EA Sports Financial Result Detail

Fourth Quater Result of EA Sports in comparison to previous year quater which ended 31st March 2009:

EA Sports GAAP net revenue is $979 million for the fourh quater which is a increase of $199 million, previous year it was $860 million. EA also saw a total net benefit of $129 million from digital content and other online-enabled packed good games and others. The GAAP net income for this fourth quater was $30 million, in comparision to previous year nt loss of $42 million.

Non GAAP net revenue of EA Sports saw increase of $241 mllion from the previous year and touches the figure of $850 million($609 previous year). This increase in Non GAAP net revenue is because of title like Battlefield: Bad Company 2, Mass Effect 2, Dante's Inferno. Non GAAP net income was $23 million in comparision to the net loss of $120 million in the previous year.

Full Fiscal Year Result:

** GAAP:

A) GAAP Net Revenue    Prior Year

      $3.654 billion           $4.212 billion

B)  Revenue from Packed Good and Digital Content

$766 million (up $505 million from prior year)

C) GAAP Net Loss    Prior Year

$677 million      $1.088 billion

** Non GAAP:

A)  Non GAAP Net Revenue    Prior Year

      $4.195 billion                 $4.086 billion

B)  Non GAAP Net Income    Prior Year(Net Loss)

       $145 million                 $96 million.

EA Sports ended the year with a total cash and short term investment of $1.7 billion.

Fiscal 2010 Highlights

  • EA leads the industry in quality with 20 titles earning a Metacritic rating of 80 or above.
  • EA is ranked #1 publisher with 19 percent segment share, up 1.7 points from the prior year, with four of the top 20 games in North America and four of the top 20 games in Europe.
  • EA is ranked #1 publisher on the PlayStation3, Xbox 360, PC, and PlayStation2. EA is the #1 third party publisher on the Wii and PSP platforms.
  • EA was named to the 2010 Fortune 500 company list in April 2010.
  • Five EA titles sold more than four million units in the fiscal year: FIFA 10, Madden NFL 10, The Sims 3, Battlefield: Bad Company 2, and Need for Speed Shift.
  • EA strengthenedits portfolio by launching new intellectual property – EA SPORTS Active, Dragon Age, and Dante’s Inferno.
  • EA’s non-GAAP digital revenue, which includes online and wireless, was $570 million, up 33 percent year-over-year.
  • EA Mobile, the world’s leading publisher of games for wireless, delivered non-GAAP revenue of $212 million for fiscal 2010 – up 12 percent year-over-year.
  • Battlefield 1943 sold over 1.5 million units to date and is the best-selling download-only game on PlayStation Network and Xbox LIVE Arcade.
  • EA has sold over eight million units worldwide of Hasbro branded family and kids video games to date.
  • The Sims franchise has sold over 125 million units worldwide to date.
  • FIFA 10 has sold over 10 million units since launch.

First Quarter Fiscal Year 2011 Expectations – Ending June 30, 2010

  • GAAP net revenue is expected to be approximately $710 to $750 million.
  • Non-GAAP net revenue is expected to be approximately $460 to $500 million.
  • GAAP diluted earnings/(loss) per share is expected to be approximately a ($0.05) loss to a $0.05 profit.
  • Non-GAAP diluted loss per share is expected to be approximately ($0.35) to ($0.40).
  • For purposes of calculating first quarter fiscal year 2011 earnings/(loss) per share, the Company estimates a share count of 328 million for loss per share computations and 330 million for earnings per share computations.
  • Expected non-GAAP net income excludes the following items from expected GAAP net income:
  1. Non-GAAP net revenue is expected to be approximately $250 million lower than GAAP net revenue due to the impact of the change in deferred net revenue (packaged goods and digital content);
  2. Approximately $50 million of estimated stock-based compensation;
  3. Approximately $15-20 million of amortization of intangible assets;
  4. Approximately $5 million of restructuring charges; and
  5. $50 to $60 million in the difference between the Company’s GAAP and non-GAAP tax expenses.

Fiscal Year 2011 Expectations – Ending March 31, 2011

  • GAAP net revenue is expected to be approximately $3.35 to $3.60 billion, down from prior expectations of $3.45 to $3.70 billion due primarily to revisions to our release schedule. Non-GAAP net revenue is expected to be approximately $3.65 to $3.90 billion.
  • GAAP operating expense is expected to be approximately $2.3 billion and non-GAAP operating expense is expected to be approximately $2 billion.
  • Other income and expense is expected to be approximately $5 million.
  • GAAP diluted loss per share is expected to be approximately ($0.85) to ($1.15), down from prior expectations of ($0.60) to ($0.90), again due primarily to changes to our release schedule.
  • Non-GAAP diluted earnings per share are expected to be approximately $0.50 to $0.70.
  • For purposes of calculating fiscal year 2011 earnings/(loss) per share, the Company estimates a share count of 329 million for loss per share computations and 331 million for earnings per share computations.
  • Expected non-GAAP net income excludes the following items from expected GAAP net loss:
  1. Non-GAAP net revenue is expected to be approximately $300 million higher than GAAP revenue due to the impact of the change in deferred net revenue (packaged goods and digital content);
  2. Approximately $200 million of estimated stock-based compensation;
  3. Approximately $70 million of amortization of intangible assets;
  4. $10 to $15 million of restructuring charges; and
  5. ($44) to ($72) million in the difference between the Company’s GAAP and non-GAAP tax expenses.
  • The fiscal year 2011 launch schedule is expected to be more consistent with years prior to fiscal year 2010, with non-GAAP revenue to be allocated as follows during the fiscal year:
  1. Q1: approximately 13%
  2. Q2: approximately 21%
  3. Q3: approximately 42%
  4. Q4: approximately 24%

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