THQ 2004 Annual Report Download - page 47

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HANDHELD PLATFORMS
The second factor positively affecting net sales for the year ended December 31, 2002 was an increase in sales for the Nintendo Game Boy Advance
(“GBA”), a handheld platform. Sales for GBA, increased 43%, from $83.8 million in the year ended December 31, 2001 to $119.6 million in 2002.
Nintendo Game Boy Advance Net Sales
Year ended December 31, % change
(in thousands) 2002 % of net sales 2001 % of net sales in net sales
$ 119,614 24.9% $ 83,830 22.1% 42.7%
Net sales increased for the year ended December 31, 2002 due to strong sales of Scooby-Doo! The Movie, Sonic Advance, SpongeBob SquarePants: Revenge
of the Flying Dutchman and Star Wars Episode 2: Attack of the Clones. The increase was also due to the higher installed base of GBA hardware in 2002
compared to 2001. In total we released 31 GBA SKUs during 2002 compared to 15 GBA SKUs in 2001. Key titles released in 2001 included Disney/Pixar’s
Monsters, Inc., Jimmy Neutron: Boy Genius, MX 2002 featuring Ricky Carmichael, Rocket Power: Dream Scheme, Rugrats: Castle Capers and Tetris Worlds.
Nintendo Game Boy Color Net Sales
Year ended December 31, % change
(in thousands) 2002 % of net sales 2001 % of net sales in net sales
$ 26,185 5.4% $ 62,569 16.5% (58.2)%
We did not release any Game Boy Color products in the year ended December 31, 2002. We released 16 SKUs in the year 2001.
PC CD-ROMS
The third factor positively affecting net sales in the year ended December 31, 2002 was sales of PC CD-ROMs. Net sales for 2002 increased 22% from
the year ended December 31, 2001, from $36.8 million to $45.0 million.
PC CD-ROM Net Sales
Year ended December 31, % change
(in thousands) 2002 % of net sales 2001 % of net sales in net sales
$ 45,046 9.4% $ 36,814 9.7% 22.4%
Net sales increased for the year ended December 31, 2002 primarily due to releases of 52 PC SKUs, as compared to 13 PC SKUs released in 2001.
The increase in PC CD-ROM SKUs released and net sales in 2002 as compared to 2001 is attributed to our acquisition of ValuSoft in July 2002. Prices
for ValuSoft CD-ROMs are generally priced lower than the other SKUs we release. The increase in net sales for 2002 is a combination of increased
volume of ValuSoft sales and other PC CD-ROM products.
SALES BY TERRITORY
The following table sets forth, for the years ended December 31, 2002 and 2001, our net sales for the North America and international territories:
Net Sales for the Years Ended December 31, December 31, Increase /
(In thousands) 2002 2001 (Decrease) % Change
North America $ 358,124 $ 262,676 $ 95,448 36.3%
International 122,405 116,316 6,089 5.2%
Net Sales $ 480,529 $ 378,992 $ 101,537 26.8%
North America Net Sales
North America net sales comprised 75% of our net sales in the fiscal year 2002 and 69% of net sales in fiscal 2001. Total net sales in North America
increased by 36% in fiscal 2002, from $262.7 million in fiscal 2001, to $358.1 million in fiscal 2002. The increase was primarily due to the significant increase
in the number of SKUs released domestically.
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THQ : 2004 : ANNUAL REPORT