ACQUISITION

6 Months Ended

Jun. 30, 2011

ACQUISITION

ACQUISITION

4.  ACQUISITION

On April 1, 2011, we acquired substantially all the assets and operations, and assumed certain liabilities, of privately-held MIJO Corporation (“MIJO”) for approximately $43.8 million, which includes a $2.4 million working capital payment that is subject to adjustment.  MIJO, established in 1978 and based in Toronto, Canada, provides broadcast and digital media services to the Canadian advertising, entertainment and broadcast industries.  MIJO is part of our video and audio content distribution segment.  The objective of acquiring MIJO was to expand our customer base and product offerings. The purchase price has been preliminarily allocated based on the estimated fair values of the tangible and intangible assets acquired and liabilities assumed at the date of acquisition. The preliminary purchase price allocation is as follows (in millions):

Category	MIJO
Current assets	$	5.1
Property and equipment	6.8
Customer relationships	8.5
Trade name	2.9
Developed technology	2.1
Noncompetition agreement	2.4
Goodwill	17.5
Total assets acquired	45.3
Less liabilities assumed	(1.5		)
Net assets acquired	$	43.8

The customer relationships, trade name, developed technology and noncompetition agreements are being amortized over 15 years, 10 years, 6 years and 3 years, respectively.  The goodwill and intangible assets created in the acquisition are deductible for tax purposes.  The goodwill created in the acquisition has been allocated to the video and audio content distribution segment.  We recognized $5.3 million and $1.0 million of revenue and income before income taxes, respectively, from MIJO in our consolidated results of operations for the three months ended June 30, 2011.  The MIJO purchase price allocation is preliminary pending further review and analysis of tangible and intangible asset valuations and finalization of the working capital adjustment.

Pro Forma Information

The following pro forma information presents our results of operations as if the MIJO (acquired April 1, 2011) and Match Point (acquired October 1, 2010) acquisitions had occurred on January 1, 2010 (in thousands, except per share amounts).  A table of actual amounts is provided for reference.

	As Reported								Pro Forma
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
	2011		2010		2011		2010		2011		2010		2011		2010
Revenue	$	67,852	$	58,190	$	131,362	$	110,521	$	67,852	$	66,822	$	136,539	$	128,146
Income from continuing operations	10,498		8,830		23,386		16,708		10,498		9,263		23,657		17,051
Income per share — continuing operations:
Basic	$	0.38	$	0.31	$	0.84	$	0.63	$	0.38	$	0.33	$	0.85	$	0.65
Diluted	$	0.38	$	0.31	$	0.83	$	0.62	$	0.38	$	0.33	$	0.84	$	0.64