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Note 3 - Discontinued Operations
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
3.
Discontinued Operations
 
As discussed in Note
1,
on
August 4, 2016,
the Company completed the sale of its memory product business (the “Business”) to Rambus for
$90,000
in cash,
$11,250
of which was placed into escrow for a period of the
twelve
months following the closing as security for the Company’s indemnification obligations pursuant to the Asset Purchase Agreement dated
June 29, 2016.
During the year ended
December 31, 2017,
the Company received
$10,690
from the escrow. The divestiture of the Business was part of a strategic plan to focus on and increase investments in the Company’s communication business. The Company recorded a gain of
$78,544
in the year ended
December 31, 2016.
The results of operations of the Business are shown in net income from discontinued operations. The Company’s consolidated financial statements and the accompanying notes for current and prior periods have been restated to reflect the discontinued operations presentation.
 
The components of the gain on sale of the Business were as follows:
 
Cash proceeds from sale
   $
90,000
  
Less book value of assets sold:
        
Inventories
    
(5,947
 )
Prepaid expenses
    
(250
 )
Property and equipment
    
(7,051
 )
Goodwill
    
(714
 )
Deferred revenue
    
1,757
  
Liabilities
    
749
  
Gain on sale
   $
78,544
  
 
The results of discontinued operations for the year ended
December 31, 2016:
 
Revenue
   $
24,418
  
Cost of revenue
    
(13,367
 )
Operating expenses
    
(15,029
 )
Other income
    
176
  
Gain on sale
    
78,544
  
Provision for income taxes
    
(1,799
 )
Net income from discontinued operations
   $
72,943
  
 
The results of discontinued operations include the following for the year ended
December 31, 2016:
 
Depreciation and amortization
   $
1,103
  
Stock-based compensation expense
    
2,194
  
Property and equipment expenditures
    
2,455
  
 
 
In connection with the sale of the Business, the Company entered into a transition service agreement with Rambus under which the Company provided certain services on an interim, transitional basis, for a period of
six
months. The total amount billed to Rambus for the year ended
December 31, 2016
was
$1,563.