Balance Sheet Components

6 Months Ended

Aug. 04, 2024

Balance Sheet Components Disclosure [Abstract]

Inventory

Inventory consists of the following (in thousands):


	At the End of
	Fiscal 2024		Second Quarter of Fiscal 2025
Raw materials	$	19,317	$	15,267
Finished goods	23,346		28,281
Inventory	$	42,663	$	43,548

Property and Equipment, Net

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


	At the End of
	Fiscal 2024		Second Quarter of Fiscal 2025
Test equipment	$	371,269	$	420,303
Computer equipment and software	319,636		350,805
Furniture and fixtures	12,547		13,322
Leasehold improvements	92,926		98,639
Capitalized software development costs	36,474		50,290
Total property and equipment	832,852		933,359
Less: accumulated depreciation and amortization	(480,248)		(536,683)
Property and equipment, net	$	352,604	$	396,676

Depreciation and amortization expense related to property and equipment was $27.2 million and $33.1 million for the second quarter of fiscal 2024 and 2025, and $53.8 million and $64.2 million for the first two quarters of fiscal 2024 and 2025.

Intangible Assets, Net

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


	At the End of
	Fiscal 2024						Second Quarter of Fiscal 2025
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount		Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Technology patents	$	19,125	$	(16,107)	$	3,018	$	20,875	$	(16,794)	$	4,081
Developed technology	83,211		(56,589)		26,622		83,211		(63,200)		20,011
Customer relationships	6,459		(3,087)		3,372		6,459		(3,547)		2,912

Intangible assets, net	$	108,795	$	(75,783)	$	33,012	$	110,545	$	(83,541)	$	27,004

Intangible assets amortization expense was $4.1 million and $3.9 million for the second quarter of fiscal 2024 and 2025, and $8.3 million and $7.8 million for the first two quarters of fiscal 2024 and 2025. At the end of the second quarter of fiscal 2025, the weighted-average remaining amortization period was 1.1 years for technology patents, 1.5 years for developed technology, and 3.2 years for customer relationships. 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 in sales and marketing expenses in the condensed consolidated statements of operations.

At the end of the second quarter of fiscal 2025, future expected amortization expense for intangible assets is as follows (in thousands):


Fiscal Years Ending	Estimated Future Amortization Expense
Remainder of 2025	$	7,931
2026	13,266
2027	3,543
2028	1,498
2029	604
Thereafter	162
Total	$	27,004

Goodwill

As of the end of fiscal 2024 and the second quarter of fiscal 2025, goodwill was $361.4 million. There were no impairments to goodwill for the second and first two quarters of fiscal 2024 and 2025.

Accrued Expenses and Other Liabilities

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


	At the End of
	Fiscal 2024		Second Quarter of Fiscal 2025
Taxes payable	$	13,097	$	8,971
Accrued marketing	18,438		18,356
Accrued cloud and outside services	5,973		5,752
Supply chain-related accruals (1)	25,962		17,657
Accrued service logistics and professional services	9,636		8,666

Finance lease liabilities, current	4,204		2,035
Customer deposits from contracts with customers	23,534		22,550
Other accrued liabilities	34,911		35,443
Total accrued expenses and other liabilities	$	135,755	$	119,430

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