|
13. Discontinued Operations
On September 30, 2010, the Company sold its ERP business for $5.6 million, net of transaction costs of $0.7 million, and recognized a pre-tax loss on sale of less than $0.1 million. The Company had previously recognized a loss on sale of $1.3 million during the fourth quarter of fiscal 2009. At completion of the sale, the buyer agreed to pay $1.7 million with the balance payable following completion of certain procedures, including the preparation of a final balance sheet and working capital adjustment. During the quarter ended March 31, 2011, the buyer has informed us that they dispute the valuation of certain assets transferred at the time of sale and are withholding payment of the remaining balance until these matters are resolved. The Company established a reserve of $1.0 million during the quarter ended March 31, 2011 pending resolution of this matter.
The following table summarizes the operating results of the discontinued operations included in the Consolidated Statements of Operations (in thousands). During the sale negotiations for the ERP business in 2010, a contract previously included within discontinued operations was not transferred and, accordingly, is now included in continuing operations for all periods shown. Accordingly, the results for discontinued operations differ from those disclosed at June 30, 2010.
|
|
|
Three Months
Ended June 30,
|
|
Nine Months
Ended June 30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
|
|
$
|
6,792
|
|
$
|
|
|
$
|
19,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations
|
|
$
|
(107
|
)
|
1,920
|
|
(545
|
)
|
(32
|
)
|
|
Provision for (benefit from) income taxes
|
|
(42
|
)
|
720
|
|
(215
|
)
|
(12
|
)
|
|
Income (loss) from discontinued operations
|
|
$
|
(65
|
)
|
$
|
1,200
|
|
$
|
(330
|
)
|
$
|
(20
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
(5
|
)
|
|
|
(1,093
|
)
|
|
|
|
Benefit from income taxes
|
|
(2
|
)
|
|
|
(431
|
)
|
|
|
|
Loss on disposal
|
|
(3
|
)
|
|
|
(662
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations
|
|
$
|
(68
|
)
|
$
|
1,200
|
|
$
|
(992
|
)
|
$
|
(20
|
)
|
|