(16)	Guarantor Subsidiaries

The obligations under the Notes are fully and unconditionally guaranteed (except for certain release provisions which are considered customary), jointly and severally, by all of our current and future 100% owned domestic restricted subsidiaries (Guarantors). No other subsidiaries guarantee the Notes. The Notes and guarantees are secured by a first-priority lien on certain collateral which comprises substantially all of the Parent and Guarantors' tangible and intangible assets, subject to certain exceptions. The following tables present the balance sheets, statements of operations and statements of cash flows of the Parent, Guarantor and Non-Guarantor entities along with the eliminations necessary to arrive at the information on a consolidated basis.

General corporate expenses, including public company costs, certain amortization, corporate administration costs, acquisition-related expenses and net interest expense are included in the results of the Parent.

CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2011
	Parent		Guarantors			Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents (including restricted cash)	$	5,451	$	28,003		$	5,818	$	-		$	39,272
Accounts receivable, net		-		63,487			7,527		-			71,014
Intercompany receivables		-		29,108			635		(29,743	)		-
Other current assets		595		29,579			3,814		-			33,988
Total current assets		6,046		150,177			17,794		(29,743	)		144,274
Net property and equipment		113		3,753			525		-			4,391
Purchased and developed software, net		-		23,309			615		-			23,924
Other intangible assets, net		-		44,483			669		-			45,152
Goodwill		-		207,799			2,030		-			209,829
Investment in and advances to subsidiaries		340,637		(338	)		-		(340,299	)		-
Other assets		8,013		4,597			9,835		372			22,817
Total assets	$	354,809	$	433,780		$	31,468	$	(369,670	)	$	450,387
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	3,124	$	17,647		$	1,343	$	-		$	22,114
Deferred revenue		-		49,678			1,568		-			51,246
Intercompany payables		2,176		8,580			24,086		(34,842	)		-
Other accrued liabilities		4,921		18,729			1,244		-			24,894
Total current liabilities		10,221		94,634			28,241		(34,842	)		98,254
Notes payable		249,371		67			-		-			249,438
Other long-term liabilities		2,746		6,381			725		372			10,224
Total liabilities		262,338		101,082			28,966		(34,470	)		357,916
Total shareholders' equity		92,471		332,698			2,502		(335,200	)		92,471
Total liabilities and shareholders' equity	$	354,809	$	433,780		$	31,468	$	(369,670	)	$	450,387

CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2010
	Parent		Guarantors		Non-Guarantors			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents (including restricted cash)	$	870	$	35,877	$	4,282		$	-		$	41,029
Accounts receivable, net		-		48,201		5,053			-			53,254
Intercompany receivables		14,170		14,168		961			(29,299	)		-
Other current assets		791		16,766		3,923			-			21,480
Total current assets		15,831		115,012		14,219			(29,299	)		115,763
Net property and equipment		156		4,949		667			-			5,772
Purchased and developed software, net		601		25,210		808			-			26,619
Other intangible assets, net		395		48,053		509			-			48,957
Goodwill		-		167,957		1,576			-			169,533
Investment in and advances to subsidiaries		284,893		1,830		-			(286,723	)		-
Other assets		13,615		7,164		12,101			(2,879	)		30,001
Total assets	$	315,491	$	370,175	$	29,880		$	(318,901	)	$	396,645
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,054	$	14,155	$	2,161		$	-		$	18,370
Deferred revenue		-		50,573		1,660			-			52,233
Intercompany payables		-		13,767		25,580			(39,347	)		-
Other accrued liabilities		4,965		10,902		936			-			16,803
Total current liabilities		7,019		89,397		30,337			(39,347	)		87,406
Notes payable		195,077		-		-			-			195,077
Other long-term liabilities		8,589		2,785		861			(2,879	)		9,356
Total liabilities		210,685		92,182		31,198			(42,226	)		291,839
Total shareholders' equity		104,806		277,993		(1,318	)		(276,675	)		104,806
Total liabilities and shareholders' equity	$	315,491	$	370,175	$	29,880		$	(318,901	)	$	396,645

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

	Year Ended December 31, 2011
	Parent			Guarantor			Non-Guarantor		Eliminations			Consolidated
Net sales	$	-		$	206,144		$	26,284	$	-		$	232,428
Cost of sales		-			83,782			4,872		-			88,654
Gross margin		-			122,362			21,412		-			143,774
Selling, research and development, general and administrative expenses		3,455			80,130			15,336		-			98,921
Acquisition-related expenses		1,614			-			-		-			1,614
Restructuring and other expenses		-			1,061			155		-			1,216
Depreciation and amortization		279			12,251			338		-			12,868
Total operating costs and expenses		5,348			93,442			15,829		-			114,619
Operating income (loss)		(5,348	)		28,920			5,583		-			29,155
Equity in net income of subsidiaries		30,476			(1,546	)		-		(28,930	)		-
Other, net		(30,889	)		(398	)		266		-			(31,021	)
Other income (expense)		(413	)		(1,944	)		266		(28,930	)		(31,021	)
Income (loss) before income taxes		(5,761	)		26,976			5,849		(28,930	)		(1,866	)
Income tax expense (benefit)		(230	)		1,830			2,065		-			3,665
Net income (loss)	$	(5,531	)	$	25,146		$	3,784	$	(28,930	)	$	(5,531	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

	Year Ended December 31, 2010
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
Net sales	$	-		$	122,001		$	18,331		$	-		$	140,332
Cost of sales		-			59,511			5,052			-			64,563
Gross margin		-			62,490			13,279			-			75,769
Selling, research and development, general and administrative expenses		5,819			50,634			6,320			-			62,773
Acquisition-related expenses		9,638			36			-			-			9,674
Restructuring and other expenses		418			4,575			13			-			5,006
Depreciation, amortization and impairment		858			5,665			317			-			6,840
Total operating costs and expenses		16,733			60,910			6,650			-			84,293
Operating income (loss)		(16,733	)		1,580			6,629			-			(8,524	)
Equity in net income of subsidiaries		22,502			(138	)		-			(22,364	)		-
Other, net		(17,097	)		106			353			-			(16,638	)
Other income (expense)		5,405			(32	)		353			(22,364	)		(16,638	)
Income (loss) before income taxes		(11,328	)		1,548			6,982			(22,364	)		(25,162	)
Income tax expense (benefit)		188			200			(14,034	)		-			(13,646	)
Net income (loss)	$	(11,516	)	$	1,348		$	21,016		$	(22,364	)	$	(11,516	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

	Year Ended December 31, 2009
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
Net sales	$	-		$	36,359		$	30,482		$	-		$	66,841
Cost of sales		-			12,629			6,748			-			19,377
Gross margin		-			23,730			23,734			-			47,464
Selling, research and development, general and administrative expenses		(1,695	)		21,021			13,571			-			32,897
Acquisition-related expenses		1,212			13			-			-			1,225
Restructuring and other expenses		(180	)		1,039			754			-			1,613
Depreciation and amortization		884			1,477			405			-			2,766
Total operating costs and expenses		221			23,550			14,730			-			38,501
Operating income (loss)		(221	)		180			9,004			-			8,963
Equity in net income of subsidiaries		5,770			(65	)		-			(5,705	)		-
Other, net		(5,437	)		(149	)		(3,227	)		-			(8,813	)
Other income (expense)		333			(214	)		(3,227	)		(5,705	)		(8,813	)
Income (loss) before income taxes		112			(34	)		5,777			(5,705	)		150
Income tax expense (benefit)		(173	)		-			38			-			(135	)
Net income (loss)	$	285		$	(34	)	$	5,739		$	(5,705	)	$	285

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Year Ended December 31, 2011
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(5,531	)	$	25,146		$	3,784		$	(28,930	)	$	(5,531	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes		3,368			2,693			2,048			-			8,109
Depreciation, amortization and impairment		1,038			20,793			377			-			22,208
Share-based compensation		1,837			1,987			84			-			3,908
Change in contingent consideration for acquisitions		-			345			-			-			345
Amortization of notes payable issuance costs and discount		2,393			-			-			-			2,393
Realized (gain) loss on investment		-			-			(405	)		-			(405	)
Provision for doubtful accounts receivable and sales returns, net of recoveries		-			2,102			664			-			2,766
Stock issued for charitable contribution		1,851			-			-			-			1,851
Net change in assets and liabilities (net of effects of acquisitions)		(43,694	)		(13,393	)		(5,798	)		28,930			(33,955	)
Net cash provided by (used in) operating activities		(38,738	)		39,673			754			-			1,689
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired		-			(1,277	)		-			-			(1,277	)
Purchases of property, equipment, and leasehold improvements		-			(1,952	)		(24	)		-			(1,976	)
Intercompany advances		-			(39,723	)		-			39,723			-
Change in restricted cash		140			800			-			-			940
Distribution from equity investment		-			-			405			-			405
Net cash provided by (used in) investing activities		140			(42,152	)		381			39,723			(1,908	)
Cash flows from financing activities:
Intercompany advances		39,199			-			524			(39,723	)		-
Proceeds from issuance of term notes		53,560			-			-			-			53,560
Redemption and retirement of preferred stock		(41,750	)		-			-			-			(41,750	)
Preferred stock dividends paid		(7,328	)		-			-			-			(7,328	)
Notes payable issuance costs paid		(1,528	)		-			-			-			(1,528	)
Proceeds from exercise of options and employee stock purchase plan		1,166			-			-			-			1,166
Principal payments on notes		-			(4,591	)		-			-			(4,591	)
Principal payments on capital leases		-			(4	)		-			-			(4	)
Net cash provided by (used in) financing activities		43,319			(4,595	)		524			(39,723	)		(475	)
Effect of exchange rates on cash and cash equivalents		-			-			(123	)		-			(123	)
Net increase (decrease) in cash and cash equivalents		4,721			(7,074	)		1,536			-			(817	)
Cash and cash equivalents (net of restricted cash), beginning of period		186			34,914			4,282			-			39,382		(1)
Cash and cash equivalents (net of restricted cash), end of period	$	4,907		$	27,840		$	5,818		$	-		$	38,565		(2)

(1)

Net of restricted cash of $1,647 at December 31, 2010.

(2)

Net of restricted cash of $707 at December 31, 2011.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Year Ended December 31, 2010
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(11,516	)	$	1,348		$	21,016		$	(22,364	)	$	(11,516	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes		(2	)		-			(14,054	)		-			(14,056	)
Depreciation, amortization and impairment		2,221			14,762			829			-			17,812
Share-based compensation		1,350			1,121			152			-			2,623
Change in contingent consideration for acquisitions		-			113			-			-			113
Amortization of notes payable issuance costs and discount		1,445			-			-			-			1,445
Realized (gain) loss on investment		-			-			(506	)		-			(506	)
Provision for doubtful accounts receivable, sales returns and non-trade receivables, net of recoveries		-			400			480			-			880
Net change in assets and liabilities (net of effects of acquisitions)		(21,541	)		11,487			(3,100	)		22,364			9,210
Net cash provided by (used in) operating activities		(28,043	)		29,231			4,817			-			6,005
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired		(211,367	)		(4,845	)		-			-			(216,212	)
Purchases of property, equipment, and leasehold improvements		(139	)		(1,220	)		(133	)		-			(1,492	)
Proceeds from sale of property and equipment		-			6,124			-			-			6,124
Intercompany advances		8,518			-			-			(8,518	)		-
Change in restricted cash		(415	)		(673	)		-			-			(1,088	)
Distribution from equity investment		-			-			606			-			606
Net cash provided by (used in) investing activities		(203,403	)		(614	)		473			(8,518	)		(212,062	)
Cash flows from financing activities:
Intercompany advances		-			(2,353	)		(6,165	)		8,518			-
Proceeds from issuance of notes payable, net of discount of $5,468		194,532			-			-			-			194,532
Proceeds from issuance of stock		41,750			-			-			-			41,750
Note and stock issuance costs paid		(9,897	)		-			-			-			(9,897	)
Proceeds from exercise of options and employee stock purchase plan		160			-			-			-			160
Repurchases of stock		(26	)		-			-			-			(26	)
Principal payments on capital leases		-			(142	)		-			-			(142	)
Net cash provided by (used in) financing activities		226,519			(2,495	)		(6,165	)		8,518			226,377
Net increase (decrease) in cash and cash equivalents		(4,927	)		26,122			(875	)		-			20,320
Cash and cash equivalents (net of restricted cash), beginning of period		5,113			8,792			5,157			-			19,062		(1)
Cash and cash equivalents (net of restricted cash), end of period	$	186		$	34,914		$	4,282		$	-		$	39,382		(2)

(1)

Net of restricted cash of $559 at December 31, 2009.

(2)

Net of restricted cash of $1647 at December 31, 2010.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Year Ended December 31, 2009
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	285		$	(34	)	$	5,739		$	(5,705	)	$	285
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation, amortization and impairment		884			3,530			1,675			-			6,089
Share-based compensation		654			680			352			-			1,686
Amortization of note payable issuance costs & discount		1,533			-			-			-			1,533
Realized loss on investment		-			-			3,624			-			3,624
Provision for doubtful accounts receivable and sales returns, net of recoveries		-			410			6			-			416
Net change in assets and liabilities (net of effects of acquisitions)		(14,241	)		4,054			(10,121	)		5,705			(14,603	)
Net cash provided by (used in) operating activities		(10,885	)		8,640			1,275			-			(970	)

Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired		(1,502	)		(1,250	)		-			-			(2,752	)
Purchases of property, equipment, and leasehold improvements		-			(583	)		(538	)		-			(1,121	)
Intercompany advances		(3,039	)		-			-			3,039			-
Change in restricted cash		338			(150	)		-			-			188
Proceeds from sale of equity investment		-			-			886			-			886
Net cash provided by (used in) investing activities		(4,203	)		(1,983	)		348			3,039			(2,799	)

Cash flows from financing activities:
Intercompany advances		-			4,119			(1,080	)		(3,039	)		-
Proceeds from issuance of Common Stock		25,175			-			-			-			25,175
Proceeds from exercise of options and employee stock purchase plan		110			-			-			-			110
Principal payments on notes		(15,000	)		(4,570	)		-			-			(19,570	)
Principal payments in capital leases		-			(111	)		-			-			(111	)
Net cash provided by (used in) financing activities		10,285			(562	)		(1,080	)		(3,039	)		5,604

Net increase (decrease) in cash and cash equivalents		(4,803	)		6,095			543			-			1,835
Cash and cash equivalents (net of restricted cash), beginning of period		9,916			2,697			4,614			-			17,227		(1)
Cash and cash equivalents (net of restricted cash), end of period	$	5,113		$	8,792		$	5,157		$	-		$	19,062		(2)

(1)

Net of restricted cash of $621 at December 31, 2008.

(2)

Net of restricted cash of $559 at December 31, 2009.