On December 31, 2011, Gaiam converted its RSOL Class B common stock to Class A common stock that changed the GAAP accounting treatment for its approximate 38% ownership in RSOL from a consolidated basis to an equity method (“deconsolidated”). As a result, for 2012 Gaiam’s interest in RSOL’s net results are reflected as a single line in Gaiam’s financial statements, whereas for 2011 RSOL’s financial position and results of operations are consolidated into each line of Gaiam’s financial statements. The year-over-year financial comparisons below are stated as if RSOL had been deconsolidated as of January 1, 2011.Third quarter 2012 gross profit was $24.1 million, or 56.0% of net revenue, compared to $24.1 million, or 57.6% of net revenue, during the comparable quarter last year. The decrease in gross margin primarily reflects reduced net revenues in the typically higher margin direct response television marketing business, partially offset by the 100% margin (net fee revenue) of the Gaiam Vivendi Entertainment business.
Gaiam Reports 2012 Third Quarter Results
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