The Company now expects fiscal year 2005 net revenue to be between $3.100 and $3.125 billion, as compared to the Company's previous estimate of between $3.275 and $3.325 billion.
Non-GAAP diluted earnings per share are now expected to be between $1.70 and $1.72 as compared to the Company's previous estimate of $1.90 to $1.95.
GAAP diluted earnings per share are now expected to be between $1.62 and $1.64 -- as compared to the Company's previous estimate of $1.82 to $1.87.
"These results are clearly disappointing," said Larry Probst, Chairman and Chief Executive Officer. "While our new releases are performing reasonably well, they have not been able to offset a significant falloff in catalog sales."
Non-GAAP Financial Measure
Electronic Arts' estimate of non-GAAP diluted earnings per share excludes the following items from its estimate of GAAP diluted earnings per share, including any related tax effects:
-- Amortization of intangibles
-- Employee stock-based compensation
-- Restructuring and asset impairment charges
-- Charges for acquired in-process technology
-- Other-than-temporary impairment of investments in affiliates
The Company believes that excluding these items is useful for illustrating and explaining operating results and comparisons to prior periods. Management considers this non-GAAP measure in its decision-making to facilitate more relevant operating comparisons.