Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Identifiable intangible assets are as follows (in thousands):

		December 31, 2011
	Estimated Useful  Life	Gross		Accumulated Amortization			Net
RaidCore technology	4 years	$	4,256	$	(3,477	)	$	779
NAS technology	3 years	214		(214		)	—
Software	3 years	2,050		(228		)	1,822
Total intangible assets		$	6,520	$	(3,919	)	$	2,601

		September 30, 2012
	Estimated Useful  Life	Gross		Accumulated Amortization			Net
RaidCore technology	4 years	$	4,256	$	(4,256	)	$	—
Total intangible assets		$	4,256	$	(4,256	)	$	—

As of December 31, 2011, we recorded a $2.8 million impairment of our acquired internally developed software and $0.1 million impairment of our trade name (see Note 3). Effective with the February 6, 2012 announced restructuring plan, the AssuredUVS product family would no longer be marketed to customers and the underlying UVS technology would either be disposed of through a sale to a potential acquirer or, in the event a buyer could not be located, abandoned. Accordingly, the acquired software was temporarily idled, and no additional amortization expense incurred subsequent to the February 6, 2012 announcement of the 2012 restructuring plan. In accordance with ASC 350, we evaluated the software for impairment as of February 6, 2012. At the time of that evaluation we were actively marketing the software for sale and believed the cash flows from a potential sale would have recovered the recorded book value. We continued actively marketing the software through June 2012. However, we were unsuccessful and all efforts toward locating a potential acquirer ceased as of June 30, 2012. Accordingly, we recognized an impairment for the remaining $1.6 million of acquired software as a component of cost of goods sold as of June 30, 2012. Additionally we are now reporting the underlying business as discontinued operations, since we have ceased all ongoing operational activities as of September 30, 2012. Amortization expense related to intangible assets totaled $0.5 million, $0.2 million, $1.6 million and $1.0 million, for the three and nine months ended September 30, 2011 and 2012, respectively, including $0.2 million, $0.0 million, $0.7 million and $0.2 million, for the three and nine months ended September 30, 2011 and 2012, respectively, for discontinued operations.