Electronic Arts Reports Q1 FY11 Financial Results

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Electronic Arts Inc. (NASDAQ: ERTS) today announced preliminary financial results for its first fiscal quarter ended June 30, 2010

“We had a solid first quarter, exceeding expectations both top and bottom line,” said John Riccitiello, Chief Executive Officer. “Top quality titles like 2010 FIFA World Cup South Africa, innovative digital offerings for titles like Battlefield: Bad Company 2 and Scrabble on the Apple iPad are driving the business.”

“EA is well-positioned for the year ahead and reaffirms its FY11 non-GAAP guidance,” said Eric Brown, Chief Financial Officer. “Digital revenue is expected to grow approximately 30% year over year, to $750 million in the fiscal year.”

Q1 FY11 Financial Highlights:

Non-GAAP net revenue of $539 million exceeded guidance of $460 million to $500 million. Non-GAAP EPS of ($0.24) exceeded guidance of ($0.35) to ($0.40). As expected, non-GAAP net revenue in Q1 fiscal 11 was lower compared to Q1 fiscal 10 due to a reduced title slate, which went from 10 major titles in Q1 fiscal 10 to six in Q1 fiscal 11. This was somewhat offset by strong digital revenue growth.

 

 

(in millions of $ except per share amounts)

Quarter

Ended
6/30/10

 

Quarter

Ended
6/30/09

Net Digital Revenue $ 176     $ 117  
Net Publishing Packaged Goods and Other Revenue   586       462  
Net Distribution Packaged Goods Revenue   53       65  
GAAP Total Net Revenue   815       644  
       
Non-GAAP Net Digital Revenue $ 188     $ 124  
Non-GAAP Net Publishing Packaged Goods and Other Revenue   298       627  
Non-GAAP Net Distribution Packaged Goods Revenue   53       65  
Non-GAAP Total Net Revenue   539       816  
       
GAAP Net Income/(Loss)   96       (234 )
Non-GAAP Loss   (78 )     (6 )
GAAP Diluted Earnings/(Loss) Per Share   0.29       (0.72 )
Non-GAAP Diluted Loss Per Share   (0.24 )     (0.02 )
       
Cash Flow from Operations   (148 )     (328 )

Trailing Twelve Month (TTM) Financial Highlights:

 

(in millions of $ except per share data)

Year

Ended
6/30/10

 

Year

Ended

6/30/09

GAAP Net Revenue $ 3,825     $ 4,052  
GAAP Net Loss   (347 )     (1,227 )
GAAP Diluted Loss Per Share   (1.08 )     (3.82 )
       
Non-GAAP Net Revenue   3,882       4,293  
Non-GAAP Net Income   73       33  
Non-GAAP Diluted Earnings Per Share   0.22       0.11  
       
Cash Flow from Operations   332       (25 )

Q1 FY11 Digital Metrics:

(in millions)

Quarter

Ended

6/30/10

Quarter

Ended

6/30/09

GAAP and Non-GAAP Net Mobile Revenue $ 52 $ 50
Monthly Active Users (MAU) in Social Games   52   n/a
Core Registered Users   67   33

Selected Quarterly Operating Highlights and Metrics:

  • EA is the #1 publisher on high definition consoles with 22% segment share calendar year-to-date, four points higher than the same period a year ago.
  • In North America and Europe, the high definition console software market is growing strongly with the combined PlayStation3 and Xbox 360 segments up 21% calendar year-to-date. The PlayStation 3 software market is up 40% calendar year-to-date.
  • EA is the #1 PC publisher, with 33% segment share at retail calendar year-to-date and strong growth in digital downloads of full-game software.
  • For the quarter, EA had three of the top 15 selling games in Western markets. 2010 FIFA World Cup South Africa was #4, Battlefield: Bad Company 2 was #7 and FIFA 10 was #12.
  • At E3, EA won more nominations (15) and awards (four) than any other publisher. Winners included: Need for Speed Hot Pursuit for Best Racing Game; NBA Jam for Best Sports Game; Star Wars The Old Republic for Best Role Playing Game; and Rock Band 3 (with MTV/Harmonix) for Best Social Game.
  • Madden NFL 11 will debut with GameFlow, an innovation which makes the game more accessible to casual players. GameFlow offers simpler play choices and a quicker path to the action, without compromising the deep playbook that makes Madden so popular with hardcore players.
  • In Korea, FIFA Online 2 reached five million registered players, over three million unique players enjoyed the game in July alone and concurrent users peaked at over 200,000. June and July were FIFA Online 2’s highest-grossing revenue months ever and it remains a top-three game in Korea.
  • EA was the #1 publisher across all platforms on the Apple App Store in the June quarter. EA had nine of the top ten games when the iPhone 4 launched in June.

 

Fiscal Year 2011 Key Titles by Label and Platform

Q1                  
    Games   Skate 3   Console      
        Green Day Rock Band(1)   Console      
        APB All Points Bulletin(1)         PC
    Sports   2010 FIFA World Cup South Africa   Console   Handheld/Mobile  
        Tiger Woods PGA TOUR Online         PC
        Tiger Woods PGA TOUR 11   Console      
Q2                  
    Games   Need for Speed World         PC
    Sports   NCAA Football 11   Console      
        Madden NFL 11   Console   Handheld/Mobile  
        FIFA 11   Console   Handheld/Mobile PC
        NHL 11   Console      
        EA SPORTS FIFA Online         PC
    Play   MySims Skyheroes   Console   Handheld/Mobile  
Q3                  
    Games   Medal of Honor   Console   Handheld/Mobile PC
        Need For Speed Hot Pursuit   Console   Handheld/Mobile PC
        Rock Band 3(1)   Console   Handheld/Mobile  
    Sports   EA SPORTS MMA   Console   Handheld/Mobile  
        FIFA Manager 11         PC
        NBA Jam   Console      
        NBA ELITE 11   Console   Handheld/Mobile  
        EA SPORTS Active NFL Training Camp   Console      
        EA SPORTS Active 2   Console   Handheld/Mobile  
    Play   HASBRO FAMILY GAME NIGHT 3   Console      
        LITTLEST PET SHOP 3: Biggest Stars series       Handheld/Mobile  
        MONOPOLY Streets   Console   Handheld/Mobile  
        Harry Potter and the Deathly Hallows Part 1   Console   Handheld/Mobile PC
        Create   Console     PC
        The Sims 3   Console   Handheld/Mobile  
Q4                  
    Games   Dead Space 2   Console   Handheld/Mobile PC
 <

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