Audiovox 2008 Annual Report Download - page 103

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Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 29, 2008
(Dollars in thousands, except share and per share data)
Simultaneous with the acquisition of Code Systems, Inc. (Code) in March 2002, the Company entered into a purchase and
supply agreement with a third party. In exchange for entering into this agreement, the Company issued 50 warrants in its
subsidiary, Code, which vest immediately. Furthermore, the agreement calls for the issuance of additional warrants based
upon the future operating performance of Code. Based upon the contingent nature of the warrants, no recognition was given
to the Code warrants as the related contingency was not considered probable and such warrants had not vested at February
29, 2008 or February 28, 2007.
17) Unaudited Quarterly Financial Data
Selected unaudited, quarterly financial data of the Company for the years ended February 29, 2008 and February 28, 2007
appear below:
Quarters Ended
Feb. 29, 2008 Nov. 30, 2007 Aug. 31, 2007 May 31, 2007
2008
Net sales $ 131,269 $ 183,563 $ 148,269 $ 128,254
Gross profit 24,674 34,991 28,474 23,189
Net (loss) income from continuing
operations (1,785) 4,680 3,730 121
Net (loss) income from discontinued
operations (392) - - 2,111
Net (loss) income $ (2,177) $ 4,680 $ 3,730 $ 2,232
Net (loss) income per common share
(basic):
From continuing operations $ (0.08) $ 0.20 $ 0.16 $ 0.01
From discontinued operations $ (0.02) - - $ 0.09
Net (loss) income per common share
(basic) $ (0.10) $ 0.20 $ 0.16 $ 0.10
Net (loss) income per common share
(diluted):
From continuing operations $ (0.08) $ 0.20 $ 0.16 $ 0.01
From discontinued operations $ (0.02) - - $ 0.09
Net (loss) income per common share
(diluted) $ (0.10) $ 0.20 $ 0.16 $ 0.10
Quarters Ended
Feb. 28, 2007 Nov. 30, 2006 Aug. 31, 2006 May 31, 2006
2007
Net sales $ 96,134 $ 151,833 $ 97,424 $ 111,299
Gross profit 18,095 25,371 15,754 20,099
Net (loss) income from continuing
operations (305) 3,848 (1,633) 1,782
Net (loss) income from discontinued
operations (180) 6 (322) (260)
Net (loss) income $ (485) $ 3,854 $ (1,955) $ 1,522
Net (loss) income per common share
(basic):
From continuing operations $ (0.01) $ 0.17 $ (0.07) $ 0.08
From discontinued operations $ (0.01) - $ (0.02) $ (0.01)
Net (loss) income per common share
(basic) $ (0.02) $ 0.17 $ (0.09) $ 0.07
Source: AUDIOVOX CORP, 10-K, May 14, 2008