THQ 2004 Annual Report Download - page 83

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16. FISCAL YEAR CHANGE
Effective January 1, 2003, we changed our fiscal year from December 31 to March 31. The table below summarizes the selected data for the three months
ended March 31, 2003 and 2002 (unaudited), respectively, (in thousands, except per share data):
Three Months Ended March 31,
2003 2002
(unaudited)
Net sales $ 66,800 $ 79,682
Costs and expenses:
Cost of sales 26,378 33,680
License amortization and royalties 5,576 7,064
Software development amortization 12,018 10,800
Product development 8,899 7,064
Selling and marketing 14,294 9,759
Payment to venture partner 644 1,572
General and administrative 8,442 6,641
Total costs and expenses 76,251 76,580
Income (loss) from operations (9,451) 3,102
Interest income, net 878 1,322
Other income (expenses) (2,403) —
Income (loss) before income taxes (10,976) 4,424
Income taxes (3,290) 1,659
Net income (loss) $ (7,686) $ 2,765
Net income (loss) per share – diluted $ (0.20 ) $ .07
Shares used in per share calculation – diluted 38,319 41,725
17. SUBSEQUENT EVENTS
In April 2004, we completed the acquisition of substantially all the assets of Relic Entertainment Inc., a development studio located in Canada. We paid
$6.0 million in cash and will pay an additional $4 million over the next two years.
Additionally, in April 2004 we purchased a controlling interest in Minick Holding AG (“Minick”) for $10.5 million. Minick is a European-based company
which develops and operates interactive software applications for wireless devices such as SMS, EMS, and MMS messaging information, multimedia and
voting applications. See Note 8.
80:81
THQ : 2004 : ANNUAL REPORT