as an intangible asset. The excess of the purchase price over the fair value of the net identifiable assets acquired of $28,424 has been recorded as goodwill. The trade name and goodwill are being amortized on a straight-line basis over the estimated useful life of 40 years. In September 2000, the Company entered into an asset pur- chase agreement and a license agreement with a Hong Kong company to sell certain inventory and for the exclusive right to use the Rayovac trade name for the manufacture, sale and distribution of the Company’s camcorder battery product line. In exchange for the license, the Company received a $6,000 promissory note, payable over five years, and will receive a royalty on future sales of camcorder batteries. The Company will receive a minimum royalty of $100 over the bal- ance of the license arrangement and will receive a variable royalty on sales of camcorder batteries. The Company has no substantive future obligation relative to this agreement. As a result of this transaction, the Company recognized a pre-tax gain on the sale of the trade name licensing rights of $1,997, net of write-off of related tangible and intangible assets. (17) Quarterly Results (unaudited) Quarter Ended December 31, April 1, July 1, September 30, 2000 2001 2001 2001 Net sales $183,559 $145,192 $159,132 $187,609 Gross profit 76,023 69,159 74,902 87,295 (Loss) income before extraordinary item (1,766) 4,125 8,072 6,430 Net (loss) income (1,766) 4,125 2,722 6,453 Basic net income per common share (0.06) 0.15 0.10 0.20 Diluted net income per common share (0.06) 0.14 0.09 0.20 Quarter Ended January 2, April 2, July 2, September 30, 2000 2000 2000 2000 Net sales $211,370 $140,118 $150,351 $191,500 Gross profit 100,541 67,386 73,049 94,137 Net income 13,919 3,651 8,078 12,702 Basic net income per common share 0.51 0.13 0.29 0.46 Diluted net income per common share 0.48 0.13 0.28 0.44 Notes to Consolidated Financial Statements Rayovac Corporation and Subsidiaries (In thousands, except per share amounts)