Our effective tax rate for fiscal 2012 reflects net discrete tax benefits of
Excluding discrete tax items in both periods, our effective tax rate for fiscal 2013 would have been 36.0% as compared to 35.0% for fiscal 2012. The increase from 35.0% to 36.0% is principally attributable to the product and geographical mix changes in our consolidated results of operations for fiscal 2013. Our income tax expense for fiscal 2013 also benefited from the recording of twelve months of federal and experimentation credits as compared to five months in fiscal 2012, as the federal research and experimentation credit had previously expired on
December 31, 2011. Based on our expected 2014 business outlook, and excluding the impact of any potential discrete tax items, our fiscal 2014 estimated effective tax rate is expected to approximate 36.5% which represents an increase from the 36.0% in fiscal 2013. Our full year U.S. GAAP effective income tax rate in fiscal 2014 will depend on various factors including, but not limited to, future enacted tax legislation, the actual geographic composition of our revenue and pre-tax income, the effective settlement of income tax audits, future acquisitions, and any future non-deductible expenses. Our federal income tax returns for fiscal 2010 through 2013 are subject to potential future IRSaudit. Future tax assessments or settlements could have a material adverse effect on our consolidated results of operations and financial condition.
Comparison of Fiscal 2012 and 2011
Net Sales. Consolidated net sales were
$425.1 millionand $612.4 millionfor fiscal 2012 and 2011, respectively, representing a decrease of $187.3 million, or 30.6%. As further discussed below, the significant period-over-period decrease reflects lower net sales in our telecommunications transmission segment, and more notably in our mobile data communications segment, partially offset by higher sales in our RF microwave amplifiers segment. Telecommunications transmission Net sales in our telecommunications transmission segment were $210.0 millionand $232.0 millionfor fiscal 2012 and 2011, respectively, a decrease of $22.0 million, or 9.5%. This decrease reflects significantly lower sales in our over-the-horizon microwave systems product line and, to a lesser extent, lower sales in our satellite earth station product line. Sales of our satellite earth station products were lower during fiscal 2012 as compared to fiscal 2011. Although sales related to international customers were higher in fiscal 2012 as compared to fiscal 2011, sales related to the U.S. government were lower due to ongoing U.S. government budget pressures. Sales of our over-the-horizon microwave systems significantly decreased during fiscal 2012 as compared to fiscal 2011, primarily as a result of lower sales related to a nearly completed $36.3 millioncontract whose end-user is a North African government, and a completed $11.0 millioncontract whose end-user is a Middle Eastern government. These decreases were offset, in part, by shipments related to orders for our MTTS for end-use by the U.S. Army. In fiscal 2012, we began recording revenue related to a $58.6 millioncontract (including $3.6 millionof additional orders received in fiscal 2013) we received in June 2012from a domestic prime contractor to design and furnish a telecommunications system for the same North African government end-customer.