EA reports fourth quarter and fiscal year 2010 results

Exceeds Q4 FY10 Non-GAAP EPS Guidance
Battlefield: Bad Company 2 Has Sold 5 Million Units to Date
2010 FIFA World Cup: South Africa Approaching 2 Million Units Sold
FY10 Non-GAAP Digital Revenue Up 33 Percent Year-over-Year
Affirms Q1 and Full Year FY11 Non-GAAP Guidance

REDWOOD CITY, CA – May 11, 2010 – Electronic Arts Inc. (NASDAQ: ERTS) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2010.

Fiscal Fourth Quarter Results (comparisons are to the quarter ended March 31, 2009)

GAAP net revenue for the fourth quarter was $979 million, up $119 million as compared with $860 million in the prior year. During the quarter, EA had a net benefit of $129 million related to the recognition of deferred net revenue for certain online-enabled packaged goods games and digital content.

Non-GAAP net revenue was $850 million, up $241 million as compared with $609 million for the prior year. Sales were driven by Battlefield: Bad Company™ 2, Mass Effect™ 2, Dante’s Inferno™ and digital businesses.

GAAP net income for the quarter was $30 million, as compared with a net loss of $42 million for the prior year. Diluted earnings per share were $0.09 as compared with diluted loss per share of ($0.13) for the prior year.

Non-GAAP net income was $23 million as compared with non-GAAP net loss of $120 million a year ago. Non-GAAP diluted earnings per share was $0.07 as compared with non-GAAP diluted loss per share of ($0.37) for the prior year.

“We had an excellent fourth quarter, driving record-breaking non-GAAP revenue in the fiscal year,” said John Riccitiello, Chief Executive Officer. “Battlefield: Bad Company 2 outperformed, which contributed to revenue at the high end of our guidance range, and we exceeded our expectations on the bottom line.”

“We are affirming our FY11 and Q1 non-GAAP guidance and expect to grow profitability in the year ahead,” said Eric Brown, Chief Financial Officer. “Our digital businesses are expected to grow approximately 30%.”

Full Fiscal Year Results (comparisons are to the fiscal year ended March 31, 2009)

GAAP net revenue for the fiscal year ended March 31, 2010 was $3.654 billion as compared with $4.212 billion for the prior year. The Company ended the year with $766 million in deferred net revenue from packaged goods and digital content – up $505 million from a year ago. Non-GAAP net revenue was $4.159 billion, up two percent as compared with $4.086 billion for the prior year.

GAAP net loss for the year was $677 million as compared with a net loss of $1.088 billion for the prior year. Diluted loss per share was ($2.08) as compared with a diluted loss per share of ($3.40) for the prior year. Fiscal 2010 GAAP results include a $140 million restructuring charge associated with the fiscal 2009 and fiscal 2010 restructuring plans.

Non-GAAP net income was $145 million as compared with net loss of $96 million a year ago.

Non-GAAP diluted earnings per share were $0.44 as compared with diluted loss per share of ($0.30) for the prior year.

Trailing-twelve-month operating cash flow was $152 million as compared with $12 million a year ago. The Company ended the year with cash and short-term investments of $1.7 billion.

Fiscal 2010 Highlights

EA leads the industry in quality with 20 titles earning a Metacritic rating of 80 or above.

EA is ranked #1 publisher with 19 percent segment share, up 1.7 points from the prior year, with four of the top 20 games in North America and four of the top 20 games in Europe.

EA is ranked #1 publisher on the PlayStation®3, Xbox 360®, PC, and PlayStation®2. EA is the #1 third party publisher on the Wii and PSP® platforms.

EA was named to the 2010 Fortune 500 company list in April 2010.

Five EA titles sold more than four million units in the fiscal year: FIFA 10, Madden NFL 10, The Sims ™3, Battlefield: Bad Company 2, and Need for Speed™ Shift.

EA strengthened its portfolio by launching new intellectual property – EA SPORTS Active™, Dragon Age™, and Dante’s Inferno.

EA’s non-GAAP digital revenue, which includes online and wireless, was $570 million, up 33 percent year-over-year.

EA Mobile™, the world’s leading publisher of games for wireless, delivered non-GAAP revenue of $212 million for fiscal 2010 – up 12 percent year-over-year.

Battlefield 1943™ sold over 1.5 million units to date and is the best-selling download-only game on PlayStation Network and Xbox LIVE® Arcade.

EA has sold over eight million units worldwide of Hasbro® branded family and kids video games to date.

The Sims franchise has sold over 125 million units worldwide to date.

FIFA 10 has sold over 10 million units since launch.