15. Subsequent Event

On November 7, 2013, the Board, after reviewing strategic options, committed to a plan designed to simplify the Company’s business structure and support a revised strategy to focus on high-growth technology trends within the security market including cloud-based services and mobile access. This plan includes the sale of the Company’s U.S. Multicard business group as well as the sale of all of the assets related to the Company’s Tagtrail mobile services platform. The Company expects to execute agreements to sell each of these assets in the next six months; however, the Company cannot assure any outcome or the timing of any outcome related to this process.

For financial reporting purposes, beginning in the fourth fiscal quarter of 2013, the Company intends to classify the assets related to its U.S. Multicard business group and its Tagtrail mobile services platform as discontinued operations, and expects to report income from discontinued operations and a separate expected disposal loss from the write-down to fair value of the net assets held for sale. At this time, the Company is unable in good faith to make a determination of an estimate or range of estimates with respect to the charges associated with this decision. As of September 30, 2013, the carrying amount of assets related to Company’s Tagtrail mobile services platform is insignificant. As of September 30, 2013, the carrying amounts of the major classes of assets and liabilities included as part of Multicard disposal group are as follows (in thousands):

Accounts receivable	$	714
Inventories		423
Goodwill		1,310
Accounts payable		(431	)
Deferred revenue		(1,039	)
Accrued expenses and other liabilities		(225	)