Balance Sheet Components

9 Months Ended

Nov. 03, 2024

Balance Sheet Components Disclosure [Abstract]

Inventory

Inventory consists of the following (in thousands):


	At the End of
	Fiscal 2024		Third Quarter of Fiscal 2025
Raw materials	$	19,317	$	13,045
Finished goods	23,346		28,526
Inventory	$	42,663	$	41,571

Property and Equipment, Net

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


	At the End of
	Fiscal 2024		Third Quarter of Fiscal 2025
Test and infrastructure equipment	$	371,269	$	436,765
Computer equipment and software	319,636		375,874
Furniture and fixtures	12,547		13,826
Leasehold improvements	92,926		100,358
Capitalized software development costs	36,474		58,706
Total property and equipment	832,852		985,529
Less: accumulated depreciation and amortization	(480,248)		(554,176)
Property and equipment, net	$	352,604	$	431,353

Depreciation and amortization expense related to property and equipment was $28.7 million and $24.9 million for the third quarter of fiscal 2024 and 2025, and $82.5 million and $89.1 million for the first three quarters of fiscal 2024 and 2025.

Intangible Assets, Net

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


	At the End of
	Fiscal 2024						Third 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	$	(17,223)	$	3,652
Developed technology	83,211		(56,589)		26,622		83,211		(66,506)		16,705
Customer relationships	6,459		(3,087)		3,372		6,459		(3,777)		2,682

Intangible assets, net	$	108,795	$	(75,783)	$	33,012	$	110,545	$	(87,506)	$	23,039

Intangible assets amortization expense was $4.0 million and $3.9 million for the third quarter of fiscal 2024 and 2025, and $12.3 million and $11.7 million for the first three quarters of fiscal 2024 and 2025. At the end of the third quarter of fiscal 2025, the weighted-average remaining amortization period was 1.0 years for technology patents, 1.3 years for developed technology, and 2.9 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 third 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	$	3,966
2026	13,266
2027	3,543
2028	1,498
2029	604
Thereafter	162
Total	$	23,039

Goodwill

As of the end of fiscal 2024 and the third quarter of fiscal 2025, goodwill was $361.4 million. There were no impairments to goodwill for the third and first three 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		Third Quarter of Fiscal 2025
Taxes payable	$	13,097	$	12,953
Accrued marketing	18,438		18,349
Engineering-related accruals (1)	5,973		9,644
Supply chain-related accruals (2)	25,962		15,736
Accrued service logistics and professional services	9,636		11,979

Finance lease liabilities, current	4,204		691
Customer deposits from contracts with customers	23,534		26,094
Other accrued liabilities	34,911		46,400
Total accrued expenses and other liabilities	$	135,755	$	141,846

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(1) Primarily consists of subscription cloud services and outside services costs.

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