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 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 of $10.9 million were received from Numark in 2012, with the remaining proceeds held in escrow until a final release date that occurred 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 in 2012, with the remaining proceeds held in escrow until a final release date that occurred 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 gain from the divestiture (in thousands):



Proceeds from sale of consumer business	$	14,841
Less: assets disposed of
Intangible assets	(3,474		)
Inventory, net	(16,500		)
Fixed assets	(507		)
Capitalized software	(372		)
Other assets	(23		)
Plus: liabilities disposed of
Deferred revenues (Restated)	45,401
Warranty accrual	507
Net assets sold	25,032
Costs to sell	(1,901		)
Gain on divestiture of consumer business	$	37,972