THQ 2006 Annual Report Download - page 37

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29
The following table details our net sales by territory for fiscal 2006 and 2005 (in thousands):
Fiscal Year Ended March 31, Increase/
2006 2005 (Decrease) % Change
NorthAmerica ............. $ 4 89,945 60.7%$ 4 70,619 62.2%$19,32 64.1%
Europe.................... 269,928 33.5 245,083 32.4 24,845 10.1%
Asia Pacific. ................ 46,687 5.8 41,029 5.4 5,658 13.8%
International ............... 316,615 39.3 286,112 37.8 30,503 10.7%
Consolidated netsales ....... $ 806,560100.0%$ 7 56,731 100.0% $49,829 6.6%
Net sales in fiscal 2006 increased 7% over the prior fiscal year, from $756.7 million to $806.6 million. The
increase in net sales was primarily due to the following:
•An increase in the number of titles that shipped more than one million units in the fiscal year from
six in fiscal 2005 to 10 in fiscal 2006.
•Higher fiscal 2006 sales of new original, owned properties targeted to the core gamer, Juiced,
Destroy All Humans! and The Outfit,our first next generation console title, as compared to core
gamer titles released in the prior fiscal year: Full Spectrum Warrior™, The Punisher and Warhammer
40,000: Dawn of War.
•International net sales increased $30.5 million and 11% in fiscal 2006 as compared to fiscal 2005
due to continued sales and marketing expansion in the international markets as well as the release
of games with increased international appeal.
•The continued sales of games released in prior fiscal years (we refer to this as “catalog sales”).
•Higher sales of games on handheld platforms due to the introduction of Nintendo Dual Screen and
PlayStation Portable.
•These items were partially offset by lower fiscal 2006 sales of titles based on two of our key brands:
The Incredibles: Rise of the Underminerand SpongeBob SquarePants: Lights, Camera, PANTS! as
compared to fiscal 2005 releases: The Incredibles and The SpongeBob SquarePants Movie, which
were released in conjunction with their respective movie releases.
North America
Year-over-year net sales growth in North America was primarily due to sales of original, owned properties
targeted to the core gamer, Destroy All Humans! andJuiced, sales of games based on our WWE
SmackDown vs. Raw franchise on current generation console platforms as well as the first-time release of
the WWE SmackDown vs. Raw franchise on PSP. These items were partially offset by lower fiscal 2006
sales of The Incredibles: Rise of the Underminerand SpongeBob SquarePants: Lights, Camera, PANTS! as
compared to fiscal 2005 releases of The Incredibles and The SpongeBob SquarePants Movie, which were
released in conjunctionwith their respective movie releases.
While we expect net sales in North America to continue to constitute the largest portion of our net sales in
fiscal 2007, we expect net sales for North America as a percentage of total sales to decrease slightly as we
continue to expand our international direct sales and product mix.
International
Year-over-year international net sales growth was primarily due to increased sales of our original, owned
properties targeted to the core gamer, Juiced and Destroy All Humans!, as compared to Full Spectrum
Warrior and The Punisher in the prior fiscal year, as well as increased sales of games based on our WWE