Electronic Arts Announces First Fiscal Quarter Results of Fiscal Year 2002

SOURCE: Business Wire

REDWOOD CITY, CA - Electronic Arts (Nasdaq: ERTS) has announced its results for the first fiscal quarter ended June 30, 2001.

Consolidated net revenues for the first quarter were $182.0 million compared to $154.8 million for the same quarter of the prior fiscal year, an increase of 18 percent. Pro forma consolidated net loss for the quarter was $40.3 million before pre-tax goodwill and non-cash charges of $7.2 million, compared to a pro forma net loss, reported on the same basis, of $38.7 million in the same quarter of the prior year. Pro forma consolidated loss per share, excluding goodwill and non-cash charges, was $0.30 compared to a loss per share, reported on the same basis, of $0.30 in the same quarter of the prior year. On an as-reported basis, consolidated net loss and diluted loss per share were $45.3 million and $0.33, respectively, compared to a net loss and diluted loss per share of $42.3 million and $0.33, respectively, in the same period of the prior year.

During the quarter, Electronic Arts' core business, which excludes the results of EA.com, reported pro forma net revenues of $166.1 million, an increase of 13 percent, compared to $146.4 million in the same quarter of the prior year.

Electronic Arts' core business reported pro forma net loss in the quarter of $15.5 million, before pre-tax goodwill and non-cash charges of $3.9 million, compared to a net loss of $22.8 million in the same quarter of the prior year reported on the same basis.

In the first quarter, EA.com reported pro forma net revenues of $16.4 million, an increase of 87 percent, compared to $8.8 million in the same quarter of the prior year. First quarter pro forma net loss was $24.8 million, before pre-tax goodwill and non-cash charges of $3.3 million, compared to a net loss in the same quarter of the prior year of $15.8 million reported on the same basis.

Consolidated net revenues for the first quarter were up 18 percent compared to the same quarter of the prior fiscal year due to increased sales on the PlayStation 2 console and increased advertising revenue from EA.com, offset by expected lower sales on the PlayStation. In spite of continuing strong sales of products released in prior quarters, such as Black & White and The Sims products, PC sales in the quarter were relatively flat compared to the same quarter last year due to shipping one new product compared to four products last year.

On a geographic basis, North American revenues increased 44 percent while total international revenues were down 5 percent. Europe was up 15 percent for the quarter while Japan and Asia Pacific decreased 53 percent and 17 percent, respectively, relative to the same quarter in the prior year. North America was up primarily on the strength of PlayStation 2 sales, which comprised over one third of North America revenues, but also showed growth in revenues for both the PlayStation and Nintendo 64.