Intangible Assets

3 Months Ended

Mar. 31, 2012

Intangible Assets [Abstract]

Intangible Assets

5. 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

			March 31, 2012
	Estimated Useful Life		Gross		Accumulated Amortization			Net
RaidCore technology		4 years	$	4,256	$	(3,743	)		513
Software		Less than 1 year		2,050		(403	)		1,647
Total intangible assets			$	6,306	$	(4,146	)	$	2,160

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 1). 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. As of the time of that evaluation we were actively marketing the software for sale and currently believe the cash flows from a potential sale will recover the recorded book value. We are continuing to actively market the software as of the date of these financial statements. Accordingly, we did not record further impairment in the first quarter. However, if we are unsuccessful in locating a buyer we will abandon the software and at that time would record additional impairment. We expect to finalize this determination in the second quarter. Additionally, we expect to report the underlying business as discontinued operations commencing in the second quarter. Amortization expense related to intangible assets totaled $0.5 million and $0.4 million for the three months ended March 31, 2011 and 2012, respectively.

Estimated future amortization expense related to intangible assets as of March 31, 2012 is as follows (in thousands):

2012 (Remaining 9 months)	$	513
Thereafter		—
Total	$	513