DISCONTINUED OPERATIONS

On July 2, 2012, the Company sold a group of consumer audio and video products and certain related intellectual property (the “Consumer Business”) with a negative carrying value of $25.0 million for total consideration of $14.8 million, of which $13.3 million was received during the three months ended September 30, 2012, recording a gain of $38.0 million net of $1.9 million of costs incurred to sell the assets. The audio assets were sold to Numark Industries, L.P. (“Numark”) for $11.8 million. Proceeds $10.9 million were received from Numark during 2012, with the remaining proceeds held in escrow until a final release date in March 2014. The video assets were sold to Corel Corporation (“Corel”) for $3.0 million. Proceeds of $2.4 million were received from Corel during the third quarter of 2012, with the remaining proceeds held in escrow until a final release date in January 2014. There was no income tax provision related to the discontinued operations in any period presented.

The divestiture of these consumer product lines was intended to:


•	allow the Company to focus on the Broadcast and Media market and the Video and Audio Post and Professional market;


•	reduce complexity from the Company's operations to improve operational efficiencies; and


•	allow the Company to change its cost structure, by moving away from lower growth, lower margin sectors to drive improved financial performance.

The following table presents the results of operations from discontinued operations for the three months ended March 31, 2012 (Restated) (in thousands):



	Three Months Ended
	March 31, 2012
Net revenues	$	22,796
Cost of revenues	15,235
Gross profit	7,561
Operating expenses	2,502
Income from divested operations	$	5,059