Capitalized Software Development Costs

6 Months Ended

Sep. 30, 2011

Capitalized Software Development Costs [Abstract]

Capitalized Software Development Costs

Note 8 — Capitalized Software Development Costs

The Company incurs software development costs for software to be sold, leased or marketed in the publishing business. Software development costs include third-party contractor fees and overhead costs. The Company capitalizes these costs once technological feasibility is achieved. Capitalization ceases and amortization of costs begins when the software product is available for general release to customers. The Company amortizes capitalized software development costs by the greater of the ratio of gross revenues of a product to the total current and anticipated future gross revenues of that product or the straight-line method over the remaining estimated economic life of the product. The Company tests for possible impairment whenever events or changes in circumstances, such as a reduction in expected cash flows, indicate that the carrying amount of the asset may not be recoverable. If indicators exist, the Company compares the undiscounted cash flows related to the asset to the carrying value of the asset. If the carrying value is greater than the undiscounted cash flow amount, an impairment charge is recorded in cost of goods sold in the Consolidated Statements of Operations for amounts necessary to reduce the carrying value of the asset to fair value. Software development costs consisted of the following (in thousands):

	September 30,		March 31,
	2011		2011
Software development costs	$	3,874	$	3,025
Less: accumulated amortization		1,265		823
Software development costs, net	$	2,609	$	2,202

Amortization expense was $250,000 and $442,000 for the three and six months ended September 30, 2011, respectively and $118,000 and $219,000 for the three and six months ended September 30, 2010, respectively and is included in cost of goods sold in the Consolidated Statements of Operations.