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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
THREE MONTHS SIX MONTHS
YEAR ENDED DECEMBER 31, ENDED JUNE 30, ENDED JUNE 30,
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1993 1994 1995 1996 1997 1997 1998 1997 1998
---- ------ ------- -------- ------- ------ -------- ------ --------
Earnings:
Income (loss) before income
taxes and extraordinary
items..................... $361 $ 943 $ 6,193 $(19,842) $(9,812) $ (797) $(30,723) $ 294 $(36,933)
Fixed charges:
Interest expense.......... -- 651 5,625 8,448 11,573 2,827 3,770 5,393 7,201
Rental expense interest
factor(1)............... 35 60 178 1,133 1,700 425 425 850 850
---- ------ ------- -------- ------- ------ -------- ------ --------
Total fixed
charges............ 35 711 5,803 9,581 13,273 3,252 4,195 6,243 8,051
---- ------ ------- -------- ------- ------ -------- ------ --------
Earnings (loss) available to
cover fixed charges......... $396 $1,654 $11,996 $(10,261) $ 3,461 $2,455 $(26,528) $6,537 $(28,882)
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Combined fixed charges and
preferred stock dividend
requirements(2)............. $ 35 $1,598 $10,390 $ 14,581 $18,145 $4,502 $ 5,123 $8,743 $ 9,906
==== ====== ======= ======== ======= ====== ======== ====== ========
Ratio of earnings (loss) to
fixed charges(3)............ 11.3x 1.0x 1.2x -- -- -- -- -- --
==== ====== ======= ======== ======= ====== ======== ====== ========
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(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, the three months ended June
30, 1997 and 1998 and the six months ended June 30, 1997 and 1998, earnings
were inadequate to cover Fixed Charges by $24.8 million, $14.7 million, $2.0
million, $31.7 million, $2.2 million and $38.8 million, respectively. For
the year ended December 31, 1997 and the six months ended June 30, 1998,
giving effect to the Note Offering as if it has occurred on January 1, 1997,
interest expense increased by approximately $3.3 million and $0.1 million,
respectively and earnings were inadequate to cover fixed charges on a pro
forma basis by $18.0 million and $38.9 million, respectively.