Amortization of Customer Relationships and Trade Names
Amortization of customer relationships and trade names expense consists of intangibles that we obtained through the acquisition of other businesses.
Amortization of customer relationships and trade names expense was
$0.2 millionfor fiscal 2013 compared to $1.3 millionfor fiscal 2012, a decrease of $1.1 million, or 85%. As a percentage of total revenues, amortization of customer relationships and trade names expense decreased to 1% for fiscal 2013 from
4% for fiscal 2012. 37 The decrease in amortization of customer relationships and trade names expense was primarily due to an impairment of
$0.8 millionfor the Uptilt and Sparklist trade names, net of amortization in same period for fiscal 2012 and full amortization of three customers in October 2011.
Impairment of capitalized software consists of internal-use software, which was intended to provide a major feature upgrade to Lyris HQ. Internal-use software had been in the application development stage since the fourth quarter of fiscal 2011. Throughout the life of the project,
$0.4 millionin costs have been accounted for as capitalized software. In the second quarter of fiscal 2012, we focused our research and development efforts on the new Lyris ONE initiative, resulting in the recording of an impairment charge of $0.4 millionrelated to the termination of other development projects. During fiscal 2013, we analyzed our capitalized software and determined no impairment charge was needed. Impairment of Goodwill
The following table outlines our goodwill, by acquisition:
As of June 30, 2013 2012 (In thousands) Lyris Technologies
$ 9,707 $ 9,707Cogent 84 84 Total $ 9,791 $ 9,791
We performed our annual impairment testing of goodwill at
June 30, 2013and determined that the estimated fair value of our reporting unit was in excess of its carrying value; accordingly, therefore no impairment charge was recorded in fiscal 2013. In fiscal 2012, we determined that the goodwill associated with the acquisitions of Lyris Technologieson May 12, 2005and Email Labson October 12, 2005exceeded their fair value. We recorded $9.0 millionin impairment of goodwill in fiscal 2012.
See Note 6 ''Goodwill'' of the Notes to Consolidated Financial Statements.
Interest Expense Years Ended June 30, Change 2013 2012 $ Percent (In thousands, except percentages) Interest expense
$ (222 ) $ (396 ) $ 174(44 )%
Interest expense relates to our revolving line of credit with the Bank and our short and long-term capital lease obligations in connection with acquiring computer equipment for our data center operations which is included in property and equipment.