Intangible Assets

12 Months Ended

Oct. 31, 2011

Intangible Assets [Abstract]

Intangible Assets

(7)        Intangible Assets

Intangible assets consisted of the following at October 31, 2011 and 2010:

(In thousands)	2011	2010
Intangible assets:
Developed technology	$ 6,788	$ 6,820
Trademarks (unamortized)	67	62
Capitalized software in progress	589	219
	7,444	7,101
Amortization – developed technology	(6,243)	(5,822)
	$ 1,201	$ 1,279

Gross intangible assets increased over the prior year end values by $343,000 and $278,000 for the years ended October 31, 2011 and 2010, respectively. These increases consisted of $5,000 and $3,000 classified as trademarks, $17,000 and $56,000 related to patents, and $370,000 and $219,000 of capitalized software in progress, respectively. Increases for the year ended October 31, 2011 were reduced by $49,000 of costs related to patents written off when the decision was made to no longer pursue patent rights on certain processes.

The intangible assets related to developed technology are being amortized using the straight-line method over the estimated useful lives of the assets, which range from seven to ten years. Amortization expense was $420,000 for each of the years ended October 31, 2011 and 2010.

Certain internal and external costs related to the acquisition and development within our software development initiative producing software for sale are capitalized within intangible assets during the application development stages of the project as capitalized software in progress.

Estimated amortization expense for each of the succeeding fiscal years based on the intangible assets as of October 31, 2011 is as follows:

(In thousands)	Amortization
2012	$ 420
	$ 420

The above table does not include estimated amortization expense for patents of $125,000, included in developed technology and for capitalized software costs of $589,000, which are not yet placed in service.