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Community Interest (Continued from p13)
Electronic Arts Q1 Net Income More Than Doubles
Electronic Arts Inc. more than doubled its fiscal first-quarter net income
thanks to higher sales of video games such as “Portal 2,” “Crysis 2” and the
soccer title “FIFA 11.”
The company said that it earned $221 million, or 66 cents per share, in the
three months that ended on June 30. That’s up from earnings of $96 million,
or 29 cents per share, in the same period a year earlier
Revenue rose 23 percent to $999 million from $815 million.
Adjusted, it had a loss of $123 million, or 37 cents per share, the higher end
of its guidance. Its adjusted revenue was $524 million, down 3 percent from
last year. On this basis, analysts expected a larger loss of 40 cents per share,
on revenue of $510 million, according to FactSet.
EA’s adjusted results account for the effects of deferring revenue and the
related cost of sales for games with online components. Like other video
game publishers, the company spreads these out on its books over time, while
the game is played, rather than all at once.
“This was another solid quarter driven by both digital and packaged
goods,” said CEO John Riccitiello in a statement. “We saw strong digital
revenue growth over the prior year. On packaged goods, ‘NCAA’ is off to a
great start and preorders for ‘Battlefield 3’ are tracking extremely well.”
“Battlefield” is EA’s answer to rival Activision Blizzard Inc.’s wildly
popular “Call of Duty” series of military shooters. The company is also
planning to launch a multiplayer online game, “Star Wars: The Old
Republic,” later this year. Like Activision’s “World of Warcraft” games, “Star
Wars” players will pay monthly subscription fees to play.
For the current quarter, EA expects an adjusted loss of 13 cents to 3 cents
per share and adjusted revenue of $925 million to $975 million. Analysts are
expecting EA to break even, on adjusted revenue of $896.8 million.
The company recently announced that it plans to buy PopCap Games, a
maker of casual games such as “Bejeweled” and “Plants vs. Zombies,” for at
least $750 million. EA has been making an effort to grow its digital offerings,
including mobile games and games on Facebook, as more people flock to
playing these types of games.
PopCap will be EA’s largest acquisition to date, but the company said the
deal won’t affect its earnings in the current fiscal year. In fiscal 2013, which
begins next spring, the acquisition will add at least 10 cents to adjusted
earnings per share.
EA expects full-year adjusted earnings of 70 cents to 90 cents per share
and revenue of $3.9 billion to $4.1 billion, up from its previous guidance of
$3.8 billion to nearly $4.03 billion. Analysts expect earnings of 85 cents per
share and revenue of $3.95 billion.
Riccitiello said EA is pleased to see that the NFL lockout has been
resolved. The company makes the popular “Madden” football game series,
which are licensed by the NFL and try to be as realistic as possible. The latest
game launches on Aug. 30.
As I Was Saying… (Continued from p6)
I have just celebrated my birthday and look forward to many more. But as
I do, I can’t help but notice the changes in the lives of some of my close
friends. Well, at least three of them. I recently celebrated, via videotape, the
retirement of one of my closet friends from high school, Dan Horton. He has
left the Redwood City Fire Department after 32 years of service. This comes
approximately a month after another friend (John Coleman) retired from
Key Market and about two years after yet another one (Gary Markwith) also
retired from Key Market.
All three started their careers early. In fact, two while still in high school.
All stayed at the same job and profession for their whole career, and
apparently all reaped the rewards of doing so. Although I wish them all well, I
cannot help but feel a bit envious that they already enjoying retirement when I
can barely enjoy a weekend away. What did I do wrong?
I am not sure that it’s fair to ask myself that since I consider my job one of
the best one could have. Meeting and interacting with the most fascinating
people in our community, and even those who are not, is a complete pleasure
for me. It also gives me the freedom and opportunity to spend time with
family and friends when I want to because I am the boss. But if I had to
choose between the two, I of course would retire. No thought needed. Any
work at all takes one away from the most important things in life.
So what does one do in retirement? Everyone seems to go in different
directions considering what is going on around them. Are they married? Is
their spouse retired too? Do they have younger or older children? Do they own
or rent their home? Of course, how much income you have available and what
you can spend each month can determine your path more than anything else.
I can only fantasize, hope and wish that my own retirement includes plenty
of family, friends, exercise, volunteerism, health, love, sleep, wine and
happiness. So, even as I envy my friends and their new position in life, I look
at mine and what I would want in retirement and realize that the only thing
that is different is that I need the income each month to do what I enjoy. Come
to think of it, I am not in such a bad place at all.
Here’s to retirement. And not!
As I was saying…
.…
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