Goodwill and Intangible Assets

12 Months Ended

Jan. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

8. Goodwill and Intangible Assets

At January 31, 2013 and 2012, we had goodwill of $45.1 million and $44.4 million, respectively. The change in the carrying amount of goodwill for the years ended January 31, 2013 and 2012 are as follows:

	Software			Media Services			Total
Balance at January 31, 2011	$	45,257		$	19,422		$	64,679
Cumulative translation adjustment		(842	)		(197	)		(1,039	)
Balance at January 31, 2012		44,415			19,225			63,640
Acquisition of goodwill - Flashlight		10						10
Goodwill related to discontinued operations		-			(19,225	)		(19,225	)
Cumulative translation adjustment		678			-			678
Balance at January 31, 2013	$	45,103		$	-		$	45,103

The goodwill balance excludes $0.6 million of goodwill assigned, based on a relative fair value calculation, to the divestiture of the Broadcast Servers and Storage business unit and is included in non-current assets related to discontinued operations in the consolidated balance sheets.

We perform our annual impairment test of goodwill annually on August 1^st and have determined that the fair value of our goodwill balance exceeded its carrying value. Accordingly, since no impairment indicator existed as of August 1, 2012 and the fair value of the goodwill exceeded the carrying value, we determined that goodwill was appropriately stated as of August 1, 2012 and no impairment charge was necessary. For more information on the goodwill impairment test see “MD&A – Critical Accounting Policies and Significant Judgments and Estimates,” located in Part II, Item 7., of this Form 10-K.

At January 31, 2013 and 2012, the balances in net intangible assets of $17.5 million and $22.4 million, respectively, consist of patents, customer contracts, non-compete agreements, completed technology and trademarks.

Intangible assets, net, consisted of the following:

			January 31, 2013							January 31, 2012
	Weighted average remaining life (Years)		Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
			(Amounts in thousands)
Finite-lived intangible assets:
Customer contracts		6.1	$	32,568	$	(18,756	)	$	13,812	$	31,758	$	(15,726	)	$	16,032
Non-compete agreements		0.7		2,769		(2,375	)		394		2,673		(1,869	)		804
Completed technology		5.2		11,448		(8,437	)		3,011		11,259		(6,048	)		5,211
Trademarks and other		0.8		1,726		(1,629	)		97		1,715		(1,530	)		185
Total finite-lived intangible assets			$	48,511	$	(31,197	)	$	17,314	$	47,405	$	(25,173	)	$	22,232
Infinite-lived intangible assets:
Trade names		Infinite		200		-			200		200		-			200
Total indefinte-lived intangible assets			$	200	$	-		$	200	$	200	$	-		$	200
Total intangible assets			$	48,711	$	(31,197	)	$	17,514	$	47,605	$	(25,173	)	$	22,432

Estimated useful lives and the amortization basis for the intangible assets are as follows:

	Estimated Useful Life and Amortization Basis
Customer contracts	1 - 8 years using economic consumption life basis
Non compete agreements	2 - 3 years economic life of the agreement
Completed technology	4 - 6 years using economic consumption life basis
Trademarks and other	5 years using economic consumption life basis
Trade names	indefinite life

Amortization expense for intangible assets was $6.4 million, $6.3 million and $5.1 million for fiscal 2013, 2012 and 2011, respectively. In fiscal 2013, 2012 and 2011, $2.4 million, $2.5 million, and $2.0 million respectively, were charged to cost of product revenues. In fiscal 2013, 2012 and 2011, $4.0 million, $3.8 million and $3.1 million, respectively, were charged to operating expense. The total amortization expense for each of the next five fiscal years is as follows (amounts in thousands):

	Estimated
	Amortization
For the Fiscal Years Ended January 31,	Expense
2014	$	4,948
2015		4,191
2016		3,339
2017		2,359
2018		1,551
Fiscal 2019 and thereafter		926
Total Future Amortization	$	17,314

Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions, potential impairment, accelerated amortization, or other events.