Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Results (Unaudited) [Abstract]

QUARTERLY RESULTS (UNAUDITED)

(15) QUARTERLY RESULTS (UNAUDITED)

The following tables set forth certain unaudited condensed quarterly financial data for each of the last eight quarters during our fiscal years ended December 31, 2011 and 2010. 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.

	2011 Quarter Ended											2010 Quarter Ended
	Mar. 31			June 30			Sept. 30		Dec. 31			Mar. 31			June 30		Sept. 30			Dec. 31
	(In thousands, except per share data)
Revenues	$	50,718		$	50,704		$	51,751	$	49,944		$	41,329		$	45,507	$	46,900		$	50,345
Operating expenses:
Cost of revenues (1)		34,594			34,523			34,125		34,240			29,770			30,873		31,695			33,731
Selling, general and administrative expenses (1)		12,430			12,297			12,417		11,958			9,999			10,344		10,136			10,256
Depreciation of property and equipment		1,181			1,214			1,464		1,542			1,154			1,227		1,290			1,232
Amortization of intangible assets		1,121			1,129			1,277		1,464			1,019			1,038		1,000			1,074
Total operating expenses		49,326			49,163			49,283		49,204			41,942			43,482		44,121			46,293
Operating income (loss)		1,392			1,541			2,468		740			(613	)		2,025		2,779			4,052
Foreign currency transaction (gains) losses on short-term intercompany balances		(448	)		(431	)		1,055		241			621			1,091		(1,274	)		(16	)
Interest expense, net		347			478			398		393			384			271		315			335
Loss on debt extinguishment		—			—			—		—			1,381			—		—			—
Earnings (loss) before income taxes		1,493			1,494			1,015		106			(2,999	)		663		3,738			3,733
Income tax expense (benefit)		1,121			784			593		(1,206	)		436			628		1,177			(359	)
Net earnings (loss)	$	372		$	710		$	422	$	1,312		$	(3,435	)	$	35	$	2,561		$	4,092
Basic earnings (loss) per common share (2)	$	0.02		$	0.03		$	0.02	$	0.04		$	(0.15	)	$	0.00	$	0.11		$	0.17
Diluted earnings (loss) per common share (2)	$	0.02		$	0.03		$	0.02	$	0.04		$	(0.15	)	$	0.00	$	0.11		$	0.17

(1) We have reclassified certain previously reported amounts for all quarters prior to the fourth quarter of 2011 to conform with classifications adopted in the fourth quarter of 2011.

(2) 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 2011, management determined that a valuation allowance is no longer required against the deferred tax assets for one of its foreign subsidiaries given its return to profitability and future projected profitability. This adjustment resulted in a $0.5 million income tax benefit in the fourth quarter of 2011. Also in the fourth quarter of 2011, management recorded the initial purchase accounting entries for the December 2011 acquisition of Business Strategy, Inc. As a part of this process, we recorded a $1.7 million reduction in the deferred tax asset valuation allowance that resulted from the deferred tax liabilities that we recorded relating to the acquisition. This reduction was accounted for as an income tax benefit in the fourth quarter of 2011.

As a part of an ongoing Canadian tax audit, we continue to defend our tax position related to the valuation of an intercompany transaction. We recognized $0.6 million of additional tax expense in the fourth quarter of 2011 to reflect our estimate of the potential tax due based on our continuing discussions with the Canadian tax authorities.

In the fourth quarter of 2010, management determined that it was not probable that the Company would make a matching contribution to the defined contribution retirement plan in 2011 for contributions made by employees in 2010. As a result, we reversed the amount recorded as of September 30, 2010 of $0.9 million in the fourth quarter of 2010.

Also in the fourth quarter of 2010, management finalized the purchase accounting entries relating to the February 2010 acquisition of Etesius Limited. In this process, we recorded a $1.2 million reduction in the deferred tax asset valuation allowance that resulted from the deferred tax liabilities that we recorded relating to the acquisition. We recorded this amount as a reduction in our income tax expense in the fourth quarter of 2010. As we completed the acquisition in the first quarter of 2010, we should have recorded this reduction in income tax expense in the first quarter of 2010. Had we recorded the adjustment in the first quarter of 2010, our net loss would have been $2.2 million as compared to the reported net loss of $3.4 million. We do not believe that the delay in recording this non-cash item is material to the users of our financial statements as it had no impact on our revenues, operating income, Adjusted EBITDA or cash flows, which we believe are the key metrics used by analysts, lenders and other users of our financial statements in evaluating the Company’s performance. Therefore, we do not consider it necessary to restate the 2010 quarterly financial statements.