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ATVI » Topics » Cost of Sales - Product Costs (amounts in thousands)

This excerpt taken from the ATVI 10-Q filed Aug 8, 2008.

Cost of Sales – Product Costs (amounts in thousands)

 

Three Months
Ended

 

% of

 

Three Months
Ended

 

% of

 

 

 

 

 

June 30,

 

Consolidated

 

June 30,

 

Consolidated

 

Increase/

 

Percent

 

2008

 

Net Revenues

 

2007

 

Net Revenues

 

(Decrease)

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

$

311,941

 

48

%

$

217,229

 

44

%

$

94,712

 

44

%

 

“Cost of sales – product costs” represented 48% and 44% of consolidated net revenues for the three months ended June 30, 2008 and 2007, respectively.  In absolute dollars, “cost of sales – product costs” increased $94.7 million from $217.2 million for the three months ended June 30, 2007 to $311.9 million for the three months ended June 30, 2008.  The increase in absolute dollars is due to an increase in consolidated net revenues of 32% from $495.5 million for the quarter ended June 30, 2007 to $654.2 million for the three months ended June 30, 2008.  An additional factor that affected “cost of sales – product costs” as a percentage of consolidated net revenues was the release of an affiliated LucasArts’ title Lego: Indiana Jones the Original Adventure, which in general carries higher product costs than non-affiliated titles.

 

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