NOTE 3   BUSINESS COMBINATION: On July 1, 2014, Mellanox completed its acquisition of Integrity Project, Ltd. ( Integrity ), a privately held company. Based in Ramat-Gan, Israel, Integrity specializes in the fields of connectivity, low-level development, real-time applications, and security. The Company s primary reason for the Integrity acquisition was for Integrity s software expertise, which further enhances the Company s commitment to provide superior solutions. The acquisition positions the Company to broaden its customer base by adding software solutions designed to enable customers to achieve optimal performance from all interconnect components. The Company accounted for this transaction using the acquisition method, and accordingly, the consideration has been allocated to tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date. The assets acquired and liabilities assumed were immaterial to the Company s unaudited condensed financial statements. There were no intangible assets identified in this transaction other than goodwill. The goodwill arising from this acquisition was primarily attributable to the assembled workforce. Goodwill is not deductible for tax purposes. Goodwill is not being amortized but is reviewed annually for impairment or more frequently if impairment indicators arise, in accordance with authoritative accounting guidance. On July 1, 2013, the Company completed its acquisition of a privately held company, IPtronics A/S ( IPtronics ). On August 15, 2013, the Company completed its acquisition of a privately held company, Kotura, Inc ( Kotura ). The Company s primary reason for the IPtronics and Kotura acquisitions was to enhance its ability to deliver cost-effective, high-speed networks with next generation optical connectivity at 100Gb/s and beyond. The acquisitions also enhanced the Company s engineering team and added a strong patent portfolio in the field of silicon photonics. The following table pre