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Quarterly Financial Data (Unaudited)
12 Months Ended
Dec. 25, 2011
Quarterly Financial Data (Unaudited)  
Quarterly Financial Data (Unaudited)

 

Note 16. Quarterly Financial Data (Unaudited)

        The following financial information reflects all normal and recurring adjustments that are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Summarized quarterly data for the years ended December 26, 2010 and December 25, 2011, is as follows (in millions, except per share data):

Quarterly Results in 2010

 
  First
Quarter
  Second
Quarter
  Third
Quarter
  Fourth
Quarter
 

Fiscal year 2010

                         

Revenues

  $ 68.7   $ 99.1   $ 119.9   $ 120.8  

Gross profit

  $ 15.2   $ 19.9   $ 24.4   $ 24.8  

Operating income from continuing operations

  $ 3.6   $ 4.5   $ 8.4   $ 6.6  

Provision (benefit) for income taxes

  $ 0.3   $ (11.7 ) $ (1.1 ) $ (0.2 )

Net income

  $ 0.2   $ 10.7   $ 3.2   $ 0.4  

Net income per common share:

                         

Basic

  $ 0.02   $ 0.67   $ 0.20   $ 0.02  

Diluted

  $ 0.02   $ 0.65   $ 0.19   $ 0.02  

        The quarterly increases in revenues and expenses are a result of the Company's acquisitions. See Note 3.

        During the second, third and fourth quarters, the Company incurred $1.1 million, $0.4 million and $1.6 million, respectively of expenses related to the Company's acquisitions during those quarters.

        In the second and third quarters, the benefit for income taxes of $12.2 million and $1.3 million, respectively, was a result of the release of valuation allowances against the Company's deferred tax assets as a result of deferred tax liabilities that were established as the result of the Company's acquisitions.

        In the third quarter of 2010, the Company reached a settlement with one of its directors' and officers' insurance carriers to cover costs related to its completed stock options and DOJ investigations. The settlement received, net of legal expenses, was a $1.4 million benefit.

        As a result of the impact of the issuance of 2.5 million shares in October 2010 on the Company's quarterly and yearly weighted average basic and diluted shares outstanding, the sum of 2010 quarterly income per share does not equal the Company's 2010 income per share. See Note 11.

Quarterly Results in 2011

 
  First
Quarter
  Second
Quarter
  Third
Quarter
  Fourth
Quarter
 

Fiscal year 2011

                         

Revenues

  $ 122.8   $ 171.1   $ 211.0   $ 218.2  

Gross profit

  $ 27.4   $ 45.4   $ 60.2   $ 59.2  

Operating income from continuing operations

  $ 1.4   $ 8.7   $ 10.0   $ 8.1  

Provision (benefit) for income taxes

  $ (1.2 ) $ 0.9   $ 1.6   $ 0.6  

Net loss

  $ (3.5 ) $ (5.2 ) $ (6.9 ) $ (8.6 )

Net loss per common share:

                         

Basic

  $ (0.17 ) $ (0.22 ) $ (0.22 ) $ (0.25 )

Diluted

  $ (0.17 ) $ (0.22 ) $ (0.22 ) $ (0.25 )

        The quarterly increases in revenues and expenses are a result of the Company's acquisitions. See Note 3.

        During the first, second, third and fourth quarters, the Company incurred $5.8 million, $1.8 million, $3.7 million and $1.2 million, respectively of expenses related to the Company's acquisitions during those quarters. Also included in the first, second, third, and fourth quarter is amortization of purchased intangibles of $3.4 million, $9.2 million, $11.9 million and $13.5 million, respectively. Certain of the lives of the intangible assets are relatively short in nature, ranging from 10 to 16 months. See Note 3.

        As a result of the impact of the issuance of 4.9 million shares in February 2011 for the Herley acquisition and 10.4 million shares in July 2011 for the Integral acquisition, and the buyback of 2.0 million shares in November 2011 on the Company's quarterly and yearly weighted average basic and diluted shares outstanding, the sum of 2011 quarterly loss per share does not equal the Company's 2011 loss per share. See Note 3 and 11.