Note 5 - Intangible Assets

6 Months Ended

Jul. 29, 2017

Notes to Financial Statements

Business Combination Disclosure [Text Block]

5.

          Intangible assets

The tables below present the balances of our intangible assets (in thousands, except for years):

	July 29, 2017
	Gross Value		Impairment			Accumulated Amortization and Effect of Currency Translation			Net Value		Weighted Average Remaining Amortization Period (Years)
Acquired intangible assets:
Developed technology	$	85,427	$	(24,614	)	$	(53,675	)	$	7,138		7.2
Customer relationships		54,505		(30,486	)		(21,169	)		2,850		5.3
Trademarks and other		4,078		-			(3,918	)		160		1.3
Purchased IP - amortizing		35,978		(5,516	)		(25,111	)		5,351		2.0
Total amortizing		179,988		(60,616	)		(103,873	)		15,499		5.0
Purchased IP - not yet deployed		19,146		(7,446	)		-			11,700
Total intangibles	$	199,134	$	(68,062	)	$	(103,873	)	$	27,199

	January 28, 2017
	Gross Value		Impairment			Accumulated Amortization and Effect of Currency Translation			Net Value		Weighted Average Remaining Amortization Period (Years)
Acquired intangible assets:
Developed technology	$	85,427	$	(24,614	)	$	(52,854	)	$	7,959		7.4
Customer relationships		54,505		(30,486	)		(20,897	)		3,122		5.8
Trademarks and other		4,078		-			(3,858	)		220		1.9
Purchased IP - amortizing		36,007		(5,516	)		(23,057	)		7,434		2.3
Total amortizing		180,017		(60,616	)		(100,666	)		18,735		5.0
Purchased IP - not yet deployed		16,449		(4,440	)		-			12,009
Total intangibles	$	196,466	$	(65,056	)	$	(100,666	)	$	30,744

Acquired intangible assets represent intangible assets acquired through business combinations. Purchased intellectual property (“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 IP 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 IP is incorporated. The table above includes, as of

July 29, 2017,

purchased IP

not

yet deployed of

$1.0

million, which represents our share of the cost incurred in connection with the collaborative arrangement discussed in Note

11.

As part of our restructuring plan as discussed in Note

7,

we recorded impairment charges for purchased IP

not

yet deployed for the

three

and

six

months ended

July 29, 2017

of

zero

and

$3.0

million, respectively.

The following table presents the amortization of intangible assets in the accompanying condensed consolidated statements of operations (in thousands):

	Three Months Ended				Six Months Ended
	July 29 , 201 7		July 30 , 201 6		July 29 , 2 01 7		July 30 , 201 6
Cost of revenue	$	1,120	$	1,975	$	2,293	$	4,028
Operating expenses		448		713		895		1,430
Total intangibles amortization expense	$	1,568	$	2,688	$	3,188	$	5,458

As of

July 29, 2017,

we expect amortization expense in future periods to be as follows (in thousands):

Fiscal year	Total
2018 (remaining six months)	$	2,484
2019		4,319
2020		2,833
2021		1,588
2022		1,243
Thereafter		3,032
Total	$	15,499