Blizzard 2003 Annual Report Download - page 16

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page 14
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
The following table sets forth certain consolidated statements of operations data for the periods indicated
as a percentage of total 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, 2003 2002 2001
Net revenues $864,116 100% $786,434 100% $620,183 100%
Costs and expenses:
Cost of sales—product costs 440,977 51 435,725 56 324,907 52
Cost of sales—software royalties
and amortization 79,194 9 58,892 7 49,864 8
Cost of sales—intellectual
property licenses 45,002 5 40,114 5 39,838 6
Product development 56,971 7 40,960 5 41,396 8
Sales and marketing 100,646 12 86,161 11 85,378 14
General and administrative 46,479 5 44,008 6 38,993 6
Total costs and expenses 769,269 89 705,860 90 580,376 94
Income from operations 94,847 11 80,574 10 39,807 6
Investment income, net 8,560 1 2,546 1 (7,263) (1)
Income before income tax provision 103,407 12 83,120 11 32,544 5
Income tax provision 37,227 4 30,882 4 12,037 2
Net income $ 66,180 8% $ 52,238 7% $ 20,507 3%
Net revenues by territory:
United States $432,261 50% $404,905 51% $352,893 57%
Europe 413,125 48 368,799 47 256,228 41
Other 18,730 2 12,730 2 11,062 2
Total net revenues $864,116 100% $786,434 100% $620,183 100%
Net revenues by segment/platform mix:
Publishing:
Console $466,116 76% $312,986 57% $278,486 60%
Hand-held 49,966 8 119,177 22 71,042 15
PC 99,893 16 117,345 21 116,534 25
Total publishing net revenues 615,975 71 549,508 70 466,062 75
Distribution:
Console 208,505 84 167,709 71 107,611 70
Hand-held 14,103 6 39,865 17 9,754 6
PC 25,533 10 29,352 12 36,756 24
Total distribution net revenues 248,141 29 236,926 30 154,121 25
Total net revenues $864,116 100% $786,434 100% $620,183 100%
Operating income by segment:
Publishing $ 79,139 9% $ 68,675 9% $ 35,687 5%
Distribution 15,708 2 11,899 1 4,120 1
Total operating income $ 94,847 11% $ 80,574 10% $ 39,807 6%