Purchased Intangible Assets and Goodwill

9 Months Ended

Jun. 30, 2011

Purchased Intangible Assets and Goodwill [Abstract]

Purchased Intangible Assets and Goodwill [Text Block]

urchased Intangible Assets and Goodwill

The following tables present details of the Company’s total purchased intangible assets:



	Gross		Accumulated Amortization		Net
	(In thousands)
June 30, 2011
Developed technology	$	10,403	$	4,728	$	5,675
In-process technology (IPR&D)	1,885		—		1,885
Customer relationships	3,800		317		3,483
Other	570		68		502
Total	$	16,658	$	5,113	$	11,545
September 30, 2010
Developed technology	$	5,173	$	3,879	$	1,294

The following table presents details of the amortization expense of purchased intangible assets as reported in the Consolidated Statements of Income:



	Three Months Ended June 30,				Nine Months Ended June 30,
	2011		2010		2011		2010
	(In thousands)
Reported as:
Cost of sales	$	281	$	236	$	849	$	708
Operating expenses	231		11		385		75
Total	$	512	$	247	$	1,234	$	783

The following table presents estimated future amortization expense of the Company’s purchased intangible assets at June 30, 2011 (in thousands). If the Company acquires additional purchased intangible assets in the future, its future amortization may be increased by those assets. Furthermore, upon completion of the IPR&D projects, the Company will amortize the IPR&D over the useful life of the asset. In this regard, in the three months ended June 30, 2011, several IPR&D projects were completed and $580,000 was transferred from IPR&D to developed technology. In addition, in the three months ended June 30, 2011, an IPR&D project was canceled and $145,000 was expensed to research and development expense.



Fiscal year
Remainder of 2011	$	457
2012	1,827
2013	1,827
2014	1,663
2015	1,438
Thereafter	2,448
Total	$	9,660

Goodwill activity for the first nine months of fiscal 2011 was as follows:



	Balance at September 30, 2010		Acquired		Balance at June 30, 2011
	(In thousands)
Goodwill	$	1,301	$	8,162	$	9,463

In the nine months ended June 30, 2011, the Company recorded goodwill in connection with its acquisition of Si En Integration Holdings Limited (Si En) (See Note 17)

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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