Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.0.8
Discontinued Operations
 12 Months Ended
Jan. 31, 2014
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

3. Discontinued Operations

On May 4, 2012, we completed the sale of our broadcast servers and storage business and received a cash payment, net of certain adjustments, of $4.9 million and recorded a total gain in this transaction, net of tax in the amount of $1.5 million. The financial results from this divested business are included in discontinued operations in our consolidated statements of operations and comprehensive loss.

On May 21, 2012, we completed the sale of our media services business, ODG, to Avail Media, Inc. (“Avail”) for a purchase price of approximately $27 million plus certain working capital adjustments. We recorded a $15.5 million loss in our consolidated statements of operations and comprehensive loss from the sale of ODG, primarily arising from a related $17.0 million goodwill impairment charge that we recorded in the first quarter of fiscal 2013. The financial results from our former media services segment are included as discontinued operations in our consolidated statements of operations and comprehensive loss.

 

The following table details selected financial information for our former broadcast servers and storage and media services business units for the periods presented (amounts in thousands):

 

    For the Fiscal Year Ended
January 31, 2014 		    For the Fiscal Year Ended
January 31, 2013 		    For the Fiscal Year Ended
January 31, 2012 		 
    Servers and
Storage		     Media
Services		     Total
Discontinued
Operations		     Servers and
Storage		     Media
Services		     Total
Discontinued
Operations		     Servers and
Storage		     Media
Services		     Total
Discontinued
Operations		  

Revenues:

                  

Products

   $ 46      $ —        $ 46      $ 1,031      $ —        $ 1,031      $ 6,159      $ —        $ 6,159   

Services

     —          —          —          835        9,315        10,150        5,720        32,913        38,633   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

   $ 46      $ —        $ 46      $ 1,866      $ 9,315      $ 11,181      $ 11,879      $ 32,913      $ 44,792   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(Loss) income from discontinued operations:

                  

(Loss) income from discontinued operations, before tax

   $ (803 )    $ —        $ (803 )    $ (1,854 )    $ (194 )    $ (2,048 )    $ (2,400 )    $ 2,109      $ (291 ) 

Income tax provision (benefit)

     —          —          —          84        (13 )      71        100        312        412   

Income in investment in affiliates

     —          —          —          —          (174 )      (174 )      —          92        92   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(Loss) income from discontinued operations, after tax

   $ (803 )    $ —        $ (803 )    $ (1,938 )    $ (355 )    $ (2,293 )    $ (2,500 )    $ 1,889      $ (611 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Asset Placed Back in Service

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.

During 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. 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 group, which we consider to be approximately seven years.