Goodwill & Other Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill & Other Intangible Assets [Abstract]

Goodwill & Other Intangible Assets

(4) Goodwill & Other Intangible Assets, in thousands

Goodwill

Goodwill resulted from the acquisitions of Type Solutions, Inc. and Alaras Corporation, both acquired in 1998, as well as the purchase of certain assets from Press-Sense Ltd. on June 3, 2010. Goodwill was $3,526 at September 30, 2011 and December 31, 2010.

The Company follows the accounting and reporting requirements for goodwill and other intangible assets as required by authoritative standards. Under these standards, goodwill is not amortized, but is required to be reviewed annually for impairment, or more frequently if impairment indicators arise. The Company has determined that it does not have separate reporting units and thus goodwill is tested for impairment based upon an enterprise wide valuation. The Company has not recorded any impairment charges related to goodwill since the time of the change to the authoritative guidance which called for goodwill to be reviewed for impairment based on the results of impairment tests rather than amortized.

Capitalized Software Development Costs

The Company is capitalizing certain costs associated with the translation of its Pageflex Storefront product into ten additional languages. This development is expected to be complete during its second quarter 2012 and to be amortized over a seven year useful life.

Other Intangible Assets

The carrying amounts of other intangible assets were $3,182 and $3,479 as of September 30, 2011 and December 31, 2010, respectively. Intangible assets acquired in a business combination are recorded under the purchase method of accounting at their estimated fair values at the date of acquisition. The Company amortizes other intangible assets over their estimated useful lives on a straight-line basis, which approximates the estimated realization of cash flow from these assets. Marketing-related intangibles have useful lives of four to eight years. Technology-based intangible assets have useful lives of five to twelve years. The weighted average useful life of other intangible assets is 9 years.

The components of the Company's amortized intangible assets are as follows:

		0000000000		0000000000			0000000000
	September 30, 2011
	Gross  Carrying Amount		Accumulated Amortization			Net Carrying Amount
Marketing-related	$	2,296	$	(341	)	$	1,955
Technology-based		2,080		(853	)		1,227
Total	$	4,376	$	(1,194	)	$	3,182

		0000000000		0000000000			0000000000
	December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Marketing-related	$	2,292	$	(195	)	$	2,097
Technology-based		2,069		(687	)		1,382
Total	$	4,361	$	(882	)	$	3,479

Amortization expense for marketing-related intangible assets included in marketing and selling expense for the three months ended September 30, 2011 and 2010 was $48 for both periods. Amortization expense for technology-related intangible assets included as cost of revenue for the three months ended September 30, 2011 and 2010 was $47 for both periods. Amortization expense for intangible assets included as general and administrative expense for the three months ended September 30, 2011 and 2010 was $9 and $7, respectively. Amortization expense for marketing-related intangible assets included in marketing and selling expense for the nine months ended September 30, 2011 and 2010 was $144 and $64, respectively. Amortization expense for technology-related intangible assets included as cost of revenue for the nine months ended September 30, 2011 and 2010 was $141 and $63, respectively. Amortization expense for intangible assets included in general and administrative expense for the nine months ended September 30, 2011 and 2010 was $27 and $22, respectively. Estimated amortization for succeeding years is as follows:

Estimated Amortization Expense:
2011, remaining	$	103
2012		408
2013		400
2014		395
2015		384
Thereafter		1,492
Total	$	3,182