Electronic Arts Inc. reported earnings results for the third quarter ended December 2012. For the quarter, the company reported non-GAAP revenue of $1.18 billion, which was approximately 9% below the midpoint of guidance. Compared to the same period last year, net revenue was down 28% due to the tough comp of Battlefield and the launch of Star Wars. The revenue shortfall was a result primarily of a miss with Medal of Honor title, with stronger-than-expected sector headwinds for console packaged goods. Non-GAAP diluted earnings per share were $0.57, above the midpoint of its guidance. Net cash provided by operating activities for the quarter was $363 million, and on a trailing 12-month basis, operating cash flow was $378 million. Cash flow was impacted by the lower revenues in the quarter. Net revenue was $922 million and resulting loss per share was $0.15.

For the quarter, the company's GAAP net revenue is expected to be approximately $1.115 to $1.215 billion as compared to $1.368 billion in the prior year. Non-GAAP net revenue is expected to be approximately $1.025 to $1.125 billion, an increase over last year's $977 million. GAAP diluted earnings per share is expected to be approximately $0.92 to $1.12, as compared to $1.20 per share in the prior year. Non-GAAP diluted earnings per share are expected to be approximately $0.57 to $0.72, as compared to $0.17 last year. Non-GAAP net revenue is expected to be approximately $90 million lower than GAAP net revenue due to the impact of the change in deferred net revenue. Gross margin for the quarter will benefit from the very high-margin Battlefield Premium revenue that had been deferred.

For the year, the company's GAAP net revenue is expected to be approximately $3.703 to $3.803 billion. Non-GAAP net revenue is expected to be approximately $3.778 to $3.878 billion. GAAP diluted earnings per share is expected to be approximately $0.18 to $0.38. Non-GAAP diluted earnings per share are expected to be approximately $0.86 to $1.00. Non-GAAP net revenue is expected to be approximately $75 million higher than GAAP net revenue due to the impact of the change in deferred net revenue. Non-GAAP tax expense is expected to be approximately $65 million to $82 million higher than GAAP tax expense. The company reconfirms its capital expense projections of approximately $100 million, but the company is adjusting its operating cash flow estimates to $350 million, reflective of lower guidance. This implies an expected free cash flow generation of $250 million, more than double what the company generated in fiscal year 2012.