QUARTERLY RESULTS (UNAUDITED)

The following tables set forth certain unaudited condensed consolidated quarterly financial data for each of the last eight quarters during our fiscal years ended December 31, 2016 and 2015. We have derived the information from unaudited Condensed Consolidated Financial Statements that, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of such quarterly information. The operating results for any quarter are not necessarily indicative of the results to be expected for any future period. The quarterly results are updated for continuing operations.



	2016 Quarter Ended												2015 Quarter Ended
	Mar. 31			June 30			Sept. 30			Dec. 31			Mar. 31			June 30			Sept. 30			Dec. 31
	(In thousands, except per share data)
Revenue, net	$	31,233		$	35,291		$	35,137		$	39,183		$	32,985		$	36,995		$	33,365		$	34,957
Operating expenses:
Cost of revenue	21,646			23,431			22,367			23,855			23,167			24,111			23,507			22,384
Selling, general and administrative expenses	8,848			9,620			9,883			11,048			7,944			9,185			8,284			6,871
Depreciation of property and equipment	1,232			1,216			1,376			1,209			1,279			1,294			1,255			1,489
Amortization of intangible assets	394			395			393			650			746			754			517			441
Total operating expenses	32,120			34,662			34,019			36,762			33,136			35,344			33,563			31,185
Operating income (loss) from continuing operations	(887		)	629			1,118			2,421			(151		)	1,651			(198		)	3,772
Foreign currency transaction (gains) losses on short-term intercompany balances	(1,007		)	196			(165		)	1,060			1,692			(416		)	654			235
Interest expense (income), net	(29		)	(12		)	(14		)	(98		)	(42		)	(53		)	(8		)	(87		)
Other (income) loss	10			18			(168		)	19			—			—			1,612			(421		)
Income (loss) from continuing operations before income taxes	139			427			1,465			1,440			(1,801		)	2,120			(2,456		)	4,045
Income tax expense (benefit)	204			460			(685		)	1,263			455			296			421			(803		)
Net income (loss) from continuing operations	(65		)	(33		)	2,150			177			(2,256		)	1,824			(2,877		)	4,848

Basic earnings (loss) per common share from continuing operations ⁽¹⁾	$	—		$	—		$	0.10		$	0.01		$	(0.09	)	$	0.07		$	(0.11	)	$	0.19

Diluted earnings (loss) per common share from continuing operations ⁽¹⁾	$	—		$	—		$	0.10		$	0.01		$	(0.09	)	$	0.07		$	0.11		$	0.19


(1)	We calculate each quarter as a discrete period; the sum of the four quarters may not equal the calculated full-year amount.

In the fourth quarter of 2016, we released a valuation allowance of $1.1 million against the net deferred tax assets of certain of our foreign subsidiaries, which reduced our income tax expense for the period.

In the fourth quarter of 2015, we released a valuation allowance of $1.5 million against the net deferred tax assets of one of our foreign subsidiaries, which reduced our income tax expense for the period.