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Forums - Sales Discussion - EA's Financial Report

alfredofroylan on 04 August 2009

It's quite huge to post it complete.

Net Revenue – $644 [compared to $804 for three months ended 06/30/08]

Net Income (Loss) – $(234) [compared to $(95) for three months ended 06/30/08]

REDWOOD CITY, Calif., Aug 04, 2009 (BUSINESS WIRE) — Electronic Arts Inc. (NASDAQ: ERTS) today announced preliminary financial results for its fiscal first quarter ended June 30, 2009.

Fiscal First Quarter Results (comparisons are to the quarter ended June 30, 2008)

GAAP net revenue for the quarter, which includes the impact of deferred revenue adjustments, was $644 million, as compared with $804 million for the prior year. During the quarter, EA had a net revenue deferral of $172 million related to certain online-enabled packaged goods games and digital content as compared with a net benefit of $195 million in the first quarter of the prior year.

Non-GAAP net revenue was $816 million, up 34 percent as compared with $609 million for the prior year. Sales were driven by launches of The Sims(TM) 3, EA SPORTS Active(TM), and Fight Night Round 4.

http://gamerinvestments.com/video-game-stocks/index.php/2009/08/04/ea-reports-first-quarter-fiscal-year-2010-results/



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luvtospooge on 04 August 2009

Ooo, gaming companies are getting hit hard.



psrock on 04 August 2009

1.8 million copies EA sports active
3.7 million Sims 3

With EA HAVING 50% of their games on the Wii they are finally making a a profit. They are learning.



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dolemit3 on 04 August 2009

I don't remember a single quarter when they actually made any $$$. Hopefully Madden 10 will be the tipping point.



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Erik Aston on 04 August 2009

Holy cow. Losses of $234m on sales of $644m? I have no idea what the "deferred revenue" means, but just on the surface that's pretty abysmal.

1.8m EA Sports Active shipped by the end of June is great. This will be a core franchise of any potential EA turnaround.



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Godot on 04 August 2009

I can't believe EA can lose that much money on the Sims 3 quarter. Also, EA Fit did really well and should have brought profit.



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jammy2211 on 04 August 2009

I believe deferred revenue is revenue made that they choose to 'put forward' to another Quarter to make those results better. EA make more money in the holiday months so they may 'defer' some revenue to the quarters where they sell less games as to make their quartley earnings in the Jan - Mar period better.

It sounds like EA had a good quarter but deffered heavily to make the losses sound worse then they are. I'm really not sure why as they seem to have a good Christmas ahead of them - guess it has something to with exchange rates and stuff I don't understand.



shams on 04 August 2009

Something is not right. The bottom article says:

Non-GAAP net revenue was $816 million, up 34 percent as compared with $609 million for the prior year
(i.e. revenue is up)

The top article says:
Net Revenue – $644 [compared to $804 for three months ended 06/30/08]

Huh? Such a big difference? Net Revenue down by 170m, but Non-GAAP net rev up by $220m??

Way to go EA - I wish I could lose $3m a day!!

How long can they keep bleeding like this? And this is even after all the closures & layoffs?



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swanie on 04 August 2009

looks like EA sports active is undertracked
1.8 million by end of june. leaving about 500k on store shelves according to the sales numbers.



famousringo on 04 August 2009

On a GAAP basis things are looking down, but on a non-GAAP basis, they're looking up.

I should do some reading on what this financial mumbo-jumbo means in the real world.



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