November 2, 2006

EA Reports Second Quarter Fiscal 2007 Results

Q2 Net Revenue a Record $784 Million Driven by EA SPORTS Titles Need for Speed Carbon Debuts on 10 Platforms

REDWOOD CITY, Calif., Nov 02, 2006 (BUSINESS WIRE) -- Electronic Arts (NASDAQ:ERTS) today announced preliminary financial results for its fiscal second quarter ended September 30, 2006.

Fiscal Second Quarter Results

Net revenue for the second quarter was $784 million, up 16 percent as compared with $675 million for the prior year. Sales were driven primarily by Madden NFL 07, NCAA® Football 07, FIFA 07, NBA Live 07 and catalog titles.

Gross profit for the quarter was $445 million, up 14 percent year-over-year. Net income for the quarter was $22 million as compared with $51 million for the prior year. The Company adopted Statement of Financial Accounting Standards (SFAS) No. 123R "Share-Based Payment" at the beginning of its fiscal year resulting in pre-tax stock-based compensation charges of $33 million in the second quarter. Diluted earnings per share were $0.07 as compared with $0.16 for the prior year.

Non-GAAP net income was $65 million as compared with $46 million a year ago - an increase of 41 percent year-over-year. Non-GAAP diluted earnings per share were $0.21 as compared with $0.15 for the prior year. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

Trailing twelve month operating cash flow was $571 million as compared with $592 million a year ago. The Company ended the quarter with cash, cash equivalents and marketable securities of $2.4 billion.

"We are well prepared for the holidays on all platforms, including the Xbox 360, PLAYSTATION 3 and the Nintendo Wii," said Larry Probst, Chairman and Chief Executive Officer. "In the quarter, we plan to release eight titles across multiple platforms and currently have more than 30 next-generation games in development."

"This was a strong quarter for EA," said Warren Jenson, Chief Financial and Administrative Officer. "While our industry remains in the midst of transition the landscape looks strong enough that we are able to increase our guidance range for the year."

Highlights (comparisons are to the quarter ended September 30, 2005)

-- Net revenue: North America -- up 16 percent to a Q2 record $512 million; Europe -- up 28 percent to a Q2 record $245 million; Asia -- down 34 percent to $27 million. Movements in foreign currency rates positively impacted net revenue by $10 million, or one percent.

-- Xbox 360 revenue was $166 million -- offsetting a 25 percent decline in current-generation console revenue.

-- Year-to-date, EA is the number one publisher on the Xbox 360 in both North America and Europe.

-- Madden NFL 07 had a record launch with five million copies sold in just five weeks. Year-to-date, Madden NFL 07 is the industry's number one title in North America.

-- NCAA Football 07 set a record -- selling over 2 million copies in the quarter.

-- NHL® 07 has gone platinum since launch.

-- FIFA 07 had a strong international launch -- selling nearly two million copies in just one week.

-- EA has partnered with Apple® to bring its games to the iPod®.

-- EA has joined with Massive and IGA to introduce dynamic in-game advertising to several titles.

-- EA purchased Phenomic Games, a talented European developer of real time strategy games.

-- EA closed the acquisition of Mythic Entertainment, the critically acclaimed developer of massively multiplayer online games.

Business Outlook

The following forward-looking statements, as well as those made above, reflect expectations as of November 2, 2006. Results may be materially different and are affected by many factors, such as: the timely release of next-generation hardware and the ability of console manufacturers to produce an adequate supply of consoles to meet demand; development delays on EA's products; changes in foreign exchange rates; the overall global economy; the popular appeal of EA's products; competition in the industry; EA's effective tax rate and other factors detailed in this release and in EA's annual and quarterly SEC filings.

Fiscal Third Quarter Expectations -- Ending December 31, 2006

-- Net revenue is expected to be between $1.2 and $1.3 billion.

-- GAAP diluted earnings per share are expected to be between $0.33 and $0.43.

-- Non-GAAP diluted earnings per share are expected to be between $0.50 and $0.60. Expected non-GAAP diluted earnings per share exclude the following items from expected GAAP diluted earnings per share: approximately $0.09 of estimated stock-based compensation; approximately $0.04 related to the Company's acquisition of Mythic Entertainment; approximately $0.03 of amortization of intangible assets; and approximately $0.01 of estimated restructuring charges related to the reorganization and establishment of an international publishing headquarters in Geneva.

Fiscal Year Expectations -- Ending March 31, 2007

-- Net revenue is expected to be between $2.950 and $3.125 billion -- up from previous expectations of $2.8 to 3.0 billion

-- GAAP diluted earnings per share are expected to be breakeven to $0.15 -- versus previous expectations of ($0.30) to breakeven.

-- Non-GAAP diluted earnings per share are expected to be between $0.55 and $0.70 -- up from previous expectations of $0.35 to $0.65. Expected non-GAAP diluted earnings per share excludes the following items from expected GAAP diluted earnings per share: approximately $0.33 of estimated stock-based compensation; approximately $0.13 of amortization of intangible assets; approximately $0.05 related to the Company's acquisitions of Mythic Entertainment and Digital Illusions; and approximately $0.04 of estimated restructuring charges related to the reorganization and establishment of an international publishing headquarters in Geneva.

Conference Call

Electronic Arts will host a conference call today at 2:00 pm PT (5:00 pm ET) to review its results for the second quarter of fiscal 2007 and to discuss its outlook for the future. During the course of the call, Electronic Arts may also disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (800) 500-0311, access code 220497, or a webcast: http://investor.ea.com.

A dial-in replay of the conference call will be provided until November 9, 2006 at (719) 457-0820, access code 220497. A webcast archive of the conference call will be available for one year at http://investor.ea.com.

Non-GAAP Financial Measures

To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with GAAP, Electronic Arts uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by Electronic Arts include non-GAAP operating income (loss), non-GAAP net income (loss) and historical and estimated non-GAAP diluted earnings (loss) per share. These non-GAAP financial measures exclude the following items from the Company's statement of operations:

-- Acquired in-process technology

-- Amortization of intangibles

-- Certain litigation expense

-- Restructuring charges

-- Stock-based compensation

-- Income tax adjustments (consisting of the income tax effect of the items listed above and certain one-time income tax adjustments)

In addition, Electronic Arts may consider whether other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.

Electronic Arts believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company's performance by excluding certain items that may not be indicative of the Company's core business, operating results or future outlook. Electronic Arts' management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing the Company's operating results both as a consolidated entity and at the business unit level, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company's performance to prior periods.

In addition to the reasons stated above, which are generally applicable to each of the items Electronic Arts excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude certain items for the following reasons:

Amortization of Intangibles. When analyzing the operating performance of an acquired entity, Electronic Arts' management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any allocations made for accounting purposes. Because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets (including acquired in-process technology and goodwill), when analyzing the operating performance of an acquisition in subsequent periods, the Company's management excludes the GAAP impact of acquired intangible assets to its financial results. Electronic Arts believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

In addition, in accordance with GAAP, Electronic Arts generally recognizes expenses for internally-developed intangible assets as they are incurred, notwithstanding the potential future benefit such assets may provide. Unlike internally-developed intangible assets, however, and also in accordance with GAAP, the Company generally capitalizes the cost of acquired intangible assets and recognizes that cost as an expense over the useful lives of the assets acquired (other than goodwill, which is not amortized, and acquired in-process technology, which is expensed immediately, as required under GAAP). As a result of their GAAP treatment, there is an inherent lack of comparability between the financial performance of internally-developed intangible assets and acquired intangible assets. Accordingly, Electronic Arts believes it is useful to provide, as a supplement to its GAAP operating results, a non-GAAP financial measure that excludes the amortization of acquired intangibles.

Stock-Based Compensation. Electronic Arts adopted SFAS No. 123R, "Share-Based Payment" beginning in its fiscal year 2007. When evaluating the performance of its individual business units, the Company does not consider stock-based compensation charges. Likewise, the Company's management teams exclude stock-based compensation expense from their short and long-term operating plans. In contrast, the Company's management teams are held accountable for cash-based compensation and such amounts are included in their operating plans. Further, when considering the impact of equity award grants, Electronic Arts places a greater emphasis on overall shareholder dilution rather than the accounting charges associated with such grants.

Video game platforms have historically had a life cycle of four to six years, which causes the video game software market to be cyclical. The Company's management analyzes its business and operating performance in the context of these business cycles, comparing Electronic Arts' performance at similar stages of different cycles. For comparability purposes, Electronic Arts believes it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of its core business. In addition, given the Company's adoption of SFAS No. 123R, "Share-Based Payment" beginning with its fiscal year ending March 31, 2007, Electronic Arts believes that a non-GAAP financial measure that excludes stock-based compensation will facilitate the comparison of its year-over-year results.

Restructuring Charges. Although Electronic Arts has engaged in various restructuring activities over the past several years, each has been a discrete, extraordinary event based on a unique set of business objectives. Each of these restructurings has been unlike its predecessors in terms of its operational implementation, business impact and scope. The Company does not engage in restructuring activities on a regular basis or in the ordinary course of business. As such, the Company believes it is appropriate to exclude restructuring charges from its non-GAAP financial measures.

In the financial tables below, Electronic Arts has provided a reconciliation of the most comparable GAAP financial measure to each of the historical non-GAAP financial measures used in this press release.

Forward-Looking Statements

Some statements set forth in this release, including the estimates under the heading "Business Outlook," contain forward-looking statements that are subject to change. Statements including words such as "anticipate", "believe", "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause the Company's results to differ materially from its expectations include the following: the timely release of next-generation hardware; the availability of an adequate supply of current-generation and next-generation hardware units (including the Xbox 360 video game and entertainment system, the PLAYSTATION®3 computer entertainment system and the Wii); the Company's ability to predict consumer preferences among competing hardware platforms; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; timely development and release of Electronic Arts' products; competition in the interactive entertainment industry; the Company's ability to manage expenses during fiscal year 2007; the Company's ability to attract and retain key personnel; changes in the Company's effective tax rates; adoption of new accounting regulations and standards; potential regulation of the Company's products in key territories; developments in the law regarding protection of the Company's products; fluctuations in foreign exchange rates; the Company's ability to secure licenses to valuable entertainment properties on favorable terms; and other factors described in the Company's Annual Report on Form 10-K for the year ended March 31, 2006 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2006. These forward-looking statements speak only as of November 2, 2006. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements, including those made under the "Business Outlook" heading. In addition, the financial results set forth in this release are estimates based on information currently available to Electronic Arts. While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2006. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 2006.

About Electronic Arts

Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, the company develops, publishes, and distributes interactive software worldwide for videogame systems, personal computers, cellular handsets and the Internet. Electronic Arts markets its products under four brand names: EA SPORTS, EA, EA SPORTS BIG and POGO. In fiscal 2006, EA posted revenue of $2.95 billion and had 27 titles that sold more than one million copies. EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com.

All trademarks are the property of their respective owners.

                ELECTRONIC ARTS INC. AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Operations
                 (in millions, except per share data)


                                Three Months Ended   Six Months Ended
                                  September 30,       September 30,
                                ------------------  ------------------
                                 2006      2005      2006      2005
                                --------  --------  --------  --------
 Net revenue                    $   784   $   675   $ 1,196   $ 1,040
 Cost of goods sold                 339       284       506       434
                                --------  --------  --------  --------
 Gross profit                       445       391       690       606

 Operating expenses:
     Marketing and sales            108       107       185       182
     General and administrative      72        52       131       103
     Research and development       238       182       454       365
     Amortization of
      intangibles                     7         1        13         2
     Acquired in-process
      technology                      2         -         2         -
     Restructuring charges            4         -        10         -
                                --------  --------  --------  --------
        Total operating
         expenses                   431       342       795       652
                                --------  --------  --------  --------

 Operating income (loss)             14        49      (105)      (46)
 Interest and other income, net      24        13        45        30
                                --------  --------  --------  --------

    Income (loss) before
     provision (benefit) from
     income taxes and minority
     interest                        38        62       (60)      (16)
 Provision (benefit) from
  income taxes                       16         9        (1)      (13)
                                --------  --------  --------  --------

 Income (loss) before minority
  interest                           22        53       (59)       (3)
 Minority interest                    -        (2)        -        (4)
                                --------  --------  --------  --------

 Net income (loss)              $    22   $    51   $   (59)  $    (7)
                                ========  ========  ========  ========

Earnings (loss) per share:
     Basic                      $  0.07   $  0.17   $ (0.19)  $ (0.02)
     Diluted                    $  0.07   $  0.16   $ (0.19)  $ (0.02)

Number of shares used in
 computation:
     Basic                          307       302       306       305
     Diluted                        315       314       306       305




Non-GAAP Results (in millions, except per share data)

The following table reconciles the Company's net income (loss) and
 diluted earnings (loss) per share as presented in its Unaudited
 Condensed Consolidated Statements of Operations as prepared in
 accordance with Generally Accepted Accounting Principles ("GAAP")
 with its non-GAAP net income (loss) and non-GAAP diluted earnings
 (loss) per share. The Company's non-GAAP net income (loss) and non-
 GAAP diluted earnings (loss) per share exclude acquired in-process
 technology, amortization of intangibles, certain litigation expense,
 restructuring charges, and stock-based compensation. In addition, the
 Company's non-GAAP net income (loss) and non-GAAP diluted earnings
 (loss) per share exclude income tax adjustments consisting of the
 income tax expense associated with the foregoing excluded items and
 the impact of certain one-time income tax adjustments.

                                Three Months Ended   Six Months Ended
                                  September 30,       September 30,
                                ------------------  ------------------
                                 2006      2005      2006      2005
                                --------  --------  --------  --------
Net income (loss)               $    22   $    51   $   (59)  $    (7)

   Acquired in-process
    technology                        2         -         2         -
   Amortization of intangibles        7         1        13         2
   Certain litigation expense         -         1         -         1
   COGS amortization of
    intangibles                       7         2        13         4
   Restructuring charges              4         -        10         -
   Stock-based compensation          33         1        70         1
   Income tax adjustments           (10)      (10)      (22)      (10)

                                --------  --------  --------  --------
Non-GAAP net income (loss)      $    65   $    46   $    27   $    (9)
                                ========  ========  ========  ========

Non-GAAP diluted earnings
 (loss) per share               $  0.21   $  0.15   $  0.09   $ (0.03)

Number of shares used in non-
 GAAP diluted earnings (loss)
 per share computation              315       314       314       305


                ELECTRONIC ARTS INC. AND SUBSIDIARIES
           Unaudited Condensed Consolidated Balance Sheets
                            (in millions)


                                           September 30,   March 31,
                                               2006        2006 (a)
                                           ------------- -------------
ASSETS

Current assets:
  Cash, cash equivalents and short-term
   investments                             $      2,172  $      2,272
  Marketable equity securities                      204           160
  Receivables, net of allowances of $172
   million and $232 million, respectively           267           199
  Inventories                                        67            61
  Deferred income taxes, net                         89            86
  Other current assets                              210           234
                                           ------------- -------------
    Total current assets                          3,009         3,012

Property and equipment, net                         448           392
Investment in affiliates                             11            11
Goodwill                                            709           647
Other intangibles, net                              231           232
Other assets                                        103            92
                                           ------------- -------------
  TOTAL ASSETS                             $      4,511  $      4,386
                                           ============= =============

LIABILITIES, MINORITY INTEREST AND
 STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                         $        199  $        163
  Accrued and other liabilities                     634           706
                                           ------------- -------------
    Total current liabilities                       833           869

Deferred income taxes, net                           13            29
Other liabilities                                    61            68
                                           ------------- -------------
    Total liabilities                               907           966

Minority interest                                    13            12

Stockholders' equity:
  Common stock                                        3             3
  Paid-in capital                                 1,249         1,081
  Retained earnings                               2,182         2,241
  Accumulated other comprehensive income            157            83
                                           ------------- -------------
    Total stockholders' equity                    3,591         3,408
                                           ------------- -------------
  TOTAL LIABILITIES, MINORITY INTEREST AND
   STOCKHOLDERS' EQUITY                    $      4,511  $      4,386
                                           ============= =============

(a) Derived from audited financial statements.



                ELECTRONIC ARTS INC. AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Cash Flows
                            (in millions)


                               Three Months Ended   Six Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
OPERATING ACTIVITIES
 Net income (loss)             $     22  $     51  $    (59) $     (7)

 Adjustments to reconcile net
  income (loss) to net cash
  provided by (used in)
  operating activities:
  Depreciation and amortization      37        23        72        46
  Stock-based compensation           33         -        70         -
  Minority interest                   -         2         -         4
  Realized net losses on
   investments and sale of
    property and equipment            1         1         1         2
  Tax benefit from exercise of
   stock options                      -        87         -        92
  Acquired in-process
   technology                         2         -         2         -
  Change in assets and
   liabilities:
     Receivables, net              (222)     (162)      (63)      (20)
     Inventories                     (8)      (10)       (5)       (9)
     Other assets                     2        (4)       14       (16)
     Accounts payable                85        59        35        34
     Accrued and other
      liabilities                    42       (35)     (111)     (145)
                               --------- --------- --------- ---------
Net cash provided by (used in)
 operating activities                (6)       12       (44)      (19)
                               --------- --------- --------- ---------

INVESTING ACTIVITIES
  Capital expenditures              (48)      (23)      (86)      (56)
  Proceeds from sale of
   marketable equity securities       -         -         -         4
  Proceeds from maturities and
   sales of short-term
   investments                      484       187       680       321
  Purchase of short-term
   investments                     (455)     (143)     (604)     (281)
  Acquisition of subsidiaries,
   net of cash acquired             (67)        -       (67)       (3)
  Other investing activities          -         -         2        (1)
                               --------- --------- --------- ---------
Net cash provided by (used in)
 investing activities               (86)       21       (75)      (16)
                               --------- --------- --------- ---------

FINANCING ACTIVITIES
   Proceeds from sale of common
    stock through
     employee stock plans and
      other plans                    48        41        85        60
   Excess tax benefit from
    stock-based compensation          8         -        12         -
   Repayment of note assumed in
    connection with acquisition       -         -       (14)        -
   Repurchase and retirement of
    common stock                      -      (372)        -      (709)
                               --------- --------- --------- ---------
Net cash provided by (used in)
 financing activities                56      (331)       83      (649)
                               --------- --------- --------- ---------

Effect of foreign exchange on
 cash and cash equivalents            -        (1)        6       (11)
                               --------- --------- --------- ---------
Decrease in cash and cash
 equivalents                        (36)     (299)      (30)     (695)
Beginning cash and cash
 equivalents                      1,248       874     1,242     1,270
                               --------- --------- --------- ---------
Ending cash and cash
 equivalents                      1,212       575     1,212       575
Short-term investments              960     1,655       960     1,655
                               --------- --------- --------- ---------
Ending cash, cash equivalents
 and short-term investments    $  2,172  $  2,230  $  2,172  $  2,230
                               ========= ========= ========= =========


                ELECTRONIC ARTS INC. AND SUBSIDIARIES
  Unaudited Supplemental Financial Information and Business Metrics
    (in millions, except per share data, SKU count and Headcount)



                             Q2     Q3     Q4      Q1      Q2   YOY %
                            FY06   FY06   FY06    FY07    FY07  Change
                           ------ ------ ------- ------- ------ ------
CONSOLIDATED FINANCIAL
 DATA
     Net revenue             675  1,270     641     413    784     16%
     Net revenue -
      trailing twelve
      months ("TTM")       3,021  2,863   2,951   2,999  3,108      3%

     Gross profit            391    768     397     245    445     14%
        Gross margin - %
         of net revenue       58%    60%     62%     59%    57%
     Gross profit - TTM    1,850  1,693   1,770   1,801  1,855      -
        Gross margin - TTM
         % of net revenue     61%    59%     60%     60%    60%


     Operating income
      (loss)                  49    347      25    (119)    14   (71%)
        Operating income
         (loss) margin - %
         of net revenue        7%    27%      4%   (29%)     2%
     Operating income -
      TTM                    472    300     325     302    267   (43%)
        Operating income
         margin - TTM % of
         net revenue          16%    10%     11%     10%     9%


     Net income (loss)        51    259     (16)    (81)    22   (57%)
        Diluted earnings
         (loss) per share  $0.16  $0.83  ($0.05) ($0.26) $0.07   (56%)
     Net income - TTM        376    260     236     213    184   (51%)
        Diluted earnings
         per share - TTM   $1.17  $0.82   $0.75   $0.68  $0.59   (50%)


     Non-GAAP operating
      income (loss) (a)       54    359      58     (64)    67     24%
        Non-GAAP operating
         income (loss)
         margin - % of net
         revenue               8%    28%      9%   (15%)     9%
     Non-GAAP operating
      income - TTM (a)       528    352     378     407    420   (20%)
        Non-GAAP operating
         income margin -
         TTM % of net
         revenue              17%    12%     13%     14%    14%


     Non-GAAP net income
      (loss) (a)              46    268      43     (38)    65     41%
        Non-GAAP diluted
         earnings (loss)
         per share (a)     $0.15  $0.86   $0.14  ($0.12) $0.21     40%
     Non-GAAP net income -
      TTM (a)                412    289     301     319    338   (18%)
        Non-GAAP diluted
         earnings per
         share - TTM (a)   $1.29  $0.92   $0.96   $1.03  $1.09   (16%)


CASH FLOW DATA
     Operating cash flow      12    278     337     (38)    (6) (150%)
     Operating cash flow -
      TTM                    592    733     596     589    571    (4%)

     Capital expenditures     23     31      36      38     48    109%
     Capital expenditures
      - TTM                  137    131     123     128    153     12%


BALANCE SHEET DATA
     Cash, cash
      equivalents and
      short term
      investments          2,230  2,556   2,272   2,231  2,172    (3%)
     Marketable equity
      securities             182    167     160     166    204     12%
     Receivables, net        328    567     199      41    267   (19%)
     Inventories              74     76      61      59     67    (9%)


STOCK-BASED COMPENSATION
     Cost of goods sold        -      -       -       -      1
     Marketing and sales       -      -       -       5      4
     General and
      administrative           -      -       1      11      9
     Research and
      development              1      -       1      21     19
                           ------------------------------------
        Total Stock-Based
         Compensation          1      -       2      37     33


STOCK-BASED COMPENSATION -
 as a % of Net Revenue
     Cost of goods sold        -      -       -       -      -
     Marketing and sales       -      -       -       1%     1%
     General and
      administrative           -      -       -       3%     1%
     Research and
      development              -      -       -       5%     2%
                           ------------------------------------
        Total Stock-Based
         Compensation          -      -       -       9%     4%


OTHER
     Employees             6,608  6,819   7,175   7,116  7,517     14%
     Diluted weighted-
      average shares         314    311     304     306    315

(a) Please see attached for Unaudited Reconciliation of GAAP to Non-
 GAAP Results.


                ELECTRONIC ARTS INC. AND SUBSIDIARIES
         Unaudited Reconciliation of GAAP to Non-GAAP Results
                 (in millions, except per share data)

The following tables reconcile the Company's operating income (loss),
 net income (loss) and diluted earnings (loss) per share as presented
 in its Unaudited Condensed Consolidated Statements of Operations as
 prepared in accordance with Generally Accepted Accounting Principles
 ("GAAP") with its non-GAAP operating income (loss), non-GAAP net
 income (loss), and non-GAAP earnings (loss) per share. The Company's
 non-GAAP operating income (loss), net income (loss) and non-GAAP
 earnings (loss) per share exclude acquired in-process technology,
 amortization of intangibles, certain litigation expense,
 restructuring charges, and stock-based compensation. In addition, the
 Company's non-GAAP net income (loss) and non-GAAP diluted earnings
 (loss) per share exclude income tax adjustments consisting of the
 income tax expense associated with the foregoing excluded items and
 the impact of certain one-time income tax adjustments.

                         Q2      Q3       Q4       Q1      Q2   YOY %
                        FY06    FY06     FY06     FY07    FY07  Change
                       ------- ------- -------- -------- ------ ------
QUARTERLY
 RECONCILIATION OF
 RESULTS
  GAAP operating
   income (loss)       $   49  $  347  $    25  $  (119) $  14   (71%)
    Acquired in-
     process
     technology             -       -        7        -      2
    Amortization of
     intangibles            1       1        4        6      7
    Certain litigation
     expense                1       -       (1)       -      -
    COGS amortization
     of intangibles         2       2        4        6      7
    Restructuring
     charges                -       9       17        6      4
    Stock-based
     compensation           1       -        2       37     33
                       ------- ------- -------- -------- ------

  Non-GAAP operating
   income (loss)       $   54  $  359  $    58  $   (64) $  67     24%
                       ======= ======= ======== ======== ======
    Non-GAAP operating
     income (loss)
     margin - % of net
     revenue                8%     28%       9%    (15%)     9%


  GAAP net income
   (loss)              $   51  $  259  $   (16) $   (81) $  22   (57%)
    Acquired in-
     process
     technology             -       -        7        -      2
    Amortization of
     intangibles            1       1        4        6      7
    Certain litigation
     expense                1       -       (1)       -      -
    COGS amortization
     of intangibles         2       2        4        6      7
    Restructuring
     charges                -       9       17        6      4
    Stock-based
     compensation           1       -        2       37     33
    Income tax
     adjustments          (10)     (3)      26      (12)   (10)
                       ------- ------- -------- -------- ------

  Non-GAAP net income
   (loss)              $   46  $  268  $    43  $   (38) $  65     41%
                       ======= ======= ======== ======== ======
    Non-GAAP net
     income (loss)
     margin - % of net
     revenue                7%     21%       7%     (9%)     8%

  GAAP diluted
   earnings (loss) per
   share               $ 0.16  $ 0.83  $ (0.05) $ (0.26) $0.07   (56%)
  Non-GAAP diluted
   earnings (loss) per
   share               $ 0.15  $ 0.86  $  0.14  $ (0.12) $0.21     40%
    Shares used in
     non-GAAP diluted
     earnings (loss)
     per share
     computation          314     311      312      306    315



TRAILING TWELVE MONTH
 RECONCILIATION OF
 RESULTS
  GAAP operating
   income              $  472  $  300  $   325  $   302  $ 267   (43%)
    Acquired in-
     process
     technology            15       5        8        7      9
    Amortization of
     intangibles            4       4        7       12     18
    Certain litigation
     expense               22      22        -        -     (1)
    COGS amortization
     of intangibles         7       8        9       14     19
    Restructuring
     charges                1      10       26       32     36
    Stock-based
     compensation           7       3        3       40     72
                       ------- ------- -------- -------- ------
  Non-GAAP operating
   income              $  528  $  352  $   378  $   407  $ 420   (20%)
                       ======= ======= ======== ======== ======
    Non-GAAP operating
     income margin - %
     of net revenue        17%     12%      13%      14%    14%


  GAAP net income      $  376  $  260  $   236  $   213  $ 184   (51%)
    Acquired in-
     process
     technology            14       4        8        7      9
    Amortization of
     intangibles            4       4        7       12     18
    Certain litigation
     expense               22      22        -        -     (1)
    COGS amortization
     of intangibles         7       8        9       14     19
    Restructuring
     charges                1      10       26       32     36
    Stock-based
     compensation           7       3        3       40     72
    Income tax
     adjustments          (19)    (22)      12        1      1
                       ------- ------- -------- -------- ------

  Non-GAAP net income  $  412  $  289  $   301  $   319  $ 338   (18%)
                       ======= ======= ======== ======== ======
    Non-GAAP net
     income margin - %
     of net revenue        14%     10%      10%      11%    11%

  GAAP diluted
   earnings per share   $1.17   $0.82    $0.75    $0.68  $0.59   (50%)
  Non-GAAP diluted
   earnings per share   $1.29   $0.92    $0.96    $1.03  $1.09   (16%)


                ELECTRONIC ARTS INC. AND SUBSIDIARIES
  Unaudited Supplemental Financial Information and Business Metrics
    (in millions, except per share data, SKU count and Headcount)



                               Q2     Q3     Q4     Q1     Q2   YOY %
                              FY06   FY06   FY06   FY07   FY07  Change
                             ------ ------ ------ ------ ------ ------


GEOGRAPHIC REVENUE MIX
     North America Revenue     443    618    340    209    512     16%
     International Revenue     232    652    301    204    272     17%

     Europe Revenue            191    577    262    169    245     28%
     Asia Revenue               41     75     39     35     27   (34%)
                             ----------------------------------
          Net Revenue          675  1,270    641    413    784     16%


GEOGRAPHIC REVENUE MIX - as
 a % of Net Revenue
     North America Revenue      66%    49%    53%    51%    65%
     International Revenue      34%    51%    47%    49%    35%

     Europe Revenue             28%    45%    41%    41%    31%
     Asia Revenue                6%     6%     6%     8%     4%
                             ----------------------------------
          Net Revenue          100%   100%   100%   100%   100%

PLATFORM REVENUE MIX
     Sony PlayStation 2        304    495    211     99    269   (12%)
     Xbox 360                    -     76     64     61    166    N/M
     Xbox                      136    152     68     23     65   (52%)
     Nintendo GameCube          27     69     17     11     14   (48%)
     Other consoles              -      1      -      -      -    N/M
                             ----------------------------------
          Total Consoles       467    793    360    194    514     10%

     PC                         91    148    104     66     86    (5%)

     PSP                        45    120     54     37     64     42%
     Nintendo DS                 8     36     11      8     14     75%
     Game Boy Advance            7     35      8      7      8     14%
     Cellular Handsets           2      1     15     33     35   1650%
                             ----------------------------------
         Total Mobility         62    192     88     85    121     95%

     Co-publishing and
      Distribution              32     99     52     42     39     22%

     Subscription Services      14     16     17     16     15      7%
     Licensing, Advertising
      & Other                    9     22     20     10      9      -
                             ----------------------------------
        Total Internet
         Services, Licensing
         & Other                23     38     37     26     24      4%

                             ----------------------------------
          Net Revenue          675  1,270    641    413    784     16%
                             ----------------------------------

PLATFORM REVENUE MIX - as a
 % of Net Revenue
     Sony PlayStation 2         45%    39%    33%    24%    35%
     Xbox 360                    -      6%    10%    15%    21%
     Xbox                       20%    12%    10%     5%     8%
     Nintendo GameCube           4%     5%     3%     3%     2%
                             ----------------------------------
          Total Consoles        69%    62%    56%    47%    66%

     PC                         14%    12%    16%    16%    11%

     PSP                         7%     9%     9%     9%     8%
     Nintendo DS                 1%     3%     2%     2%     2%
     Game Boy Advance            1%     3%     1%     2%     1%
     Cellular Handsets           -      -      2%     8%     4%
                             ----------------------------------
         Total Mobility          9%    15%    14%    21%    15%

     Co-publishing and
      Distribution               5%     8%     8%    10%     5%

     Subscription Services       2%     1%     3%     4%     2%
     Licensing, Advertising
      & Other                    1%     2%     3%     2%     1%
                             ----------------------------------
          Total Internet
           Services,
           Licensing & Other     3%     3%     6%     6%     3%

                             ----------------------------------
          Net Revenue          100%   100%   100%   100%   100%
                             ----------------------------------


                ELECTRONIC ARTS INC. AND SUBSIDIARIES
  Unaudited Supplemental Financial Information and Business Metrics
    (in millions, except per share data, SKU count and Headcount)



                              Q2     Q3     Q4     Q1     Q2    YOY %
                             FY06   FY06   FY06   FY07   FY07  Change
                            ------ ------ ------ ------ ------ -------
Platform SKU Release Mix
   Sony PlayStation 2           9      8      8      2      8    (11%)
   Xbox 360                     -      5      2      2      7     N/M
   Xbox                         9      8      8      2      7    (22%)
   Nintendo GameCube            6      5      1      1      2    (67%)
                            ----------------------------------
         Total Consoles        24     26     19      7     24       -

   PC                           6      7      7      5      6       -

   PSP                          3      8      2      2      9     200%
   Nintendo DS                  2      5      1      1      2       -
   Game Boy Advance             2      3      -      1      2       -
                            ----------------------------------
        Total Mobility          7     16      3      4     13      86%

                            ----------------------------------
        Total SKUs             37     49     29     16     43      16%
                            ----------------------------------




                ELECTRONIC ARTS INC. AND SUBSIDIARIES
         Unaudited Supplemental Fact Sheet for Q2 Fiscal 2007



Q2 Product Releases                              Platform

 --  FIFA 07                                     PlayStation(R)2
 --  Madden NFL 07                               PlayStation 2
 --  Madden NFL 07 Hall of Fame Edition          PlayStation 2
 --  NASCAR 07                                   PlayStation 2
 --  NBA Live 07                                 PlayStation 2
 --  NCAA(R) Football 07                         PlayStation 2
 --  NHL(R) 07                                   PlayStation 2
 --  Tiger Woods PGA TOUR(R) 07                  PlayStation 2
 --  Madden NFL 07                               XBOX 360(TM)
 --  Madden NFL 07 Hall of Fame Edition          XBOX 360
 --  NBA Live 07                                 XBOX 360
 --  NCAA Football 07                            XBOX 360
 --  NHL 07                                      XBOX 360
 --  The Godfather(TM) The Game                  XBOX 360
 --  The Lord of the Rings(TM), The Battle for   XBOX 360
      Middle-earth(TM) II
 --  FIFA 07                                     Xbox(R)
 --  Madden NFL 07                               Xbox
 --  NASCAR 07                                   Xbox
 --  NBA Live 07                                 Xbox
 --  NCAA Football 07                            Xbox
 --  NHL 07                                      Xbox
 --  Tiger Woods PGA TOUR 07                     Xbox
 --  FIFA 07                                     Nintendo GameCube(TM)
 --  Madden NFL 07                               Nintendo GameCube
 --  FIFA 07                                     PC
 --  Madden NFL 07                               PC
 --  NBA Live 07                                 PC
 --  NHL 07                                      PC
 --  The Sims(TM) 2: Glamour Life Stuff          PC
 --  Tiger Woods PGA TOUR 07                     PC
 --  Def Jam(R) Fight for NY(TM): The Takeover   PSP(R)
 --  FIFA 07                                     PSP
 --  Madden NFL 07                               PSP
 --  NASCAR 07                                   PSP
 --  NBA Live 07                                 PSP
 --  NCAA Football 07                            PSP
 --  NHL 07                                      PSP
 --  The Godfather(TM) Mob Wars                  PSP
 --  Tiger Woods PGA TOUR 07                     PSP
 --  FIFA 07                                     Nintendo DS(TM)
 --  Madden NFL 07                               Nintendo DS
 --  FIFA 07                                     Game Boy(R) Advance
 --  Madden NFL 07                               Game Boy Advance
 --  Def Jam Fight for NY                        Cellular Handsets
 --  EA Sports FIFA Street 2                     Cellular Handsets
 --  EA Sports Madden NFL 07                     Cellular Handsets
 --  Sim City                                    Cellular Handsets
 --  Tetris Mania                                Cellular Handsets
 --  Mahjong                                     iPod(R)
 --  Mini-Golf                                   iPod
 --  Tetris                                      iPod


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SOURCE: Electronic Arts Inc.

Electronic Arts Inc.
Tricia Gugler, 650-628-7327
(Director, Investor Relations)
Jeff Brown, 650-628-7922
(Vice President, Corporate Communications)


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