"On the Graphics side of the business, we see improving conditions as programs begin to release this fall indicating a new level of spend in general. We are aggressively pursuing new accounts to supplement our established customer base. This business returned to profitability during the fourth quarter and is continuing into 2014. We expect sales for the first quarter to be up over 25% compared to the same period of fiscal 2013.
"The Board of Directors accepted management's recommendation to set the annual fiscal 2014 cash dividend rate at $0.24 per share, unchanged from the prior fiscal year. We have paid regular cash dividends since fiscal 1989, and consider them to be an important component of shareholder returns.
"Overall we are encouraged by our strong start to fiscal 2014. We believe our investments to date, while pressuring fiscal 2013, will improve our results in fiscal 2014 and beyond. We finished fiscal 2013 with a healthy debt-free balance sheet and strong financial position. Our balance sheet, combined with our positive cash flow, is expected to fund our working capital, capital expenditures, product development, and cash dividend requirements."
Non-GAAP Financial MeasuresThis press release includes adjustments to GAAP net income for the three and twelve month periods ended June 30, 2013 and 2012. Adjusted net income and earnings per share, which excludes the impact of goodwill impairment, reversal of a contingent Earn-Out liability, and acquisition deal costs and related expenses, are non-GAAP financial measures. We believe that it is useful as a supplemental measure in assessing the operating performance of our business. This measure is used by our management, including our chief operating decision maker, to evaluate business results. We exclude these non-recurring items because they are not representative of the ongoing results of operations of our business. Below is a reconciliation of this non-GAAP measurement to the net income reported for the periods indicated.
|(in thousands, except per share data; unaudited)||Fourth Quarter|
|FY 2013||EPS||FY 2012||EPS|
|Reconciliation of net income to adjusted net income:|
|Net income and earnings per share as reported||$812||$0.03||$1,505||$0.06|
|Adjustment for the reversal of a contingent Earn-Out liability, inclusive of the income tax effect||(346)||(0.01)||--||--|
|Adjustment for the income tax effect related to goodwill impairment||527||0.02||--||--|
|Adjusted net income and earnings per share||$993||$0.04||$1,505||$0.06|
|(in thousands, except per share data; unaudited)||Full Year|
|FY 2013||EPS||FY 2012||EPS|
|Reconciliation of net income (loss) to adjusted net income:|
|Net income (loss) and earnings (loss) per share as reported||$(123)||$(0.01)||$3,224||$0.13|
|Adjustment for the reversal of a contingent Earn-Out liability, inclusive of the income tax effect||(897)||(0.04)||--||--|
|Adjustment for the acquisition deal costs and related expenses, inclusive of the income tax effect||--||--||373||0.02|
|Adjustment for goodwill impairment, inclusive of the income tax effect||2,413||0.10||258||0.01|
|Adjusted net income and earnings per share||$1,393||$0.06||$3,855||$0.16|