Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2012

Goodwill by Segment and Changes in Carrying Amount of Goodwill

The following table presents goodwill and changes in the carrying amount of goodwill for each of the Company’s business segments as of June 30, 2012, and December 31, 2011 (in thousands):

	Total			Identity Management			ID Products
Balance at December 31, 2010	$	47,126		$	37,955		$	9,171
Goodwill acquired during the period		10,518			10,518			—
Goodwill measurement period adjustment		118			—			118
Currency translation adjustment		642			365			277
Balance at December 31, 2011		58,404			48,838			9,566
Goodwill acquired during the period		12,958			12,958			—
Goodwill impaired during the period		(21,450	)		(15,613	)		(5,837	)
Currency translation adjustment		(962	)		(943	)		(19	)
Balance at June 30, 2012	$	48,950		$	45,240		$	3,710

Summary of Gross Carrying Amount and Accumulated Amortization for Intangible Assets Resulting from Acquisitions

The following table summarizes the gross carrying amount and accumulated amortization for the intangible assets resulting from acquisitions (in thousands):

	Order Backlog			Trade Secrets			Patents			Existing Technology			Customer Relationship			Trade Name			Total
Cost:
Amortization period		0.25 -1 year			1 -2 years			12 years			6 -15 years			4 -15 years			1 -10 years and Indefinite			Total
Balance at December 31, 2010	$	724		$	—		$	—		$	5,462		$	22,742		$	9,221		$	38,149
Acquired as a part of idOnDemand acquisition		17			300			790			2,700			390			60			4,257
Acquired as a part of polyright acquisition		246			—			—			—			1,290			—			1,536
Currency translation adjustment		(39	)		—			—			8			373			86			428
Balance at December 31, 2011	$	948		$	300		$	790		$	8,170		$	24,795		$	9,367		$	44,370
Acquired as a part of payment solution acquisition		344			—			—			2,023			1,323			542			4,232
Impairment of intangible assets		(841	)		(300	)		(790	)		(4,359	)		(10,540	)		(8,507	)		(25,337	)
Currency translation adjustment		(22	)		—			—			(88	)		(156	)		(37	)		(303	)
Balance at June 30, 2012	$	429								$	5,746		$	15,422		$	1,365		$	22,962
Accumulated Amortization
Balance at December 31, 2010		(718	)		—			—			(595	)		(2,970	)		(1	)		(4,284	)
Amortization expense		(235	)		(120	)		(44	)		(715	)		(2,946	)		(37	)		(4,097	)
Currency translation adjustment		5			—			—			15			(8	)		—			12
Balance at December 31, 2011	$	(948	)	$	(120	)	$	(44	)	$	(1,295	)	$	(5,924	)	$	(38	)	$	(8,369	)
Amortization expense		(37	)		(90	)		(33	)		(550	)		(1,661	)		(49	)		(2,420	)
Impairment of intangible assets		677			210			77			743			3,644			74			5,425
Currency translation adjustment		10			—			—			7			45			—			62
Balance at June 30, 2012	$	(298	)	$	—		$	—		$	(1,095	)	$	(3,896	)	$	(13	)	$	(5,302	)
Intangible Assets, net at June 30, 2012	$	131		$	—		$	—		$	4,651		$	11,526		$	1,352		$	17,660
Intangible Assets, net at December 31, 2011	$	—		$	180		$	746		$	6,875		$	18,871		$	9,329		$	36,001

Amortization Expense Included in Condensed Consolidated Statements of Operations

The following table illustrates the amortization expense included in the condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of revenue	$	366	$	225	$	703	$	346
Selling and marketing		893		724		1,717		1,390
Total	$	1,259	$	949	$	2,420	$	1,736

Estimated Future Amortization Expense of Purchased Intangible Assets with Definite Lives

The estimated future amortization expense of purchased intangible assets with definite lives for the next five years is as follows (in thousands):

June 30, 2012:
2012 (remaining six months)	$	1,561
2013		2,558
2014		1,685
2015		1,668
2016		1,488
2017 and thereafter		8,700
Total	$	17,660