Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations

Note 4. Discontinued operations

In the fourth quarter of 2011, the Company initiated a plan to sell a component of its business, Broadband, a subsidiary in China. The Company decided to sell Broadband because the nature of its operations was different than the core technology and strategy of the Company. On January 11, 2012, the Company entered into a purchase agreement with Guangdong Rainbow Electronic Ltd. (Rainbow) to dispose of its 100% equity interest in Broadband for a total cash consideration of RMB 13.0 million ($2.1 million). The transaction closed on March 13, 2012. The Company recognized a gain of $0.6 million on the sale of Broadband, representing the difference between the consideration received and the net assets transferred to Rainbow, net of tax. The gain was included in income from discontinued operations, net of tax in the statement of operations for the three months ended March 31, 2012.

The results of operations associated with Broadband are presented as discontinued operations in the Company’s consolidated statements of operations for the three months ended March 31, 2013 and 2012. Revenue and the components of net income related to the discontinued operations for all periods were as follows (in thousands):

	Three months ended March 31,
	2013		2012
Revenue	$	—	$	590
Income from discontinued operations before income taxes		—		284
Provision for income taxes		—		(114	)
Net income from discontinued operations	$	—	$	170
Basic and diluted net income per share on discontinued operations	$	—	$	0.01