Summary
Electronic Arts Inc. (EA) reported a challenging fiscal year ending March 31, 2009, marked by a significant net loss of $1,088 million, a substantial increase from the prior year's net loss of $454 million. This downturn was largely attributed to a $368 million goodwill impairment charge related to its EA Mobile reporting unit and a $362 million increase in the valuation allowance for deferred tax assets. Revenue, however, saw an increase of 15% to $4.21 billion, driven by strong performances from titles like Rock Band 2 and Spore. The company also initiated a cost reduction plan in fiscal year 2009, which included workforce reductions and facility closures, aiming to improve efficiency and focus the product portfolio amidst a weakening global economy. Despite the financial setbacks, EA continues to invest in its key franchises and explore growth opportunities in digitally delivered content and services.
Financial Highlights
43 data points| Revenue | $4.21B |
| Cost of Revenue | $2.13B |
| Gross Profit | $2.08B |
| Operating Expenses | $2.91B |
| Operating Income | -$827.00M |
| Net Income | -$1.09B |
Key Highlights
- 1Reported a significant net loss of $1,088 million for the fiscal year ended March 31, 2009, a notable increase from a $454 million net loss in the prior year.
- 2Net revenue increased by 15% year-over-year to $4.21 billion, driven by popular titles such as Rock Band 2 and Spore.
- 3Recorded a substantial goodwill impairment charge of $368 million related to the EA Mobile reporting unit.
- 4Implemented a cost reduction plan in fiscal year 2009, involving an approximately 11% workforce reduction (1,100 employees) and facility closures.
- 5North American revenue grew by 24% to $2.41 billion, representing 57% of total net revenue.
- 6International revenue increased by 4% to $1.80 billion, accounting for 43% of total net revenue.
- 7The company did not pay any cash dividends and does not anticipate paying them in the foreseeable future.