Blizzard 2004 Annual Report Download - page 17

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Selected Consolidated Statements of Operations Data
The following table sets forth certain consolidated statements of operations data for the periods indicated as a per-
centage of consolidated net revenues and also breaks down net revenues by territory and platform, as well as operating
income by business segment:
(In thousands)
Year ended March 31, 2004 2003 2002
Net revenues $947,656 100% $864,116 100% $786,434 100%
Costs and expenses:
Cost of sales—product costs 475,541 50 440,977 51 435,725 56
Cost of sales—software royalties
and amortization 59,744 6 79,194 9 58,892 7
Cost of sales—intellectual property
licenses 31,862 3 45,002 5 40,114 5
Product development 97,859 10 56,971 7 40,960 5
Sales and marketing 128,221 14 100,646 12 86,161 11
General and administrative 44,612 5 46,479 5 44,008 6
Total costs and expenses 837,839 88 769,269 89 705,860 90
Income from operations 109,817 12 94,847 11 80,574 10
Investment income, net 6,175 — 8,560 1 2,546 1
Income before income tax provision 115,992 12 103,407 12 83,120 11
Income tax provision 38,277 4 37,227 4 30,882 4
Net income $ 77,715 8% $ 66,180 8% $ 52,238 7%
Net Revenues by Territory:
United States $446,812 47% $432,261 50% $404,905 51%
Europe 479,224 51 413,125 48 368,799 47
Other 21,620 2 18,730 2 12,730 2
Total net revenues $947,656 100% $864,116 100% $786,434 100%
Net Revenues by Segment/Platform Mix:
Publishing:
Console $508,418 76% $466,116 76% $312,986 57%
Hand-held 24,945 4 49,966 8 119,177 22
PC 132,369 20 99,893 16 117,345 21
Total publishing net revenues 665,732 70 615,975 71 549,508 70
Distribution:
Console 223,802 79 208,505 84 167,709 71
Hand-held 18,361 7 14,103 6 39,865 17
PC 39,761 14 25,533 10 29,352 12
Total distribution net revenues 281,924 30 248,141 29 236,926 30
Total net revenues $947,656 100% $864,116 100% $786,434 100%
Operating Income by Segment:
Publishing $ 93,223 10% $ 79,139 9% $ 68,675 9%
Distribution 16,594 2 15,708 2 11,899 1
Total operating income $109,817 12% $ 94,847 11% $ 80,574 10%
Activision, Inc. — 2004 Annual Report
page 19