EX-12.1 4 exhibit121-statementofcomp.htm RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1 - Statement of computation of ratio of earnings to fixed charges


Exhibit 12.1

Statement of Computation of Ratio of Earnings to Fixed Charges

 
For the six months ended
June 30,
 
For the years ended
December 31,
 
2012
 
2011
 
2011
 
2010
 
2009
 
2008 (a)
 
2007 (a)
Income (loss) before taxes and discontinued operations
$
(2,385
)
 
$
(434
)
 
$
(12,661
)
 
$
(854
)
 
$
(3,232
)
 
$
(77,557
)
 
$
(29,228
)
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense (b)
843

 
952

 
1,870

 
2,035

 
2,373

 
4,871

 
7,340

Rentals:
 
 
 
 
 
 
 
 
 
 
 
 
 
Buildings, net of sublease income - 6.0% (c)
234

 
202

 
490

 
494

 
311

 
323

 
339

Total fixed charges
$
1,077

 
$
1,154

 
$
2,360

 
$
2,529

 
$
2,684

 
$
5,194

 
$
7,679

Income (loss) before taxes and discontinued operations, plus fixed charges
$
(1,308
)
 
$
720

 
$
(10,301
)
 
$
1,675

 
$
(548
)
 
$
(72,363
)
 
$
(21,549
)
Ratio of earnings to fixed charges (d)

 

 

 

 

 

 

Deficit
$
2,385

 
$
434

 
$
12,661

 
$
854

 
$
3,232

 
$
77,557

 
$
29,228


(a) As adjusted due to the implementation of the cash conversion subsections of ASC Topic 470-20 “Debt with Conversion and Other Options—Cash Conversion.” See Note 1 “Significant Accounting Policies” to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2009.
(b) Amortization of the discount on the Company’s outstanding convertible subordinated notes is included in Interest expense.
(c) Management believes that 6% is a reasonable approximation of the interest factor on rentals. Building and office rental fees that were included in restructuring charges were excluded from fixed charges.
(d) The earnings to fixed charges ratio was less than 1:1 due to the losses reported for the six months ended June 30, 2012 and 2011 and for the years ended December 31, 2011, 2010, 2009, 2008, and 2007.