Digital Turbine, Inc. Quarterly report pursuant to sections 13 or 15(d)

Quarterly report pursuant to sections 13 or 15(d)

Acquisitions/Purchase Price Accounting (Tables)

Acquisitions/Purchase Price Accounting (Tables)

9 Months Ended

Dec. 31, 2012

Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition.


	Unaudited
Cash	$	59
Accounts receivable		567
Prepaid expenses and other assets		178
Customer relationships		3,454
Developed technology		818
Trade names / Trademarks		143
Non-compete agreements		54
Goodwill		1,037
Current liabilities		(1,314	)
Long-term debt		(35	)

Purchase price	$	4,961

Amortization Period for Intangible Assets

The amortization period for the intangible assets is as follows:


		Remaining Useful Life

Customer relationships		10 years
Developed technology		10 years
Trade names / Trademarks		5 years
Non-compete agreements		4 years
Goodwill		Indefinite

Targets Combined Operating Results

The Targets’ combined operating results from the acquisition date to December 31, 2012 are as follows:


	Unaudited
Revenue	$	1,780
Cost of goods sold		707

Gross profit	$	1,073
Operating expenses		675

Income from operations		398
Non-operating expenses, net		178
Provision for income tax		33

Net income	$	187

Pro Forma Financial Information

The pro forma financial information of the Company’s consolidated operations if the acquisition of the Targets had occurred as of April 1, 2011 is presented below.


	Unaudited
	Nine Months Ended December 31,
	2012			2011
Revenues	$	7,167		$	14,652
Cost of goods sold		3,742			10,537

Gross profit		3,425			4,115
Operating expenses		11,977			11,846

Loss from operations		(8,552	)		(7,731	)
Non-operating expense		(1,634	)		(1,492	)

Loss before provision for income taxes		(10,186	)		(9,223	)
Provision for income taxes		67			63

Net loss	$	(10,253	)	$	(9,286	)

Basic and diluted loss per share	$	(0.12	)	$	(0.22	)

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References + Details