Intangible Assets and Acquisition Related Charges

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Acquisition Related Charges

Intangible Assets and Acquisition Related Charges:

In connection with our acquisition of SiliconBlue in December 2011, we recorded identifiable intangible assets related to developed technology and customer relationships based on guidance for determining fair value under the provisions of ASC 820. We did not have any identifiable intangible assets recorded as of July 2, 2011. The following table summarizes the details of the Company’s total purchased intangible assets (in thousands):

	Weighted Average Amortization Period  (in years)	Gross		Accumulated Amortization			Intangible assets, net of amortization  June 30, 2012
Developed technology	7	$	10,700	$	(828	)	$	9,872
Customer relationships	5.5	7,800		(768		)	7,032
Total	6.3	$	18,500	$	(1,596	)	$	16,904

Acquisition related charges include severance and professional fees related to acquisition, as well as the amortization of the stepped up value of inventory and amortization of identifiable intangible assets with finite useful lives. Acquisition related charges in connection with the acquisition of SiliconBlue from the date of acquisition, December 16, 2011 to June 30, 2012 were as follows (in thousands):

	Three months ended  June 30, 2012		Six months ended  June 30, 2012			From December 16, 2011 to  December 31, 2011
Severance related to integration of employees	$	67	$	633		$	—
Professional fees related to acquisition	29		501			397
Amortization of developed technology	382		764			64
Amortization of customer relationships	355		710			59
Amortization of $0.3 million step-up in inventory fair value at date of acquisition	124		248			16
Net all other, including reversal of bad debt reserve	25		(167		)	—
Total	$	982	$	2,689		$	536

Estimated acquisition related charges in connection with the acquisition of SiliconBlue for future years are as follows (in thousands):

Fiscal year	Estimated Acquisition related charges
2012	$	4,275
2013	2,947
2014	2,947
2015	2,947
2016	2,947
2017	2,179
2018	1,463
Total	$	19,705