Annual report pursuant to Section 13 and 15(d)

Discontinued operations

v2.4.0.6
Discontinued operations
 12 Months Ended
Sep. 30, 2012
Discontinued operations  
Discontinued operations

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. The results of this business have been classified within discontinued operations below.

 

On May 2, 2008, the Company sold its Unison MAXIMUS, Inc. subsidiary for $6.5 million, including a promissory note of $6.4 million, which is fully reserved. The Company recorded a gain on sale of $0.1 million and $0.3 million for the years ended September 30, 2012 and 2011, respectively. 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,

 

 

 

2012

 

2011

 

2010

 

Revenue

 

$

—

 

$

—

 

$

27,054

 

Income (loss) from operations before income taxes

 

$

—

 

$

(219

)

$

1,664

 

Provision for (benefit from) income taxes

 

—

 

(86

)

624

 

Income (loss) from discontinued operations

 

$

—

 

$

(133

)

$

1,040

 

Gain (loss) on disposal before income taxes

 

$

57

 

$

(1,390

)

$

(45

)

Provision for (benefit from) income taxes

 

23

 

(549

)

(17

)

Gain/(loss) on disposal

 

$

34

 

$

(841

)

$

(28

)

Income (loss) from discontinued operations

 

$

34

 

$

 (974

)

$

1,012

 

 

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.