Note 3 - Intangible Assets

6 Months Ended

Dec. 31, 2011

Note 3 - Intangible Assets Disclosure

Note 3 - Intangible Assets

(3) Intangible Assets

The major components of intangible assets are as follows:

	December 31, 2011				June 30, 2011
(amounts in thousands)	Gross		Net		Gross		Net
	Carrying		Carrying		Carrying		Carrying
	Amount		Amount		Amount		Amount
Amortizable intangible assets:
Customer relationships	$	7,530	$	4,970	$	7,530	$	5,346
Developed technology		780		246		780		325
Non-competition agreements		1,130		169		1,130		310
Total	$	9,440		5,385	$	9,440		5,981
Non-amortizable intangible assets:
Trade names				2,980				2,980
Total intangible assets			$	8,365			$	8,961

Intangible asset amortization expense for the three months ended December 31, 2011 and 2010 aggregated $ 0.3 million in each period and for the six months ended December 30, 2011 and 2010 aggregated $ 0.6 million in each period.  Amortization expense related to developed technology is recorded in cost of sales, and amortization expense for non-competition agreements and customer relationships is recorded in general and administrative expense. There have been no changes to the goodwill balance in the three and six months ended December 31, 2011.

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Testing Goodwill for Impairment, which amends the guidance in Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other. Under the revised guidance, when testing goodwill for impairment the Company has the option of performing a qualitative assessment before calculating the fair value of a reporting unit. If the Company determines, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two-step impairment test would be required.  This ASU is effective for the Company beginning in fiscal year 2013.