Business Wire | Aug 4, 2021 04:01PM EDT

Electronic Arts Reports Q1 FY22 Financial Results

Aug. 04, 2021

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Aug. 04, 2021--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its first fiscal quarter ended June 30, 2021.

"We've had a very strong start to the fiscal year with our incredible teams delivering experiences that continue to bring hundreds of millions of players together," said Andrew Wilson, CEO of Electronic Arts. "Our new launches, leading games, and live services all had an outstanding quarter. With our expanding EA SPORTS portfolio, more amazing experiences in Apex Legends, the groundbreaking new Battlefield 2042, and our leading live services including mobile, we're set to deliver more great games and content to players this year."

"We delivered a big beat this quarter, primarily driven by outperformance from our recent launches coupled with continued strong execution in our live services," said COO and CFO Blake Jorgensen. "We're looking forward to the launches of our sports titles this quarter and Battlefield 2042 in time for the holidays. Based on our strong performance this quarter and supported by our ongoing confidence in our live services, we are raising our outlook for the full year. Our strategic position has never been stronger, with growth drivers in place for this year, next year, and beyond."

Selected Operating Highlights and Metrics

* Net bookings1 for the trailing twelve months was $6.136 billion, up 3% year-over-year. * More than 140 million players engaged with EA SPORTSTM games over the trailing twelve months. * Over 31 million players joined FIFA 21 on console and PC since launch. * FIFA Ultimate TeamTM matches are up 48% year-over-year for the quarter. * Season 9 for Apex LegendsTM averaged more than 13 million weekly active players and set a new record for peak daily players across all seasons.

Selected Financial Highlights and Metrics

* Net cash (used in)/provided by operating activities was $(143) million for the quarter and $1.413 billion for the trailing twelve months. * EA repurchased 2.3 million shares for $325 million during the quarter, bringing the total for the last twelve months to 7.2 million shares for $976 million. * EA paid a cash dividend of $0.17 per share during the quarter.

Dividend

EA has declared a quarterly cash dividend of $0.17 per share of the Company's common stock. The dividend is payable on September 22, 2021 to shareholders of record as of the close of business on September 1, 2021.

Quarterly Financial Highlights

Three Months Ended June 30, 2021 2020

(in $ millions, except per share amounts)Full game 322 359

Live services and other 1,229 1,100

Total net revenue 1,551 1,459

Net income 204 365

Diluted earnings per share 0.71 1.25

Operating cash flow (143 ) 378

Value of shares repurchased 325 78

Number of shares repurchased 2.3 0.7

The following GAAP-based financial data2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA's operating results:

Three Months Ended June 30, 2021

GAAP-Based Financial Data Change in Statement Acquisition- deferred(in $ millions) of related net Stock-based Operations expenses revenue compensation (online- enabled games)Total net revenue 1,551 - (215 ) -

Cost of revenue 315 (22 ) - (1 )

Gross profit 1,236 22 (215 ) 1

Total operating expenses 914 (40 ) - (124 )

Operating income 322 62 (215 ) 125

Interest and other income (14 ) - - - (expense), netIncome before provision for 308 62 (215 ) 125 income taxesNumber of shares used incomputation:Diluted 289

Trailing Twelve Months Financial Highlights

Twelve Months EndedJune 30,2021

2020

(in $ millions)Full game1,576

1,984

Live services and other4,145

3,803

Total net revenue5,721

5,787

Net income676

1,983*Operating cash flow1,413

2,017

Value of shares repurchased976

980

Number of shares repurchased7.2

9.8

*Includes the impact of one-time tax benefits recognized during the period. The following GAAP-based financial data2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA's operating results:

Trailing Twelve Months Financial Highlights

Twelve Months Ended June 30, 2021 2020

(in $ millions)Full game 1,576 1,984

Live services and other 4,145 3,803

Total net revenue 5,721 5,787

Net income 676 1,983*

Operating cash flow 1,413 2,017

Value of shares repurchased 976 980

Number of shares repurchased 7.2 9.8

*Includes the impact of one-time tax benefits recognized during the period. The following GAAP-based financial data2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA's operating results:

Twelve Months Ended June 30, 2021 GAAP-Based Financial Data Change in deferred Statement Acquisition- net Stock-based(in $ millions) of related revenue compensation Operations expenses (online- enabled games)Total net revenue 5,721 - 415 -

Cost of revenue 1,521 (26 ) - (5 )

Gross profit 4,200 26 415 5

Total operating expenses 3,303 (65 ) - (453 )

Operating income 897 91 415 458

Interest and other income (40 ) - - - (expense), netIncome before provision for 857 91 415 458 income taxes Operating Metric

The following is a calculation of our total net bookings1 for the periods presented:

Three Months Twelve Months Ended Ended June 30, June 30, 2021 2020 2021 2020

(in $ millions)Total net revenue 1,551 1,459 5,721 5,787

Change in deferred net revenue (215 ) (69 ) 415 193(online-enabled games)Net bookings 1,336 1,390 6,136 5,980

Business Outlook as of August 4, 2021

Our financial expectations for the second fiscal quarter ending September 30, 2021 and the fiscal year ending March 31, 2022 include estimates of the impact of our completed acquisitions on consolidated results. The GAAP and operating cash flow estimates could be materially impacted as we integrate these recent acquisitions.

Fiscal Year 2022 Expectations - Ending March 31, 2022

Financial metrics:

* Net revenue is expected to be approximately $6.850 billion. Change in deferred net revenue (online-enabled games) is expected to be approximately $550 million. * Net income is expected to be approximately $456 million. * Diluted earnings per share is expected to be approximately $1.58. * Operating cash flow is expected to be approximately $1.850 billion. * The Company estimates a share count of 289 million for purposes of calculating fiscal year 2022 diluted earnings per share.

Operational metric:

* Net bookings1 is expected to be approximately $7.400 billion.

In addition, the following outlook for GAAP-based financial data2 and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA's operating results and plan for future periods:

Twelve Months Ending March 31, 2022 GAAP-Based Financial Data Change in deferred GAAP Acquisition- net Stock-based Guidance related revenue compensation expenses (online- enabled games)(in $ millions)Total net revenue 6,850 - 550 -

Cost of revenue 1,921 (140 ) - (5 )

Operating expense 4,015 (160 ) - (545 )

Income before provision for 856 300 550 550 income taxesNet income 456

Number of shares used incomputation:Diluted shares 289

Second Quarter Fiscal Year 2022 Expectations - Ending September 30, 2021

Financial metrics:

* Net revenue is expected to be approximately $1.775 billion. Change in deferred net revenue (online-enabled games) is expected to be approximately $(50) million. * Net income is expected to be approximately $105 million. * Diluted earnings per share is expected to be approximately $0.36. * The Company estimates a share count of 288 million for purposes of calculating second quarter fiscal 2022 diluted earnings per share.

Operational metric:

* Net bookings1 is expected to be approximately $1.725 billion.

In addition, the following outlook for GAAP-based financial data2 and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA's operating results and plan for future periods:

Three Months Ending September 30, 2021 GAAP-Based Financial Data Change in Acquisition- deferred GAAP related net Stock-based Guidance expenses revenue compensation (online- enabled games)(in $ millions)Total net revenue 1,775 - (50 ) -

Cost of revenue 518 (35 ) - -

Operating expense 1,030 (40 ) - (150 )

Income before provision for 212 75 (50 ) 150 income taxesNet income 105

Number of shares used incomputation:Diluted shares 288

Conference Call and Supporting Documents

Electronic Arts will host a conference call on August 4, 2021 at 2:00 pm PT (5:00 pm ET) to review its results for the fiscal quarter ended June 30, 2021 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (866) 324-3683 (domestic) or (509) 844-0959 (international), using the conference code 1183378 or via webcast at EA's IR Website at http://ir.ea.com.

EA has posted a slide presentation with a financial model of EA's historical results and guidance on EA's IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA's IR Website.

A dial-in replay of the conference call will be available until August 18, 2021 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 1183378. An audio webcast replay of the conference call will be available for one year on EA's IR Website.

Forward-Looking Statements

Some statements set forth in this release, including the information relating to EA's expectations under the heading "Business Outlook as of August 4, 2021," and other information regarding EA's fiscal 2022 expectations contain forward-looking statements that are subject to change. Statements including words such as "anticipate," "believe," "expect," "intend," "estimate," "plan," "predict," "seek," "goal," "will," "may," "likely," "should," "could" (and the negative of any of these terms), "future" and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management's current expectations. Our actual results could differ materially from those discussed in the forward-looking statements.

Some of the factors which could cause the Company's results to differ materially from its expectations include the following: the impact of the COVID-19 pandemic, sales of the Company's products and services; the Company's ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company's ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company's sales and marketing programs; timely development and release of the Company's products and services; the Company's ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company's ability to predict consumer preferences among competing platforms; the Company's ability to develop and implement new technology; foreign currency exchange rate fluctuations; general economic conditions; changes in our tax rates or tax laws; and other factors described in Part I, Item 1A of Electronic Arts' latest Annual Report on Form 10-K under the heading "Risk Factors", as well as in other documents we have filed with the Securities and Exchange Commission.

These forward-looking statements are current as of August 4, 2021. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.

While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2021. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended June 30, 2021.

About Electronic Arts

Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.

In fiscal year 2021, EA posted GAAP net revenue of $5.6 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS(tm) FIFA, Battlefield(tm), Apex Legends(tm), The Sims(tm), Madden NFL, Need for Speed(tm), Titanfall(tm), Plants vs. Zombies(tm) and F1(r). More information about EA is available at www.ea.com/news.

EA SPORTS, Ultimate Team, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.

Net bookings is defined as the net amount of products and services sold^ digitally or sold-in physically in the period. Net bookings is calculated by1 adding total net revenue to the change in deferred net revenue for online-enabled games.

^ For more information about the nature of the GAAP-based financial data,2 please refer to EA's Form 10-K for the fiscal year ended March 31, 2021.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)

Three Months Ended

June 30,

2021

2020

Net revenue

1,551

1,459

Cost of revenue

315

288

Gross profit

1,236

1,171

Operating expenses:

Research and development

515

438

Marketing and sales

190

121

General and administrative

169

136

Amortization of intangibles

40

5

Total operating expenses

914

700

Operating income

322

471

Interest and other income (expense), net

(14

)

(3

)

Income before provision for income taxes

308

468

Provision for income taxes

104

103

Net income

204

365

Earnings per share

Basic

0.71

1.27

Diluted

0.71

1.25

Number of shares used in computation

Basic

286

288

Diluted

289

292

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on May 11, 2021 for the three months ended June 30, 2021 plus a comparison to the actuals for the three months ended June 30, 2020.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)



Three Months Ended

June 30,

2021 2020

Net revenue 1,551 1,459

Cost of revenue 315 288

Gross profit 1,236 1,171

Operating expenses:

Research and development 515 438

Marketing and sales 190 121

General and administrative 169 136

Amortization of intangibles 40 5

Total operating expenses 914 700

Operating income 322 471

Interest and other income (expense), net (14 ) (3 )

Income before provision for income taxes 308 468

Provision for income taxes 104 103

Net income 204 365

Earnings per share

Basic 0.71 1.27

Diluted 0.71 1.25

Number of shares used in computation

Basic 286 288

Diluted 289 292

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on May 11, 2021 for the three months ended June 30, 2021 plus a comparison to the actuals for the three months ended June 30, 2020.

Three Months Ended June 30,

2021 2021 2020

Guidance Variance Actuals Actuals

Net revenue

Net revenue 1,475 76 1,551 1,459

GAAP-based financial data

Change in deferred net revenue (225 ) 10 (215 ) (69 ) (online-enabled games)^1

Cost of revenue

Cost of revenue 287 28 315 288

GAAP-based financial data

Acquisition-related expenses (5 ) (17 ) (22 ) -

Stock-based compensation - (1 ) (1 ) (1 )

Operating expenses

Operating expenses 955 (41 ) 914 700

GAAP-based financial data

Acquisition-related expenses (70 ) 30 (40 ) (5 )

Stock-based compensation (125 ) 1 (124 ) (101 )

Income before tax

Income before tax 220 88 308 468

GAAP-based financial data

Acquisition-related expenses 75 (13 ) 62 5

Change in deferred net revenue (225 ) 10 (215 ) (69 ) (online-enabled games)^1

Stock-based compensation 125 - 125 102

Tax rate used for management reporting 18 % 18 % 18 %

Earnings per share

Basic 0.24 0.47 0.71 1.27

Diluted 0.24 0.47 0.71 1.25

Number of shares

Basic 287 (1 ) 286 288

Diluted 291 (2 ) 289 292

1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in $ millions)



June 30, 2021 March 31, 2021^2

ASSETS

Current assets:

Cash and cash equivalents 2,838 5,260

Short-term investments 881 1,106

Receivables, net 557 521

Other current assets 401 326

Total current assets 4,677 7,213

Property and equipment, net 510 491

Goodwill 4,256 2,868

Acquisition-related intangibles, net 909 309

Deferred income taxes, net 1,960 2,045

Other assets 422 362

TOTAL ASSETS 12,734 13,288

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable 73 96

Accrued and other current liabilities 1,093 1,341

Deferred net revenue (online-enabled games) 1,305 1,527

Total current liabilities 2,471 2,964

Senior notes, net 1,877 1,876

Income tax obligations 321 315

Deferred income taxes, net 24 43

Other liabilities 313 250

Total liabilities 5,006 5,448



Stockholders' equity:

Common stock 3 3

Retained earnings 7,760 7,887

Accumulated other comprehensive loss (35 ) (50 )

Total stockholders' equity 7,728 7,840

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 12,734 13,288

2Derived from audited consolidated financial statements.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)



Three Months Ended June 30,

2021 2020

OPERATING ACTIVITIES

Net income 204 365

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

Depreciation, amortization and accretion 105 37

Stock-based compensation 125 102

Change in assets and liabilities

Receivables, net 12 (44 )

Other assets (74 ) 44

Accounts payable (19 ) (3 )

Accrued and other liabilities (302 ) (66 )

Deferred income taxes, net 28 10

Deferred net revenue (online-enabled games) (222 ) (67 )

Net cash provided by (used in) operating activities (143 ) 378

INVESTING ACTIVITIES

Capital expenditures (44 ) (38 )

Proceeds from maturities and sales of short-term 507 694 investments

Purchase of short-term investments (285 ) (664 )

Acquisitions, net of cash acquired (1,989 ) -

Net cash used in investing activities (1,811 ) (8 )

FINANCING ACTIVITIES

Proceeds from issuance of common stock - 3

Cash dividends paid (49 ) -

Cash paid to taxing authorities for shares withheld from (105 ) (69 )employees

Repurchase and retirement of common stock (325 ) (78 )

Net cash used in financing activities (479 ) (144 )

Effect of foreign exchange on cash and cash equivalents 11 19

Change in cash and cash equivalents (2,422 ) 245

Beginning cash and cash equivalents 5,260 3,768

Ending cash and cash equivalents 2,838 4,013

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

Q1

Q2

Q3

Q4

Q1

YOY %

FY21

FY21

FY21

FY21

FY22

Change

Net revenue

Net revenue

1,459

1,151

1,673

1,346

1,551

6

%

GAAP-based financial data

Change in deferred net revenue (online-enabled games)1

(69

)

(241

)

727

144

(215

)

Gross profit

Gross profit

1,171

865

1,072

1,027

1,236

6

%

Gross profit (as a % of net revenue)

80

%

75

%

64

%

76

%

80

%

GAAP-based financial data

Acquisition-related expenses

-

-

-

4

22

Change in deferred net revenue (online-enabled games)1

(69

)

(241

)

727

144

(215

)

Stock-based compensation

1

2

1

1

1

Operating income

Operating income

471

149

251

175

322

(32

%)

Operating income (as a % of net revenue)

32

%

13

%

15

%

13

%

21

%

GAAP-based financial data

Acquisition-related expenses

5

6

5

18

62

Change in deferred net revenue (online-enabled games)1

(69

)

(241

)

727

144

(215

)

Stock-based compensation

102

113

111

109

125

Net income

Net income

365

185

211

76

204

(44

%)

Net income (as a % of net revenue)

25

%

16

%

13

%

6

%

13

%

GAAP-based financial data

Acquisition-related expenses

5

6

5

18

62

Change in deferred net revenue (online-enabled games)1

(69

)

(241

)

727

144

(215

)

Stock-based compensation

102

113

111

109

125

Tax rate used for management reporting

18

%

18

%

18

%

18

%

18

%

Diluted earnings per share

1.25

0.63

0.72

0.26

0.71

(43

%)

Number of diluted shares used in computation

Basic

288

289

290

288

286

Diluted

292

293

292

290

289

1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)



Q1 Q2 Q3 Q4 Q1 YOY %

FY21 FY21 FY21 FY21 FY22 Change

Net revenue

Net revenue 1,459 1,151 1,673 1,346 1,551 6 %

GAAP-based financial data

Change in deferrednet revenue (69 ) (241 ) 727 144 (215 ) (online-enabledgames)^1

Gross profit

Gross profit 1,171 865 1,072 1,027 1,236 6 %

Gross profit (as a 80 % 75 % 64 % 76 % 80 % % of net revenue)

GAAP-based financial data

Acquisition-related - - - 4 22 expenses

Change in deferrednet revenue (69 ) (241 ) 727 144 (215 ) (online-enabledgames)^1

Stock-based 1 2 1 1 1 compensation

Operating income

Operating income 471 149 251 175 322 (32 %)

Operating income(as a % of net 32 % 13 % 15 % 13 % 21 % revenue)

GAAP-based financial data

Acquisition-related 5 6 5 18 62 expenses

Change in deferrednet revenue (69 ) (241 ) 727 144 (215 ) (online-enabledgames)^1

Stock-based 102 113 111 109 125 compensation

Net income

Net income 365 185 211 76 204 (44 %)

Net income (as a % 25 % 16 % 13 % 6 % 13 % of net revenue)

GAAP-based financial data

Acquisition-related 5 6 5 18 62 expenses

Change in deferrednet revenue (69 ) (241 ) 727 144 (215 ) (online-enabledgames)^1

Stock-based 102 113 111 109 125 compensation

Tax rate used formanagement 18 % 18 % 18 % 18 % 18 % reporting

Diluted earnings 1.25 0.63 0.72 0.26 0.71 (43 %)per share

Number of dilutedshares used in computation

Basic 288 289 290 288 286

Diluted 292 293 292 290 289

1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)



Q1 Q2 Q3 Q4 Q1 YOY %

FY21 FY21 FY21 FY21 FY22 Change

QUARTERLY NETREVENUE PRESENTATIONS

Net revenue by composition

Full game 223 163 347 185 233 4 %downloads

Packaged goods 136 119 375 65 89 (35 %)

Full game 359 282 722 250 322 (10 %)

Live services 1,100 869 951 1,096 1,229 12 %and other

Total net 1,459 1,151 1,673 1,346 1,551 6 %revenue

Full game 25 % 25 % 43 % 19 % 21 %

Live services 75 % 75 % 57 % 81 % 79 % and other

Total net 100 % 100 % 100 % 100 % 100 % revenue %

GAAP-based financial data

Full game (5 ) (2 ) 53 (19 ) (5 ) downloads

Packaged goods (67 ) (14 ) 83 (44 ) (35 )

Full game (72 ) (16 ) 136 (63 ) (40 )

Live services 3 (225 ) 591 207 (175 ) and other

Total change indeferred netrevenue (69 ) (241 ) 727 144 (215 ) (online-enabledgames) bycomposition^1



Net revenue by platform

Console 932 714 1,191 879 972 4 %

PC & Other 325 249 326 295 361 11 %

Mobile 202 188 156 172 218 8 %

Total net 1,459 1,151 1,673 1,346 1,551 6 %revenue

GAAP-based financial data

Console (108 ) (201 ) 619 71 (278 )

PC & Other 15 (24 ) 73 51 9

Mobile 24 (16 ) 35 22 54

Total change indeferred netrevenue (69 ) (241 ) 727 144 (215 ) (online-enabledgames) byplatform^1

1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)



Q1 Q2 Q3 Q4 Q1 YOY %

FY21 FY21 FY21 FY21 FY22 Change

CASH FLOW DATA

Operating cash flow 378 61 1,124 371 (143 ) (138 %)

Operating cash flow - TTM 2,017 2,041 2,061 1,934 1,413 (30 %)

Capital expenditures 38 25 30 31 44 16 %

Capital expenditures - TTM 133 131 133 124 130 (2 %)

Repurchase and retirement of 78 - 326 325 325 317 %common stock

Cash dividends paid - - 49 49 49 100 %

DEPRECIATION

Depreciation expense 31 32 37 38 40 29 %

BALANCE SHEET DATA

Cash and cash equivalents 4,013 4,059 4,772 5,260 2,838

Short-term investments 1,947 1,972 1,938 1,106 881

Cash and cash equivalents, and 5,960 6,031 6,710 6,366 3,719 (38 %)short-term investments

Receivables, net 507 423 778 521 557 10 %

STOCK-BASED COMPENSATION

Cost of revenue 1 2 1 1 1

Research and development 66 74 74 71 85

Marketing and sales 11 12 11 12 12

General and administrative 24 25 25 25 27

Total stock-based compensation 102 113 111 109 125

Category: Company News

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CONTACT: Chris Evenden Vice President, Investor Relations 650-628-0255 cevenden@ea.com

CONTACT: John Reseburg Vice President, Global Communications 650-628-3601 jreseburg@ea.com