The company says LDExchange has been unable to achieve profitability due to a difficult operating environment. "As Micro General has evolved over the past couple of years, the LDExchange business has become of limited strategic value, has shown diminished synergy with the core Micro General software services businesses, and has been a significant drain on earnings," says Dale Christensen, Micro General's CEO.

Micro General says it expects to report a charge for discontinued operations of between $4.5 million and $5.5 million prior to income tax benefit. This will be primarily a non-cash charge resulting from the write-off of goodwill associated with the LDExchange acquisition in 1998 and also from the write-down of telecommunications equipment.