Discontinued operations

9 Months Ended

Jul. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations

Note 2 - Discontinued operations

During 2013, the Company sold its RF Neulink and RadioMobile divisions, which together had comprised the Company’s RF Wireless segment. The divisions were sold pursuant to asset purchase agreements, whereby no purchase price was paid at the closing. Rather, the agreements stipulated royalty payments from each of the purchasers over a three year period. For the three and nine months ended July 31, 2014, the Company recognized approximately $2,000 and $16,000, respectively, of royalty income related to the RF Neulink Agreement, which amounts have been included within discontinued operations. For the three and nine months ended July 31, 2014, the Company recognized approximately $21,000 and $53,000, respectively, of royalty income related to the RadioMobile Agreement, which amounts have been included within discontinued operations.

The following summarized financial information related to the RF Neulink and RadioMobile divisions is segregated from continuing operations and reported as discontinued operations for the three and nine months ended July 31, 2014 and 2013 (in thousands):

	Three Months Ended July 31,				Nine Months Ended July 31,
	2014		2013		2014		2013
Royalties	$	23	$	-	$	69	$	-
Net sales		-		181		-		1,110
Total revenue		23		181		69		1,110
Cost of sales		-		476		-		926
Gross profit (loss)		23		(295)		69		184
Operating expenses		4		304		17		913
Operating income (loss)		19		(599)		52		(729)
Provision (benefit) for income taxes		5		(239)		20		(284)
Income (loss) from discontinued operations, net of tax	$	14	$	(360)	$	32	$	(445)