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ELECTRONIC ARTS ANNOUNCES FIRST $100 MILLION REVENUE QUARTER AND A 49 PERCENT INCREASE IN NET INCOME FOR ITS THIRD QUARTER

 SAN MATEO, Calif., Jan. 18 /PRNewswire/ -- Electronic Arts (NASDAQ-NMS: ERTS) today announced its third quarter, fiscal year 1993 operating results. Net income for the third quarter ended Dec. 31, 1992 was $12,279,000 up over 49 percent from $8,211,000 earned in the quarter ended Dec. 31, 1991. Net income for the nine months ended Dec. 31, 1992 was $22,263,000 compared to $13,366,000 in the first nine months of the last fiscal year, an increase of 66 percent. Earnings per share for the third quarter of fiscal year 1993 were $.51 compared to $.36 earned in the third quarter of the last fiscal year, an increase of 41 percent. Earnings per share for the nine months ended Dec. 31, 1992 were $.97, up 61 percent from the $.60 earned in the same period last year.
 Revenues for the quarter ended Dec. 31, 1992 were $107,105,000 compared to $64,783,000 in the third quarter of the prior fiscal year, an increase of 65 percent. This is the first quarter in the company's history in which it achieved $100,000,000 in revenues. Revenues for the nine months ended Dec. 31, 1992 were $211,805,000 compared to revenues of $127,095,000 in the same period last year, an increase of 66 percent.
 Revenue growth in the December quarter was achieved primarily from the sales of products for the Sega(TM) Genesis(TM) System and the Super Nintendo Entertainment System(R) in the North American market and from Sega(TM) Genesis(TM) (Mega-Drive) products in Europe. The company released six new titles for Genesis in the quarter -- Where in the World is Carmen San Diego?(TM), Crue Ball(TM), LHX(TM), Lotus Turbo(TM)II, John Madden Football(TM) 93, and Shadow of the Beast(TM)II -- and four new titles for Super NES -- Bulls vs. Blazers and the NBA(R) Playoffs(TM), John Madden Football 93, NHLPA(R) Hockey(TM) 93, and Desert Strike(TM). Many retailers listed at least two or three of these titles, as well as NHLPA Hockey 93, released previously on the Genesis, on their best-seller lists during the holiday season. In addition, one new IBM product and two new Amiga products were shipped during the quarter.
 In addition to a strong lineup of new products and continuing sales of previously released products, revenue growth can be attributed to a very healthy Christmas buying season, particularly strong sales of both Sega Genesis and Super NES game systems, and the company's first-ever and highly successful TV advertising campaign. North American revenues were up over 70 percent from the prior year. Europe continues to lead international growth with revenues up 47 percent from the prior year due to very strong sales of the Sega Mega-Drive (Genesis). Electronic Arts Victor, the company's joint venture in Japan that was launched during the quarter, shipped its first three products and contributed positively to the revenue line. Overall revenues in the quarter increased at a greater rate than net income primarily due to losses incurred in the initial quarter of operations of the joint venture in Japan.
 Larry Probst, president and CEO of Electronic Arts, said, "The recent Consumer Electronics Show clearly illustrated the very strong momentum in the 16-bit cartridge market which we believe will continue to fuel our growth in 1993 and into 1994. The excellent sell-through of both the Sega Genesis and the Super NES contributed heavily to our success in this quarter and also provides an increased installed base for future sales of our software. In addition to these systems, the announcement of the 3DO Interactive Multiplayer demonstrates the kind of incredible breakthrough technology which will soon be available on new generation systems that provide whole new growth scenarios for our business in 1994 and beyond." EA holds a significant minority equity interest in the 3DO Company along with Time Warner, Matsushita, MCA, AT&T, and Kleiner, Perkins, Caufield & Byers, a venture capital firm.
 Sega and Genesis are trademarks of Sega Enterprises Ltd. Nintendo and Super Nintendo Entertainment System are registered trademarks of Nintendo of America Inc. Where in the World is Carmen San Diego? is a trademark of Broderbund Software Inc. Crue Ball is a trademark of Motley Crue Productions, Inc. Lotus Turbo is an approved and licensed product of group Lotus plc. Shadow of the Beast is a trademark of Psygnosis Ltd. NBA is a registered trademark of NBA Properties, Inc. NHLPA is a trademark of the National Hockey League Players Association. All other marks are trademarks of Electronic Arts.
 ELECTRONIC ARTS
 Condensed Statement of Income
 (In thousands, except per share data -- Unaudited)
 Periods ended Three months Nine months
 Dec. 31 1992 1991 1992 1991
 Net revenues $107,105 $64,783 $211,805 $127,095
 Cost of sales 61,372 35,063 115,102 66,458
 Gross profit 45,733 29,720 96,703 60,637
 Operating Expenses:
 Marketing and sales 13,206 7,574 27,055 17,153
 General and administrative 5,886 4,111 15,194 9,828
 Research and development 10,411 6,198 24,980 14,946
 Total operating expenses 29,503 17,883 67,229 41,927
 Operating income 16,230 11,837 29,474 18,710
 Interest and other
 income, net 626 193 1,865 916
 Income before income taxes
 and minority interest 16,856 12,030 31,339 19,626
 Provision for income taxes 5,124 3,819 9,623 6,260
 Income before minority
 interest 11,732 8,211 21,716 13,366
 Minority interest in
 joint venture 547 -- 547 --
 Net income 12,279 8,211 22,263 13,366
 Earnings per share $0.51 $0.36 $0.97 $0.60
 Weighted average
 shares outstanding 24,061 22,878 23,065 22,188
 ELECTRONIC ARTS
 Condensed Balance Sheets
 (In thousands)
 12/31/92 3/31/92
 Assets (unaudited)
 Cash and cash equivalents $64,553 $59,053
 Accounts receivable, net 44,817 19,801
 Inventories 12,259 9,343
 Prepaid royalties 4,973 2,847
 Other current assets 7,896 4,095
 Total current assets 134,498 95,139
 Building, furniture and
 equipment, net 14,116 5,227
 Prepaid royalties 4,387 2,165
 Other assets 6,802 3,242
 Total assets 159,803 105,773
 Liabilities and Shareholders' Equity
 Accounts payable 28,460 14,590
 Accrued liabilities 34,493 23,174
 Total current liabilities 62,953 37,764
 Minority interest in joint venture 2,845 --
 Common stock 229 219
 Paid in capital 41,817 28,812
 Retained earnings 55,546 39,223
 Translation adjustment (3,587) (245)
 Total liabilities and
 shareholders equity 159,803 $105,773
 NOTE: The company's financial statements have been restated to include the accounts and operations of Origin Systems Inc. for all applicable periods reported.
 -0- 1/18/93
 /CONTACT: Jack Heistand, senior vice president-marketing, 415-513-7510, or Stan McKee, SVP, chief financial and administrative officer, 415-513-7345, both of Electronic Arts/
 (ERTS)


CO: Electronic Arts ST: California IN: CPR SU: ERN

SM -- NY003 -- 5978 01/18/93 16:02 EST
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Date:Jan 18, 1993
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