BUSINESS COMBINATION:

12 Months Ended

Dec. 31, 2012

BUSINESS COMBINATION:

BUSINESS COMBINATION:

NOTE 3—BUSINESS COMBINATION:

        On February 7, 2011, the Company acquired Voltaire Ltd. ("Voltaire"), an Israeli-based public company, pursuant to an Agreement of Merger (the "Merger Agreement") dated November 29, 2010.

        The Company's allocation of the total purchase price is summarized below (in thousands):

Purchase price allocation:
Current assets	$	52,131
Other long-term assets		10,875
Intangible assets		36,052
Goodwill		132,885
Total assets		231,943
Current liabilities		(11,369	)
Long-term liabilities		(6,606	)
Total liabilities		(17,975	)
Total purchase price allocation	$	213,968

        Intangible assets acquired and their respective estimated remaining useful lives over which each asset will be amortized were:

	Fair value		Weighted average useful life
	(in thousands)		(in years)
Developed technology	$	20,378		2 - 3
In-process research and development		2,754		—
Customer relationship		10,956		4 - 5
Customer contract		1,529		2
Backlog		435		Less than 1
Total acquired intangible assets	$	36,052

        In-process research and development ("IPR&D") represents projects that had not yet reached technological feasibility. Technological feasibility is defined as being equivalent to completion of a beta-phase working prototype in which there is no remaining risk relating to the development. Acquired IPR&D consisted of three projects: Unified Fabric Manager, or "UFM", Acceleration software and Ethernet. Each of these projects is focused on integrating new technologies, improving product performance and broadening features and functionalities. The Acceleration software and Ethernet projects were completed during the year ended December 31, 2011. The UFM project was completed during the second quarter of 2012.

        The goodwill recognized from the acquisition of Voltaire resulted primarily from the Company's anticipated enhanced position in providing end-to-end connectivity solutions, expanding its software and hardware offerings and strengthening its engineering team and sales force. Goodwill will not be amortized but instead will be tested for impairment annually or more frequently if certain indicators are present. Goodwill is not expected to be deductible for tax purposes.