Sale Of TSG Business

3 Months Ended

Jun. 30, 2011

Sale Of TSG Business

Sale Of TSG Business

3. Sale of TSG Business

On May 28, 2011, the Company entered into a definitive agreement to sell its TSG business for an aggregate purchase price of $64.0 million in cash, subject to a possible downward adjustment based on final working capital, to OnX Enterprise Solutions Limited and its subsidiary OnX Acquisition LLC (together, "OnX"), a leading IT solutions provider based in Toronto, Canada. On July 28, 2011, the Company's shareholders approved this sale and the transaction closed on August 1, 2011, the date on which certain other contingencies specified in the agreement were satisfied. Upon the close of the transaction, the aggregate purchase price of $64.0 million was reduced by the payment of agreed-upon fees of $3.3 million for severance costs and $1.2 million for third-party services in support of the transition, resulting in net proceeds received by the Company of $59.5 million. Since the transaction did not qualify as discontinued operations until after June 30, 2011 due to the outstanding contingencies related to the transaction, the assets and liabilities of the TSG business are not classified as discontinued operations in the Company's accompanying Condensed Consolidated Balance Sheets and the results of operations of the TSG business are not classified as discontinued operations in the Company's accompanying Condensed Consolidated Statements of Operations.

Major Categories of Assets and Liabilities Sold

At June 30, 2011 and March 31, 2011, the major categories of assets and liabilities of the TSG business were comprised of the following:

	June 30, 2011		March 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	4,862	$	4,214
Accounts receivable, net		95,158		91,719
Inventories, net		9,340		9,711
Prepaid expenses and other current assets		1,824		484
Total current assets		111,184		106,128
Goodwill		5,358		5,358
Other non-current assets		964		1,250
Property and equipment, net		1,194		1,380
Total assets	$	118,700	$	114,116
LIABILITIES
Current liabilities:
Accounts payable	$	69,473	$	75,598
Deferred revenue		2,487		3,919
Accrued liabilities		7,436		9,402
Capital lease obligations — current		152		150
Total current liabilities		79,548		89,069
Capital lease obligations — non-current		403		441
Other non-current liabilities		50		180
Total liabilities	$	80,001	$	89,690