Disposition of Businesses

3 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disposition of Our Medical Transcription and EHR Implementation businesses

On November 17, 2020, we entered into a definitive agreement (the “Agreement”) to sell our medical transcription and electronic healthcare record ("EHR") implementation businesses (the "Business") to Assured Healthcare Partners and Aeries Technology Group (together, the “Buyer”). Pursuant to the Agreement, we sold and transferred, and the Buyer purchased and acquired, (a) the shares of certain subsidiaries through which we operate a portion of the Business and (b) certain assets used in or related to the Business; and the Buyer assumed certain liabilities related to such assets of the Business, subject to certain exclusions and indemnities as set forth in the Agreement.

On March 1, 2021, we completed the sale of the Business and received approximately $29.8 million in cash, subject to post-closing finalization of the adjustments set forth in the Agreement. As a result, we recorded a loss of $12.5 million, which is included within net income (loss) from discontinued operations in fiscal year 2021. There are a number of working capital and other adjustments under the Agreement and related ancillary agreements. We do not believe that post-closing working capital adjustments under the Agreement, if any, will have a material impact on our results of operations.

For all periods presented, the Businesses' results of operations have been included within discontinued operations in our condensed consolidated financial statements.

The following table summarizes the results of the discontinued operations (dollars in thousands):


	Three Months Ended December 31,
	2021	2020
	Medical Transcription and EHR Implementation	Medical Transcription and EHR Implementation
Major line items constituting net income of discontinued operations:
Revenue	N/A	$	47,650
Cost of revenue	N/A	29,152
Research and development	N/A	1,298
Sales and marketing	N/A	908
General and administrative	N/A	12
Amortization of intangible assets	N/A	2,444

Restructuring and other charges, net	N/A	4,438

Income from discontinued operations before income taxes	N/A	9,398
Provision for income taxes	N/A	1,457

Net income from discontinued operations	N/A	$	7,941

Supplemental information:
Depreciation	N/A	$	1,063
Amortization	N/A	$	2,444
Stock compensation	N/A	$	287
Capital expenditures	N/A	$	57