BUSINESS COMBINATION: (Tables)

12 Months Ended

Dec. 31, 2013

IPtronics and Kotura

BUSINESS COMBINATION

Schedule of purchase consideration related to each acquisition

Company Acquired	CashConsiderationPaid		Cash Assumed		Net Cash Paid
	(in thousands)
IPtronics	$	44,925	$	2,077	$	42,848
Kotura	80,772		101		80,671
Total	$	125,697	$	2,178	$	123,519

Summary of allocation of the total purchase price

	IPtronics			Kotura			Total
	(in thousands)
Current assets, net of cash	$	2,534		$	5,606		$	8,140
Other long-term assets	974			10,603			11,577
Intangible assets	17,229			27,517			44,746
Goodwill	25,630			40,681			66,311
Total assets	46,367			84,407			130,774
Current liabilities	(2,668		)	(3,357		)	(6,025		)
Long-term liabilities	(851		)	(379		)	(1,230		)
Total liabilities	(3,519		)	(3,736		)	(7,255		)
Total purchase price allocation	$	42,848		$	80,671		$	123,519

Schedule of intangible assets acquired and their respective estimated remaining useful life

	Fair value		WeightedAverageUseful life
	(in thousands)		(in years)
Purchased intangible assets:
Licensed technology	$	135	6
Developed technology	27,701		5
In-process research and development	13,764		—
Customer relationship	2,420		1-2
Backlog	726		Less than 1
Total purchased intangible assets	$	44,746

Summary of significant assumptions underlying the valuations of IPR&D at acquisition

Company	Development Projects	AverageEstimatedtimeto complete	Estimatedcostto complete		RiskAdjustedDiscount Rate		Fair value
		(in months)	(in thousands)		(%)		(in thousands)
IPtronics	Modulator drivers - 4x25Gb/s	18	$	9,549	19.5	%	$	4,121
Kotura	Silicon photonics modulator - 4x25Gb/s	18	17,210		16.5	%	9,643
			$	26,759			$	13,764

Schedule of unaudited pro forma information

As a result, actual results will differ from the unaudited pro forma information presented (in thousands, except per share data):

	Year Ended
	December 31, 2013			December 31, 2012
	(in thousands, except per share data)
Pro forma net revenue	$	402,107		$	521,780
Pro forma net income (loss)	$	(30,613	)	$	100,748
Pro forma net income (loss) per share basic	$	(0.71	)	$	2.44
Pro forma net income (loss) per share diluted	$	(0.71	)	$	2.29

Voltaire Ltd

BUSINESS COMBINATION

Summary of allocation of the total purchase price

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	$	213,968

Schedule of intangible assets acquired and their respective estimated remaining useful life

	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