QUARTERLY INFORMATION (unaudited)

During the preparation of its fiscal 2014 consolidated financial statements, the Company identified an accounting error related to the January 2014 implementation of our global enterprise resource planning system which resulted in the Company recording lower cost of goods sold during the third quarter of 2014. The Company has evaluated the impact of this error and has concluded that this error was not material to any previously issued financial statements. However, the Company has elected to revise this error in the Annual Report on Form 10-K that will be filed with SEC for the period ending May 31, 2014. Additionally, the Company has reflected the revision for these errors in the quarterly financial information tables presented below.

The following table summarizes the impact of immaterial errors in the Company's consolidated statements of operations, consolidated balance sheets and consolidated statements of cash flows for the period ended February 28, 2014:



(In thousands, except per share data)	As Previously Reported			Adjustments		As Revised
Quarter Ended February 28, 2014
Consolidated Statement of Operations
Cost of sales	$	42,560		717		43,277
Gross profit	45,635			(717	)	44,918
Operating income	7,569			(717	)	6,852
Income before income tax provision	5,584			(717	)	4,867
Income tax expense	476			(300	)	176
Net income	5,108			(417	)	4,691
Income per common share	0.15			(0.01	)	0.14
Income per diluted share	0.14			(0.01	)	0.13
As of February 28, 2014
Consolidated Balance Sheets
Inventory, net	59,834			(717	)	59,117
Income tax payable	879			(300	)	579
Nine Months Ended February 28, 2014
Consolidated Statement of Cash Flows
Net income	5,108			(417	)	4,691
Change in inventories	(4,225		)	717		(3,508		)
Accounts payable, accrued and other liabilities	2,699			(300	)	2,399
Net cash provided by operating activities	$	15,174		—		$	15,174

Quarterly results of operations during the fiscal years ended 2014 and 2013 are as follows:



	2014
	First quarter			Second quarter			Third quarter		Fourth quarter
	(in thousands, except per share data)
Net sales	$	83,579		$	88,616		$	88,195	$	94,065
Gross profit	42,482			44,930			44,918		47,531
Net income (loss)	(426		)	(99		)	4,691		(1,078		)
Earnings per common share
Basic	(0.01		)	—			0.14		(0.03		)
Diluted	(0.01		)	—			0.13		(0.03		)



	2013
	First quarter			Second quarter		Third quarter			Fourth quarter
	(in thousands, except per share data)
Net sales	$	83,406		$	87,007	$	81,571		$	90,042
Gross profit	39,459			44,088		41,201			44,241
Net income (loss)	(721		)	1,969		(992		)	(868		)
Earnings per common share
Basic	(0.02		)	0.06		(0.03		)	(0.03		)
Diluted	(0.02		)	0.06		(0.03		)	(0.03		)

The data in the schedules above has been intentionally rounded to the nearest thousand and therefore the quarterly amounts may not sum to the full year amounts.

The first quarter results of fiscal 2014 included in “Acquisition, restructuring and other items, net”, $1.2 million in Navilyst related acquisition costs and $0.3 million in Clinical Devices related acquisition costs. The second quarter of fiscal 2014 included $1.6 million in Navilyst related acquisition costs and $0.8 million in litigation related costs. The third quarter of fiscal 2014 included $1.4 million in Navilyst related acquisition costs and $1.0 million in consolidation charges. The fourth quarter of fiscal 2014 included $1.3 million in Navilyst related acquisition costs, $1.1 million in litigation charges and $0.4 million in consolidation charges.

The first quarter results for fiscal 2013 included in “Acquisition, restructuring and other items, net”, $2.2 million in transaction and related costs of the Navilyst acquisition and $337 thousand in costs associated with the decision to close our UK facility. The 2013 second quarter results included $1.7 million for Navilyst transaction costs, $476 thousand for the UK closure costs, $425 thousand in litigation costs and $325 thousand in costs related to the Vortex acquisition, offset by $770 thousand gain on sale of a product line. The 2013 third quarter results included $1.6 million in costs related to the discontinuance of a product line, $1.3 million in Navilyst transaction costs, $920 thousand for the UK closure costs, $901 thousand in litigation costs and $414 thousand in transaction costs of the Vortex and Microsulis acquisitions. The 2013 fourth quarter results included $2.1 million for Navilyst transaction costs, $717 thousand in UK closure costs, and $580 thousand in litigation costs.