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Goodwill and Amortizable Intangible Assets
9 Months Ended
Sep. 30, 2011
Goodwill and Amortizable Intangible Assets [Abstract] 
Goodwill and Amortizable Intangible Assets (9) Goodwill and Amortizable Intangible Assets

(9) Goodwill and Amortizable Intangible Assets — During the second quarter of 2011, the Company reduced the carrying amount of the goodwill recognized as a result of the Amcom acquisition by $0.1 million due to purchase accounting adjustments (see Note 5). Also, during the second quarter of 2011, the Company reduced goodwill by $0.2 million to reflect working capital adjustments as provided for in the Merger Agreement. Goodwill is not amortized. The Company is required to evaluate goodwill for a reporting unit for impairment at least annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The Company has selected the fourth quarter to perform its annual impairment test. For this determination, software operations are considered the reporting unit. If the fair value of the reporting unit is less than its carrying value, an impairment loss is required to be recorded to the extent that the implied value of goodwill within the reporting unit is less than the carrying value.

Other intangible assets were recorded at fair value at the date of acquisition and amortized over periods generally ranging from two to fifteen years.

 

The gross carrying amount of amortizable intangible assets for the wireless operations was $0.4 million, and $43.6 million for software operations. The accumulated amortization for wireless operations was $0.1 million, and $3.6 million for software operations. The net consolidated balance of amortizable intangible assets consisted of the following:

 

                             
        September 30, 2011  
    Useful Life
(In Years)
  Gross Carrying
Amount
    Accumulated
Amortization
    Net Balance  
        (Dollars in thousands)  
         

Customer relationships

  10   $         25,002     $     (1,458)     $     23,544  

Acquired technology

  2 - 4     7,083       (1,172)       5,911  

Non-compete

  3 - 5     6,182       (815)       5,367  

Trademark

  15     5,702       (222)       5,480  
       

 

 

   

 

 

   

 

 

 

Total amortizable intangible assets

      $ 43,969     $ (3,667)     $ 40,302  
       

 

 

   

 

 

   

 

 

 

Estimated amortization of intangible assets for future periods was as follows:

 

         
    (Dollars in thousands)  
   

For the remaining three months ending December 31, 2011

  $                   1,545  

For the year ending:

       

December 31, 2012

    6,183  

December 31, 2013

    5,750  

December 31, 2014

    5,564  

December 31, 2015

    4,286  

Thereafter

    16,974  
   

 

 

 

Total

  $ 40,302