DREAMWORKSANIMATIONSKG,INC. NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued) 15. Quarterly Financial Information (Unaudited) The unaudited quarterly financial statements have been prepared on substantially the same basis as the audited financial statements, and, in the opinion of management include all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the results of operations for such periods (in thousands, except per share data): QuarterEnded March31 June30 September30 December31 2003 Operating Revenue .................................. $46,576 $ 71,948 $ 47,828 $134,634 Gross profit (loss) .................................. 6,763 (82,943) (25,145) (36,648) Loss before income taxes and cumulative effect of accounting change ................................ (10,281) (103,528) (35,573) (33,418) Net loss ........................................... (10,366) (104,328) (35,898) (36,569) Basic net loss per share .............................. (0.14) (1.36) (0.47) (0.48) Diluted net loss per share ............................. (0.14) (1.36) (0.47) (0.48) 2004 Operating Revenue .................................. $40,814 $ 300,304 $241,343 $495,699 Gross profit (loss) .................................. (4,612) 147,515 45,032 324,016 Income (loss) before income taxes and cumulative effect of accounting change ................................ (25,152) 146,358 21,569 280,551 Net income (loss) ................................... (25,455) 146,133 20,313 192,009 Basic net income (loss) per share ....................... (0.33) 1.91 0.27 2.02 Diluted net income (loss) per share ..................... (0.33) 1.89 0.26 1.99 The amount of revenues and cost of revenues recognized for the quarter ended December 31, 2004 is substantially less than the amounts that would have been recognized if the Distribution Agreement had not becomeeffective on October 1, 2004. 96