Balance Sheet Components

3 Months Ended

May 08, 2022

Balance Sheet Components Disclosure [Abstract]

Inventory

Inventory consists of the following (in thousands):


	At the End of
	Fiscal 2022		First Quarter of Fiscal 2023
Raw materials	$	15,734	$	17,366
Finished goods	23,208		23,935
Inventory	$	38,942	$	41,301

Property and Equipment, Net

Property and equipment, net consists of the following (in thousands):


	At the End of
	Fiscal 2022		First Quarter of Fiscal 2023
Test equipment	$	266,672	$	281,577
Computer equipment and software	206,053		213,616
Furniture and fixtures	8,652		8,504
Leasehold improvements	47,443		48,431
Capitalized software development costs	8,528		12,020
Total property and equipment	537,348		564,148
Less: accumulated depreciation and amortization	(342,066)		(356,859)
Property and equipment, net	$	195,282	$	207,289

Depreciation and amortization expense related to property and equipment was $14.5 million and $19.3 million for the first quarter of fiscal 2022 and 2023.

Intangible Assets, Net

Intangible assets, net consist of the following (in thousands):


	At the End of
	Fiscal 2022						First Quarter of Fiscal 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount		Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Technology patents	$	19,125	$	(13,544)	$	5,581	$	19,125	$	(13,864)	$	5,261
Developed technology	80,166		(30,304)		49,862		80,166		(33,504)		46,662
Customer relationships	6,459		(1,246)		5,213		6,459		(1,476)		4,983
Trade name	3,623		(1,633)		1,990		3,623		(1,934)		1,689
Intangible assets, net	$	109,373	$	(46,727)	$	62,646	$	109,373	$	(50,778)	$	58,595

Intangible assets amortization expense was $4.3 million and $4.1 million for the first quarter of fiscal 2022 and 2023. At the end of the first quarter of fiscal 2023, the weighted-average remaining amortization period was 1.9 years for technology patents, 3.7 years for developed technology, 5.4 years for customer relationships, and 1.4 years for trade name. We recorded amortization of technology patents in general and administrative expenses due to their defensive nature, developed technology in cost of product revenue, and customer relationships and trade name in sales and marketing expenses in the condensed consolidated statements of operations.

At the end of the first quarter of fiscal 2023, future expected amortization expense for intangible assets is as follows (in thousands):


Fiscal Years Ending	Estimated Future Amortization Expense
Remainder of 2023	$	12,146
2024	15,776
2025	14,991
2026	12,396
2027	2,673
Thereafter	613
Total	$	58,595

Goodwill

As of the end of fiscal 2022 and the first quarter of fiscal 2023, goodwill was $358.7 million. There were no impairments to goodwill during the first quarter of fiscal 2022 and 2023.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consist of the following (in thousands):


	At the End of
	Fiscal 2022		First Quarter of Fiscal 2023
Taxes payable	$	6,312	$	5,477
Accrued marketing	13,257		7,966
Accrued cloud and outside services	6,135		7,300
Supply chain-related accruals	6,991		11,509
Accrued service logistics and professional services	6,244		6,444
Acquisition earn-out	5,211		6,958
Customer deposits from contracts with customers	10,409		9,699
Other accrued liabilities	23,952		28,939
Total accrued expenses and other liabilities	$	78,511	$	84,292