Fair Value Measurements

3 Months Ended

Mar. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

9. Fair Value Measurements

Assets Measured at Fair Value on a Recurring Basis

			Fair Value Measurements Using
Description	December 31, 2011		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
	(in thousands)
Cash and cash equivalents	$	41,447	$	41,447		—		—		—

			Fair Value Measurements Using
Description	March 31, 2012		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
	(in thousands)
Cash and cash equivalents	$	41,447	$	41,447		—		—		—

The short-term nature of our all of our financial instruments expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market interest rates. There were no transfers between Level I and Level II inputs for any of our assets measured on a recurring basis during the reporting period.

Fair Value of Financial Instruments

The following disclosures relate to financial instruments for which the ending balances at March 31, 2012 and December 31, 2011, are not carried at fair value in their entirety on the Unaudited Condensed Consolidated Balance Sheets (in thousands):

	December 31, 2011
Description	Carrying Value		Fair Value
Accounts receivable		31,697		31,697
Accounts payable		31,434		31,434
Notes payable		71		71
Contingent consideration due to Ciprico		100		100

The following table presents the carrying value and fair value, by fair value hierarchy, of our financial instruments, excluding cash and cash equivalents at March 31, 2012 (in thousands).

			Fair Value Measurements Using
Description	March 31, 2012		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
Accounts receivable		35,138		—		35,138		—		—
Accounts payable		36,710		—		36,710		—		—
Contingent consideration due to Ciprico		100		—				100		—

The short-term nature of our all of our financial instruments expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market interest rates.

The note payable owed to the former owners of Ciprico was initially determined by discounting both principal and interest cash flows expected to be collected using a discount rate for similar instruments with adjustments we believes a market participant would consider in determining fair value. As the final installment of this note payable was settled in the first quarter 2012 the short-term nature is such that the carrying value approximates market value.

Our contingent consideration to the former owners of Ciprico includes assumptions about estimated future sales of our AssuredVRA technology over the agreed-upon royalty term, of which approximately 6.67% is required to be paid to Ciprico under the royalty agreement. This valuation is sensitive to changes in customer demand and forecasted sales of our AssuredVRA technology through March 31, 2012. There were no transfers between Level I and Level II inputs for any of our assets measured on a recurring basis during the reporting period.