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Acquisition of Advanced Mobile (Tables) (Advanced Mobile [Member])
12 Months Ended
Dec. 31, 2013
Advanced Mobile [Member]
 
Business Acquisition [Line Items]  
Fair value of consideration transferred
    The Advanced Mobile Acquisition Date fair value of the consideration transferred totaled $3.4 million which consisted of the following:

 
 
(in thousands)
 
 
 
 
Cash (including working capital adjustment of $70)
 
$
2,570
 
Contingent consideration
  
825
 
 
 
$
3,395
 

Fair values of assets acquired and liabilities assumed
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Advanced Mobile Acquisition Date.  Because the transaction was completed subsequent to the end of the third quarter of 2013, we have not yet finalized the fair values of the assets and liabilities assumed in connection with the acquisition.

 
 
(in thousands)
 
 
 
 
Accounts receivable
 
$
94
 
Prepaid expenses
  
9
 
Net fixed assets and other long-term assets
  
20
 
Total tangible assets acquired
  
123
 
 
    
Accounts payable
  
27
 
Other liabilities
  
6
 
Total liabilities assumed
  
33
 
 
    
Net identifiable assets acquired
  
90
 
 
    
Definite-lived intangible assets acquired
  
1,380
 
 
    
Goodwill
  
1,925
 
 
    
Net assets acquired
 
$
3,395
 

Acquired intangible assets
The preliminary fair value of the acquired intangible assets was determined using the below valuation approaches. In estimating the preliminary fair value of the acquired intangible assets, the Company utilized the valuation methodology determined to be most appropriate for the individual intangible asset being valued as described below. The acquired intangible assets include the following:


 
 
 
Valuation Method
 
Estimated
Fair Value
 
Estimated
Useful Life (1)
 
 
 
 
(in thousands)
 
(years)
 
 
 
 
 
 
 
Non-compete agreements
 
Discounted cash flow (2)
 
$110
 
5
Customer relationships
 
Excess of earnings (3)
 
450
 
2
Developed technology
 
Excess of earnings (3)
 
820
 
5
     Total purchased intangible assets
 
 
 
$1,380
 
 
 
(1)
 
 
 
 
 
(2)
 
 
 
(3)
 
Determination of the estimated useful lives of the individual categories of purchased intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives are recognized over the shorter of the respective lives of the agreement or the period of time the assets are expected to contribute to future cash flows.
 
The non-compete agreement fair values were derived by calculating the difference between the present value of the Company's forecasted cash flows with the agreements in place and without the agreements in place.
 
The excess of earnings method estimates a purchased intangible asset's value based on the present value of the prospective net cash flows (or excess earnings) attributable to it. The value attributed to these intangibles was based on projected net cash inflows from existing contracts or relationships.

Unaudited pro forma consolidated results of operations

The unaudited pro forma consolidated results of operations, assuming the acquisition had occurred on January 1, 2013 and January 31, 2012, respectively, are as follows:


 
 
Twelve Months
Ended
December 31, 2013
Twelve Months
Ended
December 31, 2012
 
 
(in thousands)
(in thousands)
Unaudited pro forma consolidated results:
 
 
 
                                 Revenue
 
$79,083
$67,691
Net income
 
$38,038
$1,267