Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

Goodwill

The following is a roll forward of goodwill from December 31, 2011 through September 30, 2012:

	Amount
Balance at December 31, 2011		161
Goodwill acquired - July 2012 (TelWorx)		9,490
Balance at September 30, 2012		9,651

In July 2012, the Company recorded goodwill of $9.5 million related to the acquisition of assets from TelWorx. In October 2011, the Company recorded goodwill of $0.2 million related to the acquisition of assets from Envision. Because the Company had no triggering events, there was no goodwill impairment during the period.

Intangible Assets

The Company amortizes intangible assets with finite lives on a straight-line basis over the estimated useful lives, which range from one to eight years. The summary of other intangible assets, net as of September 30, 2012 and December 31, 2011 are as follows:

	September 30, 2012						December 31, 2011
	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Customer contracts and relationships	$	20,161	$	12,156	$	8,005	$	17,263	$	10,554	$	6,709
Patents and technology		7,867		6,601		1,266		7,408		6,223		1,185
Trademarks and trade names		4,256		2,511		1,745		2,729		2,361		368
Other		3,607		2,664		943		3,254		2,184		1,070
	$	35,891	$	23,932	$	11,959	$	30,654	$	21,322	$	9,332

The $2.6 million increase in the net book value of intangible assets at September 30, 2012 compared to December 31, 2011 reflects $5.2 million of intangible assets acquired from TelWorx in July 2012 and amortization expense of $2.6 million recorded for the nine months ended September 30, 2012.

The Company’s scheduled amortization expense for 2012 and the next five years is as follows:

Fiscal Year	Amount
2012	$	3,721
2013	$	3,833
2014	$	3,185
2015	$	2,474
2016	$	859
Thereafter	$	496