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XYRATEX LTDNOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(U.S. dollars and amounts in thousands, except per share data, unless otherwise stated)4. Acquisition and purchase of intangible assets (Continued)Using the purchase method of accounting, the Company has estimated the fair values of theacquired assets and liabilities. Allocation of the purchase price to tangible and intangible assets is asfollows:Cash ................................................... $ 990Accounts receivable ......................................... 2,095Inventory ................................................ 3,081Prepaid expenses ........................................... 230Property, plant and equipment ................................. 443Accounts payable .......................................... (2,351)Deferred revenue—customer deposits ............................ (3,170)Other accrued liabilities ...................................... (593)Net tangible assets ...................................... 725Identifiable intangible assets:Existing technology ....................................... 3,100Core technology ......................................... 700Non-competition agreements ................................ 400Order backlog ........................................... 400Goodwill ................................................ 9,302Purchase price ............................................ $14,627There is no value attributable to In-Process Research and Development. Goodwill is attributable tothe Storage Infrastructure segment.Intangible assets with identifiable lives are being amortized on a straight line basis for theirremaining lives as follows:Existing technology ......................................... 4 yearsCore technology ........................................... 4 yearsNon-competition agreements .................................. 3 yearsOrder backlog ............................................. 1 yearThe intangible assets are expected to be deductible for tax purposes.The results of the acquired business have been included in the Consolidated Statement ofOperations with effect from February 23, 2004.The following unaudited pro-forma summary presents information as if the acquisition of thebusiness and assets of ZT Automation had occurred as of December 1, 2002. The pro forma data giveseffect to actual operating results prior to the acquisition, adjusted to include certain pro formaadjustments including the amortization of intangible assets, reduced interest income and an additionalincome tax provision. The pro-forma amounts do not purport to be indicative of the results that wouldF-19