Divestiture

In March 2011, our board of directors approved a plan for the sale of our WiMAX business. On September 2, 2011, we sold to EION Networks, Inc. (“EION”) our WiMAX business and related assets consisting of certain technology, inventory and equipment. We assigned customer contracts for WiMAX products and maintenance and agreed to license related patents to EION. We also agreed to indemnification for customary seller representations and warranties, and the provision of transitional services. As consideration for the sale of assets, EION agreed to pay us $0.4 million in cash and up to $2.8 million in additional cash payments contingent upon specific factors related to future WiMAX business performance. Currently we are not able to estimate the amount of consideration that we will receive beyond the $0.4 million nor the probability of any such payment. Accordingly, any future consideration will be recorded as a contingent gain in the period that it is received. As of December 28, 2012, we had received $0.1 million of such contingent payments. EION is entitled to receive cash payments up to $2.0 million upon collection of certain WiMAX accounts receivable, of which $1.5 million had been paid by us to EION as of December 28, 2012.

In the third quarter of fiscal 2011, we began accounting for the WiMAX business as a discontinued operation and, therefore, the operating results of our WiMAX business are included in discontinued operations in our condensed consolidated financial statements for all periods presented. We recognized a $2.0 million loss on disposition of the WiMAX business in the first two quarters of fiscal 2012. The loss incurred in the first two quarters of fiscal 2013 were primarily due to write-down of certain WiMAX deferred cost of sales that were not transferred to EION and certain expenses we incurred to support a remaining customer obligation. As of December 28, 2012 and June 29, 2012, our accrued liabilities related to the disposition of the WiMAX business were $0.5 million and $0.6 million, respectively.

Summary results of operations for the WiMAX business were as follows:



	Quarter Ended						Two Quarters Ended
	December 28, 2012			December 30, 2011			December 28, 2012			December 30, 2011
	(In millions)
Revenues	$	—		$	(1.7	)	$	0.1		$	1.3
Loss from operations related to WiMAX	$	(0.4	)	$	(2.8	)	$	(1.8	)	$	(3.7	)
Gain (loss) on disposal	0.1			—			0.1			(2.0		)
Income taxes	—			—			—			(0.2		)
Loss from discontinued operations	$	(0.3	)	$	(2.8	)	$	(1.7	)	$	(5.9	)