Selected Consolidated Financial Data

12 Months Ended

Dec. 31, 2012

Selected Consolidated Financial Data

18. Selected Consolidated Financial Data

Quarterly Financial Information (unaudited)

The Company’s interim financial statements are prepared on a quarterly basis ending on the Friday closest to the end of the calendar quarter, with the exception of the fourth quarter which always ends on December 31.

During fourth quarter of 2012, based on an accumulation of positive evidence such as cumulative profits over the prior three years and projections for future growth, the Company determined that it is more likely than not that the benefits of our deferred tax assets will be realized. Accordingly, a deferred tax valuation allowance release of $15.3 million was recorded as an income tax benefit during the fourth quarter of 2012.

In addition, the Company sold certain assets and liabilities of the Lasers Systems business for $7.0 million, subject to working capital adjustments, and recorded a $2.3 million gain on the sale.

The following tables reflect the Company’s unaudited condensed consolidated statements of operations (in thousands except per share data):

	Three Months Ended
	December 31, 2012			September 28, 2012			June 29, 2012			March 30, 2012
Sales	$	66,413		$	69,520		$	70,379		$	65,186
Cost of goods sold		39,138			40,667			39,712			37,505
Gross profit		27,275			28,853			30,667			27,681
Operating expenses		23,978			25,061			25,570			24,860
Income from operations		3,297			3,792			5,097			2,821
Interest income (expense) and other income (expense), net		(772	)		(1,174	)		(13	)		(1,514	)
Income from continuing operations before income taxes		2,525			2,618			5,084			1,307
Income tax provision (benefit)		(12,350	)		563			617			230
Income from continuing operations		14,875			2,055			4,467			1,077
Income (loss) from discontinued operations, net of tax.		(1,317	)		(4,570	)		414			322
Gain on disposal of discontinued operations, net of tax		2,255			—			—			—
Consolidated net income (loss)		15,813			(2,515	)		4,881			1,399
Net (income) loss attributable to noncontrolling interest		5			(19	)		(8	)		(18	)
Net income (loss) attributable to GSI Group Inc	$	15,818		$	(2,534	)	$	4,873		$	1,381
Earnings from continuing operations per common share:
Basic	$	0.44		$	0.06		$	0.13		$	0.03
Diluted	$	0.44		$	0.06		$	0.13		$	0.03
Earnings (loss) from discontinued operations per common share:
Basic	$	0.03		$	(0.13	)	$	0.01		$	0.01
Diluted	$	0.03		$	(0.13	)	$	0.01		$	0.01
Net income (loss) per common share:
Basic	$	0.47		$	(0.07	)	$	0.14		$	0.04
Diluted	$	0.47		$	(0.07	)	$	0.14		$	0.04

	Three Months Ended
	December 31, 2011			September 30, 2011			July1, 2011			April 1, 2011
Sales	$	65,480		$	78,704		$	82,609		$	77,503
Cost of goods sold		37,707			44,119			45,609			43,761
Gross profit		27,773			34,585			37,000			33,742
Operating expenses		23,988			23,761			25,537			23,966
Income from operations		3,785			10,824			11,463			9,776
Interest income (expense) and other income (expense), net		(2,507	)		(2,646	)		(3,168	)		(3,307	)
Income from continuing operations before income taxes		1,278			8,178			8,295			6,469
Income tax provision (benefit)		(1,326	)		851			1,363			1,656
Income from continuing operations		2,604			7,327			6,932			4,813
Income from discontinued operations, net of tax		1,244			1,489			3,143			1,449
Consolidated net income		3,848			8,816			10,075			6,262
Net (income) loss attributable to noncontrolling interest		7			29			(9	)		(55	)
Net income attributable to GSI Group Inc	$	3,855		$	8,845		$	10,066		$	6,207
Earnings from continuing operations per common share:
Basic	$	0.08		$	0.22		$	0.21		$	0.14
Diluted	$	0.08		$	0.22		$	0.21		$	0.14
Earnings from discontinued operations per common share:
Basic	$	0.04		$	0.04		$	0.09		$	0.05
Diluted	$	0.03		$	0.04		$	0.09		$	0.05
Net income per common share:
Basic	$	0.12		$	0.26		$	0.30		$	0.19
Diluted	$	0.11		$	0.26		$	0.30		$	0.19