Fair Value Measurements (Tables)

3 Months Ended

Dec. 28, 2012

Assets and Liabilities Subject to Fair Value Measurements on Recurring Basis

The following table represents financial assets and liabilities that the Company measured at fair value. The Company has classified these assets and liabilities in accordance with the fair value hierarchy set forth in ASC 820:

	Fair Value as of December 28, 2012		Fair Value Measurements at December 28, 2012 Using Fair Value Hierarchy
			Level 1		Level 2		Level 3
	(in thousands)
Assets
Money market fund	$	20,046	$	20,046	$	—	$	—
Assets at fair value	$	20,046	$	20,046	$	—	$	—
Liabilities
Contingent consideration	$	1,866	$	—	$	—	$	1,866
Liabilities at fair value	$	1,866	$	—	$	—	$	1,866
	Fair Value as of September 28, 2012		Fair Value Measurements at September 28, 2012 Using Fair Value Hierarchy
			Level 1		Level 2		Level 3
	(in thousands)
Assets
Money market fund	$	20,040	$	20,040	$	—	$	—
Assets at fair value	$	20,040	$	20,040	$	—	$	—
Liabilities
Contingent consideration	$	1,876	$	—	$	—	$	1,876
Liabilities at fair value	$	1,876	$	—	$	—	$	1,876

Liabilities Measured and Recorded at Fair Value On Recurring Basis Using Unobservable Inputs (Level Three)

The following table presents a reconciliation of the beginning and ending balances of the Company’s liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) at December 28, 2012:

	Contingent Consideration
	(in thousands)
Balance as of September 28, 2012	$	1,876
Additions		—
Change in fair value of contingent consideration		(10	)
Balance as of December 28, 2012	$	1,866

Fair Value Measurements of Contingent Consideration

The fair value measurements of the contingent consideration discussed above were based primarily on significant inputs not observable in the market and thus represent a Level 3 measurement as defined in ASC 820. The key assumptions were as follows:

Quantitative Information about Level 3 Fair Value Measurements as of December 28, 2012
Liability	Fair Value		Valuation Technique	Unobservable Inputs	Selected Input (Range)
(in thousands, except percentages)
Revenue Earnout	$	—	N/A	Probability of Achieving		0.0	%
Business Development Earnout	$	—	N/A	Probability of Achieving		0.0	%
Product Development Earnout (1 of 2)	$	—	Income Approach	Probability of Achieving		0.0	%
Product Development Earnout (2 of 2)	$	2,500	Income Approach	Probability of Achieving		100.0% (90.0% - 100.0	%)
Quantitative Information about Level 3 Fair Value Measurements as of September 28, 2012
Liability	Fair Value		Valuation Technique	Unobservable Inputs	Selected Input (Range)
(in thousands, except percentages)
Revenue Earnout	$	—	N/A	Probability of Achieving		0.00	%
Business Development Earnout	$	—	N/A	Probability of Achieving		0.00	%
Product Development Earnout (1 of 2)	$	—	Income Approach	Probability of Achieving		0.00	%
Product Development Earnout (2 of 2)	$	2,500	Income Approach	Probability of Achieving		100.0% (90.0% - 100.0	%)

Quantitative Information Level Three Fair Value Measurements

The following table represents the Company’s acquired intangible assets subject to fair value measurements that were based primarily on significant inputs not observable in the market and thus represent a Level 3 measurement as defined in ASC 820:

Quantitative Information about Level 3 Fair Value Measurements as of February 6, 2012
Asset	Fair Value		Valuation Technique	Unobservable Inputs	Selected Input (Range)
(in thousands, except percentages)
Trade Names and Trademarks	$	310	Relief from Royalty	Revenue Projections	12.5% Market Share
				Estimated Useful Life	2 years (1 year - 3 years)
Developed Technology	$	11,800	Relief from Royalty	Revenue Attrition	5.0% - 10.0% (5.0% - 10.0%)
				Core Revenue Attributable	25.0% (15.0% - 35.0%)
				Base Revenue Projections	12.5% Market Share
IPR&D	$	800	Income Approach	Revenue Attrition	5.0% (5.0 % - 10.0% per Year)
				Expected Product Cycle	5 Years (3 Years to 7 Years)
				Base Revenue Projections	12.5% Market Share
Customer Relationships	$	1,500	Multi-Period Excess Earnings	Revenue Attrition	20.0% (19.3% - 20.8% per Year)
				Base Revenue Projections	12.5% Market Share
				Margin Improvement	80.0% (60.0% - 90.0% of Sales and Executive Professional Time)
				Estimated Useful Life	7 Years (5 Years to 10 Years)