DISCONTINUED OPERATIONS

3 Months Ended

Jun. 30, 2015

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

NOTE 4. DISCONTINUED OPERATIONS

On March 18, 2015, we entered into an asset purchase agreement (“APA”) with Antech pursuant to which we sold substantially all of the assets of our AVRL business. The sale transaction closed on March 31, 2015. The total purchase price under the APA was $21.0 million in cash. We received $20.1 million in cash proceeds during the fourth quarter of fiscal 2015, while the remaining $0.9 million is being held by Antech until certain conditions are met. Upon meeting the conditions by the first anniversary of the closing date, then the proceeds may be released. Such additional cash consideration will be accounted for as a gain on sale of discontinued operations, net of tax, when it is realized or realizable.

The AVRL business represents a separate asset group and the sale of assets in this business qualifies as a discontinued operation and accordingly, the Company reported the results of operations of this business in discontinued operations within the condensed consolidated statements of operations for all periods presented as applicable.

The results from discontinued operations were as follows (in thousands):

	Three Months Ended June 30,
Discontinued operations:	2015			2014
Revenues	$	255		$	3,423
Cost of revenues		471			3,254
Gross profit (loss)		(216	)		169
Sales and marketing expense		(98	)		746
Other income (expense), net		118			-
Loss before income tax provision		-			(577	)
Income tax benefit		-			(218	)
Net loss of discontinued operations	$	-		$	(359	)

The current and non-current assets and liabilities of discontinued operations were as follows (in thousands):

	June 30, 2015		March 31, 2015
Receivables, net	$	597	$	2,075
Total current assets of discontinued operations	$	597	$	2,075
Other assets	$	12	$	12
Total non-current assets of discontinued operations	$	12	$	12
Accounts payable	$	4	$	449
Other current liabilities		507		5,087
Total current liabilities of discontinued operations	$	511	$	5,536