Acquisitions (Tables)

6 Months Ended

Jun. 30, 2017

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, net		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		(382	)

Net assets acquired	$	37,150

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		29,501

Net assets acquired	$	37,150

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, 2016 (in thousands, except per share data):


	Three months ended June 30, 2016		Six months ended June 30, 2016
Total revenue	$	30,676	$	57,628
Net income	$	4,191	$	9,309

Earnings per share:
Basic	$	0.12	$	0.28

Diluted	$	0.12	$	0.27

Spectrum Inc.

Consideration Transferred

The total consideration transferred follows (in thousands):


Cash consideration	$	124,686
Equity consideration		247,575
Less: working capital adjustment		(449	)

Net assets acquired	$	371,812

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	$	7,071
Marketable securities		990
Accounts receivable		5,950
Inventory		11,349
Prepaid expenses and other current assets		891
Fixed assets		5,613
Customer relationships		73,530
Developed technology		37,630
Trademark and tradename		2,140
Non-competition agreements		770
Other assets		988
Goodwill		276,241
Accounts payable		(1,287	)
Accrued liabilities		(2,248	)
Deferred tax liabilities, net		(42,629	)
Unrecognized tax benefit		(576	)
Estimated closing indebtedness		(2,635	)
Estimated transaction costs		(1,976	)

Fair value of net assets acquired	$	371,812