Discontinued Operations

3 Months Ended

Dec. 31, 2013

Discontinued Operations

I. DISCONTINUED OPERATIONS

On January 15, 2014, we sold our wholly-owned subsidiary Transdyn to a global provider of electronic toll collection systems, headquartered in Vienna, Austria.  The purchase price from the sale of this subsidiary totaled $16.0 million, subject to working capital adjustments.  We received cash of $14.4 million and the remaining $1.6 million was placed into an escrow account until April 2015, to be released subject to certain contingent obligations.  Transdyn’s results were previously reflected in the Process Control Systems business segment.

We have reclassified the assets and liabilities of Transdyn as held for sale within the accompanying condensed consolidated balance sheets as of December 31, 2013 and September 30, 2013 and presented the results of these operations as income from discontinued operations, net of tax, for each of the accompanying condensed consolidated statements of operations.  

Summary comparative financial results of discontinued operations were as follows (in thousands):

	Three Months Ended
	December 31,
	2013		2012
Revenues	$	12,365	$	7,083
Income from discontinued operations before income taxes	$	1,489	$	409
Taxes		502		144
Net income from discontinued operations, net of tax	$	987	$	265
Earnings per share information:
Basic	$	0.08	$	0.02
Diluted	$	0.08	$	0.02

The following table presents the assets and liabilities of Transdyn as of December 31, 2013 and September 30, 2013 (in thousands):

	December 31,		September 30,
	2013		2013
Current assets:
Cash and cash equivalents	$	157	$	337
Accounts receivable		10,959		7,346
Contracts in progress		9,132		7,201
Inventories, net		18		20
Prepaid expenses and other current assets		637		505
Current assets held for sale	$	20,903	$	15,409
Long-term assets:
Property, plant and equipment, net	$	102	$	93
Other assets		53		51
Long-term assets held for sale	$	155	$	144
Current liabilities:
Accounts payable	$	4,023	$	2,973
Accrued salaries, bonuses and commissions		630		1,675
Billings in excess of cost		13,713		11,867
Other accrued expenses and liabilities		640		1,333
Current liabilities held for sale	$	19,006	$	17,848
Long-term liabilities held for sale:
Other liabilities	$	191	$	204