Note 5 - Business Disposition and Wind Down

9 Months Ended

Sep. 30, 2011

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

5.   Business Disposition and Wind Down

The Company sold its business of providing data storage and software solutions and products (the “DPS Business”) to PMC-Sierra on June 8, 2010. The purchase price for the DPS Business was $34.3 million, of which $29.3 million was received by the Company upon the closing of the transaction and the remaining $5.0 million was withheld in an escrow account (“DPS Holdback”).  The DPS Holdback was released to the Company on June 8, 2011, one year after the consummation of the sale, except for $0.1 million to provide for one disputed claim, and was recognized as contingent consideration in discontinued operations when received. The $0.1 million was received in the three-month period ended September 30, 2011.

As previously disclosed, in July 2011, the Company ceased its efforts to sell or license its intellectual property from the Aristos Business and finalized the wind down of such business.

As such , the disposed DPS Business and wound down Aristos Business are reflected as discontinued operations in the accompanying financial statements and prior periods have been reclassified to conform to this presentation. Revenues and the components of income related to the DPS Business and Aristos Business included in discontinued operations in the three-month and nine-month periods ended October 1, 2010 follow:

	Three-Month Period Ended		Nine-Month Period Ended
	October 1, 2010		October 1, 2010
	(in thousands)
Revenues	$	4,783	$	37,213
Income (loss) from discontinued operations before income taxes	$	3,031	$	2,401
Benefit from (provision for) income taxes		17		(2,512	)
Loss from discontinued operations, net of taxes	$	3,048	$	(111	)

During the nine-month period ended September 30, 2011 (occurred during the three-month period ended July 1, 2011), the Company sold patents from its DPS Business for $1.9 million, which was included in income from discontinued operations. There was no financial activity from the Aristos Business during the nine-month period ended September 30, 2011.