July 31, 2012

Electronic Arts Reports Q1 FY13 Financial Results

Q1 Non-GAAP Net Revenue and EPS In-Line with Guidance, EPS Beats Consensus

Trailing Twelve Month Non-GAAP Digital Net Revenue a Record $1.3 Billion

EA announces $500 Million Share Repurchase

Battlefield 3 Premium Service Sold Over 1.3M Subscriptions To Date

Pre-Orders for Madden NFL 13 Up 25% Year-Over-Year

EA Signs Publishing Agreement with Nexon for FIFA Online 3 in Korea

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its first fiscal quarter ended June 30, 2012.

"We have established an unmatched diversity in our business with multiple brands performing across several channels, business models and geographies," said Chief Executive Officer John Riccitiello. "This allows us to drive profitable growth in a rapidly transforming marketplace for games."

"We had a solid first quarter and are reconfirming non-GAAP guidance of annual earnings per share growth of 30% at the midpoint of our guidance," said Interim Chief Financial Officer Ken Barker. "The $500 million stock buyback demonstrates our confidence in EA's future."

"We continue to make progress in our goal of becoming the leading digital entertainment company," said President of EA Labels Frank Gibeau. "Over the last twelve months, we generated over $1.3 billion in non-GAAP digital net revenue, and approximately two-thirds of our non-GAAP net revenue in the first fiscal quarter was in digital."

Selected Operating Highlights and Metrics:
*On a non-GAAP basis

EA and Nexon signed a publishing agreement for EA SPORTS™ FIFA Online 3, expected to debut in Korea later this fiscal year. FIFA World Class Soccer and EA SPORTS FIFA Online 2 generated more than $25 million* in digital net revenue in Asia in Q1.
FIFA Ultimate Team contributed over $30 million* in net digital revenue in the first quarter.
Battlefield 3™ Premium service sold over 1.3 million subscriptions to date, with all of the revenue deferred and set to be recognized in fiscal Q4.
SimCity™ Social launched on Facebook and currently has over ten million MAUs.
STAR WARS®: The Old Republic™ will move to a more accessible two-tiered pricing model in November. Players can chose between a $14.99 premium monthly subscription and a free-to-play model with some restrictions on content and advanced features. Players will be able to purchase upgrades with in-game currency.
EA's games and services for mobile phones and tablets have generated a 37% year-over-year increase in digital net revenue*.
Catalog continues to outperform expectations with Battlefield 3 and FIFA 12 together selling through over 2 million units in the first quarter.
Trailing twelve month non-GAAP digital net revenue a record $1.342 billion*.
Trailing twelve month operating cash flow of $307 million, a $30 million improvement from the prior quarter.
EA's Origin™ platform for downloading digital games and services has registered over 21 million users, including 9 million mobile users. Origin has signed agreements with 57 independent developers.
EA's new Executive Vice President, Chief Financial Officer Blake Jorgensen will join the Company in early September 2012.

Q1 Financial Highlights:

For the quarter, non-GAAP net revenue of $491 million was in line with our guidance of approximately $500 million. Non-GAAP diluted loss per share of ($0.41) was above the midpoint of our guidance of ($0.45) to ($0.40). Non-GAAP net revenue in Q1 fiscal 2013 was slightly lower compared to Q1 fiscal 2012 due to a reduction in distribution revenue in the quarter.


(in millions of $ except per share amounts)	Quarter Ended 6/30/12			Quarter Ended 6/30/11

Net Digital Revenue	$	342		$	232
Net Publishing Packaged Goods and Other Revenue		592			647
Net Distribution Packaged Goods Revenue		21			120
GAAP Total Net Revenue		955			999

Non-GAAP Net Digital Revenue	$	324		$	209
Non-GAAP Net Publishing Packaged Goods and Other Revenue		146			195
Non-GAAP Net Distribution Packaged Goods Revenue		21			120
Non-GAAP Total Net Revenue		491			524

GAAP Net Income	$	201		$	221
Non-GAAP Net Loss		(130	)		(123	)
GAAP Diluted Earnings Per Share		0.63			0.66
Non-GAAP Diluted Loss Per Share		(0.41	)		(0.37	)

Cash Used in Operations	$	(244	)	$	(274	)

Trailing Twelve Month (TTM) Financial Highlights:


(in millions of $ except per share amounts)	TTM Ended 6/30/12		TTM Ended 6/30/11

GAAP Net Revenue	$	4,099	$	3,773
GAAP Net Income (Loss)		56		(151	)
GAAP Diluted Earnings (Loss) Per Share		0.18		(0.47	)

Non-GAAP Net Revenue	$	4,153	$	3,813
Non-GAAP Net Income		277		188
Non-GAAP Diluted Earnings Per Share		0.80		0.57

Cash Flow from Operations	$	307	$	194

Q1 FY13 Digital Metrics:

(in millions)	Quarter Ended 6/30/12	Quarter Ended 6/30/11

GAAP Net Mobile Revenue	$69	$57
Non-GAAP Net Mobile Revenue	$78	$57
Monthly Active Users (MAU) in Social Games	41	32
Core Registered Users	234	125

Stock Repurchase Program

EA has announced that its Board of Directors has authorized a program to repurchase up to $500 million of EA's common stock.

Under the program, EA may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. EA is not obligated to repurchase any specific number of shares under the program and the repurchase program may be modified, suspended or discontinued at any time.

Business Outlook as of July 31, 2012

The following forward-looking statements, as well as those made above, reflect expectations as of July 31, 2012. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors, including: product development delays; competition in the industry; the health of the economy in the U.S. and abroad and the related impact on discretionary consumer spending; changes in anticipated costs; the financial impact of acquisitions by EA; the popular appeal of EA's products; EA's effective tax rate; and other factors detailed in this release and in EA's annual and quarterly SEC filings.

Fiscal Year 2013 Expectations — Ending March 31, 2013

GAAP net revenue is expected to be approximately $3.90 to $4.05 billion.
Non-GAAP net revenue is expected to be approximately $4.10 to $4.25 billion.
GAAP basic loss and diluted earnings per share is expected to be approximately ($0.17) to $0.05.
Non-GAAP diluted earnings per share is expected to be approximately $1.05 to $1.20.
For purposes of calculating fiscal year 2013 diluted earnings per share, the Company estimates a share count of 323 million, and 320 million shares for calculating loss per share.
Expected non-GAAP net income excludes the following from expected GAAP net income (loss):
- Non-GAAP net revenue is expected to be approximately $200 million higher than GAAP net revenue due to the impact of the change in deferred net revenue (packaged goods and digital content);
- Approximately $160 million of estimated stock-based compensation;
- Approximately $60 million of acquisition-related expenses;
- Approximately $35 million of restructuring charges;
- Approximately $20 million from the amortization of debt discount; and
- Non-GAAP tax expense is expected to be approximately $80 million to $100 million higher than GAAP tax expense.

Second Quarter Fiscal Year 2013 Expectations — Ending September 30, 2012

GAAP net revenue is expected to be approximately $650 to $700 million.
Non-GAAP net revenue is expected to be approximately $1.05 to $1.10 billion.
GAAP diluted loss or earnings per share is expected to be approximately ($1.43) to ($1.36).
Non-GAAP diluted earnings per share is expected to be approximately $0.07 to $0.12.
For purposes of calculating first quarter fiscal year 2013 diluted earnings per share, the Company estimates a share count of 322 million, and 319 million shares for calculating loss per share.
Expected non-GAAP net income excludes the following from expected GAAP net income (loss):
- Non-GAAP net revenue is expected to be approximately $400 million higher than GAAP net revenue due to the impact of the change in deferred net revenue (packaged goods and digital content);
- Approximately $40 million of estimated stock-based compensation;
- Approximately $20 million of acquisition-related expenses;
- Approximately $5 million of restructuring charges;
- Approximately $5 million from the amortization of debt discount; and
- Non-GAAP tax expense is expected to be $2 million to $7 million lower than GAAP tax expense.

Conference Call and Supporting Documents

Electronic Arts will host a conference call on July 31, 2012 at 2:00 pm PT (5:00 pm ET) to review its results for the first quarter ended June 30, 2012 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number: 773-799-3213 (domestic) or 888-677-1083 (international), using the password "EA" or via webcast at http://ir.ea.com.

EA will also post a slide presentation that accompanies the call at http://ir.ea.com.

A dial-in replay of the conference call will be provided until August 30, 2012 at the following number: 203-369-0099 (domestic) or 866-356-3373 (international). A webcast replay of the conference call will be available for one year at http://ir.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 net revenue, 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, as applicable in a given reporting period, from the Company's unaudited condensed consolidated statements of operations:

Acquisition-related expenses
Amortization of debt discount
Certain non-recurring litigation expenses
Change in deferred net revenue (packaged goods and digital content)
Loss (gain) on strategic investments
Restructuring charges
Stock-based compensation
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.

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:

Acquisition-Related Expenses. GAAP requires expenses to be recognized for various types of events associated with a business acquisition. These events include, expensing acquired intangible assets, including acquired in-process technology, post-closing adjustments associated with changes in the estimated amount of contingent consideration to be paid in an acquisition, and the impairment of accounting goodwill created as a result of an acquisition when future events indicated there has been a decline in its value. 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 including the final amounts paid for contingent consideration) without taking into consideration any allocations made for accounting purposes. Because the final purchase price paid for an acquisition necessarily reflects the accounting value assigned to both contingent consideration and to the intangible assets (including goodwill), when analyzing the operating performance of an acquisition in subsequent periods, the Company's management excludes the GAAP impact of any adjustments to the fair value of these acquisition-related balances to its financial results.

Amortization of Debt Discount on the Convertible Senior Notes. Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. Accordingly, for GAAP purposes, we are required to amortize as a debt discount an amount equal to the fair value of the conversion option as interest expense on the Company's $632.5 million of 0.75% convertible senior notes that were issued in a private placement in July 2011 over the term of the notes. Electronic Arts' management will exclude the effect of this amortization when evaluating the Company's operating performance and the performance of its management team during this period and will continue to do so, when it plans, forecasts and analyzes future periods.

Certain non-recurring litigation expenses. During the fourth quarter of fiscal 2012, Electronic Arts recognized a $27 million expense related to a potential settlement of an on-going litigation matter. This significant non-recurring litigation expense is excluded from our non-GAAP financial measures in order to provide comparability between periods. Further, the Company excluded this expense when evaluating its operating performance and the performance of its management team during this period and will continue to do so when it plans, forecasts and analyzes future periods.

Change in Deferred Net Revenue (Packaged Goods and Digital Content). Electronic Arts is not able to objectively determine the fair value of the online service included in certain of its packaged goods and digital content. As a result, the Company recognizes the revenue from the sale of these games and content over the estimated online service period. In other transactions, at the date we sell the software product we have an obligation to provide incremental unspecified digital content in the future without an additional fee. In these cases, we account for the sale of the software product as a multiple element arrangement and recognize the revenue on a straight-line basis over the estimated period of game play. Internally, Electronic Arts' management excludes the impact of the change in 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 excluding the impact of the change in deferred net revenue from its operating results is important to (1) facilitate comparisons to prior periods during which the Company was able to objectively determine the fair value of the online service and not delay the recognition of significant amounts of net revenue related to online-enabled packaged goods and (2) understanding our operations because all related costs are expensed as incurred instead of deferred and recognized ratably.

Loss (gain) on Strategic Investments. From time to time, the Company makes strategic investments. Electronic Arts' management excludes the impact of any losses and gains on such investments when evaluating the Company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. In addition, the Company believes that excluding the impact of such losses and gains on these investments from its operating results is important to facilitate comparisons to prior periods.

Restructuring Charges. Although Electronic Arts has engaged in various restructuring activities in the past, 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. As such, the Company believes it is appropriate to exclude restructuring charges from its non-GAAP financial measures.

Stock-Based Compensation. 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.

Income Tax Adjustments. The Company uses a fixed, long-term projected tax rate of 28 percent internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company has applied the same 28 percent tax rate to its non-GAAP financial results.

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

Forward-Looking Statements

Some statements set forth in this release, including the information relating to EA's fiscal 2013 guidance information 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 preliminary estimates and expectations based on current information and are subject to business and economic 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: sales of the Company's titles; the Company's ability to manage expenses; the competition in the interactive entertainment industry; the effectiveness of the Company's sales and marketing programs; timely development and release of Electronic Arts' products; the Company's ability to realize the anticipated benefits of acquisitions, including the PopCap acquisition; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company's ability to predict consumer preferences among competing platforms; the Company's ability to service and support digital product offerings, including managing online security; general economic conditions; and other factors described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2012.

These forward-looking statements are current as of July 31, 2012. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements. In addition, the preliminary 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 June 30, 2012. 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 June 30, 2012.

About Electronic Arts

Electronic Arts (NASDAQ:EA) is a global leader in digital interactive entertainment. The Company's game franchises are offered as both packaged goods products and online services delivered through Internet-connected consoles, personal computers, mobile phones and tablets. EA has more than 230 million registered players and operates in 75 countries. In fiscal year 2012, EA posted GAAP net revenue of $4.1 billion. Headquartered in Redwood City, California, EA is recognized for critically acclaimed, high-quality blockbuster franchises such as The Sims™, Madden NFL, FIFA Soccer, Need for Speed™, Battlefield™, and Mass Effect™. More information about EA is available at http://info.ea.com.

EA, EA SPORTS, Origin, PopCap, The Sims, SimCity and Need for Speed are trademarks of Electronic Arts Inc. Mass Effect is a trademark of EA International (Studio and Publishing) Ltd. Battlefield 3 and Battlefield are trademarks of EA Digital Illusions CE AB. LucasArts, the LucasArts logo, STAR WARS and related properties are trademarks in the United States and/or in other countries of Lucasfilm Ltd and/or its affiliates. © 2011 Lucasfilm Entertainment Company Ltd. or Lucasfilm Ltd. All rights reserved. John Madden, NFL and FIFA are the property of their respective owners and used with permission. All other 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
				June 30,
					2012			2011

	Net revenue
		Product		$	702		$	894
		Service and other			253			105
			Total net revenue		955			999
	Cost of revenue
		Product			132			212
		Service and other			73			28
			Total cost of revenue		205			240
	Gross profit				750			759

	Operating expenses:
		Marketing and sales			145			140
		General and administrative			86			74
		Research and development			290			285
		Acquisition-related contingent consideration			(20	)		2
		Amortization of intangibles			7			13
		Restructuring and other			27			18
			Total operating expenses		535			532

	Operating income				215			227

	Interest and other income (expense), net				(5	)		3

	Income before provision for income taxes				210			230

	Provision for income taxes				9			9

	Net income			$	201		$	221

	Earnings per share
		Basic		$	0.63		$	0.67
		Diluted		$	0.63		$	0.66

	Number of shares used in computation
		Basic			317			331
		Diluted			320			337

	Non-GAAP Results (in millions, except per share data)
	The following tables reconcile the Company's net income and earnings per share as presented in its Unaudited Condensed Consolidated Statements of Operations and prepared in accordance with Generally Accepted Accounting Principles ("GAAP") to its non-GAAP net loss and non-GAAP loss per share.


		Three Months Ended
		June 30,
			2012			2011

Net income		$	201		$	221

	Acquisition-related expenses		2			18
	Amortization of debt discount		5			-
	Change in deferred net revenue (packaged goods and digital content)		(464	)		(475	)
	Restructuring and other		27			18
	Stock-based compensation		39			38
	Income tax adjustments		60			57

Non-GAAP net loss		$	(130	)	$	(123	)

Non-GAAP loss per share
	Basic and diluted	$	(0.41	)	$	(0.37	)

Number of shares used in Non-GAAP computation
	Basic and diluted		317			331


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

					June 30,		March 31,
						2012	2012 (a)

	ASSETS

		Current assets:
		Cash and cash equivalents			$	919	$	1,293
		Short-term investments				444		437
		Marketable equity securities				76		119
		Receivables, net of allowances of $226 and $252, respectively				111		366
		Inventories				60		59
		Deferred income taxes, net				68		67
		Other current assets				273		268
				Total current assets		1,951		2,609

		Property and equipment, net				558		568
		Goodwill				1,716		1,718
		Acquisition-related intangibles, net				347		369
		Deferred income taxes, net				44		42
		Other assets				209		185

			TOTAL ASSETS		$	4,825	$	5,491

	LIABILITIES AND STOCKHOLDERS' EQUITY

		Current liabilities:
		Accounts payable			$	50	$	215
		Accrued and other current liabilities				702		857
		Deferred net revenue (packaged goods and digital content)				584		1,048
				Total current liabilities		1,336		2,120

		0.75% convertible senior notes due 2016, net				544		539
		Income tax obligations				198		189
		Deferred income taxes, net				2		8
		Other liabilities				193		177
			Total liabilities			2,273		3,033

		Common stock				3		3
		Paid-in capital				2,310		2,359
		Retained earnings (accumulated deficit)				124		(77	)
		Accumulated other comprehensive income				115		173
			Total stockholders' equity			2,552		2,458

			TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	4,825	$	5,491

^(a)	Derived from audited consolidated financial statements.


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

						Three Months Ended
						June 30,
							2012			2011

OPERATING ACTIVITIES

	Net income					$	201		$	221
		Adjustments to reconcile net income to net cash used in operating activities:
			Acquisition-related contingent consideration				(20	)		2
			Depreciation, amortization and accretion, net				56			43
			Non-cash restructuring charges				7			-
			Stock-based compensation				39			38
			Change in assets and liabilities:
				Receivables, net			254			307
				Inventories			(2	)		4
				Other assets			(29	)		(101	)
				Accounts payable			(157	)		(133	)
				Accrued and other liabilities			(119	)		(181	)
				Deferred income taxes, net			(10	)		1
				Deferred net revenue (packaged goods and digital content)			(464	)		(475	)
					Net cash used in operating activities		(244	)		(274	)

INVESTING ACTIVITIES

	Capital expenditures						(31	)		(32	)
	Proceeds from maturities and sales of short-term investments						128			83
	Purchase of short-term investments						(137	)		(90	)
	Acquisition of subsidiaries, net of cash acquired						-			(25	)
					Net cash used in investing activities		(40	)		(64	)

FINANCING ACTIVITIES

	Proceeds from issuance of common stock						-			14
	Excess tax benefit from stock-based compensation						-			2
	Repurchase and retirement of common stock						(71	)		(91	)
	Acquisition-related contingent consideration payment						(1	)		-

					Net cash used in financing activities		(72	)		(75	)

Effect of foreign exchange on cash and cash equivalents							(18	)		7
Decrease in cash and cash equivalents							(374	)		(406	)
Beginning cash and cash equivalents							1,293			1,579
Ending cash and cash equivalents						$	919		$	1,173


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

	Q1			Q2			Q3			Q4			Q1			YOY %
	FY12			FY12			FY12			FY12			FY13			Change

QUARTERLY RECONCILIATION OF RESULTS

Net Revenue
GAAP net revenue	$	999		$	715		$	1,061		$	1,368		$	955		(4	%)
Change in deferred net revenue (packaged goods and digital content)		(475	)		319			590			(391	)		(464	)
Non-GAAP net revenue	$	524		$	1,034		$	1,651		$	977		$	491		(6	%)

Gross Profit
GAAP gross profit	$	759		$	283		$	509		$	994		$	750		(1	%)
Acquisition-related expenses		3			8			14			27			15
Change in deferred net revenue (packaged goods and digital content)		(475	)		319			590			(391	)		(464	)
Stock-based compensation		1			-			-			1			1
Non-GAAP gross profit	$	288		$	610		$	1,113		$	631		$	302		5	%
GAAP gross profit % (as a % of GAAP net revenue)		76	%		40	%		48	%		73	%		79	%
Non-GAAP gross profit % (as a % of non-GAAP net revenue)		55	%		59	%		67	%		65	%		62	%

Operating Income (Loss)
GAAP operating income (loss)	$	227		$	(374	)	$	(183	)	$	365		$	215		(5	%)
Acquisition-related expenses		18			38			14			36			2
Certain non-recurring litigation expenses		-			-			-			27			-
Change in deferred net revenue (packaged goods and digital content)		(475	)		319			590			(391	)		(464	)
Restructuring and other		18			(1	)		-			(1	)		27
Stock-based compensation		38			43			48			41			39
Non-GAAP operating income (loss)	$	(174	)	$	25		$	469		$	77		$	(181	)	(4	%)
GAAP operating income (loss) % (as a % of GAAP net revenue)		23	%		(52	%)		(17	%)		27	%		23	%
Non-GAAP operating income (loss) % (as a % of non-GAAP net revenue)		(33	%)		2	%		28	%		8	%		(37	%)

Net Income (Loss)
GAAP net income (loss)	$	221		$	(340	)	$	(205	)	$	400		$	201		(9	%)
Acquisition-related expenses		18			38			14			36			2
Amortization of debt discount		-			4			5			5			5
Certain non-recurring litigation expenses		-			-			-			27			-
Change in deferred net revenue (packaged goods and digital content)		(475	)		319			590			(391	)		(464	)
Restructuring and other		18			(1	)		-			(1	)		27
Stock-based compensation		38			43			48			41			39
Income tax adjustments		57			(46	)		(118	)		(61	)		60
Non-GAAP net income (loss)	$	(123	)	$	17		$	334		$	56		$	(130	)	(6	%)
GAAP net income (loss) % (as a % of GAAP net revenue)		22	%		(48	%)		(19	%)		29	%		21	%
Non-GAAP net income (loss) % (as a % of non-GAAP net revenue)		(23	%)		2	%		20	%		6	%		(26	%)

Diluted Earnings (Loss) Per Share
GAAP earnings (loss) per share	$	0.66		$	(1.03	)	$	(0.62	)	$	1.20		$	0.63		(5	%)
Non-GAAP earnings (loss) per share	$	(0.37	)	$	0.05		$	0.99		$	0.17		$	(0.41	)	(11	%)

Number of diluted shares used in computation
GAAP		337			331			332			332			320
Non-GAAP		331			337			338			332			317


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

	Q1		Q2		Q3		Q4		Q1		YOY %
	FY12		FY12		FY12		FY12		FY13		Change

QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP

Geography Net Revenue
North America	501		337		500		653		450		(10	%)
Europe	438		328		505		627		435		(1	%)
Asia	60		50		56		88		70		17	%
Total GAAP Net Revenue	999		715		1,061		1,368		955		(4	%)
North America	(240	)	144		310		(188	)	(265	)
Europe	(215	)	174		235		(187	)	(174	)
Asia	(20	)	1		45		(16	)	(25	)
Change In Deferred Net Revenue (Packaged Goods and Digital Content)	(475	)	319		590		(391	)	(464	)
North America	261		481		810		465		185		(29	%)
Europe	223		502		740		440		261		17	%
Asia	40		51		101		72		45		13	%
Total Non-GAAP Net Revenue	524		1,034		1,651		977		491		(6	%)

North America	50	%	47	%	47	%	48	%	47	%
Europe	44	%	46	%	48	%	46	%	46	%
Asia	6	%	7	%	5	%	6	%	7	%
Total GAAP Net Revenue %	100	%	100	%	100	%	100	%	100	%
North America	50	%	46	%	49	%	48	%	38	%
Europe	42	%	49	%	45	%	45	%	53	%
Asia	8	%	5	%	6	%	7	%	9	%
Total Non-GAAP Net Revenue %	100	%	100	%	100	%	100	%	100	%

Net Revenue Composition
Publishing and Other	647		450		738		926		592		(9	%)
Wireless, Internet-derived, and Advertising (Digital)	232		234		274		419		342		47	%
Distribution	120		31		49		23		21		(83	%)
Total GAAP Net Revenue	999		715		1,061		1,368		955		(4	%)
Publishing and Other	(452	)	337		487		(397	)	(446	)
Wireless, Internet-derived, and Advertising (Digital)	(23	)	(18	)	103		6		(18	)
Change In Deferred Net Revenue (Packaged Goods and Digital Content)	(475	)	319		590		(391	)	(464	)
Publishing and Other	195		787		1,225		529		146		(25	%)
Wireless, Internet-derived, and Advertising (Digital)	209		216		377		425		324		55	%
Distribution	120		31		49		23		21		(83	%)
Total Non-GAAP Net Revenue	524		1,034		1,651		977		491		(6	%)

Publishing and Other	65	%	63	%	69	%	68	%	62	%
Wireless, Internet-derived, and Advertising (Digital)	23	%	33	%	26	%	30	%	36	%
Distribution	12	%	4	%	5	%	2	%	2	%
Total GAAP Net Revenue %	100	%	100	%	100	%	100	%	100	%
Publishing and Other	37	%	76	%	74	%	54	%	30	%
Wireless, Internet-derived, and Advertising (Digital)	40	%	21	%	23	%	44	%	66	%
Distribution	23	%	3	%	3	%	2	%	4	%
Total Non-GAAP 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)

			Q1		Q2		Q3		Q4		Q1		YOY %
			FY12		FY12		FY12		FY12		FY13		Change

QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP

Platform Net Revenue
	Xbox 360		345		213		331		454		292		(15	%)
	PLAYSTATION 3		308		169		314		432		267		(13	%)
	Wii		42		35		49		20		8		(81	%)
	PlayStation 2		3		15		7		3		2		(33	%)
		Total Consoles	698		432		701		909		569		(18	%)
	Mobile		57		55		70		87		69		21	%
	PlayStation Handhelds		11		17		14		6		10		(9	%)
	Nintendo Handhelds		8		7		15		5		9		13	%
		Total Mobile and Handhelds	76		79		99		98		88		16	%
	PC		205		178		214		334		276		35	%
	Other		20		26		47		27		22		10	%
		Total GAAP Net Revenue	999		715		1,061		1,368		955		(4	%)
	Xbox 360		(193	)	140		174		(128	)	(186	)
	PLAYSTATION 3		(197	)	205		179		(210	)	(183	)
	Wii		(26	)	(1	)	3		(7	)	(5	)
	PlayStation 2		-		-		-		-		(1	)
	Mobile		-		-		13		(3	)	9
	PlayStation Handhelds		(6	)	-		(2	)	10		(4	)
	Nintendo Handhelds		(2	)	-		9		(5	)	(4	)
	PC		(51	)	(25	)	214		(48	)	(90	)
		Change in Deferred Net Revenue (Packaged Goods and Digital Content)	(475	)	319		590		(391	)	(464	)
	Xbox 360		152		353		505		326		106		(30	%)
	PLAYSTATION 3		111		374		493		222		84		(24	%)
	Wii		16		34		52		13		3		(81	%)
	PlayStation 2		3		15		7		3		1		(67	%)
		Total Consoles	282		776		1,057		564		194		(31	%)
	Mobile		57		55		83		84		78		37	%
	PlayStation Handhelds		5		17		12		16		6		20	%
	Nintendo Handhelds		6		7		24		-		5		(17	%)
		Total Mobile and Handhelds	68		79		119		100		89		31	%
	PC		154		153		428		286		186		21	%
	Other		20		26		47		27		22		10	%
		Total Non-GAAP Net Revenue	524		1,034		1,651		977		491		(6	%)

	Xbox 360		35	%	30	%	31	%	33	%	31	%
	PLAYSTATION 3		31	%	23	%	29	%	32	%	28	%
	Wii		4	%	5	%	5	%	1	%	1	%
	PlayStation 2		-		2	%	1	%	-		-
		Total Consoles	70	%	60	%	66	%	66	%	60	%
	Mobile		6	%	8	%	7	%	6	%	7	%
	PlayStation Handhelds		1	%	2	%	1	%	1	%	1	%
	Nintendo Handhelds		1	%	1	%	1	%	-		1	%
		Total Mobile and Handhelds	8	%	11	%	9	%	7	%	9	%
	PC		20	%	25	%	20	%	25	%	29	%
	Other		2	%	4	%	5	%	2	%	2	%
		Total GAAP Net Revenue %	100	%	100	%	100	%	100	%	100	%
	Xbox 360		29	%	34	%	31	%	34	%	22	%
	PLAYSTATION 3		21	%	36	%	30	%	23	%	17	%
	Wii		3	%	4	%	3	%	1	%	1	%
	PlayStation 2		1	%	1	%	-		-		-
		Total Consoles	54	%	75	%	64	%	58	%	40	%
	Mobile		11	%	5	%	5	%	8	%	16	%
	PlayStation Handhelds		1	%	2	%	1	%	2	%	1	%
	Nintendo Handhelds		1	%	1	%	1	%	-		1	%
		Total Mobile and Handhelds	13	%	8	%	7	%	10	%	18	%
	PC		29	%	15	%	26	%	29	%	38	%
	Other		4	%	2	%	3	%	3	%	4	%
		Total Non-GAAP 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)

	Q1		Q2		Q3	Q4		Q1		YOY %
	FY12		FY12		FY12	FY12		FY13		Change

CASH FLOW DATA

Operating cash flow	(274	)	(211	)	475	287		(244	)	11	%
Operating cash flow - TTM	194		117		243	277		307		58	%
Capital expenditures	32		52		44	44		31		(3	%)
Capital expenditures - TTM	80		120		149	172		171		114	%

BALANCE SHEET DATA

Cash and cash equivalents	1,173		930		1,242	1,293		919		(22	%)
Short-term investments	503		355		406	437		444		(12	%)
Marketable equity securities	172		214		143	119		76		(56	%)
Receivables, net	30		562		526	366		111		270	%
Inventories	75		90		69	59		60		(20	%)
Deferred net revenue (packaged goods and digital content)
End of the quarter	530		849		1,439	1,048		584
Less: Beginning of the quarter	1,005		530		849	1,439		1,048
Change in deferred net revenue (packaged goods and digital content)	(475	)	319		590	(391	)	(464	)

STOCK-BASED COMPENSATION

Cost of goods sold	1		-		-	1		1
Marketing and sales	5		6		7	8		7
General and administrative	9		9		11	7		9
Research and development	23		28		30	25		22
Total Stock-Based Compensation	38		43		48	41		39

EMPLOYEES	7,973		8,687		9,043	9,158		9,225		16	%

Electronic Arts Inc.
Rob Sison, 650-628-7787
Vice President, Investor Relations
rsison@ea.com
or
Jeff Brown, 650-628-7922
Senior Vice President, Corporate Communications
jbrown@ea.com

Source: Electronic Arts Inc.

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