|3 Months Ended|
Apr. 30, 2012
5. Discontinued Operations
On May 4, 2012, we completed the sale of the broadcast servers and storage business and received a cash payment, net of certain adjustments, of $4.9 million. The financial results of the broadcast server and storage business for the first quarter of fiscal 2013 was a loss of $2.0 million on revenues of $1.5 million and was included as a discontinued operation in our Consolidated Statement of Operations.
On May 21, 2012, we completed the sale of ourMedia Services business, On Demand Group (ODG), to Avail Media Inc. for a purchase price of $27 million plus working capital adjustments of approximately $3.2 million in cash less a reduction of certain liabilities of $2.7 million and less $5.7 million cash being held in escrow for a total payment received of $21.8 million. We believe that $4.0 million held in escrow relating to an indemnification will be released to us during our second fiscal quarter of fiscal year 2013. In addition, we received a separate payment of $1.0 million for the payment of certain intercompany indebtedness. Lastly, we incurred investment advisor fees of approximately $1.0 million as well as legal fees, which are expensed as incurred. The financial result of the Media Services business for the first quarter of fiscal 2013 was a loss of $17.3 million which included a non-cash goodwill impairment charge of $17 million. The financial results for this business unit was included as a discontinued operation in our Consolidated Statement of Operations as ODG's results were previously reported as a separate operating segment.
The following table details selected financial information for our former Servers and Storage and Media Services business units:
The major classes of assets and liabilities related to discontinued operations are as follows:
The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).
Reference 1: http://www.xbrl.org/2003/role/presentationRef