Electronic Arts today announced preliminary financial results for its first fiscal quarter ended June 30, 2006. Net revenue for the first quarter was $413 million, up 13 percent as compared with $365 million for the prior year. Sales were driven primarily by 2006 FIFA World Cup, Battlefield 2: Modern Combat, Need for Speed Most Wanted, The Sims 2 and EA SPORTS Fight Night Round 3. Gross profit for the quarter was $245 million, up 14 percent year-over-year. This increase was more offset by the expensing of stock-based compensation. The company adopted Statement of Financial Accounting Standards (SFAS) No. 123R "Share-Based Payment" in the quarter.

Net loss for the quarter was $81 million as compared with $58 million for the prior year. Diluted loss per share was $0.26 as compared with $0.19. Non-GAAP net loss was $38 million as compared with $55 million a year ago. Non-GAAP diluted loss per share was $0.12 as compared with $0.18. Trailing twelve month operating cash flow was $589 million as compared with $669 million a year ago. The Company ended the quarter with cash, cash equivalents and marketable securities of $2.4 billion.

For the Fiscal Second Quarter ending September 30, 2006 EA expects Net revenue to be between $635 and $685 million, GAAP diluted loss per share between ($0.28) and ($0.22) and Non-GAAP diluted loss per share breakeven. For the Fiscal Year ending March 31, 2007 EA expects net revenue between $2.8 and $3.0 billion, GAAP diluted loss per share between ($0.30) and breakeven and Non-GAAP diluted earnings per share between $0.35 and $0.65.