REDWOOD CITY, Calif.(BUSINESS WIRE)Electronic Arts Inc. (NASDAQ: ERTS) today announced preliminary financial results for its third quarter ended December 31, 2009.
“EA is growing share in our packaged goods business and our digital businesses continue to grow rapidly”
Fiscal Third Quarter Results (comparisons are to the quarter ended December 31, 2008)
GAAP net revenue for the quarter, which includes the impact of deferred net revenue adjustments, was $1.243 billion as compared with $1.654 billion for the prior year. During the quarter, EA had a net revenue deferral of $103 million related to certain online-enabled packaged goods and digital content as compared with $88 million in the third quarter of the prior year. This $103 million deferral will be recognized in future quarters.
Non-GAAP net revenue for the quarter was $1.346 billion, down 23 percent as compared with $1.742 billion for the prior year. The decline is due to several factors, including fewer titles this holiday quarter versus the 2008 holiday quarter, and a weak overall packaged goods sector in Europe. Sales were driven by the launches of Dragon Age™: Origins, Left 4 Dead 2, and NBA Live, and catalog sales of FIFA 10, Madden NFL 10, and The Sims™ 3.
GAAP net loss for the quarter, including the impact of deferred net revenue, was $82 million as compared with a net loss of $641 million for the prior year. GAAP diluted loss per share was $0.25 as compared with GAAP diluted loss per share of $2.00 for the prior year.
Non-GAAP net income was $109 million as compared with a non-GAAP net income of $179 million a year ago. Non-GAAP diluted earnings per share was $0.33 as compared with a non-GAAP diluted earnings per share of $0.56 for the prior year.
“EA is growing share in our packaged goods business and our digital businesses continue to grow rapidly,” said John Riccitiello, Chief Executive Officer. “Mass Effect 2 is the first blockbuster of 2010 and we are looking forward to the launch of Dante’s Inferno and Battlefield Bad Company 2.”
“We are expecting an increase in FY11 full year non-GAAP earnings per share on the basis of strong cost controls and growth in our digital businesses,” said Eric Brown, Chief Financial Officer.
* Fiscal year-to-date, EA was the #1 packaged goods publisher in North America and Europe – #1 publisher on the PlayStation® 3, PC, and PSP®; #2 publisher on Xbox 360® and Wii™ from Nintendo.
* Digital non-GAAP net revenue was an all time quarter high at $152 million – up 30 percent fiscal year-to-date versus last year.
* EA has reduced operating costs and projects fiscal year 2011 non-GAAP costs down $100 million versus fiscal year 2010.
* Five titles launched this quarter with a Metacritic rating of 80 or above – including: Dragon Age: Origins, EA SPORTS Active™ More Workouts, The Sims 3 World Adventures, Brütal Legend™, and Left 4 Dead 2. EA has 19 titles rated at 80 or above in calendar 2009.
* FIFA 10 has sold over 9.7 million copies since launch.
* EA’s Pogo™ is the #1 online game site worldwide measured by user engagement.
* EA’s online games subscribers totaled 1.9 million in the quarter – this includes Pogo, as well as massively multiplayer online (MMO) subscribers.
* EA Mobile™, the world’s leading publisher of games for phones, generated $57 million of non-GAAP net revenue in the quarter, an increase of 14 percent year-over-year. EA mobile had seven of the top eleven games on the iPhone®/iPod touch™ in December and seven of the top ten games on Verizon for the quarter.
* Playfish had two of the top ten Facebook games for the quarter.