Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2013

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 September30, 2013, and December31, 2012 (in thousands):

	Total			Identity Management			IDProducts
Balance at December31, 2011	$	59,044		$	49,478		$	9,566
Goodwill acquired during the period		12,958			12,958			—
Goodwill measurement period adjustment		297			297			—
Goodwill impairment during the period		(27,084	)		(18,712	)		(8,372	)
Currency translation adjustment		55			16			39
Balance at December31, 2012		45,270			44,037			1,233
Goodwill impairment during the period		(22,622	)		(22,622	)		—
Currency translation adjustment		75			61			14
Balance at September30, 2013	$	22,723		$	21,476		$	1,247

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		0.25-1year			1-2years			12years				6-12years				4-12years				1-10years
Balance at December31, 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		(1,018	)		(300	)		(790	)			(5,489	)			(15,210	)			(9,294	)			(32,101	)
Currency translation adjustment		3			—			—				(104	)			(176	)			(45	)			(322	)
Balance at December31, 2012	$	277		$	—		$	—		$		4,600		$		10,732		$		570		$		16,179
Impairment of intangible assets		(277	)		—			—				—				—				—				(277	)
Currency translation adjustment		—			—			—				—				8				—				8
Balance at September30, 2013	$	—		$	—		$	—		$		4,600		$		10,740		$		570		$		15,910
Accumulated Amortization:
Balance at December31, 2011	$	(948	)	$	(120	)	$	(44	)	$		(1,295	)	$		(5,924	)	$		(38	)	$		(8,369	)
Amortization expense		(72	)		(90	)		(33	)			(695	)			(2,055	)			(332	)			(3,277	)
Impairment of intangible assets		959			210			77				865				5,118				87				7,316
Currency translation adjustment		(10	)		—			—				—				45				(2	)			33
Balance at December31, 2012	$	(71	)	$	—		$	—		$		(1,125	)	$		(2,816	)	$		(285	)	$		(4,297	)
Amortization expense		(59	)		—			—				(230	)			(589	)			(285	)			(1,163	)
Impairment of intangible assets		130			—			—				—				—				—				130
Currency translation adjustment		—			—			—				—				(8	)			—				(8	)
Balance at September30, 2013	$	—		$	—		$	—		$		(1,355	)	$		(3,413	)	$		(570	)	$		(5,338	)
Intangible Assets, net at September30, 2013	$	—		$	—		$	—		$		3,245		$		7,327		$		—		$		10,572
Intangible Assets, net at December31, 2012	$	206		$	—		$	—		$		3,475		$		7,916		$		285		$		11,882

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 nine months ended September30, 2013 and 2012 (in thousands):

	ThreeMonthsEnded					NineMonthsEnded
	September30,					September30,
	2013		2012			2013			2012
Cost of revenue	$	96	$	91	$		289	$		794
Selling and marketing		197		333			874			2,050
Total	$	293	$	424	$		1,163	$		2,844

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):

September 30, 2013:
2013 (remaining three months)	$	388
2014		1,455
2015		1,455
2016		1,455
2017		1,455
2018 and thereafter		4,364
Total	$	10,572