May 8, 2007

EA Reports Fourth Quarter and Fiscal Year 2007 Results

Harry Potter to Launch Worldwide on Seven Platforms on June 25, 2007 Fifteen Games Based on Wholly Owned Properties Planned for Fiscal 2008

REDWOOD CITY, Calif., May 08, 2007 (BUSINESS WIRE) -- Electronic Arts (NASDAQ:ERTS) today announced preliminary financial results for its fiscal fourth quarter and fiscal year ended March 31, 2007.

Fiscal Fourth Quarter Results (comparisons are to the quarter ended March 31, 2006)

Net revenue for the fourth quarter was $613 million, down four percent as compared with $641 million for the prior year primarily due to the transition to next generation systems. Sales were driven by Command & Conquer 3 Tiberium Wars, Need for Speed Carbon, DEF JAM: ICON and The Sims 2 Seasons.

Gross profit for the quarter was $378 million, down five percent year-over-year. Net loss for the quarter was $25 million as compared with a net loss of $16 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 an after-tax stock-based compensation charge of $24 million, or $0.08 per share, in the fourth quarter. Diluted loss per share was $0.08 as compared with $0.05 for the prior year.

Non-GAAP net income was $19 million as compared with $43 million a year ago. Non-GAAP diluted earnings per share were $0.06 as compared with $0.14 for the prior year. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

Full Year Results

Net revenue for the fiscal year ended March 31, 2007 was $3.091 billion, up five percent as compared with $2.951 billion for the prior year. Seven titles sold more than three million copies: Madden NFL 07, Need for Speed Carbon, FIFA 07, The Sims 2 Pets, The Sims 2, Need for Speed Most Wanted and 2006 FIFA World Cup.

Gross profit for the year was $1.879 billion, up six percent year-over-year. Net income for the year was $76 million as compared with $236 million for the prior year. The Company incurred an after-tax stock-based compensation charge of $107 million, or $0.34 per share, for the year. Diluted earnings per share were $0.24 as compared with $0.75 for the prior year.

Non-GAAP net income was $247 million as compared with $301 million a year ago. Non-GAAP diluted earnings per share were $0.78 as compared with $0.96 for the prior year. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

Trailing-twelve-month operating cash flow was $397 million as compared with $596 million a year ago. The Company ended the quarter with cash, short-term investments and marketable equity securities of $2.976 billion.

"EA has a powerful set of franchises, strong brands and great talent," said John Riccitiello, Chief Executive Officer. "It is a great honor to rejoin this team and have the opportunity to build on its success."

"We have a strong lineup for the year ahead," said Warren Jenson, Chief Financial and Administrative Officer. "We expect to launch more than fifteen games based on wholly owned properties - including Medal of Honor Airborne, Army of Two, Boogie, MySims, Battlefield Bad Company*, SKATE and Need for Speed."

Highlights for the Year (comparisons are to the fiscal year ended March 31, 2006)

-- Net revenue: North America - up five percent to $1.666 billion; Europe - up seven percent to $1.261 billion; Asia - down 15 percent to $164 million. Movements in foreign currency rates positively impacted net revenue by $53 million, or two percent.

-- Mobility-based revenue, which includes handhelds and cellular handsets, was $540 million - up 37 percent. The increase is primarily a result of a full year of cellular handset revenue from the acquisition of JAMDAT Mobile and sales growth on the Nintendo DS.

-- Digital revenue was a record $127 million - up 47 percent year-over-year.

-- Club Pogo surpassed 1.5 million paying subscribers - up 23 percent year-over-year.

-- Madden NFL 07 was the industry's most popular game of 2006 in North America and was EA's top seller for the fiscal year. Need for Speed Carbon sold over 8.5 million copies - making it EA's second-best-performing title.

-- Titles from The Sims franchise sold 22 million copies in the year - with The Sims 2 Pets selling 5.6 million copies and The Sims 2 selling 3.9 million copies.

-- EA completed five acquisitions during the year - Digital Illusions, Mythic Entertainment, Headgate Studios, Phenomic and SingShot.

-- EA Partners signed agreements to bring Rock Band, Mercenaries 2: World in Flames and Hellgate: London to consumers.

-- EA made a 19 percent equity investment in Neowiz which closed in April, 2007.

Deferred Net Revenue Recognition For Certain Online-Enabled Packaged Goods

The Company reiterated that starting in fiscal year 2008, it will begin recognizing net revenue associated with certain online-enabled packaged goods games over the estimated hosting service period. As a result, the Company anticipates that a significant amount of net revenue that otherwise would have been recognized in fiscal 2008 will be recognized in fiscal 2009.

Business Outlook

The following forward-looking statements, as well as those made above, reflect expectations as of May 8, 2007. Results may be materially different and are affected by many factors, such as: consumer demand for next-generation consoles and the ability of the console manufacturers to produce an adequate supply of consoles to meet that demand; the popular appeal of EA's products; development delays on EA's products; changes in foreign exchange rates; the overall global economy; 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 Year Expectations - Ending March 31, 2008

-- Net revenue is expected to be between $3.1 and $3.4 billion.

-- Non-GAAP net revenue is expected to be between $3.6 and $3.8 billion.

-- GAAP diluted loss per share is expected to be between ($0.77) and ($0.23).

-- Non-GAAP diluted earnings per share are expected to be between $0.90 and $1.20. Expected non-GAAP diluted earnings per share exclude the following items from expected GAAP diluted loss per share: approximately $0.98 to $1.23 for changes in deferred net revenue related to packaged goods and digital content; approximately $0.31 of estimated stock-based compensation; approximately $0.13 of amortization of intangible assets; and approximately $0.02 of estimated restructuring charges.

Fiscal First Quarter Expectations - Ending June 30, 2007

-- Net revenue is expected to be between $300 and $360 million.

-- Non-GAAP net revenue is expected to be between $350 and $400 million.

-- GAAP diluted loss per share is expected to be between ($0.66) and ($0.56).

-- Non-GAAP diluted loss per share is expected to be between ($0.40) and ($0.34). Expected non-GAAP loss per share excludes the following items from expected GAAP diluted loss per share: approximately $0.10 to $0.14 for changes in deferred net revenue related to packaged goods and digital content; approximately $0.08 of estimated stock-based compensation; and approximately $0.04 of amortization of intangible assets.

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 fourth quarter and fiscal year ended March 31, 2007 and 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) 946-0742, access code 220497, or via webcast: http://investor.ea.com.

A dial-in replay of the conference call will be provided until May 15, 2007 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 gross profit, 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 consolidated statement of operations:

-- Acquired in-process technology

-- Amortization of intangibles

-- Certain litigation expenses

-- 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)

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.

Beginning with the release of its first quarter results for fiscal 2008, Electronic Arts intends, on a prospective basis, to reflect the change in its deferred net revenue related to certain online-enabled packaged goods games and digital content in its non-GAAP financial measures, including non-GAAP net revenue.

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 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 123®, "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.

Change in Deferred Net Revenue - Packaged Goods and Digital Content. Beginning in fiscal 2008, Electronic Arts will no longer be able to objectively determine the fair value of the online hosting services included in certain of its packaged goods games. As a result, the Company will recognize the revenue from the sale of these games over the estimated online service period. Although Electronic Arts will defer the recognition of a significant portion of its net revenue as a result of this change, there will be no adverse impact to its operating cash flow. Internally, Electronic Arts' management intends to reflect the change in its deferred net revenue related to packaged goods games and digital content in its non-GAAP financial measures when evaluating the Company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. The Company believes that reflecting the change in deferred net revenue in its operating results is important to facilitate an understanding of the cash characteristics of its business, as well as comparisons to prior periods during which the Company's accounting policies did not result in the deferral of significant amounts of net revenue related to online-enabled packaged goods.

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 headings "Business Outlook" and "Deferred Revenue Recognition For Certain Online-Enabled Packaged Goods" 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 consumer demand for, and the availability of an adequate supply of 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 2008; 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 December 31, 2006. These forward-looking statements speak only as of May 8, 2007. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements, including those made under the "Business Outlook" and "Deferred Revenue Recognition For Certain Online-Enabled Packaged Goods" headings. 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2007. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2007.

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 video game 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 2007, EA posted revenue of $3.09 billion and had 24 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.

*Battlefield Bad Company is a working title. 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 Twelve Months Ended
                                    March 31,           March 31,
                                ------------------ -------------------
                                  2007      2006     2007     2006 (a)
                                ---------- ------- ---------- --------
Net revenue                        $  613  $  641     $3,091   $2,951
Cost of goods sold                    235     244      1,212    1,181
                                ---------- ------- ---------- --------
Gross profit                          378     397      1,879    1,770

Operating expenses:
   Marketing and sales                116     102        466      431
   General and administrative          66      54        288      215
   Research and development           257     188      1,041      758
   Amortization of intangibles          7       4         27        7
   Acquired in-process
    technology                          -       7          3        8
   Restructuring charges                3      17         15       26
                                ---------- ------- ---------- --------
      Total operating expenses        449     372      1,840    1,445
                                ---------- ------- ---------- --------

Operating income (loss)               (71)     25         39      325
Interest and other income, net         30      14         99       64
                                ---------- ------- ---------- --------

Income (loss) before provision
 for (benefit from) income
 taxes and minority interest          (41)     39        138      389
Provision for (benefit from)
 income taxes                         (16)     54         66      147
                                ---------- ------- ---------- --------

Income (loss) before minority
 interest                             (25)    (15)        72      242
Minority interest                       -      (1)         4       (6)
                                ---------- ------- ---------- --------

Net income (loss)                  $  (25) $  (16)    $   76   $  236
                                ========== ======= ========== ========

Earnings (loss) per share:
   Basic                           $(0.08) $(0.05)    $ 0.25   $ 0.78
   Diluted                         $(0.08) $(0.05)    $ 0.24   $ 0.75

Number of shares used in
 computation:
   Basic                              310     304        308      304
   Diluted                            310     304        317      314


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

The following tables reconcile 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 and non-GAAP diluted earnings per share.
 The Company's non-GAAP net income and non-GAAP diluted earnings per
 share exclude acquired in-process technology, amortization of
 intangibles, certain litigation expenses, restructuring charges, and
 stock-based compensation. In addition, the Company's non-GAAP net
 income and non-GAAP diluted earnings 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 Twelve Months Ended
                                    March 31,           March 31,
                                ------------------ -------------------
                                  2007      2006     2007      2006
                                ---------- ------- ---------- --------
Net income (loss)                  $  (25) $  (16)    $   76   $  236

   Change in deferred net
    revenue - packaged goods
    and digital content (b)
   Acquired in-process
    technology                          -       7          3        8
   Amortization of intangibles          7       4         27        7
   Certain litigation expenses          -      (1)         -        -
   COGS amortization of
    intangibles                         7       4         27        9
   Restructuring charges                3      17         15       26
   Stock-based compensation            28       2        133        3
   Income tax adjustments              (1)     26        (34)      12

                                ---------- ------- ---------- --------
Non-GAAP net income                $   19  $   43     $  247   $  301
                                ========== ======= ========== ========

Non-GAAP diluted earnings per
 share                             $ 0.06  $ 0.14     $ 0.78   $ 0.96
Number of shares used in non-
 GAAP diluted earnings per
 share computation                    319     312        317      314

(a) Derived from audited financial statements.

(b) Effective April 1, 2007, the Company intends, on a prospective
 basis, to reflect the change in deferred net revenue - packaged goods
 and digital content in its non-GAAP financial measures.

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


                                                   March 31, March 31,
                                                     2007    2006 (a)
                                                   --------- ---------
ASSETS

Current assets:
   Cash, cash equivalents and short-term
    investments                                      $2,635    $2,272
   Marketable equity securities                         341       160
   Receivables, net of allowances of $214 and
    $232, respectively                                  256       199
   Inventories                                           62        61
   Deferred income taxes, net                            84        86
   Other current assets                                 219       234
                                                   --------- ---------
      Total current assets                            3,597     3,012

Property and equipment, net                             484       392
Investment in affiliates                                  6        11
Goodwill                                                734       647
Other intangibles, net                                  210       232
Deferred income taxes, net                               25         -
Other assets                                             90        92
                                                   --------- ---------
   TOTAL ASSETS                                      $5,146    $4,386
                                                   ========= =========

LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS'
 EQUITY

Current liabilities:
   Accounts payable                                  $  180    $  163
   Accrued and other current liabilities                823       697
   Deferred net revenue - packaged goods and
    digital content                                      23         9
                                                   --------- ---------
      Total current liabilities                       1,026       869

Deferred income taxes, net                                8        29
Other liabilities                                        80        68
                                                   --------- ---------
      Total liabilities                               1,114       966

Minority interest                                         -        12

Stockholders' equity:
   Common stock                                           3         3
   Paid-in capital                                    1,412     1,081
   Retained earnings                                  2,323     2,241
   Accumulated other comprehensive income               294        83
                                                   --------- ---------
      Total stockholders' equity                      4,032     3,408
                                                   --------- ---------
   TOTAL LIABILITIES, MINORITY INTEREST AND
    STOCKHOLDERS' EQUITY                             $5,146    $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 Twelve Months Ended
                                    March 31,           March 31,
                                ------------------ -------------------
                                  2007      2006     2007     2006 (a)
                                ---------- ------- ---------- --------
OPERATING ACTIVITIES
 Net income (loss)                 $  (25) $  (16)   $    76   $  236
 Adjustments to reconcile net
  income (loss) to net cash
  provided by operating
  activities:
   Depreciation, amortization
    and accretion                      37      27        147       95
   Stock-based compensation            28       2        133        3
   Minority interest                    -       1         (4)       6
   Realized net losses on
    investments and sale of
    property and equipment              -       7          1        7
   Tax benefit from exercise of
    stock options                       -      16          -      133
   Acquired in-process
    technology                          -       7          3        8
   Change in assets and
    liabilities:
     Receivables, net                 320     347        (18)     104
     Inventories                       19       8         12       (3)
     Other assets                     (17)    (36)        46      (71)
     Accounts payable                  (3)    (18)        (2)      31
     Accrued and other
      liabilities                    (135)    (11)        43       30
     Deferred income taxes, net       (19)      5        (54)       8
     Deferred net revenue -
      packaged goods and
      digital content                   9      (2)        14        9
                                ---------- ------- ---------- --------
Net cash provided by operating
 activities                           214     337        397      596
                                ---------- ------- ---------- --------

INVESTING ACTIVITIES
   Capital expenditures               (60)    (36)      (178)    (123)
   Proceeds from sale of
    property and equipment              -       2          2        2
   Proceeds from sale of
    marketable equity
    securities                          -       -          -        4
   Purchase of investment in
    affiliates                          -       -         (1)      (2)
   Proceeds from sale of
    investment in affiliate             -       -          -        2
   Proceeds from maturities and
    sales of short-term
    investments                       404     479      1,315    1,427
   Purchase of short-term
    investments                      (434)   (408)    (1,522)    (755)
   Acquisition of subsidiaries,
    net of cash acquired               (9)   (658)      (103)    (661)
   Other investing activities           -       -          -       (2)
                                ---------- ------- ---------- --------
Net cash used in investing
 activities                           (99)   (621)      (487)    (108)
                                ---------- ------- ---------- --------

FINANCING ACTIVITIES
   Proceeds from issuance of
    common stock                       35      55        168      206
   Excess tax benefit from
    stock-based compensation            9       -         36        -
   Repayment of note assumed in
    connection with acquisition         -       -        (14)       -
   Repurchase and retirement of
    common stock                        -       -          -     (709)
                                ---------- ------- ---------- --------
Net cash provided by (used in)
 financing activities                  44      55        190     (503)
                                ---------- ------- ---------- --------

Effect of foreign exchange on
 cash and cash equivalents             13       9         29      (13)
                                ---------- ------- ---------- --------
Increase (decrease) in cash and
 cash equivalents                     172    (220)       129      (28)
Beginning cash and cash
 equivalents                        1,199   1,462      1,242    1,270
                                ---------- ------- ---------- --------
Ending cash and cash
 equivalents                        1,371   1,242      1,371    1,242
Short-term investments              1,264   1,030      1,264    1,030
                                ---------- ------- ---------- --------
Ending cash, cash equivalents
 and short-term investments        $2,635  $2,272    $ 2,635   $2,272
                                ========== ======= ========== ========

(a) Derived from audited financial statements.

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


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

CONSOLIDATED FINANCIAL
 DATA
  Net revenue                641     413    784  1,281     613    (4%)
  Net revenue - trailing
   twelve months ("TTM")   2,951   2,999  3,108  3,119   3,091      5%


  Gross profit               397     245    445    811     378    (5%)
    Gross margin - % of
     net revenue              62%     59%    57%    63%     62%
  Gross profit - TTM       1,770   1,801  1,855  1,898   1,879      6%
    Gross margin - TTM %
     of net revenue           60%     60%    60%    61%     61%


  Operating income (loss)     25    (119)    14    215     (71) (384%)
    Operating income
     (loss) margin - % of
     net revenue               4%   (29%)     2%    17%   (12%)
  Operating income - TTM     325     302    267    135      39   (88%)
    Operating income
     margin - TTM % of
     net revenue              11%     10%     9%     4%      1%


   Net income (loss)         (16)    (81)    22    160     (25)  (56%)
     Diluted earnings
      (loss) per share    ($0.05) ($0.26) $0.07  $0.50  ($0.08)  (60%)
   Net income - TTM          236     213    184     85      76   (68%)
     Diluted earnings per
      share - TTM          $0.75   $0.68  $0.59  $0.26   $0.24   (68%)


CASH FLOW DATA
  Operating cash flow        337     (38)    (6)   227     214   (36%)
  Operating cash flow -
   TTM                       596     589    571    520     397   (33%)

  Capital expenditures        36      38     48     32      60     67%
  Capital expenditures -
   TTM                       123     128    153    154     178     45%


BALANCE SHEET DATA
  Cash, cash equivalents
   and short-term
   investments             2,272   2,231  2,172  2,411   2,635     16%
  Marketable equity
   securities                160     166    204    235     341    113%
  Receivables, net           199      41    267    551     256     29%
  Inventories                 61      59     67     72      62      2%
  Deferred net revenue -
   packaged goods and
   digital content             9       6      6     14      23    156%


STOCK-BASED COMPENSATION
  Cost of goods sold           -       -      1      -       1
  Marketing and sales          -       5      4      5       3
  General and
   administrative              1      11      9     10       7
  Research and
   development                 1      21     19     20      17
                          ------- ------- ------ ------ -------
    Total Stock-Based
     Compensation              2      37     33     35      28


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


OTHER
  Employees                7,175   7,116  7,517  7,761   7,893     10%
  Diluted weighted-
   average shares            304     306    315    319     310


GEOGRAPHIC REVENUE MIX
  North America              340     209    512    637     307   (10%)
  International              301     204    272    644     306      2%

  Europe                     262     169    245    583     264      1%
  Asia                        39      35     27     61      42      8%
                          ------- ------- ------ ------ -------
    Net Revenue              641     413    784  1,281     613    (4%)


GEOGRAPHIC REVENUE MIX -
 as a % of Net Revenue
  North America               53%     51%    65%    50%     50%
  International               47%     49%    35%    50%     50%

  Europe                      41%     41%    31%    45%     43%
  Asia                         6%      8%     4%     5%      7%
                          ------- ------- ------ ------ -------
    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)


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

PLATFORM REVENUE MIX
  PlayStation 2              211      99    269    400     117   (45%)
  Xbox 360                    64      61    166    172      82     28%
  PLAYSTATION 3                -       -      -     41      52    N/M
  Wii                          -       -      -     29      36    N/M
  Xbox                        68      23     65     62       7   (90%)
  Nintendo GameCube           17      11     14     32       4   (76%)
                          ------- ------- ------ ------ -------
    Total Consoles           360     194    514    736     298   (17%)

  PC                         104      66     86    218     128     23%

  PSP                         54      37     64    118      39   (28%)
  Cellular Handsets           15      33     35     35      36    140%
  Nintendo DS                 11       8     14     55      27    145%
  Game Boy Advance             8       7      8     21       3   (63%)
                          ------- ------- ------ ------ -------
    Total Mobility            88      85    121    229     105     19%

  Co-publishing and
   Distribution               52      42     39     49      45   (13%)

  Subscription Services       17      16     15     24      24     41%
  Licensing, Advertising
   & Other                    20      10      9     25      13   (35%)
                          ------- ------- ------ ------ -------
    Total Internet
     Services, Licensing
     & Other                  37      26     24     49      37      -

                          ------- ------- ------ ------ -------
    Net Revenue              641     413    784  1,281     613    (4%)
                          ======= ======= ====== ====== =======

PLATFORM REVENUE MIX - as
 a % of Net Revenue
  PlayStation 2               33%     24%    35%    31%     19%
  Xbox 360                    10%     15%    21%    13%     13%
  PLAYSTATION 3                -       -      -      3%      9%
  Wii                          -       -      -      2%      6%
  Xbox                        10%      5%     8%     5%      1%
  Nintendo GameCube            3%      3%     2%     3%      1%
                          ------- ------- ------ ------ -------
    Total Consoles            56%     47%    66%    57%     49%

  PC                          16%     16%    11%    17%     21%

  PSP                          9%      9%     8%     9%      6%
  Cellular Handsets            2%      8%     4%     3%      6%
  Nintendo DS                  2%      2%     2%     4%      5%
  Game Boy Advance             1%      2%     1%     2%      -
                          ------- ------- ------ ------ -------
    Total Mobility            14%     21%    15%    18%     17%

  Co-publishing and
   Distribution                8%     10%     5%     4%      7%

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

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



Platform SKU Release Mix
  PlayStation 2                8       2      8      6       6   (25%)
  Xbox 360                     2       2      7      5       4    100%
  PLAYSTATION 3                -       -      -      4       3    N/M
  Wii                          -       -      -      2       4    N/M
  Xbox                         8       2      7      2       -  (100%)
  Nintendo GameCube            1       1      2      2       -  (100%)
                          ------- ------- ------ ------ -------
    Total Consoles            19       7     24     21      17   (11%)

  PC                           7       5      6      9       6   (14%)

  PSP                          2       2      9      5       2      -
  Nintendo DS                  1       1      2      3       2    100%
  Game Boy Advance             -       1      2      3       -    N/M
                          ------- ------- ------ ------ -------
    Total Mobility             3       4     13     11       4     33%

                          ------- ------- ------ ------ -------
    Total SKUs                29      16     43     41      27    (7%)
                          ======= ======= ====== ====== =======


                ELECTRONIC ARTS INC. AND SUBSIDIARIES
         Unaudited Supplemental Fact Sheet for Q4 Fiscal 2007


Q4 Product Releases (i)                                Platform

   -- Arena Football(TM): Road to Glory                PlayStation(R)2
   -- Burnout(TM) Dominator                            PlayStation 2
   -- UEFA Champions League(TM) 2006-2007              PlayStation 2
   -- Medal of Honor Vanguard(TM)                      PlayStation 2
   -- MVP(TM) 07 NCAA(R) Baseball                      PlayStation 2
   -- NCAA(R) March Madness(R) 07                      PlayStation 2
   -- UEFA Champions League 2006-2007                  Xbox 360(TM)
   -- DEF JAM: ICON(TM)                                Xbox 360
   -- NBA STREET Homecourt                             Xbox 360
   -- NCAA March Madness 07                            Xbox 360
   -- DEF JAM: ICON                                    PLAYSTATION(R)3
   -- NBA STREET Homecourt                             PLAYSTATION 3
   -- The Godfather(R) The Don's Edition               PLAYSTATION 3
   -- Medal of Honor Vanguard                          Wii(TM)
   -- SSX(TM) Blur                                     Wii
   -- The Godfather BlackHand Edition                  Wii
   -- Tiger Woods PGA TOUR(R) 07                       Wii
   -- Battlefield 2142(TM): Northern Strike            PC
   -- UEFA Champions League 2006-2007                  PC
   -- Command & Conquer 3 Tiberium Wars(TM)            PC
   -- Command & Conquer 3 Tiberium Wars: Kane Edition  PC
   -- The Sims(TM) 2 Seasons                           PC
   -- The Sims Life Stories                            PC
   -- Burnout Dominator                                PSP(R)
   -- UEFA Champions League 2006-2007                  PSP
   -- Bejeweled(R)                                     Cellular
                                                        Handsets
   -- EA SPORTS(TM) MVP Baseball(TM) 07                Cellular
                                                        Handsets
   -- EA(TM) Pool                                      Cellular
                                                        Handsets
   -- NASCAR(R) 07                                     Cellular
                                                        Handsets
   -- Pictionary(R)                                    Cellular
                                                        Handsets
   -- Tetris(R)                                        Cellular
                                                        Handsets
   -- Tiger Woods PGA TOUR 07                          Cellular
                                                        Handsets
   -- UEFA Champions League 2006-2007                  Cellular
                                                        Handsets
   -- Pogo(TM) Island                                  Nintendo DS(TM)
   -- Theme Park(TM)                                   Nintendo DS

      Co-publishing, Distribution, and International
       only (ii)

   -- FIFA Manager 07 Extra Time (iii)                 PC
   -- SimCity(TM) (iii)                                Nintendo DS

   (i) Cellular handsets are not included in SKU count.

   (ii) Co-publishing, distribution, and international only are not
    included in SKU count.

   (iii) International only

   All trademarks are the property of their respective owners.

                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 gross profit, 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 gross profit, non-
 GAAP operating income (loss), non-GAAP net income (loss), and non-
 GAAP earnings (loss) per share. The Company's non-GAAP gross profit
 excludes COGS amortization of intangibles and stock-based
 compensation. The Company's non-GAAP operating income (loss), non-
 GAAP net income (loss), and non-GAAP diluted earnings (loss) per
 share exclude acquired in-process technology, amortization of
 intangibles, certain litigation expenses, 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.


                          Q4      Q1      Q2      Q3      Q4    YOY %
                          FY06    FY07    FY07    FY07    FY07  Change
                        ------- ------- ------- ------- ------- ------
QUARTERLY
 RECONCILIATION OF
 RESULTS
  GAAP net revenue        $641    $413    $784  $1,281    $613    (4%)
    Change in deferred
     net revenue -
     packaged goods and
     digital content
     (a)
                        ------- ------- ------- ------- -------

  Non-GAAP net revenue
   (a)                    $641    $413    $784  $1,281    $613    (4%)
                        ======= ======= ======= ======= =======


  GAAP gross profit       $397    $245    $445    $811    $378    (5%)
    Change in deferred
     net revenue -
     packaged goods and
     digital content
     (a)
    COGS amortization
     of intangibles          4       6       7       7       7
    Stock-based
     compensation            -       -       1       -       1
                        ------- ------- ------- ------- -------

  Non-GAAP gross profit   $401    $251    $453    $818    $386    (4%)
                        ======= ======= ======= ======= =======
    Non-GAAP gross
     margin - % of non-
     GAAP net revenue       63%     61%     58%     64%     63%


  GAAP operating income
   (loss)                  $25   $(119)    $14    $215    $(71) (384%)
    Change in deferred
     net revenue -
     packaged goods and
     digital content
     (a)
    Acquired in-process
     technology              7       -       2       1       -
    Amortization of
     intangibles             4       6       7       7       7
    Certain litigation
     expenses               (1)      -       -       -       -
    COGS amortization
     of intangibles          4       6       7       7       7
    Restructuring
     charges                17       6       4       2       3
    Stock-based
     compensation            2      37      33      35      28
                        ------- ------- ------- ------- -------

  Non-GAAP operating
   income (loss)           $58    $(64)    $67    $267    $(26) (145%)
                        ======= ======= ======= ======= =======
    Non-GAAP operating
     income (loss)
     margin - % of non-
     GAAP net revenue        9%   (15%)      9%     21%    (4%)


  GAAP net income
   (loss)                 $(16)   $(81)    $22    $160    $(25)  (56%)
    Change in deferred
     net revenue -
     packaged goods and
     digital content
     (a)
    Acquired in-process
     technology              7       -       2       1       -
    Amortization of
     intangibles             4       6       7       7       7
    Certain litigation
     expenses               (1)      -       -       -       -
    COGS amortization
     of intangibles          4       6       7       7       7
    Restructuring
     charges                17       6       4       2       3
    Stock-based
     compensation            2      37      33      35      28
    Income tax
     adjustments            26     (12)    (10)    (11)     (1)
                        ------- ------- ------- ------- -------

  Non-GAAP net income
   (loss)                  $43    $(38)    $65    $201     $19   (56%)
                        ======= ======= ======= ======= =======
    Non-GAAP net income
     (loss) margin - %
     of non-GAAP net
     revenue                 7%    (9%)      8%     16%      3%

  GAAP diluted earnings
   (loss) per share     ($0.05) ($0.26)  $0.07   $0.50  ($0.08)  (60%)
  Non-GAAP diluted
   earnings (loss) per
   share                 $0.14  ($0.12)  $0.21   $0.63   $0.06   (57%)
    Shares used in non-
     GAAP diluted
     earnings (loss)
     per share
     computation           312     306     315     319     319


(a) Effective April 1, 2007, the Company intends, on a prospective
 basis, to reflect the change in deferred net revenue - packaged goods
 and digital content in its non-GAAP financial measures.


                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 gross profit, 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 gross profit, non-
 GAAP operating income (loss), non-GAAP net income (loss), and non-
 GAAP earnings (loss) per share. The Company's non-GAAP gross profit
 excludes COGS amortization of intangibles and stock-based
 compensation. The Company's non-GAAP operating income (loss), non-
 GAAP net income (loss), and non-GAAP diluted earnings (loss) per
 share exclude acquired in-process technology, amortization of
 intangibles, certain litigation expenses, 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.


                          Q4      Q1      Q2      Q3      Q4    YOY %
                         FY06    FY07    FY07    FY07    FY07   Change
                        ------- ------- ------- ------- ------- ------
TRAILING TWELVE MONTH
 RECONCILIATION OF
 RESULTS
  GAAP net revenue      $2,951  $2,999  $3,108  $3,119  $3,091      5%
    Change in deferred
     net revenue -
     packaged goods and
     digital content
     (a)
                        ------- ------- ------- ------- -------

  Non-GAAP net revenue
   (a)                  $2,951  $2,999  $3,108  $3,119  $3,091      5%
                        ======= ======= ======= ======= =======


  GAAP gross profit     $1,770  $1,801  $1,855  $1,898  $1,879      6%
    Change in deferred
     net revenue -
     packaged goods and
     digital content
     (a)
    COGS amortization
     of intangibles          9      14      19      24      27
    Stock-based
     compensation            -       -       1       1       2
                        ------- ------- ------- ------- -------

  Non-GAAP gross profit $1,779  $1,815  $1,875  $1,923  $1,908      7%
                        ======= ======= ======= ======= =======
    Non-GAAP gross
     profit - % of non-
     GAAP net revenue       60%     61%     60%     62%     62%


  GAAP operating income   $325    $302    $267    $135     $39   (88%)
    Change in deferred
     net revenue -
     packaged goods and
     digital content
     (a)
    Acquired in-process
     technology              8       7       9      10       3
    Amortization of
     intangibles             7      12      18      24      27
    Certain litigation
     expenses                -       -      (1)     (1)      -
    COGS amortization
     of intangibles          9      14      19      24      27
    Restructuring
     charges                26      32      36      29      15
    Stock-based
     compensation            3      40      72     107     133
                        ------- ------- ------- ------- -------

  Non-GAAP operating
   income                 $378    $407    $420    $328    $244   (35%)
                        ======= ======= ======= ======= =======
    Non-GAAP operating
     income margin - %
     of non-GAAP net
     revenue                13%     14%     14%     11%      8%


  GAAP net income         $236    $213    $184     $85     $76   (68%)
    Change in deferred
     net revenue -
     packaged goods and
     digital content
     (a)
    Acquired in-process
     technology              8       7       9      10       3
    Amortization of
     intangibles             7      12      18      24      27
    Certain litigation
     expenses                -       -      (1)     (1)      -
    COGS amortization
     of intangibles          9      14      19      24      27
    Restructuring
     charges                26      32      36      29      15
    Stock-based
     compensation            3      40      72     107     133
    Income tax
     adjustments            12       1       1      (7)    (34)
                        ------- ------- ------- ------- -------

  Non-GAAP net income     $301    $319    $338    $271    $247   (18%)
                        ======= ======= ======= ======= =======
    Non-GAAP net income
     margin - % of non-
     GAAP net revenue       10%     11%     11%      9%      8%

  GAAP diluted earnings
   per share             $0.75   $0.68   $0.59   $0.26   $0.24   (68%)
  Non-GAAP diluted
   earnings per share    $0.96   $1.03   $1.09   $0.86   $0.78   (19%)


(a) Effective April 1, 2007, the Company intends, on a prospective
 basis, to reflect the change in deferred net revenue - packaged goods
 and digital content in its non-GAAP financial measures.


                ELECTRONIC ARTS INC. AND SUBSIDIARIES
 Unaudited Supplemental Non-GAAP Financial Information and Non-GAAP
                           Business Metrics
                 (in millions, except per share data)


                          Q4      Q1      Q2      Q3      Q4    YOY %
                         FY06    FY07    FY07    FY07    FY07   Change
                        ------- ------- ------- ------- ------- ------
CONSOLIDATED NON-GAAP
 FINANCIAL DATA (b)
  Non-GAAP net revenue     641     413     784   1,281     613    (4%)
  Non-GAAP net revenue
   - TTM                 2,951   2,999   3,108   3,119   3,091      5%


  Non-GAAP gross profit    401     251     453     818     386    (4%)
    Non-GAAP gross
     margin - % of non-
     GAAP net revenue       63%     61%     58%     64%     63%
  Non-GAAP gross profit
   - TTM                 1,779   1,815   1,875   1,923   1,908      7%
    Non-GAAP gross
     margin - TTM % of
     non-GAAP net
     revenue                60%     61%     60%     62%     62%


  Non-GAAP operating
   income (loss)            58     (64)     67     267     (26) (145%)
    Non-GAAP operating
     income (loss)
     margin - % of non-
     GAAP net revenue        9%   (15%)      9%     21%    (4%)
  Non-GAAP operating
   income - TTM            378     407     420     328     244   (35%)
    Non-GAAP operating
     income margin -
     TTM % of non-GAAP
     net revenue            13%     14%     14%     11%      8%


  Non-GAAP net income
   (loss)                   43     (38)     65     201      19   (56%)
    Non-GAAP diluted
     earnings (loss)
     per share           $0.14  ($0.12)  $0.21   $0.63   $0.06   (57%)
  Non-GAAP net income -
   TTM                     301     319     338     271     247   (18%)
    Non-GAAP diluted
     earnings per share
     - TTM               $0.96   $1.03   $1.09   $0.86   $0.78   (19%)


GAAP GEOGRAPHIC REVENUE
 MIX
  North America            340     209     512     637     307   (10%)
  International            301     204     272     644     306      2%

  Europe                   262     169     245     583     264      1%
  Asia                      39      35      27      61      42      8%
                        ---------------------------------------
    Net Revenue            641     413     784   1,281     613    (4%)


CHANGE IN DEFERRED NET
 REVENUE - PACKAGED
 GOODS AND DIGITAL
 CONTENT GEOGRAPHIC MIX
 (a)
  North America
  International

  Europe
  Asia
                        ---------------------------------------
    Change In Deferred
     Net Revenue -
     Packaged Goods and
     Digital Content


NON-GAAP GEOGRAPHIC
 REVENUE MIX
  North America            340     209     512     637     307   (10%)
  International            301     204     272     644     306      2%

  Europe                   262     169     245     583     264      1%
  Asia                      39      35      27      61      42      8%
                        ---------------------------------------
    Non-GAAP Net
     Revenue               641     413     784   1,281     613    (4%)


NON-GAAP GEOGRAPHIC
 REVENUE MIX
- as a % of Non-GAAP
 Net Revenue
  North America             53%     51%     65%     50%     50%
  International             47%     49%     35%     50%     50%

  Europe                    41%     41%     31%     45%     43%
  Asia                       6%      8%      4%      5%      7%
                        ---------------------------------------
    Non-GAAP Net
     Revenue               100%    100%    100%    100%    100%


(a) Effective April 1, 2007, the Company intends, on a prospective
 basis, to reflect the change in deferred net revenue - packaged goods
 and digital content in its non-GAAP financial measures.

(b) Refer to Unaudited Reconciliation of GAAP to Non-GAAP Results.

SOURCE: Electronic Arts Inc.

Electronic Arts
Tricia Gugler, 650-628-7327


Director, Investor Relations
Jeff Brown, 650-628-7922
Vice President, Corporate Communications


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Copyright 2014 Electronic Arts Inc.