Note 5 - Goodwill and Acquisition-Related Intangible Assets, Net

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

5. GOODWILL AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET

There have been no changes in the balance of goodwill during the three and nine months ended September 30, 2015.

Acquisition-related intangible assets consist of the following (in thousands):

	As of September 30, 2015
	Gross Amount		Accumulated Amortization			Net Amount
Subject to amortization:
Know-how	$	1,018	$	(246	)	$	772
Developed technologies		6,466		(1,672	)		4,794
Total	$	7,484	$	(1,918	)	$	5,566

	As of December 31, 2014
	Gross Amount		Accumulated Amortization			Net Amount
Subject to amortization:
Know-how	$	1,018	$	(93	)	$	925
Developed technologies		4,421		(579	)		3,842
Not subject to amortization:
IPR&D		2,045		-			2,045
Total	$	7,484	$	(672	)	$	6,812

During the third quarter of 2015, management determined that the acquired IPR&D from the Sensima acquisition was completed and the products incorporating the technologies are ready to be commercially introduced. Accordingly, the acquired IPR&D was reclassified into developed technologies as a finite-lived intangible asset and is being amortized over its estimated useful life.

Amortization expense is recorded in cost of revenue in the Condensed Consolidated Statements of Operations and totaled $0.5 million and $1.2 million for the three and nine months ended September 30, 2015, respectively. Amortization expense totaled $0.3 million for both the three and nine months ended September 30, 2014.

As of September 30, 2015, the estimated future amortization expense was as follows (in thousands):

2015 (remaining three months)	$	513
2016		2,051
2017		2,051
2018		841
2019		110
Total	$	5,566