Discontinued Operations

12 Months Ended

Jul. 01, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Note 11—Discontinued Operations

During the third quarter of fiscal 2010, we completed the sale of our video QoE business to Cheetah Technologies, L.P. (“Cheetah”). Cheetah acquired the assets related to the QoE product line and hired the remaining QoE employees. The total purchase price was $2.3 million, including $0.4 million held in escrow as of March 28, 2010. The escrowed funds were subject to forfeiture to satisfy indemnification and other obligations, if any, to Cheetah. The period of escrow for the $0.4 million expired on July 1, 2011 and we recorded a gain of $0.4 million on release of the funds in fiscal 2011. In fiscal 2010, we recognized a gain on sale of discontinued operations of $0.9 million, net of income taxes. This gain reflected $1.9 million in cash received in the third quarter of fiscal 2010, less transaction costs, the net carrying value of assets and liabilities transferred, and other related costs, resulting in a $1.4 million gain on sales of discontinued operations, before income taxes. During fiscal year 2010, we also recognized a loss of $1.5 million on the operating results of QoE during this period. In addition, QoE was no longer shown as a reportable segment within continuing operations and all comparative information from prior periods was updated to reflect this change in fiscal 2010.

Selected financial information related to discontinued operations follows:

	Year Ended
	July 1, 2012		July 3, 2011		June 27, 2010
	(In thousands)
Revenue	$	—	$	—	$	691
Loss on discontinued operations	$	—	$	—	$	(1,454	)
Gain on sale of discontinued operations		—		398		1,423
Income (loss) before income taxes		—		398		(31	)
Income tax provision (benefit)		—		144		(11	)
Income (loss) on discontinued operations, net of tax	$	—	$	254	$	(20	)