GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS [Text Block]

GOODWILL AND INTANGIBLE ASSETS:

Changes in the carrying amount of goodwill during the six months ended June 30, 2012 are as follows (in thousands):



	Six Months Ended
	June 30, 2012
Balance at January 1, 2012	$	14,786
Goodwill acquired during the period	62,568
Goodwill adjustments	—
Ending balance at June 30, 2012	$	77,354

The $62.6 million of goodwill acquired in 2012 resulted from the purchase of Concept (see Note 14, Acquisition, for further details).

Intangible assets consist primarily of developed technology, acquired licenses, customer relationships, trade name, in-process research and development and patent rights, and are reported net of accumulated amortization. In May 2012, the Company acquired Concept, resulting in the addition of the following intangible assets; developed technology of $23.8 million, which will be amortized over a period of approximately 4 to 12 years; customer relationships of $16.7 million, which will be amortized over a period of 10-years; and tradename (Concept) of $3.6 million, which will be amortized over a period of 2 years. The Company amortizes the cost of all intangible assets over the shorter of the estimated useful life or the term of the acquired license or patent rights, which range from 5 to 12 years, with the exception of $4.7 million of in-process research and development which will be amortized once the development is completed and products are available for sale. The Company does not expect the amortization for its in-process research and development to begin in 2012. Amortization for acquired intangible assets was approximately $1.3 million and $1.5 million in the three and six months ended June 30, 2012 and $0.3 million and $0.5 million in the three and six months ended June 30, 2011, respectively. The Company does not believe there is any significant residual value associated with the following intangible assets:



	June 30, 2012							December 31, 2011
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
	(in thousands)
In-process research and development	$	4,690	$	—		$	4,690	$	4,690	$	—		$	4,690
Technology licenses	3,000		(1,875		)	1,125		3,000		(1,725		)	1,275
Patent rights	1,949		(1,949		)	—		1,949		(1,949		)	—
Developed technology	26,670		(1,373		)	25,297		2,920		(829		)	2,091
Customer relationships	17,610		(600		)	17,010		910		(114		)	796
Tradename	3,600		(300		)	3,300		—		—			—
Other intangibles	37		(37		)	—		37		(37		)	—
Total intangible assets	$	57,556	$	(6,134	)	$	51,422	$	13,506	$	(4,654	)	$	8,852

The estimated future amortization expense related to intangible assets at June 30, 2012 is as follows:



Fiscal Year		Estimated Amortization (in thousands)
2012	(remaining 6 months)	$	3,683
2013		7,405
2014		6,072
2015		5,009
2016		4,394
Thereafter		20,169
Total (1)		$	46,732

_______________


(1)	The total above excludes $4.7 million of in-process research and development that will be amortized upon completion of development over the estimated useful life of the technology.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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