Discontinued Operations (Tables)

6 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

At September 30, 2015, the carrying amounts of major classes of assets and liabilities of discontinued operations included in the Consolidated Balance Sheet was as follows (in thousands):

	September 30, 2015
Current assets:
Accounts receivable, net	$	1,417
Deferred tax assets	127
Other current assets	80
Total current assets	1,624
Property, equipment and improvements, net	18
Identifiable intangible assets, net	1,531
Goodwill	1,914
Deferred tax assets (1)	(589		)
Total assets of discontinued operations	$	4,498
Current liabilities:
Accounts payable	$	50
Accrued compensation	1,346
Other current liabilities	85
Total current liabilities	1,481
Other non-current liabilities	95
Total liabilities of discontinued operations	$	1,576

(1) As of September 30, 2015, the we had a net deferred income tax asset related to the United States federal jurisdiction. That net deferred income tax asset position included a deferred income tax liability of $589 thousand related to Etherios which was entirely in the United States federal tax jurisdiction.

(Loss) income from discontinued operations, after tax, as presented in the Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2016 and 2015 is as follows (in thousands):

	Three months ended March 31,						Six months ended March 31,
	2016			2015			2016			2015
Service revenue	$	—		$	2,750		$	891		$	4,255
Cost of service	—			1,907			713			4,047
Gross profit	—			843			178			208
Operating expenses:
Sales and marketing	—			424			148			981
Research and development	—			499			103			978
General and administrative	—			191			43			604
Restructuring	—			106			—			106
Total operating expenses	—			1,220			294			2,669
Loss from discontinued operations, before income taxes	—			(377		)	(116		)	(2,461		)
(Loss) gain on sale of discontinued operations, before income taxes	(42		)	—			2,870			—
Total (loss) income from discontinued operations, before income taxes	(42		)	(377		)	2,754			(2,461		)
Income tax expense (benefit) on discontinued operations	47			(161		)	(476		)	(888		)
(Loss) income from discontinued operations, after income taxes	$	(89	)	$	(216	)	$	3,230		$	(1,573	)

The following table presents amortization, depreciation and purchases of property, equipment, improvements and certain other intangible assets of the discontinued operations related to Etherios (in thousands):

	Six months ended March 31,
	2016		2015
Amortization of identifiable intangible assets	$	30	$	241
Depreciation of property, equipment and improvements	$	—	$	14
Purchases of property, equipment, improvements and certain other intangible assets	$	—	$	(11	)

Below is a summary of the gain on sale (in thousands):

Cash received	$	4,096
Less:
Employee related liabilities	(1,134		)
Working capital adjustment	(113		)
Net cash proceeds	2,849
Present value of receivable due on October 23, 2016	2,941
Present value of receivable due on October 23, 2017	1,922
Total fair value of consideration received	7,712
Less:
Net assets of Etherios	(3,383		)
Facility abandonment costs	(725		)
Transaction costs, primarily professional fees	(734		)
Gain on sale of discontinued operations, before income taxes	$	2,870