2K Sports 2003 Annual Report Download - page 30

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Years Ended October 31,
2003 2002 2001
(Restated) (Restated)
Net sales $1,033,693 $794,676 $451,396
Cost of sales
Product costs 537,257 411,518 282,279
Royalties 89,294 80,442 19,875
Software development costs 11,003 8,124 4,169
Total cost of sales 637,554 500,084 306,323
Gross profit 396,139 294,592 145,073
Operating expenses
Selling and marketing 103,015 77,990 52,998
General and administrative 88,083 71,544 44,867
Research and development 25,107 11,524 6,190
Depreciation and amortization 16,923 10,829 12,641
Total operating expenses 233,128 171,887 116,696
Income from operations 163,011 122,705 28,377
Interest (income) expense, net (2,265) 480 8,510
Gain on sale of subsidiary —— (651)
(Gain) loss on Internet investments (39) (181) 21,477
Class action settlement costs —1,468 —
Loss on early extinguishment of debt —— 3,165
Total non-operating (income) expenses (2,304) 1,767 32,501
Income (loss) before income taxes and cumulative effect of change
in accounting principle 165,315 120,938 (4,124)
Provision (benefit) for income taxes 67,197 49,375 (2,450)
Income (loss) before cumulative effect of change in accounting principle 98,118 71,563 (1,674)
Cumulative effect of change in accounting principle, net of taxes of $3,496 —— 5,244
Net income (loss) $ 98,118 $ 71,563 $ (6,918)
Per share data:
Basic:
Weighted average common shares outstanding 41,965 38,030 33,961
Income (loss) before cumulative effect of change in accounting principle per share $ 2.34 $ 1.88 $ (0.05)
Cumulative effect of change in accounting principle per share —— (0.15)
Net income (loss) per share—Basic $ 2.34 $ 1.88 $ (0.20)
Diluted:
Weighted average common shares outstanding 43,297 39,570 33,961
Income (loss) before cumulative effect of change in accounting principle per share $ 2.27 $ 1.81 $ (0.05)
Cumulative effect of change in accounting principle per share —— (0.15)
Net income (loss) per share—Diluted $ 2.27 $ 1.81 $ (0.20)
The accompanying notes are an integral part of these consolidated financial statements.
TAKE-TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
28