DISCONTINUED OPERATIONS - Note 11

9 Months Ended

Dec. 31, 2014

Discontinued Operations - Note 11

DISCONTINUED OPERATIONS - Note 11

11. DISCONTINUED OPERATIONS

On September 30, 2013, the Company completed the sale of its dedicated server hosting business to IRC Company, Inc. ("IRC") and, as a result, no longer provides dedicated server hosting services. In the transaction, IRC purchased 100% of the stock of Central Host, Inc., which had been wholly owned by the Company and all of the assets specific to the dedicated server hosting business.

The Company sold its dedicated server hosting business for total consideration of $3.0 million in cash, which the Company received on October 1, 2013.

The dedicated server hosting business has been reported as discontinued operations. The results of operations of these discontinued operations is as follows (in thousands):

		Three Months Ended				Nine Months Ended
		December 31,				December 31,
		2014		2013		2014		2013
Revenue	$	-	$	-	$	-	$	1,430
Operating expense		-		-		-		922
Income before income taxes		-		-		-		508
Provision for income taxes		-		-		-		207
Income from discontinued operations		-		-		-		301
Gain on disposal of discontinued operations,
net of income tax provision of $463		-		-		-		589