Summary
Electronic Arts Inc. (EA) reported a net loss of $310 million, or $0.97 per share, for the third quarter of fiscal year 2009, a wider loss compared to the $195 million loss ($0.62 per share) in the same period last year. Revenue increased by 40% to $894 million, driven by strong sales in North America and Europe, particularly from titles like Rock Band and Madden NFL 09. The increased loss is attributed to a significant rise in cost of goods sold, higher personnel and external development costs, and charges related to abandoned acquisition costs and strategic investments. The company experienced substantial growth in net revenue, but this was outpaced by increased operating expenses and cost of goods sold, leading to a widened net loss. Despite the loss, EA highlighted increased revenue and continued investment in new titles and platforms, while also managing significant future commitments.
Financial Highlights
19 data points| Revenue | $894.00M |
| Cost of Revenue | $557.00M |
| Gross Profit | $337.00M |
| Operating Expenses | $701.00M |
| Operating Income | -$364.00M |
| Net Income | -$310.00M |
Key Highlights
- 1Net loss for the third quarter widened to $310 million ($0.97/share) from $195 million ($0.62/share) in the prior year's quarter.
- 2Total net revenue increased significantly by 40% to $894 million, primarily driven by strong performance in North America and Europe.
- 3Cost of Goods Sold increased by 41% to $557 million, impacting gross profit margins.
- 4Operating expenses rose significantly, with Research and Development expenses increasing by 44% to $372 million.
- 5The company recorded $34 million in losses on strategic investments, primarily related to Neowiz common stock and preferred shares.
- 6A $21 million charge was recognized for costs related to the abandoned acquisition of Take-Two Interactive Software, Inc.
- 7Cash used in operating activities increased to $415 million for the six months ended September 30, 2008, compared to $296 million in the prior year.