動視暴雪 (ATVI) 2002 Q4 法說會逐字稿

Welcome, ladies and gentlemen, to the ActiVision 2002 fiscal year-end conference call. Please welcome today's speaker Miss . Please go ahead, ma'am. Salvi: Thank you. Good afternoon and thank you all for joining us today. Before turning to our year-end results, I'll quickly review our safe harbor by reminding everyone that the statements made during this call are not historical facts are forward-looking statements. Although the company believes that its plans, intentions and expectations reflected in such forward-looking statements are reasonable, a number of important our actual future results to differ materially from those expressed in any such forward-looking statements. These important factors and other factors that can potentially affect our financial results are described in our filings with the FCC including form 10K for the year ending March 31st, 2001. Now I would like to introduce Bobby Kotick, our chairman and CEO. kotick: Thank you, . It's my pleasure to share our record results again with you today and the combination of a stronger and expected videogame market and our own continued worldwide success, field net revenues and earnings in the quarter of the fiscal year that were the highest in Activision's history. Our results for the first quarter after the fourth quarter of the fiscal year were well ahead of expectations driven by a number of titles across multiple platforms in all geographies. Consistent with our historical performance, we outperformed the overall software market by over two times and once again ended the fiscal year as the number two independent publisher. Fiscal 2002 was not only a record year for ActiVision in terms of our financial performance, but it was also a year in which we significantly strengthened our business. A year ago we promised that our number one objective in fiscal '02 was margin expense . I can tell you . Today with .

女士、先生們，歡迎參加 ActiVision 2002 財政年度年終電話會議。歡迎今天的演講者 小姐。請繼續，女士。薩爾維：謝謝。下午好，感謝大家今天加入我們。在討論我們的年終業績之前，我將快速回顧我們的安全港，提醒大家，本次電話會議中所做的陳述不是歷史事實，而是前瞻性陳述。儘管該公司認為此類前瞻性陳述中反映的計劃、意圖和期望是合理的，但一些重要的因素我們未來的實際結果與任何此類前瞻性陳述中表達的結果有重大差異。這些重要因素和其他可能影響我們財務表現的因素在我們向FCC 提交的文件中進行了描述，其中包括截至2001 年3 月31 日的年度的10K 表格。現在我想介紹一下我們的董事長兼首席執行長Bobby Kotick。科蒂克：謝謝你，。我很高興今天再次與大家分享我們創紀錄的業績，以及更強大和預期的視頻遊戲市場與我們在全球範圍內持續取得的成功相結合，本財年第一季度的淨收入和利潤創下了動視歷史上的最高水準。我們在本財年第四季之後的第一季的業績遠遠超出了所有地區多個平台上的眾多遊戲所推動的預期。與我們的歷史表現一致，我們的表現比整個軟體市場高出兩倍多，並在本財年結束時再次成為第二大獨立發行商。 2002 財政年度不僅是 ActiVision 財務表現創紀錄的一年，也是我們大幅增強業務的一年。一年前，我們承諾 02 財年的首要目標是保證金支出。我可以告訴你。今天與。

Fiscal '02 significantly strengthened our balance sheet in our financial position. We finished the year with $279 million of internally generated cash. in the industry, we enter fiscal '03 with a clear, competitive advantage. Another objective for the fiscal year was to grow our international business. We ended the calendar year as the number two independent publisher in the U.K., the largest market outside the U.S., and the appeal our broad portfolio of recognizable brands is translating into global leadership. Finally, I wanted to highlight an area in which we've had remarkable success this year and that is acquisitions. During the fiscal year, we acquired three well-known developers, Shaba, Gray Matter and Treyarch, each of which has developed a AAA title in the past nine months and each of those titles have shipped in excess of a million units. Shaba developed the highly successful Tony Hawk 3 for the PlayStation; Gray Matter released Return to Castle Wolfenstein; and most recently, Treyarch developed our blockbuster Spider-Man game for Next Generation consoles. These companies are comprised of 225 of the industry's most talented designers and developers, and they're a great addition to our teams at Neversoft Raven, Raven and our other studios.

02 財年我們的資產負債表的財務狀況顯著增強。全年結束時，我們內部產生的現金為 2.79 億美元。在產業中，我們進入 03 財年時具有明顯的競爭優勢。本財年的另一個目標是發展我們的國際業務。去年年底，我們成為英國（美國以外最大的市場）第二大獨立出版商，我們廣泛的知名品牌組合的吸引力正在轉化為全球領導地位。最後，我想強調今年我們取得了巨大成功的一個領域，那就是收購。本財年，我們收購了Shaba、Grey Matter 和Treyarch 三個知名開發商，這三個開發商在過去9 個月內都開發了AAA 遊戲，並且每款遊戲的出貨量都超過了100 萬套。 Shaba 為 PlayStation 開發了非常成功的《東尼霍克 3》； 《Gray Matter》發行《重返德軍總部》；最近，Treyarch 為下一代遊戲機開發了轟動一時的《蜘蛛人》遊戲。這些公司由 225 位業界最有才華的設計師和開發人員組成，他們是我們 Neversoft Raven、Raven 和我們其他工作室團隊的重要補充。

In fiscal '02, our strategies for the platform transition worked better than any of our competitors. This is a direct result of our investment in management and our institutional approach to marketing and product development. In fiscal '03, we will continue to focus in on increasing the stability, predictability and quality of our earnings through proven brands leveraged across multiple platforms. A prime example of this strategy is the first simultaneous launch of Spider-Man on five platforms, four of which were Next Generation hardware systems. Our simultaneous multi-platform launch strategy has proven to be a very successful one, and to date, we shipped approximately 1.5 million units of Spider-Man in North America alone.

在 02 財年，我們的平台轉型策略比任何競爭對手都更有效。這是我們在管理方面投資以及我們在行銷和產品開發方面的製度方法的直接結果。在 03 財年，我們將繼續致力於透過跨多個平台利用成熟的品牌來提高收入的穩定性、可預測性和品質。這項策略的典型例子是《蜘蛛人》首次在五個平台上同時發布，其中四個平台是下一代硬體系統。事實證明，我們的多平台同步發布策略非常成功，迄今為止，光是在北美我們就售出了大約 150 萬台《蜘蛛人》。

We entered fiscal '03 with another low-risk business plan and a strong portfolio of proven properties that will continue to drive predictability in our operating results. We also have our largest slate of development properties that is likely to lead to a number of new franchises. With market confidence and stronger visibility of our slate, we're once again raising our revenue and earnings guidance for fiscal '03. Our increased revenue guidance represents a five-year compound annual growth rate of 23 percent and earnings growth for the last five years of over 50 percent. We're also providing guidance for fiscal '04 which, driven by the large and growing worldwide, hardware-installed base and a slate of approximately 75 products in production and development for release next fiscal year, we believe will result in revenues in excess of $1 billion. We've entered the most exciting period in this industry's history. With our management depth, financial stability, strong infrastructure and product momentum, ActiVision is clearly positioned to take full advantage of the huge opportunities that lie ahead over the next few years. Ron Doornink will now share with you the highlights of our record performance and will provide more details for our updated guidance for fiscal '03 and fiscal '04.

進入 03 財年，我們制定了另一項低風險業務計劃和經過驗證的強大資產組合，這將繼續提高我們經營業績的可預測性。我們還擁有最大的開發物業，這可能會帶來許多新的特許經營權。隨著市場信心的增強和我們公司實力的增強，我們再次提高了 03 財年的營收和獲利指引。我們提高的收入指引意味著五年複合年增長率為 23%，過去五年的獲利成長率超過 50%。我們也為 04 財年提供了指導，在全球範圍內龐大且不斷增長的硬體安裝基礎以及下財年發布的大約 75 種正在生產和開發的產品的推動下，我們相信收入將超過10 億美元。我們已經進入了這個行業歷史上最令人興奮的時期。憑藉我們的管理深度、財務穩定性、強大的基礎設施和產品動力，動視已完全定位於充分利用未來幾年面臨的巨大機會。 Ron Doornink 現在將與您分享我們創紀錄業績的亮點，並將提供有關 03 財年和 04 財年更新指導的更多詳細資訊。

Thank you, Bobby. For the March quarter and net revenues, we're a record $165 million, up 30 percent versus the prior year and $20 million ahead of expectation. Earnings per share were a record 17 cents per share, up 15 cents versus the prior year and exceeding consensus by six cents. Our record results for the quarter were driven by strong, worldwide up 15 cents versus the prior year and exceeding first consensus by six cents. Our record results for the quarter were driven by strong, worldwide performance for such titles as Wreckless and Hawk's Pro Skater 3 of the Xbox and Bloody War on the GameCube, each of which was a top five title during the quarter as measured by MPD.

謝謝你，鮑比。 3 月季度的淨收入達到創紀錄的 1.65 億美元，比去年同期成長 30%，比預期高出 2,000 萬美元。每股盈餘創歷史新高 17 美分，較前一年成長 15 美分，超過六美分的共識。我們本季創紀錄的業績得益於全球範圍內的強勁增長，較去年同期增長了 15 美分，超過了第一六美分的共識。我們本季創紀錄的業績得益於Xbox 上的《Wreckless》和《Hawk's Pro Skater 3》以及GameCube 上的《Bloody War》等遊戲在全球範圍內的強勁表現，按照MPD 衡量，這兩款遊戲均位居本季前五名。

Our global PC business also performed above expectation with sales up 58 percent over last year. Driving our PC performance were Jedi Knight 2, which is topping the charts worldwide as we speak, Star Trek Bridge Commander and Tony Hawk 3 and continued sales of Return to Castle Wolfenstein. For the quarter, manufacturing and distribution expense was 53 percent, slightly higher than anticipated, mainly due to revenue mixed differences. Operating expenses including product costs were about 37 percent of revenues, down versus expectation due to tight control of product creation, marketing and overhead expenses. Our net income for the quarter was $11 million. That's $10 million ahead of last year.

我們的全球個人電腦業務也表現超出預期，銷售額比去年增長 58%。推動我們 PC 性能的因素包括《絕地武士 2》（目前已在全球排行榜上名列前茅）、《星際迷航橋指揮官》和《托尼霍克 3》以及《重返德軍總部》的持續銷售。本季製造和分銷費用為 53%，略高於預期，主要是由於收入混合差異所致。由於嚴格控制產品創造、行銷和管理費用，包括產品成本在內的營運費用約佔收入的 37%，低於預期。我們本季的淨利潤為 1100 萬美元。這比去年提前了 1000 萬美元。

Turning to our record fiscal year-end results, net revenues in fiscal '02 were $786 million, 27 percent greater than net revenues for the prior year. EPS came in at 88 cents per share, a 76 percent increase over last year's 50 cents. Our growth during the fiscal year was driven by solid progress across all major facets of our business. On a category basis, our action sports and first-person action titles performed above our expectation and our handheld business, even excluding action sports, grew significantly. Additionally, several of our development titles performed very well in the marketplace, including Mat Hoffman's Pro BMX and Wreckless. Our international business also grew faster than we expected both on the publishing end and the distribution side. To summarize then, in fiscal '02, our business was firing on all cylinders. The manufacturing and distribution expense for the year was 55 percent, operating expenses, including product costs were approximately 34 percent resulting in net income of $52 million, 155 percent increase over the prior year.

至於我們創紀錄的財年年終業績，2002 財年的淨收入為 7.86 億美元，比前一年的淨收入增加了 27%。 EPS 為每股 88 美分，比去年的 50 美分成長了 76%。我們在本財年的成長是由我們業務所有主要方面的紮實進展所推動的。從類別來看，我們的極限運動和第一人稱動作遊戲的表現超出了我們的預期，即使不包括極限運動，我們的手持業務也顯著增長。此外，我們開發的幾款遊戲在市場上表現非常出色，包括 Mat Hoffman 的 Pro BMX 和 Wreckless。我們的國際業務在出版端和發行端的成長速度也超出了我們的預期。總而言之，在 02 財年，我們的業務如火如荼地進行。該年度的製造和分銷費用為 55%，包括產品成本在內的營運費用約為 34%，淨利潤為 5,200 萬美元，比上年增長 155%。

Turning now to our March 31st balance sheet. We had $279 million in cash, an increase of 84 million since December 31st and up 153 million versus the same date last year. As of March 31st, we had $333 million of working capital to 43 million versus December 31st. The net accounts receivable balance on March 31st was $77 million, up slightly over the same period last year. For the second quarter in a row, DSO's hit an all-time low, this time 42 days, a decrease of ten days versus the prior year. The AR reserve of $42 million equals 35 percent of gross accounts receivables. This is somewhat higher than last year's percentage primarily because of the increased potential for prices to drift lower over the balance of the fiscal year. Inventories at the end of the quarter were $21 million, down 10 million versus the prior quarter and 25 million down versus the prior year.

現在來看看我們 3 月 31 日的資產負債表。我們擁有現金 2.79 億美元，自 12 月 31 日以來增加了 8,400 萬美元，比去年同期增加了 1.53 億美元。截至 3 月 31 日，我們的營運資金為 3.33 億美元，而 12 月 31 日為 4,300 萬美元。 3月31日應收帳款淨額為7,700萬美元，較去年同期小幅成長。 DSO 連續第二季創下歷史新低，這次為 42 天，比去年減少了 10 天。 4,200 萬美元的應收帳款準備金相當於應收帳款總額的 35%。這比去年的百分比略高，主要是因為本財年剩餘時間價格下跌的可能性增加。季度末庫存為 2,100 萬美元，比上季減少 1,000 萬美元，比去年同期減少 2,500 萬美元。

As we talked before in these calls, during this transition we really made inventory management an area focus and it shows in these numbers. Software development costs were up $6 million versus December 31st as we continue to add more games to our slate. As of March 31st, the company had no borrowings outstanding . Our outstanding debt was approximately $3 million compared to $73 million last year. In summary, our balance sheet and overall financial position have never been stronger. Turning to the outlook for the overall market starting with hardware. We believe that as of December 31st, 2001, Sony had an install base of 7.4 million PlayStation 2 units in the United States. The PlayStation 2 has been steadily selling at three times the rate that PlayStation 1 did during its launch in the U.S. That 3:1 will continue even during the period following the launch of competitive platforms. Looking forward, we believe the PlayStation 2 install base in the U.S. will grow to at least 14 to 15 million units by the end of the calendar year.

正如我們之前在這些電話中談到的那樣，在這次過渡期間，我們確實將庫存管理作為一個重點領域，這在這些數字中得到了體現。隨著我們不斷添加更多遊戲，軟體開發成本比 12 月 31 日增加了 600 萬美元。截至3月31日，本公司無未償還借款。我們的未償債務約為 300 萬美元，而去年為 7,300 萬美元。總而言之，我們的資產負債表和整體財務狀況從未如此強勁。從硬體開始談整體市場的前景。我們認為，截至 2001 年 12 月 31 日，索尼在美國的 PlayStation 2 安裝量為 740 萬台。 PlayStation 2 的銷量一直穩定在 PlayStation 1 在美國推出期間的三倍。即使在競爭平台推出後，這種 3:1 的比例也將持續下去。展望未來，我們相信到今年年底，美國 PlayStation 2 的安裝量將至少成長到 1,400 至 1,500 萬台。

By the reset numbers, the PlayStation 2 sales during April this summer, next eight or so months of this year, need to be around 7 million units. That seems very achievable considering the PlayStation 1 sales totaled 4.7 million during the comparable period. As of December 31st, the Game Boy Advance had a U.S. install base of about 4.7 million units. We expect brisk sales of the Game Boy Advance in 2002 and believe its install base will be about 9 to 10 million units by yearend. This is still fairly conservative considering Nintendo sold an average of 7 million handheld units in each of the last three years. As of December 31st, the GameCube had an install base of about 1.3 million units. We believe that that platform is also for strong growth in this calendar year driven by the release of more high quality software. But We expect to see an install base of about four to five million units by yearend.

根據重置數字，今年夏天 4 月以及今年接下來的八個月左右，PlayStation 2 的銷售量需要在 700 萬台左右。考慮到同期 PlayStation 1 的銷量總計 470 萬台，這似乎是可以實現的。截至 12 月 31 日，Game Boy Advance 在美國的安裝量約為 470 萬台。我們預計 2002 年 Game Boy Advance 的銷量將強勁，並相信到年底其安裝量將達到 900 至 1000 萬台。考慮到任天堂過去三年平均每年售出 700 萬台掌上型電腦，這仍然相當保守。截至 12 月 31 日，GameCube 的安裝量約為 130 萬台。我們相信，在更多高品質軟體發布的推動下，該平台將在今年實現強勁成長。但我們預計到年底安裝量將達到約四到五百萬台。

Microsoft ended the calendar year with an install base of approximately 1.4 million Xbox units. The software available is of high quality, and we expect this will continue to drive this platform's growth. We are projecting that its install base will be about four to five million units by . In aggregate, we believe that in calendar 2002 the install base of handheld and console hardware systems in North America will grow to a range of approximately 30 to 35 million units by yearend. Note that the low end of this range does not price declines except for what already has been announced. Looking ahead to calendar '03, expecting North American hardware sales numbers to be slightly higher than those of calendar '02, as hardware prices will decline and accelerate the increase in install base. in terms of the software market, we're pleased that in both the U.S. and European market there was growth in the first quarter of this calendar year, 16 cents - 16 percent to be exact, driven mainly by the release of high quality software at premium prices.

截至本日曆年，微軟 Xbox 的安裝量約為 140 萬台。可用的軟體品質很高，我們預計這將繼續推動該平台的成長。我們預計其安裝基礎將約為四到五百萬單位。總的來說，我們相信 2002 年北美手持式和控制台硬體系統的安裝量將成長到年底約 3,000 至 3,500 萬台。請注意，該範圍的低端並不除已宣布的價格外，價格均會下降。展望 03 年，預計北美硬體銷量將略高於 02 年，因為硬體價格將下降並加速安裝基數的成長。就軟體市場而言，我們很高興看到今年第一季美國和歐洲市場的成長達到了 16 美分，確切地說是 16%，這主要是由於以高價發布高品質軟體。

As we said on our last call, we're expecting the U.S. and European software markets to grow between 12 and 17 percent in 2002. Software pricing over the balance of the year remains a major unknown, so we're keeping a conservative perspective given that it's still early in the year, and we're sticking with the 12 to 17 percent market forecast. With that forecast, we're developing a fiscal '03 business plan that grows our top line, expands our operating margin and keeps our balance sheet strong. We are increasing our fiscal '03 revenue guidance by $25 million to $870 million. We're also raising our EPS guidance from by 8 cents, from 94 cents to $1.02. The updated guidance represents year-over-year net income growth of 30 percent. We expect manufacturing and distribution costs in '03 to be around 54 percent with operating expenses, including royalties, around 35 percent.

正如我們在上次電話會議中所說，我們預計2002 年美國和歐洲軟體市場的成長率將在12% 到17% 之間。今年剩餘時間的軟體定價仍然是一個重大未知數，因此我們保持保守的觀點現在還處於今年年初，我們仍堅持 12% 至 17% 的市場預測。根據這項預測，我們正在製定 03 財年的業務計劃，以增加我們的收入、擴大我們的營業利潤並保持我們的資產負債表強勁。我們將 03 財年的收入指引提高了 2,500 萬美元，達到 8.7 億美元。我們還將 EPS 指導值從 94 美分上調 8 美分，上調至 1.02 美元。更新後的指引顯示淨利潤年增 30%。我們預計 03 年的製造和分銷成本約為 54%，其中營運費用（包括特許權使用費）約為 35%。

As a result of our balance sheet and cash management improvements, we project interest income of .5 percent, the '03 tax rates should be 36 percent and our fully diluted share accounts should be 66.5 million shares. Our fiscal 2003 slate fully exploits web platforms and includes the highest percentage of proven franchises in the company's history. It's without question, our strongest most slate ever with 65 titles scheduled for release, giving us a very high level of confidence. As we did last year, we have started the year with a conservative business plan and we'll update our guidance if we get more visibility. There's room for upside in our estimates if, one, there's better than expected performance from the hardware manufacturers as there was in fiscal '02.

由於我們的資產負債表和現金管理得到改善，我們預計利息收入為 0.5%，03 年稅率應為 36%，我們的完全稀釋股票帳戶應為 6,650 萬股。我們 2003 財年的名單充分利用了網路平台，並包括公司歷史上最高比例的經過驗證的特許經營權。毫無疑問，我們最強到目前為止，我們已經計劃發行 65 部作品，這給了我們很大的信心。正如我們去年所做的那樣，我們以保守的業務計劃開始了新的一年，如果我們獲得更多的關注，我們將更新我們的指導。如果硬體製造商的表現優於 02 財年的預期，那麼我們的預測還有上升的空間。

There's room for upside if, two, Next Gen software pricing does not significantly erode until after the holidays. Enter significant potential for upside if, three, we deliver over-performance on our newly launched titles, as was the case in fiscal '02. For the first quarter of fiscal '03, we are raising our revenue projection by $30 million to 145 million and earnings by eight cents per share to ten cents. Manufacturing and distribution costs will be about 52 percent; operating expenses, 42 percent; interest income, .7 percent; effective tax rate, 30 percent - will be about 52 percent; operating expenses, 42 percent; interest income, .7 percent; effective tax rate, 36 percent; diluted shares outstanding should be 65.5 million. The significant increase in guidance for quarter versus what we gave on our last call is the result of the large and unexpected launch of Spider-Man to movie title. We have already shipped about a million and a half units to North America alone.

第二，如果下一代軟體的定價在假期結束後不會顯著下降，那麼就有上漲的空間。第三，如果我們新推出的遊戲表現出色，就像 02 財年的情況一樣，那麼就會有巨大的上升潛力。對於 03 財年第一季，我們將營收預測提高 3,000 萬美元，達到 1.45 億美元，每股收益將提高 8 美分到 10 美分。製造和分銷成本約為 52%；營運費用，42%；利息收入，0.7%；有效稅率為 30% - 約為 52%；營運費用，42%；利息收入，0.7%；有效稅率36%；稀釋後流通股應為 6550 萬股。與我們上次電話會議中給出的季度指導相比，該季度的指導大幅增加，這是由於《蜘蛛人》電影的大量出人意料的推出。光是北美地區我們就已經出貨了約 100 萬台。

In addition to the slate of Lost Kingdoms, the first RPG for the GameCube, and the growing expectations surrounding the launch of Soldier of Fortune 2 developed by our Raven Studio, which did an incredible job also with Jedi Knight 2. The release of the Spider-Man game in North America has already well exceeded our original expectations and reorders are coming in at a very significant pace. The games are topping retail charts on every platform. The was our largest launch ever on the platform. In its first week the PC game hit the top ten and according to Blockbuster, Spider-Man for the PlayStation 2, Xbox and GameCube were the top three rentals in order for the past two weeks.

除了《失落的王國》（GameCube 的第一款RPG）之外，人們對Raven Studio 開發的《Soldier of Fortune 2》的推出也抱有越來越高的期望，該工作室在《絕地武士2》中也取得了令人難以置信的成績。- 北美的男子比賽已經遠遠超出了我們最初的預期，並且重新訂購的速度非常快。這些遊戲在各平台的零售排行榜上均名列前茅。這這是我們在該平台上有史以來最大規模的發布。 PC 遊戲在推出的第一周就進入了前十名，根據 Blockbuster 的數據，PlayStation 2 版《蜘蛛人》、Xbox 和 GameCube 是過去兩週出租量排名前三的遊戲。

On our last call, we indicated that for modeling purposes our fiscal '03 quarterly result would trend in line with last year and completed our annual plan. Now I will introduce the detailed quarterly guidance. Specifically for the second quarter of '03, we're projecting revenues of $130 million and earnings of 1 cent per share. Manufacturing and distribution costs for the quarter will be about 53 percent; operating expenses including royalties, 47 percent; interest income .8 percent; effective tax rate, 36 percent; diluted shares outstanding around 66.2 million. Our drive titles for Cube 2 will include Mat Hopkins Pro BMX 2, slated for multi-platform release in conjunction with the Summer X Games in August.

在上次電話會議中，我們表示出於建模目的，我們 03 財年的季度業績將與去年保持一致，並完成了我們的年度計劃。現在我將介紹詳細的季度指導。具體來說，我們預計 03 年第二季的營收為 1.3 億美元，每股收益為 1 美分。本季的製造和分銷成本約為 53%；包括特許權使用費在內的營運費用，47%；利息收入 0.8%；有效稅率36%；稀釋後流通股數約 6,620 萬股。我們的 Cube 2 駕駛遊戲將包括 Mat Hopkins Pro BMX 2，預計與 8 月的 Summer X Games 一起在多平台上發布。

Also we expect Kelly Slater's Pro Surfer on multi-platforms and Street Hoops slated for the PlayStation 2 and the Xbox. All three of these games look great and you'll be able to see them at firsthand at E3. We'll also release Stewart Little 2 for the Game Boy Advanced in conjunction with the movie launch and Medieval: Total War for the PC, the sequel to the highly acclaimed Shogun: Total War. For the third quarter of '03, we're projecting revenues of $435 million and earnings of 79 cents per share; manufacturing and distribution costs at 54 percent; operating expenses around 27 percent; minimal interest income; effective tax rate of and diluted shares outstanding should be 67.2 million.

我們也預期 Kelly Slater 的《Pro Surfer》將登陸多平台，《Street Hoops》將登陸 PlayStation 2 和 Xbox。這三款遊戲看起來都很棒，您將能夠在 E3 上親眼目睹它們。我們也將在電影發布的同時發布 Game Boy Advanced 版《Stewart Little 2》，以及 PC 版《中世紀：全面戰爭》（廣受好評的《幕府將軍：全面戰爭》的續作）。我們預計 2003 年第三季的營收為 4.35 億美元，每股收益為 79 美分；製造和分銷成本佔 54%；營運費用約27%；最低利息收入；有效稅率稀釋後流通股應為 6,720 萬股。

For the quarter - for the fourth quarter of fiscal '03, we're projecting revenues of $160 million and earnings of 12 cents per share. Manufacturing and distributions costs for the quarter will be about 54 percent, operating expenses around 40 percent, interest income of .6 percent. The effective tax rate of 36 and diluted shares outstanding should be 67.2 million. The title scheduled for release in the second half of the fiscal represent a really good mix of proven under these most which we'll launch multiple platforms. In the second half, we'll release the balance of our extreme sports lineup, of course, led by Tony Hawk 4 which is already looking very impressive. Neversoft, continues to their ability to reinvent the skateboard genre year after year.

對於本季 - 03 財年第四季度，我們預計營收為 1.6 億美元，每股收益為 12 美分。本季的製造和分銷成本約為 54%，營運費用約為 40%，利息收入約為 0.6%。有效稅率36稀釋後流通股應為 6,720 萬股。計劃於本財年下半年發布的遊戲代表了一個非常好的組合證明在這些最我們將推出多個平台。下半年我們會釋放我們極限運動陣容的平衡，當然以托尼霍克4為首，已經看起來非常令人印象深刻了。永軟，繼續他們年復一年重塑滑板流派的能力。

As a follow up to Tony Hawk 4, we'll release Shaun Murray's Pro and recently announced Travis Pastrana MotoX. For the superhero enthusiast, we have a very solid lineup slated for the Next Generation hardware that will take advantage of the momentum created by Spider-Man, the movie title, with the introduction of X-men, Next Dimension and Blade 2. On the driving front, we have a number of exciting offerings in the second half of the year. True Crime scheduled for release on all of the Next Gen consoles is shaping up to be a - well, a truly great true crime blends high-speed mission based driving action, full impact martial arts fighting and daring shootouts. It's definitely one you don't want to miss at E3. We also have Wreckless, a follow-up to the success of this brand on the Xbox which is being enhanced for the PlayStation 2 later this year and Rally Fusion: Race of Champions which is a visually explosive all action racing game with the goal of becoming the champions of champions. For the mass market, we will release Minority Report, the game based on Steven Spielberg's highly anticipated sci-fi thriller starring Tom Cruise. Treyarch, which did an outstanding job obviously on Spider-Man, is developing this game.

作為《托尼霍克 4》的後續，我們將發布肖恩默里的 Pro以及最近發布的 Travis Pastrana MotoX。對於超級英雄愛好者來說，我們為下一代硬體準備了非常可靠的陣容，這些硬體將利用電影《蜘蛛人》所創造的勢頭，推出《X 戰警》、《次元》和《刀鋒 2》。展望未來，我們在下半年推出了許多令人興奮的產品。計劃在所有下一代遊戲機上發布的《真實犯罪》將成為一款——嗯，一款真正偉大的真實犯罪，融合了基於任務的高速駕駛動作、全面影響的武術格鬥和大膽的槍戰。這絕對是您在 E3 上不容錯過的一場盛會。我們還有《Wreckless》，這是該品牌在Xbox 上取得成功的後續作品，將於今年稍晚在PlayStation 2 上進行增強，以及《Rally Fusion：Race of Champions》，這是一款視覺上爆炸性的全動作賽車遊戲，目標是成為冠軍中的冠軍。針對大眾市場，我們將發布《少數派報告》，該遊戲基於史蒂芬史匹柏備受期待的湯姆克魯斯主演的科幻驚悚片。 Treyarch 正在開發這款遊戲，該公司在《蜘蛛人》中的表現顯然非常出色。

On the original content side - by the way, we're also releasing which is developed out of our Japanese studio and is the third in a trilogy of successful stealth fighting games. Given our product visibility and completion now of our annual operating plan, I want to give you a breakdown of our fiscal '03 revenue projection starting with the Tony Hawk brand. Tony Hawk is one of the largest, most diversified brands in the market today. Pending the fiscal year, it's the number one independent franchise and outselling such greats as and Final Fantasy. Tony Hawk franchise is rock solid. Since launching Tony Hawk 3 in October, the franchise is up 29 percent in dollars versus the same period of Tony Hawk 2 in the prior year. All Tony Hawk priors combined accounted for 31 percent of our revenues in fiscal'02. Notwithstanding our strong confidence in the Tony Hawk brand, we are planning for this brand to represent a lower percentage of our consolidated fiscal '03 revenues, reflecting our conservative planning approach as well as our significant growth of other franchises in our portfolio. Specifically, we are projecting that the Tony Hawk brand will account for 20 to 25 percent of revenues in fiscal '03.

在原始內容方面 - 順便說一下，我們也發布了它是由我們的日本工作室開發的，是成功的潛行格鬥遊戲三部曲中的第三部。鑑於我們的產品知名度和年度營運計劃的完成情況，我想給您一個我們從托尼霍克品牌開始對 03 財年的收入預測進行了細分。 Tony Hawk 是當今市場上最大、最多元化的品牌之一。在本財年到來之前，它是排名第一的獨立特許經營權，並且銷量超過了諸如和最終幻想。托尼霍克系列堅如磐石。自 10 月推出《托尼霍克 3》以來，該系列遊戲的售價與去年同期的《托尼霍克 2》相比上漲了 29%。所有托尼霍克之前的員工加起來占我們 2002 財年收入的 31%。儘管我們對托尼霍克品牌充滿信心，但我們計劃讓品牌在我們03 財年合併收入中所佔的比例較低，這反映了我們保守的規劃方法以及我們投資組合中其他特許經營權的顯著增長。具體來說，我們預計 Tony Hawk 品牌將佔 03 財年營收的 20% 至 25%。

In addition to the Tony Hawk franchise, the rest of our action sports titles will represent between 10 and 12 percent of total revenues. So all the action sports should represent 32 to 37 percent of revenues in fiscal '03. In fiscal '02 we released 18 action sports titles, while in fiscal '03 we will have a significantly larger lineup. It will include about 25 releases. Moving on to the superheroes category. We expect that the ten superhero releases in addition to our category sales will account for about 15 to 20 percent of revenues in fiscal '03, which is triple the size of the superhero business in fiscal '02. Another large and upcoming sector of our business is the hardcore gaming sector which includes the franchises as Return to Castle Wolfenstein, Star Trek, Star Wars and Tenchu. These brands will make up about ten percent of revenues in the fiscal year. Finally, the driving category which is the development segment of our business, it should account for about five percent of revenues in the fiscal year, and as I mentioned earlier we have three exciting titles that will be released on multiple platforms and we're looking forward to growing this category in the years to come. We recently also completed a preliminary operating plan for fiscal '04 and came away with a lot of confidence from that exercise.

除了《東尼霍克》系列之外，我們其餘的極限運動遊戲將佔總收入的 10% 到 12%。因此，所有極限運動應佔 03 財年收入的 32% 至 37%。在 02 財年，我們發布了 18 款極限運動遊戲，而在 03 財年，我們的陣容將大幅擴大。它將包括大約 25 個版本。轉到超級英雄類別。我們預計，除了我們的類別銷售之外，十個超級英雄的發布將佔 03 財年收入的 15% 至 20% 左右，這是 02 財年超級英雄業務規模的三倍。我們即將推出的另一個大型業務領域是硬派遊戲領域，其中包括《重返德軍總部》、《星際爭霸戰》、《星際大戰》和《天誅》等系列遊戲。這些品牌將佔本財年收入的百分之十左右。最後，驅動類別是我們業務的開發部分，它應佔本財年收入的 5% 左右，正如我之前提到的，我們有三款令人興奮的遊戲將在多個平台上發布，我們正在尋找期待在未來幾年發展這一類別。我們最近也完成了 04 財年的初步營運計劃，並從這次活動中獲得了極大的信心。

Operationally, the year is already looking strong with an incredibly dynamic slate. Combine that with the largest absolute increase in a worldwide installed base, this hardware sales should continue to accelerate in calendar '03 and you have the makings of the biggest year ever in our history. The fiscal the revenues will hit at least $1 billion for every 15 percent increase year over year, and that EPS will grow to a $1.20 per share 18 percent year over year. That's our way of saying that fiscal '04 has the potential to be a true blockbuster year. And I will open the call to your questions, and please, after the call, direct your inquires to at 310-255-2635.

從營運角度來看，這一年已經表現強勁，充滿活力。再加上全球安裝量的最大絕對增長，硬體銷售在 03 年應該會繼續加速，並且您將迎來我們歷史上最大的一年。財政年比每成長 15%，營收將至少達到 10 億美元，每股收益將成長至 1.20 美元較去年同期成長 18%。這就是我們所說的 04 財年有潛力成為真正的重磅之年。我將開始解答您的問題，請在通話結束後將您的疑問發送至電話：310-255-2635。

Thank you, sir. For those of you who have a question, please press star one on your touch-tone phone and your questions will be answered in the order that they are received. Please keep in mind if you are using a speakerphone, you must pick up your handset when pressing one to register in the question and answer lineup. If at any time your question has been answered, please press star two on your touch-tone phone to remove yourself from the question lineup. We ask only that you limit yourself to one question each. One moment as we activate the question-and-answer feature. Our first question comes from Mr. Edward Williams of . Please proceed with your question, sir.

謝謝你，先生。如果您有疑問，請按按鍵式電話上的星號一，您的問題將按照收到的順序得到解答。請記住，如果您使用免持電話，則按其中一個按鍵時必須拿起聽筒。在問答隊列中註冊。如果您的問題已得到解答，請隨時按按鍵式電話上的星號二將您從問題清單中刪除。我們只要求您每人只回答一個問題。我們啟動問答功能的那一刻。我們的第一個問題來自Edward Williams先生。先生，請繼續你的問題。

Good afternoon. Just a quick question can you go a little bit seeing in the retail environment right now, and what your expectations are with pricing on software and when will we see a break from $50. Unid: The impressions we have, of course, are influenced by the success of Spider-Man. We're getting a lot of very positive feedback from the retailers. They feel that that's, you know, the title to push right now, and we're hearing that pretty much from all directions. So we're feeling good about the retail environment. Secondly, the pricing expectations, let me kind of break that out into two pieces. The planning assumptions that we've incorporated into our plan for this year say that console pricing will move to 39.99 after Christmas this year and that in between then and now they'll be a slow migration from 49.99 to 39.99. What we think may happen is that that won't happen very quickly and that the migration may, in fact, in significant ways not occur until after Christmas. If that's the case, that would mean upside to our plan.

午安.只是一個簡單的問題你可以走一點嗎了解目前的零售環境，以及您對軟體定價的期望，以及我們何時會看到 50 美元的突破。 Unid：我們的印象當然是受到《蜘蛛人》成功的影響。我們從零售商那裡得到了很多非常正面的回饋。他們覺得這就是現在要推動的標題，我們幾乎從四面八方聽到了這樣的聲音。所以我們對零售環境感覺良好。其次，定價預期，讓我把它分成兩個部分。我們納入今年計劃的計劃假設是，今年聖誕節後主機定價將升至 39.99，從那時到現在，價格將從 49.99 緩慢遷移至 39.99。我們認為可能發生的情況是，這種情況不會很快發生，事實上，遷移在很大程度上可能要等到聖誕節後才會發生。如果真是這樣，對我們的計劃來說就意味著有利的一面。

OK. Thanks a lot.

好的。多謝。

You bet.

你打賭。

Thank you, sir. And our next question comes from Jessica of Goldman Sachs. Please proceed with your question.

謝謝你，先生。我們的下一個問題來自傑西卡高盛的。請繼續你的問題。

Thank you. Again, there's just so many numbers on this call so I apologize. I'm still sort of absorbing them all. But just a little bit of an extension on that last question. Can you go more into you know what is exactly your higher forecast . Is it an increase of the hardware install base going into the holiday season? Do you feel more of like more of a revenue waiting will be on the distribution side as opposed to side and also the part of that question, you know, as far as my model was concerned, you know, we've been seeing, again, relative to my model, much better distribution revenues. Can you talk a little bit about what's going on there, and what kind of expectations you have for distribution going forward.

謝謝。再次強調，這次通話的號碼太多，所以我深感抱歉。我仍然在吸收它們。但只是對最後一個問題的一點延伸。你能更深入地了解你知道到底是什麼嗎你的更高預測。是否有增加進入假期的硬體安裝基數是多少？您是否覺得更多的收入等待將在分配方面而不是方面以及該問題的一部分，您知道，就我的模型而言，您知道，我們再次看到，相對於我的模型，發行收入要好得多。您能談談那裡發生的事情以及您對未來的發行有什麼樣的期望嗎？

Kind of violated the one question rule there.

有點違反了那裡的一題規則。

Sorry.

對不起。

Pick which one you want.

選擇您想要的。

Let me give you a couple of thoughts here. The increase you're seeing versus our previous guidance is a direct result of better visibility I'd say primarily on our own slate and inside of that the Spider-Man clearly as we've eluded has been a positive surprise. We're also seeing growing expectations, other titles and we, since our last call, have three months more visibility and this is the time when you get a lot more visibility it's just prior to E3. So what you're seeing in the increase guidance is increased confidence in our publishing on a different slate. Distribution side, we haven't really made significant in the business it should be just south of 30 percent. It is doing well, you're right. It's benefiting from the overall market dynamics, primarily in the U.K. which is seeing a pretty strong market right now and that's reflected on the distribution side of the company.

讓我在這裡給你一些想法。與我們之前的指導相比，您所看到的增加是更好的可見性的直接結果，我想說主要是在我們自己的石板和蜘蛛人的內部。正如我們所迴避的那樣，這是一個積極的驚喜。我們也看到人們對其他遊戲的期望不斷增長，自上次電話會議以來，我們的知名度增加了三個月，而此時正是在 E3 之前，您可以獲得更多的知名度。所以你在增加指導中看到的增加了對我們在不同板塊上的出版充滿信心。在分銷方面，我們還沒有真正取得重大進展在商業領域，這一比例應該略高於 30%。它做得很好，你是對的。它受益於整體市場動態，主要是在英國，目前市場相當強勁，這反映在公司的分銷方面。

OK. Great. Thank you.

好的。偉大的。謝謝。

You bet.

你打賭。

Our next question comes from of Credit Suisse First Boston. Please proceed with your question.

我們的下一個問題來自瑞士信貸第一波士頓公司。請繼續你的問題。

OK. Great. Thanks. You know, obviously international is a big part of the quarter. I was wondering if you could kind of talk about in general terms what you think that break up is going to be going forward, and whether or not it's going to be this kind of 55/45 split for the rest of the year or if there was just something special about this quarter. And then if you could also talk a little bit about what your expectations are for hardware pricing. I know you mentioned that the lower end of your guidance included no cut in hardware beyond what we've already seen. Does that mean that the upper end of your guidance does include some sort of a hardware cut and if you could just quantify what exactly that would be you're looking for.

好的。偉大的。謝謝。您知道，顯然國際業務是本季的重要組成部分。我想知道你是否可以籠統地談談你認為分手將會發生什麼，以及在今年剩下的時間裡是否會出現這種 55/45 的分手，或者是否有本季度有一些特別之處。然後您是否也可以談談您對硬體定價的期望。我知道您提到您的指導的下端沒有包括超出我們已經看到的硬體削減。這是否意味著您的指導的上限確實包括某種硬體削減，以及您是否可以量化您到底在尋找什麼。

First question, we do expect the 55/45 domestic versus international split to continue. There wasn't anything particularly unusual going on in the last quarter other than what I already mentioned that some of the markets in Europe had a strong quarter overall and that benefited the distribution business, but also our publishing organization had a very strong year - I'm sorry - quarter across Europe. As far as hardware pricing is concerned, yeah the upper end of our guidance for the market does include the expectation of some of some price reductions on the hardware side and the lower end does not, so we gave that 30, 35 range to incorporate year-round pricing at this point.

第一個問題，我們確實預期國內與國際 55/45 的比例將持續下去。上個季度沒有發生任何特別不尋常的事情，除了我已經提到的，歐洲的一些市場總體上季度表現強勁，這有利於發行業務，而且我們的出版組織也經歷了非常強勁的一年 - 我抱歉- 橫跨歐洲四分之一。就硬體定價而言，是的，我們對市場的指導的上限確實包括硬體方面一些降價的預期，而下限則沒有，所以我們給出了 30、35 的範圍來納入此時全年定價。

Thank you.

謝謝。

You bet.

你打賭。

Thank you. And our next question comes from Mr. Jitill Patel of Deutsch Banks Securities.

謝謝。我們的下一個問題來自德意志銀行的 Jitill Patel 先生證券。

Hey, guys. A couple of questions. First of all, Spider-Man, can you talk about, I guess, the market campaigns out there. Do you plan to launch any, whether it's television branding, or how are you looking to bolster the Spider-Man brand what the retailers are doing today? And secondly, I guess, looking at a fiscal '04 longer term, you know, I know you've been focused obviously a lot on the operating leverage in the model. What do you think is the long-term operating margin at the end of the day looking out, say, towards the end of the cycle, the peak of the cycle, over the next couple years.

大家好。有幾個問題。首先，蜘蛛俠，我想你能談談外面的市場活動嗎？您是否計劃推出任何產品，無論是電視品牌，還是您希望如何加強蜘蛛人品牌零售商今天在做什麼？其次，我想，從 04 財年的長期來看，我知道您顯然非常關注模型中的營運槓桿。您認為，在未來幾年的週期結束時、週期的頂峰時期，最終的長期營業利潤率是多少？

OK. First, Spidy marketing, the TV campaign in support of the games just began last weekend pretty much timed with the launch of the movie, of course. If you haven't seen the movie yet, there's a good chance that if you go to see it, you'll see a commercial for the games in the theater. We're running broad across the country in theater, advertising with an exciting commercial that runs ahead of the movie. And with the kind of audiences that the movie is drawing, that commercial is getting huge exposure. Every major customer has tied in with us on a promotional level. They're all running special promotions. For example, Wal-Mart is running a promotion for kids where kids play sort of a game where they go through the store and collect certain Spider-Man related items and get a prize for doing that. So there's a lot of different activity going on that I think will ensure that we'll continue to see excellent sales of the games. As far as our operating margin is concerned, we, as Bobby indicated, are far from satisfied although we've made outstanding progress. We're now in the double digits as we said we wanted to get to as soon as possible. We certainly see our way clear to a 15 percent operating margin over time. It will take us some time to get there, but that's our target. I think between two and four years.

好的。首先，蜘蛛人行銷，支援遊戲的電視活動剛剛在上週末開始，當然，幾乎與電影的上映時間同步。如果您還沒有看過這部電影，那麼您很有可能會在電影院看到遊戲的廣告。我們在全國各地的戲院放映，在電影上映前播放令人興奮的廣告。隨著這部電影所吸引的觀眾數量的增加，該廣告也獲得了巨大的曝光。每個主要客戶都在促銷層面上與我們合作。他們都在進行特別促銷活動。例如，沃爾瑪正在為兒童舉辦促銷活動，孩子們可以玩一種遊戲，他們可以穿過商店並收集某些與蜘蛛人相關的物品，並因此獲得獎勵。因此，有很多不同的活動正在進行，我認為這將確保我們將繼續看到遊戲的出色銷售。就我們的營業利潤率而言，正如鮑比指出的那樣，儘管我們取得了顯著的進步，但我們還遠遠不滿意。正如我們所說，我們希望盡快達到兩位數，現在我們已經達到了兩位數。我們當然看到，隨著時間的推移，我們的營業利潤率將達到 15%。我們需要一些時間才能到達那裡，但這就是我們的目標。我想在兩到四年之間。

Thanks.

謝謝。

You bet.

你打賭。

Our next question comes from Mr. Jeff Valenski of Bear Sterns. Please proceed with your question, sir.

我們的下一個問題來自貝爾斯登的 Jeff Valenski 先生。先生，請繼續你的問題。

Thanks. I have a few questions. One, could you talk about historically -

謝謝。我有幾個問題。一，你能談談歷史嗎？

Just one, Jeff.

只有一個，傑夫。

Could you talk about historically how software pricing declines have followed hardware pricing declines? What's the sort of timing? Is there a lag affect in the last cycle? And then second question on Spider-Man, you've shipped a million and a half units thus far. Europe is coming in the next few weeks. On previous Spider-Man games that were released on PlayStation 1 and N64, what sort of percentage of U.S. sales did they account for? So I'm trying to get a sense for the European demand for the Spider-Man franchise. Unid: All right. You bet. The software pricing, we ask - by the way hardware pricing history, Jeff, or software.

您能否談談歷史上軟體價格如何隨著硬體價格下降而下降？什麼樣的時機？上一個週期有滯後影響嗎？關於《蜘蛛人》的第二個問題，到目前為止你們已經賣出了一百萬個半。歐洲將在未來幾週內到來。先前在 PlayStation 1 和 N64 上發行的《蜘蛛人》遊戲在美國銷售中所佔的比例是多少？所以我試著去了解歐洲對蜘蛛人系列的需求。尤尼德：好的。你打賭。我們問軟體定價 - 順便說一下硬體定價歷史，傑夫，或軟體。

I'm talking about the impact of software pricing coming down following hardware pricing, the timing of that? Typically, hardware comes down and then software follows. Is there a lag effect? Does it happen immediately? What's the relationship between hardware pricing declines and software pricing declines historically?

我說的是軟體定價跟隨硬體定價下降的影響，具體時間是什麼？通常，先是硬體出現故障，然後是軟體。有滯後效應嗎？它會立即發生嗎？從歷史上看，硬體價格下降和軟體價格下降之間有什麼關係？

You know, it's going to be - and that's part of the reason for our conservatism really, somewhat different to draw on history here - quite a few changes in the models. For example, on their side, there, in the first 18 months, were two price cuts on the PlayStation 1 in the previous cycle and of course we haven't seen a price cut yet on the PlayStation 2. So that alone is a huge difference this cycle versus last. Everybody sort of seems to expect that pricing would move down during the course of this calendar year as we get more visibility. It certainly doesn't appear to be going that fast, and there's a good chance the premium pricing, the 49.99 pricing will hold through Christmas. Again, we're not assuming that, but, again, that's possible and that will be upside to our plan. So we're not relying too much on the historical models in forecasting the pricing. We're taking a conservative stance on the software side and kind of updating our guidance from quarter to quarter.

你知道，這將是──這也是我們保守主義的部分原因，與這裡借鏡歷史確實有些不同──模型會發生相當多的變化。例如，就他們而言，在上一個週期的前 18 個月裡，PlayStation 1 進行了兩次降價，當然我們還沒有看到 PlayStation 2 降價。所以僅此一項就已經是一個巨大的降價了。本週期與上週期的差異。每個人似乎都預計，隨著我們獲得更多的知名度，今年的定價將會下降。當然，價格似乎不會那麼快，49.99 元的溢價很可能會持續到聖誕節。再說一次，我們並沒有假設這一點，但是，這也是可能的，這對我們的計劃是有利的。因此，我們在預測定價時並沒有過度依賴歷史模型。我們在軟體方面採取保守立場，並且每季都會更新我們的指導。

Just let me ask you one question then. If hardware pricing comes down, do you anticipate that the software would come down more quickly to 39.99?

那麼讓我問你一個問題。如果硬體價格下降，您預計軟體價格會更快下降至 39.99 美元嗎？

You know, I think it's theoretically possible, but again, there's so many different variables that I would not jump to any conclusions there.

你知道，我認為這在理論上是可能的，但同樣，有太多不同的變量，我不會妄下任何結論。

Okay.

好的。

You bet.

你打賭。

And how about on the Spider-Man question?

那麼關於蜘蛛人的問題呢？

Historically, Spider-Man in the international markets, I don't think we've ever had an experience where we saw a $114 million box office weekend. Sony tells us last week that they expect the international market to be record numbers for a motion picture release and I think you're likely to see a lot of upside in the international markets. They had strong launches in Malaysia, in Thailand, in Singapore, and they're launching this weekend - the movie's launching in Japan. And these are record box offices in every territory.

歷史上，蜘蛛人在國際市場上，我認為我們從來沒有經歷過週末票房達到 1.14 億美元的經歷。索尼上週告訴我們，他們預計國際市場的電影發行量將創下紀錄，我認為您可能會看到國際市場有很大的上漲空間。他們在馬來西亞、泰國、新加坡都有強勁的上映，而且他們將於本週末上映——這部電影將在日本上映。這些都是每個地區的票房紀錄。

Can you talk about units of Spider-Man sold in Europe in the last ?

您能談談去年在歐洲銷售的蜘蛛人數量嗎？

Well, we said we don't get into that. It's just too much detail for us to be comfortable with and too competitively sensitive. So we're going to shy away from that.

好吧，我們說過我們不涉及這個。對我們來說，這些細節太多了，而且對競爭也太敏感。所以我們要迴避這一點。

Okay. And is it as large as the U.S. market?

好的。它和美國市場一樣大嗎？

Excuse me?

打擾一下？

Is it as relatively large as the U.S. market?

和美國市場一樣大嗎？

I just said we're unfortunately not going to give you the unit Forecast. You know how our business slips domestic and internationally. I think, you know, for working purposes, that would be a helpful assumption.

我只是說不幸的是我們不會給你單位預測。您知道我們的業務在國內和國際上的發展如何。我認為，你知道，出於工作目的，這將是一個有用的假設。

Okay. Great. Thanks a lot.

好的。偉大的。多謝。

You bet.

你打賭。

Our next question comes from Mr. David of William Blair. Please proceed with your question.

我們的下一個問題來自大衛先生威廉·布萊爾的。請繼續你的問題。

Good afternoon. I notice that your capital is up almost double your year-over-year and your share count's up, you know, 50 percent. I mean, obviously some of that's option, and some of that - and some of that's, you know, from the acquisitions and so forth. But can you talk a little bit about, you know, that's a big number where that capital doubling came from and what's going to happen to options and share accounts and so forth?

午安.我注意到你的資本幾乎年增了一倍，你的股票數量也增加了 50%。我的意思是，顯然其中一些是選擇，其中一些 - 你知道，其中一些來自收購等。但你能談談，你知道，這是一個很大的數字資本倍增從何而來，選擇權和股票帳戶等會發生什麼事？

You know, I was looking at a dynamic year. A lot of things happen. On the acquisition front, we kind of went through all of the developments there. We did all those fields on the stock basis. And that significantly added.

你知道，我正在經歷充滿活力的一年。很多事情發生了。在收購方面，我們經歷了那裡的所有進展。我們在庫存的基礎上完成了所有這些領域。這顯著增加了。

Three acquisitions - three acquisitions during the year. We had the option exercises as you talked about.

三項收購案－年內進行了三項收購。正如您所說，我們有選項練習。

The tax benefits from stock option exercises and we converted our $60 million notes.

股票選擇權行使帶來的稅收優惠以及我們轉換了 6000 萬美元的票據。

And net income.

和淨收入。

Okay. Just taking a big jump in a year, especially with the you were talking about from, say, 2001 to 2003 in terms of your share guidance.

好的。一年內取得了巨大的進步，尤其是您所談論的是從 2001 年到 2003 年的股票指引。

Conversion was 60 million by itself.

光是轉換就達到了6000萬。

Okay. Thanks a lot.

好的。多謝。

Yeah.

是的。

Our next question comes from Mr. of .

我們的下一個問題來自於先生。的。

Good afternoon, guys. You throw out a guidance on the U.S. and European markets combined, you think the range could be total 17 percent, what do you think the U.S. market growth rate could be this year? And also, can you provide some guidance on the breakdown by platform for 2003, you know, your expectations?

下午好，夥計們。您對美國和歐洲市場提出了綜合指導，您認為該範圍總計可能為 17％，您認為今年美國市場的成長率可能是多少？另外，您能否對 2003 年按平台劃分的細分提供一些指導，以及您的期望？

Let me go back to the first quarter of this calendar year, the average between U.S. and Europe was let's say 16 percent. The U.S. market ran a little ahead of that, about 18 percent, Europe was about 12 percent. Now we're staying on the conservative side. We have indicated the 12 to 17 percent range. The average between the two markets was inside of that. So we're comfortable with the range as we see it right now. Inside of the total market forecast, we're seeing most of the growth on the console and the handheld side with a PC market that is up slightly.

讓我回顧今年第一季度，美國和歐洲的平均值是 16%。美國市場略領先，約 18%，歐洲約 12%。現在我們仍保持保守立場。我們已經指出了 12% 到 17% 的範圍。兩個市場之間的平均值在此範圍內。因此，我們對目前所看到的範圍感到滿意。在整個市場預測中，我們看到大部分成長來自遊戲機和手持設備，而個人電腦市場略有成長。

Well, were you asking our revenue breakdown by platform?

好吧，您是問我們按平台劃分的收入細分嗎？

Right. That too. You know, what you're projecting your revenue breakdown might be for the year by platform.

正確的。那個也是。您知道，您所預測的收入細目可能是按平台劃分的當年收入。

Yeah. Let me kind of walk you through that. The platform slip for us in '03 is about 40 percent for the Play 2, 15 percent Xbox, 15 percent GameCube, 10 percent GBA, 15 percent for the PC and 5 for the old platforms. It should add to 100.

是的。讓我引導您完成這個過程。 03 年我們的平台下滑約為 Play 2 的 40%、Xbox 的 15%、GameCube 的 15%、GBA 的 10%、PC 的 15% 以及舊平台的 5%。它應該加到 100。

OK. And the last question. The Spider-Man sales, the 1.5 million units, can you provide some breakdown there by platform, you know, obviously PlayStation 2 would be the biggest given the install date but PC, how that did and Game Boy, Game Boy Advanced any color of that would be helpful.

好的。最後一個問題。 《蜘蛛人》的銷量，150 萬台，你能提供一些按平台劃分的細分嗎？你知道，考慮到安裝日期，顯然PlayStation 2 是最大的，但PC 的表現如何，以及Game Boy、Game Boy Advanced 任何顏色的遊戲那會有幫助的。

It pretty much mastered the market.

它幾乎掌握了市場。

Pardon me?

對不起？

It pretty much-the breakdown's pretty much representative of the market overall.

細分幾乎可以代表整個市場。

Okay. Great. Thanks.

好的。偉大的。謝謝。

Thank you, sir.

謝謝你，先生。

Hello?

你好？

Our next question comes from Mr. Mike Wallace. Please proceed with your question.

我們的下一個問題來自麥克華萊士先生。請繼續你的問題。

Hi, guys. First of all, congratulations on a great year.

嗨，大家好。首先，恭喜您度過了美好的一年。

Thank you.

謝謝。

I have some product questions. First you mentioned the movie going out in Japan. Are you going to be able to sell the Spider-Man game over ?

我有一些產品問題。首先你提到了這部電影在日本上映。你能把《蜘蛛人》遊戲賣完嗎？

We're still in the process of working on that. We're selling, you know, Europe and North America. That's been the focus. But we're also working on the partnership in Japan.

我們仍在努力解決這個問題。你知道，我們銷售的是歐洲和北美。這就是焦點。但我們也在日本開展合作。

But I'll just say based on historical experiences, we wouldn't have any expectations of success of what's Japan. And I think even the success of Spider-Man at the box office is for no reason. They're too excited about Spider-Man the game in the Japanese market.

但我只想說，根據歷史經驗，我們不會對未來的成功抱持任何期望日本。我認為即使是《蜘蛛人》在票房上的成功沒原因。他們對《蜘蛛人》這款遊戲在日本市場的表現太興奮了。

OK. The X-Men game, is that coming out at the same time as the movie?

好的。 X戰警遊戲和電影同時上映嗎？

There's actually two X-men games in development. The one that I talked about, X-men Next is coming out this fall. The movie will be launched a year from now, early May. We have another game in development that will be timed to go out with the launch of the movie.

實際上有兩款 X 戰警遊戲正在開發中。我談到的那個，《X戰警下一個》將於今年秋天上市。這部電影將於一年後五月初上映。我們正在開發另一款遊戲，該遊戲將在電影上映時同步推出。

Okay.

好的。

That will be another, you know, five-platform, worldwide in the quarter, you know, major release to tie in with all the promotional activity that they plan on X-Men.

這將是本季全球五個平台的另一個主要版本，以配合他們計劃在《X 戰警》上進行的所有促銷活動。

And you recently announced Doom 3. Is that in this fiscal year as planned or is that next year?

你們最近發布了《毀滅戰士 3》。是按計畫在本財年發布還是明年發布？

You know, it's been our historical practice and policy, we do not comment on the timing of hit releases until they are ready to and that's not now. But I'd encourage you to take a look at the game of E3.

你知道，這是我們的歷史慣例和政策，在熱門產品準備好之前我們不會對發佈時間發表評論，但現在不是。但我鼓勵你看看 E3 的比賽。

Okay. I guess you're not going to comment on you're doing something with Rare also?

好的。我猜你不會評論你也在與 Rare 合作吧？

Absolutely not. You know our policy is not to comment on .

絕對不。你知道我們的政策是不發表評論。

Okay. Now I look forward to E3 then. Just one more question. For your distribution business, how does a hardware price cut, assuming that we get one, how does that affect your business? I know, you know, the revs and the hardware will be lower, is there kind of a lag effect before software sales bring that up? Does that change the business model, you know, for a couple of quarters or is it something where lower revenues on the hardware immediately offset by higher software sales?

好的。現在我很期待E3。還有一個問題。對於您的分銷業務來說，硬體降價如何，假設我們得到了一個，這對您的業務有何影響？我知道，你知道，轉速和硬體會降低，在軟體銷售提高之前是否存在某種滯後效應？這是否會改變幾個季度的商業模式，或者硬體收入的下降是否會立即被軟體銷售的上升所抵消？

Well, we have some experience because, of course, in Europe, PlayStation 2 already took a price decline and business really picked up. And the increase in volume made up for the lost in revenue as a result of the price reduction. So we actually saw the business pick up in the wake of the decline in the U.K. So in addition, the whole market picked up in the wake of that, so software sales also went up. In total that was a good catalyst for .

嗯，我們有一些經驗，因為當然，在歐洲，PlayStation 2 的價格已經下降，業務也確實有所回升。銷售量的增加彌補了價格造成的收入損失減少。因此，我們實際上看到業務在英國下滑之後有所回升。此外，整個市場也隨之回升，因此軟體銷售額也有所上升。總的來說，這是一個很好的催化劑。

OK. All right. Thanks and again.

好的。好的。謝謝和再次。

Thank you very much.

非常感謝。

Thank you very much, sir. And our next question comes from Mr. John Taylor.

先生非常感謝您。我們的下一個問題來自約翰·泰勒先生。

Hi.

你好。

Proceed with your question.

繼續你的問題。

OK. Thank you. Hi. I have a couple of questions here. One, could you talk about the margin trend that you're seeing in the publishing and distribution segments of your business kind of what you saw last year, the most recent year, and maybe what you think that's going to go to which would roll up into the operating margin improvement. Second question is can you run down the list of superheroes you've got under contract now and particularly interested in whether you've already got the sequel to Spider-Man? Thank you. Unid: Let me answer the last question first. We do have rights to the sequel to the Spider-Man movie. The operating margin history, if you go back to that sort of corporate consolidated operating seen in fiscal 1988, 2.9 percent; in the year fiscal 2000, 6.8 percent; of course, now in fiscal 2002, 10.1 percent. Inside of that, I'm going to give you some rough guidelines. Distribution has come up a little bit, but most of the growth has been on the publishing side. You know the distribution operating in '02 is about five points, and the publishing margin runs around 12.5. As we think about the future, we think of mostly upside you know is on the publishing side. I talked earlier about what we'll call a midterm goal of 15 points. I'd say, you know, inside of that, you should be thinking about a publishing margin of about 18 points and a distribution of about six points.

好的。謝謝。你好。我在這裡有幾個問題。第一，您能否談談您在業務的出版和發行領域看到的利潤趨勢，例如您去年和最近一年看到的情況，也許您認為這將走向何方？進入營業利潤率的改善。第二個問題是，你能列出一下你現在簽訂的合約中的超級英雄名單嗎？特別是你是否已經有了《蜘蛛人》的續集？謝謝。 Unid：我先回答最後一個問題。我們確實擁有蜘蛛人電影續集的版權。營業利益率歷史記錄，如果你回到那種公司合併營業見於1988 財年，2.9%； 2000財年為6.8%；當然，現在2002財年是10.1%。其中，我將為您提供一些粗略的指導方針。發行量有所上升，但大部分成長來自出版方面。您知道 02 年的發行量約為 5 個百分點，發行利潤約 12.5 個百分點。當我們思考未來時，我們想到的主要好處是出版方面。我之前談到了我們所謂的 15 分中期目標。我想說，你知道，其中，你應該考慮大約 18 個點的出版利潤和大約 6 個點的分配。

OK. Great. Thank you. And then can you run over the roster other than Spidy, who else you have on contract, say, for the next couple of years?

好的。偉大的。謝謝。然後，除了 Spidy 之外，你還能檢查一下名單嗎？例如，在接下來的幾年裡，你還有誰在合約上？

On the superhero front, we have a lot. You know, in addition to Spiderman, we have X-Men. We have Blade. We have Fantastic Four with a movie in pre-production for that. We have Ironman. And, of course, Damage Control.

在超級英雄方面，我們有很多。要知道，除了蜘蛛俠，我們還有X戰警。我們有刀片。我們正在為此準備電影《神奇四俠》。我們有鋼鐵人。當然，還有損害控制。

And Tony Hawk.

還有托尼霍克。

The greatest superhero of all. OK. Thank you.

最偉大的所有人中的超級英雄。好的。謝謝。

Thank you, Mr. Taylor. Our next question comes from Mr. Gary Cooper, Banc of America Securities. Please proceed with your question.

謝謝你，泰勒先生。我們的下一個問題來自美國銀行證券公司的加里·庫柏先生。請繼續你的問題。

Thanks. A couple of questions. The PS1 revenue, I think, was 14 percent at the quarter. You gave guidance to something like for all the old platforms. Can you talk about what has been driving those old platforms? I guess maybe in answering that, tell us why you didn't choose to release Spider-Man 1 or Spider-Man on the old platform with the movie, and then tell us what your plan is for that going forward?

謝謝。有幾個問題。我認為本季 PS1 的營收為 14%。您為所有舊平台提供了類似的指導。您能談談是什麼推動了這些舊平台的發展嗎？我想也許在回答這個問題時，請告訴我們為什麼你不選擇在舊平台上與電影一起發行《蜘蛛人1》或《蜘蛛人》，然後告訴我們你的未來計劃是什麼？

(Inaudible).

（聽不清楚）。

OK. Go ahead. Unid: The older platforms definitely hung in there longer than we anticipated. A couple years ago when we initiated the development of Spidy the movie game, and you're right, if we could do that over, we probably would have added a PlayStation 1 game, but despite overall, this really is performing . So you know it is again what it is. The older platforms are definitely tailing all in the year ahead. We don't see a whole lot coming from them. What is there is driven by very low pricing and the margins are correspondingly low. There are still a few opportunities and we're going after those. Primarily on Tony Hawk we're including a PlayStation 1 version of Tony Hawk 4 in the mix, and we're also bringing Tony Hawk 3 still for the Nintendo 64 platform.

好的。前進。 Unid：舊平台的存在時間肯定比我們預期的要長。幾年前，當我們開始開發《Spidy》電影遊戲時，你是對的，如果我們能重來一次，我們可能會添加一款 PlayStation 1 遊戲，但儘管總體而言，這確實表現出色。所以你知道它又是原來的樣子。較舊的平台在未來一年肯定會落後。我們沒有看到他們做出太多貢獻。這是由非常低的定價所驅動的，因此利潤率也相應較低。還有一些機會，我們正在努力抓住這些機會。主要是在《東尼霍克》中，我們將 PlayStation 1 版本的《東尼霍克 4》納入其中，我們也為 Nintendo 64 平台帶來了《東尼霍克 3》。

OK. And just two more quick questions. Number one, in all the acquisitions that you made here recently, did they bring any capitalized software with them that went on the balance sheet, and then lastly, you know, your working capital items, DSO down to 42 days, how do we look at that? Can we expect that to go much lower? I mean, will it be a source of cash going forward, or is this kind of the bottom or -

好的。還有兩個簡單的問題。第一，在您最近在這裡進行的所有收購中，他們是否帶來了資產負債表上的任何資本化軟體，最後，您知道，您的營運資本項目，DSO 下降到42 天，我們看起來怎麼樣在那？我們可以預期這個數字會更低嗎？我的意思是，它會成為未來的現金來源嗎？或者是這樣的底部還是——

We're thinking about moving all of our customers to cash in advance.

我們正在考慮搬走我們所有的客戶提前兌現。

I would say do not expect that number to, you know, get any lower. That's a very good number considering, you know, the major customers that we deal with and their experience with competitive terms and so forth. On the other part of your question, yeah, there is really only one project, as we did Treyarch, they were working on a Sega title and that, of course, we kept up. Other than that, there is no software project that had to go on the balance sheet.

我想說的是，不要指望這個數字會降低。考慮到我們所處理的主要客戶以及他們在競爭條款方面的經驗等等，這是一個非常好的數字。關於你問題的另一部分，是的，實際上只有一個項目，就像我們做的 Treyarch 一樣，他們正在開發一款世嘉遊戲，當然，我們一直在堅持。除此之外，沒有任何軟體項目必須列入資產負債表。

Thank you.

謝謝。

You bet.

你打賭。

You know what?

你知道嗎？

Huh-uh.

呵呵。

This is our last question.

這是我們的最後一個問題。

Yes. Our final question comes from of SoundView Ventures. Please proceed with your question.

是的。我們的最後一個問題來自SoundView 創投公司。請繼續你的問題。

Thank you very much and congratulations on a good quarter.

非常感謝並祝賀您取得了良好的季度業績。

Thank you.

謝謝。

Thanks.

謝謝。

Very quick question. You talked a little bit about your revenue breakout in fiscal '03. Wondered if you could maybe slice it another way and out of the 65 projects that are in development. On your last call you talked about the Xbox having a few more than GameCube. Has that changed at all? Has that breakout changed?

非常快的問題。您談到了 03 財年的營收突破。想知道您是否可以用另一種方​​式將其從正在開發的 65 個項目中劃分出來。在上次通話中，您談到 Xbox 比 GameCube 擁有更多功能。這有什麼改變嗎？這種突破有變化嗎？

Yeah. A little bit. We have about 31 console titles in development. That number's fairly evenly distributed between the PlayStation 2, the Xbox and the GameCube. For example, our '03 slate is about 15 of those 31 that are coming out, and then in '04, it's about 17 or 18, and they're pretty evenly distributed between those three platforms.

是的。一點點。我們正在開發大約 31 個主機遊戲。這個數字在 PlayStation 2、Xbox 和 GameCube 之間分佈相當均勻。例如，我們 03 年推出的 31 款產品中大約有 15 款，而到了 04 年，大約有 17 或 18 款，而且它們在這三個平台上的分佈相當均勻。

OK. And just housekeeping, tax rate going lower just so I understand what's driving that.

好的。只是家務管理、稅率降低只是為了讓我明白是什麼推動了這一點。

It's effective our international business and the lower tax rates over in the U.K. primarily and the growth of U.K. business. Tax rate there is about 30 points, of course, here, it's higher than that.

這對我們的國際業務、英國較低的稅率以及英國業務的成長非常有效。那裡的稅率大約是30個點，當然，這裡比這個還要高。

Great. Thank you very much.

偉大的。非常感謝。

Thank you.

謝謝。

Thank you all for joining us today. I look forward to sharing our June quarter results with you and look forward to seeing you at E3 at our investor event.

感謝大家今天加入我們。我期待與您分享我們 6 月季度的業績，並期待在 E3 投資者活動中見到您。

Thank you.

謝謝。