Delaware | 0-17948 | 94-2838567 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press release dated July 23, 2013, relating to Electronic Arts Inc.’s financial results for the fiscal quarter ended June 30, 2013. |
ELECTRONIC ARTS INC. | |||
Dated: | July 23, 2013 | By: | /s/ Blake Jorgensen |
Blake Jorgensen | |||
Executive Vice President, Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press release dated July 23, 2013, relating to Electronic Arts Inc.’s financial results for the fiscal quarter ended June 30, 2013. |
ELECTRONIC ARTS REPORTS | |||||||
Q1 FY14 FINANCIAL RESULTS |
• | EA was the #1 publisher in Western retail markets in calendar year 2013, and the #1 global publisher in the iOS game market in the June quarter. |
• | EA received 116 E3 awards from over 220 industry nominations, including 8 out of 15 awards from the official E3 Game Critics. Battlefield 4™ won a total of 21 awards at E3, including GameSpot’s Best of E3 award, Need for Speed™ Rivals was named Best Racing Game, and NHL® 14 took the honors for Best Sports Game. Titanfall™ from Respawn Entertainment won six major awards, including Best of Show, Best Original Game, Best Console Game, Best PC Game, Best Action Game and Best Online Multiplayer. |
• | The Simpsons™: Tapped Out recorded its highest revenue quarter* in Q1 since launching in August 2012. |
• | EA’s mobile and handheld digital revenue generated $103 million* in the quarter, a 30% year-over-year increase in digital net revenue. |
• | Real Racing™ 3, the #1 racing title on iOS, has generated more than 45 million downloads, and has averaged over 2 million daily active users since launching in March. |
• | The Battlefield 3™ Premium community continues to grow with over 4 million members to date. |
• | FIFA 13 digital net revenue topped $70 million* in the quarter, a 92% increase versus FIFA 12 in Q1 FY 2013. |
• | FIFA Online 3 digital net revenue in grew 88%* in the first quarter compared FIFA Online 2 in the prior year, and was the #1 online sports game in Korea based on revenue and traffic. |
• | EA signs publishing agreement with TenCent for FIFA Online 3 in China, with details to be announced in an upcoming joint press release from EA and TenCent. |
• | EA’s Origin™ platform for downloading digital games has registered over 50 million users, including 22 million mobile users. |
• | Trailing twelve-month non-GAAP digital net revenue was up 28% to a record $1.72 billion*. |
(in millions of $, except per share amounts) | Quarter Ended 6/30/13 | Quarter Ended 6/30/12 | ||||
GAAP Digital Net Revenue | $ | 482 | $ | 342 | ||
GAAP Publishing Packaged Goods and Other Net Revenue | 452 | 592 | ||||
GAAP Distribution Packaged Goods Net Revenue | 15 | 21 | ||||
GAAP Total Net Revenue | $ | 949 | $ | 955 | ||
Non-GAAP Digital Net Revenue | $ | 378 | $ | 324 | ||
Non-GAAP Publishing Packaged Goods and Other Net Revenue | 102 | 146 | ||||
Non-GAAP Distribution Packaged Goods Net Revenue | 15 | 21 | ||||
Non-GAAP Total Net Revenue | $ | 495 | $ | 491 | ||
GAAP Net Income | $ | 222 | $ | 201 | ||
Non-GAAP Net Loss | (121 | ) | (130 | ) | ||
GAAP Diluted Earnings Per Share | 0.71 | 0.63 | ||||
Non-GAAP Diluted Loss Per Share | (0.40 | ) | (0.41 | ) | ||
Cash Used in Operations | $ | (248 | ) | $ | (244 | ) |
(in millions of $) | TTM Ended 6/30/13 | TTM Ended 6/30/12 | ||||
GAAP Net Revenue | $ | 3,791 | $ | 4,099 | ||
GAAP Net Income | 119 | 56 | ||||
Non-GAAP Net Revenue | 3,797 | 4,153 | ||||
Non-GAAP Net Income | 273 | 277 | ||||
Cash Provided by Operations | $ | 320 | $ | 307 |
• | GAAP net revenue is expected to be approximately $3.50 billion. |
• | Non-GAAP net revenue is expected to be approximately $4.00 billion. |
• | GAAP diluted loss per share is expected to be approximately ($0.98). |
• | Non-GAAP diluted earnings per share is expected to be approximately $1.20. |
• | The Company estimates a share count of 315 million for purposes of calculating fiscal year 2014 diluted earnings per share, and 308 million for diluted loss per share. |
• | Expected non-GAAP net income excludes the following from expected GAAP net loss: |
◦ | Non-GAAP net revenue is expected to be approximately $500 million higher than GAAP net revenue due to the impact of the change in deferred net revenue (online-enabled games); |
◦ | Approximately $150 million of stock-based compensation; |
◦ | Approximately $82 million of acquisition-related expenses; |
◦ | Approximately $4 million of restructuring charges; |
◦ | Approximately $20 million from the amortization of debt discount; and |
◦ | Non-GAAP tax expense is expected to be approximately $76 million higher than GAAP tax expense. |
• | GAAP net revenue is expected to be approximately $625 million. |
• | Non-GAAP net revenue is expected to be approximately $975 million. |
• | GAAP diluted loss per share is expected to be approximately ($1.22). |
• | Non-GAAP diluted earnings per share is expected to be approximately $0.12. |
• | The Company estimates a share count of 316 million for purposes of calculating second quarter fiscal year 2014 diluted earnings per share, and 308 million for diluted loss per share. |
• | Expected non-GAAP net loss excludes the following from expected GAAP net income: |
◦ | Non-GAAP net revenue is expected to be approximately $350 million higher than GAAP net revenue due to the impact of the change in deferred net revenue (online-enabled games); |
◦ | Approximately $40 million of stock-based compensation; |
◦ | Approximately $20 million of acquisition-related expenses; |
◦ | Approximately $1 million of restructuring charges; |
◦ | Approximately $5 million from the amortization of debt discount; and |
◦ | Non-GAAP tax expense is expected to be $3 million higher than GAAP tax expense. |
▪ | Acquisition-related expenses |
▪ | Amortization of debt discount |
▪ | Certain non-recurring litigation expenses |
▪ | Change in deferred net revenue (online-enabled games) |
▪ | Loss (gain) on strategic investments |
▪ | Restructuring charges |
▪ | Stock-based compensation |
▪ | Income tax adjustments |
Rob Sison | Jeff Brown |
Vice President, Investor Relations | Senior Vice President, Corporate Communications |
650-628-7787 | 650-628-7922 |
rsison@ea.com | jbrown@ea.com |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||
Unaudited Condensed Consolidated Statements of Operations | |||||||
(in millions, except per share data) | |||||||
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net revenue | |||||||
Product | $ | 543 | $ | 702 | |||
Service and other | 406 | 253 | |||||
Total net revenue | 949 | 955 | |||||
Cost of revenue | |||||||
Product | 130 | 132 | |||||
Service and other | 64 | 73 | |||||
Total cost of revenue | 194 | 205 | |||||
Gross profit | 755 | 750 | |||||
Operating expenses: | |||||||
Marketing and sales | 147 | 151 | |||||
General and administrative | 85 | 88 | |||||
Research and development | 278 | 282 | |||||
Acquisition-related contingent consideration | 7 | (20 | ) | ||||
Amortization of intangibles | 4 | 7 | |||||
Restructuring and other | 1 | 27 | |||||
Total operating expenses | 522 | 535 | |||||
Operating income | 233 | 215 | |||||
Interest and other income (expense), net | (5 | ) | (5 | ) | |||
Income before provision for income taxes | 228 | 210 | |||||
Provision for income taxes | 6 | 9 | |||||
Net income | $ | 222 | $ | 201 | |||
Earnings per share | |||||||
Basic | $ | 0.73 | $ | 0.63 | |||
Diluted | $ | 0.71 | $ | 0.63 | |||
Number of shares used in computation | |||||||
Basic | 304 | 317 | |||||
Diluted | 312 | 320 |
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net income | $ | 222 | $ | 201 | |||
Acquisition-related expenses | 26 | 2 | |||||
Amortization of debt discount | 5 | 5 | |||||
Change in deferred net revenue (online-enabled games) | (454 | ) | (464 | ) | |||
Restructuring and other | 1 | 27 | |||||
Stock-based compensation | 33 | 39 | |||||
Income tax adjustments | 46 | 60 | |||||
Non-GAAP net loss | $ | (121 | ) | $ | (130 | ) | |
Non-GAAP loss per share | |||||||
Basic and diluted | $ | (0.40 | ) | $ | (0.41 | ) | |
Number of shares used in Non-GAAP computation | |||||||
Basic and diluted | 304 | 317 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||
Unaudited Condensed Consolidated Balance Sheets | |||||||
(in millions) | |||||||
June 30, 2013 | March 31, 2013 (a) | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,056 | $ | 1,292 | |||
Short-term investments | 355 | 388 | |||||
Receivables, net of allowances of $160 and $200, respectively | 120 | 312 | |||||
Inventories | 41 | 42 | |||||
Deferred income taxes, net | 51 | 52 | |||||
Other current assets | 261 | 239 | |||||
Total current assets | 1,884 | 2,325 | |||||
Property and equipment, net | 537 | 548 | |||||
Goodwill | 1,722 | 1,721 | |||||
Acquisition-related intangibles, net | 234 | 253 | |||||
Deferred income taxes, net | 50 | 53 | |||||
Other assets | 178 | 170 | |||||
TOTAL ASSETS | $ | 4,605 | $ | 5,070 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 48 | $ | 136 | |||
Accrued and other current liabilities | 588 | 737 | |||||
Deferred net revenue (online-enabled games) | 590 | 1,044 | |||||
Total current liabilities | 1,226 | 1,917 | |||||
0.75% convertible senior notes due 2016, net | 564 | 559 | |||||
Income tax obligations | 201 | 205 | |||||
Deferred income taxes, net | 1 | 1 | |||||
Other liabilities | 121 | 121 | |||||
Total liabilities | 2,113 | 2,803 | |||||
Common stock | 3 | 3 | |||||
Paid-in capital | 2,190 | 2,174 | |||||
Retained earnings | 243 | 21 | |||||
Accumulated other comprehensive income | 56 | 69 | |||||
Total stockholders’ equity | 2,492 | 2,267 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,605 | $ | 5,070 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||
(in millions) | |||||||
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 222 | $ | 201 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Acquisition-related contingent consideration | 7 | (20 | ) | ||||
Depreciation, amortization and accretion, net | 56 | 56 | |||||
Non-cash restructuring charges | — | 7 | |||||
Stock-based compensation | 33 | 39 | |||||
Change in assets and liabilities: | |||||||
Receivables, net | 192 | 254 | |||||
Inventories | 1 | (2 | ) | ||||
Other assets | (30 | ) | (29 | ) | |||
Accounts payable | (82 | ) | (157 | ) | |||
Accrued and other liabilities | (195 | ) | (119 | ) | |||
Deferred income taxes, net | 2 | (10 | ) | ||||
Deferred net revenue (online-enabled games) | (454 | ) | (464 | ) | |||
Net cash used in operating activities | (248 | ) | (244 | ) | |||
INVESTING ACTIVITIES | |||||||
Capital expenditures | (29 | ) | (31 | ) | |||
Proceeds from maturities and sales of short-term investments | 133 | 128 | |||||
Purchase of short-term investments | (101 | ) | (137 | ) | |||
Acquisition of subsidiaries, net of cash acquired | (5 | ) | — | ||||
Net cash used in investing activities | (2 | ) | (40 | ) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from issuance of common stock | 22 | — | |||||
Repurchase and retirement of common stock | — | (71 | ) | ||||
Acquisition-related contingent consideration payment | (1 | ) | (1 | ) | |||
Net cash provided by (used in) financing activities | 21 | (72 | ) | ||||
Effect of foreign exchange on cash and cash equivalents | (7 | ) | (18 | ) | |||
Decrease in cash and cash equivalents | (236 | ) | (374 | ) | |||
Beginning cash and cash equivalents | 1,292 | 1,293 | |||||
Ending cash and cash equivalents | $ | 1,056 | $ | 919 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | YOY % | |||||||||||||||||
FY13 | FY13 | FY13 | FY13 | FY14 | Change | |||||||||||||||||
QUARTERLY RECONCILIATION OF RESULTS | ||||||||||||||||||||||
Net Revenue | ||||||||||||||||||||||
GAAP net revenue | $ | 955 | $ | 711 | $ | 922 | $ | 1,209 | $ | 949 | (1 | %) | ||||||||||
Change in deferred net revenue (online-enabled games) | (464 | ) | 369 | 260 | (169 | ) | (454 | ) | ||||||||||||||
Non-GAAP net revenue | $ | 491 | $ | 1,080 | $ | 1,182 | $ | 1,040 | $ | 495 | 1 | % | ||||||||||
Gross Profit | ||||||||||||||||||||||
GAAP gross profit | $ | 750 | $ | 266 | $ | 493 | $ | 900 | $ | 755 | 1 | % | ||||||||||
Acquisition-related expenses | 15 | 14 | 23 | 41 | 15 | |||||||||||||||||
Change in deferred net revenue (online-enabled games) | (464 | ) | 369 | 260 | (169 | ) | (454 | ) | ||||||||||||||
Stock-based compensation | 1 | — | — | 1 | — | |||||||||||||||||
Non-GAAP gross profit | $ | 302 | $ | 649 | $ | 776 | $ | 773 | $ | 316 | 5 | % | ||||||||||
GAAP gross profit % (as a % of GAAP net revenue) | 79% | 37% | 53% | 74% | 80% | |||||||||||||||||
Non-GAAP gross profit % (as a % of non-GAAP net revenue) | 62% | 60% | 66% | 74% | 64% | |||||||||||||||||
Operating Income (Loss) | ||||||||||||||||||||||
GAAP operating income (loss) | $ | 215 | $ | (364 | ) | $ | (39 | ) | $ | 309 | $ | 233 | 8 | % | ||||||||
Acquisition-related expenses | 2 | 21 | (15 | ) | 51 | 26 | ||||||||||||||||
Change in deferred net revenue (online-enabled games) | (464 | ) | 369 | 260 | (169 | ) | (454 | ) | ||||||||||||||
Restructuring and other | 27 | (2 | ) | 2 | — | 1 | ||||||||||||||||
Stock-based compensation | 39 | 44 | 39 | 42 | 33 | |||||||||||||||||
Non-GAAP operating income (loss) | $ | (181 | ) | $ | 68 | $ | 247 | $ | 233 | $ | (161 | ) | 11 | % | ||||||||
GAAP operating income (loss) % (as a % of GAAP net revenue) | 23% | (51%) | (4%) | 26% | 25% | |||||||||||||||||
Non-GAAP operating income (loss) % (as a % of non-GAAP net revenue) | (37%) | 6% | 21% | 22% | (33%) | |||||||||||||||||
Net Income (Loss) | ||||||||||||||||||||||
GAAP net income (loss) | $ | 201 | $ | (381 | ) | $ | (45 | ) | $ | 323 | $ | 222 | 10 | % | ||||||||
Acquisition-related expenses | 2 | 21 | (15 | ) | 51 | 26 | ||||||||||||||||
Amortization of debt discount | 5 | 5 | 5 | 5 | 5 | |||||||||||||||||
Change in deferred net revenue (online-enabled games) | (464 | ) | 369 | 260 | (169 | ) | (454 | ) | ||||||||||||||
Gain on strategic investments | — | — | (14 | ) | (25 | ) | — | |||||||||||||||
Restructuring and other | 27 | (2 | ) | 2 | — | 1 | ||||||||||||||||
Stock-based compensation | 39 | 44 | 39 | 42 | 33 | |||||||||||||||||
Income tax adjustments | 60 | (7 | ) | (56 | ) | (58 | ) | 46 | ||||||||||||||
Non-GAAP net income (loss) | $ | (130 | ) | $ | 49 | $ | 176 | $ | 169 | $ | (121 | ) | 7 | % | ||||||||
GAAP net income (loss) % (as a % of GAAP net revenue) | 21% | (54%) | (5%) | 27% | 23% | |||||||||||||||||
Non-GAAP net income (loss) % (as a % of non-GAAP net revenue) | (26%) | 5% | 15% | 16% | (24%) | |||||||||||||||||
Diluted Earnings (Loss) Per Share | ||||||||||||||||||||||
GAAP earnings (loss) per share | $ | 0.63 | $ | (1.21 | ) | $ | (0.15 | ) | $ | 1.05 | $ | 0.71 | 13 | % | ||||||||
Non-GAAP earnings (loss) per share | $ | (0.41 | ) | $ | 0.15 | $ | 0.57 | $ | 0.55 | $ | (0.40 | ) | 2 | % | ||||||||
Number of diluted shares used in computation | ||||||||||||||||||||||
GAAP | 320 | 316 | 304 | 307 | 312 | |||||||||||||||||
Non-GAAP | 317 | 318 | 308 | 307 | 304 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | YOY % | |||||||||||||
FY13 | FY13 | FY13 | FY13 | FY14 | Change | |||||||||||||
QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP | ||||||||||||||||||
Geography Net Revenue | ||||||||||||||||||
North America | 450 | 329 | 409 | 513 | 395 | (12 | %) | |||||||||||
International | 505 | 382 | 513 | 696 | 554 | 10 | % | |||||||||||
Total GAAP Net Revenue | 955 | 711 | 922 | 1,209 | 949 | (1 | %) | |||||||||||
North America | (265 | ) | 179 | 80 | (76 | ) | (190 | ) | ||||||||||
International | (199 | ) | 190 | 180 | (93 | ) | (264 | ) | ||||||||||
Change In Deferred Net Revenue (Online-Enabled Games) | (464 | ) | 369 | 260 | (169 | ) | (454 | ) | ||||||||||
North America | 185 | 508 | 489 | 437 | 205 | 11 | % | |||||||||||
International | 306 | 572 | 693 | 603 | 290 | (5 | %) | |||||||||||
Total Non-GAAP Net Revenue | 491 | 1,080 | 1,182 | 1,040 | 495 | 1 | % | |||||||||||
North America | 47% | 46% | 44% | 42% | 42% | |||||||||||||
International | 53% | 54% | 56% | 58% | 58% | |||||||||||||
Total GAAP Net Revenue % | 100% | 100% | 100% | 100% | 100% | |||||||||||||
North America | 38% | 47% | 41% | 42% | 41% | |||||||||||||
International | 62% | 53% | 59% | 58% | 59% | |||||||||||||
Total Non-GAAP Net Revenue % | 100% | 100% | 100% | 100% | 100% | |||||||||||||
Net Revenue Composition | ||||||||||||||||||
Publishing and Other | 592 | 365 | 568 | 730 | 452 | (24 | %) | |||||||||||
Wireless, Internet-derived, and Advertising (Digital) | 342 | 324 | 321 | 453 | 482 | 41 | % | |||||||||||
Distribution | 21 | 22 | 33 | 26 | 15 | (29 | %) | |||||||||||
Total GAAP Net Revenue | 955 | 711 | 922 | 1,209 | 949 | (1 | %) | |||||||||||
Publishing and Other | (446 | ) | 379 | 174 | (334 | ) | (350 | ) | ||||||||||
Wireless, Internet-derived, and Advertising (Digital) | (18 | ) | (10 | ) | 86 | 165 | (104 | ) | ||||||||||
Change In Deferred Net Revenue (Online-Enabled Games) | (464 | ) | 369 | 260 | (169 | ) | (454 | ) | ||||||||||
Publishing and Other | 146 | 744 | 742 | 396 | 102 | (30 | %) | |||||||||||
Wireless, Internet-derived, and Advertising (Digital) | 324 | 314 | 407 | 618 | 378 | 17 | % | |||||||||||
Distribution | 21 | 22 | 33 | 26 | 15 | (29 | %) | |||||||||||
Total Non-GAAP Net Revenue | 491 | 1,080 | 1,182 | 1,040 | 495 | 1 | % | |||||||||||
Publishing and Other | 62% | 51% | 62% | 60% | 48% | |||||||||||||
Wireless, Internet-derived, and Advertising (Digital) | 36% | 46% | 35% | 38% | 51% | |||||||||||||
Distribution | 2% | 3% | 3% | 2% | 1% | |||||||||||||
Total GAAP Net Revenue % | 100% | 100% | 100% | 100% | 100% | |||||||||||||
Publishing and Other | 30% | 69% | 63% | 38% | 21% | |||||||||||||
Wireless, Internet-derived, and Advertising (Digital) | 66% | 29% | 34% | 59% | 76% | |||||||||||||
Distribution | 4% | 2% | 3% | 3% | 3% | |||||||||||||
Total Non-GAAP Net Revenue % | 100% | 100% | 100% | 100% | 100% |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | YOY % | |||||||||||||
FY13 | FY13 | FY13 | FY13 | FY14 | Change | |||||||||||||
QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP | ||||||||||||||||||
Platform Net Revenue | ||||||||||||||||||
Xbox 360 | 292 | 204 | 277 | 379 | 256 | (12 | %) | |||||||||||
PLAYSTATION 3 | 267 | 150 | 289 | 404 | 238 | (11 | %) | |||||||||||
Wii | 8 | 17 | 20 | 5 | 3 | (63 | %) | |||||||||||
PlayStation 2 | 2 | 6 | 3 | 2 | 1 | (50 | %) | |||||||||||
Total Consoles | 569 | 377 | 589 | 790 | 498 | (12 | %) | |||||||||||
Mobile | 69 | 75 | 86 | 109 | 113 | 64 | % | |||||||||||
PlayStation Handhelds | 10 | 14 | 15 | 20 | 12 | 20 | % | |||||||||||
Nintendo Handhelds | 9 | 8 | 9 | 9 | 9 | - | ||||||||||||
Total Mobile and Handhelds | 88 | 97 | 110 | 138 | 134 | 52 | % | |||||||||||
PC | 276 | 214 | 186 | 252 | 298 | 8 | % | |||||||||||
Other | 22 | 23 | 37 | 29 | 19 | (14 | %) | |||||||||||
Total GAAP Net Revenue | 955 | 711 | 922 | 1,209 | 949 | (1 | %) | |||||||||||
Xbox 360 | (186 | ) | 144 | 72 | (105 | ) | (148 | ) | ||||||||||
PLAYSTATION 3 | (183 | ) | 222 | 95 | (170 | ) | (159 | ) | ||||||||||
Wii | (5 | ) | — | — | (1 | ) | — | |||||||||||
PlayStation 2 | (1 | ) | 1 | — | — | — | ||||||||||||
Mobile | 9 | 13 | 13 | (4 | ) | (9 | ) | |||||||||||
PlayStation Handhelds | (4 | ) | 7 | 11 | (13 | ) | (8 | ) | ||||||||||
Nintendo Handhelds | (4 | ) | (2 | ) | 13 | (3 | ) | (7 | ) | |||||||||
PC | (90 | ) | (16 | ) | 56 | 127 | (123 | ) | ||||||||||
Change in Deferred Net Revenue (Online-Enabled Games) | (464 | ) | 369 | 260 | (169 | ) | (454 | ) | ||||||||||
Xbox 360 | 106 | 348 | 349 | 274 | 108 | 2 | % | |||||||||||
PLAYSTATION 3 | 84 | 372 | 384 | 234 | 79 | (6 | %) | |||||||||||
Wii | 3 | 17 | 20 | 4 | 3 | - | ||||||||||||
PlayStation 2 | 1 | 7 | 3 | 2 | 1 | - | ||||||||||||
Total Consoles | 194 | 744 | 756 | 514 | 191 | (2 | %) | |||||||||||
Mobile | 78 | 88 | 99 | 105 | 104 | 33 | % | |||||||||||
PlayStation Handhelds | 6 | 21 | 26 | 7 | 4 | (33 | %) | |||||||||||
Nintendo Handhelds | 5 | 6 | 22 | 6 | 2 | (60 | %) | |||||||||||
Total Mobile and Handhelds | 89 | 115 | 147 | 118 | 110 | 24 | % | |||||||||||
PC | 186 | 198 | 242 | 379 | 175 | (6 | %) | |||||||||||
Other | 22 | 23 | 37 | 29 | 19 | (14 | %) | |||||||||||
Total Non-GAAP Net Revenue | 491 | 1,080 | 1,182 | 1,040 | 495 | 1 | % | |||||||||||
Xbox 360 | 31% | 29% | 30% | 31% | 27% | |||||||||||||
PLAYSTATION 3 | 28% | 21% | 32% | 34% | 25% | |||||||||||||
Wii | 1% | 2% | 2% | — | — | |||||||||||||
PlayStation 2 | — | 1% | — | — | — | |||||||||||||
Total Consoles | 60% | 53% | 64% | 65% | 52% | |||||||||||||
Mobile | 7% | 11% | 9% | 9% | 12% | |||||||||||||
PlayStation Handhelds | 1% | 2% | 2% | 2% | 1% | |||||||||||||
Nintendo Handhelds | 1% | 1% | 1% | 1% | 1% | |||||||||||||
Total Mobile and Handhelds | 9% | 14% | 12% | 12% | 14% | |||||||||||||
PC | 29% | 30% | 20% | 21% | 32% | |||||||||||||
Other | 2% | 3% | 4% | 2% | 2% | |||||||||||||
Total GAAP Net Revenue % | 100% | 100% | 100% | 100% | 100% | |||||||||||||
Xbox 360 | 22% | 32% | 30% | 26% | 22% | |||||||||||||
PLAYSTATION 3 | 17% | 34% | 32% | 23% | 16% | |||||||||||||
Wii | 1% | 2% | 2% | — | 1% | |||||||||||||
PlayStation 2 | — | 1% | — | — | — | |||||||||||||
Total Consoles | 40% | 69% | 64% | 49% | 39% | |||||||||||||
Mobile | 16% | 8% | 8% | 10% | 21% | |||||||||||||
PlayStation Handhelds | 1% | 2% | 2% | 1% | 1% | |||||||||||||
Nintendo Handhelds | 1% | 1% | 2% | 1% | — | |||||||||||||
Total Mobile and Handhelds | 18% | 11% | 12% | 12% | 22% | |||||||||||||
PC | 38% | 18% | 21% | 36% | 35% | |||||||||||||
Other | 4% | 2% | 3% | 3% | 4% | |||||||||||||
Total Non-GAAP Net Revenue % | 100% | 100% | 100% | 100% | 100% |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | |||||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | YOY % | ||||||||||||
FY13 | FY13 | FY13 | FY13 | FY14 | Change | ||||||||||||
CASH FLOW DATA | |||||||||||||||||
Operating cash flow | (244 | ) | (28 | ) | 363 | 233 | (248 | ) | (2 | %) | |||||||
Operating cash flow - TTM | 307 | 490 | 378 | 324 | 320 | 4 | % | ||||||||||
Capital expenditures | 31 | 25 | 25 | 25 | 29 | (6 | %) | ||||||||||
Capital expenditures - TTM | 171 | 144 | 125 | 106 | 104 | (39 | %) | ||||||||||
BALANCE SHEET DATA | |||||||||||||||||
Cash and cash equivalents | 919 | 871 | 1,158 | 1,292 | 1,056 | 15 | % | ||||||||||
Short-term investments | 444 | 351 | 275 | 388 | 355 | (20 | %) | ||||||||||
Marketable equity securities | 76 | 93 | 59 | — | — | (100 | %) | ||||||||||
Receivables, net | 111 | 643 | 382 | 312 | 120 | 8 | % | ||||||||||
Inventories | 60 | 71 | 59 | 42 | 41 | (32 | %) | ||||||||||
Deferred net revenue (online-enabled games) | |||||||||||||||||
End of the quarter | 584 | 953 | 1,213 | 1,044 | 590 | ||||||||||||
Less: Beginning of the quarter | 1,048 | 584 | 953 | 1,213 | 1,044 | ||||||||||||
Change in deferred net revenue (online-enabled games) | (464 | ) | 369 | 260 | (169 | ) | (454 | ) | |||||||||
STOCK-BASED COMPENSATION | |||||||||||||||||
Cost of goods sold | 1 | — | — | 1 | — | ||||||||||||
Marketing and sales | 7 | 9 | 7 | 7 | 7 | ||||||||||||
General and administrative | 10 | 9 | 7 | 12 | 6 | ||||||||||||
Research and development | 21 | 26 | 25 | 22 | 20 | ||||||||||||
Total Stock-Based Compensation | 39 | 44 | 39 | 42 | 33 |