Blizzard 2007 Annual Report Download - page 24

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26
A C T I V I S I O N , I N C . • • 2 0 0 7 A N N U A L R E P O R T
Selected Consolidated Statements of Operations Data
The following table sets forth certain Consolidated Statements of Operations data for the periods
indicated as a percentage of consolidated net revenues and also breaks down net revenues by
territory, business segment, and platform, as well as operating income by business segment
(in thousands):
Fiscal year ended March 31, 2007 2006 2005
Net revenues $ 1,513,012 100% $ 1,468,000 100% $ 1,405,857 100%
Costs and expenses:
Cost of sales—product costs 799,587 52 734,874 50 658,949 47
Cost of sales—software royalties and
amortization 132,353 9 147,822 10 123,800 9
Cost of sales—intellectual property licenses 46,125 3 57,666 4 62,197 5
Product development 133,073 9 132,651 9 87,776 6
Sales and marketing 196,213 13 283,395 19 230,299 16
General and administrative 132,514 9 96,366 7 63,228 4
Total costs and expenses 1,439,865 95 1,452,774 99 1,226,249 87
Income from operations 73,147 5 15,226 1 179,608 13
Investment income, net 36,678 2 30,630 2 13,092 1
Income before income tax provision 109,825 7 45,856 3 192,700 14
Income tax provision 24,038 1 5,605 — 57,643 4
Net income $ 85,787 6% $ 40,251 3% $ 135,057 10%
Net Revenues by Territory:
North America $ 753,376 50% $ 710,040 48% $ 696,325 50%
Europe 718,973 47 717,494 49 675,074 48
Other 40,663 3 40,466 3 34,458 2
Total net revenues $ 1,513,012 100% $ 1,468,000 100% $ 1,405,857 100%
Net Revenues by Segment/Platform Mix:
Publishing:
Console $ 886,795 59% $ 812,345 55% $ 713,947 51%
Hand-held 153,357 10 158,861 11 138,695 10
PC 78,886 5 183,457 13 220,087 15
Total publishing net revenues 1,119,038 74 1,154,663 79 1,072,729 76
Distribution:
Console 238,662 16 196,413 13 256,452 18
Hand-held 122,293 8 76,973 5 23,282 2
PC 33,019 2 39,951 3 53,394 4
Total distribution net revenues 393,974 26 313,337 21 333,128 24
Total net revenues $ 1,513,012 100% $ 1,468,000 100% $ 1,405,857 100%
Operating Income (Loss) by Segment:
Publishing $ 64,076 4% $ (6,715) —% $ 155,863 11%
Distribution 9,071 1 21,941 1 23,745 2
Total operating income $ 73,147 5% $ 15,226 1% $ 179,608 13%
Management’s Discussion and Analysis
of Financial Condition and Results of Operations