Intangible Assets

6 Months Ended

Apr. 30, 2013

Intangible Assets [Abstract]

Intangible Assets

(5)Intangible Assets

Intangible assets consisted of the following as of April 30, 2013 and October 31, 2012:

(In thousands)	2013		2012
Intangible assets:
Developed technology	$	6,833	$	6,806
Trademarks		61		61
Software		560		-
Capitalized software in progress		1,212		1,305
		8,666		8,172
Less: accumulated amortization		(6,733)		(6,680)
	$	1,933	$	1,492

The intangible assets related to developed technology, patents and trademarks are being amortized using the straight-line method over the estimated useful lives of the assets, which range from five to ten years.  Total amortization expense was $32,000 and $53,000 for the three- and six-month periods ended April 30, 2013, respectively, and $109,000 and $217,000 for the three- and six-month periods ended April 30, 2012, respectively.  Of the total, amortization expense related to software costs of $28,000 and $42,000is included in cost of equipment, supplies and accessories revenues for the three- and sixth-month periods ended April 30, 2013, respectively.

Estimated amortization expense for each of the succeeding fiscal years based on the intangible assets as of April 30, 2013 is as follows:

(In thousands)	Amortization
Six months ending October 31, 2013	$	71
2014		142
2015		133
2016		121
2017		116
2018		14
	$	597

The above table does not include estimated amortization expense for patents not yet placed into service totaling $124,000, included in “Developed technology,” or for capitalized software costs of $1,212,000 that are not yet placed into service.  We capitalized software development costs of $166,000 and $175,000 during the three-month periods ended April 30, 2013 and 2012, respectfully and $466,000 and $360,000 during the six-month periods ended April 30, 2013 and 2012, respectively.  Upon completion of this development project, we expect to amortize the software over seven years.