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ELECTRONIC ARTS ANNOUNCES 146 PERCENT INCREASE IN NET INCOME FOR ITS FOURTH QUARTER

 ELECTRONIC ARTS ANNOUNCES 146 PERCENT INCREASE
 IN NET INCOME FOR ITS FOURTH QUARTER
 SAN MATEO, Calif., April 21 /PRNewswire/ -- Electronic Arts (NASDAQ: ERTS) today announced its fourth quarter and fiscal year 1992 operating results. Net income for the fourth quarter ended March 31, 1992 was $4,720,000, up 146 percent from $1,914,000 earned in the fourth quarter of fiscal year 1991. Net income for the fiscal year 1992 was $15,654,000 compared to $8,731,000 for fiscal year 1991, an increase of 79 percent. Earnings per share for the fourth quarter of fiscal year 1992 were $.21, up 133 percent from the $.09 earned in the fourth quarter of fiscal year 1991. Earnings per share for fiscal year 1992 were $.73 compared to $.42 earned in fiscal year 1991, an increase of 74 percent.
 Revenues for the fourth quarter of fiscal year 1992 were $45,417,000 compared to $25,837,000 in the fourth quarter last year, an increase of over 75 percent. Revenues in fiscal year 1992 were $162,129,000, up over 55 percent from fiscal year 1991 revenues of $104,214,000.
 Revenue growth in the fourth quarter and the fiscal year was achieved primarily from sales of software for 16-bit cartridge-based systems -- Sega(TM), Genesis(TM), and Super Nintendo Entertainment System(R) (SNES) -- and from an overall increase in the number of products released during the year. The company released four new Genesis titles during the fourth quarter bringing the total for the fiscal year to 19 and its total for the Genesis product line to 28. Industry Top Ten 16-bit cartridge selling lists have consistently included three to four EA titles. Although the company released no new SNES titles in the fourth quarter, John Madden Football(TM) for the SNES, which shipped in the third quarter, continued to be among the top selling 16-bit titles, according to retailers and an independent industry research firm. Overall, the company released a total of 45 new products during the fiscal year compared to 35 last year.
 Significant revenue growth was achieved in all geographic territories. For the fiscal year, net revenues were up 45 percent in North America, 112 percent in Europe, and 33 percent in Australia.
 Larry Probst, president and CEO of Electronic Arts, said, "The fourth quarter results capped off a year of which we are extremely proud. Our principal goals for the year were to be the number one third-party supplier of products on the Sega Genesis platform and a leading publisher on the Super Nintendo Entertainment System, to significantly increase our development capacity, to form key strategic alliances, and to achieve our financial goals of at least 30 percent growth in revenues and profits. We achieved or exceeded all of these objectives. The continuing growth of the 16-bit cartridge market has validated our strategy and the achievement of our goals has left us well-positioned for the future. Finally, our financial results and strong balance sheet will allow us to take advantage of new opportunities for further growth."
 ELECTRONIC ARTS
 Q4 Earnings Announcement, Fiscal Year 1992
 Condensed Statements of Income
 (In thousands, except per share data)
 3 Months Ended Fiscal Year Ended
 Mar. 31, Mar. 31, Mar. 31, Mar. 31,
 1992 1991 1992 1991
 (unaudited) (unaudited)
 Net revenues $45,417 $25,837 $162,129 $104,214
 Cost of Sales 23,732 14,815 86,901 58,605
 Gross profit 21,685 11,022 75,228 45,609
 Operating expenses:
 Marketing and sales 5,572 3,507 21,832 14,177
 General and
 administrative 3,916 2,236 13,186 8,760
 Research and
 development 5,507 2,530 17,351 10,430
 Total costs and
 expenses 14,995 8,273 52,369 33,367
 Operating income 6,690 2,749 22,859 12,242
 Interest and other
 income, net 564 209 1,410 1,227
 Income before income
 taxes 7,254 2,958 24,269 13,469
 Provision for income
 taxes 2,534 1,044 8,615 4,738
 Net income $4,720 $1,914 $15,654 $8,731
 Earnings per share $0.21 $0.09 $0.73 $0.42
 Weighted average
 shares outstanding 22,108 21,326 21,386 20,750
 Condensed Balance Sheets
 (In thousands)
 March 31, March 31,
 1992 1991
 Assets
 Cash and cash equivalents $56,890 $26,926
 Accounts receivable, net 18,836 17,348
 Inventories 8,547 5,545
 Prepaid royalties 2,847 1,869
 Other current assets 4,059 1,794
 Total current assets 91,179 53,482
 Furniture and equipment, net 4,515 3,075
 Prepaid royalties 2,165 2,060
 Other assets 3,242 4,797
 Total assets $101,101 $63,414


Liabilities and shareholders' equity
 Accounts payable $13,975 $8,274
 Accrued liabilities 21,913 12,749
 Total current liabilities 35,888 21,023
 Common stock 209 21,439
 Paid-in capital 28,652 --
 Retained earnings 36,597 20,943
 Translation adjustment (245) 9
 Total liabilities and
 shareholders' equity $101,101 $63,414
 -0- 4/21/92
 NOTE: The company's financial statements have been restated to


include the accounts and operations of DSI for all applicable periods reported, and the two-for-one stock split which was effective March 16, 1992.
 John Madden Football is a trademark of Electronic Arts. Sega and Genesis are trademarks of Sega Enterprises, Ltd. Super Nintendo Entertainment System is a registered trademark of Nintendo of America, Inc.
 /CONTACT: Holly Hartz, 415-571-7171, ext. 510, or fax: 415-571-7993; or Stan McKee, 415-571-7171, ext. 345, or fax: 415-571-6375, both of Electronic Arts/
 (ERTS) CO: Electronic Arts ST: California IN: CPR SU: ERN


RM-MM -- SF004 -- 0833 04/21/92 16:01 EDT
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