EX-12.0 2 ex120computationofratioofe.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX 12.0 Computation of Ratio of Earnings to Fixed Charges 12.31.2014


Exhibit 12
Computation of Ratio of Earnings to Fixed Charges

 
For the years ended December 31,
 
2014
 
2013
 
2012
 
2011
 
2010
Income (loss) before taxes and discontinued operations
$
(25,089
)
 
$
(34,449
)
 
$
(40,884
)
 
$
(12,661
)
 
$
(854
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense (A)
1,242

 
1,220

 
1,722

 
1,870

 
2,035

Rentals:
 
 
 
 
 
 
 
 
 
Buildings, net of sublease income – 6.0% (B)
218

 
245

 
324

 
288

 
494

Total fixed charges
1,460

 
1,465

 
2,046

 
2,158

 
2,529

 
 
 
 
 
 
 
 
 
 
Income (loss) before taxes and discontinued operations, plus fixed charges
(23,629
)
 
(32,984
)
 
(38,838
)
 
(10,503
)
 
1,675

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (C)
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Deficit
$
(25,089
)
 
$
(34,449
)
 
$
(40,884
)
 
$
(12,661
)
 
$
(854
)

A
Amortization of the discount on the Company’s outstanding convertible subordinated notes is included in Interest expense.
B
Management believes that 6% is a reasonable approximation of the interest factor on rentals. Building and office rental fees that were included in restructuring charges were excluded from fixed charges.
C
The earnings to fixed charges ratio was less than 1:1 due to the losses reported for the years ended December 31, 2014, 2013, 2012, 2011, and 2010.