Business Combination, Goodwill and Intangibles (Tables)

12 Months Ended

Dec. 31, 2012

Business Acquisition

Schedule of Goodwill

hanges in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows:

	2012		2011
Balance as of January 1,
Goodwill	$	1,153	$	726
Accumulated impairment losses	—		—
	1,153		726
Goodwill acquired during the year	2,319		427
Balance as of December 31,
Goodwill	3,472		1,153
Accumulated impairment losses	—		—
	$	3,472	$	1,153

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets

Intangible assets as of December 31, 2012 and 2011 consisted of the following:

	Estimated	As of December 31,
	useful lives	2012			2011
Tradename	7 years	$	435		$	435
Patents and technological know-how	10 years	2,070			2,070
Proprietary software	3 to 15 years	2,961			394
In-process research and development	Indefinite	159			559
Other	5 years	49			49
		5,674			3,507
Accumulated amortization		(1,416		)	(817		)
		$	4,258		$	2,690

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense of intangible assets is as follows:

Years ending December 31,
2013	$	533
2014	528
2015	483
2016	446
2017	357
Thereafter	1,752
	$	4,099

VCON Video Conferencing, Ltd. (VCON)

Business Acquisition

Schedule of Fair Value of Identified Assets and Liabilities Acquired and Goodwill

The fair value of identified assets and liabilities acquired and goodwill is as follows:

Inventory	$	40
Property and equipment	34
Product warranty liability	(8		)
Proprietary software	2,247
Goodwill	2,319
	$	4,632

Schedule of Purchase Price Allocation, Adjustments Made Retroactive to Date of Acquisition

The final fair value differed from the initial allocation as follows:

	Final Fair Value		Initial Allocation		Difference
Inventory	$	40	$	320	$	(280	)
Tradename	—		500		(500		)
Patents and technology	—		2,300		(2,300		)
Proprietary software	2,247		500		1,747
In-process research and development	—		200		(200		)
Goodwill	2,319		786		1,533

Business Acquisition, Pro Forma Information

Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2011 were as follows:

	Year ended December 31,
	2012		2011
Revenue	$	46,630	$	47,583
Net income	26,603		6,046

MagicBox Inc.

Business Acquisition

Schedule of Fair Value of Identified Assets and Liabilities Acquired and Goodwill

The fair value of identified assets and liabilities acquired and goodwill was as follows:

Accounts receivable	$	81
Inventory	117
Other current assets	12
Accrued expenses	(4		)
Property and equipment	9
Proprietary software	179
In-process research and development	159
Goodwill	427
	$	980