INTANGIBLE ASSETS - Note 5

12 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS - Note 5

5. INTANGIBLE ASSETS

The carrying value of intangible assets consisted of the following (in thousands):

		March 31, 2017						March 31, 2016
		Gross						Gross
		Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
Technology	$	18,685	$	(7,010)	$	11,675	$	18,640	$	(4,622)	$	14,018
Customer relationships		9,419		(6,187)		3,232		9,993		(4,847)		5,146
Trade names/domains		2,036		-		2,036		2,205		-		2,205
In-process research and development		95		-		95		95		-		95
Total acquired identifiable intangible assets	$	30,235	$	(13,197)	$	17,038	$	30,933	$	(9,469)	$	21,464

At March 31, 2017, annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands):

		Amount
2018	$	3,854
2019		3,459
2020		3,009
2021		2,666
2022		1,701
Thereafter		218
Total	$	14,907

Impairment of Long-Lived Assets

During the year ended March 31, 2017, the Company decided to discontinue a certain customer segment of its United Kingdom based platform-as-a-service (DXI PaaS) that was acquired in fiscal 2016 as part of the DXI acquisition. The Company evaluated long-lived assets related to the DXI reporting unit including the technology, customer relationships, and trade name intangible assets for impairment and determined that the assets were not impaired. However, the Company recorded an impairment charge equal to the remaining value of the impaired DXI PaaS customer relationship in the third fiscal quarter. The impairment recorded during the fiscal year was immaterial to the consolidated statements of operations. Revenues and net income (loss) from DXI PaaS were not material for all periods presented.

During the year ended March 31, 2016, the Company decided to end-of-life its hosted virtual desktop service (Zerigo). The Company evaluated long-lived assets related to Zerigo including the technology, customer relationships, and trade name intangible assets for impairment. The Company determined it was appropriate to record an impairment charge equal to the remaining value of the impaired long-lived assets in the third fiscal quarter. The impairment recorded during the fiscal year was $0.6 million, of which $0.4 million and $0.2 million was recorded in cost of service and sales and marketing, respectively, in the consolidated statements of operations. Revenues and net income (loss) from Zerigo were not material for all periods presented.