation of the most comparable GAAP financial measures to
non-GAAP financial measures used in this press release.
Forward-Looking Statements
Some statements set forth in this release, including the information
relating to EA's fiscal 2014 guidance information under the heading
"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
preliminary estimates and expectations based on current information and
are subject to business and economic 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: sales of the
Company's titles; the Company's ability to manage expenses; the
competition in the interactive entertainment industry; the effectiveness
of the Company's sales and marketing programs; timely development and
release of Electronic Arts' products; the Company's ability to realize
the anticipated benefits of acquisitions; the consumer demand for, and
the availability of an adequate supply of console hardware units; the
Company's ability to predict consumer preferences among competing
platforms; the Company's ability to service and support digital product
offerings, including managing online security; general economic
conditions; and other factors described in the Company's Quarterly
Report on Form 10-Q for the fiscal quarter ended September 30, 2013.
These forward-looking statements are current as of January 28, 2014.
Electronic Arts assumes no obligation and does not intend to update
these forward-looking statements. 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 December 31, 2013. 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 December 31, 2013.
About Electronic Arts
Electronic Arts (NASDAQ:EA) is a global leader in digital interactive
entertainment. The Company's game franchises are offered as both
packaged goods products and online services delivered through
Internet-connected consoles, personal computers, mobile phones and
tablets. EA has more than 300 million registered players in over 200
countries. In fiscal year 2013, EA posted GAAP net revenue of $3.8
billion. Headquartered in Redwood City, California, EA is recognized for
critically acclaimed, high-quality blockbuster franchises such as The
Sims™, Madden NFL, FIFA Soccer, Need for Speed™, Battlefield™, and Mass
Effect™. More information about EA is available at http://info.ea.com.
Battlefield 4, Battlefield, The Sims, Need for Speed, and Mass Effect
are trademarks of Electronic Arts Inc. and its subsidiaries. The
Simpsons TM & © 2012 Twentieth Century Fox Film Corporation. All Rights
Reserved. John Madden, NFL, NHL and FIFA are the property of their
respective owners and used with permission. "PlayStation" is a
registered trademark of Sony Computer Entertainment Inc.
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Condensed Consolidated Statements of Operations
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Net revenue
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
485
|
|
|
$
|
703
|
|
|
$
|
1,378
|
|
|
$
|
1,886
|
|
Service and other
|
|
323
|
|
|
219
|
|
|
1,074
|
|
|
702
|
|
Total net revenue
|
|
808
|
|
|
922
|
|
|
2,452
|
|
|
2,588
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
Product
|
|
438
|
|
|
363
|
|
|
909
|
|
|
866
|
|
Service and other
|
|
79
|
|
|
66
|
|
|
215
|
|
|
213
|
|
Total cost of revenue
|
|
517
|
|
|
429
|
|
|
1,124
|
|
|
1,079
|
|
Gross profit
|
|
291
|
|
|
493
|
|
|
1,328
|
|
|
1,509
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Marketing and sales
|
|
214
|
|
|
220
|
|
|
525
|
|
|
590
|
|
General and administrative
|
|
91
|
|
|
70
|
|
|
305
|
|
|
258
|
|
Research and development
|
|
275
|
|
|
278
|
|
|
836
|
|
|
866
|
|
Acquisition-related contingent consideration
|
|
-
|
|
|
(45
|
)
|
|
(37
|
)
|
|
(65
|
)
|
Amortization of intangibles
|
|
4
|
|
|
7
|
|
|
12
|
|
|
21
|
|
Restructuring and other
|
|
(1
|
)
|
|
2
|
|
|
(2
|
)
|
|
27
|
|
Total operating expenses
|
|
583
|
|
|
532
|
|
|
1,639
|
|
|
1,697
|
|
Operating loss
|
|
(292
|
)
|
|
(39
|
)
|
|
(311
|
)
|
|
(188
|
)
|
Gain on strategic investments
|
|
-
|
|
|
14
|
|
|
-
|
|
|
14
|
|
Interest and other income (expense), net
|
|
(6
|
)
|
|
(8
|
)
|
|
(19
|
)
|
|
(17
|
)
|
Loss before provision for income taxes
|
|
(298
|
)
|
|
(33
|
)
|
|
(330
|
)
|
|
(191
|
)
|
Provision for income taxes
|
|
10
|
|
|
12
|
|
|
29
|
|
|
34
|
|
Net loss
|
|
$
|
(308
|
)
|
|
$
|
(45
|
)
|
|
$
|
(359
|
)
|
|
$
|
(225
|
)
|
Loss per share
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(1.00
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(1.17
|
)
|
|
$
|
(0.72
|
)
|
|
|
|
|
|
|
|
|
|
Number of shares used in computation
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
309
|
|
|
304
|
|
|
307
|
|
|
313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and prepared in accordance with Generally Accepted Accounting
Principles ("GAAP") to its non-GAAP net income and non-GAAP earnings per
share.
|
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Net loss
|
|
$
|
(308
|
)
|
|
$
|
(45
|
)
|
|
$
|
(359
|
)
|
|
$
|
(225
|
)
|
Acquisition-related expenses
|
|
20
|
|
|
(15
|
)
|
|
20
|
|
|
8
|
|
Amortization of debt discount
|
|
6
|
|
|
5
|
|
|
16
|
|
|
15
|
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
260
|
|
|
655
|
|
|
165
|
|
College football settlement expenses
|
|
-
|
|
|
-
|
|
|
40
|
|
|
-
|
|
Gain on strategic investments
|
|
-
|
|
|
(14
|
)
|
|
-
|
|
|
(14
|
)
|
Restructuring and other
|
|
(1
|
)
|
|
2
|
|
|
(2
|
)
|
|
27
|
|
Stock-based compensation
|
|
40
|
|
|
39
|
|
|
111
|
|
|
122
|
|
Income tax adjustments
|
|
(123
|
)
|
|
(56
|
)
|
|
(99
|
)
|
|
(3
|
)
|
Non-GAAP net income
|
|
$
|
398
|
|
|
$
|
176
|
|
|
$
|
382
|
|
|
$
|
95
|
|
Non-GAAP earnings per share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.29
|
|
|
$
|
0.58
|
|
|
$
|
1.24
|
|
|
$
|
0.30
|
|
Diluted
|
|
$
|
1.26
|
|
|
$
|
0.57
|
|
|
$
|
1.21
|
|
|
$
|
0.30
|
|
Number of shares used in Non-GAAP computation
|
|
|
|
|
|
|
|
|
Basic
|
|
309
|
|
|
304
|
|
|
307
|
|
|
313
|
|
Diluted
|
|
317
|
|
|
308
|
|
|
315
|
|
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Condensed Consolidated Balance Sheets
|
(in millions)
|
|
|
|
|
|
|
|
December 31, 2013
|
|
March 31, 2013 (a)
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,746
|
|
|
$
|
1,292
|
Short-term investments
|
|
324
|
|
|
388
|
Receivables, net of allowances of $268 and $200, respectively
|
|
526
|
|
|
312
|
Inventories
|
|
55
|
|
|
42
|
Deferred income taxes, net
|
|
51
|
|
|
52
|
Other current assets
|
|
219
|
|
|
239
|
Total current assets
|
|
2,921
|
|
|
2,325
|
Property and equipment, net
|
|
518
|
|
|
548
|
Goodwill
|
|
1,725
|
|
|
1,721
|
Acquisition-related intangibles, net
|
|
196
|
|
|
253
|
Deferred income taxes, net
|
|
46
|
|
|
53
|
Other assets
|
|
167
|
|
|
170
|
TOTAL ASSETS
|
|
$
|
5,573
|
|
|
$
|
5,070
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
137
|
|
|
$
|
136
|
Accrued and other current liabilities
|
|
823
|
|
|
737
|
Deferred net revenue (online-enabled games)
|
|
1,699
|
|
|
1,044
|
Total current liabilities
|
|
2,659
|
|
|
1,917
|
0.75% convertible senior notes due 2016, net
|
|
575
|
|
|
559
|
Income tax obligations
|
|
210
|
|
|
205
|
Deferred income taxes, net
|
|
1
|
|
|
1
|
Other liabilities
|
|
124
|
|
|
121
|
Total liabilities
|
|
3,569
|
|
|
2,803
|
Common stock
|
|
3
|
|
|
3
|
Paid-in capital
|
|
2,287
|
|
|
2,174
|
Retained earnings (accumulated deficit)
|
|
(338
|
)
|
|
21
|
Accumulated other comprehensive income
|
|
52
|
|
|
69
|
Total stockholders' equity
|
|
2,004
|
|
|
2,267
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
5,573
|
|
|
$
|
5,070
|
(a) Derived from audited consolidated financial statements.
|
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Condensed Consolidated Statements of Cash Flows
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(308
|
)
|
|
$
|
(45
|
)
|
|
$
|
(359
|
)
|
|
$
|
(225
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Acquisition-related contingent consideration
|
|
-
|
|
|
(45
|
)
|
|
(37
|
)
|
|
(65
|
)
|
Depreciation, amortization and accretion, net
|
|
58
|
|
|
66
|
|
|
170
|
|
|
178
|
|
Net (gains) losses on investments and disposal of property and
equipment
|
|
1
|
|
|
(12
|
)
|
|
1
|
|
|
(12
|
)
|
Non-cash restructuring charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
|
Stock-based compensation
|
|
40
|
|
|
39
|
|
|
111
|
|
|
122
|
|
Change in assets and liabilities:
|
|
|
|
|
|
|
|
|
Receivables, net
|
|
68
|
|
|
256
|
|
|
(210
|
)
|
|
(18
|
)
|
Inventories
|
|
3
|
|
|
13
|
|
|
(12
|
)
|
|
-
|
|
Other assets
|
|
9
|
|
|
14
|
|
|
17
|
|
|
14
|
|
Accounts payable
|
|
(64
|
)
|
|
(124
|
)
|
|
13
|
|
|
(115
|
)
|
Accrued and other liabilities
|
|
112
|
|
|
(56
|
)
|
|
75
|
|
|
53
|
|
Deferred income taxes, net
|
|
2
|
|
|
(3
|
)
|
|
7
|
|
|
(13
|
)
|
Deferred net revenue (online-enabled games)
|
|
764
|
|
|
260
|
|
|
655
|
|
|
165
|
|
Net cash provided by operating activities
|
|
685
|
|
|
363
|
|
|
431
|
|
|
91
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(28
|
)
|
|
(25
|
)
|
|
(81
|
)
|
|
(81
|
)
|
Proceeds from sale of marketable equity securities
|
|
-
|
|
|
25
|
|
|
-
|
|
|
25
|
|
Proceeds from maturities and sales of short-term investments
|
|
81
|
|
|
124
|
|
|
331
|
|
|
404
|
|
Purchase of short-term investments
|
|
(79
|
)
|
|
(47
|
)
|
|
(270
|
)
|
|
(244
|
)
|
Acquisition-related restricted cash
|
|
-
|
|
|
-
|
|
|
-
|
|
|
25
|
|
Acquisition of subsidiaries, net of cash acquired
|
|
-
|
|
|
-
|
|
|
(5
|
)
|
|
(10
|
)
|
Net cash provided by (used in) investing activities
|
|
(26
|
)
|
|
77
|
|
|
(25
|
)
|
|
119
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Payment of debt issuance costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2
|
)
|
Proceeds from issuance of common stock
|
|
1
|
|
|
1
|
|
|
51
|
|
|
19
|
|
Repurchase and retirement of common stock
|
|
-
|
|
|
(157
|
)
|
|
-
|
|
|
(336
|
)
|
Acquisition-related contingent consideration payment
|
|
-
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(28
|
)
|
Net cash provided by (used in) financing activities
|
|
1
|
|
|
(158
|
)
|
|
50
|
|
|
(347
|
)
|
Effect of foreign exchange on cash and cash equivalents
|
|
(4
|
)
|
|
5
|
|
|
(2
|
)
|
|
2
|
|
Increase (decrease) in cash and cash equivalents
|
|
656
|
|
|
287
|
|
|
454
|
|
|
(135
|
)
|
Beginning cash and cash equivalents
|
|
1,090
|
|
|
871
|
|
|
1,292
|
|
|
1,293
|
|
Ending cash and cash equivalents
|
|
$
|
1,746
|
|
|
$
|
1,158
|
|
|
$
|
1,746
|
|
|
$
|
1,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
|
|
FY13
|
|
FY13
|
|
FY14
|
|
FY14
|
|
FY14
|
|
Change
|
QUARTERLY RECONCILIATION OF RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
$
|
922
|
|
|
$
|
1,209
|
|
|
$
|
949
|
|
|
$
|
695
|
|
|
$
|
808
|
|
|
(12
|
%)
|
Change in deferred net revenue (online-enabled games)
|
|
260
|
|
|
(169
|
)
|
|
(454
|
)
|
|
345
|
|
|
764
|
|
|
|
Non-GAAP net revenue
|
|
$
|
1,182
|
|
|
$
|
1,040
|
|
|
$
|
495
|
|
|
$
|
1,040
|
|
|
$
|
1,572
|
|
|
33
|
%
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
493
|
|
|
$
|
900
|
|
|
$
|
755
|
|
|
$
|
282
|
|
|
$
|
291
|
|
|
(41
|
%)
|
Acquisition-related expenses
|
|
23
|
|
|
41
|
|
|
15
|
|
|
14
|
|
|
16
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
260
|
|
|
(169
|
)
|
|
(454
|
)
|
|
345
|
|
|
764
|
|
|
|
Stock-based compensation
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
|
Non-GAAP gross profit
|
|
$
|
776
|
|
|
$
|
773
|
|
|
$
|
316
|
|
|
$
|
642
|
|
|
$
|
1,071
|
|
|
38
|
%
|
GAAP gross profit % (as a % of GAAP net revenue)
|
|
53
|
%
|
|
74
|
%
|
|
80
|
%
|
|
41
|
%
|
|
36
|
%
|
|
|
Non-GAAP gross profit % (as a % of non-GAAP net revenue)
|
|
66
|
%
|
|
74
|
%
|
|
64
|
%
|
|
62
|
%
|
|
68
|
%
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
$
|
(39
|
)
|
|
$
|
309
|
|
|
$
|
233
|
|
|
$
|
(252
|
)
|
|
$
|
(292
|
)
|
|
(649
|
%)
|
Acquisition-related expenses
|
|
(15
|
)
|
|
51
|
|
|
26
|
|
|
(26
|
)
|
|
20
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
260
|
|
|
(169
|
)
|
|
(454
|
)
|
|
345
|
|
|
764
|
|
|
|
College football settlement expenses
|
|
-
|
|
|
-
|
|
|
-
|
|
|
40
|
|
|
-
|
|
|
|
Restructuring and other
|
|
2
|
|
|
-
|
|
|
1
|
|
|
(2
|
)
|
|
(1
|
)
|
|
|
Stock-based compensation
|
|
39
|
|
|
42
|
|
|
33
|
|
|
38
|
|
|
40
|
|
|
|
Non-GAAP operating income (loss)
|
|
$
|
247
|
|
|
$
|
233
|
|
|
$
|
(161
|
)
|
|
$
|
143
|
|
|
$
|
531
|
|
|
115
|
%
|
GAAP operating income (loss) % (as a % of GAAP net revenue)
|
|
(4
|
%)
|
|
26
|
%
|
|
25
|
%
|
|
(36
|
%)
|
|
(36
|
%)
|
|
|
Non-GAAP operating income (loss) % (as a % of non-GAAP net
revenue)
|
|
21
|
%
|
|
22
|
%
|
|
(33
|
%)
|
|
14
|
%
|
|
34
|
%
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
(45
|
)
|
|
$
|
323
|
|
|
$
|
222
|
|
|
$
|
(273
|
)
|
|
$
|
(308
|
)
|
|
(584
|
%)
|
Acquisition-related expenses
|
|
(15
|
)
|
|
51
|
|
|
26
|
|
|
(26
|
)
|
|
20
|
|
|
|
Amortization of debt discount
|
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
6
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
260
|
|
|
(169
|
)
|
|
(454
|
)
|
|
345
|
|
|
764
|
|
|
|
College football settlement expenses
|
|
-
|
|
|
-
|
|
|
-
|
|
|
40
|
|
|
-
|
|
|
|
Gain on strategic investments
|
|
(14
|
)
|
|
(25
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Restructuring and other
|
|
2
|
|
|
-
|
|
|
1
|
|
|
(2
|
)
|
|
(1
|
)
|
|
|
Stock-based compensation
|
|
39
|
|
|
42
|
|
|
33
|
|
|
38
|
|
|
40
|
|
|
|
Income tax adjustments
|
|
(56
|
)
|
|
(58
|
)
|
|
46
|
|
|
(22
|
)
|
|
(123
|
)
|
|
|
Non-GAAP net income (loss)
|
|
$
|
176
|
|
|
$
|
169
|
|
|
$
|
(121
|
)
|
|
$
|
105
|
|
|
$
|
398
|
|
|
126
|
%
|
GAAP net income (loss) % (as a % of GAAP net revenue)
|
|
(5
|
%)
|
|
27
|
%
|
|
23
|
%
|
|
(39
|
%)
|
|
(38
|
%)
|
|
|
Non-GAAP net income (loss) % (as a % of non-GAAP net revenue)
|
|
15
|
%
|
|
16
|
%
|
|
(24
|
%)
|
|
10
|
%
|
|
25
|
%
|
|
|
Diluted earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings (loss) per share
|
|
$
|
(0.15
|
)
|
|
$
|
1.05
|
|
|
$
|
0.71
|
|
|
$
|
(0.89
|
)
|
|
$
|
(1.00
|
)
|
|
(567
|
%)
|
Non-GAAP earnings (loss) per share
|
|
$
|
0.57
|
|
|
$
|
0.55
|
|
|
$
|
(0.40
|
)
|
|
$
|
0.33
|
|
|
$
|
1.26
|
|
|
121
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of diluted shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
304
|
|
|
307
|
|
|
312
|
|
|
308
|
|
|
309
|
|
|
|
Non-GAAP
|
|
308
|
|
|
307
|
|
|
304
|
|
|
316
|
|
|
317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
|
|
FY13
|
|
FY13
|
|
FY14
|
|
FY14
|
|
FY14
|
|
Change
|
QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Geography net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
409
|
|
|
513
|
|
|
395
|
|
|
303
|
|
|
338
|
|
|
(17
|
%)
|
International
|
|
513
|
|
|
696
|
|
|
554
|
|
|
392
|
|
|
470
|
|
|
(8
|
%)
|
Total GAAP net revenue
|
|
922
|
|
|
1,209
|
|
|
949
|
|
|
695
|
|
|
808
|
|
|
(12
|
%)
|
North America
|
|
80
|
|
|
(76
|
)
|
|
(190
|
)
|
|
136
|
|
|
352
|
|
|
|
International
|
|
180
|
|
|
(93
|
)
|
|
(264
|
)
|
|
209
|
|
|
412
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
260
|
|
|
(169
|
)
|
|
(454
|
)
|
|
345
|
|
|
764
|
|
|
|
North America
|
|
489
|
|
|
437
|
|
|
205
|
|
|
439
|
|
|
690
|
|
|
41
|
%
|
International
|
|
693
|
|
|
603
|
|
|
290
|
|
|
601
|
|
|
882
|
|
|
27
|
%
|
Total Non-GAAP net revenue
|
|
1,182
|
|
|
1,040
|
|
|
495
|
|
|
1,040
|
|
|
1,572
|
|
|
33
|
%
|
North America
|
|
44
|
%
|
|
42
|
%
|
|
42
|
%
|
|
44
|
%
|
|
42
|
%
|
|
|
International
|
|
56
|
%
|
|
58
|
%
|
|
58
|
%
|
|
56
|
%
|
|
58
|
%
|
|
|
Total GAAP net revenue %
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
North America
|
|
41
|
%
|
|
42
|
%
|
|
41
|
%
|
|
42
|
%
|
|
44
|
%
|
|
|
International
|
|
59
|
%
|
|
58
|
%
|
|
59
|
%
|
|
58
|
%
|
|
56
|
%
|
|
|
Total Non-GAAP net revenue %
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue composition
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing and other
|
|
568
|
|
|
730
|
|
|
452
|
|
|
223
|
|
|
370
|
|
|
(35
|
%)
|
Wireless, internet-derived, and advertising (digital)
|
|
321
|
|
|
453
|
|
|
482
|
|
|
450
|
|
|
410
|
|
|
28
|
%
|
Distribution
|
|
33
|
|
|
26
|
|
|
15
|
|
|
22
|
|
|
28
|
|
|
(15
|
%)
|
Total GAAP net revenue
|
|
922
|
|
|
1,209
|
|
|
949
|
|
|
695
|
|
|
808
|
|
|
(12
|
%)
|
Publishing and other
|
|
174
|
|
|
(334
|
)
|
|
(350
|
)
|
|
447
|
|
|
657
|
|
|
|
Wireless, internet-derived, and advertising (digital)
|
|
86
|
|
|
165
|
|
|
(104
|
)
|
|
(102
|
)
|
|
107
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
260
|
|
|
(169
|
)
|
|
(454
|
)
|
|
345
|
|
|
764
|
|
|
|
Publishing and other
|
|
742
|
|
|
396
|
|
|
102
|
|
|
670
|
|
|
1,027
|
|
|
38
|
%
|
Wireless, internet-derived, and advertising (digital)
|
|
407
|
|
|
618
|
|
|
378
|
|
|
348
|
|
|
517
|
|
|
27
|
%
|
Distribution
|
|
33
|
|
|
26
|
|
|
15
|
|
|
22
|
|
|
28
|
|
|
(15
|
%)
|
Total Non-GAAP net revenue
|
|
1,182
|
|
|
1,040
|
|
|
495
|
|
|
1,040
|
|
|
1,572
|
|
|
33
|
%
|
Publishing and other
|
|
62
|
%
|
|
60
|
%
|
|
48
|
%
|
|
32
|
%
|
|
46
|
%
|
|
|
Wireless, internet-derived, and advertising (digital)
|
|
35
|
%
|
|
38
|
%
|
|
51
|
%
|
|
65
|
%
|
|
51
|
%
|
|
|
Distribution
|
|
3
|
%
|
|
2
|
%
|
|
1
|
%
|
|
3
|
%
|
|
3
|
%
|
|
|
Total GAAP net revenue %
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
Publishing and other
|
|
63
|
%
|
|
38
|
%
|
|
21
|
%
|
|
64
|
%
|
|
65
|
%
|
|
|
Wireless, internet-derived, and advertising (digital)
|
|
34
|
%
|
|
59
|
%
|
|
76
|
%
|
|
34
|
%
|
|
33
|
%
|
|
|
Distribution
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
|
Total Non-GAAP 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
|
|
FY13
|
|
FY13
|
|
FY14
|
|
FY14
|
|
FY14
|
|
Change
|
QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Xbox One, PLAYSTATION 4
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
24
|
|
|
100
|
%
|
Xbox 360, PLAYSTATION 3
|
|
566
|
|
|
783
|
|
|
494
|
|
|
298
|
|
|
425
|
|
|
(25
|
%)
|
Wii
|
|
20
|
|
|
5
|
|
|
3
|
|
|
9
|
|
|
9
|
|
|
(55
|
%)
|
PlayStation 2
|
|
3
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
(67
|
%)
|
Total consoles
|
|
589
|
|
|
790
|
|
|
498
|
|
|
309
|
|
|
459
|
|
|
(22
|
%)
|
Mobile
|
|
86
|
|
|
109
|
|
|
113
|
|
|
75
|
|
|
97
|
|
|
13
|
%
|
PlayStation handhelds
|
|
15
|
|
|
20
|
|
|
12
|
|
|
7
|
|
|
8
|
|
|
(47
|
%)
|
Nintendo handhelds
|
|
9
|
|
|
9
|
|
|
9
|
|
|
5
|
|
|
4
|
|
|
(56
|
%)
|
Total mobile and handhelds
|
|
110
|
|
|
138
|
|
|
134
|
|
|
87
|
|
|
109
|
|
|
(1
|
%)
|
PC
|
|
186
|
|
|
252
|
|
|
298
|
|
|
274
|
|
|
210
|
|
|
13
|
%
|
Other
|
|
37
|
|
|
29
|
|
|
19
|
|
|
25
|
|
|
30
|
|
|
(19
|
%)
|
Total GAAP net revenue
|
|
922
|
|
|
1,209
|
|
|
949
|
|
|
695
|
|
|
808
|
|
|
(12
|
%)
|
Xbox One, PLAYSTATION 4
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
368
|
|
|
|
Xbox 360, PLAYSTATION 3
|
|
167
|
|
|
(275
|
)
|
|
(307
|
)
|
|
389
|
|
|
282
|
|
|
|
Wii
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
|
PlayStation 2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Mobile
|
|
13
|
|
|
(4
|
)
|
|
(9
|
)
|
|
28
|
|
|
27
|
|
|
|
PlayStation handhelds
|
|
11
|
|
|
(13
|
)
|
|
(8
|
)
|
|
5
|
|
|
1
|
|
|
|
Nintendo handhelds
|
|
13
|
|
|
(3
|
)
|
|
(7
|
)
|
|
-
|
|
|
-
|
|
|
|
PC
|
|
56
|
|
|
127
|
|
|
(123
|
)
|
|
(76
|
)
|
|
86
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
260
|
|
|
(169
|
)
|
|
(454
|
)
|
|
345
|
|
|
764
|
|
|
|
Xbox One, PLAYSTATION 4
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
392
|
|
|
100
|
%
|
Xbox 360, PLAYSTATION 3
|
|
733
|
|
|
508
|
|
|
187
|
|
|
687
|
|
|
707
|
|
|
(4
|
%)
|
Wii
|
|
20
|
|
|
4
|
|
|
3
|
|
|
8
|
|
|
9
|
|
|
(55
|
%)
|
PlayStation 2
|
|
3
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
(67
|
%)
|
Total consoles
|
|
756
|
|
|
514
|
|
|
191
|
|
|
697
|
|
|
1,109
|
|
|
47
|
%
|
Mobile
|
|
99
|
|
|
105
|
|
|
104
|
|
|
103
|
|
|
124
|
|
|
25
|
%
|
PlayStation handhelds
|
|
26
|
|
|
7
|
|
|
4
|
|
|
12
|
|
|
9
|
|
|
(65
|
%)
|
Nintendo handhelds
|
|
22
|
|
|
6
|
|
|
2
|
|
|
5
|
|
|
4
|
|
|
(82
|
%)
|
Total mobile and handhelds
|
|
147
|
|
|
118
|
|
|
110
|
|
|
120
|
|
|
137
|
|
|
(7
|
%)
|
PC
|
|
242
|
|
|
379
|
|
|
175
|
|
|
198
|
|
|
296
|
|
|
22
|
%
|
Other
|
|
37
|
|
|
29
|
|
|
19
|
|
|
25
|
|
|
30
|
|
|
(19
|
%)
|
Total Non-GAAP net revenue
|
|
1,182
|
|
|
1,040
|
|
|
495
|
|
|
1,040
|
|
|
1,572
|
|
|
33
|
%
|
Xbox One, PLAYSTATION 4
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2%
|
|
|
Xbox 360, PLAYSTATION 3
|
|
62%
|
|
65%
|
|
52%
|
|
43%
|
|
53%
|
|
|
Wii
|
|
2%
|
|
-
|
|
|
-
|
|
|
1
|
%
|
|
1
|
%
|
|
|
PlayStation 2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Total consoles
|
|
64%
|
|
65%
|
|
52%
|
|
44%
|
|
56%
|
|
|
Mobile
|
|
9%
|
|
9%
|
|
12%
|
|
11%
|
|
12%
|
|
|
PlayStation handhelds
|
|
2%
|
|
2%
|
|
1%
|
|
1%
|
|
1%
|
|
|
Nintendo handhelds
|
|
1%
|
|
1%
|
|
1%
|
|
1%
|
|
1%
|
|
|
Total mobile and handhelds
|
|
12%
|
|
12%
|
|
14%
|
|
13%
|
|
14%
|
|
|
PC
|
|
20%
|
|
21%
|
|
32%
|
|
39%
|
|
26%
|
|
|
Other
|
|
4%
|
|
2%
|
|
2%
|
|
4%
|
|
4%
|
|
|
Total GAAP net revenue %
|
|
100%
|
|
100%
|
|
100%
|
|
100%
|
|
100%
|
|
|
Xbox One, PLAYSTATION 4
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
25%
|
|
|
Xbox 360, PLAYSTATION 3
|
|
62%
|
|
49%
|
|
38%
|
|
66%
|
|
45%
|
|
|
Wii
|
|
2%
|
|
-
|
|
|
1%
|
|
1
|
%
|
|
1%
|
|
|
PlayStation 2
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Total consoles
|
|
64%
|
|
49%
|
|
39%
|
|
67%
|
|
71%
|
|
|
Mobile
|
|
8%
|
|
10%
|
|
21%
|
|
10%
|
|
8%
|
|
|
PlayStation handhelds
|
|
2%
|
|
1%
|
|
1%
|
|
1%
|
|
1%
|
|
|
Nintendo handhelds
|
|
2%
|
|
1%
|
|
-
|
|
|
1%
|
|
-
|
|
|
|
Total mobile and handhelds
|
|
12%
|
|
12%
|
|
22%
|
|
12%
|
|
9%
|
|
|
PC
|
|
21%
|
|
36%
|
|
35%
|
|
19%
|
|
19%
|
|
|
Other
|
|
3%
|
|
3%
|
|
4%
|
|
2%
|
|
1%
|
|
|
Total Non-GAAP 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
|
|
FY13
|
|
FY13
|
|
FY14
|
|
FY14
|
|
FY14
|
|
Change
|
CASH FLOW DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
363
|
|
|
233
|
|
|
(248
|
)
|
|
(6
|
)
|
|
685
|
|
|
89
|
%
|
Operating cash flow - TTM
|
|
378
|
|
|
324
|
|
|
320
|
|
|
342
|
|
|
664
|
|
|
76
|
%
|
Capital expenditures
|
|
25
|
|
|
25
|
|
|
29
|
|
|
24
|
|
|
28
|
|
|
12
|
%
|
Capital expenditures - TTM
|
|
125
|
|
|
106
|
|
|
104
|
|
|
103
|
|
|
106
|
|
|
(15
|
%)
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
1,158
|
|
|
1,292
|
|
|
1,056
|
|
|
1,090
|
|
|
1,746
|
|
|
51
|
%
|
Short-term investments
|
|
275
|
|
|
388
|
|
|
355
|
|
|
328
|
|
|
324
|
|
|
18
|
%
|
Marketable equity securities
|
|
59
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(100
|
%)
|
Receivables, net
|
|
382
|
|
|
312
|
|
|
120
|
|
|
594
|
|
|
526
|
|
|
38
|
%
|
Inventories
|
|
59
|
|
|
42
|
|
|
41
|
|
|
58
|
|
|
55
|
|
|
(7
|
%)
|
Deferred net revenue (online-enabled games)
|
|
|
|
|
|
|
|
|
|
|
|
|
End of the quarter
|
|
1,213
|
|
|
1,044
|
|
|
590
|
|
|
935
|
|
|
1,699
|
|
|
40
|
%
|
Less: Beginning of the quarter
|
|
953
|
|
|
1,213
|
|
|
1,044
|
|
|
590
|
|
|
935
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
260
|
|
|
(169
|
)
|
|
(454
|
)
|
|
345
|
|
|
764
|
|
|
|
STOCK-BASED COMPENSATION
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
|
Marketing and sales
|
|
7
|
|
|
7
|
|
|
7
|
|
|
6
|
|
|
7
|
|
|
|
General and administrative
|
|
7
|
|
|
12
|
|
|
6
|
|
|
8
|
|
|
8
|
|
|
|
Research and development
|
|
25
|
|
|
22
|
|
|
20
|
|
|
23
|
|
|
25
|
|
|
|
Total stock-based compensation
|
|
39
|
|
|
42
|
|
|
33
|
|
|
38
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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