| Delaware |
94-2838567 | |
| (State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer Identification No.) | |
| 209 Redwood Shores Parkway Redwood City, California (Address of principal executive offices) |
94065 (Zip
Code) |
| Class of Common Stock |
Par Value |
Outstanding at August 6, 2002 | ||
| Class A common stock |
$0.01 |
139,235,558 |
| Part IFinancial Information |
Page | |||
| Item 1. |
Unaudited Condensed Consolidated Financial Statements |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 7 | ||||
| Item 2. |
18 | |||
| Item 3. |
47 | |||
| Part IIOther Information |
||||
| Item 1. |
49 | |||
| Item 4. |
49 | |||
| Item 6. |
49 | |||
| 51 | ||||
| 52 | ||||
| June 30, 2002 |
March 31, 2002 |
|||||||
| ASSETS | ||||||||
| Current assets: |
||||||||
| Cash, cash equivalents and short-term investments |
$ |
826,866 |
|
$ |
796,936 |
| ||
| Marketable securities |
|
5,403 |
|
|
6,869 |
| ||
| Receivables, less allowances of $128,518 and $115,870, respectively |
|
118,347 |
|
|
190,495 |
| ||
| Inventories, net |
|
24,074 |
|
|
23,780 |
| ||
| Deferred income taxes |
|
37,710 |
|
|
38,597 |
| ||
| Other current assets |
|
117,872 |
|
|
95,866 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
1,130,272 |
|
|
1,152,543 |
| ||
| Property and equipment, net |
|
309,892 |
|
|
308,827 |
| ||
| Investments in affiliates |
|
18,999 |
|
|
19,077 |
| ||
| Goodwill and other intangibles, net |
|
108,213 |
|
|
110,512 |
| ||
| Long-term deferred income taxes |
|
64,014 |
|
|
64,065 |
| ||
| Other assets |
|
42,475 |
|
|
44,350 |
| ||
| |
|
|
|
|
| |||
| $ |
1,673,865 |
|
$ |
1,699,374 |
| |||
| |
|
|
|
|
| |||
| LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
86,326 |
|
$ |
88,563 |
| ||
| Accrued and other liabilities |
|
298,964 |
|
|
364,419 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
385,290 |
|
|
452,982 |
| ||
| Minority interest in consolidated joint venture |
|
2,462 |
|
|
3,098 |
| ||
| Stockholders equity: |
||||||||
| Preferred stock, $0.01 par value. Authorized 10,000,000 shares |
|
|
|
|
|
| ||
| Common stock |
||||||||
| Class A common stock, $0.01 par value. Authorized 400,000,000 shares; issued and outstanding 139,140,406 and 138,429,269 shares,
respectively |
|
1,391 |
|
|
1,384 |
| ||
| Class B common stock, $0.01 par value. Authorized 100,000,000 shares; issued and outstanding 6,233,463 and 6,233,413 shares,
respectively |
|
62 |
|
|
62 |
| ||
| Paid-in capital |
|
675,960 |
|
|
649,777 |
| ||
| Retained earnings |
|
614,199 |
|
|
606,795 |
| ||
| Accumulated other comprehensive loss |
|
(5,499 |
) |
|
(14,724 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
1,286,113 |
|
|
1,243,294 |
| ||
| |
|
|
|
|
| |||
| $ |
1,673,865 |
|
$ |
1,699,374 |
| |||
| |
|
|
|
|
| |||
| Three Months Ended June
30, |
||||||||
| 2002 |
2001 |
|||||||
| Net revenues |
$ |
331,898 |
|
$ |
181,950 |
| ||
| Cost of goods sold |
|
141,365 |
|
|
89,029 |
| ||
| |
|
|
|
|
| |||
| Gross profit |
|
190,533 |
|
|
92,921 |
| ||
| |
|
|
|
|
| |||
| Operating expenses: |
||||||||
| Marketing and sales |
|
65,374 |
|
|
40,804 |
| ||
| General and administrative |
|
25,663 |
|
|
23,215 |
| ||
| Research and development |
|
90,969 |
|
|
90,805 |
| ||
| Amortization of intangibles |
|
2,245 |
|
|
6,475 |
| ||
| |
|
|
|
|
| |||
| Total operating expenses |
|
184,251 |
|
|
161,299 |
| ||
| |
|
|
|
|
| |||
| Operating income (loss) |
|
6,282 |
|
|
(68,378 |
) | ||
| Interest and other income, net |
|
3,147 |
|
|
2,717 |
| ||
| |
|
|
|
|
| |||
| Income (loss) before provision for (benefit from) income taxes and minority interest |
|
9,429 |
|
|
(65,661 |
) | ||
| Provision for (benefit from) income taxes |
|
2,923 |
|
|
(20,355 |
) | ||
| |
|
|
|
|
| |||
| Income (loss) before minority interest |
|
6,506 |
|
|
(45,306 |
) | ||
| Minority interest in consolidated joint venture |
|
898 |
|
|
52 |
| ||
| |
|
|
|
|
| |||
| Net income (loss) |
$ |
7,404 |
|
$ |
(45,254 |
) | ||
| |
|
|
|
|
| |||
| Class A common stock: |
||||||||
| Net income (loss): |
||||||||
| Basic |
$ |
10,394 |
|
$ |
(39,375 |
) | ||
| |
|
|
|
|
| |||
| Diluted |
$ |
7,404 |
|
$ |
(45,254 |
) | ||
| |
|
|
|
|
| |||
| Net income (loss) per share: |
||||||||
| Basic |
$ |
0.07 |
|
$ |
(0.29 |
) | ||
| Diluted |
$ |
0.05 |
|
$ |
(0.33 |
) | ||
| Number of shares used in computation: |
||||||||
| Basic |
|
138,748 |
|
|
135,730 |
| ||
| Diluted |
|
145,222 |
|
|
136,382 |
| ||
| Class B common stock: |
||||||||
| Net loss, net of retained interest in EA.com |
$ |
(2,990 |
) |
$ |
(5,879 |
) | ||
| |
|
|
|
|
| |||
| Net loss per share: |
||||||||
| Basic |
$ |
(0.49 |
) |
$ |
(0.98 |
) | ||
| Diluted |
$ |
(0.49 |
) |
$ |
(0.98 |
) | ||
| Number of shares used in computation: |
||||||||
| Basic |
|
6,043 |
|
|
6,020 |
| ||
| Diluted |
|
6,043 |
|
|
6,020 |
| ||
| Three Months Ended June 30, |
||||||||
| 2002 |
2001 |
|||||||
| Operating activities: |
||||||||
| Net income (loss) |
$ |
7,404 |
|
$ |
(45,254 |
) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
||||||||
| Minority interest in consolidated joint venture |
|
(898 |
) |
|
(52 |
) | ||
| Equity in net (income) loss of affiliates |
|
(239 |
) |
|
290 |
| ||
| Gain on sale of affiliate |
|
|
|
|
(200 |
) | ||
| Depreciation and amortization |
|
24,306 |
|
|
27,355 |
| ||
| Loss on write-down of affiliate |
|
471 |
|
|
|
| ||
| Loss on sale of fixed assets |
|
95 |
|
|
221 |
| ||
| Bad debt expense |
|
1,659 |
|
|
1,144 |
| ||
| Stock-based compensation |
|
1,154 |
|
|
698 |
| ||
| Tax benefit from exercise of stock options |
|
5,200 |
|
|
14,441 |
| ||
| Change in assets and liabilities: |
||||||||
| Receivables |
|
70,489 |
|
|
96,314 |
| ||
| Inventories |
|
(294 |
) |
|
(334 |
) | ||
| Other assets |
|
(34,108 |
) |
|
(29,275 |
) | ||
| Accounts payable |
|
(2,237 |
) |
|
(13,893 |
) | ||
| Accrued and other liabilities |
|
(66,669 |
) |
|
(81,003 |
) | ||
| Deferred income taxes |
|
310 |
|
|
61 |
| ||
| |
|
|
|
|
| |||
| Net cash provided by (used in) operating activities |
|
6,643 |
|
|
(29,487 |
) | ||
| |
|
|
|
|
| |||
| Investing activities: |
||||||||
| Proceeds from sale of property and equipment |
|
379 |
|
|
165 |
| ||
| Proceeds from sale of affiliate |
|
|
|
|
570 |
| ||
| Capital expenditures |
|
(8,409 |
) |
|
(15,030 |
) | ||
| Investment in affiliates, net |
|
(154 |
) |
|
3,021 |
| ||
| Change in short-term investments, net |
|
7,787 |
|
|
(16,375 |
) | ||
| |
|
|
|
|
| |||
| Net cash used in investing activities |
|
(397 |
) |
|
(27,649 |
) | ||
| |
|
|
|
|
| |||
| Financing activities: |
||||||||
| Proceeds from sales of Class A shares through employee stock plans and other plans |
|
19,893 |
|
|
33,262 |
| ||
| Proceeds from sales of Class B shares through employee stock plans and other plans |
|
1 |
|
|
|
| ||
| |
|
|
| |||||