Discontinued Operations

3 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Sale of Photovoltaics Business

In the fiscal year ended September 30, 2015 EMCORE completed the sale of the company's Photovoltaics Business to SolAero pursuant to the Photovoltaics Agreement under which SolAero acquired substantially all of the assets, and assumed substantially all of the liabilities, primarily related to or used in connection with the Company's Photovoltaics Business for $149.9 million in cash.

On December 22, 2015, we settled all of the outstanding rights and obligations of a solar power venture in Spain, including outstanding non-current receivables, for a payment of $0.7 million. The outstanding non-current receivables had a net book value of $0 at the time of settlement as they were fully allowed for previously. The resulting gain was recorded in the discontinued operations of the Photovoltaics Business for the three months ended December 31, 2015.

The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business:

	For the three months ended December 31,
(in thousands)	2016			2015
Revenue	$	—		$	—
Cost of revenue	—			—
Gross profit	—			—
Operating expense (income)	3			(787		)
(Loss) income from discontinued operations before income tax expense	(3		)	787
Income tax expense	—			(9		)
(Loss) income from discontinued operations, net of tax	$	(3	)	$	778

Included in discontinued operations of the Photovoltaics Business during the three months ended December 31, 2015 were $0.1 million of New Mexico incentive tax credits received. There were no incentive tax credits received during the three months ended December 31, 2016.

Sale of Digital Products Business

In the fiscal year ended September 30, 2015 EMCORE completed the sale of the company's Digital Products Business to NeoPhotonics pursuant to the Digital Products Agreement, under which NeoPhotonics acquired certain assets, and certain liabilities, related to the Company's Digital Products Business for an aggregate purchase price of $17.5 million.

In December 2015, we entered into an agreement to terminate our lease and related obligations associated with a facility in Newark, California which we abandoned effective February 2016 following the sale of the Digital Products Business. As a result of this agreement, we paid $0.2 million and recorded a gain of $0.3 million on the lease termination in the discontinued operations of the Digital Products Business during the three months ended December 31, 2015. See Note 8 - Accrued Expenses and Other Current Liabilities.

The following table presents the statements of operations for the discontinued operations of the Digital Products Business:

	For the three months ended December 31,
(in thousands)	2016			2015
Revenue	$	—		$	—
Cost of revenue	1			(49		)
Gross (loss) profit	(1		)	49
Operating expense (income)	5			(298		)
(Loss) income from discontinued operations before income tax expense	(6		)	347
Income tax expense	—			(4		)
(Loss) income from discontinued operations, net of tax	$	(6	)	$	343

There were no incentive tax credits received from the Digital Products Business during the three months ended December 31, 2016 and 2015.