The operating results for any quarter should not be considered indicative of results for any future period.


	For the Three Months Ended
	2011												2012
	March 31			June 30			September 30			December 31			March 31			June 30			September 30			December 31
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
Revenues	$	17,612		$	19,436		$	19,253		$	17,724		$	26,509		$	29,264		$	26,099		$	26,311
Cost of revenues:
Platform commissions, royalties and other		4,655			4,877			5,571			5,126			7,522			7,780			6,946			7,382
Impairment of prepaid royalties and guarantees		371			—			160			—			—			—			—			—
Amortization of intangible assets		817			703	(a)		2,375			1,552			753			932			1,025			1,073

Total cost of revenues		5,843			5,580			8,106			6,678			8,275			8,712			7,971			8,455

Gross profit		11,769			13,856			11,147			11,046			18,234			20,552			18,128			17,856

Operating expenses:
Research and development		7,166			8,439	(b)		10,808	(b)		12,660	(d)		15,033			15,697	(d)		9,979			13,566
Sales and marketing		3,757			3,344			3,576			3,930			4,375			4,701			5,545			6,272
General and administrative		2,934			3,506			3,748			3,814			4,366			4,556			2,466			3,356
Amortization of intangible assets		—			—			330			495			495			495			495			495
Impairment of goodwill		—			—			—			—			—			—	(f)		3,613			—
Restructuring charge		490			147			—			(92	)		—			320			213			838

Total operating expenses		14,347			15,436			18,462			20,807			24,269			25,769			22,311			24,527

Income (loss) from operations		(2,578	)		(1,580	)		(7,315	)		(9,761	)		(6,035	)		(5,217	)		(4,183	)		(6,671	)
Interest and other income (expense), net		180			329			344			(106	)		(366	)		210			(455	)		264

Loss before income taxes and
Loss before income taxes		(2,398	)		(1,251	)		(6,971	)		(9,867	)		(6,401	)		(5,007	)		(4,638	)		(6,407	)
Income tax benefit (provision)		(774	)		(501	)(c)		813			(152	)		(440	)(e)		2,019	(e)		1,075			(660	)

Net loss	$	(3,172	)	$	(1,752	)	$	(6,158	)	$	(10,019	)	$	(6,841	)	$	(2,988	)	$	(3,563	)	$	(7,067	)

Net loss per share — basic and diluted	$	(0.06	)	$	(0.03	)	$	(0.10	)	$	(0.16	)	$	(0.11	)	$	(0.05	)	$	(0.06	)	$	(0.11	)

(a)	Amortization of intangible assets of $2,375 in the third quarter of 2011 was driven by increased amortization expense associated with intangible assets acquired in the acquisitions of Griptonite and Blammo.

(b)	Research and development expense of $10,808 and $12,660 in the third and fourth quarters of 2011 were related to additional personnel and facility costs associated with the acquisitions of Griptonite and Blammo.

(c)	The income tax benefit of $813 in the third quarter of 2011 was due primarily to the release of the valuation allowance associated with the acquisition of Griptonite.

(d)	Changes in the research and development expense from $15,033 in the first quarter of 2012 and $9,979 in the third quarter of 2012 was due primarily to changes in the fair market value of contingent consideration issued to employees who are former shareholders of Blammo.

(e)

The income tax benefit of $2,019 in the second quarter of 2012 was due primarily to the release of uncertain tax positions in certain foreign jurisdictions due to the expiration of the statute of limitations. The income tax benefit of $1,075 in the third quarter of 2012 was due primarily to the release of the GameSpy valuation allowance upon acquisition and changes in pre-tax income in certain foreign entities.

(f)	The goodwill impairment charge of $3,613 in the third quarter of 2012 was due to a decline in the estimated fair value of the APAC reporting unit attributable to an accelerated decline in the local feature phone business and the recent restructuring of the Company’s operations in the region.