Balance Sheet Components

6 Months Ended

Aug. 06, 2023

Balance Sheet Components Disclosure [Abstract]

Inventory

Inventory consists of the following (in thousands):


	At the End of
	Fiscal 2023		Second Quarter of Fiscal 2024
Raw materials	$	24,896	$	21,050
Finished goods	25,256		26,448
Inventory	$	50,152	$	47,498

Property and Equipment, Net

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


	At the End of
	Fiscal 2023		Second Quarter of Fiscal 2024
Test equipment	$	315,290	$	347,310
Computer equipment and software	262,574		288,831
Furniture and fixtures	9,693		9,882
Leasehold improvements	71,235		92,782
Capitalized software development costs	15,806		25,663
Total property and equipment	674,598		764,468
Less: accumulated depreciation and amortization	(402,153)		(438,685)
Property and equipment, net	$	272,445	$	325,783

Depreciation and amortization expense related to property and equipment was $19.5 million and $27.2 million for the second quarter of fiscal 2023 and 2024, and $38.8 million and $53.8 million for the first two quarters of fiscal 2023 and 2024.

Intangible Assets, Net

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


	At the End of
	Fiscal 2023						Second 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	$	(15,467)	$	3,658
Developed technology	83,211		(43,366)		39,845		83,211		(49,978)		33,233
Customer relationships	6,459		(2,166)		4,293		6,459		(2,626)		3,833
Trade name	3,623		(2,838)		785		3,623		(3,441)		182
Intangible assets, net	$	112,418	$	(63,196)	$	49,222	$	112,418	$	(71,512)	$	40,906

Intangible assets amortization expense was $4.1 million for the second quarter of fiscal 2023 and 2024, and $8.2 million and $8.3 million for the first two quarters of fiscal 2023 and 2024. At the end of the second quarter of fiscal 2024, the weighted-average remaining amortization period was 1.3 years for technology patents, 2.5 years for developed technology, 4.2 years for customer relationships, and 0.2 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 second 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	$	7,894
2025	15,425
2026	12,830
2027	3,107
2028	1,054
Thereafter	596
Total	$	40,906

Goodwill

As of the end of fiscal 2023 and the second quarter of fiscal 2024, goodwill was $361.4 million. There were no impairments to goodwill for any period during 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		Second Quarter of Fiscal 2024
Taxes payable	$	16,615	$	10,091
Accrued marketing	14,228		14,650
Accrued cloud and outside services	7,644		6,037
Supply chain-related accruals (1)	23,545		30,148
Accrued service logistics and professional services	7,927		7,454
Acquisition earn-out and deferred consideration	3,556		5,299
Finance lease liabilities, current	5,432		7,223
Customer deposits from contracts with customers	17,824		17,869
Other accrued liabilities	26,978		30,071
Total accrued expenses and other liabilities	$	123,749	$	128,842

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