2014 Q3 Form 10-K Financial Statement

#000119312514370175 Filed on October 14, 2014

View on sec.gov

Income Statement

Concept 2014 Q3 2013 Q3 2013 Q2
Revenue $164.7M $181.0M $173.0M
YoY Change -9.01% 4.55% -0.31%
Cost Of Revenue $150.2M $160.9M $157.6M
YoY Change -6.62% -0.48% 0.01%
Gross Profit $14.45M $20.09M $15.38M
YoY Change -28.08% 75.48% -3.47%
Gross Profit Margin 8.77% 11.1% 8.89%
Selling, General & Admin $17.20M $19.80M $19.29M
YoY Change -13.13% -29.29% -13.92%
% of Gross Profit 119.02% 98.54% 125.44%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $3.250M $4.190M $3.362M
YoY Change -22.43% 15.11% 0.63%
% of Gross Profit 22.49% 20.85% 21.87%
Operating Expenses $18.62M $25.77M $22.14M
YoY Change -27.75% -12.66% -6.99%
Operating Profit -$4.167M -$5.675M -$6.760M
YoY Change -26.57% -68.57% -14.1%
Interest Expense -$2.300M -$1.100M $324.0K
YoY Change 109.09% -200.0% 260.0%
% of Operating Profit
Other Income/Expense, Net -$2.226M -$1.196M -$677.0K
YoY Change 86.12% -123.25% -118.04%
Pretax Income -$6.400M -$7.000M -$7.437M
YoY Change -8.57% -45.74% 80.64%
Income Tax $2.092M $1.804M $392.0K
% Of Pretax Income
Net Earnings -$8.485M -$8.841M -$8.306M
YoY Change -4.03% -56.32% 35.37%
Net Earnings / Revenue -5.15% -4.88% -4.8%
Basic Earnings Per Share -$0.17
Diluted Earnings Per Share -$164.1K -$170.9K -$0.17
COMMON SHARES
Basic Shares Outstanding 52.11M shares 51.59M shares 47.97M shares
Diluted Shares Outstanding 47.97M shares

Balance Sheet

Concept 2014 Q3 2013 Q3 2013 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $206.3M $77.90M $71.20M
YoY Change 164.83% 48.38% -9.41%
Cash & Equivalents $183.5M $77.92M $71.18M
Short-Term Investments $22.80M $100.0K
Other Short-Term Assets $10.20M $9.800M $11.00M
YoY Change 4.08% -6.67% 18.28%
Inventory $65.27M $61.32M $70.33M
Prepaid Expenses
Receivables $123.9M $142.1M $151.7M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $405.8M $291.1M $304.2M
YoY Change 39.4% -1.62% -11.9%
LONG-TERM ASSETS
Property, Plant & Equipment $25.13M $34.29M $35.33M
YoY Change -26.72% -15.9% -17.16%
Goodwill $3.058M $3.058M $3.058M
YoY Change 0.0% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $7.200M $8.000M $9.300M
YoY Change -10.0% -25.93% -13.89%
Other Assets $9.855M $5.528M $6.991M
YoY Change 78.27% 1.15% -30.65%
Total Long-Term Assets $45.88M $52.61M $56.75M
YoY Change -12.8% -16.49% -18.66%
TOTAL ASSETS
Total Short-Term Assets $405.8M $291.1M $304.2M
Total Long-Term Assets $45.88M $52.61M $56.75M
Total Assets $451.6M $343.7M $361.0M
YoY Change 31.41% -4.23% -13.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $105.0M $110.1M $112.4M
YoY Change -4.63% -0.34% -17.2%
Accrued Expenses $39.54M $34.75M $39.33M
YoY Change 13.8% -16.78% -1.77%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $100.0K
YoY Change 0.0%
Total Short-Term Liabilities $198.6M $176.4M $184.0M
YoY Change 12.56% -3.26% -12.71%
LONG-TERM LIABILITIES
Long-Term Debt $73.40M $0.00 $0.00
YoY Change -100.0% -100.0%
Other Long-Term Liabilities $8.004M $9.866M $9.761M
YoY Change -18.87% -10.41% -12.12%
Total Long-Term Liabilities $81.43M $10.36M $9.761M
YoY Change 686.04% -8.92% -12.12%
TOTAL LIABILITIES
Total Short-Term Liabilities $198.6M $176.4M $184.0M
Total Long-Term Liabilities $81.43M $10.36M $9.761M
Total Liabilities $280.0M $186.8M $193.8M
YoY Change 49.92% -3.59% -12.68%
SHAREHOLDERS EQUITY
Retained Earnings -$7.293B -$7.277B -$7.268B
YoY Change 0.22% 0.56% 0.72%
Common Stock $521.0K $7.420B $7.420B
YoY Change -99.99% 0.4% 0.41%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $171.6M $156.9M $167.1M
YoY Change
Total Liabilities & Shareholders Equity $451.6M $343.7M $361.0M
YoY Change 31.41% -4.23% -13.04%

Cashflow Statement

Concept 2014 Q3 2013 Q3 2013 Q2
OPERATING ACTIVITIES
Net Income -$8.485M -$8.841M -$8.306M
YoY Change -4.03% -56.32% 35.37%
Depreciation, Depletion And Amortization $3.250M $4.190M $3.362M
YoY Change -22.43% 15.11% 0.63%
Cash From Operating Activities $10.73M $9.910M -$5.980M
YoY Change 8.27% -144.78% -49.54%
INVESTING ACTIVITIES
Capital Expenditures -$1.350M -$2.730M -$1.000M
YoY Change -50.55% 21.88% -75.67%
Acquisitions
YoY Change
Other Investing Activities -$570.0K -$70.00K $530.0K
YoY Change 714.29% -77.42% -134.42%
Cash From Investing Activities -$1.910M -$2.800M -$470.0K
YoY Change -31.79% 9.8% -91.68%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 4.640M -20.00K 26.24M
YoY Change -23300.0% -50.0% -262500.0%
NET CHANGE
Cash From Operating Activities 10.73M 9.910M -5.980M
Cash From Investing Activities -1.910M -2.800M -470.0K
Cash From Financing Activities 4.640M -20.00K 26.24M
Net Change In Cash 13.46M 7.090M 19.79M
YoY Change 89.84% -128.68% -213.02%
FREE CASH FLOW
Cash From Operating Activities $10.73M $9.910M -$5.980M
Capital Expenditures -$1.350M -$2.730M -$1.000M
Free Cash Flow $12.08M $12.64M -$4.980M
YoY Change -4.43% -163.55% -35.66%

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1060000
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CY2013 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
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115000
CY2013 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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212000
CY2013 mlnk Defined Benefit Plan Benefit Obligation Contributions By Plan Participants
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296000
CY2013 mlnk Equity In Losses Of Affiliates And Impairments
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CY2013 mlnk Reclassification For Doubtful Accounts
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CY2013 mlnk Expected Income Tax Expense Benefit
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CY2013 mlnk Income Tax Reconciliation Net Withholding Taxes
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218000
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CY2013 mlnk Fair Value Transfers Between Input Levels Amount
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0
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CY2013 mlnk Income Tax Reconciliation Foreign Dividends
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CY2013 mlnk Amount Of Account Receivable Factoring Without Recourse
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7700000
CY2013 mlnk Stock Issued During Period Value Stock Options Exercised And Stock Purchase Plans
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CY2013 mlnk Income Tax Reconciliation Decrease To Asc Seven Forty Reserve
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2200000
CY2013 mlnk Restructuring Charges Related To Workforce Reduction And Other Expenses
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CY2013 mlnk Tax Income Loss Not Benefited Utilized
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13413000
CY2013 mlnk Cost Incurred On Sale Of Receivables
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6000
CY2013 mlnk Transaction Costs
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81000
CY2013 mlnk Restructuring Charges Related To Asset Write Offs And Closed Facilities
RestructuringChargesRelatedToAssetWriteOffsAndClosedFacilities
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CY2013 mlnk Income Tax Reconciliation Capitalized Costs
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CY2014 us-gaap Debt Instrument Convertible Remaining Discount Amortization Period1
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CY2014 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets
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CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeited In Period
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CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
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CY2014 dei Document Type
DocumentType
10-K
CY2014 dei Entity Registrant Name
EntityRegistrantName
MODUSLINK GLOBAL SOLUTIONS INC
CY2014 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
No
CY2014 dei Trading Symbol
TradingSymbol
MLNK
CY2014 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
51582000 shares
CY2014 us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
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Accelerated Filer
CY2014 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
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0.00
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5 Segment
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1.00 pure
CY2014 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2014 us-gaap Nature Of Operations
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<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> <b>(1) NATURE OF OPERATIONS</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> ModusLink Global Solutions, Inc. (together with its consolidated subsidiaries, &#x201C;ModusLink Global Solutions&#x201D; or the &#x201C;Company&#x201D;), through its wholly owned subsidiaries, ModusLink Corporation (&#x201C;ModusLink&#x201D;) and ModusLink PTS, Inc. (&#x201C;ModusLink PTS&#x201D;), is a leader in global supply chain business process management serving clients in markets such as consumer electronics, communications, computing, medical devices, software, and retail. The Company designs and executes critical elements in its clients&#x2019; global supply chains to improve speed to market, product customization, flexibility, cost, quality and service. These benefits are delivered through a combination of industry expertise, innovative service solutions, integrated operations, proven business processes, expansive global footprint and world-class technology.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> The Company has an integrated network of strategically located facilities in various countries, including numerous sites throughout North America, Europe and Asia. The Company previously operated under the names CMGI, Inc. and CMG Information Services, Inc. and was incorporated in Delaware in 1986.</p> </div>
CY2014 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
10139000
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3.05
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CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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P4Y4M28D
CY2014 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Rate Of Compensation Increase
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0.0201 pure
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
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CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
184000 shares
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.0116 pure
CY2014 us-gaap Use Of Estimates
UseOfEstimates
<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 18pt"> <i>Use of Estimates</i></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> The preparation of the Company&#x2019;s consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis the Company evaluates its estimates including those related to revenue recognition, allowance for doubtful accounts, inventories, fair value of its trading and available-for-sale securities, intangible assets, income taxes, restructuring, valuation of long-lived assets, impairments, contingencies, restructuring charges, litigation and the fair value of stock options and share bonus awards granted under the Company&#x2019;s stock based compensation plans. Accounting estimates are based on historical experience and various assumptions that are considered reasonable under the circumstances. However, because these estimates inherently involve judgments and uncertainties, actual results could differ materially from those estimated.</p> </div>
CY2014 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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51582000 shares
CY2014 dei Document Period End Date
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2014-07-31
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P40D
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0.0373 pure
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Grant Date Fair Value
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4.18
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6.52
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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P5Y2M16D
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue
4.20
CY2014 dei Amendment Flag
AmendmentFlag
false
CY2014 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--07-31
CY2014 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2014
CY2014 us-gaap Conversion Of Stock Shares Issued1
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200000 shares
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P3Y9M29D
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
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4.19
CY2014 dei Entity Central Index Key
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0000914712
CY2014 us-gaap Earnings Per Share Basic And Diluted
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0.35 pure
CY2014 us-gaap Restructuring And Related Cost Number Of Positions Eliminated
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181 Employee
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0.5732 pure
CY2014 dei Document Fiscal Period Focus
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FY
CY2014 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 0pt"> <i>Major Clients and Concentration of Credit Risk</i></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> Sales to one client, Hewlett-Packard, accounted for approximately 29%, 29% and 31% of the Company&#x2019;s consolidated net revenue for the fiscal years ended July&#xA0;31, 2014, 2013, and 2012, respectively. Hewlett-Packard accounted for approximately 17% and 23% of the Company&#x2019;s Net Accounts Receivable balance as of July&#xA0;31, 2014 and 2013, respectively. To manage risk, the Company performs ongoing credit evaluations of its clients&#x2019; financial condition. The Company generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> Financial instruments which potentially subject the Company to concentrations of credit risk are cash, cash equivalents, available-for-sale securities and accounts receivable. The Company&#x2019;s cash equivalent portfolio is diversified and consists primarily of short-term investment grade securities placed with high credit quality financial institutions.</p> </div>
CY2014 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
3 Segment
CY2014 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 18pt"> <i>Reclassification</i></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> Certain reclassifications have been made to prior periods to conform with current reporting. On the Statements of Operations the Equity in losses of affiliates are classified after the Loss from continuing operations before income taxes.</p> </div>
CY2014 us-gaap Stock Issued During Period Shares Stock Options Exercised
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337000 shares
CY2014 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
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51582000 shares
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152000
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628000
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74000
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4837000
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74725000
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3838000
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IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
9891000
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175000
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130000
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255000
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80000
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511000
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577000
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DefinedBenefitPlanOtherChanges
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100000
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155000
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CY2013Q3 us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
IncomeLossFromContinuingOperationsPerBasicAndDilutedShare
-0.17
CY2013Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.17
CY2013Q3 us-gaap Gross Profit
GrossProfit
20093000
CY2013Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
-6000
CY2013Q3 us-gaap Sales Revenue Net
SalesRevenueNet
181001000
CY2013Q3 us-gaap Net Income Loss
NetIncomeLoss
-8841000
CY2013Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-5675000
CY2013Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-1196000
CY2013Q3 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-8835000
CY2013Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1804000
CY2013Q3 us-gaap Cost Of Revenue
CostOfRevenue
160908000
CY2013Q3 us-gaap Gain Loss On Disposition Of Assets1
GainLossOnDispositionOfAssets1
600000
CY2013Q3 us-gaap Gain Loss On Sale Of Other Assets
GainLossOnSaleOfOtherAssets
-100000
CY2013Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
-160000
CY2013Q3 us-gaap Operating Expenses
OperatingExpenses
25768000
CY2013Q3 us-gaap Proceeds From Sale Of Foreclosed Assets
ProceedsFromSaleOfForeclosedAssets
100000
CY2014Q3 us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
IncomeLossFromContinuingOperationsPerBasicAndDilutedShare
-0.16
CY2014Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.16
CY2014Q3 us-gaap Gross Profit
GrossProfit
14451000
CY2014Q3 us-gaap Sales Revenue Net
SalesRevenueNet
164700000
CY2014Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-4167000
CY2014Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-2226000
CY2014Q3 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-8485000
CY2014Q3 us-gaap Net Income Loss
NetIncomeLoss
-8485000
CY2014Q3 us-gaap Operating Expenses
OperatingExpenses
18618000
CY2014Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2092000
CY2014Q3 us-gaap Cost Of Revenue
CostOfRevenue
150249000

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