(18)         Intangible Assets 

 

Intangible assets with finite lives as of April 30, 2011 and July 31, 2010 are as follows:

 

	April 30, 2011
	Weighted Average Amortization Period		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Technologies	10.0		$       47,694,000		25,883,000		$      21,811,000
Customer relationships	10.0		29,931,000		8,524,000		21,407,000
Trademarks and other	17.5		6,044,000		1,765,000		4,279,000
Total			$       83,669,000		36,172,000		$      47,497,000

 

	July 31, 2010
	Weighted Average Amortization Period		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Technologies	10.6		$     42,224,000		22,531,000		$   19,693,000
Customer relationships	9.9		29,931,000		6,223,000		23,708,000
Trademarks and other	17.6		6,044,000		1,354,000		4,690,000
Total			$     78,199,000		30,108,000		$     48,091,000

 

In October 2010, we acquired the WAN optimization technology assets and assumed certain liabilities of Stampede Technologies, Inc. ("Stampede") for a purchase price of approximately $5,303,000 (including $3,803,000 which represents the acquisition date fair value of contingent earn-out payments payable over a three year period ending  October 1, 2013). As of April 30, 2011, $1,500,000 of the total purchase price was paid in cash. During the nine months ended April 30, 2011, we paid $8,000 related to the contingent earn-out liability. Of the remaining contingent earn-out liability, $3,574,000 is included in other liabilities and $492,000 is included in accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheet at April 30, 2011. Interest accreted on the contingent earn-out liability during the three and nine months ended April 30, 2011 was $118,000 and $271,000, respectively. There were no such interest accreted in the three and nine months ended April 30, 2010. Almost all of the purchase price for Stampede was allocated to the estimated fair value of technologies acquired and was assigned an estimated amortizable life of five years. 

 

Stampede was immediately combined with our existing business and is now part of the telecommunications transmission reportable operating segment. Sales and income related to the Stampede acquisition were not material to our results of operations for the nine months ended April 30, 2011 and the effects of the acquisition would not have been material to our historical consolidated financial statements.

 

Amortization expense for the three months ended April 30, 2011 and 2010 was $2,173,000 and $1,754,000, respectively. Amortization expense for the nine months ended April 30, 2011 and 2010 was $6,064,000 and $5,283,000, respectively. The estimated amortization expense related to intangible assets with finite lives for the fiscal years ending July 31, 2011, 2012, 2013, 2014 and 2015 is $8,091,000, $6,637,000, $6,327,000, $6,285,000 and $6,211,000, respectively.