Electronic Arts today announced preliminary financial results for its fiscal fourth quarter and fiscal year ended March 31, 2007. Net revenue for the fourth quarter was $613 million, down four percent as compared with $641 million for the prior year primarily due to the transition to next generation systems. Sales were driven by Command & Conquer 3 Tiberium Wars, Need for Speed Carbon, DEF JAM: ICON and The Sims 2 Seasons.

Gross profit for the quarter was $378 million, down five percent year-over-year. Net loss for the quarter was $25 million as compared with a net loss of $16 million for the prior year. The company adopted Statement of Financial Accounting Standards (SFAS) No. 123R "Share-Based Payment" at the beginning of its fiscal year resulting in an after-tax stock-based compensation charge of $24 million, or $0.08 per share, in the fourth quarter. Diluted loss per share was $0.08 as compared with $0.05 for the prior year.

Non-GAAP net income was $19 million as compared with $43 million a year ago. Non-GAAP diluted earnings per share were $0.06 as compared with $0.14 for the prior year. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

Net revenue for the fiscal year ended March 31, 2007 was $3.091 billion, up five percent as compared with $2.951 billion for the prior year. Seven titles sold more than three million copies: Madden NFL 07, Need for Speed Carbon, FIFA 07, The Sims 2 Pets, The Sims 2, Need for Speed Most Wanted and 2006 FIFA World Cup.

Gross profit for the year was $1.879 billion, up six percent year-over-year. Net income for the year was $76 million as compared with $236 million for the prior year. The Company incurred an after-tax stock-based compensation charge of $107 million, or $0.34 per share, for the year. Diluted earnings per share were $0.24 as compared with $0.75 for the prior year.

Non-GAAP net income was $247 million as compared with $301 million a year ago. Non-GAAP diluted earnings per share were $0.78 as compared with $0.96 for the prior year. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

Trailing-twelve-month operating cash flow was $397 million as compared with $596 million a year ago. The Company ended the quarter with cash, short-term investments and marketable equity securities of $2.976 billion.

"We have a strong lineup for the year ahead," said Warren Jenson, Chief Financial and Administrative Officer. "We expect to launch more than fifteen games based on wholly owned properties - including Medal of Honor Airborne, Army of Two, Boogie, MySims, Battlefield Bad Company, SKATE and Need for Speed."