THQ 2005 Annual Report Download - page 38

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15
Effective January 1, 2003, we changed our fiscal year end from December 31 to March 31. The change
resulted in a three-month transitional period ended March 31, 2003. References to Transition 2003, unless
otherwise indicated, refer to the three-month transitional period ended March 31, 2003. Since the change
in fiscal year end affects the comparability of the information reflected in the selected financial data, we
have included unaudited results for the period from April 1, 2002 through March 31, 2003. Other than this
unaudited period, the selected consolidated financial data presented below as of and for each of the fiscal
years and Transition 2003 in the five-year period ended March 31, 2005 are derived from our audited
consolidated financial statements. The consolidated balance sheets as of March 31, 2005 and 2004, and the
consolidated statements of operations for the fiscal years ended March 31, 2005 and 2004, the twelve
months ended March 31, 2003 (unaudited), Transition 2003, and the year ended December 31, 2002, and
the report thereon, are included elsewhere in this Form 10-K.
Statement of Operations Data
(In thousands, except per share data)
Fiscal Year Ended March 31, Transition Year Ended December31,
2005 (a) 2004 (b) 2003 (c) 2003 (c) 2002 (d) 2001 2000 (e)
(Unaudited)
Net sales .............. $756,731 $ 640,846 $ 467,647 $ 66,800 $ 480,529 $ 378,992 $ 347,003
Costs and expenses:
Cost of sales ......... 250,055 229,218 178,291 26,378 185,593 154,898 140,699
License amortization
and royalties ....... 85,926 71,132 38,988 5,576 40,476 33,144 34,675
Software development
amortization....... 93,622 105,632 84,916 12,018 83,698 35,144 42,875
Product development .. 72,959 36,850 36,531 8,899 34,696 17,774 18,605
Selling and marketing. .115,646 92,475 70,978 14,294 66,443 46,745 42,446
Payment to venture
partner ............ 9,774 9,675 9,218 644 10,146 8,673 17,707
General and
administrative ...... 54,831 47,006 36,794 8,442 34,993 28,470 20,076
Total costs and
expenses......... 682,813 591,988 455,716 76,251 456,045 324,848 317,083
Income (loss) from
operations ........... 73,918 48,858 11,931 (9,451)24,484 54,144 29,920
Interest income......... 4,337 2,378 4,833 878 5,277 2,572 1,323
Other income (expense) .— 4,000 (12,409) (2,403)(10,006) — —
Income (loss) before
income taxes and
minority interest...... 78,255 55,236 4,355 (10,976)19,755 56,716 31,243
Income taxes ........... 15,204 19,397 1,812(3,290)6,761 20,703 13,054
Income (loss) before
minority interest...... 63,051 35,839 2,543(7,686)12,994 36,013 18,189
Minority interest. ....... (261) — — — — — —
Net income (loss) ....... $ 62,790 $ 35,839 $ 2,543 $ (7,686)$ 12,994 $ 36,013 $ 18,189
Net income (loss) per
share—basic ......... $ 1.61 $ 0.94 $ 0.07 $ (0.20)$ 0.33 $ 1.10 $ 0.60
Net income (loss) per
share—diluted........ $ 1.56 $ 0.92 $ 0.06 $ (0.20)$ 0.32 $ 1.01 $ 0.56
Shares used inper share
calculation—basic..... 39,030 38,186 39,018 38,319 39,203 32,717 30,136
Shares used inper share
calculation—diluted... 40,243 39,004 40,552 38,319 41,243 35,623 32,352