1、TO OUR STOCKHOLDERS:Fiscal year 2006 signaled the beginning of profound change in our industry change in the wayconsumers purchase and play EA games,the platforms they play on,and the approach we take to developand publish our products.It was a year that challenged us to think dierently about naviga
2、ting technologytransitions and to invest in new opportunities with potentially richer margins.It was a year that marked theintroduction of new titles and new services that improve the game experience and generate incrementalrevenue.Most of all,it was a year that convinced us that the artistic and ec
3、onomic opportunities in ourbusiness are much greater than we could have imagined just ve years ago.Transition is never easy and the combination of new technology,new platforms and new markets makesthis one particularly complex.Today,EA is investing ahead of revenue in what we believe will be another
4、Chairmans Letterperiod of strong and sustained growth for the interactive entertainment industry.No other company isinvesting in as many strategic areas;no other company has as much opportunity.Our commitment ofnancial and creative resources is signicant,but so is the potential for long-term growth.
5、Our net revenue for scal 2006 was$2.951 billion,down six percent.Operating income was$325 millionor 11 percent of revenue.Operating cash ow was$596 million and we ended the year with$2.272 billionin cash and short term investments.Our return on invested capital was 21 percent and diluted earnings pe
6、rshare were$0.75.Better Games on More Powerful ConsolesWe are navigating through the console transition that upgrades consumers from current generationplatforms to more powerful and innovative systems like the Xbox 360TM console,the PlayStation3 consoleand the WiiTM from Nintendo.Our most important