Subsequent Event

6 Months Ended

Jun. 30, 2012

Subsequent Event

Subsequent Event

12. Subsequent Event

Acquisition

On July 3, 2012, the Company acquired Ember Corporation, a privately held company. Ember’s products integrate high-performance, low-power 2.4 GHz wireless ICs with reliable and scalable software into a flexible and robust networking platform. This strategic acquisition brings the Company the technology and software expertise required to enable the low-power mesh sensor networks being deployed today in a wide range of residential, commercial and industrial applications.

The Company acquired Ember for a purchase price of approximately $72.0 million, plus an amount equal to the sum of Ember’s cash minus certain liabilities as of the closing date. Potential additional consideration is payable on a dollar for dollar basis to the extent that revenue of the acquired products exceeds $27.0 million over a one-year period from the beginning of the third fiscal quarter of 2012 through the end of the second fiscal quarter of 2013.

The Company will record the purchase of Ember using the acquisition method of accounting and will recognize the assets acquired and liabilities assumed at their fair values as of the date of the acquisition. The results of Ember’s operations will be included in the Company’s consolidated results of operations beginning on the date of the acquisition.

The Company is currently evaluating the fair values of the consideration transferred, assets acquired and liabilities assumed. The Company expects to complete its purchase price allocation in the third quarter of fiscal 2012.