date:May 19, 2014
y due to the integration of the HN acquisition.
Consolidated gross profit increased by 46% to $1.4 million with consolidated gross margins improving from 9.9% of revenues in Q1 2013 to 18.4% in Q1 2014. Operating expenses increased to $4.1 million in the first quarter of 2014 compared to $3.7 million in the 2013 period. The increase in operating expenses is attributable to a $500,000 non-cash intangible amortization charge and a $250,000 increase in SGA expenses for acquisition costs. Both item