10. DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Nov. 30, 2012

Notes to Financial Statements

Revenue and expenses of discontinued operations

The revenue and expenses of discontinued operations for the first fiscal quarter of 2011 and the fiscal year ended August 31, 2011 are as follows:

(in thousand)		Period from 09/01/11 to 11/30/11			For the fiscal year ended 08/31/11
Net sales	$	479		$	2,981
Cost of sales		265			1,381
Gross profit		214			1,600
Selling, general and administrative		563			1,466
Research and development		55			64
Total operating expenses		618			1,530
Income (Loss) from discontinued operations		(404	)		70
Other income		–			2
Income (Loss) from discontinued operations before income taxes		(404	)		72
(Provision for) income taxes		154			–
Results from discontinued operations, net of tax	$	(250	)	$	72

Carrying amount of the assets and liabilities of discontinued operations

The carrying amount of the assets and liabilities of discontinued operations at August 31, 2011 and just prior to the date of the sale on November 30, 2011 were as follows:

(in thousands)		11/30/11		08/31/11
Cash and cash equivalents	$	6	$	143
Receivables, net		357		603
Inventory		392		392
Prepaid and other current assets		33		57
Capitalized software development costs, net		212		220
Property and equipment, net		91		120
Total Assets		1,091		1,535
Accounts payable		72		116
Accrued payroll and other expenses		109		219
Accrued warranty and service costs		37		44
Total Liabilities		218		379
Net liabilities of discontinued operations	$	873	$	1,153