Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations

(11) Discontinued Operations

On February 25, 2013, the Company committed to a plan to sell its Angel.com business. The Company made the decision to sell Angel.com in order to focus on its business intelligence software and services offerings.

On March 15, 2013, the Company completed the sale of its equity interest in Angel.com for consideration to the Company of approximately $111.2 million, resulting in a net cash inflow of $100.7 million after $10.5 million in transaction costs. The sale resulted in a gain of $57.4 million, net of tax, and is subject to certain post-closing adjustments. As of December 31, 2012, the associated assets and liabilities of the Angel.com business are classified as held-for-sale and are presented in the following table (in thousands):

	December 31, 2012
Assets:
Cash and cash equivalents	$	1,350
Accounts receivable, net of unpaid deferred revenue of $554 and allowance for doubtful accounts of $347, respectively		4,720
Prepaid expenses and other assets		738
Property and equipment, net		3,763
Total assets	$	10,571
Liabilities:
Accounts payable and accrued expenses	$	1,587
Accrued compensation and employee benefits		2,364
Gross deferred revenue and advance payments, net of unpaid deferred revenue of $554		639
Other liabilities		99
Total liabilities	$	4,689
Net assets and liabilities of disposal group	$	5,882

The following table summarizes the revenues and pre-tax loss generated by the Angel.com business during the three months ended March 31, 2013 and 2012, respectively, in addition to the pre-tax gain on the sale of Angel.com recorded by the Company during the three months ended March 31, 2013 (in thousands):

	Three months ended
	March 31,
	2013		2012
Angel.com revenues	$	6,320	$	6,751
Angel.com pre-tax loss	$	986	$	1,202
MicroStrategy pre-tax gain on sale	$	94,925	$	0