Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Results of Operations (Unaudited) [Abstract]

Quarterly Results of Operations (Unaudited)

Note 11 – Quarterly Results of Operations (Unaudited)

The following tables present a condensed summary of quarterly results of operations for the years ended December 31, 2012 and 2011 (in thousands, except per share data).

	Year ended December 31, 2012
	First Quarter			Second Quarter			Third Quarter			Fourth  Quarter
Revenues	$	19,000		$	19,670		$	18,475		$	23,428
Cost and expenses	$	21,320		$	20,939		$	23,132		$	21,173
Net (loss) income	$	(2,292	)	$	(1,472	)	$	(4,675	)	$	2,267
Net (loss) income per share:
Basic	$	(0.12	)	$	(0.08	)	$	(0.25	)	$	0.12
Diluted	$	(0.12	)	$	(0.08	)	$	(0.25	)	$	0.12

	Year ended December 31, 2011
	First Quarter			Second Quarter			Third Quarter		Fourth Quarter
Revenues	$	18,156		$	16,265		$	46,054	$	22,962
Cost and expenses	$	20,134		$	20,326		$	27,543	$	24,705
Net (loss) income	$	(1,894	)	$	(3,999	)	$	15,249	$	(1,937	)
Net (loss) income per share:
Basic	$	(0.10	)	$	(0.21	)	$	0.82	$	(0.10	)
Diluted	$	(0.10	)	$	(0.21	)	$	0.81	$	(0.10	)

This financial information includes several transactions, which affect the comparability of the quarterly results for the years ended December 31, 2012 and 2011. For the year ended December 31, 2012, the following transactions are included:

· Third quarter: During the third quarter of 2012, we recognized a $3.8 million charge to cost of consumer product revenues to reduce our consumer product inventory to its estimated net realizable amounts.  

For the year ended December 31, 2011, the following transactions are included:

· Third quarter: On September 19, 2011, we received a $31 million payment from Candela/Syneron as a result of the resolution of our patent infringement lawsuits against Candela/Syneron.  We recorded $29.8 million of royalty revenues, $11.1 million of costs of royalty revenues, a $6.6 million reduction to general and administrative expenses, and $0.7 million of imputed interest income.

· Fourth quarter: During the fourth quarter of 2011, we determined that we had sufficient history to be able to estimate our customer return rates and the expected warranty accrual needed on sales of our consumer product. In the fourth quarter of 2011, we recognized $3.5 million of consumer product revenues and $4.3 million of cost and expenses related to the PaloVia laser. The Consumer Product segment had a $0.7 million loss from operations during the fourth quarter.