Audiovox 2010 Annual Report Download - page 100

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Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 28, 2010
(Dollars in thousands, except share and per share data)
This matter was settled in May 2007 and received final Chancery court approval in June 2007. As a result of the settlement,
the Company received $6,750 in gross proceeds. The gross proceeds were offset by $2,378 in plaintiff legal fees and $1,023
in accrued legal and administrative costs for defending all remaining ACC legal claims. The items discussed above resulted
in a pre-tax benefit of $3,349 recorded in discontinued operations for the year ended February 29, 2008.
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
28, 2010 or February 28, 2009.
15) Unaudited Quarterly Financial Data
Selected unaudited, quarterly financial data of the Company for the years ended February 28, 2010 and February 28, 2009
appear below:
Quarters Ended
Feb. 28, 2010 Nov. 30, 2009 Aug. 31, 2009 May 31, 2009
2010
Net sales $ 150,342 $ 155,657 $ 124,890 $ 119,806
Gross profit 30,003 30,226 23,598 22,924
Net (loss) income from continuing operations 6,590 12,645 2,775 473
Net (loss) income from discontinued operations - - - -
Net (loss) income $ 6,590 $ 12,645 $ 2,775 $ 473
Net (loss) income per common share (basic):
From continuing operations $ 0.29 $ 0.55 $ 0.12 $ 0.02
From discontinued operations - - - -
Net (loss) income per common share (basic) $ 0.29 $ 0.55 $ 0.12 $ 0.02
Net (loss) income per common share (diluted):
From continuing operations $ 0.29 $ 0.55 $ 0.12 $ 0.02
From discontinued operations - - - -
Net (loss) income per common share (diluted) $ 0.29 $ 0.55 $ 0.12 $ 0.02
Quarters Ended
Feb. 28, 2009 Nov. 30, 2008 Aug. 31, 2008 May 31, 2008
2009
Net sales $ 115,666 $ 195,642 $ 147,208 $ 144,583
Gross profit 13,735 38,958 25,060 22,515
Net (loss) income from continuing operations (70,021) 6,525 (2,311) (5,223)
Net (loss) income from discontinued operations - - - -
Net (loss) income $ (70,021) $ 6,525 $ (2,311) $ (5,223)
Net (loss) income per common share (basic):
From continuing operations $ (3.06) $ 0.29 $ (0.10) $ (0.23)
From discontinued operations - - - -
Net (loss) income per common share (basic) $ (3.06) $ 0.29 $ (0.10) $ (0.23)
Net (loss) income per common share (diluted):
From continuing operations $ (3.06) $ 0.29 $ (0.10) $ (0.23)
From discontinued operations - - - -
Net (loss) income per common share (diluted) $ (3.06) $ 0.29 $ (0.10) $ (0.23)
Source: AUDIOVOX CORP, 10-K, May 14, 2010 Powered by Morningstar® Document Research℠