Summary
Electronic Arts Inc. (EA) reported its first-quarter results for fiscal year 2009, ending June 29, 2008. The company faced a challenging quarter, marked by a net loss and declining revenues compared to the prior year period. This performance was primarily attributed to lower sales of existing titles and a shift in release schedules. Despite these headwinds, EA highlighted its ongoing efforts to streamline operations, invest in key franchises, and manage its cost structure to improve profitability in the long term. Investors should closely monitor the company's ability to execute on its product pipeline and adapt to evolving market dynamics.
Financial Highlights
22 data pointsBeta
Financial Statements
Beta
| Revenue | $804.00M |
| Cost of Revenue | $296.00M |
| Gross Profit | $508.00M |
| Operating Expenses | $605.00M |
| Operating Income | -$97.00M |
| Net Income | -$95.00M |
Key Highlights
- 1Net loss of $83 million for the three months ended June 29, 2008, compared to a net loss of $21 million in the prior year period.
- 2Net revenue decreased to $771 million from $990 million in the comparable prior year period, reflecting weaker sell-through of titles and timing of new releases.
- 3Gross margin declined to 56.4% from 60.4%, impacted by lower revenue and higher cost of revenue.
- 4Operating expenses, including research and development and selling, general, and administrative costs, saw a slight decrease but remained substantial.
- 5The company ended the quarter with a strong cash position of $1.57 billion, providing financial flexibility.
- 6EA continued to invest in its digital strategy and pipeline of new intellectual properties, signaling a focus on future growth drivers.