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Acquisitions (Tables)
12 Months Ended
Dec. 31, 2014
Auto USA [Member]  
Fair value of consideration transferred

The AutoUSA Acquisition Date fair value of the consideration transferred totaled $11.9 million, which consisted of the following:

 

    (in thousands)  
Cash (including a working capital adjustment of $44)   $ 10,044  
Convertible subordinated promissory note     1,300  
Warrant to purchase $1.0 million of Company common stock     510  
    $ 11,854  
Fair value of assets and liabilities assumed

 

    (in thousands)  
Net identifiable assets acquired   $ 758  
Long-lived intangible assets acquired     3,750  
Goodwill     7,346  
    $ 11,854  

 

Acquired intangible assets

The acquired intangible assets include the following:

 

 

 

Valuation Method

 

Estimated

Fair Value

   

Estimated

Useful Life (1)

 
      (in thousands)     (years)  
               
Non-compete agreements Discounted cash flow(2)   $ 90       2  
Customer relationships Excess of earnings(3)     2,660       5  
Trademark/trade names Relief from Royalty(4)     1,000       5  
     Total purchased intangible assets     $ 3,750          

 

(1)   Determination of the estimated useful lives of the individual categories of purchased intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from such intangible asset. Amortization of intangible assets with definite lives are recognized over the shorter of the respective lives of the agreement or the period of time the assets are expected to contribute to future cash flows. 
(2) The non-compete agreement fair value was derived by calculating the difference between the present value of the Company's forecasted cash flows with the agreements in place and without the agreements in place. 
(3) The excess of earnings method estimates a purchased intangible asset's value based on the present value of the prospective net cash flows (or excess earnings) attributable to it. The value attributed to these intangibles was based on projected net cash inflows from existing contracts or relationships. 
(4) The relief from royalty method is an earnings approach which assesses the royalty savings an entity realizes since it owns the asset and isn’t required to pay a third party a license fee for its use.
Unaudited pro forma consolidated results of operations

The unaudited pro forma consolidated results of operations, assuming the acquisition had occurred on January 1, 2013, are as follows (in thousands):

 

   

Twelve Months Ended

December 31, 2013

 
Unaudited pro forma consolidated results:      
Revenues   $ 104,461  
 Net income     39,614  
Advanced Mobile [Member]  
Fair value of consideration transferred

The Advanced Mobile Acquisition Date fair value of the consideration transferred totaled $3.4 million, which consisted of the following:

 

    (in thousands)  
       
Cash (including working capital adjustment of $70)   $ 2,570  
Contingent consideration     825  
    $ 3,395  

 

Fair value of assets and liabilities assumed

The following table summarizes the fair values of the assets acquired and liabilities assumed at the Advanced Mobile Acquisition Date.  

 

    (in thousands)  
       
Net identifiable assets acquired   $ 90  
Definite-lived intangible assets acquired     1,380  
Goodwill     1,925  
Net assets acquired   $ 3,395  

 

Acquired intangible assets

The acquired intangible assets include the following:

 

 

 

 

Valuation Method

 

Estimated

Fair Value

   

Estimated

Useful Life (1)

 
      (in thousands)     (years)  
               
Non-compete agreements Discounted cash flow (2)   $ 110       5  
Customer relationships Excess of earnings (3)     450       2  
Developed technology Excess of earnings (3)     820       5  
     Total purchased intangible assets     $ 1,380          

 

(1)

 

Determination of the estimated useful lives of the individual categories of purchased intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from such intangible asset. Amortization of intangible assets with definite lives are recognized over the shorter of the respective lives of the agreement or the period of time the assets are expected to contribute to future cash flows.

 

(2)

The non-compete agreement fair value was derived by calculating the difference between the present value of the Company’s forecasted cash flows with the agreements in place and without the agreements in place.

 

(3) The excess of earnings method estimates a purchased intangible asset’s value based on the present value of the prospective net cash flows (or excess earnings) attributable to it. The value attributed to these intangibles was based on projected net cash inflows from existing contracts or relationships.

 

Unaudited pro forma consolidated results of operations

 

The unaudited pro forma consolidated results of operations, assuming the acquisition had occurred on January 1, 2013, are as follows (in thousands):

 

   

Twelve Months Ended

December 31, 2013

 
Unaudited pro forma consolidated results:      
Revenues   $ 79,083  
 Net income     38,038