Note 7 - Goodwill and Intangibles

12 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

7. GOODWILL AND INTANGIBLES

The following tables present information about the Company’s intangible assets on the dates indicated (in thousands):

	June 30, 2013							June 30, 2012
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Goodwill	$	3,034	$	-		$	3,034	$	3,034	$	-		$	3,034
Identifiable intangible assets		10,000		(1,778	)		8,222		15,858		(7,103	)		8,755

Identifiable intangible assets consist of the following (in thousands):

	June 30, 2013			June 30, 2012
Non-compete agreements	$	600		$	600
Trademarks and trade names		1,480			1,480
Completed technology		2,010			2,010
Customer relationships		4,950			4,950
Backlog		-			260
Software development		635			282
Other intangible assets		325			-
Total		10,000			15,858
Accumulated amortization		(1,778	)		(827	)
Total net balance	$	8,222		$	8,755

Identifiable intangible assets are being amortized on a straight-line basis over the period of expected economic benefit.  

The estimated aggregate amortization expense for each of the next five years, and thereafter, is as follows (in thousands):

Fiscal Year
2014	$	1,160
2015		1,160
2016		1,160
2017		1,158
2018		1,090
Thereafter		2,494

The Company performed a qualitative analysis in accordance with ASU 2011-08 for its Bytewise reporting unit for its October 1, 2012 annual assessment of goodwill (commonly referred to as “Step Zero”). From a qualitative perspective, in evaluating whether it is more likely than not that the fair value of the reporting units is not less than their respective carrying amount, relevant events and circumstances were taken into account, with greater weight assigned to events and circumstances that most affect the fair value of Bytewise or the carrying amounts of its assets. Items that were considered included, but were not limited to, the following: macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, changes in management or key personnel, and other Bytewise specific events. After assessing these and other factors the Company determined that it was more likely than not that the fair value of the Bytewise reporting unit was not less than the carrying amount as of October 1, 2012. There were no triggering events identified from the annual assessment date through the fiscal year-end.