Electronic Arts 2000 Annual Report Download - page 24

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NET INCOME In absolute dollars, reported net income increased by 60% primarily related to higher revenues and gross profits
as compared to the same period last year. The increase was also due to significant one-time charges for acquired in-process
technology in the prior year. This was partially offset by higher costs incurred by EA.com for the development of online projects,
the network infrastructure development and higher infrastructure costs for
Ultima Online
and
Ultima Online: The Second Age.
Excluding the one-time charges relating to acquired in-process technology of $4,512,000, net of taxes, in the current year,
net income would have been $121,263,000. Excluding the one-time charges relating to acquired in-process technology of
$37,506,000, net of taxes in the prior year, net income would have been $110,378,000.
Excluding one-time charges related to acquired in-process technology and goodwill amortization, net income would have
been $129,535,000 for fiscal 2000. Excluding one-time charges relating to acquired in-process technology and goodwill amorti-
zation, net income would have been $114,376,000 for fiscal 1999.
Comparison of Fiscal 1999 to 1998:
Revenues
Information about our net revenues for North America and foreign areas for fiscal 1999 and 1998 is summarized below
(in thousands):
Increase/
1999 1998 (Decrease) % change
North America $ 704,998 $ 519,423 $ 185,575 35.7 %
Europe 443,937 325,938 117,999 36.2 %
Asia Pacific 39,560 41,494 (1,934) (4.7) %
Japan 33,368 21,997 11,371 51.7 %
International 516,865 389,429 127,436 32.7 %
Consolidated Net Revenues $ 1,221,863 $ 908,852 $ 313,011 34.4 %
NORTH AMERICA NET REVENUES The increase in North America net revenues was mainly attributable to:
•Strong growth in N64 and PlayStation systems. Net revenues from PlayStation and N64 increased 51% due to a larger mar-
ket and greater installed base for these platforms as well as more title releases for N64 in comparison to the prior year.
•AL sales increased 53% compared to the prior year primarily due to the distribution of products published by Square EA.
•PC revenues increased 11% due to key title releases during the year.
INTERNATIONAL NET REVENUES The increase in international net revenues for fiscal 1999 compared to fiscal 1998 was attrib-
utable to the following:
•Europe’s net revenues increased primarily due to an increase in sales of PlayStation and Affiliated Label products.
•Japan’s net revenues increased primarily due to the sales of
FIFA: Road to World Cup 98.
•Offset by a decrease in Asia Pacific net revenues due to the weakness in Asian currencies. In local currency, in spite of weak
economies, net revenues for Asia Pacific increased compared to the prior year.
MD&A
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