XML 54 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
ACQUISITION OF IKANOS and eMDT
 9 Months Ended
Sep. 28, 2013
Business Combinations [Abstract]  
ACQUISITION OF IKANOS
ACQUISITION OF eMDT AND IKANOS
In July 2012, the Company commenced consolidating Ikanos.
In April 2013, the Company acquired 51% of the outstanding stock of eMDT, a private company, for $400,000. The assets, liabilities and results of operations of eMDT have been consolidated within the Company's financial statements since April 17, 2013. The Company has an option to acquire an additional 25% of the Company for $200,000. In connection with the acquisition, the Company has preliminarily allocated excess purchase price in the amount of approximately $400,000 to goodwill.  The Company's purchase accounting is preliminary as the Company is finalizing the value of assets and liabilities acquired including its identification of potential intangible assets. 
The Company's goodwill balance is as follows:
 
 
Balance, December 29, 2012
$
684,789

Acquisition of eMDT
395,713

Balance, September 28, 2013
$
1,080,502


The unaudited pro forma financial results for the nine month periods ended September 28, 2013 and September 29, 2012, and the three month period ended September 29, 2012 combine the unaudited historical results of the Company along with the unaudited historical results of e-MDT. The unaudited pro forma financial results for the nine month period ended September 29, 2012 also include the unaudited historical results of Ikanos. The results include the effects of unaudited pro forma adjustments as if Ikanos and e-MDT were acquired on January 1, 2012 (the first day of the Company's fiscal year 2012). There were no material nonrecurring pro forma adjustments in the calculation of revenue or earnings. The pro forma financial results presented below do not include any anticipated synergies or other expected benefits of the acquisition. These results are presented for informational purposes only and are not necessarily indicative of future operations.
 
Nine Months
Ended
September 28, 2013
Nine Months
Ended
September 29, 2012
Three Months
Ended
September 29, 2012
Revenues
$
17,553,000

$
27,429,000

$
8,658,000

Net income (loss)
$
4,990,000

$
(14,968,000
)
$
(6,580,000
)