. Discontinued operations

Prior to adoption of the liquidation basis of accounting, our Z-Wave business unit consisted of those parts of the Company engaged in the IoT Devices marketplace except Mobile IoT. This business unit developed related IP software and chipsets into modules and arranged for their manufacture and sale to IoT product companies. Our Media Connectivity business unit consisted of those parts of the Company engaged in product lines related to wired home networking controller chipsets that provided connectivity solutions between various home entertainment products and incoming video streams.

January 23, 2018,

we announced the intent to sell our Z-Wave business unit to Silicon Laboratories, Inc. Additionally, management determined that our Media Connectivity business unit met all the criteria for categorization as “held for sale” as of

February 3, 2018,

and this business unit was sold

February 15, 2018.

In accordance with U.S. GAAP, we have separated the financial statement presentation of both business units from the presentation of our on-going operations. Also required is the presentation of historical periods in a similar manner. Therefore, beginning in the

fourth

quarter of fiscal

2018,

the results of Z-Wave and Media Connectivity business units were presented as discontinued operations in our consolidated statement of operations and thus have been excluded from continuing operations for the year ended

February 3, 2018.

Furthermore, the related assets and liabilities have been classified as held for sale on our consolidated balance sheet as of

February 3, 2018.

The following is a reconciliation of the consolidated balance sheet to the consolidated balance sheet presented herein presenting separately the assets and liabilities held for sale as of

February 3, 2018 (

in thousands):

				Adjustments
	Consolidated Balance Sheets			Assets and Liabilities Held for Sale			Other Adjustments			As Presented

ASSETS
Current assets
Cash and cash equivalents	$	40,628		$	(2,000	)				$	38,628
Restricted cash		335			(335	)					-
Accounts receivable, net		17,120			(7,405	)					9,715
Inventory		14,064			(11,026	)					3,038
Prepaid expenses and other current assets		7,898			(1,127	)					6,771
Current assets held for sale		-			-			21,893			21,893
Total current assets		80,045			(21,893	)		21,893			80,045

Software, equipment and leasehold improvements, net		6,178			(1,839	)					4,339
Intangible assets, net		4,630			(2,079	)					2,551
Goodwill		-			-						-
Deferred tax assets		770			(777	)		7	*		-
Non-current assets held for sale		-			-			4,703			4,703
Other non-current assets		4,467			(8	)					4,459
Total assets	$	96,090		$	(26,596	)	$	26,603		$	96,097

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	15,864		$	(6,531	)				$	9,333
Accrued compensation and related benefits		6,512			(2,464	)					4,048
Accrued liabilities		14,679			(4,812	)					9,867
Current liabilities held for sale		-			-			13,807			13,807
Total current liabilities		37,055			(13,807	)		13,807			37,055

Income taxes payable		15,708			(4,128	)					11,580
Deferred tax liabilities		38			-			7	*		45
Long-term liabilities held for sale		-			-			4,144			4,144
Other long-term liabilities		3,169			(16	)					3,153
Total liabilities		55,970			(17,951	)		17,958			55,977

Commitments and contingencies

Shareholders' equity
Common stock and additional paid-in capital		522,985			(56,687	)					466,298
Treasury stock		(88,336	)		-						(88,336	)
Accumulated other comprehensive loss		18			-						18
Accumulated deficit		(394,547	)		48,042			8,645			(337,860	)
Total shareholders' equity		40,120			(8,645	)		8,645			40,120

Total liabilities and shareholders' equity	$	96,090		$	(26,596	)	$	26,603		$	96,097

* Reclassification of a negative Deferred tax asset to Deferred tax liability