Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

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Goodwill and Intangible Assets
 6 Months Ended
Jul. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and Intangible Assets

 

Goodwill

 

Changes in the carrying amount of goodwill for the first six months of fiscal 2012 were as follows:

 

    Goodwill  
    (in thousands)  
Balance at January 31, 2012   $ 44,414  
Acquisition goodwill       110  
Cumulative translation adjustment     (1,607 )
Balance at July 31, 2012   $ 42,917  

 

We performed an impairment test of goodwill and long-lived assets of the Media Services segment as result of the sale of Media Services segment during the first quarter of fiscal 2013. Based on our evaluation and the final selling price as well as other deal terms that were agreed to in the final purchase agreement executed on May 21, 2012, the carrying amount of goodwill in our former Media Services business exceeded the implied fair value, and thus resulted in a $17 million impairment charge which we recorded as part of our discontinued operating results during our first quarter of fiscal 2013.

 

Intangible Assets

 

Intangible assets consisted of the following:

 

          July 31, 2012     January 31, 2012  
    Weighted
average
remaining
life (Years)		     Gross     Accumulated
Amortization		     Net     Gross     Accumulated
Amortization		     Net  
          (in thousands)     (in thousands)  
Finite-lived intangible assets:                                                        
Customer contracts     5.6     $ 31,357     $ (17,199 )   $ 14,158     $ 31,758     $ (15,726 )   $ 16,032  
Non-compete agreements     1.0       2,581       (2,019 )     562       2,673       (1,869 )     804  
Completed technology     4.8       10,811       (6,626 )     4,185       11,259       (6,048 )     5,211  
Trademarks and other     1.0       1,688       (1,574 )     114       1,715       (1,530 )     185  
Total finite-lived intangible assets           $ 46,437     $ (27,418 )   $ 19,019     $ 47,405     $ (25,173 )   $ 22,232  
Infinite-lived intangible assets:                                                        
Trade names     Infinite     $ 200     $ -     $ 200       200       -     $ 200  
Total infinite-lived intangible assets           $ 200     $ -     $ 200     $ 200     $ -     $ 200  
Total intangible assets           $ 46,637     $ (27,418 )   $ 19,219     $ 47,605     $ (25,173 )   $ 22,432  

 

Estimated future amortization expenses related to the above intangible assets at July 31, 2012 are as follows:

 

Fiscal Year   (in thousands)  
2013 (for the remaining six months ending January 31, 2013)   $ 2,874  
2014     4,591  
2015     3,959  
2016     3,154  
2017 and thereafter     4,441  
Total   $ 19,019