Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 17. Commitments and Contingencies

Legal Matters

We are subject to legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. While the outcome of these proceedings and claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Leases

We lease certain office space, manufacturing facilities and equipment under long-term operating leases expiring at various dates through November 2015. The lease agreement for the facility at Fremont, California with approximately 27,760 square feet commenced on December 1, 2008 for a term of seven years, with an option by us to cancel the lease after five years, upon forfeiture of the security deposit and payment of one-half of the fifth year's rent. Total rent expenses under these operating leases were $460,000, $308,000 and $298,000 for the years ended December 31, 2011, 2010 and 2009, respectively. Total minimum lease payments under these leases as of December 31, 2011 are summarized below (in thousands):

	Lease Payments
2012	$	376
2013		371
2014		315
2015		286
	$	1,348

Royalty Agreement

We entered into a royalty agreement with a vendor effective December 3, 2010 with a term of eight years, terminating December 31, 2018.  We and our related companies are granted a worldwide, nonexclusive, royalty bearing, irrevocable license to certain patents for the term on the agreement. We shall pay a total of $7.0 million royalty payment over eight years that began in 2011 based on future royalty bearing sales.  Royalty expense under this agreement was $1.3 million for the year ended December 31, 2011 and was included in cost of revenue. Total royalty payments under this agreement as of December 31, 2011 are summarized below (in thousands):

	Royalty Payments
2012	$	1,375
2013		800
2014		800
2015		800
2016		575
Thereafter		1,150
	$	5,500