Summary
Electronic Arts Inc. (EA) filed a Form 8-K on May 7, 2012, to report its financial results for the fiscal quarter and fiscal year ended March 31, 2012, along with announcing a significant restructuring plan. The company is initiating a plan to align its cost structure with its ongoing digital transformation, which includes workforce reductions and other associated costs. This restructuring is expected to incur approximately $40 million in total costs, with about $31 million requiring future cash expenditure, primarily for severance, license termination, and other operational adjustments. These charges are anticipated to be largely completed by September 30, 2012, and recognized within the fiscal year ending March 31, 2013. Investors should note that the press release detailing the financial results for the period ended March 31, 2012, is attached as an exhibit. While the 8-K provides an overview of the restructuring, specific financial figures for the quarter and year are contained within the accompanying press release. The company cautions that forward-looking statements regarding these restructuring efforts are subject to inherent uncertainties and risks, and actual results may differ materially.
Key Highlights
- 1EA announced financial results for the fiscal quarter and year ended March 31, 2012, via an attached press release.
- 2The company initiated a restructuring plan focused on aligning costs with its digital transformation strategy.
- 3The restructuring plan involves workforce reductions and other associated costs.
- 4EA anticipates total restructuring costs of approximately $40 million.
- 5Approximately $31 million of the restructuring costs are expected to result in future cash expenditures.
- 6The majority of restructuring actions are expected to be completed by September 30, 2012.
- 7These restructuring charges are anticipated to occur within the fiscal year ending March 31, 2013.