Summary
Electronic Arts Inc. (EA) filed an 8-K on October 12, 2007, to provide a positive update on its expected financial results for the fiscal quarter ending September 30, 2007. The company indicated that preliminary information suggests both reported net revenue and earnings per share will exceed the guidance previously issued on August 1, 2007. This upward revision applies to both Generally Accepted Accounting Principles (GAAP) and non-GAAP measures. Investors should note that these are preliminary expectations and are subject to change. The actual, finalized financial results for the quarter will be disclosed in EA's forthcoming Form 10-Q filing. This 8-K serves to inform the market of the anticipated stronger-than-expected performance ahead of the official 10-Q release, potentially impacting investor sentiment and stock valuation.
Key Highlights
- 1EA announced that preliminary financial results for the quarter ending September 30, 2007, are expected to exceed prior guidance.
- 2Both net revenue and earnings per share (GAAP and non-GAAP) are anticipated to surpass the company's August 1, 2007, forecast.
- 3The company provided specific guidance ranges on August 1, 2007, for net revenue ($465 - $570 million), net revenue excluding deferred revenue ($825 - $910 million), GAAP diluted loss per share (-$0.92 to -$0.76), and non-GAAP diluted earnings per share ($0.10 to $0.20).
- 4The positive update was communicated during a publicly accessible conference call on October 11, 2007.
- 5These results are based on preliminary information and are subject to change.
- 6Actual financial results will be formally reported in the upcoming Form 10-Q filing.
- 7The information in this 8-K is not considered 'filed' for purposes of Section 18 of the Exchange Act unless expressly incorporated into a filing.