2K Sports 2004 Annual Report Download - page 45

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TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except share data)
Years Ended October 31,
2004 2003 2002
Net sales .............................................................. $1,127,751 $1,033,693 $794,676
Cost of sales
Product costs ....................................................... 619,685 537,257 411,518
Royalties ........................................................... 114,073 89,294 80,442
Software development costs ........................................ 15,922 11,003 8,124
Total cost of sales ............................................... 749,680 637,554 500,084
Gross profit ...................................................... 378,071 396,139 294,592
Operating expenses
Selling and marketing .............................................. 117,606 103,015 77,990
General and administrative ......................................... 98,226 88,083 71,544
Research and development ......................................... 43,259 25,107 11,524
Depreciation and amortization ...................................... 16,846 16,923 10,829
Total operating expenses ......................................... 275,937 233,128 171,887
Income from operations .......................................... 102,134 163,011 122,705
Interest (income) expense, net ........................................ (1,976) (2,265) 480
Gain on sale of investments .......................................... — (39) (181)
Class action settlement costs .......................................... — — 1,468
Provision for settlement ............................................... 7,500 — —
Total non-operating expense (income) ........................... 5,524 (2,304) 1,767
Income before income taxes ..................................... 96,610 165,315 120,938
Provision for income taxes ............................................ 31,232 67,197 49,375
Net income ...................................................... $ 65,378 $ 98,118 $ 71,563
Per share data:
Basic:
Weighted average common shares outstanding ........................ 44,736 41,965 38,030
Net income per share — Basic ....................................... $ 1.46 $ 2.34 $ 1.88
Diluted:
Weighted average common shares outstanding ........................ 45,682 43,297 39,570
Net income per share — Diluted ..................................... $ 1.43 $ 2.27 $ 1.81
The accompanying notes are an integral part of these consolidated financial statements.
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