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<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;"><font style="font-family: Times New Roman''; font-size: 10pt; font-weight: bold;">3.</font><font style="font-family: Times New Roman; font-size: 5pt;">            </font><font style="font-family: Times New Roman''; font-size: 10pt; font-weight: bold;">Net Income (Loss) Per Share</font></div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">All common stock information regarding the prior year included in this note have been adjusted to reflect the reverse stock split that took effect on December 21, 2012.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="6" style="border-bottom: #000000 2px solid; width: 23.19%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Three Months Ended June 30,</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="6" style="border-bottom: #000000 2px solid; width: 23.21%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Six Months Ended June 30,</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 9.93%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 9.93%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 9.93%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 9.94%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.94%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Numerator:</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.94%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Net income (loss)</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">332</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">490</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">59</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(657</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Denominator:</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.28%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Weighted-average shares of common stock oustanding</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,296</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,094</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,261</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.28%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">18,036</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Dilutive effect of employee stock options and restricted stock awards</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">195</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">99</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">215</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">-</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Weighted-average shares for diluted net income per share</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,491</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,193</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,476</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">18,036</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.28%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Basic net income (loss) per share</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.02</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.03</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.00</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(0.04</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Diluted net income (loss) per share</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.02</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.03</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.00</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(0.04</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr></table><div><br /></div><div>  <div style="text-align: justify; text-indent: 27pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">The calculation of diluted income per share excludes some shares of common stock issuable upon exercise of employee stock options because their inclusion in the calculation would have been anti-dilutive. There were no shares excluded from the calculation related to non-vested shares of common stock issuable upon exercise of restricted stock units as of June 30, 2013 and 2012.</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt;">  </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Three Months Ended June 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Six Months Ended June 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt;">  </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">2012</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">2012</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td></tr><tr><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;">  </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td></tr><tr><td align="left" valign="bottom"><div style="text-align: left; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">Common stock equivalents excluded from calculation</div></td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" style="padding-bottom: 4px; width: 52%;"><div style="text-align: left; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">   because effect would have been anti-dilutive</div></td><td align="left" valign="bottom" style="padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: left; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: right; width: 9%; font-family: times new roman; font-size: 10pt;">2,287</td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td align="right" valign="bottom" style="padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: left; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: right; width: 9%; font-family: times new roman; font-size: 10pt;">2,240</td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td align="right" valign="bottom" style="padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: left; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: right; width: 9%; font-family: times new roman; font-size: 10pt;">2,162</td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td align="right" valign="bottom" style="padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: left; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: right; width: 9%; font-family: times new roman; font-size: 10pt;">2,335</td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td></tr></table></div><br /></div></div>
-199000
-311000
2113000
2199000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: top; font-weight: bold;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">4.</div></td><td style="width: 92.54%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Fair Value of Financial Instruments</div></td></tr></table><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">In accordance with FASB ASC 820-10, <font style="font-style: italic; font-family: Times New Roman''; font-size: 10pt;">Fair Value Measurements and Disclosures, </font>our assets and liabilities, which are carried at fair value, are classified in one of the following categories:</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Level 1—Quoted prices in active markets for identical assets or liabilities.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Level 2—<font style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">Significant observable</font> inputs other than quoted prices in Level 1<font style="font-family: ''Times New Roman'', Times, serif; font-size: 10pt;">, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data</font>.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Level 3—One or more significant inputs that are unobservable and supported by little or no market data.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Inputs are referred to as assumptions that market participants would use in pricing the asset or liability. The uses of inputs in the valuation process are categorized into a three-level fair value hierarchy.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Our Level 1 assets and liabilities consist of cash equivalents, which are primarily invested in money-market funds. These assets are classified as Level 1 because they are valued using quoted prices in active markets and other relevant information generated by market transactions involving identical assets and liabilities.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Our cash and cash equivalents include money-market funds for which the fair value was determined using Level 1 inputs and was $3.1 million as of June 30, 2013 and December 31, 2012. For cash and cash equivalents, accounts receivable, and accounts payable, the carrying amount approximates fair value because of the relative short maturity of those instruments.</div><div><br /></div></div>
13000
-27000
1579000
1940000
3484000
2713000
6922000
7772000
12424000
13079000
100000
0
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: top; font-weight: bold;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">5.</div></td><td style="width: 92.54%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Guarantees</div></td></tr></table><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">In certain geographical regions, particularly EMEA, we are sometimes required to issue performance guarantees to our customers as a condition of sale. These guarantees usually provide financial protection to our customers in the event that we fail to fulfill our delivery or product warranty obligations. We secure these guarantees with standby letters of credit through our bank. At June 30, 2013 and December 31, 2012, we had $0.6 million and $0 respectively, of performance guarantees outstanding to customers that were secured with letters of credit. The current guarantees are set to expire on September 30, 2013 and April 17, 2014. There is no foreseeable risk that we will not be able to meet the performance obligations. Our restricted cash, as shown on the balance sheet, is related to these guarantees.</div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;"> </div></div>
3604000
2370000
502000
-923000
-24000
108000
-435000
1356000
1319000
5987000
-15000
1904000
1276000
-514000
615000
991000
195000
99000
0
215000
1134000
1849000
3390000
3516000
11913000
11079000
7021000
6983000
2636000
2429000
22758000
19087000
50200000
45799000
5535000
5535000
-671000
-861000
366000
10044000
332000
490000
59000
0
0
0
0
59000
-657000
1492000
-4605000
6412000
7269000
12114000
13648000
510000
503000
-569000
310000
288000
309000
-199000
0
-199000
0
0
0
-96000
39000
78000
-87000
689000
713000
1594000
1233000
0
187000
739000
861000
0
0
2000
2000
0.001
0.001
573000
567000
0
9750000
0
2017000
68000
0
435000
491000
46000
715000
669000
694000
3042000
2458000
7788000
11150000
25701000
135000
4366000
461000
1801000
24671000
7662000
188000
1828000
10298000
444000
4251000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Property and Equipment</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Property and equipment consist of the following (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Equipment</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">11,150</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">10,298</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Demonstration units</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1,801</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1,828</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Computers and purchased software</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">4,366</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">4,251</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Furniture and fixtures</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">461</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">444</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Leasehold improvements</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">7,788</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">7,662</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Construction in progress</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">135</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">188</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">25,701</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">24,671</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Accumulated depreciation</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(22,659</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(22,213</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">3,042</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,458</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div></div>
-76000
62000
0
2017000
1800000
1432000
2720000
3431000
3100000
3100000
615000
0
-262758000
-262817000
15385000
17481000
33887000
31021000
20195000
21659000
38805000
41457000
4810000
4178000
7570000
7784000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt;">Changes in our warranty liability are presented in the following table (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr style="background-color: #cceeff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Balance at December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.94%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">755</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Warranty expense</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.94%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">353</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Warranty charges incurred</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.94%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(393</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Balance at June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.94%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">715</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Warranty liability included in accrued expenses</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.94%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">669</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Long-term warranty liability</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.94%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">46</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Balance at June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.94%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">715</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="6" style="border-bottom: #000000 2px solid; width: 23.19%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Three Months Ended June 30,</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="6" style="border-bottom: #000000 2px solid; width: 23.21%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Six Months Ended June 30,</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 9.93%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 9.93%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 9.93%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 9.94%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.94%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Numerator:</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.93%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="width: 9.94%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Net income (loss)</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">332</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">490</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">59</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(657</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Denominator:</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.28%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Weighted-average shares of common stock outstanding</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,296</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,094</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,261</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.28%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">18,036</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Dilutive effect of employee stock options and restricted stock awards</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">195</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">99</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">215</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">-</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Weighted-average shares for diluted net income per share</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,491</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,193</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,476</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">18,036</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.28%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Basic net income (loss) per share</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.02</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.03</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.00</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(0.04</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 46.93%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Diluted net income (loss) per share</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.02</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.03</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.26%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">0.00</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.28%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(0.04</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Inventory</div><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt;">We state inventories at the lower of cost or market, using the first-in-first-out-method (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Raw materials</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">7,021</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">6,983</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Work in process</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,636</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,429</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Finished goods</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">3,390</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">3,516</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Allowances for obsolescence</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(1,134</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(1,849</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">11,913</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">11,079</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div></div>
<div><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"> The calculation of diluted income per share excludes shares of common stock issuable upon exercise of employee stock options. There were no shares excluded from the calculation related to non-vested shares of common stock issuable upon exercise of restricted stock units as of June 30, 2013 and 2012. </font> <div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt;">  </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Three Months Ended June 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Six Months Ended June 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt;">  </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">2012</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">2013</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td valign="bottom" style="padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-align: center; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">2012</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </td></tr><tr><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;">  </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td></tr><tr><td align="left" valign="bottom"><div style="text-align: left; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">Common stock equivalents excluded from calculation</div></td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td colspan="2" valign="bottom" style="display: inline; font-family: times new roman; font-size: 10pt;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; font-family: times new roman; font-size: 10pt;"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" style="padding-bottom: 4px; width: 52%;"><div style="text-align: left; text-indent: 0pt; display: block; font-family: times new roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">   because effect would have been anti-dilutive</div></td><td align="left" valign="bottom" style="padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: left; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: right; width: 9%; font-family: times new roman; font-size: 10pt;">2,287</td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td align="right" valign="bottom" style="padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: left; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: right; width: 9%; font-family: times new roman; font-size: 10pt;">2,240</td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td align="right" valign="bottom" style="padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: left; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: right; width: 9%; font-family: times new roman; font-size: 10pt;">2,162</td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td align="right" valign="bottom" style="padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: left; width: 1%; font-family: times new roman; font-size: 10pt;"> </td><td valign="bottom" style="border-bottom: black 4px double; text-align: right; width: 9%; font-family: times new roman; font-size: 10pt;">2,335</td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; width: 1%; font-family: times new roman; font-size: 10pt;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Accrued Expenses</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Accrued expenses consist of the following (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Compensation and benefits</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,113</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,199</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Warranty liability</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">669</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">694</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Property, income, state, sales and franchise tax</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">682</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">320</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Professional fees</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">392</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">502</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Other</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1,594</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1,233</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">5,450</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">4,948</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Receivables</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Accounts receivable consist of the following (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">June 30, 2013</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: justify; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Trade receivables</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,669</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">18,350</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: justify; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Allowance for doubtful accounts</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">412</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">488</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,257</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">17,862</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div></div>
3033000
3897000
7444000
5970000
528000
773000
19347000
43000
33000
19171000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: top; font-weight: bold;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1.</div></td><td style="width: 92.54%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Significant Accounting Policies</div></td></tr></table><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Organization and Basis of presentation</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Active Power, Inc. and its subsidiaries (hereinafter referred to as "we", "us", "Active Power" or the "Company") manufacture and provide critical power quality and modular infrastructure solutions that provide business continuity and protect customers in the event of an electrical power disturbance. Our products and solutions are designed to deliver continuous clean power, protecting customers from voltage fluctuations, such as surges and sags, and frequency fluctuations, and also to provide ride-through, or temporary, power to bridge the gap between a power outage and the restoration of utility power. Our target customers are those global enterprises requiring "power insurance" because they have zero tolerance for downtime in their mission critical operations. The Uninterruptible Power Supply ("UPS") products we manufacture use kinetic energy to provide short-term power as a cleaner alternative to electro-chemical battery-based energy. We sell stand-alone UPS products as well as complete continuous power and infrastructure solutions, including containerized continuous power systems that we brand as PowerHouse. We sell our products globally through our direct sales force, manufacturer's representatives, Original Equipment Manufacturer ("OEM") channels and IT partners. Our current principal markets are the Americas, Europe Middle East and Africa ("EMEA"), and Asia.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">The accompanying condensed consolidated balance sheet as of December 31, 2012, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of the Company and its consolidated subsidiaries. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring items) necessary to present fairly the consolidated financial position of the Company and its consolidated results of operations and cash flows. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. <br /></div></div>
715000
755000
353000
393000
10000
55000
0
0
0
435000
0
435000
0
121000
26753000
289562000
19000
123000
-262758000
-193000
288619000
19000
-144000
322000
25999000
-262817000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: top; font-weight: bold;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2.</div></td><td style="width: 92.54%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Supplemental Balance Sheet Information</div></td></tr></table><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Restricted Cash</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Our restricted cash balance of $0.6 million as of June 30, 2013 consists primarily of secured performance and deposit guarantees given to customers. Upon satisfaction of these guarantees, the restriction on these funds will be released.</div><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Receivables</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Accounts receivable consist of the following (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">June 30, 2013</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: justify; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Trade receivables</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,669</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">18,350</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: justify; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Allowance for doubtful accounts</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">412</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">488</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">19,257</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">17,862</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">We estimate an allowance for doubtful accounts based on factors related to the credit risk of each customer. Historically, our credit losses have been minimal.</div><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Inventory</div><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt;">We state inventories at the lower of cost or market, using the first-in-first-out-method (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Raw materials</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">7,021</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">6,983</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Work in process</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,636</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,429</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Finished goods</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">3,390</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">3,516</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Allowances for obsolescence</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(1,134</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(1,849</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">11,913</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">11,079</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Property and Equipment</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Property and equipment consist of the following (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Equipment</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">11,150</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">10,298</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Demonstration units</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1,801</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1,828</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Computers and purchased software</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">4,366</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">4,251</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Furniture and fixtures</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">461</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">444</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Leasehold improvements</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">7,788</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">7,662</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Construction in progress</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">135</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">188</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">25,701</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">24,671</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Accumulated depreciation</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(22,659</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(22,213</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">3,042</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,458</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Accrued Expenses</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Accrued expenses consist of the following (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.33%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td colspan="2" style="border-bottom: #000000 2px solid; width: 10.4%; vertical-align: bottom;"><div style="text-align: center; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Compensation and benefits</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,113</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">2,199</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Warranty liability</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">669</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">694</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Property, income, state, sales and franchise tax</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">682</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">320</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Professional fees</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">392</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">502</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Other</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1,594</div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">1,233</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 72.6%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.67%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">5,450</div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.74%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">4,948</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Warranty Liability</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Generally, the warranty period for our power quality products is 12 months from the date of commissioning or 18 months from the date of shipment from Active Power, whichever period is shorter. Occasionally, we offer longer warranty periods to certain customers. The warranty period for products sold to our primary OEM customer, Caterpillar, is 12 months from the date of shipment to the end-user, or up to 36 months from shipment. This is dependent upon Caterpillar complying with our storage requirements for our products in order to preserve this warranty period beyond the standard 18-month limit. We provide for the estimated cost of product warranties at the time revenue is recognized and this accrual is included in accrued expenses and long-term liabilities on the accompanying consolidated balance sheet.</div><div><br /></div><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 27pt; font-size: 10pt;">Changes in our warranty liability are presented in the following table (in thousands):</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr style="background-color: #cceeff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Balance at December 31, 2012</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.94%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">755</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Warranty expense</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 8.94%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">353</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Warranty charges incurred</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.94%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">(393</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">)</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Balance at June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.94%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">715</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Warranty liability included in accrued expenses</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="width: 8.94%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">669</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Long-term warranty liability</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 8.94%; vertical-align: bottom;"><div style="text-align: right; background-color: #ffffff; font-family: Times New Roman''; color: #000000; font-size: 10pt;">46</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; background-color: #ffffff; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr><tr style="background-color: #cceeff;"><td style="width: 86.72%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: Times New Roman''; color: #000000; margin-left: 7.2pt; font-size: 10pt;">Balance at June 30, 2013</div></td><td style="width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td><td style="border-bottom: #000000 4px double; width: 1.67%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">$</div></td><td style="border-bottom: #000000 4px double; width: 8.94%; vertical-align: bottom;"><div style="text-align: right; font-family: Times New Roman''; color: #000000; font-size: 10pt;">715</div></td><td style="width: 1%; vertical-align: bottom;"><div style="text-align: left; font-family: Times New Roman; color: #000000; font-size: 10pt;"> </div></td></tr></table><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt; font-weight: bold;">Revenue Recognition</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">In general, we recognize revenue when four criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue-generating transactions generally fall into one of the following categories of revenue recognition:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: middle;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">●</div></td><td style="width: 87.54%; vertical-align: top;"><div style="text-align: justify; font-family: Times New Roman''; color: #000000; font-size: 10pt;">We recognize product revenue at the time of shipment for substantially all products sold directly to customers and through distributors because title and risk of loss pass on delivery to the common carrier. Our customers and distributors do not have the right to return products. If title and risk of loss pass at some other point in time, we recognize such revenue for our customers when the product is delivered to the customer and title and risk of loss have passed.  We may enter into bill-and-hold arrangements and when this occurs delivery may not be present, but other criteria are reviewed to determine the proper timing of revenue recognition.</div></td></tr></table><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: middle;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">●</div></td><td style="width: 87.54%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">We recognize installation and service and maintenance revenue at the time the service is performed.</div></td></tr></table><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: middle;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">●</div></td><td style="width: 87.54%; vertical-align: top;"><div style="text-align: justify; font-family: Times New Roman''; color: #000000; font-size: 10pt;">We recognize revenue associated with extended maintenance agreements ("EMAs") over the life of the contracts using the straight-line method, which approximates the expected timing in which applicable services are performed. Amounts collected in advance of revenue recognition are recorded as a current or long-term liability based on the time from the balance sheet date to the future date of revenue recognition.</div></td></tr></table><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: middle;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">●</div></td><td style="width: 87.54%; vertical-align: top;"><div style="text-align: justify; font-family: Times New Roman''; color: #000000; font-size: 10pt;">We recognize revenue on certain rental programs over the life of the rental agreement using the straight-line method. Amounts collected in advance of revenue recognition are recorded as a current or long-term liability based on the time from the balance sheet date to the future date of revenue recognition.</div></td></tr></table><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 7.46%; vertical-align: middle;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">●</div></td><td style="width: 87.54%; vertical-align: top;"><div style="text-align: left; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Shipping costs reimbursed by the customer are included in revenue.</div></td></tr></table><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Multiple element arrangements ("MEAs") are arrangements to sell products to customers that frequently include multiple deliverables. Our most significant MEAs include the sale of one or more of our CleanSource UPS or PowerHouse products, combined with one or more of the following products: design services, project management, commissioning and installation services, spare parts or consumables, and EMAs. Delivery of the various products or performance of services within the arrangement may or may not coincide. Certain services related to design and consulting may occur prior to delivery of product and commissioning and installation typically take place within six months of product delivery, depending upon customer requirements. EMAs, consumables, and repair, maintenance or consulting services generally are delivered over a period of one to five years. In certain arrangements, revenue recognized is limited to the amount invoiced or received that is not contingent on the delivery of future products and services.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">When arrangements include multiple elements, we allocate revenue to each element based on the relative selling price and recognize revenue when the elements have stand-alone value and the four criteria for revenue recognition have been met. We establish the selling price of each element based on Vendor Specific Objective Evidence ("VSOE") if available, Third Party Evidence ("TPE") if VSOE is not available, or Best Estimate of Selling Price ("BESP") if neither VSOE nor TPE is available. We generally determine selling price based on amounts charged separately for the delivered and undelivered elements to similar customers in stand-alone sales of the specific elements. When arrangements include an EMA, we recognize revenue related to the EMA at the stated contractual price on a straight-line basis over the life of the agreement.</div><div><br /></div><div style="text-align: justify; text-indent: 27pt; font-family: Times New Roman''; color: #000000; font-size: 10pt;">Any taxes imposed by governmental authorities on our revenue-producing transactions with customers are shown in our consolidated statements of operations on a net-basis; that is, excluded from our reported revenues.</div><div><br /></div></div>
682000
320000
102000
-347000
-311000
-199000
193000
144000
19261000
18036000
19094000
19296000
19193000
19491000
19476000
18036000
P1M
82000
52000
166000
164000
P18M
1
P12M
4
1
P36M
P12M
P6M
P5Y
20000
0
10000
49000