Balance Sheet Account Detail

12 Months Ended

Dec. 31, 2011

Inventory Disclosure [Abstract]

Balance Sheet Account Detail

Balance Sheet Account Detail

(a) Allowance for Doubtful Accounts

The following is the 2010 and 2011 summary of activity for the allowance for doubtful accounts:

Ending balance, December 31, 2009	$	(97	)
Bad debt expense	(39		)
Write offs	18
Ending balance, December 31, 2010	$	(118	)
Bad debt expense	(62		)
Write offs	19
Ending balance, December 31, 2011	$	(161	)

(b) Inventories

Inventories are stated at the lower of cost (determined on a first in, first out basis) or market value. Inventories consisted of the following:

	December 31,
	2011		2010
Raw materials	$	3,260	$	2,051
Work in process	4,617		1,851
Finished goods	10,222		4,448
Inventories	$	18,099	$	8,350

(c) Property and Equipment

Property and equipment consisted of the following:

	December 31,
	2011			2010
Furniture and equipment	$	6,440		$	5,216
Computer hardware and software	1,023			801
Leasehold improvements	2,459			2,281
Construction in progress (software and related implementation, production equipment, and leasehold improvements)	1,133			19
Property and equipment, at cost	11,055			8,317
Less: accumulated depreciation and amortization	(6,601		)	(5,888		)
Property and equipment, net	$	4,454		$	2,429

Depreciation expense for property and equipment for the years ended December 31, 2011, 2010, and 2009 was $1.3 million, $0.9 million, and $1.4 million, respectively.

(d) Goodwill and Intangible Assets

Goodwill at December 31, 2011 and 2010 totaled $27.1 million, of which $22.4 million relates to the acquisition of Nellix. The remaining goodwill of $4.6 million relates to certain historical business combinations.

Intangible assets other than goodwill consisted of the following:

	December 31,
	2011			2010
Goodwill	$	27,073		$	27,073
Intangible assets:
Indefinite lived intangibles
In-process research and development	$	40,100		$	40,100
Trademarks and trade names	2,708			2,708
Finite lived intangibles
Developed technology	$	14,050		$	14,050
Accumulated amortization	(13,465		)	(12,060		)
Developed technology, net	$	585		$	1,990
Patent	100			100
Accumulated amortization	(54		)	(35		)
Patent, net	46			65
Intangible assets (excluding goodwill), net	$	43,439		$	44,863

On December 10, 2010, the Company acquired $40.1 million of in-process research and development as part of the Nellix acquisition. Amortization of this in-process research and development will commence with the launch of the Nellix device. Amortization expense for intangible assets for the years ended December 31, 2011, 2010, and 2009 was $1.4 million in each respective year.

Estimated amortization expense for the three succeeding years and thereafter (which includes estimated amortization of Nellix in-process research and development) is as follows:

Year ending December 31,
2012	$	720
2013	$	318
2014	$	483
2015 and thereafter	$	39,209