Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Consolidated Financial Statement Details

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Note 3 - Consolidated Financial Statement Details
 9 Months Ended
Sep. 30, 2012
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
3.        Consolidated financial statement details

The following consolidated financial statement details are presented as of the period ended for the consolidated balance sheets and for the periods ended for each of the consolidated statements of operations and comprehensive income.

Consolidated balance sheets

Accounts receivable – net:

   
September 30,
2012
   
January 1,
2012
 
Accounts receivable
  $ 42,203     $ 37,959  
Allowance for doubtful accounts
    (188 )     (55 )
Accounts receivable—net
  $ 42,015     $ 37,904  

Inventories:

   
September 30,
2012
   
January 1,
2012
 
Raw materials
  $ 34,287     $ 37,438  
Work in process
    14,977       9,716  
Finished goods
    5,611       4,047  
Parts
    1,429       1,447  
Inventories
  $ 56,304     $ 52,648  

Property, plant and equipment – net:

   
September 30,
2012
   
January 1,
2012
 
Cost:
           
Land
  $ 1,648     $ 1,648  
Buildings
    9,878       9,878  
Machinery and equipment (a)
    39,254       35,743  
Office furniture and equipment
    2,728       2,417  
Computer hardware and software (b)
    10,066       9,365  
Leasehold improvements (c)
    3,654       3,275  
    $ 67,228     $ 62,326  
Less accumulated depreciation:
               
Land
    —       —  
Buildings
    (6,177 )     (5,795 )
Machinery and equipment (a)
    (28,395 )     (26,833 )
Office furniture and equipment
    (2,383 )     (2,350 )
Computer hardware and software (b)
    (9,254 )     (9,001 )
Leasehold improvements (c)
    (3,072 )     (2,992 )
      (49,281 )     (46,971 )
Property, plant and equipment—net
  $ 17,947     $ 15,355  

 
(a) 
Included within machinery and equipment were assets under capital leases with costs of $5,114 and $5,569 as at September 30, 2012 and January 1, 2012, respectively and associated accumulated depreciation of $884 and $1,088 as of September 30, 2012 and January 1, 2012, respectively. The related depreciation expense for the three months ended September 30, 2012 and October 2, 2011 were $150 and $128, respectively. Related depreciation expense for the nine months ended September 30, 2012 and October 2, 2011 was $443 and $483, respectively. During the three and nine month periods ended September 30, 2012, the Company assumed ownership of machinery and equipment formerly under capital lease with cost of $1,004 and accumulated depreciation of $660, upon conclusion of the capital lease terms. Nominal consideration was paid for these assets. These assets were reclassified to owned machinery and equipment on a prospective basis.

 
(b) 
Included within computer hardware and software were assets under capital leases with costs of $400 and associated accumulated depreciation of $89 as at September 30, 2012.  There were no computer hardware and software under capital leases as at January 1, 2012.  The related depreciation expense for the three months ended September 30, 2012 and October 2, 2011 was $33 and $nil, respectively. Related depreciation for the nine months ended September 30, 2012 and October 2, 2011 was $89 and $43, respectively.

 
(c) 
Included within leasehold improvements were assets under capital leases with costs of $73 and associated accumulated depreciation of $5 as at September 30, 2012.  There were no leasehold improvements under capital leases as at January 1, 2012.  The related depreciation expense for the three and nine months ended September 30, 2012 was $2 and $5, respectively.

Deferred financing costs:

   
September 30,
2012
   
January 1,
2012
 
Deferred financing costs
  $ 1,356     $ 1,356  
Accumulated amortization
    (743 )     (440 )
    $ 613     $ 916  

Accrued liabilities:

   
September 30,
2012
   
January 1,
2012
 
Customer related
  $ 910     $ 1,892  
Payroll
    3,031       3,169  
Professional services
    497       485  
Vendor related
    393       722  
Interest and financing related
    139       127  
Restructuring (note 9)
    413       915  
Acquisition related
    1,008       2,400  
Other
    625       454  
Accrued liabilities
  $ 7,016     $ 10,164  

Consolidated statements of operations and comprehensive income

Interest expense:

   
Three months ended
   
Nine months ended
 
   
September 30,
2012
   
October 2,
2011
   
September 30,
2012
   
October 2,
2011
 
Long-term debt
  $ 455     $ 280     $ 1,343     $ 845  
Obligations under capital leases
    71       46       188       136  
Interest expense
  $ 526     $ 326     $ 1,531     $ 981