1
EXHIBIT 12.1
PHASE METRICS, INC.
STATEMENT REGARDING COMPUTATION OF RATIOS
(IN THOUSANDS, EXCEPT RATIOS)
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
YEAR ENDED DECEMBER 31,
------------------------------------------------
1993 1994 1995 1996 1997
---- ------ ------- -------- -------
Earnings:
Income (loss) before income taxes and
extraordinary items.................. $361 $ 943 $ 6,193 $(19,842) $(9,812)
Fixed charges:
Interest expense..................... -- 651 5,625 8,448 11,573
Rental expense interest factor(1).... 35 60 178 1,133 1,700
---- ------ ------- -------- -------
Total fixed charges............. 35 711 5,803 9,581 13,273
---- ------ ------- -------- -------
Earnings (loss) available to cover fixed
charges................................. $396 $1,654 $11,996 $(10,261) $ 3,461
==== ====== ======= ======== =======
Combined fixed charges and preferred stock
dividend requirements(2)................ $ 35 $1,023 $ 8,803 $ 12,581 $16,196
==== ====== ======= ======== =======
Ratio of earnings (loss) to fixed
charges(3).............................. 11.3x 1.0x 1.2x -- --
==== ====== ======= ======== =======
- ---------------
(1) The portion of operating lease rental expense that is representative of the
interest factor is deemed to be one-third of total operating lease rental
expense.
(2) During loss periods, a combined statutory rate of 40% was used for purposes
of determining the pre-tax earnings required to cover the preferred stock
dividend requirements.
(3) For the years ended December 31, 1996 and 1997, earnings were inadequate to
cover Fixed Charges by $24.8 and $14.7 million, respectively. For the year
ended December 31, 1997, giving effect to the Note Offering as if it has
occurred on January 1, 1997, interest expense increased by approximately
$3.0 million and earnings were inadequate to cover fixed charges on a pro
forma basis by $17.7 million.