Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Results (Unaudited) [Abstract]

QUARTERLY RESULTS (UNAUDITED)

(13) 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, 2012 and 2011. 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.

	2012 Quarter Ended											2011 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	$	51,649		$	51,658	$	52,087		$	53,109		$	50,718		$	50,704		$	51,751	$	49,944
Operating expenses:
Cost of revenue		34,218			33,312		32,461			34,399			34,594			34,523			34,125		34,240
Selling, general and administrative expenses		12,637			12,696		13,242			13,952			12,430			12,297			12,417		11,958
Depreciation of property and equipment		1,513			1,579		1,716			2,276			1,181			1,214			1,464		1,542
Amortization of intangible assets		2,327			1,459		1,431			2,007			1,121			1,129			1,277		1,464
Total operating expenses		50,695			49,046		48,850			52,634			49,326			49,163			49,283		49,204
Operating income		954			2,612		3,237			475			1,392			1,541			2,468		740
Foreign currency transaction (gains) losses on short-term intercompany balances		(339	)		497		(348	)		(187	)		(448	)		(431	)		1,055		241
Interest expense (income), net		504			529		515			(582	)		347			478			398		393
Earnings before income taxes		789			1,586		3,070			1,244			1,493			1,494			1,015		106
Income tax expense (benefit)		497			584		505			(289	)		1,121			784			593		(1,206	)
Net earnings	$	292		$	1,002	$	2,565		$	1,533		$	372		$	710		$	422	$	1,312
Basic earnings per common share (1)	$	0.01		$	0.04	$	0.10		$	0.06		$	0.02		$	0.03		$	0.02	$	0.05
Diluted earnings per common share (1)	$	0.01		$	0.04	$	0.10		$	0.06		$	0.02		$	0.03		$	0.02	$	0.05

(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 2012, we reduced our tax expense by $0.4 million and our interest expense by $0.8 million to reflect adjustments to our estimates for uncertain tax positions. We adjusted our estimates for several reasons, including the expiration of the statute of limitations for certain of these taxes in several states and in two foreign jurisdictions, completion of an audit by a foreign jurisdiction that resulted in a lower tax assessment than we had estimated, and the imposition of limitations on our potential liability resulting from our beginning the voluntary disclosure agreement process with one state.

In the fourth quarter of 2011, management determined that a valuation allowance was no longer required against the deferred tax assets for one of the Company’s 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 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.