Goodwill and Intangible Assets

9 Months Ended

Apr. 30, 2011

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

3. Goodwill and Intangible Assets

The following table presents details of the Company’s goodwill:

	Amount
	(in thousands)
As of July 31, 2010	$	7,656
Goodwill acquired in acquisition		25,487
As of April 30, 2011	$	33,143

The following table presents details of the Company’s total purchased intangible assets:

	Estimated		Gross		Accumulated			Net
	Useful Lives		Value		Amortization			Value
	(in thousands, except estimated useful lives)
As of April 30, 2011
Existing technology		4 to 5 years	$	22,383	$	(9,363	)	$	13,020
In-process research and development	NA			1,200		—			1,200
Patents/core technology		4 to 6 years		5,846		(2,801	)		3,045
Customer contracts		6 to 7 years		6,933		(2,850	)		4,083
Support agreements		5 to 6 years		2,917		(1,705	)		1,212
Tradenames/trademarks		1 to 5 years		750		(461	)		289
Non-compete agreements	2 years			812		(746	)		66
Total			$	40,841	$	(17,926	)	$	22,915

	Estimated		Gross		Accumulated			Net
	Useful Lives		Value		Amortization			Value
	(in thousands, except estimated useful lives)
As of July 31, 2010
Existing technology	4 years		$	9,283	$	(5,914	)	$	3,369
Patents/core technology	4 years			3,046		(1,940	)		1,106
Customer contracts		6 to 7 years		5,083		(2,020	)		3,063
Support agreements		5 to 6 years		2,717		(1,284	)		1,433
Tradenames/trademarks	5 years			600		(284	)		316
Non-compete agreements	2 years			712		(712	)		—
Total			$	21,441	$	(12,154	)	$	9,287

Amortization expense is recorded in the Consolidated Statements of Operations under the following:

	Three months ended April 30,				Nine months ended April 30,
	2011		2010		2011		2010
	(in thousands)				(in thousands)
Cost of product revenues	$	1,558	$	770	$	4,310	$	2,312
Cost of professional services and support revenues		135		135		405		405
Sales and marketing		375		288		1,057		942
Total amortization expense	$	2,068	$	1,193	$	5,772	$	3,659

The estimated future amortization expense of purchased intangible assets as of April 30, 2011 is as follows:

	Amount
	(in thousands)
Remaining three months of fiscal 2011	$	2,043
Years ending July 31,
2012		6,490
2013		4,753
2014		4,049
2015		3,276
Thereafter		1,104
Total	$	21,715