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EA Reports Second Quarter Fiscal 2007 Results

Christmas has come early for the world’s largest publisher, Electronic Arts. For the quarter ending October 31, EA announced net revenue of $784 million dollars, an increase of 16 percent compared to $675 million last year. Sales were driven by sports games like Madden NFL 07, NCAA Football 07, FIFA 07 and NBA Live 07. Gross profit was $445 million, up 14 percent from the year prior. “This was a strong quarter for EA,” said Warren Jenson, Chief Financial and Administrative Officer. “While our industry remains in the midst of transition the landscape looks strong enough that we are able to increase our guidance range for the year.”

“We are well prepared for the holidays on all platforms, including the Xbox 360, PlayStation 3 and the Nintendo Wii,” said Larry Probst, Chairman and Chief Executive Officer. “In the quarter, we plan to release eight titles across multiple platforms and currently have more than 30 next-generation games in development.” Currently Madden has sold 5 million copies in five weeks (a record), NCAA Football 07 2 million for the quarter (a record), while FIFA 07 sold 2 million internationally in one week. PlayStation 2 remains the primary revenue source for Electronic Arts, accounting for 35% of net revenue as well as 8% for PSP, compared to 8% for Xbox and 21% for Xbox 360. The GCN has dropped to a low of 2%, the same as Nintendo DS.

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