THQ 2004 Annual Report Download - page 42

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SALES BY TERRITORY
The following table sets forth, for the fiscal year ended March 31, 2004 and the twelve months ended March 31, 2003, our net sales for the North America
and international territories:
Net Sales for the Twelve Months Ended March 31, 2004 March 31, 2003 Increase /
(In thousands) (Unaudited) (Decrease) % Change
North America $ 453,426 $ 358,233 $ 95,193 26.6%
International 187,420 109,414 78,006 71.3%
Net Sales $ 640,846 $ 467,647 $ 173,199 37.0%
North America Net Sales
North America net sales comprised 71% of our net sales in fiscal 2004 and 77% of net sales for the twelve-month period ended March 31, 2003. Total net
sales in North America increased by 27% in fiscal 2004, from $358.2 million in the twelve-month period ended March 31, 2003, to $453.4 million.
The increase in North America net sales for the fiscal year ended March 31, 2004 as compared to the same period last year was due to:
• the success of Disney/Pixar’s Finding Nemo on all platforms;
• the release of WWE SmackDown! Here Comes The Pain for PS2, WWE Raw 2 for Xbox, SpongeBob SquarePants: Battle for Bikini Bottom on all
platforms, Sonic Advance 2 for GBA and WWE Wrestlemainia X9 for GameCube;
• the domestic release of 81 SKUs (excluding ValuSoft) in the current fiscal year compared to 63 SKUs (excluding ValuSoft) released in the same
period of the prior year; and
• the higher installed base of all hardware platforms compared to the same period last year.
We expect North America net sales to continue to constitute the largest portion of our net sales in fiscal 2005.
International Net Sales
International net sales increased by 71% for the fiscal year ended March 31, 2004 as compared to the prior twelve-month period, from $109.4 million to
$187.4 million. The strengthening of foreign currencies, primarily the Great British Pound (“GBP”) and the European Currency Unit (“Euro”), increased
reported international sales by $23.5 million or 22%. Based on reported amounts, the increase in net sales was primarily due to:
• the release on all platforms of Disney/Pixar’s Finding Nemo in all of our international territories;
• success of WWE SmackDown! Here Comes the Pain for PS2; and
• the release of three SKUs focused on our international territories – Broken Sword 3 for PS2, Xbox, and PC CD-ROM, and MotoGP 2 and Yager
for both Xbox and PC CD-ROM.