The following forward-looking statements, as well as those made above, reflect expectations as of July 26, 2011. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors, including: product development delays; competition in the industry; the health of the economy in the U.S. and abroad and the related impact on discretionary consumer spending; changes in anticipated costs; the financial impact of acquisitions by EA, including the PopCap acquisition; the popular appeal of EA’s products; EA’s effective tax rate; and other factors detailed in this release and in EA’s annual and quarterly SEC filings.
The fiscal 2012 expectations reflect our preliminary estimates of the financial impact of the PopCap acquisition. These preliminary estimates are based on currently available information and are subject to change.
Second Quarter Fiscal Year 2012 Expectations – Ending September 30, 2011
- GAAP net revenue is expected to be approximately $675 to $725 million.
- Non-GAAP net revenue is expected to be approximately $925 to $975 million.
- GAAP diluted loss per share is expected to be approximately ($1.03) to ($0.87) as compared to previous guidance of ($1.10) to ($0.97).
- Non-GAAP diluted loss per share is expected to be approximately ($0.13) to ($0.03) as compared to previous guidance of ($0.15) to ($0.05).
- For purposes of calculating second quarter fiscal year 2011 loss per share, the Company estimates a share count of 331 million.
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Expected non-GAAP net loss excludes the following from expected GAAP
net loss:
- Non-GAAP net revenue is expected to be approximately $250 million higher than GAAP net revenue due to the impact of the change in deferred net revenue (packaged goods and digital content);
- Approximately $50 million of estimated stock-based compensation;
- Approximately $25 to 30 million of acquisition-related expenses;
- Approximately $5 million of restructuring charges;
- Approximately $5 million from the amortization of debt discount; and
- Non-GAAP tax expense is expected to be $43 to $56 million higher than GAAP tax expense.
Fiscal Year 2012 Expectations – Ending March 31, 2012
- GAAP net revenue is expected to be approximately $3.825 billion to $4.025 billion as compared to our previous guidance of $3.725 billion to $3.950 billion.
- Non-GAAP net revenue is expected to be approximately $3.900 billion to $4.100 billion as compared to our previous guidance of $3.800 to $4.025 billion.
- GAAP diluted earnings (loss) per share is expected to be approximately a loss per share of ($0.10) to earnings per share of $0.21, as compared to previous guidance of ($0.04) to $0.26.
- Non-GAAP diluted earnings per share are expected to be approximately $0.70 to $0.90.
- For purposes of calculating fiscal year 2012 earnings (loss) per share, the Company estimates a share count of 330 million for loss per share computations and 334 million for earnings per share computations.
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Expected non-GAAP net income excludes the following items from
expected GAAP net income (loss):
- Non-GAAP net revenue is expected to be approximately $75 million higher than GAAP revenue due to the impact of the change in deferred net revenue (packaged goods and digital content);
- Approximately $175 million of estimated stock-based compensation;
- Approximately $85 to $95 million of acquisition-related expenses;
- Approximately $28 million of restructuring charges;
- Approximately $15 million from the amortization of debt discount; and
- Non-GAAP tax expense is expected to be $121 to $147 million higher than GAAP tax expense.
