Electronic Arts Reports Q4 FY17 and Full Year FY17 Financial Results
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Electronic Arts Reports Q4 FY17 and Full Year FY17 Financial Results

REDWOOD CITY, Calif. — (BUSINESS WIRE) — May 9, 2017 — Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth fiscal quarter and fiscal year ended March 31, 2017.

“Fiscal 2017 was a milestone year for Electronic Arts, defined by groundbreaking games and live services that delivered more fun and connected more players with their friends,” said Chief Executive Officer Andrew Wilson. “In Fiscal 2018, we are focused on innovating for our players with extraordinary new experiences across our portfolio, continuing to grow our global network, and extending our reach across new platforms and more ways to play.”

“We generated record net sales and operating cash flow in fiscal 2017, driven by our ongoing transition to digital as well as our increasing success with live services,” said Chief Financial Officer Blake Jorgensen. “Our long-term vision, to leverage deep player engagement to drive growth and profitability, is enabling us to execute on our near-term financial goals to increase revenue, earnings and cash generation.”

News and ongoing updates regarding EA and its games are available on EA’s blog at www.ea.com/news.

Selected Operating Highlights and Metrics:

* Net sales is defined as the net amount of products and services sold digitally or sold-in physically in the period.

Selected Financial Highlights and Metrics:

All financial measures are presented on a GAAP basis.

 

Quarterly Financial Highlights:

(in millions, except per share amounts)  
Three Months Ended March 31,
2017   2016
 
Digital net revenue $934 $715
Packaged goods and other net revenue 593 593
Total net revenue $1,527 $1,308
 
Net income $566 $899
Diluted earnings per share $1.81 $2.79*
 
Operating cash flow $407 $396
 
Value of shares repurchased $125 $634
Number of shares repurchased 1.5 9.9

*Included an income tax credit due to the reversal of the valuation allowance EA had against its U.S. deferred tax assets. This credit increased diluted GAAP earnings per share for the fourth quarter fiscal 2016 but had no impact on cash flow.

 

While EA no longer reports certain non-GAAP financial measures, the following GAAP-based financial data and a long-term tax rate of 21% are used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

 
Three Months Ended March 31, 2017
  GAAP-Based Financial Data
(in millions)

Statement of
Operations

Acquisition-
related
expenses

 

Change in
deferred net
revenue
(online-
enabled
games)

 

Stock-based
compensation

Net revenue $ 1,527 $ - $ (435 ) $ -
Cost of revenue   202     -     -     (1 )
Gross profit 1,325 - (435 ) 1
Total operating expenses   608     (1 )   -     (51 )
Operating income 717 1 (435 ) 52
Interest and other income (expense), net   (1 )   -     -     -  
Income before provision for income taxes $ 716 $ 1 $ (435 ) $ 52
Number of shares used in computation
Diluted 312
 

For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-Q for the quarter ended December 31, 2016.

 

Fiscal Year Financial Highlights:

(in millions, except per share amounts)
Twelve Months Ended March 31,
2017   2016
 
Digital net revenue $2,874 $2,409
Packaged goods and other net revenue 1,971 1,987
Total net revenue $4,845 $4,396
 
Net income $967 $1,156
Diluted earnings per share $3.08 $3.50*
 
Operating cash flow $1,383 $1,223
 
Value of shares repurchased $508 $1,018
Number of shares repurchased 6.5 15.7
 
*Included an income tax credit due to the reversal of the valuation allowance EA had against its U.S. deferred tax assets. This $453 million credit increased diluted GAAP earnings per share for fiscal year 2016 by $1.37 per share to $3.50, but had no impact on cash flow.
 

While EA no longer reports certain non-GAAP financial measures, the following GAAP-based financial data and a long-term tax rate of 21% are used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

 
Twelve Months Ended March 31, 2017
  GAAP-Based Financial Data
(in millions)

Statement of
Operations

Acquisition-
related
expenses

 

Amortization
of debt
discount and
loss on
conversion of
notes

 

Change in
deferred net
revenue
(online-
enabled
games)

 

Stock-based
compensation

Net revenue $ 4,845 $ - $ - $ 97 $ -
Cost of revenue   1,298     (43 )   -   -   (3 )
Gross profit 3,547 43 - 97 3
Total operating expenses   2,323     (6 )   -   -   (193 )
Operating income 1,224 49 - 97 196
Interest and other income (expense), net   (14 )   -     2   -   -  
Income before provision for income taxes $ 1,210 $ 49 $ 2 $ 97 $ 196
Number of shares used in computation
Diluted 314
 

Stock Repurchase Program

EA has announced a new program to repurchase up to $1.2 billion of EA’s common stock. This new stock repurchase program expires on May 31, 2019.

Under the program, EA may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. EA is not obligated to repurchase any specific number of shares under the program and the repurchase program may be modified, suspended or discontinued at any time.

Business Outlook as of May 9, 2017

The following forward-looking statements reflect expectations as of May 9, 2017. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in EA’s annual and quarterly SEC filings.

Fiscal Year 2018 Expectations – Ending March 31, 2018

Financial metrics:

Operational metric:

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 21% 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, 2018
  GAAP-Based Financial Data

GAAP
Guidance

Acquisition-
related
expenses

 

Change in
deferred net
revenue
(online-
enabled
games)

 

Stock-based
compensation

($ in millions)
 
Digital net revenue $ 3,295 - 80 -
Packaged goods & other net revenue     1,780   -     (55 )   -  
Total net revenue     5,075   -     25     -  
Cost of revenue 1,276 - - (1 )
Operating expense 2,420 (6 ) - (239 )
Income before provision for income taxes 1,364 6 25 240
Net income $ 1,125
Diluted shares 315
 

First Quarter Fiscal Year 2018 Expectations – Ending June 30, 2017

Financial metrics:

Operational metric:

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 21% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

 
Three Months Ending June 30, 2017
  GAAP-Based Financial Data

GAAP
Guidance

Acquisition-
related
expenses

 

Change in
deferred net
revenue
(online-
enabled
games)

 

Stock-based
compensation

($ in millions)
                 
Total net revenue   $ 1,425   -     (675 )   -  
Cost of revenue 157 - - -
Operating expense 546 (1 ) - (50 )
Income before provision for income taxes 724 1 (675 ) 50
Net income $ 605
Diluted shares 314
 

Impact of Recently Adopted Accounting Standard

Starting in Q1 fiscal 2018, EA will adopt FASB ASU 2016-09 related to stock-based compensation. The new guidance will require EA to change how it reports the cash effects of stock-based compensation in the statement of cash flow. It does not impact total cash and cash flow, but it does increase operating cash flow and decrease cash flow from financing activities. The following table reflects the impact of this standard on operating cash flow for the periods presented:

 
  Twelve Months Ended March 31,
2018   2017   2016
($ in millions) Guidance Actuals Actuals
Operating cash flow under current GAAP $ 1,440 $ 1,383 $ 1,223
Operating cash flow under ASU 2016-09 1,575 1,578 1,465
Impact of ASU 2016-09 on operating cash flow $ 135 $ 195 $ 242
 

Conference Call and Supporting Documents

Electronic Arts will host a conference call on May 9, 2017 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth quarter and fiscal year ended March 31, 2017 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 844-215-4106 (domestic) or 918-534-8313 (international), using the password “EA” or via webcast at EA’s IR Website at http://ir.ea.com.

EA has posted a slide presentation and 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 May 22, 2017 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 90756832. 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 fiscal 2018 expectations under the heading “Business Outlook as of May 9, 2017,” contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “estimate” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates and expectations based on current information and are subject to business and economic risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth 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: sales of the Company’s titles; the Company’s ability to develop and support digital products and services, including managing online security and privacy; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; the effectiveness of the Company’s sales and marketing programs; timely development and release of Electronic Arts’ products; the Company’s ability to realize the anticipated benefits of 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; and other factors described in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2016.

These forward-looking statements are current as of May 9, 2017. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements. 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2017. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2017.

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. EA has more than 300 million registered players around the world.

In fiscal year 2017, EA posted GAAP net revenue of $4.8 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as The Sims™, Madden NFL, EA SPORTS™ FIFA, Battlefield™, Need for Speed™, Dragon Age™ and Plants vs. Zombies™. More information about EA is available at www.ea.com/news.

Ultimate Team, EA SPORTS, Battlefield, Battlefield 4, The Sims, Need for Speed, Dragon Age, and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015, 2017 Lucasfilm Ltd. All rights reserved. John Madden, NFL and FIFA are the property of their respective owners and used with permission.

 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statement of Operations
(in $ millions, except share per data)
       

Three Months Ended
March 31,

Twelve Months Ended
March 31,

2017 2016 2017

20161

Net revenue
Product 887 695 2,640 2,497
Service and other 640   613   2,205   1,899  
Total net revenue 1,527 1,308 4,845 4,396
Cost of revenue
Product 97 70 893 938
Service and other 105   156   405   416  
Total cost of revenue 202   226   1,298   1,354  
Gross profit 1,325 1,082 3,547 3,042
Operating expenses:
Research and development 335 282 1,205 1,109
Marketing and sales 162 153 673 622
General and administrative 110 110 439 406
Amortization of intangibles 1   1   6   7  
Total operating expenses 608   546   2,323   2,144  
Operating income 717 536 1,224 898
Interest and other income (expense), net (1 ) (10 ) (14 ) (21 )
Income before provision for (benefit from) income taxes 716 526 1,210 877
Provision for (benefit from) income taxes 150   (373 ) 243   (279 )
Net income 566   899   967   1,156  
Earnings per share
Basic 1.84 2.93 3.19 3.73
Diluted 1.81 2.79 3.08 3.50
Number of shares used in computation
Basic 308 307 303 310
Diluted 312 322 314 330
 

1Derived from audited consolidated financial statements.

 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance for the three months ended March 31, 2017 plus a comparison to the actuals for the three months ended March 31, 2016.

  Three Months Ended March 31,
2017     2017   2016
Guidance Variance Actuals Actuals
Net revenue
Net revenue 1,482 45 1,527 1,308
GAAP-based financial data
Change in deferred net revenue (online-enabled games) (407 ) (28 ) (435 ) (384 )
Cost of revenue
Cost of revenue 242 (40 ) 202 226
GAAP-based financial data
Acquisition-related expenses (12 )
Stock-based compensation (1 ) (1 ) (1 )
Operating expenses
Operating expenses 591 17 608 546
GAAP-based financial data
Acquisition-related expenses (1 ) (1 ) (1 )
Stock-based compensation (50 ) (1 ) (51 ) (46 )
Income before tax
Income before tax 641 75 716 526
GAAP-based financial data
Acquisition-related expenses 1 1 13
Amortization of debt discount and loss on conversion of notes 5
Change in deferred net revenue (online-enabled games) (407 ) (28 ) (435 ) (384 )
Stock-based compensation 50 2 52 47
Tax rate used for management reporting 21 % 21 % 22 %
Earnings per share
Basic 1.66 0.18 1.84 2.93
Diluted 1.64 0.17 1.81 2.79
Number of shares
Basic 309 (1 ) 308 307
Diluted 313 (1 ) 312 322
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
   

March 31,
2017

March 31,
20161

ASSETS
Current assets:
Cash and cash equivalents 2,565 2,493
Short-term investments 1,967 1,341
Receivables, net of allowances of $145 and $159, respectively 359 233
Other current assets 308   287  
Total current assets 5,199 4,354
Property and equipment, net 434 439
Goodwill 1,707 1,710
Acquisition-related intangibles, net 8 57
Deferred income taxes, net 286 387
Other assets 84   103  
TOTAL ASSETS 7,718   7,050  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable 87 89
Accrued and other current liabilities 789 710
0.75% convertible senior notes due 2016, net 161
Deferred net revenue (online-enabled games) 1,539   1,458  
Total current liabilities 2,415 2,418
Senior notes, net 990 989
Income tax obligations 104 80
Deferred income taxes, net 1 2
Other liabilities 148   163  
Total liabilities 3,658 3,652
0.75% convertible senior notes due 2016 2
Stockholders’ equity:
Common stock 3 3
Additional paid-in capital 1,049 1,349
Retained earnings 3,027 2,060
Accumulated other comprehensive loss (19 ) (16 )
Total stockholders’ equity 4,060   3,396  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 7,718   7,050  
 

1Derived from audited consolidated financial statements.

 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
       
Three Months Ended
March 31,
  Twelve Months Ended
March 31,
2017 2016 2017

20161

OPERATING ACTIVITIES
Net income 566 899 967 1,156
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion 32 48 172 197
Stock-based compensation 52 47 196 178
Loss on conversion of convertible notes 2 10
Change in assets and liabilities:
Receivables, net 231 395 (136 ) 127
Other assets (37 ) (14 ) 3 22
Accounts payable 11 (57 ) 5 13
Accrued and other liabilities (116 ) (128 ) (5 ) (252 )
Deferred income taxes, net 100 (409 ) 100 (403 )
Deferred net revenue (online-enabled games) (432 ) (387 ) 81   175  
Net cash provided by operating activities 407   396   1,383   1,223  
INVESTING ACTIVITIES
Capital expenditures (29 ) (30 ) (123 ) (93 )
Proceeds from maturities and sales of short-term investments 313 234 1,281 941
Purchase of short-term investments (545 ) (605 ) (1,917 ) (1,332 )
Net cash (used in) investing activities (261 ) (401 ) (759 ) (484 )
FINANCING ACTIVITIES
Proceeds from issuance of senior notes, net of issuance costs 989 989
Payment of convertible notes (177 ) (163 ) (470 )
Proceeds from issuance of common stock 39 21 72 107
Excess tax benefit from stock-based compensation 12 13 65 86
Repurchase and retirement of common stock (125 ) (634 ) (508 ) (1,018 )
Net cash provided by (used in) financing activities (74 ) 212   (534 ) (306 )
Effect of foreign exchange on cash and cash equivalents 10   23   (18 ) (8 )
Increase in cash and cash equivalents 82 230 72 425
Beginning cash and cash equivalents 2,483   2,263   2,493   2,068  
Ending cash and cash equivalents 2,565   2,493   2,565   2,493  
 

1Derived from audited consolidated financial statements.

 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
           
Q4 Q1 Q2 Q3 Q4 YOY %
FY16 FY17 FY17 FY17 FY17 Change
Net revenue
Net revenue 1,308 1,271 898 1,149 1,527 17 %
GAAP-based financial data
Change in deferred net revenue (online-enabled games)3 (384 ) (589 ) 200 921 (435 )
Gross profit
Gross profit 1,082 1,092 497 633 1,325 22 %
GAAP-based financial data
Acquisition-related expenses 12 13 12 18
Change in deferred net revenue (online-enabled games)3 (384 ) (589 ) 200 921 (435 )
Stock-based compensation 1 1 1 1
Gross profit % (as a % of net revenue) 83 % 86 % 55 % 55 % 87 %
Operating income
Operating income (loss) 536 560 (49 ) (4 ) 717 34 %
GAAP-based financial data
Acquisition-related expenses 13 15 13 20 1
Change in deferred net revenue (online-enabled games)3 (384 ) (589 ) 200 921 (435 )
Stock-based compensation 47 48 48 48 52
Operating income (loss) % (as a % of net revenue) 41 % 44 % (5 %) 47 %
Net income
Net income (loss) 899 440 (38 ) (1 ) 566 (37 %)
GAAP-based financial data
Acquisition-related expenses 13 15 13 20 1
Amortization of debt discount and loss on conversion of notes 5 2
Change in deferred net revenue (online-enabled games)3 (384 ) (589 ) 200 921 (435 )
Stock-based compensation 47 48 48 48 52
Tax rate used for management reporting 22 % 21 % 21 % 21 % 21 %
Net income (loss) % (as a % of net revenue) 69 % 35 % (4 %) 37 %
Diluted earnings (loss) per share
Earnings (loss) per share 2.79 1.40 (0.13 ) (0.00 ) 1.81 (35 %)
Number of diluted shares used in computation
Basic 307 301 301 303 308
Diluted 322 315 301 303 312
Anti-dilutive shares excluded for loss position2 13 10
Shares from convertible bond hedge (3 ) (2 )

2Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable through stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive.

3The difference between the balances of deferred net revenue (online-enabled games) does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows 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)
           
Q4 Q1 Q2 Q3 Q4

YOY
%

FY16 FY17 FY17 FY17 FY17 Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by geography
North America 572 525

  389

561 644 13 %
International 736   746   509   588   883   20 %
Total net revenue 1,308   1,271   898   1,149   1,527   17 %
North America (147 ) (245 ) 58 370 (198 )
International (237 ) (344 ) 142   551   (237 )
Change in deferred net revenue (online-enabled games) (384 ) (589 ) 200   921   (435 )
North America 44 % 41 % 43 % 49 % 42 %
International 56 % 59 % 57 % 51 % 58 %
Total net revenue % 100 % 100 % 100 % 100 % 100 %
 
Net revenue by composition
Full game downloads 152 137 94 169 259 70 %
Extra content 317 300 240 267 397 25 %
Subscriptions, advertising and other 94 87 83 102 113 20 %
Mobile 152   165   149   147   165   9 %
Total digital 715   689   566   685   934   31 %
Packaged goods and other 593   582   332   464   593  
Total net revenue 1,308   1,271   898   1,149   1,527   17 %
Full game downloads (18 ) (53 ) (1 ) 186 (67 )
Extra content (7 ) (42 ) (68 ) 195 8
Subscriptions, advertising and other 1 (2 ) 2
Mobile 21   (24 ) (11 ) 27   10  
Total digital (3 ) (121 ) (80 ) 410   (49 )
Packaged goods and other (381 ) (468 ) 280   511   (386 )
Change in deferred net revenue (online-enabled games) (384 ) (589 ) 200   921   (435 )
Full game downloads 12 % 11 % 10 % 15 % 17 %
Extra content 24 % 23 % 27 % 23 % 26 %
Subscriptions, advertising and other 7 % 7 % 9 % 9 % 7 %
Mobile 12 % 13 % 17 % 13 % 11 %
Total digital 55 % 54 % 63 % 60 % 61 %
Packaged goods and other 45 % 46 % 37 % 40 % 39 %
Total net revenue % 100 % 100 % 100 % 100 % 100 %
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
           
Q4 Q1 Q2 Q3 Q4

YOY
%

FY16 FY17 FY17 FY17 FY17 Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by platform
Xbox One, PLAYSTATION 4 793 776 513 728 1,039 31 %
Xbox 360, PLAYSTATION 3 147 133 64 65 69 (53 %)
Other consoles 1   1   1     1  
Total consoles 941 910 578 793 1,109 18 %
PC / Browser 195 179 158 190 246 26 %
Mobile 151 165 149 148 165 9 %
Other 21   17   13   18   7   (67 %)
Total net revenue 1,308   1,271   898   1,149   1,527   17 %
Xbox One, PLAYSTATION 4 (287 ) (441 ) 177 762 (375 )
Xbox 360, PLAYSTATION 3 (93 ) (92 ) 43 3 (40 )
Other consoles (1 )        
Total consoles (381 ) (533 ) 220 765 (415 )
PC / Browser (27 ) (30 ) (9 ) 127 (30 )
Mobile 23 (24 ) (11 ) 27 9
Other 1   (2 )   2   1  
Change in deferred net revenue (online-enabled games) (384 ) (589 ) 200   921   (435 )
Xbox One, PLAYSTATION 4 61 % 61 % 57 % 63 % 68 %
Xbox 360, PLAYSTATION 3 11 % 11 % 7 % 6 % 5 %
Other consoles          
Total consoles 72 % 72 % 64 % 69 % 73 %
PC / Browser 15 % 14 % 18 % 17 % 16 %
Mobile 11 % 13 % 17 % 13 % 11 %
Other 2 % 1 % 1 % 1 %  
Total net revenue % 100 % 100 % 100 % 100 % 100 %
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
           
Q4 Q1 Q2 Q3 Q4

YOY %

FY16 FY17 FY17 FY17 FY17 Change
CASH FLOW DATA
Operating cash flow 396 (248 ) 109 1,115 407 3 %
Operating cash flow - TTM 1,223 1,046 1,146 1,372 1,383 13 %
Capital expenditures 30 40 29 25 29 (3 %)
Capital expenditures - TTM 93 109 120 124 123 32 %
Repurchase and retirement of common stock 634 129 127 127 125 (80 %)
DEPRECIATION
Depreciation expense 28 29 28 29 29 4 %
BALANCE SHEET DATA
Cash and cash equivalents 2,493 2,042 1,746 2,483 2,565
Short-term investments 1,341 1,385   1,520 1,736 1,967
Cash and cash equivalents, and short-term investments 3,834 3,427 3,266 4,219 4,532 18 %
Receivables, net 233 246 723 587 359 54 %
STOCK-BASED COMPENSATION
Cost of revenue 1 1 1 1
Research and development 26 27 27 27 28
Marketing and sales 7 7 8 8 8
General and administrative 13 13   12 13 15
Total stock-based compensation 47 48   48 48 52
 



Contact:

Electronic Arts Inc.
Chris Evenden, 650-628-0255
Vice President, Investor Relations
Email Contact
or
John Reseburg, 650-628-3601
Vice President, Corporate Communications
Email Contact