Note Regarding the Use of Non-GAAP Financial Measures:

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the Company's earnings release contains Non-GAAP financial measures that exclude share-based compensation and the requirements of Topic 718 of the FASB Accounting Standards Codification TM, “Compensation-Stock Compensation”. The Non-GAAP financial measures also exclude impairment and restructuring charges, the amortization of intangible assets related to previous acquisitions, various tax charges including the valuation allowance against deferred tax assets, the gain or loss on foreign currency due to the non-cash nature of the charge, and various other adjustments. The Non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The Company has provided reconciliations of the Non-GAAP financial measures to the most directly comparable GAAP financial measures.
 
Planar Systems, Inc.Consolidated Statement of Operations(In thousands, except per share amounts)(unaudited)
 
  Three months ended
Dec. 30, 2011   Dec. 31, 2010
 
Sales $ 47,708 $ 41,763
Cost of Sales   37,197       30,105  
Gross Profit 10,511 11,658
 
Operating Expenses:
Research and development, net 2,719 2,764
Sales and marketing 6,937 5,495
General and administrative 4,079 4,228
Amortization of intangible assets   175       512  
Total Operating Expenses 13,910 12,999
 
Income (Loss) from operations (3,399 ) (1,341 )
 
Non-operating income (expense):
Interest, net - (2 )
Foreign exchange, net 426 72
Other, net   42       68  
Net non-operating income (expense) 468 138
 
Income (loss) before taxes (2,931 ) (1,203 )
Provision (benefit) for income taxes   265       100  
Net Income (loss) $ (3,196 )   $ (1,303 )
 
Net Income (loss) per share - basic ($0.16 ) ($0.07 )
Net Income (loss) per share - diluted ($0.16 ) ($0.07 )
 
Weighted average shares outstanding - basic 19,822 19,226
Weighted average shares outstanding - diluted 19,822 19,226
 
 
Planar Systems, Inc.Consolidated Balance Sheets(In thousands)(unaudited)
 
  Dec. 30, 2011   Sept. 30, 2010
ASSETS
Cash $ 20,271 $ 22,231
Accounts receivable, net 22,453 25,881
Inventories 43,828 42,967
Other current assets   4,912     4,587  
Total current assets 91,464 95,666
 
Property, plant and equipment, net 3,853 4,265
Intangible assets, net 1,086 1,261
Other assets   4,427     4,110  
$ 100,830   $ 105,302  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable 17,582 15,549
Deferred revenue 1,561 2,339
Other current liabilities   16,807     18,485  
Total current liabilities 35,950 36,373
 
Other long-term liabilities   6,464     6,270  
Total liabilities 42,414 42,643
 
Common stock 183,107 182,826
Retained earnings (deficit) (121,508 ) (118,096 )
Accumulated other comprehensive loss   (3,183 )   (2,071 )
Total shareholders' equity   58,416     62,659  
$ 100,830   $ 105,302  
 
 
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, unaudited)
 
  For the three months ended
Dec. 30, 2011   Dec. 31, 2010
Gross Profit:
GAAP Gross Profit 10,511 11,658
 
Share-based Compensation 13 17
Total Non-GAAP adjustments 13 17
   
NON-GAAP GROSS PROFIT 10,524 11,675
   
NON-GAAP GROSS PROFIT PERCENTAGE 22.1% 28.0%
 
Research and Development:
GAAP research and development expense 2,719 2,764
 
Share-based Compensation (39) (51)
Total Non-GAAP adjustments (39) (51)
   
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSE 2,680 2,713
 
Sales and Marketing:
GAAP sales and marketing expense 6,937 5,495
 
Share-based Compensation (25) (119)
Total Non-GAAP adjustments (25) (119)
   
NON-GAAP SALES AND MARKETING EXPENSE 6,912 5,376
 
General and Administrative:
GAAP General and Administrative Expense 4,079 4,228
 
Share-based Compensation (205) (277)
Total Non-GAAP adjustments (205) (277)
   
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSE 3,874 3,951
 
Operating Expenses:
GAAP Total Operating Expenses 13,910 12,999
 
Share-based Compensation (269) (447)
Amortization of intangible assets (175) (512)
Total Non-GAAP adjustments (444) (959)
   
NON-GAAP TOTAL OPERATING EXPENSES 13,466 12,040
 
Income (Loss) from Operations:
GAAP income (loss) from operations (3,399) (1,341)
 
Share-based Compensation 282 464
Amortization of intangible assets 175 512
Total Non-GAAP adjustments 457 976
   
NON-GAAP INCOME (LOSS) FROM OPERATIONS (2,942) (365)
 
Income (Loss) before taxes & EBITDA:
GAAP income (loss) before taxes (2,931) (1,203)
 
Share-based Compensation 282 464
Amortization of intangible assets 175 512
Foreign Exchange, net (426) (72)
Total Non-GAAP adjustments 31 904
   
NON-GAAP INCOME (LOSS) BEFORE TAXES (2,900) (299)
Depreciation 564 553
NON-GAAP EBITDA (2,336) 254
 
Net Income (Loss):
GAAP Net Income (loss) (3,196) (1,303)
 
Share-based Compensation 282 464
Amortization of intangible assets 175 512
Foreign Exchange, net (426) (72)
Income tax effect of reconciling items 1,353 212
Total Non-GAAP adjustments 1,384 1,116
   
NON-GAAP NET INCOME (LOSS)

(1,812)
(187)
 
GAAP weighted average shares outstanding--basic 19,822 19,226
NON-GAAP weighted average shares outstanding--diluted 19,822 19,226
 
GAAP Net Income (Loss) per share - basic ($0.16) ($0.07)
Non-GAAP adjustments detailed above 0.07 0.06
NON-GAAP NET INCOME PER SHARE (basic) ($0.09) ($0.01)
 
GAAP Net Income (Loss) per share - diluted ($0.16) ($0.07)
Non-GAAP adjustments detailed above 0.07 0.06
NON-GAAP NET INCOME PER SHARE (diluted) ($0.09) ($0.01)
 

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