Electronic Arts Inc (EA) saw its loss narrow to $1 million in the quarter ended compared with $45 million, a year ago. Revenue during the quarter grew 7.38 percent to $1,149 million from $1,070 million in the previous year period. Gross margin for the quarter expanded 612 basis points over the previous year period to 55.09 percent. Operating margin for the quarter stood at negative 0.35 percent as compared to a negative 2.90 percent for the previous year period.
Operating loss for the quarter was $4 million, compared with an operating loss of $31 million in the previous year period.
"With the top console games and most-downloaded mobile portfolio in the industry for Q3, Electronic Arts is growing, engaging and exciting a global community of players," said chief executive officer Andrew Wilson. "We will continue to push the boundaries of play, with stunning new titles like Mass Effect: Andromeda, global competitive gaming tournaments and more amazing experiences coming in the year ahead."
For fiscal year 2017, Electronic Arts Inc expects revenue to be $4,800 million. The company forecasts net income to be $914 million. It company projects diluted earnings per share to be $2.91.
For the fourth-quarter 2017, Electronic Arts Inc expects revenue to be $1,482 million. The company forecasts net income to be $513 million . It company projects diluted earnings per share to be $1.64 .
Operating cash flow improves
Electronic Arts Inc has generated cash of $976 million from operating activities during the nine month period, up 18.02 percent or $149 million, when compared with the last year period. The company has spent $498 million cash to meet investing activities during the nine month period as against cash outgo of $83 million in the last year period.
The company has spent $460 million cash to carry out financing activities during the nine month period as against cash outgo of $518 million in the last year period.
Cash and cash equivalents stood at $2,483 million as on Dec. 31, 2016, up 9.72 percent or $220 million from $2,263 million on Dec. 31, 2015.
Working capital increases sharply
Electronic Arts Inc has recorded an increase in the working capital over the last year. It stood at $2,164 million as at Dec. 31, 2016, up 114.90 percent or $1,157 million from $1,007 million on Dec. 31, 2015. Current ratio was at 1.74 as on Dec. 31, 2016, up from 1.32 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 41 days for the last year period. Days sales outstanding went down to 53 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 3 days for the quarter compared with 9 days for the previous year period. At the same time, days payable outstanding went down to 23 days for the quarter from 27 for the same period last year.
Debt increases substantially
Electronic Arts Inc has witnessed an increase in total debt over the last one year. It stood at $990 million as on Dec. 31, 2016, up 197.30 percent or $657 million from $333 million on Dec. 31, 2015. Long-term debt stood at $990 million as on Dec. 31, 2016. Total debt was 12.83 percent of total assets as on Dec. 31, 2016, compared with 5.15 percent on Dec. 31, 2015. Debt to equity ratio was at 0.28 as on Dec. 31, 2016, up from 0.11 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
