Disclosure Insight Maintains Medium Risk Rating on Electronic Arts

A report from Disclosure Insight reiterates its Medium Risk – Negative Bias rating on Electronic Arts (NASDAQ: ERTS).

The report states, “Concentrated revenue; one-time items; acquisition activity; multiple guidance cuts; and a related party transaction support our opinion of a Medium Risk - Negative Bias rating on ERTS. Sales to GameStop and Wal-Mart accounted for 16% and 10% of FY11 net revenue and 17% and less than 10% of 1H12 net revenue, respectively. Since FY07, ERTS has recorded $517 million of restructuring and other charges; $144 million of in-process research and development charges; and a $368 million goodwill impairment charge.”

ERTS closed yesterday at $23.81.