Note 7 - Goodwill and Intangible Assets

12 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in connection with our acquisitions. In

May 2015,

we acquired RadioPulse and recorded

$14.9

million in goodwill. The goodwill balance as of

March 31, 2017

and

2016

reflected changes in the foreign exchange translation rate.

The changes in the carrying amount of goodwill for the years ended

March 31, 2017

and

2016

were as follows (in thousands):

	March 31,
	2017			2016
Goodwill	$	56,024		$	41,137
Accumulated impairment losses		(13,192	)		(13,192	)
Accumulated currency translation adjustment		(477	)		(570	)
Net goodwill at beginning of year		42,355			27,375
Goodwill acquired in acquisition		-			14,887
Currency translation adjustment		(128	)		93
Net goodwill at end of year	$	42,227		$	42,355

The accumulated impairment losses as of

March 31, 2017

and

March 31, 2016

were

$13.2

million.

Identifiable Intangible Assets

Identified intangible assets consisted of the following as of

March 31, 2017 (

in thousands):

	Gross Intangible Assets		Accumulated Impairment		Accumulated Amortization		Net Intangible Assets
Developed intellectual property	$	17,309	$	265	$	14,168	$	2,876
Customer relationships		13,520		123		13,397		-
In-process intellectual property		1,188		1,003		185		-
Contract backlog		7,329		-		7,329		-
Other intangible assets		1,591		-		1,483		108
Total identifiable intangible assets	$	40,937	$	1,391	$	36,562	$	2,984

Identified intangible assets consisted of the following as of

March 31, 2016 (

in thousands):

	Gross Intangible Assets		Accumulated Impairment		Accumulated Amortization		Net Intangible Assets
Developed intellectual property	$	17,309	$	-	$	11,639	$	5,670
Customer relationships		13,520		-		12,961		559
In-process intellectual property		1,188		-		-		1,188
Contract backlog		7,329		-		7,329		-
Other intangible assets		1,599		-		1,409		190
Total identifiable intangible assets	$	40,945	$	-	$	33,338	$	7,607

We review our intangible assets for impairment whenever events and circumstances indicate that the carrying value of an asset might

not

be recoverable, based upon estimated undiscounted future cash flows. When we are required to determine the fair value of intangible assets other than goodwill, we use the income approach. We start with a forecast of all the expected net cash flows associated with the asset and then we apply an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows on the projections and the selection of a long-term growth rate and the discount rate. Based on our review, the intangible assets resulting from the RadioPulse acquisition were determined to be fully impaired and an impairment charge of

$1.4

million was recognized during the quarter ended

December 31, 2016.

The following table summarizes the components of the acquired identifiable intangible assets associated with the acquisitions of RadioPulse and a

-bit and

-bit microcontroller product line, or the Acquired MCU Business, in fiscal

2014

			Amortization	Estimated
	Fair Value		Method	Useful Life
	(In thousands)			(In months)

RadioPulse:
Developed intellectual property	$	1,005	Accelerated		60
Customer relationships		500	Accelerated		36
In-process research and development expense		1,188	Straight-line		60
Contract backlog		174	Straight-line		6
Total for RadioPulse	$	2,867

Acquired MCU Business:
Developed intellectual property	$	11,504	Straight-line		60
Customer relationships		6,920	Accelerated		36
Contract backlog		5,155	Straight-line		9
Trade name		421	Straight-line		60
Total for Acquired MCU Business	$	24,000

For fiscal

2017,

2016

and

2015,

amortization expenses on acquisition-related intangible assets were

$3.1

million,

$5.6

million and

$6.0

million, respectively. The amortization of intangible assets is expected to be approximately

$2.4

million and

$596,000

in fiscal

2018

and

2019,

respectively.

- 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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