Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 31, 2012
Jul. 31, 2011
Jul. 31, 2012
Jul. 31, 2011
Revenues:        
Products $ 13,541 $ 15,049 $ 25,468 $ 32,402
Services 23,197 23,337 47,896 46,153
Total revenues 36,738 38,386 73,364 78,555
Cost of revenues:        
Products 4,716 4,541 8,267 9,507
Services 13,200 11,129 25,480 23,542
Amortization of intangible assets and capitalized software 503 516 1,028 1,117
Stock based compensation expense 77 89 194 240
Inventory write-down 1,752 0 1,752 0
Total cost of revenues 20,248 16,275 36,721 34,406
Gross profit 16,490 22,111 36,643 44,149
Operating expenses:        
Research and development 9,664 9,974 19,619 19,918
Selling and marketing 3,949 4,550 8,082 10,690
General and administrative 4,033 3,981 8,398 8,136
Amortization of intangibles 944 1,125 1,922 1,915
Stock based compensation expense 1,223 717 2,134 1,876
Earn-outs and change in fair value of earn-outs 1,543 52 1,603 105
Professional fees: acquisitions, divestitures, litigation, and strategic alternatives 469 708 1,419 1,276
Severance and other restructuring costs 1,470 227 1,442 227
Total operating expenses 23,295 21,334 44,619 44,143
(Loss) income from operations (6,805) 777 (7,976) 6
Other (expense) income, net (474) 98 (429) 255
Gain on sale of investment in affiliates 0 0 814 0
(Loss) income before income taxes and equity income in earnings of affiliates (7,279) 875 (7,591) 261
Income tax expense (benefit) 115 (90) 116 (214)
Equity income in earnings of affiliates, net of tax 0 1 26 87
(Loss) income from continuing operations (7,394) 966 (7,681) 562
Income (loss) on sale of discontinued operations 2,547 0 (14,448) 0
Loss from discontinued operations, net of tax (447) (179) (2,742) (159)
Net (loss) income (5,294) 787 (24,871) 403
Net (loss ) income (5,294) 787 (24,871) 403
Other comprehensive income (loss), net of tax:        
Foreign currency translation adjustment 3,524 (948) 5,159 2,375
Unrealized loss on marketable securities 13 (27) 0 (53)
Comprehensive (loss) income $ (1,757) $ (188) $ (19,712) $ 2,725
(Loss) income per share:        
Basic (loss) income per share (in dollars per share) $ (0.16) $ 0.02 $ (0.76) $ 0.01
Diluted (loss) income per share (in dollars per share) $ (0.16) $ 0.02 $ (0.76) $ 0.01
(Loss) income per share from continuing operations:        
Basic (loss) income per share (in dollars per share) $ (0.22) $ 0.03 $ (0.23) $ 0.02
Diluted (loss) income per share (in dollars per share) $ (0.22) $ 0.03 $ (0.23) $ 0.02
Income (loss) per share from discontinued operations:        
Basic income (loss) per share (in dollars per share) $ 0.06 $ (0.01) $ (0.53) $ (0.01)
Diluted income (loss) income per share (in dollars per share) $ 0.06 $ (0.01) $ (0.53) $ (0.01)
Weighted average common shares outstanding:        
Basic (in shares) 32,629 32,080 32,585 32,008
Diluted (in shares) 32,629 32,684 32,585 32,549