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8-K - FORM 8-K - ICAD INC | c23817e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
ICAD REPORTS THIRD QUARTER FINANCIAL RESULTS
Strong Revenue Growth in Cancer Detection and Brachytherapy Businesses
Conference Call to be Held Thursday, October 27th at 10:00 a.m. Eastern Time
Conference Call to be Held Thursday, October 27th at 10:00 a.m. Eastern Time
NASHUA, N.H. (October 26, 2011) iCAD, Inc. (Nasdaq: ICAD), an industry-leading provider of
advanced image analysis, workflow solutions and radiation therapies for the early identification
and treatment of cancer, today reported financial results for the three and nine months ended
September 30, 2011.
Ken Ferry, President and CEO of iCAD, commented, Our third quarter results feature strong revenue
growth in both our cancer detection and brachytherapy businesses, with each area posting
double-digit revenue gains sequentially and over the same period last year.
Our brachytherapy business continues to gain momentum driven by the growing interest in breast
intraoperative radiation therapy (IORT). We recently participated in the annual meeting of the
American Society for Therapeutic Radiology and Oncology, where we were extremely encouraged by the
high level of interest in the Axxent® eBx platform by the clinical community. Adding to this
momentum, new reimbursement codes for IORT were assigned by the American Medical Association and
reimbursement payment rates from the Centers for Medicare and Medicaid are currently anticipated by
November 1st. We believe compelling clinical data supporting the use of IORT in
breast cancer treatment combined with appropriate coding and reimbursement will be strong catalysts
for enhancing the adoption of IORT and driving revenue growth for our brachytherapy platform.
Our cancer detection business also performed well in the quarter, with much stronger demand in the
U.S. for our Digital Mammography and MRI products. Our mammography business has received a
positive response to a new CAD solution that connects to multiple brands of digital mammography
equipment simultaneously within a department. In addition, our new product platform for use with
breast and prostate MRI continued to achieve strong comparative growth on a quarter and
year-to-date basis.
Overall, we were quite pleased with the progress that was achieved in the quarter. It is
gratifying to see results of our strategy to provide a broader offering of solutions to the
oncology market, and the traction gained by each of our businesses, concluded Mr. Ferry.
Third Quarter Financial Results
Revenue: Total revenue for the third quarter of 2011 was $8.1 million, an increase of
approximately $2.5 million, or 44%, compared with total revenue of $5.6 million for the third
quarter of 2010. The Axxent eBx system contributed approximately $1.8 million to revenue in the
quarter, consisting of approximately $1.3 million in product sales and $441,000 in service and
supply revenue. In addition, the quarter featured solid growth in the Companys CAD business.
Three months ended September 30, | ||||||||||||
2011 | 2010 | % Change | ||||||||||
Digital & MRI revenue |
$ | 3,791 | $ | 3,311 | 15 | % | ||||||
Film based revenue |
616 | 748 | (18 | )% | ||||||||
Electronic brachytherapy |
1,347 | | ||||||||||
Service & supply revenue |
2,298 | 1,527 | 51 | % | ||||||||
Total revenue |
$ | 8,052 | $ | 5,586 | 44 | % | ||||||
Gross Margin: Gross profit for the third quarter of 2011 was $5.9 million, or 73.1% of
revenue, compared with $4.5 million, or 79.8% of revenue, for the third quarter of 2010.
Goodwill Impairment & Contingent Consideration: In the third quarter of 2011, the
Company recorded a non-cash charge of $26.8 million related to the impairment of goodwill. As a
result of the sustained decline in the market value of the Company, an interim goodwill impairment
analysis was performed using the two-step approach, as required under GAAP. The Company concluded
that, based on current market conditions, a portion of goodwill was impaired resulting in a $26.8
million non-cash charge in the third quarter of 2011.
In the third quarter of 2011, the Company recorded a non-cash $3.8 million gain on contingent
consideration. This gain represents a fair value adjustment to the contingent consideration
liability related to the Companys acquisition of Xoft, Inc. in December 2010.
The goodwill impairment and gain on contingent consideration are non-cash items and are excluded
from the non-GAAP financial results. A further discussion of our non-GAAP results for the third
quarter and first nine months of fiscal 2011 is included elsewhere in this press release.
Net Loss: For the third quarter of 2011, the Company posted a net loss of $25.0 million, or
$0.46 per share, compared with a net loss of $1.4 million, or $0.03 per share, in the third quarter
of 2010.
Non-GAAP Adjusted Net Loss: For the third quarter of 2011, the Company posted a non-GAAP
adjusted net loss of $1.8 million, or $0.03 per share, compared with a net loss of $1.7 million, or
$0.04 per share, in the third quarter of 2010.
Non-GAAP Adjusted EBITDA: Non-GAAP Adjusted EBITDA was a loss of $868,000 in the third
quarter of 2011, compared with a loss of $1.0 million in the third quarter of 2010.
Cash and Cash Flow: The Company ended the third quarter of 2011 with cash and cash
equivalents of $5.3 million and no long-term debt. For the 2011 third quarter, net cash used by
operations was $2.3 million.
Nine Month Financial Results
Revenue: For the nine months ended September 30, 2011, total revenue was $22.0 million, an
increase of $3.8 million, or 21%, compared with total revenue of $18.2 million for the nine months
ended September 30, 2010. The Axxent eBx system contributed approximately $4.3 million to revenue
in the first nine months of 2011, consisting of approximately $3.1 million in product sales and
$1.2 million in service and supply revenue.
Nine months ended September 30, | ||||||||||||
2011 | 2010 | % Change | ||||||||||
Digital & MRI revenue |
$ | 10,751 | $ | 11,468 | (6 | )% | ||||||
Film based revenue |
1,670 | 2,519 | (34 | )% | ||||||||
Electronic brachytherapy |
3,042 | | ||||||||||
Service & supply revenue |
6,579 | 4,217 | 56 | % | ||||||||
Total revenue |
$ | 22,042 | $ | 18,204 | 21 | % | ||||||
Gross Margin: Gross profit for the first nine months of 2011 was $15.5 million, or 70.4% of
revenue, compared with $14.6 million, or 80.4% of revenue, for the first nine months of 2010. The
2011 nine-month gross margin was impacted by $700,000 of amortization expense and higher
manufacturing costs, both related to the Axxent eBx product.
Net Loss: For the first nine months of 2011, the Company posted a net loss of $34.3
million, or $0.63 per share, compared with a net loss of $3.3 million, or $0.07 per share, for the
first nine months of 2010.
Non-GAAP Adjusted Net Loss: For the first nine months of 2011, the Company posted a
non-GAAP adjusted net loss of $9.9 million, or $0.18 per share, compared with a net loss of $3.6
million, or $0.08 per share for the nine months ended September 30, 2010.
Non-GAAP Adjusted EBITDA: Non-GAAP Adjusted EBITDA was a loss of $6.8 million for the nine
months ended September 30, 2011, compared with a loss of $1.1 million for the nine months ended
September 30, 2010.
Financial Guidance
iCAD today confirmed financial guidance for 2011 and continues to expect total revenue to be in the
range of $30 million to $32 million, with gross margin between 71% and 73%.
Use of Non-GAAP Financial Measures
In its quarterly news releases, conference calls, slide presentations or webcasts, the Company may
use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial
measures most directly comparable to each non-GAAP financial measure used or discussed, and a
reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP
financial measure, are included in this press release after the condensed consolidated financial
statements. When analyzing the Companys operating performance, investors should not consider these
non-GAAP measures as a substitute for the comparable financial measures prepared in accordance with
GAAP. The Companys quarterly news releases containing such non-GAAP reconciliations can be found
on the Investors section of the Companys web site at www.icadmed.com.
Conference Call
iCAD management will host an investment community conference call beginning at 10:00 a.m. Eastern
time on Thursday, October 27, 2011 to discuss these results and answer questions. Shareholders and
other interested parties may participate in the conference call by dialing 800-299-0148 (domestic)
or 617-801-9711 (international) and entering passcode 12967438. The call will also be broadcast
live on the Internet at www.streetevents.com, www.fulldisclosure.com and www.icadmed.com.
A replay of the conference call will be accessible two hours after its completion through November
1, 2011 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering passcode
74124094. The call will also be archived for 90 days at www.streetevents.com,
www.fulldisclosure.com and www.icadmed.com.
About iCAD, Inc.
iCAD, Inc. is an industry-leading provider of advanced image analysis and workflow solutions that
enable healthcare professionals to better serve patients by identifying pathologies and pinpointing
the most prevalent cancers earlier. iCAD offers a comprehensive range of high-performance,
upgradeable Computer-Aided Detection (CAD) systems and workflow solutions for mammography, Magnetic
Resonance Imaging (MRI) and Computed Tomography (CT). iCAD recently acquired Xoft, Inc., developer
of the Axxent® eBx electronic brachytherapy system. Axxent uses non-radioactive
miniaturized X-ray tube technology and is FDA-cleared for the treatment of early stage breast
cancer, skin cancer and endometrial cancer. The Axxent System is also cleared for use in the
treatment of other cancers or conditions where radiation therapy is indicated including
Intraoperative Radiation Therapy (IORT). For more information, call (877) iCADnow or visit
www.icadmed.com.
iCAD: contact Kevin Burns at 603-882-5200 x7944, or via email at kburns@icadmed.com
Investor Relations: contact Anne Marie Fields of LHA at 212-838-3777, or via email at afields@lhai.com
Media: contact Wendy Ryan of Schwartz Communications at 781-684-0770, or via email at
wryan@schwartzcomm.com
wryan@schwartzcomm.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements contained in this News Release constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve a number of known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking
statements. Such factors include, but are not limited to, the Companys ability to defend itself in
litigation matters, the risks relating to the Companys acquisition of Xoft including, the expected
benefits of the acquisition may not be achieved in a timely manner, or at all; the Xoft business
operations may not be successfully integrated with iCADs and iCAD may be unable to achieve the
expected synergies, business and strategic objectives following the transaction, the risks of
uncertainty of patent protection; the impact of supply and manufacturing constraints or
difficulties; product market acceptance; possible technological obsolescence; increased
competition; customer concentration; and other risks detailed in the Companys filings with the
Securities and Exchange Commission. The words believe, demonstrate, intend, expect,
estimate, anticipate, likely, and similar expressions identify forward-looking statements.
Readers are cautioned not to place undue reliance on those forward-looking statements, which speak
only as of the date the statement was made. The Company is under no obligation to provide any
updates to any information contained in this release. For additional disclosure regarding these
and other risks faced by iCAD, please see the disclosure contained in our public filings with the
Securities and Exchange Commission, available on the Investors section of our website at
http://www.icadmed.com and on the SECs website at http://www.sec.gov.
Tables to Follow
iCAD, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
(In thousands except for share data)
(Unaudited)
(In thousands except for share data)
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 5,288 | $ | 16,269 | ||||
Trade accounts receivable, net of allowance for doubtful
accounts of $50 in 2011 and 2010 |
5,656 | 3,389 | ||||||
Inventory, net |
2,132 | 3,489 | ||||||
Prepaid expenses and other current assets |
576 | 581 | ||||||
Total current assets |
13,652 | 23,728 | ||||||
Property and equipment, net of accumulated depreciation
and amortization of $2,600 in 2011 and $2,852 in 2010 |
2,118 | 2,774 | ||||||
Other assets |
604 | 675 | ||||||
Intangible assets, net of accumulated amortization
of $8,317 in 2011 and $6,746 in 2010 |
17,584 | 21,165 | ||||||
Goodwill |
20,907 | 45,689 | ||||||
Total assets |
$ | 54,865 | $ | 94,031 | ||||
Liabilities and Stockholders Equity | ||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 2,407 | $ | 2,500 | ||||
Accrued and other expenses |
4,518 | 5,902 | ||||||
Deferred revenue |
5,702 | 4,906 | ||||||
Total current liabilities |
12,627 | 13,308 | ||||||
Contingent consideration |
0 | 5,000 | ||||||
Deferred revenue, long-term portion |
1,628 | 961 | ||||||
Other long-term liabilities |
1,000 | 1,552 | ||||||
Total liabilities |
15,255 | 20,821 | ||||||
Stockholders equity: |
||||||||
Preferred stock, $ .01 par value: authorized 1,000,000 shares;
none issued |
| | ||||||
Common stock, $ .01 par value: authorized 85,000,000
shares; issued 54,751,176 in 2011 and 54,383,747 in 2010;
outstanding 54,683,300 in 2011 and 54,315,871 in 2010 |
547 | 544 | ||||||
Additional paid-in capital |
163,775 | 163,101 | ||||||
Accumulated deficit |
(123,762 | ) | (89,485 | ) | ||||
Treasury stock at cost (67,876 shares) |
(950 | ) | (950 | ) | ||||
Total stockholders equity |
39,610 | 73,210 | ||||||
Total liabilities and stockholders equity |
$ | 54,865 | $ | 94,031 | ||||
iCAD, INC. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
(In thousands except for per share data)
(Unaudited)
(In thousands except for per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue: |
||||||||||||||||
Products |
$ | 5,754 | $ | 4,059 | $ | 15,463 | $ | 13,987 | ||||||||
Service and supplies |
2,298 | 1,527 | 6,579 | 4,217 | ||||||||||||
Total revenue |
8,052 | 5,586 | 22,042 | 18,204 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Products |
1,280 | 544 | 3,627 | 1,769 | ||||||||||||
Service and supplies |
650 | 587 | 2,191 | 1,792 | ||||||||||||
Amortization of acquired intangibles |
233 | | 700 | | ||||||||||||
Total cost of revenue |
2,163 | 1,131 | 6,518 | 3,561 | ||||||||||||
Gross profit |
5,889 | 4,455 | 15,524 | 14,643 | ||||||||||||
Operating expenses: |
||||||||||||||||
Engineering and product development |
2,630 | 1,715 | 8,709 | 4,796 | ||||||||||||
Marketing and sales |
3,108 | 2,347 | 10,780 | 7,363 | ||||||||||||
General and administrative |
2,147 | 1,805 | 8,363 | 6,131 | ||||||||||||
Contingent consideration |
(3,800 | ) | 0 | (4,900 | ) | 0 | ||||||||||
Goodwill Impairment |
26,750 | 0 | 26,750 | 0 | ||||||||||||
Total operating expenses |
30,835 | 5,867 | 49,702 | 18,290 | ||||||||||||
Loss from operations |
(24,946 | ) | (1,412 | ) | (34,178 | ) | (3,647 | ) | ||||||||
Gain on sale of patent |
| | | 275 | ||||||||||||
Interest (expense) income net |
(37 | ) | 19 | (99 | ) | 58 | ||||||||||
Net loss |
$ | (24,983 | ) | $ | (1,393 | ) | $ | (34,277 | ) | $ | (3,314 | ) | ||||
Net loss per share: |
||||||||||||||||
Basic and diluted |
$ | (0.46 | ) | $ | (0.03 | ) | $ | (0.63 | ) | $ | (0.07 | ) | ||||
Weighted average number of shares
used in
computing loss per share: |
||||||||||||||||
Basic and diluted |
54,681 | 45,922 | 54,533 | 45,782 | ||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES
(Unaudited, in thousands, except per share amounts)
(Unaudited, in thousands, except per share amounts)
The following is a reconciliation of the non-GAAP financial measures used by the Company to
describe the Companys financial results determined in accordance with United States generally
accepted accounting principles (GAAP). An explanation of these measures is also included below
under the heading Explanation of Non-GAAP Financial Measures.
While management believes that these non-GAAP financial measures provide useful supplemental
information to investors regarding the underlying performance of the Companys business operations,
investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute
for, financial performance measures prepared in accordance with GAAP. In addition, it should be
noted that these non-GAAP financial measures may be different from non-GAAP measures used by other
companies, and management may utilize other measures to illustrate performance in the future.
Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with
the Companys results of operations as determined in accordance with GAAP.
Non-GAAP Adjusted EBITDA
Set forth below is a reconciliation of the Companys Non-GAAP Adjusted EBITDA
(Unaudited, in thousands)
Set forth below is a reconciliation of the Companys Non-GAAP Adjusted EBITDA
(Unaudited, in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP Net Loss |
$ | (24,983 | ) | $ | (1,393 | ) | $ | (34,277 | ) | $ | (3,314 | ) | ||||
Interest (Income)
Expense, net |
37 | (19 | ) | 99 | (58 | ) | ||||||||||
Stock Compensation |
100 | 280 | 684 | 1,261 | ||||||||||||
Depreciation |
267 | 118 | 813 | 367 | ||||||||||||
Amortization |
523 | 292 | 1,570 | 875 | ||||||||||||
Severance |
| | 537 | | ||||||||||||
Gain on sale of Asset |
| (275 | ) | (275 | ) | |||||||||||
Recall and patent lawsuits |
238 | | 1,568 | | ||||||||||||
Acquisition related |
| | 374 | | ||||||||||||
Contingent consideration |
(3,800 | ) | | (4,900 | ) | | ||||||||||
Goodwill Impairment |
26,750 | | 26,750 | | ||||||||||||
Non GAAP Adjusted EBITDA |
$ | (868 | ) | $ | (997 | ) | $ | (6,782 | ) | $ | (1,144 | ) | ||||
Non-GAAP Adjusted Net Loss
Set forth below is a reconciliation of the Companys Non-GAAP Adjusted Net Loss
(Unaudited, in thousands, except loss per share)
Set forth below is a reconciliation of the Companys Non-GAAP Adjusted Net Loss
(Unaudited, in thousands, except loss per share)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP Net Loss |
$ | (24,983 | ) | $ | (1,393 | ) | $ | (34,277 | ) | $ | (3,314 | ) | ||||
Adjustments to net loss: |
||||||||||||||||
Severance |
| | 537 | | ||||||||||||
Gain on sale of Asset |
| (275 | ) | (275 | ) | |||||||||||
Recall and patent lawsuits |
238 | | 1,568 | | ||||||||||||
Acquisition related |
| | 374 | | ||||||||||||
Contingent consideration |
(3,800 | ) | | (4,900 | ) | | ||||||||||
Goodwill Impairment |
26,750 | | 26,750 | | ||||||||||||
Non GAAP Adjusted Net Loss |
$ | (1,795 | ) | $ | (1,668 | ) | $ | (9,948 | ) | $ | (3,589 | ) | ||||
Net loss per share |
||||||||||||||||
GAAP Net loss per share |
$ | (0.46 | ) | $ | (0.03 | ) | $ | (0.63 | ) | $ | (0.07 | ) | ||||
Adjustments to net loss (as
detailed above) |
0.43 | (0.01 | ) | 0.45 | (0.01 | ) | ||||||||||
Non GAAP Adjusted Net Loss per share |
$ | (0.03 | ) | $ | (0.04 | ) | $ | (0.18 | ) | $ | (0.08 | ) | ||||
Explanation of Non-GAAP Financial Measures
The Company reports its financial results in accordance with United States generally accepted
accounting principles, or GAAP. However, management believes that in order to properly understand
the Companys short-term and long-term financial and operational trends, investors may wish to
consider the impact of certain non-cash or non-recurring items, when used as a supplement to
financial performance measures in accordance with GAAP. These items result from facts and
circumstances that vary in frequency and/or impact on continuing operations. Management also uses
results of operations before such items to evaluate the operating performance of the Company and
compare it against past periods, make operating decisions, and serve as a basis for strategic
planning. These non-GAAP financial measures provide management with additional means to understand
and evaluate the operating results and trends in the Companys ongoing business by eliminating
certain non-cash expenses and other items that management believes might otherwise make comparisons
of the Companys ongoing business with prior periods more difficult, obscure trends in ongoing
operations, or reduce managements ability to make useful forecasts. Management believes that these
non-GAAP financial measures provide additional means of evaluating period-over-period operating
performance. In addition, management understands that some investors and financial analysts find
this information helpful in analyzing the Companys financial and operational performance and
comparing this performance to its peers and competitors.
Management defines Non-GAAP Adjusted EBITDA as the sum of GAAP net loss before provision for
income taxes, acquisition-related expenses, total other (income) expense, stock-based compensation
expense, depreciation and amortization, severance, gain on sale, amortization of acquired
intangibles, acquisition related, patent litigation and recall costs, contingent consideration and
goodwill impairment charges. Management considers this non-GAAP financial measure to be an
important indicator of the Companys operational strength and performance of its business and a
good measure of its historical operating trends, in particular the extent to which ongoing
operations impact the Companys overall financial performance.
Management defines Non-GAAP Adjusted Net Loss as the sum of GAAP net loss before provision for
the gain on sale of asset, severance, transaction, patent litigation and recall costs, contingent
consideration and goodwill impairment charges. Management considers this non-GAAP financial measure
to be an important indicator of the Companys operational strength and performance of its business
and a good measure of its historical operating trends, in particular the extent to which ongoing
operations impact the Companys overall financial performance.
Management excludes each of the items identified below from the applicable non-GAAP financial
measure referenced above for the reasons set forth with respect to that excluded item:
| Stock-based compensation expense: excluded as these are non-cash expenses that management
does not consider part of ongoing operating results when assessing the performance of the
Companys business, and also because the total amount of expense is partially outside of the
Companys control as it is based on factors such as stock price volatility and interest
rates, which may be unrelated to our performance during the period in which the expense is
incurred. |
||
| Amortization of acquired intangibles: acquisition-related expenses are reported at the
time acquisition costs are incurred, and purchased intangibles are amortized over a period
of several years after the acquisition and generally cannot be changed or influenced by
management after the acquisition. Accordingly, these items are not considered by management
in making operating decisions, and management believes that such expenses do not have a
direct correlation to future business operations. Thus, including such charges does not
accurately reflect the performance of the Companys ongoing operations for the period in
which such charges are incurred. |
||
| Severance: relates to costs incurred due to the termination of certain employees. The
Company provides compensation to certain employees as an accommodation upon termination of
employment without cause. Management believes that excluding severance costs from operating
results provides investors with a better means for measuring current Company performance. |
||
| Gain on sale: relates to a gain on the one-time sale of a non-core patent in the second
quarter of 2010. Since the proceeds are non-recurring, management believes that it should be
excluded when evaluating core operations. |
| Acquisition-related expenses: relates to transition and integration cost as well as
professional service fees due to the acquisition of Xoft, Inc. The Company does not consider
these acquisition-related costs to be related to the organic continuing operations of the
acquired businesses and are generally not relevant to assessing or estimating the long-term
performance of the acquired assets. |
||
| Recall and patent lawsuits: These expenses consist primarily of investigation, audit,
legal and other professional fees related to the recall and patent litigation, as well as
recoveries received from third parties. The Company excludes these costs and recoveries from
its non-GAAP measures primarily because the Company believes that these costs and recoveries
have no direct correlation to the core operation of the Companys. |
||
| Contingent consideration: the Company reviews the fair value of contingent consideration
on a quarterly basis and, accordingly, recorded a gain due to a reduction of the contingent
consideration liability related to the acquisition of Xoft, Inc. This amount arose from the
Companys acquisition of Xoft, Inc. and has no direct correlation to the core operation of
the Company. |
||
| Goodwill impairment charges: the Company recorded a goodwill impairment loss during the
third quarter of 2011 primarily due to current market conditions affecting the price of its
common stock. The Company does not consider the impairment charge to be directly related to
the continuing operations of the business. |
On occasion in the future, there may be other items, such as significant asset impairments,
restructuring charges or significant gains or losses from contingencies that the Company may
exclude if it believes that doing so is consistent with the goal of providing useful information to
investors and management.