Blizzard 2005 Annual Report Download - page 45

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SELECTED QUARTERLY OPERATING RESULTS
Our฀quarterly฀operating฀results฀have฀in฀the฀past฀varied฀significantly฀and฀will฀likely฀vary฀significantly฀in฀the฀future,฀depending฀on฀numerous฀factors,฀several฀of฀which฀are฀not฀
under฀our฀control.฀See฀Item฀1฀“Business—Factors฀Affecting฀Future฀Performance”฀of฀our฀Annual฀Report฀on฀Form฀10-K,฀which฀has฀been฀previously฀filed฀with฀the฀Securities฀and฀
Exchange฀Commission.฀Our฀business฀also฀has฀experienced฀and฀is฀expected฀to฀continue฀to฀experience฀significant฀seasonality,฀largely฀due฀to฀consumer฀buying฀patterns฀
and฀ our฀ product฀ release฀ schedule฀ focusing฀ on฀ those฀ patterns.฀ Net฀ revenues฀ typically฀ are฀ significantly฀ higher฀ during฀ the฀ fourth฀ calendar฀ quarter,฀ primarily฀ due฀ to฀ the฀
increased฀demand฀for฀consumer฀software฀during฀the฀year-end฀holiday฀buying฀season.฀Accordingly,฀we฀believe฀that฀period-to-period฀comparisons฀of฀our฀operating฀results฀
are฀not฀necessarily฀meaningful฀and฀should฀not฀be฀relied฀upon฀as฀indications฀of฀future฀performance.
The฀following฀table฀is฀a฀comparative฀breakdown฀of฀our฀quarterly฀results฀for฀the฀immediately฀preceding฀eight฀quarters฀(amounts฀in฀thousands,฀except฀per฀share฀data):
Restated(1)
Quarter ended
March 31,
2005
Dec. 31,
2004
Sept. 30,
2004
June 30,
2004
March 31,
2004
Dec. 31,
2003
Sept. 30,
2003
June 30,
2003
Net฀revenues $203,861 $680,094 $310,626 $211,276 $162,897 $508,511 $117,523 $158,725
Operating฀income฀(loss) (2,899) 137,079 34,658 15,733 4,643 116,961 (16,933) 5,146
Net฀income฀(loss) 3,573 97,262 25,543 11,957 6,664 76,981 (10,093) 4,163
Basic฀earnings฀(loss)฀per฀share 0.02 0.52 0.14 0.07 0.04 0.43 (0.06) 0.02
Diluted฀earnings฀(loss)฀per฀share 0.02 0.47 0.13 0.06 0.03 0.40 (0.06) 0.02
(1) Consolidated financial information has been restated for the effect of our four-for-three stock split effected in the form of a 331⁄3% stock dividend to shareholders of record as of March 7, 2005, paid
March 22, 2005.
LIQUIDITY AND CAPITAL RESOURCES
Sources of Liquidity
(In thousands)
As of and for the year ended March 31, 2005 2004
Increase/
(Decrease)
Cash฀and฀cash฀equivalents $ 313,608 $ 165,120 $148,488
Short-term฀investments 527,256 422,529 104,727
$ 840,864 $ 587,649 $253,215
Percentage฀of฀total฀assets 64% 61%
Cash฀flows฀provided฀by฀operating฀activities $ 215,309 $ 67,403 $147,906
Cash฀flows฀used฀in฀investing฀activities (143,896) (170,155) (26,259)
Cash฀flows฀provided฀by฀financing฀activities 72,654 117,569 (44,915)
page 43
Activision, Inc. — 2005 Annual Report