Revision of Prior Period Financial Statements

9 Months Ended

Jan. 01, 2012

Revision of Prior Period Financial Statements [Abstract]

Revision of Prior Period Financial Statements

Note 2

Revision of Prior Period Financial Statements

During the third quarter of fiscal 2012, the Company identified errors primarily related to retention bonuses associated with its plan to close its Oregon manufacturing facility ($6.4 million expense).  In addition, the Company had corrected prior period errors in the first and second quarters of 2012 related to retention bonuses ($0.5 million expense) for certain key employees and accounts payable system related issues ($1.0 million benefit) respectively. The Company assessed the materiality of these errors individually and in the aggregate on prior periods' financial statements in accordance with the SEC's Staff Accounting Bulletin No. 99 (“SAB 99”), and concluded that the errors were not material to any of its prior annual or interim financial statements. The Company also concluded that correcting the errors, on a cumulative basis, would not be material to the expected results of operations for the year ended April 1, 2012. However, as permitted in SEC's Staff Accounting Bulletin No. 108 (“SAB 108”), the Company elected to revise previously issued consolidated financial statements the next time they are filed.  As each subsequent filing is made in the future, the previous period consolidated financial statements affected by the errors will be revised. The Company has revised the April 3, 2011 consolidated balance sheet and the consolidated statements of operations for the three and nine months ended January 2, 2011 included herein to reflect the correct balances. Of the above mentioned errors, the amount related to the accounts payable system related issue will be corrected in the opening retained earnings and will not impact the earnings of current or subsequent filings.  The impact of correcting these errors on net income as reported for the interim three month period ended July 3, 2011 and three and six month periods ended October 2, 2011 was a reduction of $1.5 million, $0.8 million and $2.3 million, respectively.

Set out below are the line items within the consolidated financial statements as of and for the three and nine months ended January 2, 2011 that have been impacted by the revisions.  The revision had no impact on the Company's total cash flows from operating, investing or financing activities.

	For the Three Months Ended January 2, 2011									For the Nine Months Ended January 2, 2011
(in thousands, except per share amounts)	As Reported (1)			Adjustments			As  Revised			As Reported (1)		Adjustments			As  Revised
Consolidated Statement of Operations
Cost of revenues	$	66,507		$	670		$	67,177		$	211,212	$	2,010		$	213,222
Gross profit		81,017			(670	)		80,347			249,503		(2,010	)		247,493
Research and development		40,620			54			40,674			116,612		162			116,774
Selling, general and administrative		25,997			20			26,017			77,672		60			77,732
Total operating expenses		66,617			74			66,691			194,284		222			194,506
Operating income		14,400			(744	)		13,656			55,219		(2,232	)		52,987
Income from continuing operations    before income taxes		15,752			(744	)		15,008			58,012		(2,232	)		55,780
Provision for income taxes		52			59			111			1,438		221			1,659
Net income from continuing operations		15,700			(803	)		14,897			56,574		(2,453	)		54,121
Net income	$	10,597		$	(803	)	$	9,794		$	41,234	$	(2,453	)	$	38,781
Basic income (loss) per share:
Continuing operations	$	0.10		$	-		$	0.10		$	0.37	$	(0.02	)	$	0.35
Net income (loss)	$	0.07		$	(0.01	)	$	0.06		$	0.27	$	(0.02	)	$	0.25
Diluted net income (loss) per share:
Continuing operations	$	0.10		$	-		$	0.10		$	0.37	$	(0.02	)	$	0.35
Net income (loss)	$	0.07		$	(0.01	)	$	0.06		$	0.27	$	(0.02	)	$	0.25
	As of  April 3, 2011
(in thousands)	As Reported			Adjustments			As  Revised
Consolidated Balance Sheets
Accounts payable	$	36,470		$	(1,051	)	$	35,419
Accrued compensation     and related expenses		28,212		$	4,572			32,784
Total current liabilities		110,645		$	3,521			114,166
Total liabilities		128,678		$	3,521			132,199
Accumulated deficit		(837,075	)		(3,521	)		(840,596	)
Total stockholders' equity	$	598,782		$	(3,521	)	$	595,261
1) Reflect's previously reported amounts as adjusted for discontinued operations (see Note 6).