EA Reports Record $1.23 Billion Quarter; Driven by Harry Potter, James Bond, FIFA Soccer.Business Editors REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif.--(BUSINESS WIRE)--Jan. 29, 2003 Electronic Arts (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ERTS ERTS Electronic Arts, Inc. (stock symbol) ERTS Earth Resources Technology Satellite (US NASA) ERTS Embedded Real Time Systems ERTS Enhanced Remote Transit Shed ) today announced record financial results for the fiscal quarter ended December December: see month. 31, 2002. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net revenues for the quarter were $1.23 billion, up 48 percent compared with $833 million for the fiscal quarter ending December 31, 2001. Net revenues were driven by: Harry Potter A potter is someone who makes pottery. Potter may also refer to: People
James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Bond 007: Nightfire(TM), FIFA FIFA International Association Football Federation [French Fédération Internationale de Football Association] FIFA n abbr (= Fédération Internationale de Football Association) → FIFA f Soccer 2003, The Lord of the Rings(TM), The Two Towers(TM), Need for Speed(TM) Hot Pursuit 2, NBA NBA abbr. 1. National Basketball Association 2. National Boxing Association NBA (US) n abbr (= National Basketball Association) → Basketball-Dachverband (= Live 2003 and Medal of Honor Medal of Honor highest American military decoration for wartime gallantry. [Am. Hist.: Misc.] See : Bravery Frontline front·line also front line n. 1. A front or boundary, especially one between military, political, or ideological positions. 2. Basketball See frontcourt. 3. Football The linemen of a team. (TM). Consolidated net income for the quarter was $250 million, an 89 percent increase over the prior year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter was $1.69, up 84 percent, or $0.77, year over year. "This was a historic holiday season for the Company," said Larry Probst Larry Probst (Lawrence F. Probst III) was previously the CEO of the world's largest video game publisher, Electronic Arts (EA). He was succeeded by John Riccitiello on April 2, 2007. , Chairman and Chief Executive Officer of Electronic Arts. "EA became the first third-party publisher to achieve a billion dollar quarter. Eleven titles sold more than one million units. Our global development and publishing organizations have never been stronger." In the U.S., EA had five of the top ten titles on the industry leading PlayStation A video game console from Sony that was introduced in the U.S. in 1995. CD-ROM based and using a 32-bit MIPS CPU, the original PlayStation was the first of a family of desktop and handheld units. (R)2 computer entertainment system and five of the top ten titles on the PC. In Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , EA had 4 titles that sold more than
one million units each and FIFA 2003 outsold out·sold v. Past tense and past participle of outsell. its nearest competitor by 2.5:1 across all platforms. "Our results again demonstrate the global strength of EA," said Warren Warren. 1 City (1990 pop. 144,864), Macomb co., SE Mich., a suburb of Detroit; est. 1837, inc. as a city 1957. It is an important metalworking center where steel is processed. Jenson Jenson is a surname, and may refer to:
Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was $580 million." Highlights for the Quarter (comparisons are to the quarter ending December 31, 2001) -- Net revenues increased in all territories: North America - up 36 percent to $696 million; Europe - up 68 percent to $471 million; Asia Pacific - up 75 percent to $38 million; Japan - up 41 percent to $29 million. -- Gross margin was 55 percent versus 52 percent. -- Operating income margin reached 30 percent versus 23 percent. -- In the U.S., EA had five of the top ten titles on the leading PlayStation(R)2 console - Madden NFL(TM)2003, The Lord of the Rings, The Two Towers, Kingdom Hearts, NBA Live 2003 and James Bond 007: Nightfire - according to NPDFunworld TRSTS. -- EA had five of the top ten selling PC games in the U.S. - The Sims(TM)Deluxe, The Sims(TM)Unleashed Expansion Pack, Harry Potter and the Chamber of Secrets, Medal of Honor Allied Assault(TM)and Battlefield 1942(TM)- according to NPD Techworld. -- NBA Live 2003 sold one million units at retail in the U.S., outselling its nearest competitor by over 2:1 - according to NPDFunworld TRSTS. -- The Sims Online(TM) was introduced on December 17, 2002. Through January 28, 2003, approximately 105,000 units have sold through and approximately 82,000 individuals are registered players. -- In Europe, EA had four titles that sold over one million units - Harry Potter and the Chamber of Secrets, FIFA Soccer 2003, James Bond 007: Nightfire and The Lord of the Rings, The Lord of the Rings, The “feigned history” of the Hobbits; epic trilogy written by J. R. R. Tolkein. [Br. Lit.: Benét, 1013] See : Fantasy Two Towers. -- For calendar 2002, EA had 22 titles that sold more than a million units each. Studio Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). In the fourth quarter, EA will begin the consolidation of our Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Irvine Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. and Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. studios into a major game development studio in Los Angeles. Once complete, we will have major centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. studio operations in Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography ; Redwood redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. Shores, Walnut Creek Walnut Creek, residential city (1990 pop. 60,569), Contra Costa co., W Calif., in the San Francisco Bay area; inc. 1914. It is the trade and shipping center of an extensive agricultural area where walnuts are among the major product. , and Los Angeles, California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ; Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. ; Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan; and Chertsey Chertsey (chûrt`sē), town (1991 pop. 10,198), Surrey, SE England. Its market gardens serve London. Varied engineering works are located in Chertsey. , United Kingdom. Business Outlook The following forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. reflect EA's expectations as of January January: see month. 29, 2003. Results may be materially different and are affected by many factors, such as changes in the overall global economy, actual consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , product development delays, subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. acceptance of our online products and other risk factors detailed in this release. Fiscal Fourth Quarter - Ending March 31, 2003 -- Consolidated net revenues are expected to be between $420 million and $460 million. -- Consolidated diluted earnings per share are expected to be between $0.27 and $0.35. This range does not factor in studio restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , which are still being determined. Fiscal Year - Ending March 31, 2003 -- Consolidated net revenues are expected to be between $2.439 and $2.479 billion. -- Consolidated diluted earnings per share are expected to be between $2.37 and $2.45. This range does not factor in studio restructuring charges, which are still being determined. Supplemental Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Disclosure Pro forma results are included in the financial schedules attached to this report as a supplement to EA's GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). (Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) results. The Company believes pro forma results are useful in illustrating and explaining operating results and comparisons to prior periods. Pro forma results exclude the following items from the Company's statement of operations See Income statement. : -- Amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. -- Restructuring and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges (including permanent impairment of investments) -- Charges for acquired in-process technology In addition, pro forma results for EA Core and EA.com reflect these segments on a stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." basis and allocate To reserve a resource such as memory or disk. See memory allocation. income taxes on a proportional proportional values expressed as a proportion of the total number of values in a series. proportional dwarf the patient is a miniature without disproportionate reductions or enlargements of body parts. basis to the respective income (loss) for each segment. A reconciliation of GAAP to pro forma is included as part of the supplemental disclosures. Webcast Electronic Arts will host a webcast at 2:00 pm PST PST Paroxysmal supraventricular tachycardia, see there (5:00 pm EST EST electroshock therapy. EST abbr. electroshock therapy ) on January 29, 2003 at www.info.ea.com to review the results for the Company's quarter ending December 31, 2002 and to discuss the Company's near term outlook. A replay will be available through February February: see month. 5, 2003. Some statements set forth in this release including those under the heading "Business Outlook" contain forward-looking statements that involve risks and uncertainties. Statements including words such as "anticipate", "believe" or "expect" and statements in the future tense future tense n. A verb tense expressing future time. Noun 1. future tense - a verb tense that expresses actions or states in the future future are forward-looking statements. These forward-looking statements are subject to business and economic risks and actual events or actual future results could differ materially from those set forth in the forward-looking statements due to such risks and uncertainties. Some of the factors which could cause our results to differ materially include the following: timely development and release of our products; consumer spending trends; retention of key personnel; risks associated with major platform transitions; the limited operating history and experience of EA.com; subscriber acceptance of our online products; potential regulation of our products in key territories; developments in the law regarding protection of our products; and other factors described in our Annual Report on Form 10K for the year ended March 31, 2002 and Form 10Q for the quarter ended September September: see month. 30, 2002. If any of these risks or uncertainties materializes, our results could differ materially from our expectations described in these forward-looking statements. We do not intend to update these forward-looking statements, including those made under the "Business Outlook" heading. Note to Editors: Electronic Arts, John Madden mad·den v. mad·dened, mad·den·ing, mad·dens v.tr. 1. To make angry; irritate. 2. To drive insane. v.intr. To become infuriated. Football, The Sims, The Sims Online, Medal of Honor Frontline, Medal of Honor Allied Assault and Need for Speed are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. other countries. Medal of Honor is a trademark or registered trademark of Electronic Arts Inc. in the U.S. and/or countries for computer and videogame software. EA.com is a service mark of EA.com Inc. Battlefield 1942 is a trademark of Digital Illusions CE For other uses of "DICE", see . Digital Illusions Creative Entertainment AB (DICE) is a Swedish video game developer, wholly owned by Electronic Arts, best known for the Battlefield video game series. History DICE was started by Fredrik Liljegren (a.k.a. AB. The Lord of The Rings and the characters, names, and places therein, TM The Saul Saul, first king of the ancient Hebrews. He was a Benjamite and anointed king by Samuel. Saul's territory was probably limited to the hill country of Judah and the region to the north, and his proximity to the Philistines brought him into constant conflict with them. Zaentz Company d/b/a Tolkien Enterprises Tolkien Enterprises (TE), a trading name for the Saul Zaentz Company, owns the worldwide exclusive rights to certain elements of J. R. R. Tolkien's two most famous literary works; The Lord of the Rings and The Hobbit. under license to New Line Productions, Inc. James Bond and 007 are trademarks of Danjaq Danjaq, LLC (formerly Danjaq S.A.) is the holding company responsible for the copyright and trademarks to the characters, elements, and other material related to James Bond on screen. It is currently owned and managed by the family of Albert R. , LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . NIGHTFIRE is a trademark of Danjaq, LLC and United Artist Corporation. Battlefield 1942 is a trademark of Digital Illusions CE AB. HARRY POTTER, names and related indicia Signs; indications. Circumstances that point to the existence of a given fact as probable, but not certain. For example, indicia of partnership are any circumstances which would induce the belief that a given person was in reality, though not technically, a member of a given are trademarks of and (c) Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . NFL NFL abbr. National Football League NFL (US) n abbr (= National Football League) → Fußball-Nationalliga , NBA, NCAA NCAA abbr. National Collegiate Athletic Association and FIFA are trademarks of their respective owners and used with permission. PlayStation is a registered trademark of Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) Computer Entertainment Inc. All other trademarks are the property of their respective owners.
ELECTRONIC ARTS
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Nine Months Ended
December 31, December 31,
2002 2001 2002 2001
Net revenues $1,233,726 $ 832,878 $2,019,114 $1,254,984
Cost of goods sold 558,680 400,853 898,936 607,642
----------- ----------- ----------- -----------
Gross profit 675,046 432,025 1,120,178 647,342
Operating expenses:
Marketing and sales 139,492 93,875 260,380 179,699
General and
administrative 42,250 31,833 95,366 80,451
Research and
development 112,558 97,406 301,667 285,766
Amortization of
intangibles 2,245 6,359 6,736 19,309
Restructuring and
asset impairment
charges 9,378 14,051 9,378 14,051
----------- ----------- ----------- -----------
Total operating
expenses 305,923 243,524 673,527 579,276
----------- ----------- ----------- -----------
Operating income 369,123 188,501 446,651 68,066
Interest and other
income (expense), net (4,439) 3,515 (115) 10,292
----------- ----------- ----------- -----------
Income before provision
for income taxes and
minority interest 364,684 192,016 446,536 78,358
Provision for income
taxes 113,052 59,525 138,426 24,291
----------- ----------- ----------- -----------
Income before minority
interest 251,632 132,491 308,110 54,067
Minority interest in
consolidated joint
venture (1,413) (199) (253) 147
----------- ----------- ----------- -----------
Net income $ 250,219 $ 132,292 $ 307,857 $ 54,214
=========== =========== =========== ===========
Earnings per share -
Class A Stockholders
Diluted $ 1.69 $ 0.92 $ 2.10 $ 0.38
Basic $ 1.79 $ 1.01 $ 2.26 $ 0.53
Number of shares used
in diluted earnings
per share
computation 148,025 143,399 146,860 142,847
Number of shares used
in basic earnings
per share
computation 141,889 137,103 140,193 136,457
Loss per share
- Class B
Stockholders
Diluted $ (0.86) $ (1.11) $ (1.84) $ (3.02)
Basic $ (0.86) $ (1.11) $ (1.84) $ (3.02)
Number of shares used
in diluted loss
per share
computation 4,051 6,028 5,247 6,023
Number of shares used
in basic loss
per share
computation 4,051 6,028 5,247 6,023
ELECTRONIC ARTS
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
December 31, March 31,
2002 2002
ASSETS
Cash, cash equivalents and short-term
investments $1,165,326 $ 796,936
Marketable securities 1,341 6,869
Receivables, less allowances of $206,651
and $115,870, respectively 609,029 190,495
Inventories, net 33,216 23,780
Deferred income taxes 37,732 38,597
Other current assets 82,639 95,866
----------- -----------
Total current assets 1,929,283 1,152,543
Property and equipment, net 302,231 308,827
Investment in affiliates 10,231 19,077
Goodwill and other intangibles, net 119,406 110,512
Long-term deferred income taxes 55,628 64,065
Other assets 44,246 44,350
----------- -----------
Total Assets $2,461,025 $1,699,374
=========== ===========
LIABILITIES, MINORITY INTEREST AND
STOCKHOLDERS' EQUITY
Accounts payable $ 146,816 $ 88,563
Accrued and other liabilities 599,784 364,419
----------- -----------
Total current liabilities 746,600 452,982
Minority interest in consolidated
joint venture 2,876 3,098
Stockholders' equity:
Common stock 1,471 1,446
Paid-in capital 796,950 649,777
Retained earnings 914,652 606,795
Accumulated other comprehensive loss (1,524) (14,724)
----------- -----------
Total stockholders' equity 1,711,549 1,243,294
----------- -----------
Total Liabilities, Minority Interest and
Stockholders' Equity $2,461,025 $1,699,374
=========== ===========
ELECTRONIC ARTS
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended Nine Months Ended
December 31, December 31,
2002 2001 2002 2001
OPERATING ACTIVITIES
Net income $ 250,219 $ 132,292 $ 307,857 $ 54,214
Adjustments to
reconcile net income
to net cash provided
by (used in)
operating activities:
Minority interest in
consolidated joint
venture 1,413 199 253 (147)
Equity in net income
of affiliates (2,900) (2,294) (4,213) (2,134)
Gain on sale of
affiliate -- -- -- (200)
Depreciation and
amortization 24,956 28,257 74,329 83,551
Non-cash
restructuring and
asset impairment
charges 1,352 6,503 1,352 6,503
Permanent impairment
of investment in
affiliates 10,119 -- 10,590 --
(Gain)/loss on sale
of fixed assets (9) 57 106 372
(Gain)/loss on
marketable
securities (2,086) -- 273 --
Bad debt expense 3,165 4,815 7,804 7,142
Stock-based
compensation (1,297) 1,109 864 2,263
Tax benefit from
exercise of stock
options 19,899 -- 36,765 16,789
Change in assets and
liabilities:
Receivables (472,828) (364,661) (424,567) (296,077)
Inventories 3,611 (4,099) (9,436) (9,232)
Other assets 71,410 23,222 (13,999) (46,892)
Accounts payable 26,496 74,010 58,222 80,638
Accrued and other
liabilities 265,192 172,087 229,392 95,364
Deferred income
taxes (771) 84 7,918 (497)
----------- ----------- ----------- -----------
Net cash provided by
(used in) operating
activities 197,941 71,581 283,510 (8,343)
----------- ----------- ----------- -----------
INVESTING ACTIVITIES
Proceeds from sale
of property and
equipment 268 33 679 258
Proceeds from sale
of affiliate -- -- -- 570
Proceeds from sale
of marketable
securities 4,794 -- 4,794 --
Capital expenditures (11,084) (10,345) (34,470) (40,056)
Investment in
affiliates, net (126) (100) (531) 2,918
Change in short-term
investments, net (105,418) 16,480 (151,630) (64,624)
Distribution from
investment in
affiliate -- -- 3,000 --
Proceeds from minority
interest investment -- -- (751) --
Acquisition, net of
cash acquired -- -- (12,868) --
----------- ----------- ----------- -----------
Net cash provided by
(used in) investing
activities (111,566) 6,068 (191,777) (100,934)
----------- ----------- ----------- -----------
FINANCING ACTIVITIES
Proceeds from sale of
Class A shares
through employee
stock plans and
other plans 48,595 24,546 109,876 73,556
Proceeds from sale of
Class B shares
through employee
stock plans and
other plans -- -- 1 --
Purchase of treasury
shares -- (5,098) -- (11,922)
----------- ----------- ----------- -----------
Net cash provided by
financing activities 48,595 19,448 109,877 61,634
----------- ----------- ----------- -----------
Translation adjustment 3,627 (1,364) 11,632 2,369
----------- ----------- ----------- -----------
Increase (decrease) in
cash and cash
equivalents 138,597 95,733 213,242 (45,274)
Beginning cash and cash
equivalents 627,471 278,805 552,826 419,812
----------- ----------- ----------- -----------
Ending cash and cash
equivalents 766,068 374,538 766,068 374,538
Short-term investments 399,258 112,304 399,258 112,304
----------- ----------- ----------- -----------
Ending cash, cash
equivalents and short-
term investments $1,165,326 $ 486,842 $1,165,326 $ 486,842
=========== =========== =========== ===========
ELECTRONIC ARTS
Unaudited Condensed Consolidating Statements of Operations
(in thousands, except per share data)
Three Months Ended December 31, 2002
EA Core EA.com Electronic
(excl. Arts
EA.com)
Total net revenues $1,211,484 $ 22,242 $1,233,726
Total cost of goods sold 553,579 5,101 558,680
----------- ----------- -----------
Gross profit 657,905 17,141 675,046
Operating expenses:
Marketing and sales (Note 1) 124,744 14,748 139,492
General and
administrative 40,502 1,748 42,250
Research and
development (Note 2) 84,351 28,207 112,558
Amortization of
intangibles 927 1,318 2,245
Restructuring and asset
impairment charges 9,378 -- 9,378
----------- ----------- -----------
Total operating
expenses 259,902 46,021 305,923
----------- ----------- -----------
Operating income (loss) 398,003 (28,880) 369,123
Interest and other income
(expense), net (4,359) (80) (4,439)
----------- ----------- -----------
Income (loss) before
provision for income
taxes and minority
interest 393,644 (28,960) 364,684
Provision for income taxes 113,052 -- 113,052
----------- ----------- -----------
Income (loss) before
minority interest 280,592 (28,960) 251,632
Minority interest in
consolidated joint
venture (1,413) -- (1,413)
----------- ----------- -----------
Net income (loss) before
retained interest in
EA.com 279,179 (28,960) 250,219
Net loss related to
retained interest in
EA.com (25,485) 25,485 --
----------- ----------- -----------
Net income (loss) $ 253,694 $ (3,475) $ 250,219
=========== =========== ===========
Earnings per share - Class A
Stockholders
Diluted $ 1.69
Basic $ 1.79
Number of shares used in
diluted earnings per share
computation 148,025
Number of shares used in
basic earnings per share
computation 141,889
Loss per share - Class B
Stockholders
Diluted $ (0.86)
Basic $ (0.86)
Number of shares used in
diluted loss per share
computation 4,051
Number of shares used in
basic loss per share
computation 4,051
Three Months Ended December 31, 2001
EA Core EA.com Electronic
(excl. Arts
EA.com)
Total net revenues $ 810,930 $ 21,948 $ 832,878
Total cost of goods sold 395,261 5,592 400,853
----------- ----------- -----------
Gross profit 415,669 16,356 432,025
Operating expenses:
Marketing and sales (Note 1) 84,192 9,683 93,875
General and
administrative 29,116 2,717 31,833
Research and
development (Note 2) 66,030 31,376 97,406
Amortization of
intangibles 3,205 3,154 6,359
Restructuring and asset
impairment charges -- 14,051 14,051
----------- ----------- -----------
Total operating
expenses 182,543 60,981 243,524
----------- ----------- -----------
Operating income (loss) 233,126 (44,625) 188,501
Interest and other income
(expense), net 3,597 (82) 3,515
----------- ----------- -----------
Income (loss) before
provision for income
taxes and minority
interest 236,723 (44,707) 192,016
Provision for income taxes 59,525 -- 59,525
----------- ----------- -----------
Income (loss) before
minority interest 177,198 (44,707) 132,491
Minority interest in
consolidated joint
venture (199) -- (199)
----------- ----------- -----------
Net income (loss) before
retained interest in
EA.com 176,999 (44,707) 132,292
Net loss related to
retained interest in
EA.com (38,001) 38,001 --
----------- ----------- -----------
Net income (loss) $ 138,998 $ (6,706) $ 132,292
=========== =========== ===========
Earnings per share - Class A
Stockholders
Diluted $ 0.92
Basic $ 1.01
Number of shares used in
diluted earnings per share
computation 143,399
Number of shares used in
basic earnings per share
computation 137,103
Loss per share - Class B
Stockholders
Diluted $ (1.11)
Basic $ (1.11)
Number of shares used in
diluted loss per share
computation 6,028
Number of shares used in
basic loss per share
computation 6,028
Pro forma Results (In thousands, except per share data)
The following table shows the Company's pro forma results reconciled
to the Generally Accepted Accounting Principles ("GAAP") Consolidated
Statements of Operations. The Company's pro forma results do not
include amortization of intangibles, restructuring, asset impairment
charges and permanent impairment of investments. In addition, income
taxes are allocated to EA Core and EA.com at the consolidated
effective tax rate (31%) on a pro rata basis.
Three Months Ended December 31, 2002
EA Core EA.com Electronic
(excl. Arts
EA.com)
Net income (loss) - GAAP $ 253,694 $ (3,475) $ 250,219
=========== =========== ===========
Net loss related to retained
interest in EA.com (note 3) 25,485 (25,485) --
Pro forma allocation of income
taxes (note 4) (8,978) 8,978 --
----------- ----------- -----------
Pro forma net income (loss) 270,201 (19,982) 250,219
Amortization of intangibles 927 1,318 2,245
Restructuring and asset
impairment charges 9,378 -- 9,378
Permanent impairment of
investment in affiliates
(note 5) 10,119 -- 10,119
Income taxes effect on the
above item (6,331) (409) (6,740)
----------- ----------- -----------
Pro forma net income (loss)
less above item $ 284,294 $ (19,073) $ 265,221
=========== =========== ===========
Pro forma diluted earnings
(loss) per share $ 1.92 $ (0.13) $ 1.79
Number of shares used in
diluted earnings (loss)
per share computation 148,025 148,025 148,025
Three Months Ended December 31, 2001
EA Core EA.com Electronic
(excl. Arts
EA.com)
Net income (loss) - GAAP $ 138,998 $ (6,706) $ 132,292
=========== =========== ===========
Net loss related to retained
interest in EA.com (note 3) 38,001 (38,001) --
Pro forma allocation of
income taxes (note 4) (13,859) 13,859 --
----------- ----------- -----------
Pro forma net income (loss) 163,140 (30,848) 132,292
Amortization of intangibles 3,205 3,154 6,359
Restructuring and asset
impairment charges -- 14,051 14,051
Permanent impairment of
investment in affiliates
(note 5) -- -- --
Income taxes effect on the
above item (993) (5,334) (6,327)
----------- ----------- -----------
Pro forma net income (loss)
less above item $ 165,352 $ (18,977) $ 146,375
=========== =========== ===========
Pro forma diluted earnings
(loss) per share $ 1.15 $ (0.13) $ 1.02
Number of shares used in
diluted earnings (loss)
per share computation 143,399 143,399 143,399
Notes:
1) EA.com marketing and sales includes $4,467K of Carriage Fee for the
three months ended December 31, 2002; and includes $4,466K of
Carriage Fee for the three months ended December 31, 2001.
2) EA.com development includes $12,422K of Network Development and
Support and $2,708K of CRMD for the three months ended December
31, 2002; and includes $14,858K of Network Development and Support
and $2,583K of CRMD for the three months ended December 31, 2001.
3) EA Core maintained approximately 85% retained interest in EA.com
through August 2002 and maintains approximately 88% retained
interest in EA.com thereafter and is reflected in the Net income -
GAAP for EA Core. The pro forma statements exclude the retained
interest allocation.
4) The provision for (benefit from) income taxes was allocated between
EA Core and EA.com at the worldwide effective tax rate (31%) based
on each segment's pro rata share of income or loss. The sum of tax
provision (benefit) for EA Core and EA.com is the same as
consolidated tax provision.
5) Total permanent impairment of investments in affiliates were
$10,119K for the three months ended Dec. 31, 2002. These are in
Interest and Other Income (Expense), net in GAAP financials, and
excluded in the pro forma.
ELECTRONIC ARTS
Unaudited Condensed Consolidating Statements of Operations
(in thousands, except per share data)
Nine Months Ended December 31, 2002
EA Core EA.com Electronic
(excl. Arts
EA.com)
Total net revenues $1,958,297 $ 60,817 $2,019,114
Total cost of goods sold 887,814 11,122 898,936
----------- ----------- -----------
Gross profit 1,070,483 49,695 1,120,178
Operating expenses:
Marketing and sales (Note 1) 228,473 31,907 260,380
General and administrative 89,448 5,918 95,366
Research and
development (Note 2) 221,716 79,951 301,667
Amortization of intangibles 2,780 3,956 6,736
Restructuring and asset
impairment charges 9,378 -- 9,378
----------- ----------- -----------
Total operating expenses 551,795 121,732 673,527
----------- ----------- -----------
Operating income (loss) 518,688 (72,037) 446,651
Interest and other income
(expense), net 67 (182) (115)
----------- ----------- -----------
Income (loss) before
provision for income
taxes and minority interest 518,755 (72,219) 446,536
Provision for income taxes 138,426 -- 138,426
----------- ----------- -----------
Income (loss) before
minority interest 380,329 (72,219) 308,110
Minority interest in
consolidated
joint venture (253) -- (253)
----------- ----------- -----------
Net income (loss) before
retained interest in EA.com 380,076 (72,219) 307,857
Net loss related to retained
interest in EA.com (62,581) 62,581 --
----------- ----------- -----------
Net income (loss) $ 317,495 $ (9,638) $ 307,857
=========== =========== ===========
Earnings per share - Class A
Stockholders
Diluted $ 2.10
Basic $ 2.26
Number of shares used
in diluted earnings
per share computation 146,860
Number of shares used
in basic earnings
per share computation 140,193
Loss per share - Class B
Stockholders
Diluted $ (1.84)
Basic $ (1.84)
Number of shares used
in diluted loss
per share computation 5,247
Number of shares used
in basic loss
per share computation 5,247
Nine Months Ended December 31, 2001
EA Core EA.com Electronic
(excl. Arts
EA.com)
Total net revenues $1,201,407 $ 53,577 $1,254,984
Total cost of goods sold 595,468 12,174 607,642
----------- ----------- -----------
Gross profit 605,939 41,403 647,342
Operating expenses:
Marketing and sales (Note 1) 150,002 29,697 179,699
General and administrative 72,535 7,916 80,451
Research and
development (Note 2) 185,138 100,628 285,766
Amortization of intangibles 9,615 9,694 19,309
Restructuring and asset
impairment charges -- 14,051 14,051
----------- ----------- -----------
Total operating expenses 417,290 161,986 579,276
----------- ----------- -----------
Operating income (loss) 188,649 (120,583) 68,066
Interest and other income
(expense), net 10,865 (573) 10,292
----------- ----------- -----------
Income (loss) before
provision for income taxes
and minority interest 199,514 (121,156) 78,358
Provision for income taxes 24,291 -- 24,291
----------- ----------- -----------
Income (loss) before minority
interest 175,223 (121,156) 54,067
Minority interest in
consolidated joint venture 147 -- 147
----------- ----------- -----------
Net income (loss) before
retained interest in EA.com 175,370 (121,156) 54,214
Net loss related to retained
interest in EA.com (102,983) 102,983 --
----------- ----------- -----------
Net income (loss) $ 72,387 $ (18,173) $ 54,214
=========== =========== ===========
Earnings per share - Class A
Stockholders
Diluted $ 0.38
Basic $ 0.53
Number of shares used
in diluted earnings
per share computation 142,847
Number of shares used
in basic earnings
per share computation 136,457
Loss per share - Class B
Stockholders
Diluted $ (3.02)
Basic $ (3.02)
Number of shares used
in diluted loss
per share computation 6,023
Number of shares used
in basic loss
per share computation 6,023
Pro forma Results (In thousands, except per share data)
The following table shows the Company's pro forma results reconciled
to the Generally Accepted Accounting Principles ("GAAP") Consolidated
Statements of Operations. The Company's pro forma results do not
include amortization of intangibles, restructuring and asset
impairment charges and permanent impairment of investments. In
addition, income taxes are allocated to EA Core and EA.com at the
consolidated effective tax rate (31%) on a pro rata basis.
Nine Months Ended December 31, 2002
EA Core EA.com Electronic
(excl. Arts
EA.com)
Net income (loss) - GAAP $ 317,495 $ (9,638) $ 307,857
=========== =========== ===========
Net loss related to retained
interest in EA.com (note 3) 62,581 (62,581) --
Pro forma allocation of
income taxes (note 4) (22,388) 22,388 --
----------- ----------- -----------
Pro forma net income (loss) 357,688 (49,831) 307,857
Amortization of intangibles 2,780 3,956 6,736
Restructuring and asset
impairment charges 9,378 -- 9,378
Permanent impairment of
investment in
affiliates (note 5) 10,119 -- 10,119
Income taxes effect on
the above item (6,906) (1,226) (8,132)
----------- ----------- -----------
Pro forma net income (loss)
less above item $ 373,059 $ (47,101) $ 325,958
=========== =========== ===========
Pro forma diluted earnings
(loss) per share $ 2.54 $ (0.32) $ 2.22
Number of shares used in
diluted earnings (loss)
per share computation 146,860 146,860 146,860
Nine Months Ended December 31, 2001
EA Core EA.com Electronic
(excl. Arts
EA.com)
Net income (loss) - GAAP $ 72,387 $ (18,173) $ 54,214
=========== =========== ===========
Net loss related to retained
interest in EA.com (note 3) 102,983 (102,983) --
Pro forma allocation of
income taxes (note 4) (37,558) 37,558 --
----------- ----------- -----------
Pro forma net income (loss) 137,812 (83,598) 54,214
Amortization of intangibles 9,615 9,694 19,309
Restructuring and asset
impairment charges -- 14,051 14,051
Permanent impairment of
investment in
affiliates (note 5) -- -- --
Income taxes effect on
the above item (2,981) (7,361) (10,342)
----------- ----------- -----------
Pro forma net income (loss)
less above item $ 144,446 $ (67,214) $ 77,232
=========== =========== ===========
Pro forma diluted earnings
(loss) per share $ 1.01 $ (0.47) $ 0.54
Number of shares used in
diluted earnings (loss)
per share computation 142,847 142,847 142,847
Notes:
1) EA.com marketing and sales includes $13,399K of Carriage Fee for
the nine months ended December 31, 2002; and includes $13,398K of
Carriage Fee for the nine months ended December 31, 2001.
2) EA.com development includes $36,533K of Network Development and
Support and $7,052K of CRMD for the nine months ended December 31,
2002; and includes $46,903K of Network Development and Support and
$8,493K of CRMD for the nine months ended December 31, 2001.
3) EA Core maintained approximately 85% retained interest in EA.com
through August 2002 and maintains approximately 88% retained
interest in EA.com thereafter and is reflected in the Net income -
GAAP for EA Core. The pro forma statements exclude the retained
interest allocation.
4) The provision for (benefit from) income taxes was allocated between
EA Core and EA.com at the worldwide effective tax rate (31%) based
on each segment's pro rata share of income or loss. The sum of tax
provision (benefit) for EA Core and EA.com is the same as
consolidated tax provision.
5) Total permanent impairment of investments in affiliates were
$10,119K for the three months ended Dec. 31, 2002. These are in
Interest and Other Income (Expense), net in GAAP financials, and
excluded in the pro forma.
ELECTRONIC ARTS
Unaudited Pro Forma Condensed Statements of Operations
(in thousands, except per share data)
Three Months Ended December 31, 2002
EA Core EA.com Electronic
(excl. Arts
EA.com)
Net revenues $1,211,484 $ 22,242 $1,233,726
Cost of goods sold 553,579 5,101 558,680
----------- ----------- -----------
Gross profit 657,905 17,141 675,046
Operating expenses:
Marketing and sales
(without carriage fee) 124,744 10,281 135,025
General and administrative 40,502 1,748 42,250
Research and development
(without NDS and CRMD) 84,351 13,077 97,428
Network development
and support -- 12,422 12,422
CRMD -- 2,708 2,708
Carriage fee -- 4,467 4,467
Amortization of
intangibles (Note 1) -- -- --
Restructuring and asset
impairment charges (Note 2) -- -- --
----------- ----------- -----------
Total pro forma operating
expenses 249,597 44,703 294,300
----------- ----------- -----------
Pro forma operating income
(loss) 408,308 (27,562) 380,746
Interest and other income
(expense), net (Note 3) 5,760 (80) 5,680
----------- ----------- -----------
Pro forma income (loss)
before provision for
(benefit from) income taxes
and minority interest 414,068 (27,642) 386,426
Provision for (benefit from)
income taxes (Note 4) 128,361 (8,569) 119,792
----------- ----------- -----------
Pro forma income (loss)
before minority interest 285,707 (19,073) 266,634
Minority interest in
consolidated joint venture (1,413) -- (1,413)
----------- ----------- -----------
Pro forma net income (loss) $ 284,294 $ (19,073) $ 265,221
=========== =========== ===========
Pro forma diluted earnings
(loss) per share $ 1.92 $ (0.13) $ 1.79
Number of shares used in
diluted earnings (loss)
per share computation 148,025 148,025 148,025
Three Months Ended December 31, 2001
EA Core EA.com Electronic
(excl. Arts
EA.com)
Net revenues $ 810,930 $ 21,948 $ 832,878
Cost of goods sold 395,261 5,592 400,853
----------- ----------- -----------
Gross profit 415,669 16,356 432,025
Operating expenses:
Marketing and sales
(without carriage fee) 84,192 5,217 89,409
General and administrative 29,116 2,717 31,833
Research and development
(without NDS and CRMD) 66,030 13,935 79,965
Network development and
support -- 14,858 14,858
CRMD -- 2,583 2,583
Carriage fee -- 4,466 4,466
Amortization of intangibles
(Note 1) -- -- --
Restructuring and asset
impairment charges (Note 2) -- -- --
----------- ----------- -----------
Total pro forma operating
expenses 179,338 43,776 223,114
----------- ----------- -----------
Pro forma operating income
(loss) 236,331 (27,420) 208,911
Interest and other income
(expense), net (Note 3) 3,597 (82) 3,515
----------- ----------- -----------
Pro forma income (loss)
before provision for
(benefit from) income taxes
and minority interest 239,928 (27,502) 212,426
Provision for (benefit from)
income taxes (Note 4) 74,377 (8,525) 65,852
----------- ----------- -----------
Pro forma income (loss)
before minority interest 165,551 (18,977) 146,574
Minority interest in
consolidated joint venture (199) -- (199)
----------- ----------- -----------
Pro forma net income (loss) $ 165,352 $ (18,977) $ 146,375
=========== =========== ===========
Pro forma diluted earnings
(loss) per share $ 1.15 $ (0.13) $ 1.02
Number of shares used in
diluted earnings (loss)
per share computation 143,399 143,399 143,399
Notes:
1) Excludes EA Core amortization of intangibles of $927K for Q3'03 and
$3,205K for Q3'02; and excludes EA.com amortization of intangibles
of $1,318K for Q3'03 and $3,154K for Q3'02.
2) Excludes EA Core restructuring and asset impairment charges of
$9,378K for Q3'03 and excludes EA.com restructuring and asset
impairment charges of $14,051K for Q3'02.
3) Excludes EA Core permanent impairment of investment in affiliates
of $10,119K in Q3'03.
4) Consolidated taxes have been allocated to EA Core and EA.com based
on a pro rata basis. The sum of tax provision for EA Core and tax
benefit for EA.com is the same as consolidated tax provision.
Nine Months Ended December 31, 2002
EA Core EA.com Electronic
(excl. Arts
EA.com)
Net revenues $1,958,297 $ 60,817 $2,019,114
Cost of goods sold 887,814 11,122 898,936
----------- ----------- -----------
Gross profit 1,070,483 49,695 1,120,178
Operating expenses:
Marketing and sales
(without carriage fee) 228,473 18,508 246,981
General and administrative 89,448 5,918 95,366
Research and development
(without NDS and CRMD) 221,716 36,366 258,082
Network development and
support -- 36,533 36,533
CRMD -- 7,052 7,052
Carriage fee -- 13,399 13,399
Amortization of intangibles
(Note 1) -- -- --
Restructuring and asset
impairment charges (Note 2) -- -- --
----------- ----------- -----------
Total pro forma operating
expenses 539,637 117,776 657,413
----------- ----------- -----------
Pro forma operating income
(loss) 530,846 (68,081) 462,765
Interest and other income
(expense), net (Note 3) 10,186 (182) 10,004
----------- ----------- -----------
Pro forma income (loss)
before provision for
(benefit from)
income taxes and
minority interest 541,032 (68,263) 472,769
Provision for (benefit from)
income taxes (Note 4) 167,720 (21,162) 146,558
----------- ----------- -----------
Pro forma income (loss)
before minority interest 373,312 (47,101) 326,211
Minority interest in
consolidated joint venture (253) -- (253)
----------- ----------- -----------
Pro forma net income (loss) $ 373,059 $ (47,101) $ 325,958
=========== =========== ===========
Pro forma diluted earnings
(loss) per share $ 2.54 $ (0.32) $ 2.22
Number of shares used in
diluted earnings (loss)
per share computation 146,860 146,860 146,860
Nine Months Ended December 31, 2001
EA Core EA.com Electronic
(excl. Arts
EA.com)
Net revenues $1,201,407 $ 53,577 $1,254,984
Cost of goods sold 595,468 12,174 607,642
----------- ----------- -----------
Gross profit 605,939 41,403 647,342
Operating expenses:
Marketing and sales
(without carriage fee) 150,002 16,299 166,301
General and administrative 72,535 7,916 80,451
Research and development
(without NDS and CRMD) 185,138 45,232 230,370
Network development and
support -- 46,903 46,903
CRMD -- 8,493 8,493
Carriage fee -- 13,398 13,398
Amortization of intangibles
(Note 1) -- -- --
Restructuring and asset
impairment charges (Note 2) -- -- --
----------- ----------- -----------
Total pro forma operating
expenses 407,675 138,241 545,916
----------- ----------- -----------
Pro forma operating income
(loss) 198,264 (96,838) 101,426
Interest and other income
(expense), net (Note 3) 10,865 (573) 10,292
----------- ----------- -----------
Pro forma income (loss)
before provision for
(benefit from)
income taxes and
minority interest 209,129 (97,411) 111,718
Provision for (benefit from)
income taxes (Note 4) 64,830 (30,197) 34,633
----------- ----------- -----------
Pro forma income (loss)
before minority interest 144,299 (67,214) 77,085
Minority interest in
consolidated joint venture 147 -- 147
----------- ----------- -----------
Pro forma net income (loss) $ 144,446 $ (67,214) $ 77,232
=========== =========== ===========
Pro forma diluted earnings
(loss) per share $ 1.01 $ (0.47) $ 0.54
Number of shares used in
diluted earnings (loss)
per share computation 142,847 142,847 142,847
Notes:
1) Excludes EA Core amortization of intangibles of $2,780K for the
nine months ended December 31, 2002 and $9,615K for the nine
months ended December 31, 2001; and excludes EA.com amortization
of intangibles of $3,956K for the nine months ended December 31,
2002 and $9,694K for the nine months ended December 31, 2001.
2) Excludes EA Core restructuring and asset impairment charges of
$9,378K for the nine months ended December 31, 2002 and excludes
EA.com restructuring and asset impairment charges of $14,051K for
the nine months ended December 31, 2002.
3) Excludes EA Core permanent impairment of investment in affiliates
of $10,119K for the nine months ended December 31, 2002.
4) Consolidated taxes have been allocated to EA Core and EA.com based
on a pro rata basis. The sum of tax provision for EA Core and tax
benefit for EA.com is the same as consolidated tax provision.
ELECTRONIC ARTS
Unaudited Supplemental Financial Information and Business Metrics
(in millions, except per share data)
Q3 Q4 Q1 Q2 Q3 YOY %
FY02 FY02 FY03 FY03 FY03 Growth
-------------------------------------
CONSOLIDATED FINANCIAL DATA
Net revenues 833 470 332 453 1,234 48%
Net revenues - trailing twelve
months ("TTM") 1,562 1,725 1,875 2,088 2,489 59%
Gross profit 432 270 191 254 675 56%
Gross margin - % of net revenues 52% 57% 57% 56% 55% N/A
Gross profit - TTM 807 917 1,015 1,147 1,390 72%
Gross margin - TTM % of net
revenues 52% 53% 54% 55% 56% N/A
Operating income 188 67 6 72 369 96%
Operating income margin - % of
net revenues 23% 14% 2% 16% 30% N/A
Operating income - TTM 37 135 209 333 514 1293%
Operating income margin - TTM %
of net revenues 2% 8% 11% 16% 21% N/A
Net income 132 48 7 51 250 89%
Net income per share - diluted $0.92 $0.33 $0.05 $0.34 $1.69 84%
Net income - TTM 36 102 154 238 356 877%
Net income per share - TTM $0.22 $0.68 $1.06 $1.64 $2.41 995%
Pro forma operating income 208 80 9 73 381 82%
Pro forma operating income
margin - % of net revenues 25% 17% 3% 16% 31% N/A
Pro forma operating income - TTM 78 181 252 370 543 593%
Pro forma operating income
margin - TTM % of net revenues 5% 11% 13% 18% 22% N/A
Pro forma net income 146 56 9 52 265 81%
Pro forma net income margin - %
of net revenues 18% 12% 3% 11% 21% N/A
Pro forma net income - TTM 65 133 183 263 382 489%
Pro forma net income margin -
TTM % of net revenues 4% 8% 10% 13% 15% N/A
EA CORE FINANCIAL DATA
EA Core net revenues 811 447 312 434 1,212 49%
EA Core net revenues - TTM 1,495 1,648 1,794 2,004 2,405 61%
EA Core operating income 233 97 26 95 398 71%
EA Core operating income margin
- % of net revenues 29% 22% 8% 22% 33% N/A
EA Core operating income - TTM 210 286 341 451 616 194%
EA Core operating income margin
- TTM % of net revenues 14% 17% 19% 23% 26% N/A
EA Core pro forma operating
income 236 101 27 95 409 73%
EA Core pro forma operating
income margin - % of net
revenues 29% 23% 9% 22% 34% N/A
EA Core pro forma operating
income - TTM 223 299 352 459 632 184%
EA Core pro forma operating
income margin - TTM % of net
revenues 15% 18% 20% 23% 26% N/A
EA.COM FINANCIAL DATA
EA.com net revenues 22 23 20 19 22 1%
EA.com net revenues - TTM 67 77 81 84 84 27%
EA.com operating loss (45) (30) (20) (23) (29) N/A
EA.com operating loss - TTM (173) (151) (132) (118) (102) N/A
EA.com pro forma operating loss (28) (21) (18) (22) (28) N/A
EA.com pro forma operating loss
- TTM (145) (118) (100) (89) (89) N/A
CASH FLOW DATA
Operating cash flow 72 296 7 79 198 177%
Operating cash flow - TTM 185 288 324 454 580 213%
Capital expenditures 10 12 8 15 11 7%
Capital expenditures - TTM 55 52 45 45 46 (17%)
BALANCE SHEET DATA
Cash, cash equivalents and short
term investments 487 797 827 921 1,165 139%
Marketable securities 7 7 5 6 1 (82%)
Accounts receivables, net 463 190 118 139 609 31%
Inventories, net 25 24 24 37 33 33%
GEOGRAPHIC REVENUE MIX
North America Revenue 510 310 174 313 696 36%
Revenue outside North America 323 160 158 140 538 67%
Europe Revenue 280 127 126 117 471 68%
Japan Revenue 21 19 17 9 29 41%
Asia Pacific Revenue 22 14 15 14 38 75%
Net Revenues 833 470 332 453 1,234 48%
GEOGRAPHIC REVENUE MIX - as a %
of Total Revenue
North America Revenue 61% 66% 52% 69% 57% N/A
Revenue outside North America 39% 34% 48% 31% 43% N/A
Europe Revenue 34% 27% 38% 26% 38% N/A
Japan Revenue 2% 4% 5% 2% 2% N/A
Asia Pacific Revenue 3% 3% 5% 3% 3% N/A
Net Revenues 100% 100% 100% 100% 100% N/A
PLATFORM REVENUE MIX
PC 194 137 76 82 219 13%
Sony PlayStation 2 227 113 135 158 459 102%
Nintendo GameCube 30 22 15 28 111 270%
Xbox 45 33 20 37 117 162%
Sony PlayStation 123 27 13 24 54 (57%)
Game Boy Advance 30 14 2 4 68 123%
Game Boy Color 24 10 1 2 22 (6%)
License/OEM 9 6 2 3 5 (48%)
Affiliated Label 121 83 47 96 157 30%
Other 8 2 1 - - (99%)
-------------------------------
Total EA Core Revenues 811 447 312 434 1,212 49%
Subscription 7 9 8 7 10 31%
Advertising 10 13 10 9 9 (10%)
Product Sales 2 - 1 1 2 3%
Direct Sales 3 1 1 1 1 (51%)
License/OEM - - - 1 - N/A
-------------------------------
Total EA.com Revenues 22 23 20 19 22 1%
-------------------------------
Worldwide Net
Revenues 833 470 332 453 1,234 48%
PLATFORM REVENUE MIX - as a % of
Total Revenue
PC 23% 29% 23% 18% 18% N/A
Sony PlayStation 2 27% 24% 41% 35% 37% N/A
Nintendo GameCube 3% 5% 4% 6% 9% N/A
Xbox 5% 7% 6% 8% 9% N/A
Sony PlayStation 15% 6% 4% 6% 4% N/A
Game Boy Advance 4% 3% 1% 1% 6% N/A
Game Boy Color 3% 2% 0% 0% 2% N/A
License/OEM 1% 1% 1% 1% 0% N/A
Affiliated Label 15% 18% 14% 21% 13% N/A
Other 1% 0% 0% 0% 0% N/A
-------------------------------
Total EA Core Revenues 97% 95% 94% 96% 98% N/A
Subscription 1% 2% 3% 2% 1% N/A
Advertising 1% 3% 3% 2% 1% N/A
Product Sales 0% 0% 0% 0% 0% N/A
Direct Sales 1% 0% 0% 0% 0% N/A
License/OEM 0% 0% 0% 0% 0% N/A
-------------------------------
Total EA.com Revenues 3% 5% 6% 4% 2% N/A
-------------------------------
Worldwide Net
Revenues 100% 100% 100% 100% 100% N/A
Platform Sku Release Mix
PC 5 6 2 3 9 80%
Sony PlayStation 2 6 6 4 4 9 50%
Nintendo GameCube 3 2 2 4 9 200%
Xbox 6 4 2 3 8 33%
Sony PlayStation 4 - 1 2 3 (25%)
N64 - - - - - N/A
Game Boy Advance 2 1 1 1 4 100%
Game Boy Color 1 - - - 1 0%
Online 2 1 - 1 1 (50%)
-------------------------------
Total skus 29 20 12 18 44 52%
===============================
OTHER
Employees 3,494 3,479 3,501 3,704 3,788 8%
ELECTRONIC ARTS
Unaudited Supplemental Fact Sheet for Q3 Fiscal 2003
Q3 Product Releases Platform
----------------------------------------------------------------------
FIFA Soccer 2003 Sony PlayStation 2
Harry Potter and the Chamber of Secrets Sony PlayStation 2
James Bond 007: Nightfire Sony PlayStation 2
NBA Live 2003 Sony PlayStation 2
NCAA March Madness 2003 Sony PlayStation 2
Need for Speed Hot Pursuit 2 Sony PlayStation 2
NHL 2003 Sony PlayStation 2
The Lord of the Rings - The Two Towers Sony PlayStation 2
Tiger Woods PGA Tour 2003 Sony PlayStation 2
FIFA Soccer 2003 Xbox
Harry Potter and the Chamber of Secrets Xbox
James Bond 007: Nightfire Xbox
Medal of Honor: Frontline Xbox
NBA Live 2003 Xbox
Need for Speed Hot Pursuit 2 Xbox
NHL 2003 Xbox
Tiger Woods PGA Tour 2003 Xbox
FIFA Soccer 2003 Nintendo Gamecube
Harry Potter and the Chamber of Secrets Nintendo Gamecube
James Bond 007: Nightfire Nintendo Gamecube
Knockout Kings 2003 Nintendo Gamecube
Medal of Honor: Frontline Nintendo Gamecube
NBA Live 2003 Nintendo Gamecube
Need for Speed Hot Pursuit 2 Nintendo Gamecube
NHL 2003 Nintendo Gamecube
Tiger Woods PGA Tour 2003 Nintendo Gamecube
FIFA Soccer 2003 Sony PlayStation
Harry Potter and the Chamber of Secrets Sony PlayStation
NBA Live 2003 Sony PlayStation
FIFA Soccer 2003 Game Boy Advance
Harry Potter and the Chamber of Secrets Game Boy Advance
SSX Tricky Game Boy Advance
The Lord of the Rings - The Two Towers Game Boy Advance
Harry Potter and the Chamber of Secrets Game Boy Color
The Sims Online Online Packaged Goods
FIFA Soccer 2003 PC
Harry Potter and the Chamber of Secrets PC
James Bond 007: Nightfire PC
Medal of Honor Allied Assault Spearhead PC
NASCAR Thunder 2003 PC
NBA Live 2003 PC
Need for Speed Hot Pursuit 2 PC
NHL 2003 PC
Tiger Woods PGA Tour 2003 PC
Co-pub, International only and Others (not in SKU count)
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Bionicle: Matoran Adventures Game Boy Advance
Galidor Defenders of the Outer Dimension Game Boy Advance
Island Xtreme Stunts Game Boy Advance
Ty the Tasmanian Tiger Nintendo Gamecube
Bundesliga Manager 2003 PC
Creator: Harry Potter and the Chamber of SecretsPC
Drome Racers PC
Island Xtreme Stunts PC
Disney Golf Sony PlayStation 2
Drome Racers Sony PlayStation 2
Island Xtreme Stunts Sony PlayStation 2
The Simpsons Skateboarding Sony PlayStation 2
Ty the Tasmanian Tiger Sony PlayStation 2
Ty the Tasmanian Tiger Xbox
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