Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.5.0.2
Intangible Assets and Goodwill
9 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill
Intangible Assets and Goodwill
Changes in the Company’s amortizable intangible assets consisted of the following (in thousands):
 
September 30, 2016
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade-Names
 
Covenants Not to Compete
 
Total
Original cost
$
4,853

 
$
8,088

 
$
2,181

 
$
33

 
$
15,155

Accumulated amortization
(1,460
)
 
(4,224
)
 
(625
)
 
(28
)
 
(6,337
)
Net identifiable intangible assets
$
3,393

 
$
3,864

 
$
1,556

 
$
5

 
$
8,818

Weighted-average useful lives (years)
10

 
6

 
15

 
2

 
9

 
December 31, 2015
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade-Names
 
Covenants Not to Compete
 
Total
Original cost
$
5,115

 
$
8,567

 
$
2,190

 
$
38

 
$
15,910

Accumulated amortization
(1,075
)
 
(3,261
)
 
(528
)
 
(14
)
 
(4,878
)
Net identifiable intangible assets
$
4,040

 
$
5,306

 
$
1,662

 
$
24

 
$
11,032

Weighted-average useful lives (years)
10

 
6

 
15

 
2

 
9

Changes to the carrying amount of net amortizable intangible assets for the nine months ended September 30, 2016 consisted of the following (in thousands):
 
Nine Months Ended 
 September 30, 2016
Balance, beginning of period
$
11,032

Amortization expense
(1,627
)
Currency translation
(587
)
Balance, end of period
$
8,818


Amortization expense of intangible assets consisted of the following (in thousands):
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2016
 
2015
 
2016
 
2015
Amortization expense associated with the developed technology included in cost of revenues
$
308

 
$
320

 
$
953

 
$
953

Amortization expense associated with other acquired intangible assets included in operating expenses
221

 
200

 
674

 
599

Total amortization expense
$
529

 
$
520

 
$
1,627

 
$
1,552


Changes to the carrying amount of goodwill for the nine months ended September 30, 2016 consisted of the following (in thousands):
 
Nine Months Ended 
 September 30, 2016
Balance, beginning of period
$
8,103

Currency translation
(996
)
Balance, end of period
$
7,107


During the nine months ended September 30, 2016, the Company’s stock price traded at levels which caused the Company’s enterprise value, excluding any control premium, to approximate its book value, resulting in increased risk of a potential impairment of goodwill. As of September 30, 2016, the Company’s market capitalization, without a control premium, exceeded its book value by approximately 9%. Declines in the Company's market capitalization could require the Company to record goodwill and other impairment charges. While a goodwill impairment charge is a non-cash charge, it would have a negative impact on the Company's results of operations.