Creative 2003 Annual Report Download - page 14

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13
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
2003 2003 2002 2002 2002 2002 2001 2001
Sales, net (1) 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 %
Cost of goods sold 65 65 65 64 67 67 67 69
Gross profit 35 35 35 36 33 33 33 31
Operating Expenses:
Selling, general and
administrative (1) 23 23 21 26 24 20 18 24
Research and development 10 9 6 10 6445
Other charges (2) – – – – 14–––
Operating income (loss) 2 3 8 – (11) 9 11 2
Net gain (loss) from investments – – – (4) (16) – – (9)
Interest income (expense)
and other, net 1 1 1 1 1 – 1 –
Income (loss) before income
taxes and minority interest 3 4 9 (3) (26) 9 12 (7)
Provision for income taxes – (1) (1) – (1) (1) (1) –
Minority interest in (income) loss – – – – ––––
Net income (loss) 3 % 3 % 8 % (3) % (27) % 8 % 11 % (7) %
(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.