Discontinued Operations

3 Months Ended

Jul. 03, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

High-Speed Converter (“HSC”) Business

On April 27, 2015, the Company completed the sale of the remaining HSC business to eSilicon, for $1.5 million which will be paid on or before April 27, 2017. In connection with the sale, the Company entered into an Exclusive Intellectual Property License Agreement with eSilicon, whereby the Company provided an exclusive license to eSilicon to develop, manufacture, sell and maintain HSC products. In connection with the sale, the Company and eSilicon also entered into a Transition Services Agreement, whereby the Company will provide certain transition services over a specific period from the effective date of the sale. The transition services do not represent significant continuing involvement of the Company in the HSC business.

As of July 3, 2016, the Company had a receivable of $1.5 million representing uncollected proceeds from the sale that was included under Other Assets on the Condensed Consolidated Balance Sheet. Given the term of the sale, the Company deferred the gain from this divestiture and will recognize it into discontinued operations when collectibility becomes certain. The following table summarizes the components of the deferred gain which was included under Other Long-term Liabilities on the Condensed Consolidated Balance Sheet as of July 3, 2016:

(in thousands)	Amount
Sale price	$	1,500
Less book value of assets sold	(115		)
Deferred gain on divestiture	$	1,385

The HSC business was included in the Company’s Communications reportable segment. For financial statements purposes, the results of operations for the HSC business have been segregated from those of the continuing operations and are presented in the Company's condensed consolidated financial statements as discontinued operations.

As a result of the sale of HSC business in April 2015, there are no results presented for the three months ended July 3, 2016. The results of the HSC business for the three months ended June 28, 2015 were as follows (in thousands):

	Three Months Ended
	June 28, 2015
Revenues	$	176
Cost of revenues	(477		)
Operating expense	(246		)
Income tax provision	(15		)
Net loss from discontinued operations	$	(562	)