8x8 2015 Annual Report Download - page 84

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16. DISCONTINUED OPERATIONS
On September 30, 2013, the Company completed the sale of its dedicated server hosting business to IRC Company, Inc. ("IRC") and, as a result,
no longer provides dedicated server hosting services. In the transaction, IRC purchased 100% of the stock of Central Host, Inc., which had been
wholly owned by the Company and all of the assets specific to the dedicated server hosting business.
The Company sold its dedicated server hosting business for total consideration of $3.0 million in cash, which was received on October 1, 2013.
The dedicated server hosting business has been reported as discontinued operations. The results of operations of these discontinued operations
are as follows:
17. SUBSEQUENT EVENT
On May 26, 2015, the Company, together with 8x8 UK Investments Limited, its wholly-owned subsidiary, entered into a share purchase
agreement with the shareholders of DXI Limited, API Telecom Limited, Easycallnow Limited, and RAS Telecom Limited (collectively, "DXI"),
for the purchase of the entire share capital of DXI. DXI provides SaaS for call center solution workflows. The total aggregate purchase price was
approximately $25.5 million, consisting of $18.7 million in cash paid to DXI shareholders at closing, $3.8 million in cash deposited in escrow to
be held for two years as security against indemnity claims made by the Company after the closing date, and $3.0 million in its common stock
(approximately 353,000 shares). The Company funded the aggregate cash purchase price from our cash and investments.
77
Years Ended March 31,
2015
2014
2013
Revenue
$
-
$
1,430
$
3,828
Operating expense
-
922
3,005
Income before income taxes
-
508
823
Provision for income taxes
-
188
334
Income from discontinued operations
-
320
489
Gain on disposal of discontinued operations,
net of income tax provision of $456
-
596
-