Note 3 - Discontinued Operations

3 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 3.    

DISCONTINUED OPERATIONS

On June 1, 2016, we entered into a definitive agreement to sell iML to Beijing E-town Chipone Technology Co., Ltd for $136 million, payable in cash, and adjusted for iML’s cash and debt at closing. At July 3, 2016, we have classified the iML disposal group as held-for-sale and presented the results of iML’s operations as net income (loss) from discontinued operations in the condensed consolidated statements of operations. The assets and liabilities of iML are recorded as assets held for sale and liabilities held for sale within the condensed consolidated balance sheets, respectively. We are expecting to record a gain on the sale of iML that will be recognized when the transaction closes. The transition services associated with this transaction are expected to be immaterial.

Summarized results from discontinued operations during the first quarter of fiscal 2017 and 216 are as follows:

	July 3,			June 28,
	2016			2015
Net sales	$	13,522		$	12,239
Cost of sales:
Cost of sales		7,702			5,825
Amortization of purchased intangible assets		1,245			1,855
Total cost of sales		8,947			7,680
Gross profit		4,575			4,559
Operating expenses:
Research and development		1,685			1,881
Selling, general and administrative		1,397			1,946
Total operating expenses, net		3,082			3,827
Interest income and other, net		(3	)		(4	)
Income (loss) before income taxes		1,496			736
Provision for income taxes		99			892
Net income (loss) from discontinued operations	$	1,397		$	(156	)

As of July 3, 2016 and March 27, 2016, the aggregate components of assets and liabilities classified as discontinued operations and included in current assets and current liabilities consisted of the following:

	July 3,		March 27,
	2016		2016
Accounts receivables, net	$	14,162	$	13,427
Inventories		7,915		7,944
Deferred income taxes and other assets		118		248
Property, plant and equipment, net		95		88
Goodwill		13,258		13,258
Identifiable intangible assets, net		57,140		58,946
Total assets	$	92,688	$	93,911
Accounts payable	$	1,127	$	2,024
Accrued liabilities		1,307		1,422
Deferred income taxes and other liabilities		45		24
Total liabilities	$	2,479	$	3,470