The following table sets forth our unaudited quarterly Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2015. In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data.



	Fiscal 2015
	1st Quarter⁽³⁾			2nd Quarter			3rd Quarter ⁽²⁾			4th Quarter ⁽¹⁾
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	104,016		$	103,103		$	83,305		$	86,603
Gross profit	55,028			54,385			46,231			47,068
Net loss	$	(2,657	)	$	(994	)	$	(4,811	)	$	(7,199	)
Net loss per share:
Basic	$	(0.03	)	$	(0.01	)	$	(0.05	)	$	(0.08	)
Diluted	$	(0.03	)	$	(0.01	)	$	(0.05	)	$	(0.08	)
Shares used in per share calculations:
Basic	88,655			88,426			87,991			84,932
Diluted	88,655			88,426			87,991			84,932
	Fiscal 2014
	1st Quarter			2nd Quarter ⁽¹⁾			3rd Quarter ⁽¹⁾ ⁽²⁾			4th Quarter ⁽¹⁾
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	108,032		$	109,589		$	108,061		$	107,875
Gross profit	52,312			49,817			53,428			56,791
Net income (loss)	$	(5,410	)	$	(37,062	)	$	1,078		$	(4,854	)
Net income (loss) per share:
Basic	$	(0.06	)	$	(0.39	)	$	0.01		$	(0.06	)
Diluted	$	(0.06	)	$	(0.39	)	$	0.01		$	(0.06	)
Shares used in per share calculations:
Basic	97,921			93,966			90,618			88,012
Diluted	97,921			93,966			91,800			88,012

(1) A history of operating losses in recent years has led to uncertainty with respect to the Company’s ability to realize certain net deferred tax assets, and as a result, the Company recorded increased valuation allowances of $24.5 million, $4.2 million and $0.3 million, in the second, third and fourth quarters of fiscal 2014, respectively, against its U.S. net deferred tax assets. In 2015, the Company continued to record a valuation allowance against all of its U.S. net deferred tax assets, resulting in an increase in valuation allowance of $3.1 million in the fourth quarter of fiscal 2015. This increase in valuation allowance is offset partially by the release of $0.9 million valuation allowance against one of its Israel subsidiaries due to cumulative income generated in recent years.

(2) In the third quarter of fiscal 2015 and 2014, the Company recorded tax benefits of $0.5 million and $9.0 million, respectively, resulting from the expiration of the applicable statute of limitations relating to the tax audits in the U.S. for the years of 2011 and 2010, respectively.

(3) In the first quarter of fiscal 2015, the Company recorded an impairment charge of $2.5 million for its investment in VJU iTV Development GmbH as a result of its assessment that this investment was impaired on an other-than-temporary basis (See Note 5, “Investments in Other Equity Securities,” of the notes to our Consolidated Financial Statements for additional information).