Electronic Arts today announced preliminary financial results for its fiscal third quarter ended December 31, 2006. Net revenue for the third quarter was $1.281 billion, up one percent as compared with $1.270 billion for the prior year. Sales were driven by Need for Speed Carbon, FIFA 07, The Sims 2 Pets and Madden NFL 07 - each selling over three million copies in the quarter. Gross profit for the quarter was $811 million, up six percent year-over-year. Net income for the quarter was $160 million as compared with $259 million for the prior year. The company adopted Statement of Financial Accounting Standards (SFAS) No. 123 "Share-Based Payment" at the beginning of its fiscal year resulting in an after-tax stock-based compensation charge of $28 million or $0.09 per share in the third quarter. Diluted earnings per share were $0.50 as compared with $0.83 for the prior year.

Non-GAAP net income was $201 million as compared with $268 million a year ago. Non-GAAP diluted earnings per share were $0.63 as compared with $0.86 for the prior year. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

Looking ahead EA says that will expand its focus on next-generation platforms including the Xbox 360 and the PS3 – with a particular focus on Nintendo’s platforms.