THQ 2008 Annual Report Download - page 31

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Item 6. Selected Consolidated Financial Data
The following table summarizes certain selected consolidated financial data, which should be read in
conjunction with our consolidated financial statements and Notes thereto and with Management’s
Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein. The
selected consolidated financial data presented below as of and for each of the fiscal years in the five-year
period ended March 31, 2008 are derived from our audited consolidated financial statements. The
consolidated balance sheets as of March 31, 2008, and 2007, and the consolidated statements of operations
for the fiscal years ended March 31, 2008, 2007 and 2006, and the report thereon are included elsewhere in
this Form 10-K.
STATEMENT OF OPERATIONS DATA
(In thousands, except per share data)
Fiscal Year Ended March 31,
2008 2007 2006 2005(a) 2004(b)
Net sales ............................... $1,030,467 $1,026,856 $806,560 $756,731 $640,846
Costs and expenses:
Cost of sales—product costs ................ 389,097 351,449 287,946 255,187 234,574
Cost of sales—software amortization and royalties . 231,800 165,462 116,371 93,622 105,632
Cost of sales—license amortization and royalties . . 99,524 99,533 80,508 85,926 71,132
Cost of sales—venture partner expense ......... 24,056 16,730 12,572 9,774 9,675
Product development ..................... 128,869 97,105 94,575 80,090 42,292
Selling and marketing ..................... 175,288 139,958 124,809 111,444 88,295
General and administrative ................. 69,901 78,413 57,944 50,278 43,831
Total costs and expenses ................. 1,118,535 948,650 774,725 686,321 595,431
Income (loss) from continuing operations ......... (88,068) 78,206 31,835 70,410 45,415
Interest and other income, net ................ 15,433 12,822 7,955 6,483 7,720
Income (loss) from continuing operations before
income taxes and minority interest ............ (72,635) 91,028 39,790 76,893 53,135
Income taxes ......................... (35,785) 26,206 7,621 15,235 19,063
Income (loss) from continuing operations before
minority interest ........................ (36,850) 64,822 32,169 61,658 34,072
Minority interest ...................... — 136 (63) (261) —
Income (loss) from continuing operations ......... (36,850) 64,958 32,106 61,397 34,072
Gain on sale of discontinued operations, net of tax . . 1,513 3,080 — — —
Net income (loss) ......................... $ (35,337) $ 68,038 $ 32,106 $ 61,397 $ 34,072
Earnings (loss) per share—basic:
Continuing operations .................... $ (0.55) $ 1.00 $ 0.51 $ 1.05 $ 0.59
Discontinued operations ................... 0.02 0.05 — — —
Earnings (loss) per share—basic ............. $ (0.53) $ 1.05 $ 0.51 $ 1.05 $ 0.59
Earnings (loss) per share—diluted:
Continuing operations .................... $ (0.55) $ 0.96 $ 0.49 $ 1.02 $ 0.58
Discontinued operations ................... 0.02 0.05 — — —
Earnings (loss) per share—diluted ............ $ (0.53) $ 1.01 $ 0.49 $ 1.02 $ 0.58
Shares used in per share calculation—basic ....... 66,475 65,039 62,615 58,545 57,279
Shares used in per share calculation—diluted ...... 66,475 67,593 65,520 60,367 58,605
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