Balance Sheet Components

3 Months Ended

May 07, 2023

Balance Sheet Components Disclosure [Abstract]

Inventory

Inventory consists of the following (in thousands):


	At the End of
	Fiscal 2023		First Quarter of Fiscal 2024
Raw materials	$	24,896	$	22,919
Finished goods	25,256		28,902
Inventory	$	50,152	$	51,821

Property and Equipment, Net

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


	At the End of
	Fiscal 2023		First Quarter of Fiscal 2024
Test equipment	$	315,290	$	331,828
Computer equipment and software	262,574		273,515
Furniture and fixtures	9,693		9,529
Leasehold improvements	71,235		90,699
Capitalized software development costs	15,806		19,557
Total property and equipment	674,598		725,128
Less: accumulated depreciation and amortization	(402,153)		(422,234)
Property and equipment, net	$	272,445	$	302,894

Depreciation and amortization expense related to property and equipment was $19.3 million and $26.6 million for the first quarter of fiscal 2023 and 2024.

Intangible Assets, Net

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


	At the End of
	Fiscal 2023						First Quarter of Fiscal 2024
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount		Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Technology patents	$	19,125	$	(14,826)	$	4,299	$	19,125	$	(15,146)	$	3,979
Developed technology	83,211		(43,366)		39,845		83,211		(46,672)		36,539
Customer relationships	6,459		(2,166)		4,293		6,459		(2,397)		4,062
Trade name	3,623		(2,838)		785		3,623		(3,139)		484
Intangible assets, net	$	112,418	$	(63,196)	$	49,222	$	112,418	$	(67,354)	$	45,064

Intangible assets amortization expense was $4.1 million and $4.2 million for the first quarter of fiscal 2023 and 2024. At the end of the first quarter of fiscal 2024, the weighted-average remaining amortization period was 1.4 years for technology patents, 2.8 years for developed technology, 4.4 years for customer relationships, and 0.4 years for trade name. We record 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 2024, future expected amortization expense for intangible assets is as follows (in thousands):


Fiscal Years Ending	Estimated Future Amortization Expense
Remainder of 2024	$	12,052
2025	15,425
2026	12,830
2027	3,107
2028	1,054
Thereafter	596
Total	$	45,064

Goodwill

As of the end of fiscal 2023 and the first quarter of fiscal 2024, goodwill was $361.4 million. There were no impairments to goodwill during the first quarter of fiscal 2023 and 2024.

Accrued Expenses and Other Liabilities

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


	At the End of
	Fiscal 2023		First Quarter of Fiscal 2024
Taxes payable	$	16,615	$	9,873
Accrued marketing	14,228		10,674
Accrued cloud and outside services	7,644		4,799
Supply chain-related accruals (1)	23,545		29,158
Accrued service logistics and professional services	7,927		6,414
Acquisition earn-out and deferred consideration	3,556		4,428
Finance lease liabilities, current	5,432		5,499
Customer deposits from contracts with customers	17,824		17,613
Other accrued liabilities	26,978		32,772
Total accrued expenses and other liabilities	$	123,749	$	121,230

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(1) Primarily consist of warranty reserves and accruals related to our inventory and inventory purchase commitments with our contract manufacturers.