EX-99.1 3 dex991.htm PRESS RELEASE DATED OCTOBER 22,2003 Press Release dated October 22,2003

Exhibit 99.1

 

EA ANNOUNCES STRONG SECOND QUARTER RESULTS

Announces Two-For-One Stock Split – Fourth Split in EA History

Record Holiday Quarter Expected

 

REDWOOD CITY, CA – October 22, 2003 – Electronic Arts (NASDAQ: ERTS) today announced financial results for the fiscal second quarter ended September 30, 2003.

 

Net revenue for the second quarter was $530 million, up 17 percent as compared with $453 million for the fiscal quarter ended September 30, 2002. Sales were driven by Madden NFL 2004, NCAA® Football 2004, Tiger Woods PGA TOUR® 2004, NHL® 2004 and NASCAR Thunder 2004. Madden NFL 2004 and NCAA Football 2004 had record sales in the quarter – having sold more than 3.6 million and 1.3 million units, respectively.

 

Net income for the quarter was $77 million, a 52 percent increase over the same period a year ago. Diluted earnings per share for the quarter increased 47 percent to $0.50 as compared with $0.34 for the prior year. The growth in earnings was driven by increased revenue and a higher gross margin.

 

Trailing twelve month operating cash flow was $657 million, or $4.45 a share, up 45 percent from $454 million, or $3.14 a share, for the same period a year ago.

 

Non-GAAP net income in the second quarter, excluding certain items, was up 49 percent to $77 million. Non-GAAP diluted earnings per share were up 43 percent to $0.50. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

 

“EA is once again decisively winning the football category,” said Larry Probst, Chairman and Chief Executive Officer. “Madden NFL 2004 is the clear number one and NCAA Football 2004 a solid number two. Looking ahead, our holiday line-up is the strongest in EA history with titles like The Lord of the Rings, The Return of the King; Medal of Honor Rising Sun; Harry Potter: Quidditch World Cup; Need for Speed Underground; SSX 3; FIFA Soccer 2004 and NBA Live 2004.

 

“This was a great quarter and we continue to be on track for another record year,” said Warren Jenson, Chief Financial and Administrative Officer. “We continue to deliver growth, earnings and significant operating cash flow.”

 

Highlights for the Quarter (comparisons are to the quarter ended September 30, 2002)

 

  Net revenue: North America – up 14 percent to $358 million; Europe – up 24 percent to $145 million; Asia Pacific – up 28 percent to $18 million; Japan – down 3 percent to $9 million. Net revenue was favorably impacted by changes in foreign currency rates by approximately $14 million.
  Gross margin was 59.7 percent versus 55.7 percent.

 


  Operating income was $102 million – up 43 percent. Operating margin increased 3.5 points year-over-year to 19 percent.
  EA was the number one U.S. publisher on current generation consoles. In the U.S., the Company had four of the top-ten-selling current generation console titles (includes PlayStation®2, Xbox and Nintendo GameCube consoles) based on dollar sales according to The NPD Group / NPD Funworld® / TRSTS®.
  EA was the number one U.S. publisher on the PC. In the U.S., the Company had four of the top-ten-selling PC games for July and August based on dollar sales according to The NPD Group / NPD Techworld.
  Madden NFL 2004 and NCAA Football 2004 received Metacritic ratings of 95 and 94, respectively, for their PlayStation 2 releases. On each platform released, they were the #1 and #2 selling football titles for the quarter.
  EA continued to expand its world-class studios. Earlier this month, EA announced the expansion of its UK studios through the acquisition of Studio 33, a globally recognized game developer. EA also announced plans to locate its Los Angeles studio in a new state-of-the-art facility in Playa Vista, California.

 

Business Outlook

 

The following forward-looking statements reflect expectations as of October 22, 2003. Results may be materially different and are affected by many factors, such as changes in the overall global economy, actual consumer spending, consumer acceptance of our products, development delays and other risk factors referenced below in this release.

 

Fiscal Third Quarter Expectations – Ending December 31, 2003

 

  Net revenue is expected to be between $1.425 and $1.475 billion – up 16 to 20 percent year-over-year.
  Diluted earnings per share are expected to be between $2.30 and $2.40 – up 36 to 42 percent year-over-year.

 

Fiscal Year Expectations – Ending March 31, 2004

 

  Net revenue is expected to be between $2.850 and $2.930 billion – up 15 to 18 percent year-over-year.
  Diluted earnings per share are expected to be between $3.35 and $3.50 – up 54 to 61 percent year-over-year.

 

Stock Split

 

The Company’s Board of Directors has approved a two-for-one stock split of its Class A common stock. This is the fourth stock split in the Company’s history. The split will be accomplished through a share-for-share stock dividend to Class A common stockholders of record as of November 3, 2003. Each Class A common stockholder will receive one additional share of Class A common stock for every share of Class A common stock held on the record date. Distribution of additional shares will be made on or about November 17, 2003. Trading at a post-split price is expected to begin on November 18, 2003.

 

Non-GAAP Financial Measures

 

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:

 

  Amortization of intangibles
  Restructuring and asset impairment charges
  Other-than-temporary impairment of investments in affiliates
  Charges for acquired in-process technology

 

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.

 

2


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.

 

Webcast

 

Electronic Arts will host a webcast at 2:00 pm PT (5:00 pm ET) on October 22, 2003 at http://investor.ea.com to review the results for the Company’s quarter ending September 30, 2003 and to discuss the Company’s near-term outlook. A replay of the webcast will be posted for two weeks. A copy of this release and supplemental information will be available at http://investor.ea.com.

 

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; 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 10K for the year ended March 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.

 

Note to Editors: Need for Speed and Medal of Honor are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. The Lord of the Rings and The Return of the King are trademarks of The Saul Zaentz Company d/b/a Tolkien Enterprises under license to New Line Productions, Inc. HARRY POTTER and all related characters and elements are trademarks of and © Warner Bros. Entertainment Inc. Harry Potter Publishing Rights © JKR. NFL, NHL, Tiger Woods, PGA TOUR, NBA, NCAA, NASCAR Thunder and FIFA are trademarks of their respective owners and used with permission. PlayStation is a registered trademark of Sony Computer Entertainment Inc. Xbox is a trademark of Microsoft Corporation in the U.S. and/or other countries and used under license. Nintendo GameCube is a trademark of Nintendo. All other trademarks are the property of their respective owners.

 

For additional information, please contact:

 

Karen Sansot

   Jeff Brown

Director, Investor Relations

   Vice President, Corporate Communications

650-628-5597

   650-628-7922

 

3


ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

 

    

Three Months Ended

September 30,


   

Six Months Ended

September 30,


 
     2003

   2002

    2003

   2002

 

Net revenue

   $ 530,005    $ 453,490     $ 883,386    $ 785,388  

Cost of goods sold

     213,762      200,867       363,725      343,321  
    

  


 

  


Gross profit

     316,243      252,623       519,661      442,067  

Operating expenses:

                              

Marketing and sales

     64,041      55,514       123,125      120,888  

General and administrative

     36,032      27,453       66,792      53,116  

Research and development

     113,493      96,164       204,615      186,044  

Amortization of intangibles

     810      2,246       1,490      4,491  
    

  


 

  


Total operating expenses

     214,376      181,377       396,022      364,539  
    

  


 

  


Operating income

     101,867      71,246       123,639      77,528  

Interest and other income, net

     9,130      1,177       13,979      4,324  
    

  


 

  


Income before provision for income taxes and minority interest

     110,997      72,423       137,618      81,852  

Provision for income taxes

     34,409      22,451       42,662      25,374  
    

  


 

  


Income before minority interest

     76,588      49,972       94,956      56,478  

Minority interest in consolidated joint venture

     —        262       —        1,160  
    

  


 

  


Net income

   $ 76,588    $ 50,234     $ 94,956    $ 57,638  
    

  


 

  


Class A common stock:

                              

Net income:

                              

Diluted

   $ 76,588    $ 50,234     $ 94,956    $ 57,638  

Basic

   $ 76,588    $ 53,407     $ 94,956    $ 63,801  

Earnings per share:

                              

Diluted

   $ 0.50    $ 0.34     $ 0.62    $ 0.39  

Basic

   $ 0.52    $ 0.38     $ 0.65    $ 0.46  

Number of shares used in computation:

                              

Diluted

     153,890      146,619       152,006      146,269  

Basic

     147,418      139,843       146,132      139,317  

Class B common stock:

                              

Net loss, net of retained interest in EA.com

     N/A    $ (3,173 )     N/A    $ (6,163 )

Net loss per share:

                              

Diluted

     N/A    $ (0.57 )     N/A    $ (1.07 )

Basic

     N/A    $ (0.57 )     N/A    $ (1.07 )

Number of shares used in computation:

                              

Diluted

     N/A      5,547       N/A      5,759  

Basic

     N/A      5,547       N/A      5,759  

 

Non-GAAP Results (In thousands, except per share data)

 

The following table shows the Company’s non-GAAP results reconciled to the Generally Accepted Accounting Principles (“GAAP”) Consolidated Statements of Operations. The Company’s non-GAAP results do not include amortization of intangibles, restructuring charges, asset impairment charges, other-than-temporary impairment of investments in affiliates and charges for acquired in-process technology. In addition, income taxes are calculated on a consolidated effective tax rate of 31%.

 

    

Three Months Ended

September 30,


   

Six Months Ended

September 30,


 
     2003

    2002

    2003

    2002

 

Net income

   $ 76,588     $ 50,234     $ 94,956     $ 57,638  

Amortization of intangibles

     810       2,246       1,490       4,491  

Income taxes effect on the above items

     (251 )     (696 )     (462 )     (1,392 )
    


 


 


 


Non-GAAP net income

   $ 77,147     $ 51,784     $ 95,984     $ 60,737  
    


 


 


 


Class A common stock:

                                

Non-GAAP diluted earnings per share

   $ 0.50     $ 0.35     $ 0.63     $ 0.42  

Number of shares used in diluted earnings per share computation

     153,890       146,619       152,006       146,269  

 


ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

    

September 30,

2003


  

March 31,

2003 (a)


ASSETS

             

Current assets:

             

Cash, cash equivalents and short-term investments

   $ 1,734,174    $ 1,587,618

Marketable equity securities

     771      1,111

Receivables, less allowances of $126,806 and $164,634, respectively

     202,802      82,083

Inventories, net (b)

     39,209      39,679

Deferred income taxes

     117,682      117,180

Other current assets (b)

     98,405      83,466
    

  

Total current assets

     2,193,043      1,911,137

Property and equipment, net

     273,305      262,252

Investment in affiliates

     12,909      20,277

Goodwill

     88,650      86,031

Other intangibles, net

     19,784      21,301

Long-term deferred income taxes

     13,840      13,523

Other assets

     15,503      45,012
    

  

Total Assets

   $ 2,617,034    $ 2,359,533
    

  

LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS’ EQUITY

             

Current liabilities:

             

Accounts payable

   $ 129,348    $ 106,329

Accrued and other liabilities

     416,251      464,547
    

  

Total current liabilities

     545,599      570,876

Minority interest in consolidated joint venture

     —        3,918

Stockholders’ equity:

             

Common stock

     1,487      1,443

Paid-in capital

     1,038,202      857,870

Retained earnings

     1,018,848      923,892

Accumulated other comprehensive income

     12,898      1,534
    

  

Total stockholders’ equity

     2,071,435      1,784,739
    

  

Total Liabilities, Minority Interest and Stockholders’ Equity

   $ 2,617,034    $ 2,359,533
    

  

 

(a) Derived from audited financial statements.
(b) The March 31, 2003 balance sheet reflects a $14.5 million reclassification of prepaid manufacturing royalties from Other current assets to Inventories, net to conform to fiscal 2004 presentation.

 


ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

 

    

Three Months Ended

September 30,


   

Six Months Ended

September 30,


 
     2003

    2002

    2003

    2002

 

OPERATING ACTIVITIES

                                

Net income

   $ 76,588     $ 50,234     $ 94,956     $ 57,638  

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

                                

Minority interest in consolidated joint venture

     —         (262 )     —         (1,160 )

Equity in net income of investment in affiliates

     (113 )     (1,074 )     (113 )     (1,313 )

Depreciation and amortization

     17,624       25,067       30,847       49,373  

Other-than-temporary impairment of investment in affiliates and marketable securities

     589       2,359       589       2,830  

(Gain)/ loss on sale of property, equipment and marketable securities

     (8 )     20       45       115  

Stock-based compensation

     235       1,007       429       2,161  

Tax benefit from exercise of stock options

     20,026       11,666       40,169       16,866  

Change in assets and liabilities:

                                

Account receivables, net

     (188,832 )     (19,248 )     (133,034 )     52,900  

Inventories, net

     (13,928 )     (33,502 )     (406 )     (38,586 )

Other assets

     16,928       (30,552 )     13,167       (59,870 )

Accounts payable

     71,372       33,963       25,309       31,726  

Accrued and other liabilities

     62,077       39,248       (43,711 )     (27,111 )
    


 


 


 


Net cash provided by operating activities

     62,558       78,926       28,247       85,569  
    


 


 


 


INVESTING ACTIVITIES

                                

Proceeds from sale of property and equipment

     50       32       88       411  

Proceeds from sale of investment in affiliate

     —         —         8,467       —    

Capital expenditures

     (16,503 )     (14,977 )     (28,690 )     (23,386 )

Purchase of investment in affiliate

     —         (251 )     —         (405 )

Purchases of short-term investments

     (539,403 )     (240,480 )     (1,270,579 )     (264,480 )

Proceeds from maturities and sales of short-term investments

     (9,954 )     186,481       547,792       218,268  

Distribution from investment in affiliate

     —         3,000       —         3,000  

Acquisition of subsidiary, net of cash required

     —         (12,868 )     —         (12,868 )
    


 


 


 


Net cash used in investing activities

     (565,810 )     (79,063 )     (742,922 )     (79,460 )
    


 


 


 


FINANCING ACTIVITIES

                                

Proceeds from sale of common stock through employee stock plans and other plans

     67,010       41,388       139,875       61,282  

Purchase of Class B common stock

     (225 )     —         (225 )     —    

Dividend to joint venture and purchase of minority interest investment

     —         —         (5,100 )     —    

Proceeds from minority interest investment

     —         (751 )     —         (751 )

Repayment of Class B notes receivable

     (7 )     —         128       —    
    


 


 


 


Net cash provided by financing activities

     66,778       40,637       134,678       60,531  
    


 


 


 


Effect of foreign exchange on cash and cash equivalents

     1,902       (1,567 )     6,127       8,005  
    


 


 


 


Increase (decrease) in cash and cash equivalents

     (434,572 )     38,933       (573,870 )     74,645  

Beginning cash and cash equivalents

     810,697       588,538       949,995       552,826  
    


 


 


 


Ending cash and cash equivalents

     376,125       627,471       376,125       627,471  

Short-term investments

     1,358,049       293,297       1,358,049       293,297  
    


 


 


 


Ending cash, cash equivalents and short-term investments

   $ 1,734,174     $ 920,768     $ 1,734,174     $ 920,768  
    


 


 


 



ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations

(in millions, except per share data)

 

The following tables show the Company’s non-GAAP results reconciled to the Generally Accepted Accounting Principles (“GAAP”) Consolidated Statements of Operations. The Company’s non-GAAP results do not include amortization of intangibles, restructuring charges, asset impairment charges, other-than-temporary impairment of investments in affiliates, charges for acquired in-process technology and their related income tax effect.

 

     Q2 FY03     Q3 FY03     Q4 FY03     Q1 FY04     Q2 FY04  

QUARTERLY RESULTS

                                        

Operating Income

                                        

GAAP operating income

   $ 71     $ 369     $ 10     $ 22     $ 102  

Adjustments:

                                        

Amortization of intangibles

     2       3       1       —         1  

Restructuring charges

     —         8       7       —         —    

Asset impairment charges

     —         2       64       —         —    
    


 


 


 


 


Total adjustments

     2       13       72       —         1  

Non-GAAP operating income

   $ 73     $ 382     $ 82     $ 22     $ 103  
    


 


 


 


 


Non-GAAP operating income margin—% of net revenue

     16 %     31 %     18 %     6 %     19 %

Net Income

                                        

GAAP net income

   $ 50     $ 250     $ 9     $ 18     $ 77  

Adjustments:

                                        

Amortization of intangibles

     2       3       1       1       —    

Restructuring charges

     —         8       7       —         —    

Asset impairment charges

     —         2       64       —         —    

Other-than-temporary impairment of investment in affiliates

     —         10       —         —         —    

Income taxes effect on the above items

     —         (8 )     (22 )     —         —    
    


 


 


 


 


Total adjustments

     2       15       50       1       —    

Non-GAAP net income

   $ 52     $ 265     $ 59     $ 19     $ 77  
    


 


 


 


 


Non-GAAP net income margin—% of net revenue

     11 %     21 %     13 %     5 %     15 %

GAAP diluted earnings per share

   $ 0.34     $ 1.69     $ 0.06     $ 0.12     $ 0.50  

Non-GAAP diluted earnings per share

   $ 0.35     $ 1.79     $ 0.40     $ 0.13     $ 0.50  

Number of shares used in diluted earnings per share computation

     147       148       147       150       154  

TRAILING TWELVE MONTH RESULTS

                                        

Operating Income

                                        

GAAP operating income

   $ 333     $ 513     $ 456     $ 472     $ 503  

Adjustments:

                                        

Amortization of intangibles

     16       13       8       6       5  

Restructuring charges

     7       8       15       15       15  

Asset impairment charges

     14       9       66       66       66  
    


 


 


 


 


Total adjustments

     37       30       89       87       86  

Non-GAAP operating income

   $ 370     $ 543     $ 545     $ 559     $ 589  
    


 


 


 


 


Non-GAAP operating income margin—% of net revenue

     18 %     22 %     22 %     22 %     23 %

Net Income

                                        

GAAP net income

   $ 237     $ 355     $ 317     $ 328     $ 354  

Adjustments:

                                        

Amortization of intangibles

     16       13       8       7       5  

Restructuring charges

     7       8       15       15       15  

Asset impairment charges

     14       9       66       66       66  

Other-than-temporary impairment of investment in affiliates

     —         10       10       10       10  

Income taxes effect on the above items

     (11 )     (13 )     (31 )     (31 )     (30 )
    


 


 


 


 


Total adjustments

     26       27       68       67       66  

Non-GAAP net income

   $ 263     $ 382     $ 385     $ 395     $ 420  
    


 


 


 


 


Non-GAAP net income margin—% of net revenue

     13 %     15 %     16 %     16 %     16 %

GAAP diluted earnings per share

   $ 1.64     $ 2.41     $ 2.17     $ 2.21     $ 2.37  

Non-GAAP diluted earnings per share

   $ 1.82     $ 2.59     $ 2.63     $ 2.67     $ 2.82  

Number of shares used in diluted earnings per share computation

     145       147       146       148       149  


ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

($ in millions, except per share data, SKU count and Headcount)

 

     Q2
FY03
    Q3
FY03
    Q4
FY03
    Q1
FY04
    Q2
FY04
   

YOY %

Growth

 

CONSOLIDATED FINANCIAL DATA

                                              

Net revenue

     453       1,234       463       353       530     17 %

Net revenue—trailing twelve months (“TTM”)

     2,088       2,489       2,482       2,503       2,580     24 %

Gross profit

     253       668       299       203       316     25 %

Gross margin—% of net revenue

     56 %     54 %     65 %     58 %     60 %      

Gross profit—TTM

     1,138       1,375       1,409       1,423       1,486     31 %

Gross margin—TTM % of net revenue

     55 %     55 %     57 %     57 %     58 %      

Operating income

     71       369       10       22       102     43 %

Operating income margin—% of net revenue

     16 %     30 %     2 %     6 %     19 %      

Operating income—TTM

     333       513       456       472       503     51 %

Operating income margin—TTM % of net revenue

     16 %     21 %     18 %     19 %     19 %      

Net income

     50       250       9       18       77     52 %

Diluted earnings per share

   $ 0.34     $ 1.69     $ 0.06     $ 0.12     $ 0.50     47 %

Net income—TTM

     237       355       317       328       354     49 %

Diluted earnings per share—TTM

   $ 1.64     $ 2.41     $ 2.17     $ 2.21     $ 2.37     45 %

Non-GAAP operating income (a)

     73       382       82       22       103     40 %

Non-GAAP operating income margin—% of net revenue

     16 %     31 %     18 %     6 %     19 %      

Non-GAAP operating income—TTM (a)

     370       543       545       559       589     59 %

Non-GAAP operating income margin—TTM % of net revenue

     18 %     22 %     22 %     22 %     23 %      

Non-GAAP net income (a)

     52       265       59       19       77     49 %

Non-GAAP diluted earnings per share (a)

   $ 0.35     $ 1.79     $ 0.40     $ 0.13     $ 0.50     43 %

Non-GAAP net income—TTM (a)

     263       382       385       395       420     60 %

Non-GAAP diluted earnings per share—TTM (a)

   $ 1.82     $ 2.59     $ 2.63     $ 2.67     $ 2.82     55 %

CASH FLOW DATA

                                              

Operating cash flow

     79       197       431       (34 )     63     (21 )%

Operating cash flow—TTM

     454       579       714       673       657     45 %

Capital expenditures

     15       11       25       12       17     10 %

Capital expenditures—TTM

     45       46       59       63       65     43 %

BALANCE SHEET DATA

                                              

Cash, cash equivalents and short term investments

     921       1,165       1,588       1,622       1,734     88 %

Marketable equity securities

     6       1       1       1       1     (88 )%

Account receivables, net

     139       609       82       37       203     46 %

Inventories, net

     73       54       40       26       39     (47 )%

OTHER

                                              

Employees

     3,704       3,788       3,938       4,017       4,180     13 %

 

(a) Please see attached Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations.

 


ELECTRONIC ARTS INC. AND SUBSIDARIES

Unaudited Supplemental Financial Information and Business Metrics

($ in millions, except per share data, SKU count and Headcount)

 

     Q2 FY03     Q3 FY03     Q4 FY03     Q1 FY04     Q2 FY04    

YOY%

Growth

 

GEOGRAPHIC REVENUE MIX

                                    

North America Revenue

   313     696     253     199     358     14 %

Revenue outside North America

   140     538     210     154     172     23 %

Europe Revenue

   117     471     165     128     145     24 %

Japan Revenue

   9     29     25     12     9     (3 %)

Asia Pacific Revenue

   14     38     20     14     18     28 %
    

 

 

 

 

     

Net Revenue

   453     1,234     463     353     530     17 %

GEOGRAPHIC REVENUE MIX—as a % of Net Revenue

                                    

North America Revenue

   69 %   57 %   55 %   56 %   68 %      

Revenue outside North America

   31 %   43 %   45 %   44 %   32 %      

Europe Revenue

   26 %   38 %   36 %   36 %   27 %      

Japan Revenue

   2 %   2 %   5 %   4 %   2 %      

Asia Pacific Revenue

   3 %   3 %   4 %   4 %   3 %      
    

 

 

 

 

     

Net Revenue

   100 %   100 %   100 %   100 %   100 %      

PLATFORM REVENUE MIX

                                    

Sony PlayStation 2

   159     460     158     118     221     39 %

PC

   82     219     122     80     93     13 %

Xbox

   37     117     45     31     69     83 %

Nintendo GameCube

   28     111     23     21     25     (12 %)

Game Boy Advance

   4     68     5     2     4     4 %

Sony PlayStation

   24     54     9     6     8     (69 %)

Co-publishing and Distribution

   96     157     75     72     92     (4 %)

Subscription Services

   8     12     17     14     11     34 %

Advertising, Programming, Licensing and Other

   15     36     9     9     7     (47 %)
    

 

 

 

 

     

Net Revenue

   453     1,234     463     353     530     17 %

PLATFORM REVENUE MIX—as a % of Net Revenue

                                    

Sony PlayStation 2

   35 %   37 %   34 %   33 %   42 %      

PC

   18 %   18 %   26 %   23 %   18 %      

Xbox

   8 %   9 %   10 %   9 %   13 %      

Nintendo GameCube

   6 %   9 %   5 %   6 %   5 %      

Game Boy Advance

   1 %   6 %   1 %   1 %   1 %      

Sony PlayStation

   6 %   4 %   2 %   2 %   1 %      

Co-publishing and Distribution

   21 %   13 %   16 %   20 %   17 %      

Subscription Services

   2 %   1 %   4 %   4 %   2 %      

Advertising, Programming, Licensing and Other

   3 %   3 %   2 %   2 %   1 %      
    

 

 

 

 

     

Net Revenue

   100 %   100 %   100 %   100 %   100 %      

Platform SKU Release Mix

                                    

Sony PlayStation 2

   4     9     2     3     6     50 %

PC

   3     9     3     2     10     233 %

Xbox

   3     8     3     2     5     67 %

Nintendo GameCube

   4     9     2     3     4     0 %

Game Boy Advance

   1     4     1     —       1     0 %

Sony PlayStation

   2     3     —       —       2     0 %

Online and Other

   1     2     1     —       —       (100 %)
    

 

 

 

 

     

Total SKUs

   18     44     12     10     28     56 %
    

 

 

 

 

     


ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Fact Sheet for Q2 Fiscal 2004

 

Q2 Product Releases    Platform

Ÿ

   EA SPORTS Rugby 2004    PlayStation®2

Ÿ

   Madden NFL 2004    PlayStation 2

Ÿ

   NASCAR Thunder 2004    PlayStation 2

Ÿ

   NCAA® Football 2004    PlayStation 2

Ÿ

   NHL® 2004    PlayStation 2

Ÿ

   Tiger Woods PGA TOUR® 2004    PlayStation 2

Ÿ

   Madden NFL 2004    Xbox

Ÿ

   NASCAR Thunder 2004    Xbox

Ÿ

   NCAA Football 2004    Xbox

Ÿ

   NHL 2004    Xbox

Ÿ

   Tiger Woods PGA TOUR 2004    Xbox

Ÿ

   Madden NFL 2004    Nintendo GameCube

Ÿ

   NCAA Football 2004    Nintendo GameCube

Ÿ

   NHL 2004    Nintendo GameCube

Ÿ

   Tiger Woods PGA TOUR 2004    Nintendo GameCube

Ÿ

   Madden NFL 2004    PlayStation

Ÿ

   NASCAR Thunder 2004    PlayStation

Ÿ

   Madden NFL 2004    Game Boy® Advance

Ÿ

   EA SPORTS Rugby 2004    PC

Ÿ

   Command & Conquer Generals Zero Hour    PC

Ÿ

   Madden NFL 2004    PC

Ÿ

   Medal of Honor Allied Assault Breakthrough    PC

Ÿ

   NASCAR Thunder 2004    PC

Ÿ

   NHL 2004    PC

Ÿ

   SimCity 4 Deluxe Edition    PC

Ÿ

   SimCity 4 Rush Hour    PC

Ÿ

   The Sims Double Deluxe    PC

Ÿ

   Tiger Woods PGA TOUR 2004    PC
Co-pub, International only and Others (not in SKU count)

Ÿ

   Aliens Natural Selection    PlayStation 2

Ÿ

   Freedom Fighters    PlayStation 2

Ÿ

   Soul Calibur II    PlayStation 2

Ÿ

   Aliens Natural Selection    Xbox

Ÿ

   Freedom Fighters    Xbox

Ÿ

   Soul Calibur II    Xbox

Ÿ

   Disney’s Party    Nintendo GameCube

Ÿ

   Drome Racers    Nintendo GameCube

Ÿ

   Freedom Fighters    Nintendo GameCube

Ÿ

   Disney’s Party    Game Boy® Advance

Ÿ

   Battlefield 1942: Secret Weapons of WWII    PC

Ÿ

   Freedom Fighters    PC

 

All trademarks are the property of their respective owners.