EX-99.1 2 a9302010ex991.htm EX-99.1 WebFilings | EDGAR view
 

FOR IMMEDIATE RELEASE
 
29903 Agoura Road, Agoura Hills, California 91301
 
Telephone: 818 871-5000 Fax: 818 871-7400
Julie MacMedan
THQ/Investor & Media Relations
818/871-5125
 
 
 
THQ REPORTS FISCAL 2011 SECOND QUARTER RESULTS IN LINE WITH GUIDANCE
-- Holiday Quarter Marks Beginning of Robust Multi-Year Product Pipeline --
 
AGOURA HILLS, Calif. - November 3, 2010 - THQ Inc. (NASDAQ: THQI) today reported financial results for the fiscal 2011 second quarter ended September 30, 2010, in line with the company's guidance.
For the fiscal second quarter ended September 30, 2010, THQ reported net sales of $77.1 million, compared with $101.3 million in the prior-year period. On a non-GAAP basis, for the three months ended September 30, 2010, the company reported net sales of $70.4 million, compared with $100.4 million a year ago.
For the three months ended September 30, 2010, the company reported a net loss of $47.0 million, or $0.69 per share, compared with a net loss of $5.6 million, or $0.08 per share, in the prior-year period. On a non-GAAP basis, for the three months ended September 30, 2010, the company reported a net loss of $40.6 million, or $0.60 per share, compared with a non-GAAP net loss of $25.2 million, or $0.37 per share, in the prior-year period.
A reconciliation of non-GAAP to GAAP results is provided in the accompanying financial tables.
THQ President and CEO Brian Farrell said, “This holiday begins the consistent flow of quality products that we've been investing in over the past two years. Our December quarter will be led by WWE® SmackDown® vs. Raw® 2011 and our new uDraw™GameTablet™. Key releases for our March quarter include our new core game franchise Homefront™ as well as WWE® All Stars™, UFC® Personal Trainer™ and de Blob® 2.”
Farrell added, “We continue to invest in our long-term product pipeline, with the recent eight-year extension of our UFC® relationship, and the planned addition of Patrice Désilets to our growing team of talented artists creating new intellectual properties for THQ. Our goal this fiscal year continues to be to position THQ for significant growth in fiscal 2012 and beyond, with high quality core games such as Red Faction® Armageddon™, Warhammer® 40,000®: Space Marine®, and the next installment of our Saints Row® franchise scheduled for release in fiscal 2012. We continue to execute on our strategy of integrating a digital component into all of our key franchises, including downloadable content and games on the iPhone, iPad, Facebook, Xbox LIVE Arcade and PlayStation® Network."
Fiscal 2011 Second Quarter Highlights and Recent Developments
•    
On August 17, 2010, THQ unveiled its new uDraw GameTablet, a first-of-its-kind, innovative new gaming accessory developed by THQ for the Wii™. The uDraw GameTablet is scheduled to hit U.S. retail store shelves on November 14, 2010.
•    
On October 19, 2010, THQ announced its plans for talented game developer Patrice Désilets, creative director on the Assassin's Creed franchise, to join the company next summer to form a new THQ-owned development studio in Montreal, Quebec, with the purpose of creating new intellectual properties.
•    
On October 19, 2010, THQ announced that it extended its exclusive, worldwide agreement with Zuffa, LLC to publish videogames and social and mobile applications based on the Ultimate Fighting Championship® brand through 2018.
•    
On October 18, 2010, the company announced a new multi-year licensing agreement with Nickelodeon, granting THQ the worldwide rights to continue to develop and publish video games based on the highly popular SpongeBob™ SquarePants™ franchise.
 
Business Outlook
Fiscal Year Ending March 31, 2011
The company expects to report non-GAAP fiscal 2011 net sales in the range of $825 - $855 million and a non-GAAP loss per share in the range of $0.10 - $0.20 for the full year.
Fiscal Third Quarter Ending December 31, 2010
THQ expects to report non-GAAP fiscal 2011 third quarter net sales in the range of $300 - $315 million, and non-GAAP earnings per share in the range of $0.20 - $0.30, before applying the "if converted" method of calculating EPS, and $0.19 - $0.27 after applying the "if converted" method of calculating EPS.
Fiscal Fourth Quarter Ending March 31, 2011
THQ expects to report non-GAAP fiscal 2011 fourth quarter net sales in the range of $295 - $310 million, and non-GAAP earnings per share in the range of $0.35 - $0.45, before applying the "if converted" method of calculating EPS, and $0.31 - $0.40 after applying the "if converted" method of calculating EPS.
The "if converted" method of calculating EPS should be applied in any quarter with net income of at least $8 million and in any full year with net income of at least $32 million.
Non-GAAP Financial Measures
In addition to results determined in accordance with GAAP, the company discloses certain non-GAAP financial measures that exclude the following:
•    
stock-based compensation expense,
•    
the impact of certain deferred revenue and related costs,
•    
business realignment expense,
•    
other-than-temporary impairment on investments and any subsequent realized gains on those investments, and mark-to-market adjustments on investments, and
•    
material litigation settlements, charges and benefits.
For non-GAAP purposes, the company uses a fixed, long-term projected tax rate of 15% to evaluate its operating performance, as well as to forecast, plan and analyze future periods.
THQ may consider whether other significant items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.
The company excludes these expenses from its non-GAAP financial measures primarily because its management does not believe they reflect the company's primary business, ongoing operating results or future outlook. THQ's management believes that the use of non-GAAP financial measures provides meaningful supplemental information regarding its financial condition and results of operations, and helps investors compare actual results to its long-term operating goals as well as to its performance in prior periods. The non-GAAP financial measures included in this earnings release have been reconciled to the comparable GAAP results in the accompanying tables, and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
In addition to the reasons stated above, which are generally applicable to each of the items THQ excludes from its non-GAAP financial measures, the company's management uses certain of the non-GAAP financial measures for the following reasons:
Stock-Based Compensation. THQ does not consider stock-based compensation charges when evaluating the performance of its business or formulating its operating plans. Stock-based compensation charges are subject to significant fluctuation outside of the control of management due to the variables used to estimate the fair value of a share-based payment, such as THQ's stock price, interest rates and the volatility of the company's stock price. Further, when considering the impact of equity award grants, THQ places a greater emphasis on the use of such grants as retention tools for long-term stockholder value creation, as well as overall stockholder dilution, rather than the accounting charges associated with such grants.
Deferred Revenue/Costs. The company recognizes the revenue and related costs from the sale of certain titles for which the online service is determined to be a deliverable over the estimated online service period. Although the company defers the recognition of all or a portion of its net revenue and costs with respect to these titles, there is no impact to its operating cash flow. THQ's management excludes the impact of deferred net revenue and costs when evaluating the company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team.
Business Realignment Expense. Although THQ has incurred business realignment expenses in the past, each charge relates to a discrete event based on a unique set of business objectives. Management does not believe these charges reflect the company's primary business, ongoing operating results or future outlook. As such, the company believes it is appropriate to exclude these expenses from its non-GAAP financial measures.
Fiscal Periods
Our fiscal year ends on the Saturday nearest March 31st. For simplicity, we present all fiscal periods as ending on a calendar month end. Our fiscal 2011 second quarter ended on October 2, 2010. Our fiscal 2010 second quarter ended on September 26, 2009. The fiscal three month periods ended September 30, 2010 and 2009 consisted of 13 weeks.
Investor Conference Call
THQ will host a conference call to discuss fiscal 2011 second quarter results today at 2:00 p.m. Pacific/5:00 p.m. Eastern. Please dial 877.356.8075 domestic or 706.902.0203 international, conference ID 17900312 to listen to the call or visit the THQ Inc. Investor Relations Home page at http://investor.thq.com. The online archive of the broadcast will be available approximately two hours after the live call ends. In addition, a telephonic replay of the conference call will be provided approximately two hours after the live call ends through November 5, 2010, by dialing 800.642.1687, domestic, or 706.645.9291, international, conference ID 17900312.
About THQ
THQ Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher of interactive entertainment software. Headquartered in Los Angeles County, California, THQ sells product through its global network of offices located throughout North America, Europe and Asia Pacific. More information about THQ and its products may be found at www.thq.com. THQ, de Blob , Homefront, Red Faction Armageddon, Saints Row, uDraw, uDraw GameTablet and their respective logos are trademarks and/or registered trademarks of THQ Inc.
Microsoft, Xbox, Xbox 360, Xbox LIVE, the Xbox logos, and the Xbox LIVE Arcade logo are either registered trademarks or trademarks of Microsoft Corporation in the U.S. and/or other countries.
“PlayStation” is a registered trademark of Sony Computer Entertainment Inc.
Wii, Nintendo DS and Nintendo DSi are trademarks of Nintendo.
All other trademarks are property of their respective owners.
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, the company's expectations for the third and fourth quarters and full fiscal year ending March 31, 2011, and for the company's product releases in future periods. These forward-looking statements are based on current expectations, estimates and projections about the business of THQ Inc. and its subsidiaries (collectively referred to as “THQ”) and are based upon management's beliefs and certain assumptions made by management. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive and technological factors affecting the operations, markets, products, services and pricing of THQ. Unless otherwise required by law, THQ disclaims any obligation to update its view on any such risks or uncertainties or to revise or publicly release the results of any revision to these forward-looking statements. Readers should carefully review the risk factors and the information that could materially affect THQ's financial results, described in other documents that THQ files from time to time with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for the fiscal period ended March 31, 2010, and particularly the discussion of risk factors that may affect results of operations set forth therein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
 
# # #
(Tables Follow)

 
 

 

 
 

THQ Inc. and Subsidiaries
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2010
 
2009
 
2010
 
2009
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
77,053
 
 
$
101,290
 
 
$
226,432
 
 
$
344,791
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales:
 
 
 
 
 
 
 
 
 
 
 
 
Product costs
35,003
 
 
38,975
 
 
95,706
 
 
118,904
 
 
 
Software amortization and royalties
21,162
 
 
24,191
 
 
54,515
 
 
69,227
 
 
 
License amortization and royalties
9,583
 
 
(9,049
)
 
30,473
 
 
23,490
 
 
 
Total cost of sales
65,748
 
 
54,117
 
 
180,694
 
 
211,621
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
11,305
 
 
47,173
 
 
45,738
 
 
133,170
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Product development
17,900
 
 
19,304
 
 
34,375
 
 
41,462
 
 
 
Selling and marketing
24,023
 
 
19,028
 
 
57,649
 
 
57,471
 
 
 
General and administrative
11,878
 
 
14,055
 
 
23,722
 
 
30,633
 
 
 
Restructuring
(161
)
 
870
 
 
7
 
 
2,522
 
 
 
Total operating expenses
53,640
 
 
53,257
 
 
115,753
 
 
132,088
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
(42,335
)
 
(6,084
)
 
(70,015
)
 
1,082
 
 
 
Interest and other income (expense), net
(3,991
)
 
290
 
 
(5,581
)
 
349
 
 
 
Income (loss) before income taxes
(46,326
)
 
(5,794
)
 
(75,596
)
 
1,431
 
 
 
Income taxes
659
 
 
154
 
 
1,499
 
 
1,154
 
 
 
Net income (loss) prior to alloction of noncontolling interest
(46,985
)
 
(5,948
)
 
(77,095
)
 
277
 
 
 
Loss attributable to noncontrolling interest
—
 
 
378
 
 
—
 
 
562
 
 
 
Net income (loss) attributable to THQ Inc.
$
(46,985
)
 
$
(5,570
)
 
$
(77,095
)
 
$
839
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to THQ Inc. - basic
$
(0.69
)
 
$
(0.08
)
 
$
(1.14
)
 
$
0.01
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to THQ Inc. - diluted
$
(0.69
)
 
$
(0.08
)
 
$
(1.14
)
 
$
0.01
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares used in per share calculation - basic
67,813
 
 
67,462
 
 
67,779
 
 
67,466
 
 
 
Shares used in per share calculation - diluted
67,813
 
 
67,462
 
 
67,779
 
 
67,745
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

THQ Inc. and Subsidiaries
Reconciliation of GAAP net income (loss) to Non-GAAP net income (loss) (a) 
(In thousands, except per share data)
 
 
Three Months Ended September 30,
 
Six Months Ended September 30,
 
 
 
2010
 
2009
 
2010
 
2009
 
 
Net sales
$
77,053
 
 
$
101,290
 
 
$
226,432
 
 
$
344,791
 
 
 
Changes in deferred net revenue
(6,658
)
 
(909
)
 
4,232
 
 
(10,511
)
 
 
Non-GAAP net sales
$
70,395
 
 
$
100,381
 
 
$
230,664
 
 
$
334,280
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Six Months Ended September 30,
 
 
 
2010
 
2009
 
2010
 
2009
 
 
Operating income (loss)
$
(42,335
)
 
$
(6,084
)
 
$
(70,015
)
 
$
1,082
 
 
 
Non-GAAP adjustments affecting operating income (loss):
 
 
 
 
 
 
 
 
 
JAKKS preferred return rate reduction (b)
—
 
 
(24,221
)
 
—
 
 
(24,221
)
 
 
Change in deferred net revenue
(6,658
)
 
(909
)
 
4,232
 
 
(10,511
)
 
 
Change in deferred cost of sales (c)
1,075
 
 
102
 
 
(179
)
 
5,281
 
 
 
Business realignment expenses (c)
(161
)
 
352
 
 
7
 
 
2,828
 
 
 
Stock-based compensation and related costs (c)
1,829
 
 
768
 
 
4,357
 
 
3,702
 
 
 
Total non-GAAP adjustments affecting operating income (loss)
(3,915
)
 
(23,908
)
 
8,417
 
 
(22,921
)
 
 
Non-GAAP operating loss
$
(46,250
)
 
$
(29,992
)
 
$
(61,598
)
 
$
(21,839
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Six Months Ended September 30,
 
 
 
2010
 
2009
 
2010
 
2009
 
 
Net income (loss) attributable to THQ Inc.
$
(46,985
)
 
$
(5,570
)
 
$
(77,095
)
 
$
839
 
 
 
Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
Non-GAAP adjustments affecting operating income (loss)
(3,915
)
 
(23,908
)
 
8,417
 
 
(22,921
)
 
 
Gain on sale of investments (d)
—
 
 
(152
)
 
—
 
 
(640
)
 
 
Mark-to-market adjustments on investments (e)
2,524
 
 
(234
)
 
2,524
 
 
(95
)
 
 
Interest and other income, net
—
 
 
(63
)
 
—
 
 
(63
)
 
 
Income tax adjustments (f)
7,817
 
 
4,678
 
 
11,197
 
 
4,498
 
 
 
Non-GAAP net loss
$
(40,559
)
 
$
(25,249
)
 
$
(54,957
)
 
$
(18,382
)
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP loss per share - diluted (g)
$
(0.60
)
 
$
(0.37
)
 
$
(0.81
)
 
$
(0.27
)
 
___________________
Notes:
(a)    
See explanation above regarding the Company's practice on reporting non-GAAP financial measures.
(b)    
Represents the one-time reduction in accrued joint venture partner expense resulting from the settlement of the preferred return rate with JAKKS Pacific.
(c)    
See table below for further detail related to income statement classification of these adjustments.
(d)    
Realized gains on sales of investments to the extent we had previously excluded a related other-than-temporary impairment from non-GAAP

 
 

amounts.
(e)    
Mark-to-market adjustments, including the impact of changes in foreign currency rates, related to certain of our available-for-sale investment securities; these amounts are recorded in “Accumulated other comprehensive income,” a component of stockholders' equity, on our balance sheet until realized.  Adjustment also may include unrealized gains on trading Auction Rate Securities (ARS), partially offset by related unrealized losses on a put option received in connection with the ARS; this amount is recorded in “Interest and other income, net.”
(f)    
For non-GAAP purposes, the Company uses a fixed, long-term projected tax rate of 15% to evaluate its operating performance, as well as to forecast, plan and analyze future periods.
(g)    
Non-GAAP loss per share - diluted has not been calculated using the “if-converted” method relative to the Convertible Senior Notes (Notes) issued in August 2009 as their inclusion would have been anti-dilutive.

 
 

 
 
 
 
The following table provides further detail on the income statement classification of certain non-GAAP adjustments that impact cost and expenses:
 
 
 
 
Three Months Ended September 30,
 
Six Months Ended September 30,
 
 
 
 
2010
 
2009
 
2010
 
2009
 
 
Change in deferred cost of sales:
 
 
 
 
 
 
 
 
 
 
Change in deferred product costs
 
$
119
 
 
$
(51
)
 
$
467
 
 
$
2,693
 
 
 
Change in deferred software amortization and royalties
 
—
 
 
153
 
 
—
 
 
2,588
 
 
 
Change in deferred license amortization and royalties
 
956
 
 
—
 
 
(646
)
 
—
 
 
 
Total change in deferred cost of sales
 
$
1,075
 
 
$
102
 
 
$
(179
)
 
$
5,281
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business realignment expenses:
 
 
 
 
 
 
 
 
 
 
Product development
 
$
—
 
 
$
(508
)
 
$
—
 
 
$
(253
)
 
 
Selling and marketing
 
—
 
 
4
 
 
—
 
 
497
 
 
 
General and administrative
 
—
 
 
(14
)
 
—
 
 
62
 
 
 
Restructuring
 
(161
)
 
870
 
 
7
 
 
2,522
 
 
 
Total business realignment expenses
 
$
(161
)
 
$
352
 
 
$
7
 
 
$
2,828
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation and related costs:
 
 
 
 
 
 
 
 
 
 
Cost of sales - software amortization and royalties (a)
 
$
548
 
 
$
830
 
 
$
819
 
 
$
1,367
 
 
 
Product development (a)
 
(118
)
 
(265
)
 
623
 
 
322
 
 
 
Selling and marketing (a)
 
318
 
 
(33
)
 
676
 
 
64
 
 
 
General and administrative (a)
 
1,081
 
 
236
 
 
2,239
 
 
1,949
 
 
 
Total stock-based compensation and related costs
 
$
1,829
 
 
$
768
 
 
$
4,357
 
 
$
3,702
 
 
 
 
 
 
 
 
 
 
 
 
 
___________________
Notes:
(a)    
Stock-based compensation expense for the three and six months ended September 30, 2009 is net of the impact of the reversal of a portion of payroll tax accruals established in fiscal 2007 during our historical stock option grant investigation.
 

 
 

THQ Inc. and Subsidiaries
Unaudited Consolidated Balance Sheets
(In thousands)
 
 
 
September 30,
2010
 
March 31,
2010
 
 
ASSETS
 
 
 
 
 
Cash, cash equivalents and short-term investments
$
122,763
 
 
$
271,319
 
 
 
Short-term investments, pledged
—
 
 
22,774
 
 
 
Accounts receivable, net of allowances
10,511
 
 
41,318
 
 
 
Inventory
21,234
 
 
13,970
 
 
 
Licenses
74,998
 
 
56,555
 
 
 
Software development
170,271
 
 
132,223
 
 
 
Deferred income taxes
7,297
 
 
5,590
 
 
 
Income taxes receivable
1,067
 
 
4,914
 
 
 
Prepaid expenses and other current assets
40,347
 
 
13,864
 
 
 
Total current assets
448,488
 
 
562,527
 
 
 
Property and equipment, net
31,038
 
 
28,374
 
 
 
Licenses, net of current portion
95,436
 
 
83,752
 
 
 
Software development, net of current portion
53,802
 
 
26,792
 
 
 
Deferred income taxes
433
 
 
433
 
 
 
Long-term investments
1,892
 
 
1,851
 
 
 
Other long-term assets, net
12,271
 
 
10,600
 
 
 
TOTAL ASSETS
$
643,360
 
 
$
714,329
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
Accounts payable
$
59,167
 
 
$
40,305
 
 
 
Accrued and other current liabilities
141,677
 
 
137,332
 
 
 
Secured credit line
—
 
 
13,249
 
 
 
Total current liabilities
200,844
 
 
190,886
 
 
 
Other long-term liabilities
82,856
 
 
98,825
 
 
 
Convertible senior notes
100,000
 
 
100,000
 
 
 
Total liabilities
383,700
 
 
389,711
 
 
 
Total THQ Inc. stockholders' equity
259,660
 
 
324,355
 
 
 
Noncontrolling interest
—
 
 
263
 
 
 
Total equity
259,660
 
 
324,618
 
 
 
TOTAL LIABILITIES AND EQUITY
$
643,360
 
 
$
714,329
 
 
 
 
 
 
 
 
 
 
 

 
 

THQ Inc. and Subsidiaries
Unaudited Supplemental Financial Information
(In thousands)
 
 
 
 
Three Months Ended GAAP
 
Six Months Ended GAAP
 
 
Platform Revenue Mix
 
September 30,
2010
 
September 30,
2009
 
September 30,
2010
 
September 30,
2009
 
 
Consoles
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Microsoft Xbox 360
 
$
14,260
 
 
18.5
%
 
$
21,698
 
 
21.4
%
 
$
58,773
 
 
26.0
%
 
$
119,152
 
 
34.5
%
 
 
Nintendo Wii
 
13,011
 
 
16.9
 
 
9,359
 
 
9.2
 
 
32,171
 
 
14.2
 
 
22,652
 
 
6.6
 
 
 
Sony PlayStation 3
 
12,279
 
 
15.9
 
 
17,467
 
 
17.3
 
 
59,733
 
 
26.4
 
 
95,734
 
 
27.8
 
 
 
Sony PlayStation 2
 
1,903
 
 
2.5
 
 
8,189
 
 
8.1
 
 
6,606
 
 
2.9
 
 
14,890
 
 
4.3
 
 
 
Other
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
5
 
 
—
 
 
 
 
 
41,453
 
 
53.8
 
 
56,713
 
 
56.0
 
 
157,283
 
 
69.5
 
 
252,433
 
 
73.2
 
 
 
Handheld
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nintendo Dual Screen
 
17,246
 
 
22.4
 
 
19,842
 
 
19.6
 
 
36,912
 
 
16.3
 
 
39,862
 
 
11.6
 
 
 
Sony PlayStation Portable
 
6,862
 
 
8.9
 
 
7,585
 
 
7.5
 
 
11,203
 
 
4.9
 
 
12,618
 
 
3.7
 
 
 
Wireless
 
1,499
 
 
1.9
 
 
2,779
 
 
2.7
 
 
3,088
 
 
1.4
 
 
6,974
 
 
2.0
 
 
 
 
 
25,607
 
 
33.2
 
 
30,206
 
 
29.8
 
 
51,203
 
 
22.6
 
 
59,454
 
 
17.3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PC
 
9,993
 
 
13.0
 
 
14,371
 
 
14.2
 
 
17,946
 
 
7.9
 
 
32,904
 
 
9.5
 
 
 
Total net sales
 
$
77,053
 
 
100.0
%
 
$
101,290
 
 
100.0
%
 
$
226,432
 
 
100.0
%
 
$
344,791
 
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic Revenue Mix
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
45,253
 
 
58.7
%
 
$
56,471
 
 
55.8
%
 
$
146,388
 
 
64.6
%
 
$
218,785
 
 
63.5
%
 
 
Foreign
 
31,800
 
 
41.3
 
 
44,819
 
 
44.2
 
 
80,044
 
 
35.4
 
 
126,006
 
 
36.5
 
 
 
Total Net Sales
 
$
77,053
 
 
100.0
%
 
$
101,290
 
 
100.0
%
 
$
226,432
 
 
100.0
%
 
$
344,791
 
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 

 
 

 
 
 
Three Months Ended Non-GAAP
 
Six Months Ended Non-GAAP
 
 
Platform Revenue Mix
 
September 30,
2010
 
September 30,
2009
 
September 30,
2010
 
September 30,
2009
 
 
Consoles
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Microsoft Xbox 360
 
$
10,996
 
 
15.6
%
 
$
21,634
 
 
21.5
%
 
$
61,211
 
 
26.5
%
 
$
119,104
 
 
35.6
%
 
 
Nintendo Wii
 
13,011
 
 
18.5
 
 
9,359
 
 
9.3
 
 
32,171
 
 
13.9
 
 
22,652
 
 
6.8
 
 
 
Sony PlayStation 3
 
8,953
 
 
12.7
 
 
17,364
 
 
17.3
 
 
61,747
 
 
26.8
 
 
87,520
 
 
26.2
 
 
 
Sony PlayStation 2
 
1,903
 
 
2.7
 
 
8,190
 
 
8.2
 
 
6,606
 
 
2.9
 
 
14,891
 
 
4.4
 
 
 
Other
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
5
 
 
—
 
 
 
 
 
34,863
 
 
49.5
 
 
56,547
 
 
56.3
 
 
161,735
 
 
70.1
 
 
244,172
 
 
73.0
 
 
 
Handheld
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nintendo Dual Screen
 
17,246
 
 
24.5
 
 
19,842
 
 
19.8
 
 
36,912
 
 
16.0
 
 
39,862
 
 
11.9
 
 
 
Sony PlayStation Portable
 
6,862
 
 
9.8
 
 
7,585
 
 
7.5
 
 
11,203
 
 
4.9
 
 
12,618
 
 
3.8
 
 
 
Wireless
 
1,499
 
 
2.1
 
 
2,779
 
 
2.8
 
 
3,088
 
 
1.3
 
 
6,974
 
 
2.1
 
 
 
 
 
25,607
 
 
36.4
 
 
30,206
 
 
30.1
 
 
51,203
 
 
22.2
 
 
59,454
 
 
17.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PC
 
9,925
 
 
14.1
 
 
13,628
 
 
13.6
 
 
17,726
 
 
7.7
 
 
30,654
 
 
9.2
 
 
 
Total net sales
 
$
70,395
 
 
100.0
%
 
$
100,381
 
 
100.0
%
 
$
230,664
 
 
100.0
%
 
$
334,280
 
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic Revenue Mix
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
41,111
 
 
58.4
%
—
 
$
55,455
 
 
55.2
%
 
$
149,137
 
 
64.7
%
 
$
214,262
 
 
64.1
%
 
 
Foreign
 
29,284
 
 
41.6
 
 
44,926
 
 
44.8
 
 
81,527
 
 
35.3
 
 
120,018
 
 
35.9
 
 
 
Total Net Sales
 
$
70,395
 
 
100.0
%
 
$
100,381
 
 
100.0
%
 
$
230,664
 
 
100.0
%
 
$
334,280
 
 
100.0
%