[QUOTE="SaltyMeatballs"]
He is wrong anyway, read the last few pages of this thread.
KingsMessenger
Not really... Last quarter, EA made more money on the PC than it did on the consoles. As I already stated before, despite what all the "accountants" in this thread want to claim, GAAP figures are not a good way of tracking the individual revenue of particular sectors of the company. The accounting techniques required by GAAP are good for keeping track of the overall status of a company as a whole, and for looking at where the books currently stand, but when you try to make market assumptions based on the GAAP figures there are too many things distorting the number.
The biggest thing last quarter was that EA acquired Popcap Games. IMMEDIATELY that drags down the PC GAAP figure, because EA paid more for Popcap than Popcap is worth, and GAAP requires that EA account for any discrepencies in the value of an acquisition. Since Popcap is primarily a PC driven acquisition, that majority of that discrepancy would fall under the PC. That is simply the most obvious factor.
Non-GAAP figures aren't just made up. They have a purpose and they do tell something about the company. When taken together with the GAAP figures, they tell a much more complete story than just one or the other. GAAP is definitely important, but with EA, the non-GAAP actually tells more about the performance of the different sectors of the company and is key in determining the performance of EA's acquisitions. Given how many acquisitions EA has had in the social gaming/PC casual market over the last few years, the non-GAAP figure is demonstrating that EA is having positive growth in those sectors of their business.
So.... In Q1 FY2012 for EA Games, PC was a greater source of Non-GAAP revenue, and likely a more profitable platform for EA than either of the consoles.
Granted, I am a third year accounting student, and I have taken a closer look at those non-GAAP numbers. Granted, it appears that PC revenue is growing in the year over the quarter, while consoles have stagnated.
Since you seem to know more about accounting than I do, how do acquisitions impact the numbers of a single division? I've seen how an acquisition might shake up a company as a whole, but, I've never quite learned how it might impact a single division.
However, it's still important to note that consoles as a whole make more money than the PC.
EA's auditing firm, by all counts, seem to be quite conservative. I think this is the first time I've seen in financial statements a non-GAAP net income number to be smaller than the GAAP net income number, so their non-GAAP numbers might not be complete BS at all.
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