Discontinued Operations (Tables)

6 Months Ended

Mar. 31, 2013

Discontinued Operations

Summarized financial information related to the Thermal Imaging Business and is segregated from continuing operations and reported as discontinued operations

Sale of Thermal Imaging Business.

As a result of the Thermal Imaging Asset Sale, the Company’s Thermal Imaging Business is classified as a discontinued operation in the consolidated financial statements of the Company. The following summarized financial information relates to the Thermal Imaging Business:

	13 Weeks Ended (Unaudited)					26 Weeks Ended (Unaudited)
	March 31, 2013		April 1, 2012			March 31, 2013		April 1, 2012
Total revenues	$	—	$	—		$	—	$	1,983,000
Cost and expenses
Cost of revenues		—		—			—		1,810,000
General and administrative expense		—		45,000			—		87,000
Research and development expense		—		220,000			—		574,000
Total costs and expenses		—		265,000			—		2,471,000
Loss from operations		—		(265,000	)		—		(488,000	)
Gain on disposal (net of $0 tax)		—		7,748,000			—		7,748,000
Net (loss) from discontinued operations (net of $0 tax)	$	—	$	7,483,000		$	—	$	7,260,000

   Cessation of Government Business

In addition, on March 19, 2013, the Company announced that it had discontinued its government-focused business, including the Secure Memory Systems, Cognitive and Microsystems business units (the “Government Business”), and instead focus on the Company’s cyber-security business.  As a result of the Company’s decision, the Company’s Government Business is classified as a discontinued operation in the consolidated financial statements of the Company. The following summarized financial information relates to the Government Business:

	13 Weeks Ended						26 Weeks Ended
	(Unaudited)						(Unaudited)
	March 31,			April 1,			March 31,			April 1,
	2013			2012			2013			2012
Total revenues	$	732,000		$	1,203,000		$	1,514,000		$	2,499,000
Cost and expenses		1,278,000			1,013,000			2,606,000			1,974,000
Cost of revenues
General and administrative expense		323,000			514,000			882,000			1,952,000
Research and development expense		322,000			259,000			764,000			644,000
Total costs and expenses		1,923,000			1,786,000			4,252,000			4,570,000
Net (loss) from discontinued operations (net of $0 tax)	$	(1,191,000	)	$	(583,000	)	$	(2,738,000	)	$	(2,071,000	)

Included in the consolidated balance sheets are the following major classes of assets and liabilities associated with the Government Business as of March 31, 2013 and September 30, 2012:

	March 31, 2013		September 30, 2012
	(Unaudited)		(Unaudited)
Accounts receivable, net	$	331,000	$	445,000
Unbilled revenues on uncompleted contracts		541,000		549,000
Prepaid expenses and other current assets		175,000		54,000
Current assets of discontinued operations	$	1,047,000	$	1,048,000
Property and equipment, net	$	566,000	$	824,000
Other assets		36,000		117,000
Non-current assets of discontinued operations	$	602,000	$	941,000
Accounts payable	$	108,000	$	211,000
Accrued expenses		780,000		311,000
Advance billings on uncompleted contracts		113,000		297,000
Current liabilities from discontinued operations	$	1,001,000	$	819,000