XML 69 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
DISCONTINUED OPERATIONS
 9 Months Ended
Sep. 30, 2012
Notes To Consolidated Financial Statement [Abstract]  
DISCONTINUED OPERATIONS

3.       DISCONTINUED OPERATIONS

 

On February 25, 2011, the Company announced that as a result of the Company's strategic planning process and the existing regulatory and commercial capital equipment environment, the Company would explore strategic alternatives for its LipoSonix business including, but not limited to, the sale of the stand-alone business. As a result of this decision, the Company classified the LipoSonix business as a discontinued operation for consolidated financial statement reporting purposes. On November 1, 2011, the Company sold LipoSonix to Solta Medical, Inc.

 

The following is a summary of loss from discontinued operations, net of income tax benefit, for the three and nine months ended September 30, 2011 (in thousands):

 Three Months Ended Nine Months Ended
 September 30, September 30,
 2011 2011
      
Net revenues$ 157 $ 513
Cost of revenues  87   2,543
      
Gross profit  70   (2,030)
      
Operating expenses:     
Selling, general and administrative  3,478   15,072
Research and development  1,788   8,436
      
Loss from discontinued operations     
before income tax benefit  (5,196)   (25,538)
      
Income tax benefit  (1,698)   (8,987)
      
Loss from discontinued operations,     
net of income tax benefit$ (3,498) $ (16,551)

The Company included only revenues and costs directly attributable to the discontinued operations, and not those attributable to the ongoing entity. Accordingly, no interest expense or general corporate overhead costs were allocated to the LipoSonix discontinued operations. Included in cost of revenues for the nine months ended September 30, 2011 was a $1.9 million charge related to an increase in the valuation reserve for LipoSonix inventory that was not expected to be sold.

 

The following is a summary of net cash used in operating activities from discontinued operations for the nine months ended September 30, 2011 (in thousands):

 Nine Months Ended
 September 30,
 2011
   
Loss from discontinued operations, net of income tax benefit$ (16,551)
Share-based compensation expense  (129)
Decrease in assets held for sale from discontinued operations  5,024
Decrease in liabilities held for sale from discontinued operations  (631)
Net cash used in operating activities from  
discontinued operations$ (12,287)