Creative 2002 Annual Report Download - page 17

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15
Unaudited data for quarters ended (as a percentage of sales)
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
2002 2002 2001 2001 2001 2001 2000 2000
Sales, net (1) 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 %
Cost of goods sold 67 67 67 69 73 76 73 70
Gross profit 33 33 33 31 27 24 27 30
Operating Expenses:
Selling, general and
administrative (1) 24 20 18 24 21 21 16 19
Research and development 6 4 4 5 5 4 4 5
Other charges (2) 14 – – – – 9 – –
Operating (loss) income (11) 9 11 2 1 (10) 7 6
Net (loss) gain from investments (16) – – (9) (32) (29) – 1
Interest income (expense)
and other, net 1 – 1 – – 1 – –
(Loss) income before income
taxes and minority interest (26) 9 12 (7) (31) (38) 7 7
Provision for income taxes (1) (1) (1) – – – (1) (1)
Minority interest in (income) loss – – ––––––
Net (loss) income (27) % 8 % 11 % (7) % (31) % (38) % 6 % 6 %
(1) For the quarter ended March 31, 2002, Creative has adopted EITF Issue No. 01-9, “Accounting for Consideration
Given by a Vendor to a Customer (Including a Reseller of the Vendor’s Products).” As a result, certain consideration
paid to distributors and resellers of its products has been reclassified as a revenue offset rather than as selling, general
and administrative expense. Prior quarters’ financial data have been reclassified to conform to this presentation.
(2) Other charges for the quarter ended June 30, 2002 relates to the write-off of in-process technology arising from the
acquisition of 3Dlabs. For the quarter ended March 31, 2001 includes $8.4 million in restructuring charges, fixed
assets impairment write-downs of $3.2 million and write-off of other assets acquired from Aureal amounting to
$11.2 million. See Notes 12 and 15 of “Notes to Consolidated Financial Statements.”