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Discontinued Operations
6 Months Ended
Jun. 30, 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. Accordingly, we recognized an impairment of $0.2 million of property, plant and equipment and $1.6 million for the remaining value of acquired software as a component of cost of goods sold during the three months ended June 30, 2012. The AssuredUVS business is now recorded in discontinued operations since we 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 and six months ended June 30, 2012 and 2013 (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2012
 
2013
 
2012
 
2013
Net revenue
$
60

 
$
2

 
$
206

 
$
22

Cost of goods sold
1,766

 
11

 
2,303

 
142

Gross loss
(1,706
)
 
(9
)
 
(2,097
)
 
(120
)
Operating expenses:
 
 
 
 
 
 
 
     Research and development
17

 

 
762

 

     Sales and marketing

 

 
56

 

     General and administrative
308

 
3

 
486

 
323

     Restructuring charge (recovery)
72

 

 
729

 
(10
)
          Total operating expenses
397

 
3

 
2,033

 
313

Operating loss
(2,103
)
 
(12
)
 
(4,130
)
 
(433
)
Other expense, net

 

 
(1
)
 

Loss from discontinued operations
$
(2,103
)
 
$
(12
)
 
$
(4,131
)
 
$
(433
)
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 expenses related to the resolution of a dispute with the former primary AssuredUVS customer.