SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2016

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12.SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The Company’s quarterly financial statements for each of the quarters included in its Form 10-Qs for the year ended December 31, 2016 contained an error related to the elimination of intercompany cost of sales.  The error has been corrected as of December 31, 2016, but since the adjustment was not material to any of the quarters the Form 10-Qs will not be amended.  Management has determined the effects to be neither quantitatively or qualitatively material to the financial statements included in any of the Form 10-Qs filed during 2016.  The impact of the error was immaterial to all periods in 2015.

The following table illustrates the correction of the error as shown in the statement of operations in Form 10-Q:

Year 2016	First Quarter		Second Quarter		Third Quarter
Net income as reported	2,127		2,942		2,520
Effect on cost of goods sold	(228	)	(251	)	(301	)
Net income as revised	2,355		3,193		2,821

The following table illustrates the correction of the error as recorded in the Company’s financial statements:

Year 2016	Fourth Quarter
Net income as recorded	1,489
Effect on cost of goods sold	780
Net income as revised	709

Selected quarterly financial data for each of the four quarters in years 2016 and 2015 is as follows (in thousands, except per share data):

Year 2016 (Revised)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Revenues	$	63,675	$	65,835	$	61,040	$	55,343
Gross margin	18,505		19,864		17,907		16,728
Net income	2,355		3,193		2,821		709
Basic earnings per share	0.25		0.34		0.30		0.08
Diluted earnings per share	0.25		0.34		0.30		0.08

Year 2015	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Revenues	$	59,580	$	60,479	$	61,534	$	50,841
Gross margin	17,500		17,987		18,939		14,346
Net income	2,976		3,125		4,278		695
Basic earnings per share	0.32		0.34		0.46		0.08
Diluted earnings per share	0.32		0.34		0.46		0.07

Note: The sum of the quarterly net income per share (basic and diluted) differs from the annual net income per share (basic and diluted) because of the differences in the weighted average number of common shares outstanding and the common shares used in the quarterly and annual computations as well as differences in rounding.