Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

Discontinued Operations
12 Months Ended
Dec. 31, 2012
Discontinued Operations [Abstract]  
Discontinued Operations

Note 4 Discontinued Operations

In September 2011, we announced that we entered into an agreement with Optos, Inc., a subsidiary of Optos plc (collectively “Optos”) to sell our ophthalmic instrumentation business. Upon closing in October 2011, we received $17.5 million of cash and we are eligible to receive royalties up to $22.5 million on future sales.

The assets and liabilities related to our ophthalmic instrumentation business have identifiable cash flows that are independent of the cash flows of other groups of assets and liabilities and we will not have a significant continuing involvement with the related products beyond one year after the closing of the transactions. Therefore, the accompanying Consolidated Balance Sheets report the assets and liabilities related to our ophthalmic instrumentation business as discontinued operations in all periods presented, and the results of operations related to our ophthalmic instrumentation business have been classified as discontinued operations in the accompanying Consolidated Statements of Operations for all periods presented.

On or around October 30, 2012, we received a letter from counsel to Optos making certain indemnity claims against us in connection with the sale of our instrumentation business. It is too early to assess the likelihood of litigation in this matter or the probability of a favorable or unfavorable outcome. However, we do not currently believe this matter will have a material impact on our results of operations or financial condition.

The following table presents the major classes of assets and liabilities that have been presented as assets of discontinued operations and liabilities of discontinued operations in the accompanying Consolidated Balance Sheets:



(In thousands)

  December 31,
    December 31,

Other current assets

  $  —       $ 4  







Total assets of discontinued operations

  $ —       $ 4  







Accounts payable

  $ —       $ 1  

Accrued expenses and other liabilities

    —         173  







Total liabilities of discontinued operations

  $ —       $ 174  







The following table presents summarized financial information for the discontinued operations presented in the Consolidated Statements of Operations:


    For the years ended December 31  

(In thousands)

  2012     2011     2010  

Total revenue

  $  —       $ 4,254     $ 8,386  

Operating income (loss)

    177       (3,434     (6,095

Gain on sale to Optos

    —         10,597       —    

Income (loss) before provision for income taxes

    177       7,142       (6,092

Net income (loss)

  $ 109     $ 5,181     $ (6,250

The income from discontinued operations for the year ended December 31, 2012 primarily represents collection of an accounts receivable balance retained as part of the sale to Optos.