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21. Discontinued Operations
On September 30, 2010, the Company sold its ERP division for cash proceeds of $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 previously recorded a pre-tax loss on sale of $1.3 million in fiscal 2009. In 2011 the Company resolved a dispute with the buyer regarding the purchase price adjustment clause in their contract and recorded a loss of $1.7 million.
On May 2, 2008, the Company sold its Unison MAXIMUS, Inc. subsidiary for $6.5 million, including a promissory note of $6.4 million. The promissory note has a current value of $3.8 million, which has been fully reserved since the disposal. The Company recorded a gain on sale of $0.3 million in the 2011 fiscal year, with no gains recorded in earlier periods. The Company continues to monitor the payments on the note but no further gains are certain at this time.
The following table summarizes the operating results of the discontinued operations included in the Consolidated Statements of Operations (in thousands):
|
|
|
Year Ended September 30,
|
|
|
|
|
2011
|
|
2010
|
|
2009
|
|
|
Revenue
|
|
$
|
|
|
$
|
27,054
|
|
$
|
29,393
|
|
|
Income (loss) from operations before income taxes
|
|
$
|
(219
|
)
|
$
|
1,664
|
|
$
|
(9,478
|
)
|
|
Provision for (benefit from) income taxes
|
|
(86
|
)
|
624
|
|
(3,744
|
)
|
|
Income (loss) from discontinued operations
|
|
$
|
(133
|
)
|
$
|
1,040
|
|
$
|
(5,734
|
)
|
|
Loss on disposal before income taxes
|
|
$
|
(1,390
|
)
|
$
|
(45
|
)
|
$
|
(686
|
)
|
|
Provision for (benefit from) income taxes
|
|
(549
|
)
|
(17
|
)
|
881
|
|
|
Loss on disposal
|
|
$
|
(841
|
)
|
$
|
(28
|
)
|
$
|
(1,567
|
)
|
|
Income (loss) from discontinued operations
|
|
$
|
(974
|
)
|
$
|
1,012
|
|
$
|
(7,301
|
)
|
The Company made net payments of approximately $0.7 million in fiscal 2011 related to discontinued operations. These payments principally related to the settlement of customer and employee payments following the sale of the business.
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