F-4
TeleCommunication Systems, Inc.
Consolidated Statements of Operations
(amounts in thousands, except per share data)
Year ended December 31,
2013
2012
2011
Revenue
Services ...................................................................................................................... $ 281,389 $ 305,118 $ 303,921
Systems.......................................................................................................................
80,902 182,266 121,491
Total revenue .................................................................................................... 362,291 487,384 425,412
Direct costs of revenue
Direct cost of services ................................................................................................ 156,285 178,317 170,977
Direct cost of systems.................................................................................................
67,038 148,860 103,198
Total direct cost of revenue............................................................................... 223,323 327,177 274,175
Services gross profit............................................................................................................. 125,104 126,801 132,944
Systems gross profit .............................................................................................................
13,864
33,406
18,293
Total gross profit............................................................................................... 138,968 160,207 151,237
Operating costs and expenses
Research and development expense ...........................................................................
34,308
36,602
37,098
Sales and marketing expense ......................................................................................
28,495
30,753
29,394
General and administrative expense ...........................................................................
54,689
54,277
46,218
Depreciation and amortization of property and equipment ........................................
14,853
14,245
12,135
Amortization of acquired intangible assets.................................................................
4,570
4,374
5,535
Impairment of goodwill and long-lived assets............................................................
31,977 125,703
—
Total operating costs and expenses ................................................................... 168,892 265,954 130,380
Income (loss) from operations
........................................................................................... (29,924) (105,747)
20,857
Interest expense....................................................................................................................
(8,262)
(7,383)
(7,283)
Amortization of deferred financing fees ..............................................................................
(3,403)
(757)
(798)
Gain (loss) on early retirement of debt.................................................................................
(178)
431
—
Other income (expense), net ................................................................................................
(239)
(23)
(360)
Income (loss) before income taxes
.................................................................................... (42,006) (113,479)
12,416
Benefit (provision) for income taxes.................................................................................... (16,591)
15,491
(5,412)
Net income (loss)
................................................................................................................. $ (58,597) $ (97,988) $
7,004
Net income (loss) per share-basic
...................................................................................... $
(1.00) $
(1.69) $
0.12
Net income (loss) per share-diluted
.................................................................................. $
(1.00) $
(1.69) $
0.12
Weighted average shares outstanding-basic.........................................................................
58,611
57,889
56,722
Weighted average shares outstanding-diluted ......................................................................
58,611
57,889
58,581
See accompanying Notes to Consolidated Financial Statements.
