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ELECTRONIC ARTS ANNOUNCES 182 PERCENT INCREASE IN NET INCOME FOR ITS FIRST QUARTER

 ELECTRONIC ARTS ANNOUNCES 182 PERCENT
 INCREASE IN NET INCOME FOR ITS FIRST QUARTER
 SAN MATEO, Calif., July 23 /PRNewswire/ -- Electronic Arts (NASDAQ: ERTS) today announced its first quarter, fiscal year 1993 operating results. Net income for the first quarter ended June 30, 1992, was $4,098,000, up 182 percent from $1,452,000 earned in the first quarter ended June 30, 1991. Earnings per share for the first quarter of fiscal year 1993 were up 157 percent to $.18 from $.07 earned in the first quarter of the prior year.
 Revenues for the quarter ended June 30, 1992, were $45,227,000 compared to $24,600,000 in the first quarter of the prior year, an increase of over 83 percent.
 Revenue growth in the June quarter was achieved primarily from the sales of 16-bit video game products, particularly on the Sega(TM) Genesis(TM), and continued growth in international business. The company released three new Genesis titles during the quarter -- Desert Strike(TM), Jordan vs. Bird(TM), and Bulls vs. Lakers(TM) -- and one title -- PGA Tour(R) Golf(TM) -- on the Super Nintendo Entertainment System(R) (SNES). In addition, the company shipped three new IBM(R) titles -- Rampart(TM), Heroes of the 357th(TM), and Powermonger(TM).
 Significant growth was achieved in all geographic territories. Revenues were up over 60 percent in North America, 200 percent in Europe and over 20 percent in Australia.
 The company signed a new multi-year worldwide licensing agreement with Sega Enterprises Ltd. Under the agreement, Electronic Arts will continue to publish game cartridges for the Sega Genesis and will have the right to publish software for the new Sega CD(TM), which is expected to be introduced into the United States market this fall.
 Larry Probst, president and CEO of Electronic Arts, said, "The market for Sega Genesis and SNES software continued its strong showing in what is traditionally the slowest quarter of the year for our business. We were particularly pleased with the results of Bulls vs. Lakers on the Genesis which has started as one of our best-selling products ever. Our entire sports line under the Electronic Arts Sports Network (EASN) brand is performing extremely well with several titles consistently on industry 'Top 10' lists. We believe the reductions in hardware prices will further stimulate the market for software as we enter the fall season with a strong product lineup."
 ELECTRONIC ARTS
 Q1 Earnings Announcement, Fiscal Year 1993
 Condensed Statements of Income (Unaudited)
 (In thousands, except per share data)
 3 Months Ended June 30,
 1992 1991
 Net Revenues $45,227 $24,600
 Cost of sales 23,908 12,829
 Gross profit 21,319 11,771
 Operating Expenses:
 Marketing and sales 5,868 3,940
 General and administrative 3,932 2,286
 Research and development 5,585 3,601
 Total operating expenses 15,385 9,827
 Operating income 5,934 1,944
 Interest and other income, net 371 372
 Income before income taxes 6,305 2,316
 Provision for income taxes 2,207 864
 Net income 4,098 1,452
 Earnings per share $0.18 $0.07
 Weighted average shares outstanding 22,218 21,281
 Condensed Balance Sheets
 (In thousands) (Unaudited)
 June 30, March 31,
 1992 1991
 ASSETS
 Cash and cash equivalents 69,061 56,890
 Accounts receivable, net 11,651 18,836
 Inventories 6,059 8,547
 Prepaid royalties 3,187 2,847
 Other current assets 5,347 4,059
 Total current assets 95,305 91,179
 Furniture and equipment, net 5,432 4,515
 Prepaid royalties 2,209 2,165
 Other assets 3,108 3,242
 Total assets 106,054 101,101
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts payable 12,508 13,975
 Accrued liabilities 22,693 21,913
 Total current liabilities 35,201 35,888
 Common stock 210 209
 Paid in capital 29,080 28,652
 Retained earnings 40,695 36,597
 Translation adjustment 868 (245)
 Total Liabilities and Shareholders'
 Equity 106,054 101,101
 NOTE: The company's financial statements have been restated to include the accounts and operations of EA Canada (formerly Distinctive Software Inc.) for all applicable periods reported.
 -0- 7/23/92
 NOTE: Desert Strike, Jordan vs. Bird, Bulls vs. Lakers, PGA Tour Golf, Rampart, Heroes of the 357th, and Powermonger are trademarks 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, 415-513-7510 or fax, 415-571-7993; or Stan McKee, 415-513-7345 or fax, 415-571-6375, both of Electronic Arts/
 (ERTS) CO: Electronic Arts ST: California IN: ENT SU: ERN


RM-MM -- SF001 -- 2218 07/23/92 06:01 EDT
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Date:Jul 23, 1992
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