SELECTED QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

2013	1st			2nd			3rd			4th			Year
	(in thousands, except per share information)
Revenue	$	34,758		$	40,123		$	33,311		$	28,561		$	136,753
Gross profit (loss)	1,424			707			(1,267		)	(893		)	(29		)
Inventory write-down	—			—			(1,900		)	(325		)	(2,225		)
Impairment loss, intangibles	—			—			—			(3,489		)	(3,489		)
Loss before other income (expense)	(435		)	(1,369		)	(2,987		)	(6,459		)	(11,250		)
Net loss	(115		)	(1,238		)	(2,191		)	(10,272		)	(13,816		)
Basic loss per share	(0.02		)	(0.18		)	(0.31		)	(1.45		)	(1.96		)
Diluted loss per share	(0.02		)	(0.18		)	(0.31		)	(1.45		)	(1.96		)

We have reclassified certain income statement items within these Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements for the prior years and prior quarters in order to be comparable with the current presentation. These reclassifications had no effect on previously reported income (loss), although gross profit was affected.

In the third quarter of 2013, a continuing reduction in market demand and prices for stainless steel occurred, which led to a reduction in stainless steel sales volumes and average stainless steel selling prices, resulting in ISA recording a net realizable value (“NRV”) inventory write-down of $1.9 million at September 30, 2013. Based on the final sale price of the remaining inventory in the fourth quarter of 2013 and the first quarter of 2014, we recorded an additional NRV inventory write-down of $325.0 thousand at December 31, 2013. See Note 3 - "Goodwill and Intangibles." In the fourth quarter of 2013, management determined to discontinue the production of stainless steel blends. With this change in strategy, management determined the value of the intangible assets related to the stainless steel blend business was impaired. We recorded an impairment loss of approximately $3.5 million for the remaining value of these intangible assets in that quarter.

An inventory write-down was not necessary in 2012; however, based on an outside valuation, we recorded an impairment loss for the carrying value of goodwill of $6.8 million. See Note 3 - "Goodwill and Intangible Assets" for additional information regarding our decision to discontinue the production of stainless steel blends and the impairment losses recorded in 2013 and 2012.

2012	1st		2nd			3rd			4th			Year
	(in thousands, except per share information)
Revenue	$	61,678	$	49,852		$	45,729		$	36,973		$	194,232
Gross profit	2,760		625			1,324			1,247			5,956
Impairment loss, goodwill	—		—			—			(6,840		)	(6,840		)
Income (loss) before other income (expense)	513		(1,358		)	(573		)	(7,436		)	(8,854		)
Net income (loss)	9		(1,239		)	(886		)	(4,504		)	(6,620		)
Basic earnings (loss) per share	—		(0.18		)	(0.13		)	(0.65		)	(0.95		)
Diluted earnings (loss) per share	—		(0.18		)	(0.13		)	(0.65		)	(0.95		)

2011	1st		2nd		3rd			4th			Year
	(in thousands, except per share information)
Revenue	$	106,401	$	65,062	$	55,766		$	49,984		$	277,213
Gross profit (loss)	7,214		3,458		(5,250		)	(687		)	4,735
Inventory write-down	—		—		(3,441		)	—			(3,441		)
Income (loss) before other income (expense)	4,299		1,739		(7,136		)	(2,892		)	(3,990		)
Net income (loss)	2,167		313		(4,536		)	(1,825		)	(3,881		)
Basic earnings (loss) per share	0.31		0.05		(0.67		)	(0.26		)	(0.56		)
Diluted earnings (loss) per share	0.31		0.05		(0.67		)	(0.26		)	(0.56		)

Reduced metal prices caused us to reduce our inventory balance approximately $3.4 million due to a lower of cost or market adjustment at the end of the third quarter 2011.