2K Sports 2009 Annual Report Download - page 49

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Results of Operations
The following table sets forth, for the periods indicated, the percentage of net revenue represented by
certain line items in our statement of operations, net revenue by geographic region, and publishing
revenue by platform:
Years Ended October 31,
2009 2008 2007
Net revenue:
Publishing 72.4% 80.0% 70.5%
Distribution 27.6% 20.0% 29.5%
Net revenue 100.0% 100.0% 100.0%
Cost of goods sold 74.1% 64.3% 74.9%
Gross profit 25.9% 35.7% 25.1%
Selling and marketing 15.3% 10.9% 13.3%
General and administrative 14.0% 11.2% 15.3%
Research and development 6.6% 4.2% 4.9%
Business reorganization and related 0.0% 0.3% 1.8%
Impairment of goodwill and long-lived assets 1.5% 0.0% 0.0%
Depreciation and amortization 1.9% 1.7% 2.8%
Total operating expenses 39.3% 28.2% 38.1%
Income (loss) from operations (13.4)% 7.5% (13.0)%
Interest and other expense, net (0.3)% (0.2)% (0.1)%
Income (loss) before income taxes (13.8)% 7.3% (13.1)%
Provision (benefit) for income taxes 0.5% 1.0% 1.0%
Net income (loss) (14.2)% 6.3% (14.1)%
Net revenue by geographic region:
United States and Canada 73.0% 65.2% 75.3%
Europe, Asia Pacific and Other 27.0% 34.8% 24.7%
Publishing revenue by platform:
Console 74.4% 90.2% 72.2%
Handheld 13.9% 3.3% 13.5%
PC 11.3% 6.4% 11.5%
Other 0.4% 0.1% 2.8%
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