EXHIBIT 12.1
STATEMENT OF CALCULATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND PREFERRED DIVIDENDS
For the purpose of calculating the ratio of earnings to fixed charges, “earnings” represent income from continuing operations before income taxes, plus income distributed to us by subsidiaries we account for as equity investments, plus fixed charges. “Fixed charges” consist of (a) interest expensed and capitalized; (b) amortized premiums, discounts and capitalized expenses related to indebtedness; (c) an estimate of the interest within rental expenses; and (d) preference security dividend requirements of consolidated subsidiaries.
Because during the relevant periods STAAR has had not had any outstanding class or series of preferred stock that paid dividends in a fixed amount or in preference to any other class of securities, the ratio of earnings to combined fixed earnings and preferred dividends is the same as the ratio of earnings to fixed charges, which was computed as follows:
Year Ended | Quarter Ended | |||||||||||||||||||||||
(in thousands) | Dec 29, 2006 | Dec 28, 2007 | Jan 2, 2009 | Jan 1, 2010 | Dec 31, 2010 | April 1, 2011 | ||||||||||||||||||
Earnings (Loss): | ||||||||||||||||||||||||
Earnings (Loss) before Income Taxes And Minority Investment | (15,045 | ) | (16,349 | ) | (23,875 | ) | (5,748 | ) | (3,681 | ) | 603 | |||||||||||||
Income/(Loss) from Equity Investee | 114 | (280 | ) | — | — | — | — | |||||||||||||||||
Earnings (Loss) Before Fixed Charges | (14,931 | ) | (16,629 | ) | (23,875 | ) | (5,748 | ) | (3,681 | ) | 603 | |||||||||||||
Fixed Charges | ||||||||||||||||||||||||
Int. Exp (Inc. Amort. of Debt Costs) | 261 | 485 | 897 | 1,317 | 896 | 154 | ||||||||||||||||||
Estimated Interest within Rental Expenses | 297 | 334 | 660 | 726 | 594 | 175 | ||||||||||||||||||
Total Fixed Charges | 558 | 819 | 1,557 | 2,043 | 1,490 | 329 | ||||||||||||||||||
Total Earnings (Loss) | (14,373 | ) | (15,810 | ) | (22,318 | ) | (3,705 | ) | (2,191 | ) | 274 | |||||||||||||
Fixed Charges | 558 | 819 | 1,557 | 2,055 | 1,490 | 329 | ||||||||||||||||||
Ratio of Earnings (Loss) to Fixed Charges(1) | — | — | — | — | — | 0.83 |
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(1) | For the fiscal years ended December 29, 2006, December 28, 2007, January 2, 2009, January 1, 2010 and December 31, 2010, our earnings were insufficient to cover fixed charges by $14.9 million, $16.6 million, $23.9 million, $5.7 million and $3.7 million, respectively. |