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 27, 2013, we had received $0.1 million of such contingent payments. EION is also entitled to receive cash payments of up to $2.0 million upon collection of certain WiMAX accounts receivable, of which $1.6 million had been paid by us to EION and $0.3 million was reversed resulting from the write-down of the corresponding WiMAX accounts receivable. As of December 27, 2013 and June 28, 2013, our accrued liabilities related to the disposition of the WiMAX business were $0.1 million and $0.1 million, respectively.

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. The loss incurred in the first two quarters of fiscal 2013 was 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. The income incurred in the first two quarters of fiscal 2014 was primarily due to recovery of certain WiMAX deferred cost of sales that was previously written down.

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



	Quarter Ended					Two Quarters Ended
	December 27, 2013		December 28, 2012			December 27, 2013		December 28, 2012
	(In millions)
Revenues	$	—	$	—		$	—	$	0.1
Income (loss) from operations related to WiMAX	$	0.3	$	(0.4	)	$	0.4	$	(1.8	)
Gain (loss) on disposal	—		0.1			—		0.1
Income taxes	—		—			—		—
Income (loss) from discontinued operations	$	0.3	$	(0.3	)	$	0.4	$	(1.7	)