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Intangible Assets
 12 Months Ended
Dec. 31, 2012
Intangible Assets [Abstract]  
Intangible Assets
5. Intangible Assets

The Company’s amortizable purchased intangible assets resulting from its acquisition of Enfora are composed of (in thousands):

 

                                                         
    Years ended December 31,  
    2012     2011  
    Gross     Accumulated
Amortization		     Impairment     Net     Gross     Accumulated
Amortization		     Net  

Developed technologies

   $ 26,000     $ (5,786 )    $ (19,547 )    $ 667     $ 26,000     $ (4,163 )    $ 21,837  

Trade name

     12,800       (2,147 )      (8,582 )      2,071       12,800       (1,387 )      11,413  

Other

     3,720       (1,923 )      (1,620 )      177       3,720       (1,609 )      2,111  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total amortizable purchased intangible assets

   $ 42,520     $ (9,856 )    $ (29,749 )    $ 2,915     $ 42,520     $ (7,159 )    $ 35,361  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The following table presents details of the amortization of purchased intangible assets of Enfora included in the cost of net revenues and operating costs and expenses categories (in thousands):

 

                 
    Years ended December 31,  
          2012                 2011        

Cost of net revenues

   $ 1,623     $ 4,102  

General and administrative expenses

     1,074       2,220  
   

 

 

    

 

 

  

Total amortization expense

   $ 2,697     $ 6,322  
   

 

 

    

 

 

  

The following table presents details of the amortization of existing amortizable purchased intangible assets of Enfora that is currently estimated to be expensed in the future (in thousands):

 

         

Fiscal year:

   Amount  

2013

   $ 896  

2014

     895  

2015

     562  

2016

     562  
   

 

 

  

Total

   $ 2,915  
   

 

 

  

Additionally, at December 31, 2012 and 2011, the Company had net acquired software licenses of $248,000 and $341,000, respectively, net of accumulated amortization of $2.1 million and $3.7 million, respectively. The acquired software licenses represent rights to use certain software necessary for the development and commercial sale of the Company’s products.

The Company monitors its intangible and long-lived asset balances and conducts formal tests when impairment indicators are present (see Note 6 for a discussion of the impairment indicators). During the quarter ended March 31, 2012, the Company recorded an impairment loss of $22.8 million related to a decrease in the estimated fair values of the purchased intangible assets fair values. At September 30, 2012, the Company recorded a further preliminary impairment loss of $7.3 million related to the continued decrease in the estimated fair values of the purchased intangible assets. During the fourth quarter of 2012, the Company completed the impairment analysis and reduced the third quarter impairment by $300,000. The Company recorded $133,000 of impairment loss related to acquired software licenses during the year ended December 31, 2011. There was no impairment loss recorded for the year ended December 31, 2010.

 

Amortization expense relating to acquired software licenses was $196,000, $422,000 and $744,000 for the years ended December 31, 2012, 2011 and 2010, respectively. Amortization expense related to licenses obtained for research purposes is recorded within research and development expense in the consolidated statements of operations. Amortization expense related to licenses obtained for commercial products is recorded in cost of net revenues in the consolidated statements of operations.

At December 31, 2012, the weighted average remaining useful life of the Company’s long-lived intangible assets including acquired software licenses is 3.0 years.