Discontinued Operations

12 Months Ended

Mar. 31, 2013

Discontinued Operations

Note 2. Discontinued Operations

On February 29, 2012, the Company completed the sale of the product lines and certain assets associated with its InfiniBand business to Intel Corporation and received $125.0 million in cash. In addition, Intel agreed to assume certain liabilities related to the IB Business. The assets sold consisted primarily of intellectual property, inventories and property and equipment. The Company allocated $8.8 million of the carrying value of its goodwill to the IB Business and wrote off this amount as part of the sale. The allocated amount was determined on a pro rata basis based on the consideration received from the sale of the IB Business and the fair value of the reporting unit as of the date the IB Business was sold.

The Company recognized a gain on the sale of the IB Business of $103.5 million. The components of the gain on sale are as follows:

	(In thousands)
Proceeds from sale	$	124,969
Inventories		(8,050	)
Property and equipment, net		(3,359	)
Purchased intangible assets, net		(5,336	)
Goodwill		(8,772	)
Deferred revenue		5,379
Other		(1,322	)
	$	103,509

In connection with the divestiture, the Company entered into an agreement to provide certain transition services to Intel for a period not to exceed one year from the date of sale.

Income from discontinued operations consists of direct revenues and direct expenses of the IB Business, including cost of revenues, as well as other fixed and allocated costs to the extent that such costs were eliminated as a result of the transaction. General corporate overhead costs have not been allocated to discontinued operations. A summary of the operating results of the IB Business included in discontinued operations in the consolidated statements of income is as follows:

	2013			2012			2011
	(In thousands)
Net revenues	$	421		$	36,199		$	38,824
Loss from operations before income taxes	$	(690	)	$	(2,913	)	$	(8,115	)