Digital Illusions Releases 2004 Quarterly and Yearly Report

Swedish-headquartered Battlefield 1942 developer Digital Illusions CE (DICE), which publishing giant Electronic Arts has
February 22, 2005
Swedish-headquartered Battlefield 1942 developer Digital Illusions CE (DICE), which publishing giant Electronic Arts has recently established a controlling interest in, is the latest company to sound off on its performance during the October-December financial quarter of 2004, which marks the fourth quarter by its fiscal calendar. DICE's performance was somewhat decreased compared to the same period in fiscal year 2003: revenues went down by 30% to 36.6 million Swedish Kronor (5.33 million USD), resulting in a profit of 10 million SEK ($1.45 million USD). DICE cited the cost of expansion as a factor in the lessened quarterly profits - the company has offices in its native Sweden, Canada, and recently opened new offices in New York on the acquisition of Desert Combat mod creators Trauma Studios. The overall yearly outcome for DICE in FY 2004 was similarly decreased, but still reasonable: total revenues were 209.3 million SEK ($30.49 million USD), with total profit amounting to 29.4 million SEK ($4.28 million USD), down from FY 2003 by 32%. In speaking about the current fiscal year, DICE noted that due to the delay of its marquee title Battlefield 2 from spring 2005 to June 2005, the company would not be shipping a title in the first half of the financial year. Further cautions came in the form of a warning that: "To ensure continued expansion during forthcoming years and to manage the transition to the next generation of consoles, Digital Illusions will increase its focus on developing technology and working processes adapted to the future platforms. Within the framework of game projects for the next generation's platforms, new technology and new tools must be produced." DICE expects lower profit margins in the period of developing these new technology and processes. However, there was no word on whether EA's majority holdings in the company would change any of its development strategy.

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