THQ 2004 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2004 THQ annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 89

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89

Comparison of the Year Ended December 31, 2002 to the Year Ended December 31, 2001
Net income for the year ended December 31, 2002 was $13.0 million, or $0.32 per diluted share, on net sales of $480.5 million, as compared to net income
of $36.0 million, or $1.01 per diluted share, on net sales of $379.0 million for the year ended December 31, 2001. Net income for the year ended
December 31, 2002 was negatively affected by the inclusion of the following special charges: (1) $7.9 million, net of tax for the cancellation of 20 SKUs;
(2) $4.6 million, net of tax related to the settlement of a class action lawsuit; (3) $1.1 million, net of tax related to the write-off of inventory and software
development for “WWF” –branded games that we had been prevented from shipping pursuant to an action by the World Wide Fund for Nature against
World Wrestling Entertainment, Inc.; and (4) $2.8 million, net of tax related to the discontinuation of our online joint venture in the United Kingdom
(Network Interactive Sports, Ltd.). In addition to the special charges, net income in 2002 was negatively impacted due to an increase in software
development amortization.
NET SALES
The following table sets forth our net sales by platform and net sales by platform as a percentage of net sales for the twelve months ended December 31,
2002 and 2001:
Net Sales for the Years Ended (In thousands):
December 31,
December 31, 2001 Increase/ %
Platform 2002 (Unaudited) (Decrease) Change
Consoles:
Sony PlayStation 2 $ 167,032 34.8% $ 110,642 29.2% $ 56,390 51.0%
Microsoft Xbox 34,143 7.1 5,111 1.4 29,032 568.0%
Nintendo Game Cube 49,004 10.2 - - 49,004 N/A
Sony PlayStation 37,270 7.8 60,340 15.9 (23,070) (38.2)%
Nintendo 64 277 0.1 17,097 4.5 (16,820) (98.4)%
287,726 60.0 193,190 51.0 94,536 48.9%
Handheld:
Nintendo Game Boy Color 26,185 5.4 62,569 16.5 (36,384) (58.2)%
Nintendo Game Boy Advance 119,614 24.9 83,830 22.1 35,784 42.7%
145,799 30.3 146,399 38.6 (600) 0.4%
PC CD-ROM 45,046 9.4 36,814 9.7 8,232 22.4%
Other 1,958 0.3 2,589 0.7 (631) (24.4)%
Net Sales $ 480,529 100.0% $ 378,992 100.0% $ 101,537 26.8%
Net sales for the year ended December 31, 2002 increased 27% from the year ended December 31, 2001, from $379.0 million to $480.5 million. There
were several factors that affected the fiscal 2002 net sales performance. First, positively impacting net sales was an improvement in console sales, in total
dollars and as a percentage of net sales. Net sales for the year ended December 31, 2002 for the console platforms: PS2, PS1, Xbox, GameCube, and N64,
increased 49% from the prior fiscal year, from $193.2 million to $287.7 million.
42:43
THQ : 2004 : ANNUAL REPORT