Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

During 2011, our primary AssuredUVS customer informed us that the AssuredUVS software would no longer be a component of its business strategy, which would result in a significant decline in revenues for the Company. In February 2012, our Board of Directors approved a plan to exit our AssuredUVS business and close down our Israel Technology Development Center.During the second quarter of 2012, we explored the potential sale of the AssuredUVS business, but were unsuccessful in locating a buyer and ended efforts to sell the business or its component assets as of June 30, 2012. The AssuredUVS business is now recorded in discontinued operations, since we have ceased all significant ongoing operational activities as of September 30, 2012.

The following is a summary of the components of loss from discontinued operations for the three months endedMarch 31, 2012 and 2013 (in thousands):

	Three Months Ended
	March 31, 2012			March 31, 2013
Net revenue	$	146		$	20
Cost of goods sold	537			131
Gross loss	(391		)	(111		)
Operating expenses:
Research and development	745			—
Sales and marketing	56			—
General and administrative	178			320
Restructuring charge (recovery)	657			(10		)
Total operating expenses	1,636			310
Operating loss	(2,027		)	(421		)
Other income (expense), net	(1		)	—
Loss from discontinued operations	$	(2,028	)	$	(421	)

The activity in 2013 is limited to the continued support of certain maintenance contracts entered into prior to shutting down the Israel Technology Development Center, as well as the resolution of a dispute with the former primary AssuredUVS customer (see Note 9).