DISCONTINUED OPERATIONS

3 Months Ended

Jun. 30, 2014

DISCONTINUED OPERATIONS:

DISCONTINUED OPERATIONS

4.DISCONTINUED OPERATIONS:

On May 30, 2014, the Company substantially completed the sale of its U.K. call center operation, 2Touch, to Parseq Ltd., a European business process outsourcing service provider.  Some assets of the 2Touch operation are subject to a second closing, expected to occur during the current fiscal year.  The business qualified for treatment as discontinued operations during the current fiscal quarter.  The results of operations, cash flows, and the balance sheet amounts pertaining to 2Touch have been classified as discontinued operations in the condensed consolidated financial statements.

The 2Touch business unit was included in the Other services segment in the Company’s segment results presented in prior periods.  However, in the current fiscal quarter, the 2Touch business unit is excluded from segment results and segregated as discontinued operations.

Summary results of operations of the 2Touch business unit for the three months ended June 30, 2014 and 2013, respectively, are segregated and included in earnings (loss) from discontinued operations, net of tax, in the condensed consolidated statements of operations and are as follows (dollars in thousands):

	For the quarter ended June 30
	2014			2013
Revenues	$	5,762		$	9,015
Earnings from discontinued operations before income taxes	$	343		$	614
Loss on sale of discontinued operations before income taxes	(1,875		)	—
Income taxes	—			(22		)
Earnings (loss) from discontinued operations, net of tax	$	(1,532	)	$	592

The carrying amounts of the major classes of assets and liabilities of the 2Touch business unit are segregated and included in assets from discontinued operations and liabilities from discontinued operations in the condensed consolidated balance sheets and are as follows (dollars in thousands):

	June 30, 2014		March 31,  2014
Trade accounts receivable, net	$	886	$	6,451
Other current assets	5		881
Other assets, net	249		—
Assets from discontinued operations	$	1,140	$	7,332
Trade accounts payable and accrued expenses	$	380	$	4
Accrued payroll and related expenses	178		1,790
Other accrued expenses	1,040		2,350
Deferred revenue	83		106
Liabilities from discontinued operations	$	1,681	$	4,250