Larry Probst Appointed Executive Chairman, Effective Immediately
Company Updates 2013 Fiscal Outlook
REDWOOD CITY, Calif.--(BUSINESS WIRE)--
Electronic Arts Inc. (NASDAQ: EA) today announced that John Riccitiello
will step down as Chief Executive Officer and as a member of the Board
of Directors, effective March 30. The Board has appointed Larry Probst
as Executive Chairman to ensure a smooth transition and to lead EA's
executive team while the Board conducts a search for a permanent CEO.
The Board will consider internal and external candidates with the
assistance of a leading executive search firm.
Mr. Probst has played a leadership role at EA since 1991. In addition to
serving as Chairman of the Board since 1994, he previously served as the
Company's CEO from 1991 to 2007. As CEO, Probst successfully grew the
Company's annual revenues from $175 million to approximately $3 billion,
led EA into new platforms such as mobile, online and other emerging
markets and expanded its international presence to more than 75
countries.
"We thank John for his contributions to EA since he was appointed CEO in
2007, especially the passion, dedication and energy he brought to the
Company every single day," said Mr. Probst. "John has worked hard to
lead the Company through challenging transitions in our industry, and
was instrumental in driving our very significant growth in digital
revenues. We appreciate John's leadership and the many important
strategic initiatives he has driven for the Company. We have mutually
agreed that this is the right time for a leadership transition."
On behalf of the Board, Lead Director Richard A. Simonson stated, "As we
begin the CEO search, we are fortunate that Larry, who has a proven
track record with our employees, partners and customers, has agreed to
assume a day-to-day leadership role as Executive Chairman. He has 16
years of experience as CEO of EA and a deep understanding of the
Company's strategy, management team, business potential and industry
trends."
Mr. Riccitiello stated, "EA is an outstanding company with creative and
talented employees, and it has been an honor to serve as the Company's
CEO. I am proud of what we have accomplished together, and after six
years I feel it is the right time for me pass the baton and let new
leadership take the Company into its next phase of innovation and
growth. I remain very optimistic about EA's future — there is a world
class team driving the Company's transition to the next generation of
game consoles."
Business Outlook
EA expects that its revenues and earnings per share for the current
quarter will be at the low end of, or slightly below previously issued
guidance provided in its press release dated January 30, 2013. Actual
results may be materially different and can be affected by many factors,
including the levels of usage of the Company's digital products, initial
sales of new products that will be released before the end of the
quarter and other factors detailed in the Company's annual and quarterly
SEC filings.
EA will announce its fourth quarter and fiscal year 2013 results on May
7, 2013 and will host a conference call at 2:00 pm PT (5:00 pm ET) to
discuss the results.
Forward-Looking Statements
Some statements set forth in this release, including the information
relating to EA's fourth quarter fiscal year 2013 expectations under the
heading "Business Outlook", contain forward-looking statements that are
subject to change. Statements including words such as "anticipate",
"believe", "estimate" or "expect" and statements in the future tense are
forward-looking statements. These forward-looking statements are
preliminary estimates and expectations based on current information and
are subject to business and economic risks and uncertainties that could
cause actual events or actual future results to differ materially from
the expectations set forth in the forward-looking statements.
Some of the factors which could cause the Company's results to differ
materially from its expectations include the following: sales of the
Company's titles; the Company's ability to manage expenses; the
competition in the interactive entertainment industry; the effectiveness
of the Company's sales and marketing programs; timely development and
release of Electronic Arts' products; the Company's ability to realize
the anticipated benefits of acquisitions, including the PopCap
acquisition; the consumer demand for, and the availability of an
adequate supply of console hardware units; the Company's ability to
predict consumer preferences among competing platforms; the Company's
ability to service and support digital product offerings, including
managing online security; general economic conditions; and other factors
described in the Company's Quarterly Report on Form 10-Q for the fiscal
quarter ended December 31, 2012.
Electronic Arts assumes no obligation and does not intend to update
these forward-looking statements. In addition, the preliminary financial
results set forth in this release are estimates based on information
currently available to Electronic Arts.
While Electronic Arts believes these estimates are meaningful, they
could differ from the actual amounts that Electronic Arts ultimately
reports in its Annual Report on Form 10-K for the fiscal year ending
March 31, 2013. Electronic Arts assumes no obligation and does not
intend to update these estimates prior to reporting its actual financial
results for the fiscal year.
About Electronic Arts
Electronic Arts (NASDAQ:EA) is a global leader in digital interactive
entertainment. The Company's game franchises are offered as both
packaged goods products and online services delivered through
Internet-connected consoles, personal computers, mobile phones and
tablets. EA has more than 250 million registered players and operates in
75 countries. Headquartered in Redwood City, California, EA is
recognized for critically acclaimed, high-quality blockbuster franchises
such as The Sims™, Madden NFL, FIFA Soccer, Need for Speed™,
Battlefield™, and Mass Effect™. More information about EA is available
at http://info.ea.com.
Ron Low or John Christiansen
415-618-8750
Source: Electronic Arts Inc.
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