Electronic Arts are certainly selling a lot of games, but thankfully this article contains no references to a certain ABBA song.

Earlier today EA announced their results for the fiscal second quarter, which ended September 30, 2004.

Thanks to titles such as The Sims 2, Madden NFL 2005 and Burnout 3: Takedown net revenue was $716 million, up 35 percent as compared with $530 million for the fiscal quarter ended September 30, 2003.

Net income for the second quarter was $97 million, a 27 percent increase year-over-year. Diluted earnings per share were $0.31 as compared to $0.25 a year ago.

Non-GAAP net income for the second quarter was $98 million, a 27 percent increase. Non-GAAP diluted earnings per share were $0.31 as compared to $0.25 a year ago. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

Trailing twelve month operating cash flow was $664 million as compared to $657 million for the same period a year ago.

Net revenue: North America -- up 32 percent to $473 million; Europe -- up 45 percent to $210 million; Asia Pacific -- up 21 percent to $21 million; Japan -- up 29 percent to $12 million. Reported net revenue increased by approximately $23 million or 4 percent due to changes in foreign currency rates. Gross margin was 60.3 percent -- compared to 59.7 percent a year ago.

Operating income was $125 million -- compared to $102 million. Operating margin was 17.4 percent -- compared to 19.2 percent a year ago.

As far as the titles are concerned Madden NFL 2005 has sold 4 million copies, while both The Sims 2 and Burnout 3: Takedown have sold more than one million in Europe alone.

"We enter the holidays with strong momentum in North America, Europe and Asia," said Larry Probst, Chairman and Chief Executive Officer. "EA SPORTS is having its best year ever and The Sims 2 had the strongest PC launch in EA's history. In the December quarter, the breadth and quality of our global line-up is exceptional, with eleven new releases expected to achieve platinum status."

"We are fortunate to be in a strong financial position," said Warren Jenson, Chief Financial and Administrative Officer. "We have the financial strength to invest for the long term, maintain strategic flexibility and at the same time return capital to our shareholders through our share repurchase program."

Some of the highlights for EA include The Sims 2 selling more than one million copies worldwide within the first ten days of release, Madden NFL 2005 becoming the #1 selling game of the year in North America in just one month and the acquisition of Criterion Software.

Electronic Arts have set their expectations for the next fiscal quater, ending December 31st, 2004.

Net revenue is expected to be between $1.4 and $1.475 billion -- as compared to $1.475 billion for the prior year. Non-GAAP diluted earnings per share are expected to be between $1.16 and $1.26 -- as compared to $1.26 for the prior year. This range does not factor in five cents of estimated charges related principally to our acquisition of Criterion Software.

GAAP diluted earnings per share are expected to be between $1.11 and $1.21 -- as compared to $1.26 for the prior year. Fiscal Year Expectations -- Ending March 31, 2005

Net revenue is expected to be between $3.275 and $3.4 billion -- as compared to $2.957 billion for fiscal 2004. Non-GAAP diluted earnings per share are expected to be between $1.90 and $2.10 -- as compared to $1.84 for fiscal 2004. This range does not factor in six cents of estimated charges related principally to our acquisition of Criterion Software.

GAAP diluted earnings per share are expected to be between $1.84 and $2.04 -- as compared to $1.87 for fiscal 2004. Our expected results include the projected impact of our share repurchase program.