Year Ended March 31 (Dollars In Thousands, Except Share and Per Share Data) 2003 2002 2001 Net Sales $ 1,171,631 $ 1,294,322 $ 1,431,838 Cost of Goods Sold 1,022,378 1,123,839 1,253,631 Gross margin 149,253 170,483 178,207 Operating Expenses Warehouse, selling and administrative expenses 135,899 154,682 163,182 Restructuring charges 20,697 473 — Write-down of information technology system assets — — 14,200 Operating Income (Loss) (7,343) 15,328 825 Other (Income) Expense Other income, net (966) (873) (479) Investment impairment 14,600 — — Interest expense, net 9,343 11,257 16,257 Loss on retirement of debt 1,164 — 771 Income (Loss) Before Income Taxes (31,484) 4,944 (15,724) Provision (benefit) for income taxes (11,739) 1,618 (3,713) (19,745) 3,326 (12,011) Distributions on mandatorily redeemable convertible trust preferred securities, net of tax 6,315 6,237 6,305 Loss from Continuing Operations $ (26,060) $ (2,911) $ (18,316) Income (Loss) from Discontinued Operations, net of taxes (See Note 2) 18,777 (4,136) 52,892 Income (Loss) Before Cumulative Effect of Change in Accounting Principle $ (7,283) $ (7,047) $ 34,576 Cumulative Effect of Change in Accounting Principle, net of $1.9 million tax benefit (34,795) — — Net Income (Loss) $ (42,078) $ (7,047) $ 34,576 Per Share Data: Basic and Diluted Loss from Continuing Operations $ (0.96) $ (0.11) $ (0.68) Income (Loss) from Discontinued Operations 0.69 (0.15) 1.97 Income (Loss) Before Cumulative Effect of Change in Accounting Principle $ (0.27) $ (0.26) $ 1.29 Cumulative Effect of Change in Accounting Principle (1.27) — — Net Income (Loss) $ (1.54) $ (0.26) $ 1.29 Weighted Average Shares Outstanding: Basic and Diluted 27,291,683 27,040,171 26,793,457 27 See accompanying Notes to Consolidated Financial Statements. Pioneer-Standard Electronics, Inc. and Subsidiaries consolidated statements of operations