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Moriendor
Black Ring Leader
Joined: 19 Jul 2001
Posts: 1306
Location: Germany |
| EA Reports Record Fiscal Year Results |
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One word: Wow  <blockquote><em><strong><center><h3>EA REPORTS RECORD FISCAL YEAR RESULTS; NET REVENUE UP 19 PERCENT TO $2.96 BILLION DRIVEN BY 27 PLATINUM TITLES</h3></center>
<br>REDWOOD CITY, Calif.-April 29, 2004</strong> - Electronic Arts (NASDAQ: ERTS) today announced financial results for the fiscal year and quarter ended March 31, 2004.
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<br><strong>Full Year Results</strong>
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<br>Net revenue for the fiscal year ended March 31, 2004 was $2.957 billion, up 19 percent as compared with $2.482 billion for the prior year. EA had twenty-seven platinum titles (over one million units sold) in fiscal 2004. Six franchises sold more than five million units: The SimsTM, Need for SpeedTM, Medal of HonorTM, FIFA Football, The Lord of the RingsTM and Madden NFLTM Football.
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<br>Net income for the year was $577 million, an 82 percent increase over the prior year. Diluted earnings per share increased 73 percent to $1.87 as compared with $1.08 for the prior year. The growth in earnings was driven by higher sales volume and increased gross margin.
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<br>Non-GAAP net income for the year, excluding certain items, was up 47 percent to $566 million. Non-GAAP diluted earnings per share were up 39 percent to $1.84. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)
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<br>Operating cash flow was $669 million as compared with $714 million for the prior fiscal year. The decline was primarily a result of the timing of sales during the fourth quarter.
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<br>"This was another outstanding year for EA," said Larry Probst, Chairman and Chief Executive Officer. "We delivered record revenue, twenty-seven platinum titles and record net income. We enter our next fiscal year with excellent momentum."
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<br>"We look forward to the year ahead," said Warren Jenson, Chief Financial and Administrative Officer. "We expect to once again deliver a strong performance while at the same time investing in new technologies for the future."
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<br><strong>Highlights for the Year (comparisons are to the fiscal year ended March 31, 2003)</strong><ul type="disc"><li>Net revenue: North America - up 12 percent to $1.6 billion; Europe - up 34 percent to $1.2 billion; Asia Pacific - up 10 percent to $97 million; Japan - down 12 percent to $71 million. Reported net revenue increased by $156 million or 6 percent due to changes in foreign currency rates.
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<br><li>European net revenue topped $1 billion for the first time in EA's history.
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<br><li>Gross margin was 62.7 percent - up 6 points from 56.8 percent.
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<br><li>Operating income was $776 million - up 70 percent. Operating margin increased 8 points year-over-year to 26 percent.
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<br><li>EA was the number one publisher in the U.S. on current generation consoles and on the PC. Based on dollar sales in the U.S., EA had five of the top-ten-selling current generation console titles and three of the top-ten-selling PC games.
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<br><li>EA was ranked as one of the top-50 best-performing major companies by Business Week.
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<br><li>EA won eleven awards at the Seventh Annual Academy of Interactive Arts and Sciences ("AIAS") ceremony for Need for Speed Underground; Madden NFL 2004; The SimsTM Superstar; The SimsTM Bustin' Out; Command & ConquerTM Generals; Medal of HonorTM Rising Sun; The Lord of the RingsTM, The Return of the KingTM; and SSX 3.
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<br><li>EA announced a long-term partnership with the USC School of Cinema-Television creating the EA Interactive Entertainment Program to advance interactive entertainment education and create a launch pad for the next generation of talent in our industry.</ul>
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<br><strong>Fourth Quarter Results</strong>
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<br>Net revenue for the fourth quarter was $598 million, up 29 percent as compared with $463 million for the prior year. Sales were driven by James Bond 007: Everything or NothingTM; Need for Speed Underground; NFL STREET; MVP BaseballTM 2004 and Final FantasyŽ X-2.
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<br>Net income for the quarter was $90 million, as compared with $9 million for the prior year. Diluted earnings per share were $0.29 for the quarter, as compared with $0.03 for the prior year. Restructuring charges in the quarter totaled $9 million and were primarily a result of studio consolidations. Prior year results included asset impairment and restructuring charges of $72 million.
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<br>The effective income tax rate for the quarter was 10.4 percent as compared with 31 percent for the prior year. In the quarter, certain tax-related issues were resolved. The resolution of these matters lowered income tax expense by $20 million. This non-recurring event improved diluted earnings per share by $0.06. Excluding the $20 million benefit, the tax rate would have been 30 percent.
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<br>Non-GAAP net income, excluding certain items, was up 30 percent to $77 million. Non-GAAP diluted earnings per share were up 25 percent to $0.25. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)
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<br><strong>Business Outlook</strong>
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<br>The following forward-looking statements reflect expectations as of April 29, 2004. Results may be materially different and are affected by many factors, such as changes in foreign exchange rates, development delays, the overall global economy, the popular appeal of our products, our ability to secure key licenses and other risk factors detailed in this release and in our annual and quarterly SEC filings.
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<br><strong>Fiscal First Quarter Expectations - Ending June 30, 2004</strong><ul type="disc"><li>Net revenue is expected to be between $390 and $430 million - as compared with $353 million for the prior year.
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<br><li>Diluted earnings per share are expected to be between breakeven and $0.05 - as compared with $0.06 for the comparable period in fiscal 2004.</ul>
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<br><strong>Fiscal Year Expectations - Ending March 31, 2005</strong><ul type="disc"><li>Net revenue is expected to be between $3.25 and $3.40 billion - up 10 to 15 percent year-over-year.
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<br><li>Diluted earnings per share are expected to be between $1.95 and $2.10 - as compared with $1.87 for fiscal 2004.</ul>
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<br><strong>Non-GAAP Financial Measures</strong>
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<br>Electronic Arts uses non-GAAP measures of operating income, net income and diluted earnings per share. These non-GAAP measures exclude the following items, including the related tax effect, from the Company's statement of operations:<ul type="disc"><li>Amortization of intangibles
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<br><li>Restructuring and asset impairment charges
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<br><li>Other-than-temporary impairment of investments in affiliates
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<br><li>Charges for acquired in-process technology</ul>
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<br>In addition, for the three and twelve months ended March 31, 2004, reported non-GAAP net income excludes a $20 million non-recurring benefit to the Company's income tax expense.
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<br>The Company believes that excluding these items is useful for illustrating and explaining operating results and comparisons to prior periods. Management considers these non-GAAP measures in its decision-making to facilitate more relevant operating comparisons.
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<br>A reconciliation of GAAP operating income to non-GAAP operating income; GAAP net income to non-GAAP net income; and GAAP diluted earnings per share to non-GAAP diluted earnings per share are included as part of the supplemental disclosures to this release.
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<br><strong>Conference Call</strong>
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<br>Electronic Arts will host a conference call on April 29, 2004 at 2:00 pm PT (5:00 pm ET) to review the results of the Company's fiscal year and fourth quarter ended March 31, 2004. Listeners may access the conference call live via webcast (<a href="http://investor.ea.com/" target="_blank">http://investor.ea.com</a>). A dial-in replay of the conference call will be available until May 6, 2004 at (719) 457-0820, access code 220497. The webcast archive of the conference call will be available for one year at <a href="http://investor.ea.com/" target="_blank">http://investor.ea.com</a>.
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<br>Some statements set forth in this release, including those under the heading "Business Outlook," contain forward-looking statements that involve risks and uncertainties. Statements including words such as "anticipate", "believe" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to business and economic risks and actual events or actual future results could differ materially from those set forth in the forward-looking statements due to such risks and uncertainties. Some of the factors which could cause our results to differ materially include the following: our ability to predict consumer preferences among competing hardware platforms; the seasonality and cyclical nature of the interactive game segment; timely development and release of our products; our ability to secure licenses to valuable entertainment properties on favorable terms; consumer spending trends; retention of key personnel; adoption of new accounting regulations and standards; potential regulation of our products in key territories; developments in the law regarding protection of our products; and other factors described in our Annual Report on Form 10-K for the year ended March 31, 2003 and Quarterly Report on Form 10-Q for the quarter ended December 31, 2003. If any of these risks or uncertainties materializes, our results could differ materially from our expectations described in these forward-looking statements. We do not intend to update these forward-looking statements, including those made under the "Business Outlook" heading.</em></blockquote> |
Sat May 01, 2004 1:18 pm |
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Wolfgarou
Guards Lieutenant
Joined: 29 May 2003
Posts: 163
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Wow indeed! That's one mighty long report! Too bad this isn't from Interplay...
_________________
The world is small, nasty and complicated, and everybody dies alone... - Sam Fisher |
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Sat May 01, 2004 1:20 pm |
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All times are GMT. The time now is Thu Apr 11, 2019 1:16 pm
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