Acquisitions, Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Changes in Carrying Value of Goodwill

The changes in the carrying value of goodwill for the year ended December 31, 2016 is as follows (in thousands):

Balance at December 31, 2015	$	14,346
Goodwill arising from the Atoll Acquisition		17,077
Goodwill arising from the TangenX Acquisition		29,416
Foreign currency adjustments on goodwill from the Atoll Acquisition		(1,291	)
Balance at December 31, 2016	$	59,548

Refine Technology, LLC

Consideration Transferred

The total consideration transferred follows (in thousands):

Cash consideration, less $66 of working capital adjustments	$	21,170
Value of common stock issued		4,000
Estimated fair value of contingent consideration		1,370
Total consideration transferred	$	26,540

Components and Allocation of Purchase Price

The allocation of purchase price was based on the fair value of assets acquired and liabilities assumed as of June 2, 2014. The components and allocation of the purchase price consists of the following amounts (in thousands):

Accounts receivable	$	1,647
Inventory		1,003
Other current assets		184
Fixed assets		85
Customer relationships		6,400
Developed technology		2,000
In process research and development (“IPR&D”)		1,600
Trademark and trade name		700
Accounts payable and other liabilities assumed		(431	)
Goodwill		13,352
Net assets acquired	$	26,540

Unaudited Supplemental Pro Forma Information

The following table presents 2014 unaudited supplemental pro forma information as if the Refine Acquisition had occurred as of January 1, 2014 (in thousands, except per share data):

	December 31, 2014
Total revenue	$	67,330
Net income		9,493
Earnings per share:
Basic	$	0.28
Diluted	$	0.27

Atoll GmbH

Consideration Transferred

The total consideration transferred follows (in thousands):

Cash consideration, less $74 of working capital adjustments	$	10,176
Value of common stock issued		14,138
Estimated fair value of contingent consideration		952
Total consideration transferred	$	25,266

Components and Allocation of Purchase Price

The components and allocation of the purchase price consists of the following amounts (in thousands):

Cash and cash equivalents	$	1,409
Accounts receivable		697
Inventory		155
Other current assets		169
Fixed assets		114
Customer relationships		5,318
Developed technology		2,175
Non-competition agreements		57
Trademark and trade name		11
Deferred tax assets		885
Accounts payable and other liabilities assumed		(599	)
Deferred tax liabilities		(2,202	)
Goodwill		17,077
Net assets acquired	$	25,266

TangenX Technology Corporation

Consideration Transferred

The total consideration transferred follows (in thousands):

Cash consideration	$	37,532
Less: working capital adjustment		(467	)
Net assets acquired	$	37,065

Components and Allocation of Purchase Price

The components and allocation of the purchase price consists of the following amounts (in thousands):

Cash and cash equivalents	$	1,218
Accounts receivable		459
Other receivables		111
Inventory		936
Other current assets		50
Fixed assets, net		215
Customer relationships		6,192
Developed technology		6,044
Non-competition agreements		21
Trademark and trade name		11
Accounts payable and other liabilities assumed		(3,083	)
Deferred tax liabilities		(4,525	)
Goodwill		29,416
Net assets acquired	$	37,065

Unaudited Supplemental Pro Forma Information

The following table presents unaudited supplemental pro forma information as if the TangenX Acquisition had occurred as of January 1, 2015 (in thousands, except per share data):

	December 31, 2016		December 31, 2015
Total revenue		110,228		88,437
Net income		5,744		13,208
Earnings per share:
Basic	$	0.17	$	0.40
Diluted	$	0.17	$	0.39