Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.8
Discontinued Operations
9 Months Ended
Oct. 31, 2013
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

5. Discontinued Operations

The following table details selected financial information for our former broadcast servers and storage and media services businesses for the three and nine months ended October 31, 2013 and 2012 (amounts in thousands):

 

     Three Months Ended October 31, 2013     Nine Months Ended October 31, 2013  
     Servers and
Storage
    Media
Services
    Total
Discontinued
Operations
    Servers and
Storage
    Media
Services
    Total
Discontinued
Operations
 

Revenues:

    

Products

   $ —        $ —        $ —        $ 46      $ —        $ 46   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ —        $ —        $ —        $ 46      $ —        $ 46   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations:

            

Loss from discontinued operations, before tax

   $ (90   $ —        $ (90   $ (744   $ —        $ (744

Income tax provision

     131        —          131        —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations, after tax

   $ (221   $ —        $ (221   $ (744   $ —        $ (744
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended October 31, 2012     Nine Months Ended October 31, 2012  
     Servers and
Storage
    Media
Services
    Total
Discontinued
Operations
    Servers and
Storage
    Media
Services
    Total
Discontinued
Operations
 

Revenues:

    

Products

   $ 170      $ —        $ 170      $ 1,010      $ —        $ 1,010   

Services

     56        —          56        782        9,315        10,097   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 226      $ —        $ 226      $ 1,792      $ 9,315      $ 11,107   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations:

            

Loss from discontinued operations, before tax

   $ 183      $ —        $ 183      $ (2,101   $ (248   $ (2,349

Income tax provision

     60        36        96        110        22        132   

Loss in investment in affiliates

     —          —          —          —          (174     (174
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations, after tax

   $ 123      $ (36   $ 87      $ (2,211   $ (444   $ (2,655
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

We received $4.0 million previously held in escrow by the buyer of our media services business during fiscal 2014.

Asset Placed Back in Service

In fiscal 2012, as a result of the divestiture of our former broadcast servers and storage business, we determined we would no longer utilize our facility in Greenville, New Hampshire as an active operation and placed the building on the market for sale. As a result, we classified the building asset group as an asset held for sale as of January 31, 2012 at a value of $0.7 million. During fiscal 2013, to be more competitive in the real estate market in which the property is located, we reduced the selling price of the building to $0.5 million, which we believed to be a reasonable selling price.

During the third quarter of fiscal 2014 we determined that the building asset group no longer met the criteria for an asset held for sale in accordance with ASC 360-10-45-9, “Property, Plant, and Equipment – Impairment or Disposal of Long-Lived Assets.” Therefore, we placed the asset group back in service as an asset held and used as of October 31, 2013.

As a result of this reclassification we were required by ASC 360-10 to place the building asset group back in service at the lower of its carrying value before the asset was classified as held for sale, adjusted for any depreciation that would have been recognized had the asset been continuously classified as held and used, or the fair value at the date of the subsequent decision to place it back in service. We believe the fair value at the date of the subsequent decision to place the asset group back in service is the lower of the two. We determined that the remaining estimated useful life of the building asset group should be based on the remaining useful life of the primary asset of the building asset group, which we consider to be approximately seven years.

 .