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Note 7 - Intangible Assets
 9 Months Ended
Nov. 01, 2014
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
7.             Intangible assets
 
The tables below present the balances of our intangible assets (in thousands, except for years):
 
 
 
November 1, 2014
 
 
 
Gross
Value
 
 
Accumulated
Impairment
Charges
 
 
Accumulated
Amortization
and Effect of
Currency
Translation
 
 
Net Value
 
 
Weighted
Average
Remaining
Amortization
Period
(Years)
 
Acquired intangible assets:
                                        
Developed technology
   $ 76,639     $ (24,614
)
   $ (43,553
)
   $ 8,472       2.2  
Customer relationships
     50,704       (30,486
)
     (17,997
)
     2,221       2.0  
Trademarks and other
     4,078       -       (3,591
)
     487       4.2  
Purchased IP - amortizing
     23,198       (5,516
)
     (14,195
)
     3,487       1.1  
Total amortizing
     154,619       (60,616
)
     (79,336
)
     14,667       2.0  
Purchased IP - not yet deployed
     13,705       (3,629
)
     -       10,076          
Total intangibles
   $ 168,324     $ (64,245
)
   $ (79,336
)
   $ 24,743          
  
  
 
 
February 1, 2014
 
 
 
Gross
Value
 
 
Accumulated
Impairment
Charges
 
 
Accumulated
Amortization
and Effect of
Currency
Translation
 
 
Net Value
 
 
Weighted
Average
Remaining
Amortization
Period
(Years)
 
Acquired intangible assets:
                                        
Developed technology
   $ 76,639     $ (24,614
)
   $ (40,334
)
   $ 11,691       2.9  
Customer relationships
     50,704       (30,486
)
     (17,048
)
     3,170       2.7  
Trademarks and other
     4,078       -       (3,502
)
     576       4.9  
Purchased IP - amortizing
     21,569       (5,516
)
     (11,464
)
     4,589       1.5  
Total amortizing
     152,990       (60,616
)
     (72,348
)
     20,026       2.6  
Purchased IP - not yet deployed
     12,770       (3,016
)
     -       9,754          
Total intangibles
   $ 165,760     $ (63,632
)
   $ (72,348
)
   $ 29,780          
  
Acquired intangible assets represent intangible assets acquired through business combinations. Purchased intellectual property (“Purchased IP”) represents intangible assets acquired through direct purchases of licensed technology from vendors which is incorporated into our products.
 
Purchased IP – not yet deployed relates to Purchased IP from third parties for our products that are currently in development. We begin amortizing such intellectual property upon the earlier of the beginning of the term of the license agreement, as appropriate, or at the time we begin shipment of the associated products into which such intellectual property is incorporated.
 
 
SIGMA DESIGNS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 
The following table presents the amortization of intangible assets in the accompanying condensed consolidated statements of operations (in thousands):
 
 
 
Three Months Ended
 
 
Nine
Months Ended
 
 
 
November 1
,
201
4
 
 
November 2
,
201
3
 
 
November 1
,
201
4
 
 
November 2
,
201
3
 
Cost of sales
   $ 2,000     $ 2,257     $ 5,924     $ 6,848  
Operating expenses
     354       383       1,064       1,165  
Total intangibles amortization expense
   $ 2,354     $ 2,640     $ 6,988     $ 8,013  
  
As of November 1, 2014, we expect amortization expense in future periods to be as follows (in thousands):
 
Fiscal year
 
Total
 
2015 (remaining three months)
   $ 2,353  
2016
     7,394  
2017
     4,180  
2018
     636  
2019
     104  
Total
  $ 14,667