2015 Q3 Form 10-K Financial Statement

#000119312515343814 Filed on October 14, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2015 2014 Q3
Revenue $119.7M $561.7M $164.7M
YoY Change -27.33% -22.36% -9.01%
Cost Of Revenue $109.6M $507.2M $150.2M
YoY Change -27.03% -21.81% -6.62%
Gross Profit $10.04M $54.49M $14.45M
YoY Change -30.52% -27.09% -28.08%
Gross Profit Margin 8.39% 9.7% 8.77%
Selling, General & Admin $15.10M $59.67M $17.20M
YoY Change -12.21% -17.15% -13.13%
% of Gross Profit 150.38% 109.51% 119.02%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $2.040M $8.668M $3.250M
YoY Change -37.23% -34.23% -22.43%
% of Gross Profit 20.32% 15.91% 22.49%
Operating Expenses $18.62M $68.82M $18.62M
YoY Change 0.02% -14.16% -27.75%
Operating Profit -$8.580M -$14.34M -$4.167M
YoY Change 105.9% 163.15% -26.57%
Interest Expense $5.200M $10.62M -$2.300M
YoY Change -326.09% 111.98% 109.09%
% of Operating Profit
Other Income/Expense, Net $3.474M -$2.015M -$2.226M
YoY Change -256.06% -66.95% 86.12%
Pretax Income -$5.100M -$8.476M -$6.400M
YoY Change -20.31% -60.46% -8.57%
Income Tax -$117.0K $2.283M $2.092M
% Of Pretax Income
Net Earnings -$4.989M -$18.43M -$8.485M
YoY Change -41.2% 13.19% -4.03%
Net Earnings / Revenue -4.17% -3.28% -5.15%
Basic Earnings Per Share -$0.35
Diluted Earnings Per Share -$96.15K -$0.35 -$164.1K
COMMON SHARES
Basic Shares Outstanding 52.27M shares 51.94M shares 52.11M shares
Diluted Shares Outstanding 51.94M shares

Balance Sheet

Concept 2015 Q3 2015 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $198.1M $198.1M $206.3M
YoY Change -3.97% -3.97% 164.83%
Cash & Equivalents $119.4M $119.4M $183.5M
Short-Term Investments $78.70M $78.70M $22.80M
Other Short-Term Assets $35.50M $35.50M $10.20M
YoY Change 248.04% 248.04% 4.08%
Inventory $48.74M $48.70M $65.27M
Prepaid Expenses
Receivables $131.2M $131.2M $123.9M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $413.6M $413.6M $405.8M
YoY Change 1.94% 1.92% 39.4%
LONG-TERM ASSETS
Property, Plant & Equipment $22.74M $22.70M $25.13M
YoY Change -9.51% -9.56% -26.72%
Goodwill $3.058M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $0.00 $0.00 $7.200M
YoY Change -100.0% -100.0% -10.0%
Other Assets $10.12M $10.10M $9.855M
YoY Change 2.73% 2.02% 78.27%
Total Long-Term Assets $32.86M $32.90M $45.88M
YoY Change -28.38% -28.17% -12.8%
TOTAL ASSETS
Total Short-Term Assets $413.6M $413.6M $405.8M
Total Long-Term Assets $32.86M $32.90M $45.88M
Total Assets $446.5M $446.5M $451.6M
YoY Change -1.14% -1.13% 31.41%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $120.1M $120.1M $105.0M
YoY Change 14.35% 14.38% -4.63%
Accrued Expenses $38.97M $59.40M $39.54M
YoY Change -1.45% -2.78% 13.8%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $211.4M $211.4M $198.6M
YoY Change 6.42% 6.45% 12.56%
LONG-TERM LIABILITIES
Long-Term Debt $77.90M $77.90M $73.40M
YoY Change 6.13% 6.13%
Other Long-Term Liabilities $12.68M $12.70M $8.004M
YoY Change 58.47% 58.75% -18.87%
Total Long-Term Liabilities $90.55M $90.60M $81.43M
YoY Change 11.19% 11.3% 686.04%
TOTAL LIABILITIES
Total Short-Term Liabilities $211.4M $211.4M $198.6M
Total Long-Term Liabilities $90.55M $90.60M $81.43M
Total Liabilities $301.9M $301.9M $280.0M
YoY Change 7.81% 7.82% 49.92%
SHAREHOLDERS EQUITY
Retained Earnings -$7.312B -$7.293B
YoY Change 0.25% 0.22%
Common Stock $522.0K $521.0K
YoY Change 0.19% -99.99%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $144.6M $144.6M $171.6M
YoY Change
Total Liabilities & Shareholders Equity $446.5M $446.5M $451.6M
YoY Change -1.14% -1.13% 31.41%

Cashflow Statement

Concept 2015 Q3 2015 2014 Q3
OPERATING ACTIVITIES
Net Income -$4.989M -$18.43M -$8.485M
YoY Change -41.2% 13.19% -4.03%
Depreciation, Depletion And Amortization $2.040M $8.668M $3.250M
YoY Change -37.23% -34.23% -22.43%
Cash From Operating Activities -$32.13M $19.19M $10.73M
YoY Change -399.44% 95.42% 8.27%
INVESTING ACTIVITIES
Capital Expenditures -$1.630M $8.518M -$1.350M
YoY Change 20.74% 89.75% -50.55%
Acquisitions
YoY Change
Other Investing Activities $2.330M -$66.81M -$570.0K
YoY Change -508.77% 5709.57% 714.29%
Cash From Investing Activities $700.0K -$75.33M -$1.910M
YoY Change -136.65% 1235.64% -31.79%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $113.0K
YoY Change -91.74%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 -4.560M 4.640M
YoY Change -100.0% -104.49% -23300.0%
NET CHANGE
Cash From Operating Activities -32.13M 19.19M 10.73M
Cash From Investing Activities 700.0K -75.33M -1.910M
Cash From Financing Activities 0.000 -4.560M 4.640M
Net Change In Cash -31.43M -60.70M 13.46M
YoY Change -333.51% -157.37% 89.84%
FREE CASH FLOW
Cash From Operating Activities -$32.13M $19.19M $10.73M
Capital Expenditures -$1.630M $8.518M -$1.350M
Free Cash Flow -$30.50M $10.67M $12.08M
YoY Change -352.48% 100.19% -4.43%

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15000
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80000
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628000
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21300000
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-234000
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4682000
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5316000
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4916000
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371000
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1420000
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2254000
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423000
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300000
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80000
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27300000
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6300000
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14000
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300000
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54000
CY2015 dei Document Type
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10-K
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P4Y4M28D
CY2015 dei Trading Symbol
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MLNK
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0.0302 pure
CY2015 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2015 dei Entity Central Index Key
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0000914712
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Grant Date Fair Value
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3.53
CY2015 dei Document Period End Date
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2015-07-31
CY2015 us-gaap Prior Period Reclassification Adjustment Description
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%; MARGIN-TOP: 18px"> <font style="FONT-FAMILY: Times New Roman" size="2"><i>Reclassification</i></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Certain reclassifications have been made to prior periods to conform with current reporting. On the fiscal year 2013 Statements of Operations the &#x201C;(Gains) losses, and equity in losses, of affiliates&#x201D; are classified after the Loss from continuing operations before income taxes.</font></p> </div>
CY2015 us-gaap Restructuring And Related Cost Number Of Positions Eliminated
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235 Employee
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Accelerated Filer
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P43M
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19000 shares
CY2015 dei Current Fiscal Year End Date
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--07-31
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6.61
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FY
CY2015 us-gaap Concentration Risk Credit Risk
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%; MARGIN-TOP: 18px"> <font style="FONT-FAMILY: Times New Roman" size="2"><i>Major Clients and Concentration of Credit Risk</i></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Sales to GoPro accounted for approximately 19%, 11%, and 6% of the Company&#x2019;s consolidated net revenue for the fiscal years ended July&#xA0;31, 2015, 2014 and 2013, respectively. Sales to Hewlett-Packard accounted for approximately 14%, 29%, and 29% of the Company&#x2019;s consolidated net revenue for the fiscal years ended July&#xA0;31, 2015, 2014, and 2013, respectively. GoPro accounted for approximately 14% and 8% of the Company&#x2019;s Net Accounts Receivable balance as of July&#xA0;31, 2015 and 2014, respectively. Hewlett-Packard accounted for less than 1% and approximately 17% of the Company&#x2019;s Net Accounts Receivable balance as of July&#xA0;31, 2015 and 2014, respectively. All four reportable segment report revenues associated with GoPro and Hewlett-Packard. For the fiscal year ended July&#xA0;31, 2015, 2014 and 2013, the Company&#x2019;s 10 largest clients accounted for approximately 76%, 80% and 76% of consolidated net revenue, 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.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Financial instruments which potentially subject the Company to concentrations of credit risk are cash, cash equivalents 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. Cash and cash equivalents are maintained at accredited financial institutions, and the balances associated with Funds Held for Clients are at times without and in excess of federally insured limits. The Company has never experienced any losses related to these balances and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships</font></p> </div>
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3.56
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51940000 shares
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0.0305 pure
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100000 shares
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3.25
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-0.35
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19194000
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0.0241 pure
CY2015 dei Entity Current Reporting Status
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Yes
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false
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428000 shares
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119000 shares
CY2015 us-gaap Income Loss From Continuing Operations Per Basic Share
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-0.35
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
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MODUSLINK GLOBAL SOLUTIONS INC
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%; MARGIN-TOP: 18px"> <font style="FONT-FAMILY: Times New Roman" size="2"><i>Use of Estimates</i></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">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, pension obligations 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.</font></p> </div>
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<div> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="4%" valign="top" align="left"><font style="font-family:Times New Roman" size="2"><b>(1)</b></font></td> <td align="left" valign="top"><font style="font-family:Times New Roman" size="2"><b>NATURE OF OPERATIONS</b></font></td> </tr> </table> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">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.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">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.</font></p> </div>
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The Company is required to keep the resale registration statement effective for three years following the date it is declared effective. Steel Partners also has the right, until such time as it owns less than one-third of the common stock originally issued to it under the investment agreement, to require that the Company file a prospectus supplement or amendment to cover sales of common stock through a firm commitment underwritten public offering.
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IncomeLossFromContinuingOperationsPerBasicAndDilutedShare
0.00
CY2014Q4 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
0.00
CY2014Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
1147000
CY2014Q4 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
222000
CY2014Q4 us-gaap Sales Revenue Net
SalesRevenueNet
187444000
CY2014Q4 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
8000
CY2014Q4 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
224000
CY2014Q4 us-gaap Net Income Loss
NetIncomeLoss
222000
CY2014Q4 us-gaap Gross Profit
GrossProfit
18838000
CY2014Q4 us-gaap Operating Expenses
OperatingExpenses
17691000
CY2014Q4 us-gaap Cost Of Revenue
CostOfRevenue
168606000
CY2014Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1157000
CY2015Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic And Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicAndDilutedShare
0
CY2015Q1 us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
IncomeLossFromContinuingOperationsPerBasicAndDilutedShare
-0.03
CY2015Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.03
CY2015Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
646000
CY2015Q1 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
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CY2015Q1 us-gaap Sales Revenue Net
SalesRevenueNet
148310000
CY2015Q1 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
200000
CY2015Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-1853000
CY2015Q1 us-gaap Net Income Loss
NetIncomeLoss
-1556000
CY2015Q1 us-gaap Cost Of Revenue
CostOfRevenue
131716000
CY2015Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
549000
CY2015Q1 us-gaap Gross Profit
GrossProfit
16594000
CY2015Q1 us-gaap Operating Expenses
OperatingExpenses
15948000
CY2013Q3 us-gaap Gains Losses On Sales Of Assets
GainsLossesOnSalesOfAssets
-100000
CY2013Q3 us-gaap Gain Loss On Disposition Of Assets1
GainLossOnDispositionOfAssets1
600000
CY2013Q3 us-gaap Proceeds From Sale Of Foreclosed Assets
ProceedsFromSaleOfForeclosedAssets
100000
CY2014Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic And Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicAndDilutedShare
0
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 Operating Income Loss
OperatingIncomeLoss
-4167000
CY2014Q3 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
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CY2014Q3 us-gaap Sales Revenue Net
SalesRevenueNet
164700000
CY2014Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-2226000
CY2014Q3 us-gaap Net Income Loss
NetIncomeLoss
-8485000
CY2014Q3 us-gaap Gross Profit
GrossProfit
14451000
CY2014Q3 us-gaap Operating Expenses
OperatingExpenses
18618000
CY2014Q3 us-gaap Cost Of Revenue
CostOfRevenue
150249000
CY2014Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2092000
CY2015Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic And Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicAndDilutedShare
0
CY2015Q3 us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
IncomeLossFromContinuingOperationsPerBasicAndDilutedShare
-0.10
CY2015Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.10
CY2015Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-8580000
CY2015Q3 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-4989000
CY2015Q3 us-gaap Sales Revenue Net
SalesRevenueNet
119685000
CY2015Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
3474000
CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
-4989000
CY2015Q3 us-gaap Gross Profit
GrossProfit
10041000
CY2015Q3 us-gaap Operating Expenses
OperatingExpenses
18621000
CY2015Q3 us-gaap Cost Of Revenue
CostOfRevenue
109644000
CY2015Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-117000
CY2015Q3 mlnk Trading Securities Sold
TradingSecuritiesSold
3900000

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