PURCHASED INTANGIBLES

6 Months Ended

Oct. 31, 2011

PURCHASED INTANGIBLES

PURCHASED INTANGIBLES

4.          PURCHASED INTANGIBLES

The carrying value of purchased intangible assets acquired in business combinations is as follows (in thousands):

	Gross Value		Accumulated Amortization			Net Value
Purchased Intangible Assets
Core technology	$	242	$	(141	)	$	101
Total	$	242	$	(141	)	$	101

	Gross Value		Accumulated Amortization		Net Value
Purchased Intangible Assets
Core technology	$	242	$	(101	$	141
URL	300		—		300
Total	$	542	$	(101	$	441

In February 2010, the Company completed a small acquisition of 100% of the outstanding shares of Grid.com, a Company with infrastructure to deliver services with simple credit card billing through the web. The purchase price, net of $0.1 million of cash received from Grid.com, totaled $0.5 million.  This purchase price, which included $35,000 of value attributable to a warrant issued for 100,000 shares of the Company’s common stock at an exercise price of $3.50 per share, based on a Black-Scholes valuation, was allocated to identified intangibles through established valuation techniques in the high-technology communications equipment industry.  The warrant expires in February 2013. As a result, the Company recorded an incremental $0.2 million in core technology intangible assets and $0.3 million related to the URL, the latter of which the Company sold in July of 2011 for approximately $0.2 million, net of expenses.

The Company recorded $40,000, in the six months ended October 31, 2011 and 2010, respectively, of amortization of purchased intangible assets.

Estimated future amortization expense for the core technology purchased intangible asset as of October 31, 2011 is as follows (in thousands):

	Years ended April 30,
2012 (six months)	$	40
2013	61
	$	101