Support.com 2009 Annual Report Download - page 61

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Table of Contents
SUPPORT.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Operating results for the discontinued operation are listed below for the years ended December 31, 2009, 2008 and 2007, respectively:
Year Ended December 31,
2009 2008 2007
Revenue:
License $ 1,238 $ 11,814 $ 15,723
Maintenance 6,783 15,881 16,084
Services 4,658 14,365 14,944
Total revenue 12,679 42,060 46,751
Costs and expenses:
Costs of license 215 337 218
Cost of maintenance 730 1,743 1,792
Cost of services 4,117 12,072 15,082
Amortization of intangible assets — 90 2,815
Research and development 865 2,848 3,888
Sales and marketing 4,067 11,808 22,768
Total costs and expenses 9,994 28,898 46,563
Income from discontinued operations, before income taxes $ 2,685 $ 13,162 $ 188
Summary results from discontinued operations, including gain on sale and tax impact, are summarized as follows:
Year Ended December 31,
2009 2008 2007
Income from discontinued operations, before income taxes $ 2,685 $ 13,162 $ 188
Gain on sale of discontinued operations 9,130 — —
Taxes on discontinued operations (4,811) (558) (671)
Income from discontinued operations, after income taxes $ 7,004 $ 12,604 $ (483)
Income from discontinued operations, before income taxes, represents the Enterprise Business’ historic segment reporting, including all directly
attributable revenues (license, maintenance and professional services) and costs (cost of goods sold, research and development and sales and marketing). These
revenues and costs are consistent with prior reporting methodologies, but exclude all corporate costs, primarily facilities and information technology, which were
previously allocated to the segment.
Historically, we have allocated certain overhead expenditures, such as facilities and information technology, across the functional departments of its two
operating segments. Since these support functions remain as part of our continuing operations, they are therefore not included in discontinued operations
reporting.
The gain on sale of the Enterprise business was approximately $9.1 million, reflecting the cash received from Consona (approximately $20.5 million), and
the carrying value of the net liabilities of the Enterprise business acquired by Consona (approximately $1.9 million), less Enterprise business goodwill ($9.8
million) and deal-related expenditures (approximately $3.5 million).
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Source: Support.com, Inc., 10-K, March 12, 2010 Powered by Morningstar® Document Research℠