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|  | MARCH 22, 2005
 WORD ON THE STREET William Blair Downgrades Electronic Arts Analyst Ralph Schackart says the downgrade is due to management's revised outlook for fiscal year 2005 Electronic Arts (ERTS ) cut its fiscal year 2005 guidance. William Blair cut its rating on the stock to market perform from outperform. Analyst Ralph Schackart says the downgrade is due to management's revised outlook for fiscal year 2005 (March), which calls for lower-than-anticipated sales in both North America and Europe. Moreover, he notes the company provided a preliminary fiscal year 2006 outlook for flat EPS year-over-year. He cut his $3.27 billion fiscal 2005 revenue estimate to $3.09 billion, $1.90 EPS to $1.70, and $3.39 billion fiscal 2006 revenue forecast to $3.2 billion, and $2.01 to $1.69. He does not view today's announcement as a fundamental issue with the company's business; rather, he believes it's likely the beginning of a transition period to next-generation platforms, which will cause down year(s) for the industry.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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