Blizzard 2004 Annual Report Download - page 11

Activision, Inc. — 2004 Annual Report
page 13
Selected Consolidated Financial Data
The following table summarizes certain selected consolidated financial data, which should be read in conjunction with
our Consolidated Financial Statements and Notes thereto and with Management’s Discussion and Analysis of Financial
Condition and Results of Operations included elsewhere herein. The selected consolidated financial data presented
below as of and for each of the fiscal years in the five-year period ended March 31, 2004 are derived from our
audited consolidated financial statements. The Consolidated Balance Sheets as of March 31, 2004 and 2003 and
the Consolidated Statements of Operations and Consolidated Statements of Cash Flows for each of the fiscal years
in the three-year period ended March 31, 2004, and the reports thereon, are included elsewhere in this Annual Report.
(In thousands, except per share data) Restated(1)
Year ended March 31, 2004(2) 2003(2) 2002(2) 2001 2000
Statement of Operations Data:
Net revenues $947,656 $ 864,116 $786,434 $620,183 $572,205
Cost of sales—product costs 475,541 440,977 435,725 324,907 319,422
Cost of sales—intellectual property licenses
and software royalties and amortization 91,606 124,196 99,006 89,702 91,238
Income (loss) from operations 109,817 94,847 80,574 39,807 (30,325)
Income (loss) before income tax provision
(benefit) 115,992 103,407 83,120 32,544 (38,736)
Net income (loss) 77,715 66,180 52,238 20,507 (34,088)
Basic earnings (loss) per share 0.58 0.46 0.46 0.24 (0.41)
Diluted earnings (loss) per share 0.54 0.43 0.39 0.22 (0.41)
Basic weighted average common shares
outstanding 133,249 144,359 113,966 83,921 83,334
Diluted weighted average common shares
outstanding 144,893 155,483 133,775 92,475 83,334
Cash Provided by (Used in):
Operating activities 67,403 90,975 111,792 81,565 2,883
Investing activities (15,169) (155,101) (8,701) (8,631) (25,041)
Financing activities 117,569 64,090 50,402 2,547 42,028
As of March 31, 2004(2) 2003(2) 2002(2) 2001 2000
Balance Sheet Data:
Working capital $675,796 $ 422,500 $333,199 $182,980 $158,225
Cash, cash equivalents and short-term
investments 587,649 406,954 279,007 125,550 49,985
Capitalized software development and
intellectual property licenses 135,201 107,921 56,742 42,205 40,808
Goodwill 76,493 68,019 35,992 10,316 12,347
Total assets 968,817 704,816 556,887 359,957 309,737
Long-term debt — 2,671 3,122 63,401 73,778
Shareholders’ equity 832,738 597,740 430,091 181,306 132,009
(1) Consolidated financial information for fiscal years 2003–2000 has been restated for the effect of our three-for-two stock split effected in the form of a 50% stock
dividend to shareholders of record as of February 23, 2004, paid March 15, 2004.
(2) Effective April 1, 2001, we adopted the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangibles.”
SFAS No. 142 addresses financial accounting and reporting requirements for acquired goodwill and other intangible assets. Under SFAS No. 142, goodwill is
deemed to have an indefinite useful life and should not be amortized but rather tested at least annually for impairment. In accordance with SFAS No. 142, we
have not amortized goodwill during the years ended March 31, 2004, 2003 and 2002.