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Sale of I/O Technology | 12 Months Ended
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Dec. 31, 2012
Sale of I/O Technology |
Sale of I/O Technology | Note 6: Sale of I/O Technology In March 2012, the Company entered into an asset purchase agreement for an exclusive license of a portion of its intellectual property pertaining to its high-speed serial I/O technology for approximately $4.3 million. As part of the agreement, the Company provided certain technology transfer support services, and 15 employees of the Company's India subsidiary accepted employment with the purchaser. The Company received approximately $2.2 million, net of transaction costs, in cash upon execution of the agreement. The agreement provides for an additional $1.9 million (the "Holdback") to be paid upon providing technology transfer support services and achievement of certain contractually agreed-upon development milestones. A portion of the Holdback is reserved for any costs related to indemnification claims that may arise during the 12 month period following the agreement date. In July 2012, $1.3 million of the Holdback payment was received. In 2012, Company recognized a $3.3 million gain on this asset sale, net of transaction costs. The gain on asset sale has been recorded as a reduction of operating expenses in the consolidated statements of operations and comprehensive income (loss). Gains related to the remaining Holdback will be recorded when the indemnity period lapses, which is expected to be within 12 months of the agreement date.

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