Purchased Intangible Assets

12 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Purchased Intangible Assets and Goodwill

During fiscal 2012, in connection with its acquisition of Chingis, the Company recorded $7.9 million of intangible assets (See Note 20). During fiscal 2011, in connection with its acquisition on Si En, the Company recorded $11.6 million of intangible assets (See Note 19).

During the fourth quarter of fiscal 2012, in connection with the Company's annual goodwill impairment test, the Company determined that the intangible assets acquired in the acquisition of Si En were impaired. The analysis indicated that there was no value attributable to the intangible assets and accordingly, the Company recorded an impairment charge of $8.9 million of which $5.4 million was included in cost of sales and $3.5 million was included in operating expenses.

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



	Gross		Accumulated Amortization		Net
	(in thousands)
September 30, 2012
Developed technology	$	4,930	$	879	$	4,051
In-process technology (IPR&D)	400		$	—	400
Customer relationships	3,340		$	9	3,331
Other	450		6		444
Total	$	9,120	$	894	$	8,226
September 30, 2011
Developed technology	$	6,760	$	1,028	$	5,732
In-process technology (IPR&D)	1,595		$	—	1,595
Customer relationships	3,800		$	506	3,294
Other	570		110		460
Total	$	12,725	$	1,644	$	11,081

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



	Years Ended September 30,
	2012		2011		2010
	(in thousands)
Reported as:
Cost of sales	$	984	$	1,082	$	944
Operating expenses	864		616		75
Total	$	1,848	$	1,698	$	1,019

The following table presents the estimated future amortization expense of the Company’s purchased intangible assets at September 30, 2012 (in thousands). The weighted-average remaining amortization period for developed technology, customer relationships and other intangibles is 5.53 years, 5.96 years and 2.96 years, respectively. 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 estimated useful life of the asset. In this regard, in fiscal 2012, several IPR&D projects were completed and $1.0 million was transferred from IPR&D to developed technology.



Fiscal year
2013	$	1,579
2014	1,466
2015	1,315
2016	1,172
2017	1,172
Thereafter	1,122
Total	$	7,826

Goodwill

The following table provides details regarding the changes in the Company's goodwill:



	(in thousands)
Balance at September 30, 2009	$	1,251
Addition arising from acquisition of Enable	50
Balance at September 30, 2010	1,301
Addition arising from acquisition of Si En	8,162
Balance at September 30, 2011	9,463
Addition arising from acquisition of Chingis	3,976
Impairment	(4,261		)
Balance at September 30, 2012	$	9,178

During the fourth quarter of fiscal 2012, the Company completed the first step of its annual goodwill impairment test, which included examining the impact of current general economic conditions on its future prospects and the current level of its market capitalization. Based on this analysis, the Company concluded that goodwill related to its analog reporting unit was impaired. The Company's analog reporting unit's goodwill was originally recorded in connection with its acquisition of Si En. Therefore, the Company performed the second step of the impairment test to determine the implied fair value of goodwill. Specifically, the Company hypothetically allocated the estimated fair value of the analog reporting unit's equity as determined in the first step to recognized and unrecognized net assets, including allocations to intangible assets. The analysis indicated that there would be approximately $3.9 million remaining implied value attributable to goodwill and accordingly, the Company wrote off $4.3 million of its goodwill.

- 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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