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ELECTRONIC ARTS ANNOUNCES 61-PERCENT INCREASE IN NET INCOME FOR ITS FOURTH QUARTER

 SAN MATEO, Calif., April 22 /PRNewswire/ -- Electronic Arts (NASDAQ: ERTS) today announced its fourth quarter and fiscal year 1993 operating results. Net income for the fourth quarter ended March 31, 1993, was $8,595,000, up 61 percent from $5,322,000 earned in the fourth quarter of fiscal year 1992. Net income for the fiscal year 1993 was $30,858,000, compared to $18,688,000 for fiscal year 1992, an increase of 65 percent. Earnings per share for the fourth quarter of fiscal year 1993 were 17 cents, up 54 percent from the 11 cents earned in the fourth quarter in fiscal year 1992. Earnings per share for fiscal year 1993 were 65 cents, compared to 42 cents earned in fiscal year 1992, an increase of 55 percent.
 Revenues for the fourth quarter of fiscal year 1993 were $86,581,000, compared to $47,999,000 in the fourth quarter last year, an increase of over 80 percent. Revenues in fiscal year 1993 were $298,386,000, up over 70 percent from fiscal year 1992 revenues of $175,094,000.
 Revenue growth in the fourth quarter and the fiscal year was achieved primarily from sales of software for the Sega(TM) Genesis(TM) and the Super Nintendo Entertainment System(R) (SNES). In addition, for the fourth quarter, the company released 12 new products, compared to seven products released in the fourth quarter last year. The 12 products shipped this quarter included five for the Sega Genesis, six for the IBM PC and one for the Amiga. Top selling new releases during the quarter were Road Rash(TM) II and PGA Tour(R) Golf II for the Sega Genesis. Other products consistently appearing on retailers top ten lists include John Madden Football(TM) '93 for both Sega Genesis and SNES; NHLPA(R) Hockey '93 for Sega Genesis and SNES; and Bulls vs Blazers(TM) for SNES. In addition, revenue from PC products were up over 35 percent compared to the fourth quarter last year, the first year-over-year increase in this category in many quarters. Overall for the fiscal year the company released 51 new products, compared to 45 last year.
 Significant growth was achieved in all geographic territories during the quarter. Compared to the fourth quarter of last year, net revenues were up 56 percent in North America, 89 percent in Europe and 49 percent in Australia. In addition, the company's new joint venture in Japan achieved its goals for the quarter with approximately $7 million in revenues.
 Larry Probst, president and chief executive officer of Electronic Arts, said, "The market momentum that we saw throughout the holiday season and the Consumer Electronics Show in January carried through the fourth quarter and gave us a very strong finish to an outstanding year. Our major goals for the year were to maintain our position as the leading third-party supplier for the Sega Genesis and a leading supplier on the SNES; to significantly expand our presence in Japan; to begin to build a presence in the "edutainment" category; to position the company to take a leading position on new CD formats in FY94; and to achieve our financial goals of 30-35 percent growth in revenues and profits. We achieved or exceeded all of these goals. The 16-bit cartridge market continues to be strong and new CD-ROM formats such as Sega CD and 3DO offer new opportunities to significantly improve on the current generation of software, and we believe, expand the markets for interactive products. Our financial results and strong balance sheet give us the resources to pursue the many potential opportunities before us."
 NOTE: Sega and Genesis are trademarks of Sega Enterprises Ltd. Nintendo and Super Nintendo Entertainment System are registered trademarks of Nintendo of America Inc. NHLPA is a registered trademark of the National Hockey League Players Association. PGA Tour is a registered trademark and used by permission. Road Rash, John Madden Football and Bulls vs Blazers are trademarks of Electronic Arts.
 ELECTRONIC ARTS
 CONDENSED STATEMENT OF INCOME
 (Unaudited, in thousands, except per-share data)
 Three months Fiscal Year
 Ended March 31: 1993 1992 1993 1992
 Net revenues $86,581 $47,999 $298,386 $175,094
 Cost of sales 45,476 24,457 160,578 90,915
 Gross profit 41,105 23,542 137,808 84,179
 Operating Expenses:
 Marketing and sales 11,410 5,609 38,465 22,679
 General and
 administrative 5,519 4,134 20,713 13,962
 Research and
 development 12,471 6,504 37,451 21,533
 Total operating
 expenses 29,400 16,247 96,629 58,174
 Operating income 11,705 7,295 41,179 26,005
 Interest and other
 income, net 672 606 2,537 1,522
 Income before income taxes
 and minority
 interest 12,377 7,901 43,716 27,527
 Provision for
 income taxes 3,798 2,579 13,421 8,839
 Income before minority
 interest 8,579 5,322 30,295 18,688
 Minority interest in
 joint venture 16 --- 563 ---
 Net income $ 8,595 $ 5,322 $30,858 $18,688
 Earnings per share $ 0.17 $ 0.11 $ 0.65 $ 0.42
 Weighted average
 shares outstanding 49,125 46,304 47,685 44,860
 CONDENSED BALANCE SHEETS
 (In thousands)
 3/31/93 3/31/92
 Assets
 Cash and cash equivalents $98,029 $59,053
 Accounts receivable, net 26,382 19,801
 Inventories 12,578 9,343
 Prepaid royalties 5,351 2,847
 Deferred income taxes 6,858 3,390
 Other current assets 3,583 705
 Total current assets 152,781 95,139
 Building, furniture and
 equipment, net 18,899 5,227
 Prepaid royalties 4,366 2,165
 Other assets 5,211 3,242
 Total assets 181,257 105,773
 Liabilities and Shareholders' Equity
 Accounts payable 33,771 14,590
 Accrued liabilities 33,916 23,174
 Total current liabilities 67,687 37,764
 Minority interest in joint venture 2,999 ---
 Common stock 462 219
 Paid in capital 49,770 28,812
 Retained earnings 64,141 39,223
 Translation adjustment (3,802) (245)
 Total liabilities and
 shareholders equity 181,257 105,773
 NOTE: The company's financial statements have been restated to include the accounts and operations of OSI for all applicable periods reported, and the two-for-one stock split which was effective Feb. 8, 1993.
 -0- 4/22/93
 /CONTACT: Jack Heistand, senior vice president, marketing, 415-513-7510, or fax 415-571-7267, or Stan McKee, senior vice president, chief financial and administrative officer, 415-513-7345, or fax 415-571-6375/
 (ERTS)


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

GT -- SF013 -- 9664 04/22/93 16:02 EDT
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Date:Apr 22, 1993
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