I have no sales talent and I've never worked in the games industry, but I swear I could turn a profit out of EA next quarter.
They would've turned a $245 million profit or thereabouts if they hadn't changed the way they account for stock-based compenstation.
Edit: Ah nope that's wrong. I just finished the reading the conference call slides and the stock-based compensation expenses amounted to around $37 million so they still would've had a net loss if they hadn't switched accounting procedures.
« Last Edit: August 19, 2006, 01:06:15 AM by Trippy »
Spend $400 million to the NFL for the rights to make video games, when there wasn't another games company interested in spending close to that much money. Spend $800 million to ESPN for the rights to make video games, when there wasn't another games company interested in spending close to that much money. Spend $650 million on assorted R&D to hide the executive slush. That's nearly two billion dollars of cash thrown away with little to show. EA are showing the film and music industries up as rank amateurs when it comes to pissing away cash needlessly. When Bush leaves office, he should consider EA. There's bound to be mountains of coke on hookers' asses to be had there.
The camera adds a thousand barrels. - Steven Colbert
Spend $400 million to the NFL for the rights to make video games, when there wasn't another games company interested in spending close to that much money. Spend $800 million to ESPN for the rights to make video games, when there wasn't another games company interested in spending close to that much money. Spend $650 million on assorted R&D to hide the executive slush. That's nearly two billion dollars of cash thrown away with little to show. EA are showing the film and music industries up as rank amateurs when it comes to pissing away cash needlessly.
I would have thought those iteems would have shown up as capital expenditures and not gone through the P&L. Unless they're writing them off - which would be silly.
Spend $400 million to the NFL for the rights to make video games, when there wasn't another games company interested in spending close to that much money. Spend $800 million to ESPN for the rights to make video games, when there wasn't another games company interested in spending close to that much money. Spend $650 million on assorted R&D to hide the executive slush. That's nearly two billion dollars of cash thrown away with little to show. EA are showing the film and music industries up as rank amateurs when it comes to pissing away cash needlessly.
I would have thought those iteems would have shown up as capital expenditures and not gone through the P&L. Unless they're writing them off - which would be silly.
Not to get bogged down in accounting talk, but the amount spent on licenses gets expensed over the life of the license even if all the cash went out the door day 1. If the profits from the products using the license are materially less than the amount paid for the license, then EA will have to take write-offs eventually as well.
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