The adoption of the new revenue recognition standard impacted the previously reported consolidated statement of operations for the three months ended June 30, 2017 as follows:

	Three Months Ended June 30, 2017
	As Previously Reported		Adoption of ASU 2014-09			As Adjusted
Net sales	$	95,063,000	$	456,000		$	95,519,000
Cost of goods sold		69,224,000		(381,000	)		68,843,000
Gross profit		25,839,000		837,000			26,676,000
Operating expenses:
General and administrative		6,187,000		-			6,187,000
Sales and marketing		3,394,000		-			3,394,000
Research and development		1,002,000		-			1,002,000
Total operating expenses		10,583,000		-			10,583,000
Operating income		15,256,000		837,000			16,093,000
Interest expense, net		3,314,000		-			3,314,000
Income before income tax expense		11,942,000		837,000			12,779,000
Income tax expense		4,316,000		312,000			4,628,000
Net income	$	7,626,000	$	525,000		$	8,151,000
Basic net income per share	$	0.41	$	0.03		$	0.44
Diluted net income per share	$	0.39	$	0.03		$	0.42

The adoption of the new revenue recognition standard impacted the previously reported consolidated balance sheet at March 31, 2018 as follows:

	March 31, 2018
	As Previously Reported			Adoption of ASU 2014-09			As Adjusted
ASSETS
Current assets:
Cash and cash equivalents	$	13,049,000		$	-		$	13,049,000
Short-term investments		2,828,000			-			2,828,000
Accounts receivable — net		15,738,000			47,436,000			63,174,000
Inventory— net		76,275,000			84,935,000			161,210,000
Inventory unreturned		7,508,000			-			7,508,000
Contract assets		-			15,614,000			15,614,000
Income tax receivable		7,796,000			-			7,796,000
Prepaid expenses and other current assets		11,491,000			-			11,491,000
Total current assets		134,685,000			147,985,000			282,670,000
Plant and equipment — net		28,322,000			-			28,322,000
Long-term core inventory — net		301,656,000			(301,656,000	)		-
Long-term core inventory deposits		5,569,000			(5,569,000	)		-
Long-term deferred income taxes		10,556,000			(239,000	)		10,317,000
Long-term contract assets		-			205,998,000			205,998,000
Goodwill		2,551,000			-			2,551,000
Intangible assets — net		3,766,000			-			3,766,000
Other assets		7,392,000			-			7,392,000
TOTAL ASSETS	$	494,497,000		$	46,519,000		$	541,016,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	73,273,000		$	-		$	73,273,000
Accrued liabilities		11,799,000			-			11,799,000
Customer finished goods returns accrual		17,805,000			-			17,805,000
Accrued core payment		16,536,000			(16,536,000	)		-
Contract liabilities		-			32,603,000			32,603,000
Revolving loan		54,000,000			-			54,000,000
Other current liabilities		4,471,000			-			4,471,000
Current portion of term loan		3,068,000			-			3,068,000
Total current liabilities		180,952,000			16,067,000			197,019,000
Term loan, less current portion		13,913,000			-			13,913,000
Long-term accrued core payment		18,473,000			(18,473,000	)		-
Long-term deferred income taxes		226,000			-			226,000
Long-term contract liabilities		-			48,183,000			48,183,000
Other liabilities		5,957,000			-			5,957,000
Total liabilities		219,521,000			45,777,000			265,298,000
Commitments and contingencies
Shareholders’ equity:
Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued		-			-			-
Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued		-			-			-
Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,893,102 shares issued and outstanding at March 31, 2018		189,000			-			189,000
Additional paid-in capital		213,609,000			-			213,609,000
Retained earnings		66,606,000			742,000			67,348,000
Accumulated other comprehensive loss		(5,428,000	)		-			(5,428,000	)
Total shareholders’ equity		274,976,000			742,000			275,718,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	494,497,000		$	46,519,000		$	541,016,000

The adoption of the new revenue recognition standard impacted the previously reported statement of cash flows for the three months ended June 30, 2017 as follows:

	Three Months Ended June 30, 2017
Cash flows from operating activities:	As Previously Reported			Adoption of ASU 2014-09			As Adjusted
Net income	$	7,626,000		$	525,000		$	8,151,000
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation		894,000			-			894,000
Amortization of intangible assets		145,000			-			145,000
Amortization and write-off of debt issuance costs		213,000			-			213,000
Amortization of interest on accrued core payments		143,000			-			143,000
Gain due to change in fair value of the warrant liability		(1,293,000	)		-			(1,293,000	)
Net provision for inventory reserves		1,286,000			-			1,286,000
Net provision for customer payment discrepancies		284,000			-			284,000
Net recovery of doubtful accounts		(9,000	)		-			(9,000	)
Deferred income taxes		(103,000	)		312,000			209,000
Share-based compensation expense		834,000			-			834,000
Loss on disposal of plant and equipment		6,000			-			6,000
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable		16,038,000			(6,705,000	)		9,333,000
Inventory		(14,942,000	)		(3,552,000	)		(18,494,000	)
Inventory unreturned		(120,000	)		-			(120,000	)
Income tax receivable		1,686,000			-			1,686,000
Prepaid expenses and other current assets		(1,265,000	)		-			(1,265,000	)
Other assets		608,000			-			608,000
Accounts payable and accrued liabilities		(5,254,000	)		-			(5,254,000	)
Customer finished goods returns accrual		(3,790,000	)		-			(3,790,000	)
Long-term core inventory		(2,878,000	)		2,878,000			-
Contract assets, net		-			293,000			293,000
Contract liabilities, net		-			3,172,000			3,172,000
Accrued core payments		(3,077,000	)		3,077,000			-
Other liabilities		2,324,000			-			2,324,000
Net cash used in operating activities		(644,000	)		-			(644,000	)
Cash flows from investing activities:
Purchase of plant and equipment		(597,000	)		-			(597,000	)
Change in short-term investments		(173,000	)		-			(173,000	)
Net cash used in investing activities		(770,000	)		-			(770,000	)
Cash flows from financing activities:
Borrowings under revolving loan		17,000,000			-			17,000,000
Repayments of revolving loan		(13,000,000	)		-			(13,000,000	)
Repayments of term loan		(782,000	)		-			(782,000	)
Payments for debt issuance costs		(398,000	)		-			(398,000	)
Payments on capital lease obligations		(190,000	)		-			(190,000	)
Exercise of stock options		295,000			-			295,000
Cash used to net share settle equity awards		(488,000	)		-			(488,000	)
Repurchase of common stock, including fees		(1,979,000	)		-			(1,979,000	)
Net cash provided by financing activities		458,000			-			458,000
Effect of exchange rate changes on cash and cash equivalents		47,000			-			47,000
Net decrease in cash and cash equivalents		(909,000	)		-			(909,000	)
Cash and cash equivalents — Beginning of period		9,029,000			-			9,029,000
Cash and cash equivalents — End of period	$	8,120,000		$	-		$	8,120,000