THQ 2010 Annual Report Download - page 52

Download and view the complete annual report

Please find page 52 of the 2010 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 102

  • 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
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

44
TH Q INC. AND SU B S IDI A RI E S
CONS OLI DATE D STATE ME NT S O F O P ERA T I ON S
(In thousands, ex cept per share data)
Fiscal Year Ended March 31,
2010
2009
2008
Net sales ............................................................................................................. $899,137 $829,963 $1,030,467
Cost of sales:
Product costs.................................................................................................. 318,590 338,882 389,097
Software amortization and royalties ............................................................ 196,956 296,688 231,800
License amortization and royalties .............................................................. 95,972 83,066 99,524
Venture partner expense.............................................................................. 14,531 19,707 24,056
Total cost of sales ...................................................................................... 626,049 738,343 744,477
Gross profit.................................................................................................. 273,088 91,620 285,990
Operating expenses:
Product development .................................................................................... 87,233 109,201 128,869
Selling and marketing.................................................................................... 131,954 162,183 175,288
General and administrative........................................................................... 57,879 76,884 69,901
Goodwill impairment....................................................................................... — 118,799 —
Restructuring .................................................................................................. 5,671 12,266 —
Total operating expenses ......................................................................... 282,737 479,333 374,058
Operating loss ............................................................................................ (9,649) (387,713) (88,068)
Interest and other income (expense), net.................................................. (2,056) 483 15,433
Loss from continuing operations before income taxes................................. (11,705) (387,230) (72,635)
Income taxes .................................................................................................. 247 46,226 (35,785)
Loss from continuing operations ..................................................................... (11,952) (433,456) (36,850)
Gain on sale of discontinued operations, net of tax .................................... —
2,042 1,513
Net loss prior to allocation of noncontrolling interest .................................... (11,952) (431,414) (35,337)
Loss attributable to noncontrolling interest ................................................ 2,935 302 —
Net loss attributable to THQ Inc. ..................................................................... $(9,017) $(431,112) $(35,337)
Earnings (loss) per share attributable to THQ Inc.—basic:
Continuing operations(1) ................................................................................ $(0.13) $(6.48) $(0.55)
Discontinued operations............................................................................... —
0.03 0.02
Loss per share—basic................................................................................... $(0.13) $(6.45) $(0.53)
Earnings (loss) per share attributable to THQ Inc.—diluted:
Continuing operations(1) ................................................................................ $(0.13) $(6.48) $(0.55)
Discontinued operations............................................................................... —
0.03 0.02
Loss per share—diluted ................................................................................ $(0.13) $(6.45) $(0.53)
Shares used in per share calculation—basic ................................................ 67,522 66,861 66,475
Shares used in per share calculation—diluted .............................................. 67,522 66,861 66,475
(1) Based on amounts attributable to THQ Inc. (i.e., subsequent to the allocation of noncontrolling
interest).
See notes to consolidated financial statements.