Discontinued Operations

9 Months Ended

Sep. 30, 2014

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 nine months endedSeptember 30, 2013 and 2014 (in thousands):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2014		2013			2014
Net revenue	$	18		$	—	$	40		$	—
Cost of goods sold	—			—		142			—
Gross loss	18			—		(102		)	—
Operating expenses:
Research and development	—			—		—			—
Sales and marketing	—			—		—			—
General and administrative	36			—		350			—
Restructuring charge	—			—		—			—
Total operating expenses	36			—		350			—
Operating loss	(18		)	—		(452		)	—
Other expense, net	—			—		—			—
Loss from discontinued operations	$	(18	)	$	—	$	(452	)	$	—

The activity in 2013 was 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.