2Q05 Financial Statements
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GRAVITY Co. Ltd. | ||||||||||||||||||||||||
Condensed Consolidated Statements of Operations(unaudited) | ||||||||||||||||||||||||
For the Three Months Ended Jun 30, 2004 and 2005, June 30, 2005 | ||||||||||||||||||||||||
(In million of Korean Won and in thousands of US dollars, except share and per share data) | ||||||||||||||||||||||||
For the three months ended (unaudited) | ||||||||||||||||||||||||
Jun 30, | Jun 30, | Mar 31, | Mar 31, | Jun 30, | Jun 30, | |||||||||||||||||||
2004 | 2004 | 2005 | 2005 | 2005 | 2005 | |||||||||||||||||||
KRW | US$ | KRW | US$ | KRW | US$ | |||||||||||||||||||
Total Net revenues | 15,527 | 15,314 | 15,833 | 15,616 | 13,457 | 13,273 | ||||||||||||||||||
Subscription revenues | 3,892 | 3,839 | 3,848 | 3,795 | 2,691 | 2,654 | ||||||||||||||||||
Royalties & License fees | 11,056 | 10,904 | 11,163 | 11,010 | 9,602 | 9,471 | ||||||||||||||||||
Mobile revenues | 124 | 122 | 174 | 172 | 343 | 338 | ||||||||||||||||||
Other revenues | 455 | 449 | 648 | 639 | 821 | 810 | ||||||||||||||||||
Cost of revenues | 2,333 | 2,301 | 3,525 | 3,477 | 3,688 | 3,637 | ||||||||||||||||||
Gross profit | 13,194 | 13,013 | 12,308 | 12,139 | 9,769 | 9,636 | ||||||||||||||||||
Operating expenses : | 3,231 | 3,188 | 4,375 | 4,315 | 6,634 | 6,544 | ||||||||||||||||||
General and administrative | 2,223 | 2,193 | 2,865 | 2,826 | 3,388 | 3,342 | ||||||||||||||||||
Research and development | 464 | 458 | 949 | 936 | 2,638 | 2,602 | ||||||||||||||||||
Advertising expenses | 544 | 537 | 561 | 553 | 608 | 600 | ||||||||||||||||||
Operating income | 9,963 | 9,825 | 7,933 | 7,824 | 3,135 | 3,092 | ||||||||||||||||||
Other income(expenses) : | (1,245 | ) | (1,228 | ) | (677 | ) | (667 | ) | (254 | ) | (252 | ) | ||||||||||||
Interest income | 67 | 66 | 451 | 445 | 786 | 775 | ||||||||||||||||||
Gain on foreign currency transaction | 78 | 77 | 671 | 662 | 732 | 722 | ||||||||||||||||||
Interest expense | (1,193 | ) | (1,177 | ) | (883 | ) | (871 | ) | (651 | ) | (642 | ) | ||||||||||||
Loss on foreign currency transaction | (197 | ) | (194 | ) | (916 | ) | (903 | ) | (1,121 | ) | (1,106 | ) | ||||||||||||
Income before income tax expenses | 8,718 | 8,597 | 7,256 | 7,157 | 2,881 | 2,841 | ||||||||||||||||||
Income tax expenses | 1,285 | 1,267 | 1,777 | 1,753 | 822 | 811 | ||||||||||||||||||
Income before minority interest & losses from equity method investee | 7,433 | 7,330 | 5,479 | 5,404 | 2,059 | 2,030 | ||||||||||||||||||
Minority interest | 15 | 15 | — | 0 | — | — | ||||||||||||||||||
Equity in loss of related joint venture | — | — | 37 | 36 | (117 | ) | (115 | ) | ||||||||||||||||
Net Income | 7,448 | 7,345 | 5,516 | 5,440 | 1,942 | 1,915 | ||||||||||||||||||
Earnings per share | ||||||||||||||||||||||||
Basic and diluted (Based on ADS) | 336 | US$ | 0.33 | 219 | US$ | 0.22 | 70 | US$ | 0.07 |
• Our net income set forth above is net of our income tax expenses, which was calculated using a corporate income tax rate of 24.75% tax rate under the assumption that we may fail to be designated as a venture company under applicable Korean law and regulations. However, if we are successful in renewing our designation as a venture company again this year, we will be entitled to the 50% reduction in corporate income tax rate. If so, our tax rate will be 13.75% and our net income would be US$6.4 million for the first quarter of 2005 and US$2.2 million for the second quarter of 2005.
• The exchange rate applied is the Market Average Exchange Rate in Korea effective as of August 08, 2005, which was KRW 1,013.9 to US$1.00.
GRAVITY Co., Ltd. | ||||||||||||||||
Condensed Consolidated Balance Sheet(unaudited) | ||||||||||||||||
As of June 30, 2005 | ||||||||||||||||
(In million of Korean Won and in thousands of US dollars, except share and per share data) | ||||||||||||||||
March 31, | Jun 30, | |||||||||||||||
2005 | 2005 | 2005 | 2005 | |||||||||||||
KRW | US$ | KRW | US$ | |||||||||||||
ASSETS | ||||||||||||||||
Current assets : | ||||||||||||||||
Cash and cash equivalents | 11,812 | 11,650 | 9,443 | 9,314 | ||||||||||||
Short-term financial instruments | 90,816 | 89,571 | 93,234 | 91,956 | ||||||||||||
Accounts receivable | 9,000 | 8,877 | 8,347 | 8,233 | ||||||||||||
Current deferred income tax assets | 2,443 | 2,410 | 2,652 | 2,616 | ||||||||||||
Other current assets | 5,299 | 5,226 | 4,139 | 4,082 | ||||||||||||
Total current assets | 119,370 | 117,734 | 117,815 | 116,201 | ||||||||||||
Property and equipment, net | 15,669 | 15,454 | 17,110 | 16,875 | ||||||||||||
Leasehold and other deposits | 4,246 | 4,188 | 4,729 | 4,664 | ||||||||||||
Other non-current assets | 2,948 | 2,907 | 4,724 | 4,659 | ||||||||||||
TOTALASSETS | 142,233 | 140,283 | 144,378 | 142,399 | ||||||||||||
LIABILITIES&SHAREHOLDERS’ EQUITY | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Accounts payable | 2,732 | 2,695 | 3,258 | 3,213 | ||||||||||||
Deferred Income | 5,370 | 5,296 | 5,543 | 5,467 | ||||||||||||
Current portion of long-term debt | 803 | 792 | 272 | 268 | ||||||||||||
Accrued interest | 263 | 259 | 213 | 210 | ||||||||||||
Income taxes payable | 486 | 479 | 440 | 434 | ||||||||||||
Other current liabilities | 918 | 906 | 950 | 937 | ||||||||||||
Total Current Liabilities | 10,572 | 10,427 | 10,676 | 10,529 | ||||||||||||
Long term deferred income | 3,756 | 3,705 | 3,282 | 3,237 | ||||||||||||
Accrued severance benefits | 1,022 | 1,008 | 1,221 | 1,204 | ||||||||||||
Other non-current liabilities | 2,009 | 1,981 | 2,170 | 2,141 | ||||||||||||
TOTAL LIABILITIES | 17,359 | 17,121 | 17,349 | 17,111 | ||||||||||||
Total Shareholders’ Equity | 124,874 | 123,162 | 127,029 | 125,288 | ||||||||||||
TOTAL LIABILITIES&SHAREHOLDERS’ EQUITY | 142,233 | 140,283 | 144,378 | 142,399 | ||||||||||||
*Above balance sheet was stated based on the rate of 24.75% not applying 50% tax reduction as we are not certain if we will satisfy the law and regulations for venture company designation. However, if we are successful in renewing our designation as a venture company again this year, we will be entitled to the 50% reduction in corporate income tax rate and our tax rate will be 13.75%.
• The exchange rate applied is the Market Average Exchange Rate in Korea effective as of August 08, 2005, which was KRW 1,013.9 to US$1.00.
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RO Statistics
(As of June 30, 2005)
3Q 02 | 4Q 02 | 1Q 03 | 2Q 03 | 3Q 03 | 4Q 03 | 1Q 04 | 2Q 04 | 3Q 04 | 4Q 04 | 1Q 05 | 2Q05 | |||||||||||||||||||||||||||||||||||||||||
Korea | # of server sets | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 11 | 11 | 11 | 11 | |||||||||||||||||||||||||||||||||||||||
PCU | 24,966 | 31,294 | 28,598 | 29,103 | 33,491 | 27,931 | 30,059 | 22,051 | 26,508 | 20,587 | 22,403 | 15,784 | ||||||||||||||||||||||||||||||||||||||||
ACU | 13,880 | 14,930 | 15,758 | 14,687 | 17,554 | 14,430 | 15,439 | 11,236 | 13,023 | 10,179 | 10,569 | 7,153 | ||||||||||||||||||||||||||||||||||||||||
Japan | # of server sets | 7 | 7 | 7 | 12 | 12 | 13 | 13 | 19 | 19 | 20 | 24 | ||||||||||||||||||||||||||||||||||||||||
PCU | 56,033 | 58,785 | 75,582 | 75,026 | 83,880 | 89,111 | 101,983 | 100,503 | 104,559 | 106,195 | 96,119 | |||||||||||||||||||||||||||||||||||||||||
Taiwan/Hong Kong | # of server sets | 14 | 20 | 22 | 30 | 42 | 48 | 52 | 59 | 61 | 61 | 61 | ||||||||||||||||||||||||||||||||||||||||
PCU | 112,823 | 158,695 | 184,436 | 206,904 | 250,030 | 342,228 | 339,843 | 352,592 | 325,351 | 344,534 | 326,848 | |||||||||||||||||||||||||||||||||||||||||
Thailand | # of server sets | 7 | 8 | 13 | 15 | 17 | 17 | 19 | 21 | 22 | 22 | |||||||||||||||||||||||||||||||||||||||||
PCU | 65,100 | 60,600 | 66,700 | 72,200 | 82,385 | 86,133 | 107,798 | 130,148 | 116,672 | 111,959 | ||||||||||||||||||||||||||||||||||||||||||
China | # of server sets | 22 | 23 | 26 | 30 | 31 | 31 | 34 | 37 | 36 | 36 | |||||||||||||||||||||||||||||||||||||||||
PCU | 112,844 | 125,183 | 118,257 | 147,059 | 116,208 | 100,002 | 78,320 | 76,993 | 64,970 | |||||||||||||||||||||||||||||||||||||||||||
Philippines | # of server sets | 2 | 4 | 7 | 7 | 7 | 8 | 9 | 9 | |||||||||||||||||||||||||||||||||||||||||||
PCU | 15,186 | 30,108 | 37,441 | 38,440 | 36,436 | 50,816 | 54,533 | 45,805 | ||||||||||||||||||||||||||||||||||||||||||||
Malaysia/Singapore | # of server sets | 7 | 8 | 9 | 11 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||
PCU | 28,614 | 31,648 | 30,234 | 29,080 | 24,956 | |||||||||||||||||||||||||||||||||||||||||||||||
Indonesia | # of server sets | 2 | 4 | 4 | 5 | 5 | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||||
PCU | 10,854 | 16,879 | 20,726 | 26,881 | 26,053 | 21,390 | 23,415 | |||||||||||||||||||||||||||||||||||||||||||||
USA/Canada | # of server sets | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | |||||||||||||||||||||||||||||||||||||||||||
PCU | 9,000 | 7,484 | 9,456 | 11,230 | 12,965 | 10,011 | 9,190 | 8,997 | ||||||||||||||||||||||||||||||||||||||||||||
Europe(5 countries)* | # of server sets | 2 | 3 | 3 | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||
PCU | 4,125 | 5,818 | 5,972 | 7,321 | 7,364 | |||||||||||||||||||||||||||||||||||||||||||||||
Australia/New Zealand | # of server sets | 1 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||
PCU | 1,083 | 951 | 999 | |||||||||||||||||||||||||||||||||||||||||||||||||
Brazil | # of server sets | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
PCU | 8,913 | 16,033 |
* Europe (5 countries) represents Germany, Australia, Switzerland, Italy and Turkey.
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