UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 3, 2021
 
ADTRAN, Inc.
(Exact name of Registrant as Specified in Its Charter)

Delaware	000-24612	63-0918200	
(State or Other Jurisdiction
of Incorporation)	(Commission File Number)	(IRS Employer
Identification No.)	
 	 	 	
901 Explorer Boulevard
Huntsville, Alabama	 	35806-2807	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s Telephone Number, Including Area Code: (256) 963-8000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class	 	Trading Symbol	 	Name of exchange on which registered	
Common Stock, Par Value $0.01	 	ADTN	 	The NASDAQ Global Select Market	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 
 
Item 2.02Results of Operations and Financial Condition.
 
On February 3, 2021, ADTRAN, Inc. (“ADTRAN”) announced its financial results for the fiscal quarter and twelve months ended December 31, 2020.
 
ADTRAN also announced that its Board of Directors declared a quarterly cash dividend of $0.09 per common share, to be paid to ADTRAN’s stockholders of record as of the close of business on February 18, 2021. The ex-dividend date is February 17, 2021, and the payment date is March 4, 2021.
 
A copy of ADTRAN’s press release announcing its financial results and the declaration of the quarterly cash dividend is attached as Exhibit 99.1 hereto and incorporated by reference herein.
 
Item 9.01Financial Statements and Exhibits.

Exhibit Number	Description	
99.1	Press Release dated February 3, 2021	
104	Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document	

 

 

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		
Date: February 4, 2021                                            	ADTRAN, Inc.
 
By: /s/ Michael Foliano
Michael Foliano
Senior Vice President of Finance and	
 	Chief Financial Officer
(Principal Accounting Officer)	

 

EXHIBIT 99.1
ADTRAN, Inc. Reports Earnings for the Fourth Quarter of 2020 and Declares Quarterly Cash Dividend
February 3, 2021
HUNTSVILLE, Ala.—(BUSINESS WIRE)—February 3, 2021—ADTRAN, Inc. (NASDAQ:ADTN) (“ADTRAN” or the “Company”) today announced financial results for the fourth quarter of 2020. For the quarter, revenue was $130.1 million. Net income for the fourth quarter of 2020 was $6.1 million and earnings per share, assuming dilution, was $0.13 per share. Non-GAAP net income was $5.2 million and non-GAAP earnings per share, assuming dilution, was $0.11 per share. Non-GAAP net income and non-GAAP earnings per share exclude stock-based compensation expense, acquisition-related expenses and amortizations, restructuring expenses, amortization of pension actuarial losses, valuation allowance related to our deferred tax assets, non-cash deferred compensation, and other one-time adjustments. The reconciliations between GAAP net income and GAAP earnings per share to non-GAAP net income and non-GAAP earnings per share are set forth in the table provided below.
ADTRAN Chairman and Chief Executive Officer Tom Stanton stated, “We saw substantial growth in our Tier-2 and Tier-3 service provider segments in the U.S. and a solid increase in fiber deployments in Europe. We expect that our fiber access solutions will continue to be adopted by customers around the world.”
The Company also announced that its Board of Directors declared a cash dividend for the fourth quarter of 2020. The quarterly cash dividend of $0.09 per common share is to be paid to the Company’s stockholders of record as of the close of business on February 18, 2021. The payment date will be March 4, 2021.
The Company confirmed that it will hold a conference call to discuss its fourth quarter 2020 results on Thursday, February 4, 2021, at 9:30 a.m. Central Time. ADTRAN will webcast this conference call. To listen, simply visit ADTRAN’s Investor Relations site at www.adtran.com/investor approximately 10 minutes prior to the start of the call, click on the event “ADTRAN releases 4th Quarter Financial Results and Earnings Call,” and click on the Webcast link.
An online replay of the Company’s conference call, as well as the text of the Company's conference call, will be available on the Investor Relations site approximately 24 hours following the call and will remain available for at least 12 months. For more information, visit www.adtran.com/investor or email investor.relations@adtran.com.
At ADTRAN, we believe amazing things happen when people connect. From the cloud edge to the subscriber edge, we help communications service providers around the world manage and scale services that connect people, places and things to advance human progress. Whether rural or urban, domestic or international, telco or cable, enterprise or residential—ADTRAN solutions optimize existing technology infrastructures and create new, multi-gigabit platforms that leverage cloud economics, data analytics, machine learning and open ecosystems—the future of global networking. Find more at ADTRAN.com, LinkedIn and Twitter.
This press release contains forward-looking statements, generally identified by the use of words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “may,” “could” and similar expressions, which forward-looking statements reflect management’s best judgment based on factors currently known. However, these statements involve risks and uncertainties, including: (i) those risks and uncertainties related to the continued spread and extent of the impact of the COVID-19 global pandemic, including the speed, depth, geographic reach and duration of the spread, which could lead to a decrease in demand for the Company’s products and services, and which has disrupted, and could lead to further disruptions in, the Company’s supply chain, adversely impacting the operations and financial condition of the Company and its customers; actions that have been taken and that may be taken by the Company, its customers, suppliers and counterparties in response to the pandemic, including the implementation of alternative work arrangements for employees, which may delay the timing of some orders and expected deliveries and which may impact the Company’s ability to mitigate inefficiencies, delays and additional costs in the Company’s product development, sales, marketing and customer service efforts; the legal, regulatory and administrative developments that occur at the federal, state and local levels and in foreign jurisdictions in response to the pandemic, including travel bans and restrictions, quarantines, shelter-in-place orders, and business limitations and shutdowns; potential disruptions, breaches, or other incidents affecting the proper operation, availability or security of the Company’s or its partners’ information systems; declines in revenues due to declining customer demand and deteriorating macroeconomic conditions; potential increased expenses related to labor, raw materials, freight or other expenditures; the impact of the COVID-19 pandemic on the Company’s liquidity, as well as risks associated with disruptions in the financial markets and the business of financial institutions as a result of the COVID-19 pandemic which could impact the Company from a financial perspective; (ii) those risks and uncertainties related to evolving U.S. and foreign laws and regulations regarding privacy, data protection and other matters, including uncertainty and potential additional compliance obligations arising from the Court of Justice of the European Union’s recent issuance of a decision that

invalidated the EU-U.S. Privacy Shield framework as a basis for transfers of personal data from the EU to the U.S.; and (iii) the other risks detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.
To provide additional transparency, we have disclosed in the tables below non-GAAP operating income (loss), which has been reconciled to operating income (loss), and non-GAAP net income (loss) and non-GAAP earnings (loss) per share - basic and diluted, which have been reconciled to net income (loss) and earnings (loss) per share - basic and diluted, in each case as reported based on Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). These non-GAAP financial measures exclude certain items which management believes are not reflective of the ongoing operating performance of the business. We believe this information is useful in providing period-to-period comparisons of the results of our ongoing operations. Additionally, these measures are used by management in our ongoing planning and annual budgeting processes. The presentation of non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP earnings (loss) per share - basic and diluted, when combined with the U.S. GAAP presentation of operating income (loss), net income (loss) and earnings (loss) per share - basic and diluted, is beneficial to the overall understanding of ongoing operating performance of the Company.
These non-GAAP financial measures are not prepared in accordance with, and are not an alternative for, U.S. GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under U.S. GAAP. Additionally, our calculation of non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP earnings (loss) per share - basic and diluted, may not be comparable to similar measures calculated by other companies. 

Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
 
 	December 31,	 	 	December 31,	 	
 	2020	 	 	2019	 	
Assets	 	 	 	 	 	 	 	
Cash and cash equivalents	$	60,161	 	 	$	73,773	 	
Restricted cash	 	18	 	 	 	—	 	
Short-term investments	 	3,131	 	 	 	33,243	 	
Accounts receivable, net	 	98,827	 	 	 	90,531	 	
Other receivables	 	21,531	 	 	 	16,566	 	
Inventory, net	 	118,715	 	 	 	98,305	 	
Prepaid expenses and other current assets	 	8,293	 	 	 	7,892	 	
Total Current Assets	 	310,676	 	 	 	320,310	 	
 	 	 	 	 	 	 	 	
Property, plant and equipment, net	 	62,399	 	 	 	68,086	 	
Deferred tax assets, net	 	9,869	 	 	 	7,561	 	
Goodwill	 	6,968	 	 	 	6,968	 	
Intangibles, net	 	23,470	 	 	 	27,821	 	
Other non-current assets	 	25,425	 	 	 	19,883	 	
Long-term investments	 	80,130	 	 	 	94,489	 	
Total Assets	$	518,937	 	 	$	545,118	 	
 	 	 	 	 	 	 	 	
Liabilities and Stockholders' Equity	 	 	 	 	 	 	 	
Accounts payable	$	43,187	 	 	$	44,870	 	
Bonds payable	 	—	 	 	 	24,600	 	
Unearned revenue	 	14,092	 	 	 	11,963	 	
Accrued expenses and other liabilities	 	13,609	 	 	 	13,876	 	
Accrued wages and benefits	 	15,262	 	 	 	13,890	 	
Income tax payable, net	 	1,301	 	 	 	3,512	 	
Total Current Liabilities	 	87,451	 	 	 	112,711	 	
 	 	 	 	 	 	 	 	
Non-current unearned revenue	 	6,888	 	 	 	6,012	 	
Pension liability	 	18,664	 	 	 	15,886	 	
Deferred compensation liability	 	25,866	 	 	 	21,698	 	
Other non-current liabilities	 	7,124	 	 	 	8,385	 	
Total Liabilities	 	145,993	 	 	 	164,692	 	
 	 	 	 	 	 	 	 	
Stockholders' Equity	 	372,944	 	 	 	380,426	 	
 	 	 	 	 	 	 	 	
Total Liabilities and Stockholders' Equity	$	518,937	 	 	$	545,118	 	

 
Consolidated Statements of Income (Loss)
(Unaudited)
(In thousands, except per share amounts)
 
 	 	Three Months Ended	 	 	Twelve Months Ended	 	 	
 	 	December 31,	 	 	December 31,	 	 	
 	 	2020	 	 	2019	 	 	2020	 	 	2019	 	 	
Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Network Solutions	 	$	114,091	 	 	$	96,219	 	 	$	438,015	 	 	$	455,226	 	 	
Services & Support	 	 	16,038	 	 	 	19,568	 	 	 	68,495	 	 	 	74,835	 	 	
Total Sales	 	 	130,129	 	 	 	115,787	 	 	 	506,510	 	 	 	530,061	 	 	
Cost of Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Network Solutions	 	 	65,734	 	 	 	56,324	 	 	 	244,226	 	 	 	263,677	 	 	
Services & Support	 	 	10,878	 	 	 	12,254	 	 	 	44,733	 	 	 	47,217	 	 	
Total Cost of Sales	 	 	76,612	 	 	 	68,578	 	 	 	288,959	 	 	 	310,894	 	 	
Gross Profit	 	 	53,517	 	 	 	47,209	 	 	 	217,551	 	 	 	219,167	 	 	
Selling, general and administrative expenses	 	 	29,348	 	 	 	30,625	 	 	 	113,972	 	 	 	130,288	 	 	
Research and development expenses	 	 	27,493	 	 	 	30,654	 	 	 	113,287	 	 	 	126,200	 	 	
Asset impairments	 	 	—	 	 	 	—	 	 	 	65	 	 	 	3,872	 	 	
Gain on contingency	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1,230	)	 	
Operating Loss	 	 	(3,324	)	 	 	(14,070	)	 	 	(9,773	)	 	 	(39,963	)	 	
Interest and dividend income	 	 	905	 	 	 	872	 	 	 	1,936	 	 	 	2,765	 	 	
Interest expense	 	 	(4	)	 	 	(129	)	 	 	(5	)	 	 	(511	)	 	
Net investment gain	 	 	3,031	 	 	 	3,239	 	 	 	4,850	 	 	 	11,434	 	 	
Other income (expense), net	 	 	(947	)	 	 	(768	)	 	 	(3,254	)	 	 	1,498	 	 	
Loss Before Income Taxes	 	 	(339	)	 	 	(10,856	)	 	 	(6,246	)	 	 	(24,777	)	 	
Income tax (expense) benefit	 	 	6,453	 	 	 	(768	)	 	 	8,624	 	 	 	(28,205	)	 	
Net Income (Loss)	 	$	6,114	 	 	$	(11,624	)	 	$	2,378	 	 	$	(52,982	)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding – basic	 	 	48,111	 	 	 	47,936	 	 	 	47,996	 	 	 	47,836	 	 	
Weighted average shares outstanding – diluted	 	 	48,532	 	(1)	 	47,936	 	 	 	48,288	 	(1)	 	47,836	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) per common share – basic	 	$	0.13	 	 	$	(0.24	)	 	$	0.05	 	 	$	(1.11	)	 	
Earnings (loss) per common share – diluted	 	$	0.13	 	(1)	$	(0.24	)	 	$	0.05	 	(1)	$	(1.11	)	 	
(1) Assumes exercise of dilutive stock options calculated under the treasury stock method.

 

Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 	 	Twelve Months Ended	 	
 	 	December 31,	 	
 	 	2020	 	 	2019	 	
Cash flows from operating activities:	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	2,378	 	 	$	(52,982	)	
Adjustments to reconcile net income (loss) to net cash used in operating
   activities:	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	16,627	 	 	 	17,771	 	
Asset impairments	 	 	65	 	 	 	3,872	 	
Gain on investments	 	 	(5,802	)	 	 	(11,434	)	
Stock-based compensation expense	 	 	6,834	 	 	 	6,962	 	
Deferred income taxes	 	 	(1,356	)	 	 	30,070	 	
Gain on contingency payment	 	 	—	 	 	 	(1,230	)	
Gain on life insurance proceeds	 	 	—	 	 	 	(1,000	)	
Other	 	 	216	 	 	 	(33	)	
Change in operating assets and liabilities:	 	 	 	 	 	 	 	 	
Accounts receivable, net	 	 	(7,269	)	 	 	8,282	 	
Other receivables	 	 	(4,732	)	 	 	20,046	 	
Inventory, net	 	 	(18,840	)	 	 	1,252	 	
Prepaid expenses and other assets	 	 	(5,239	)	 	 	2,749	 	
Accounts payable, net	 	 	(2,199	)	 	 	(13,494	)	
Accrued expenses and other liabilities	 	 	5,093	 	 	 	(4,598	)	
Income taxes payable	 	 	(2,294	)	 	 	(8,705	)	
Net cash used in operating activities	 	 	(16,518	)	 	 	(2,472	)	
 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment	 	 	(6,413	)	 	 	(9,494	)	
Proceeds from disposals of property, plant and equipment	 	 	2	 	 	 	—	 	
Proceeds from sales and maturities of available-for-sale investments	 	 	105,100	 	 	 	47,268	 	
Purchases of available-for-sale investments	 	 	(56,767	)	 	 	(48,578	)	
Acquisition of note receivable	 	 	(523	)	 	 	—	 	
Life insurance proceeds received	 	 	—	 	 	 	1,000	 	
Acquisition of business	 	 	—	 	 	 	13	 	
Net cash provided by (used in) investing activities	 	 	41,399	 	 	 	(9,791	)	
 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	 	 	 	 	 	 	 	 	
Dividend payments	 	 	(17,334	)	 	 	(17,212	)	
Repayment of bonds payable	 	 	(24,600	)	 	 	—	 	
Tax withholdings related to stock-based compensation settlements	 	 	(1,043	)	 	 	—	 	
Proceeds from stock option exercises	 	 	—	 	 	 	526	 	
Purchases of treasury stock	 	 	—	 	 	 	(184	)	
Payments on long-term debt	 	 	—	 	 	 	(1,000	)	
Net cash used in financing activities	 	 	(42,977	)	 	 	(17,870	)	
Net decrease in cash and cash equivalents	 	 	(18,096	)	 	 	(30,133	)	
Effect of exchange rate changes	 	 	4,502	 	 	 	(1,598	)	
Cash, cash equivalents and restricted cash, beginning of year	 	 	73,773	 	 	 	105,504	 	
 	 	 	 	 	 	 	 	 	
Cash, cash equivalents and restricted cash, end of year	 	$	60,179	 	 	$	73,773	 	
 	 	 	 	 	 	 	 	 	
Supplemental disclosure of cash flow information	 	 	 	 	 	 	 	 	
Cash paid during the year for interest	 	$	24	 	 	$	512	 	
Cash paid during the year for income taxes	 	$	7,609	 	 	$	9,357	 	
Supplemental disclosure of non-cash investing activities	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment included in accounts payable	 	$	108	 	 	$	90	 	

 
Supplemental Information
Reconciliation of Operating Loss to Non-GAAP Operating Income (Loss)
(Unaudited)
 
 	 	Three Months Ended
December 31,	 	 	 	 	Twelve Months Ended
December 31,	 	 	 	 	
 	 	2020	 	 	 	 	2019	 	 	 	 	2020	 	 	 	 	2019	 	 	 	 	
Operating Loss	 	$	(3,324	)	 	 	 	$	(14,070	)	 	 	 	$	(9,773	)	 	 	 	$	(39,963	)	 	 	 	
Acquisition related expenses, amortizations and adjustments	 	 	1,051	 	 	(1)	 	 	1,357	 	 	(5)	 	 	4,550	 	 	(8)	 	 	5,703	 	 	(13)	 	
Stock-based compensation expense	 	 	1,778	 	 	(2)	 	 	1,778	 	 	(6)	 	 	6,834	 	 	(9)	 	 	6,962	 	 	(14)	 	
Restructuring expenses	 	 	2,581	 	 	(3)	 	 	1,356	 	 	(7)	 	 	6,229	 	 	(10)	 	 	6,014	 	 	(15)	 	
Deferred compensation adjustments	 	 	2,172	 	 	(4)	 	 	536	 	 	(4)	 	 	2,937	 	 	(4)	 	 	2,767	 	 	(4)	 	
Asset impairments	 	 	—	 	 	 	 	 	—	 	 	 	 	 	65	 	 	(11)	 	 	3,872	 	 	(11)	 	
Settlement income	 	 	—	 	 	 	 	 	—	 	 	 	 	 	(28	)	 	(12)	 	 	(746	)	 	(12)	 	
Gain on contingency	 	 	—	 	 	 	 	 	—	 	 	 	 	 	—	 	 	 	 	 	(1,230	)	 	(16)	 	
Non-GAAP Operating Income (Loss)	 	$	4,258	 	 	 	 	$	(9,043	)	 	 	 	$	10,814	 	 	 	 	$	(16,621	)	 	 	 	
(1) $0.6 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the consolidated statements of income.
(2) $0.1 million is included in total cost of sales, $1.1 million is included in selling, general and administrative expenses and $0.6 million is included in research and development expenses on the consolidated statements of income.
(3) $0.2 million is included in total cost of sales, $0.2 million is included in selling, general and administrative expenses and $2.2 million is included in research and development expenses on the consolidated statements of income.
(4) Includes non-cash change in fair value of equity investments held in the ADTRAN, Inc. Deferred Compensation Program for Employees per ASU 2016-01, all of which is included in selling, general and administrative expenses on the consolidated statements of income.
(5) $0.4 million is included in total cost of sales, $0.5 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the consolidated statements of income.
(6) $0.1 million is included in total cost of sales, $1.0 million is included in selling, general and administrative expenses and $0.7 million is included in research and development expenses on the consolidated statements of income.
(7) $0.3 million is included in selling, general and administrative expenses and $1.1 million is included in research and development expenses on the consolidated statements of income.
(8) $0.3 million is included in total cost of sales, $2.3 million is included in selling, general and administrative expenses and $1.9 million is included in research and development expenses on the consolidated statements of income.
(9)  $0.4 million is included in total cost of sales, $4.0 million is included in selling, general and administrative expenses and $2.4 million is included in research and development expenses on the consolidated statements of income.
(10) $0.5 million is included in total cost of sales, $1.8 million is included in selling, general and administrative expenses and $3.9 million is included in research and development expenses on the consolidated statements of income.
(11) Includes abandonment of certain information technology projects.
(12) Includes income related to certain freight forwarder claim settlements, all of which is included in total cost of sales on the consolidated statements of income.
(13) $1.7 million is included in total cost of sales, $2.1 million is included in selling, general and administrative expenses and $1.9 million is included in research and development expenses on the consolidated statements of income.
(14) $0.4 million is included in total cost of sales, $3.9 million is included in selling, general and administrative expenses and $2.7 million is included in research and development expenses on the consolidated statements of income.
(15) $0.8 million is included in total cost of sales, $2.3 million is included in selling, general and administrative expenses and $2.9 million is included in research and development expenses on the consolidated statements of income.
(16) Includes gain related to unearned contingent liabilities recognized upon the acquisition of a business in November 2018.

Supplemental Information
Reconciliation of Net Income (Loss) and Earnings (Loss) per Common Share – Basic and Diluted
to Non-GAAP Net Income (Loss) and Non-GAAP Earnings (Loss) per Common Share – Basic and Diluted
(Unaudited)
 
 	 	Three Months ended
December 31,	 	 	 	 	 	Twelve Months ended
December 31,	 	
 	 	2020	 	 	 	 	2019	 	 	 	 	 	2020	 	 	2019	 	
Net Income (Loss)	 	$	6,114	 	 	 	 	$	(11,624	)	 	 	 	 	$	2,378	 	 	$	(52,982	)	
Acquisition related expenses, amortizations and adjustments	 	 	1,051	 	 	 	 	 	1,357	 	 	 	 	 	 	4,550	 	 	 	5,703	 	
Stock-based compensation expense	 	 	1,778	 	 	 	 	 	1,778	 	 	 	 	 	 	6,834	 	 	 	6,962	 	
Restructuring expenses	 	 	2,581	 	 	 	 	 	1,356	 	 	 	 	 	 	6,229	 	 	 	6,014	 	
Pension expense(1)	 	 	250	 	 	 	 	 	195	 	 	(1)	 	 	 	970	 	 	 	795	 	
Valuation allowance	 	 	(5,420	)	 	 	 	 	5,723	 	 	 	 	 	 	(2,798	)	 	 	42,778	 	
Deferred compensation adjustments	 	 	601	 	 	(2)	 	 	—	 	 	 	 	 	 	(831	)	(2) (3)	 	—	 	
Asset impairments	 	 	—	 	 	 	 	 	—	 	 	 	 	 	 	65	 	 	 	3,872	 	
Settlement income	 	 	—	 	 	 	 	 	—	 	 	 	 	 	 	(28	)	 	 	(746	)	
Gain on contingency	 	 	—	 	 	 	 	 	—	 	 	 	 	 	 	—	 	 	 	(1,230	)	
Tax effect of adjustments to net income (loss)	 	 	(1,716	)	 	 	 	 	(1,251	)	 	 	 	 	 	(4,805	)	 	 	(5,675	)	
Non-GAAP Net Income (Loss)	 	$	5,239	 	 	 	 	$	(2,466	)	 	 	 	 	$	12,564	 	 	$	5,491	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding – basic	 	 	48,111	 	 	 	 	 	47,936	 	 	 	 	 	 	47,996	 	 	 	47,836	 	
Weighted average shares outstanding – diluted	 	 	48,532	 	 	 	 	 	47,936	 	 	 	 	 	 	48,288	 	 	 	47,836	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) per common share - basic	 	$	0.13	 	 	 	 	$	(0.24	)	 	 	 	 	$	0.05	 	 	$	(1.11	)	
Earnings (loss) per common share - diluted	 	$	0.13	 	 	 	 	$	(0.24	)	 	 	 	 	$	0.05	 	 	$	(1.11	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP earnings (loss) per common share - basic	 	$	0.11	 	 	 	 	$	(0.05	)	 	 	 	 	$	0.26	 	 	$	0.11	 	
Non-GAAP earnings (loss) per common share - diluted	 	$	0.11	 	 	 	 	$	(0.05	)	 	 	 	 	$	0.26	 	 	$	0.11	 	
(1) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.
(2) Includes non-cash change in fair value of equity investments held in deferred compensation plans offered to certain employees.
(3) Includes net investment gain of $1.5 million related to the out of period remeasurement to historical cost basis of certain long-term investments held in the Company's stock as part of one of the Company’s deferred compensation plans.