EX-12.1 4 exhibit121-ratioofearningt.htm STATEMENT OF COMPUTATION Exhibit 12.1 - Ratio of Earning to Fixed Charges


Exhibit 12.1
Statement of Computation of Ratio of Earnings to Fixed Charges
(in thousands)
 
For the six months ended
 
For the years ended
 
June 30,
 
December 31,
 
2013
 
2012
 
2012
 
2011
 
2010
 
2009
 
2008 (a)

Loss before taxes
$
(9,063
)
 
$
(2,385
)
 
$
(37,123
)
 
$
(12,661
)
 
$
(854
)
 
$
(3,232
)
 
$
(77,557
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense (b)
613

 
843

 
1,722

 
1,870

 
2,035

 
2,373

 
4,871

Rentals:
 
 
 
 
 
 
 
 
 
 
 
 
 
Buildings, net of sublease income - 6.0% (c)
119

 
179

 
324

 
288

 
494

 
311

 
323

Total fixed charges
732

 
1,022

 
2,046

 
2,158

 
2,529

 
2,684

 
5,194

Loss before taxes and discontinued operations, plus fixed charges
(8,331
)
 
(1,363
)
 
(35,077
)
 
(10,503
)
 
1,675

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

 

 

 

 

 

 

Deficit
$
(9,063
)
 
$
(2,385
)
 
$
(37,123
)
 
$
(12,661
)
 
$
(854
)
 
$
(3,232
)
 
$
(77,557
)

(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 subordinated notes is included in interest expense.
(c) Management believes that 6.0% 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 losses reported for the six months ended June 30, 2013 and 2012 and for the years ended December 31, 2012, 2011, 2010, 2009 and 2008.