Balance Sheet Components

3 Months Ended

May 04, 2025

Balance Sheet Components Disclosure [Abstract]

Inventory

Inventory consists of the following (in thousands):


	At the End of
	Fiscal 2025		First Quarter of Fiscal 2026
Raw materials	$	9,616	$	7,301
Finished goods	33,194		30,247
Inventory	$	42,810	$	37,548

Property and Equipment, Net

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


	At the End of
	Fiscal 2025		First Quarter of Fiscal 2026
Test and infrastructure equipment (1)	$	457,033	$	461,934
Computer equipment and software	393,623		416,446
Furniture and fixtures	13,948		14,203
Leasehold improvements	102,002		103,456
Capitalized software development costs	65,824		73,135
Total property and equipment	1,032,430		1,069,174
Less: accumulated depreciation and amortization	(570,699)		(565,647)
Property and equipment, net	$	461,731	$	503,527

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(1) Includes finance lease right-of-use assets. Refer to Note 8.

Depreciation and amortization expense related to property and equipment was $31.1 million and $30.3 million for the first quarter of fiscal 2025 and 2026.

Intangible Assets, Net

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


	At the End of
	Fiscal 2025						First Quarter of Fiscal 2026
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount		Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Technology patents	$	20,875	$	(17,652)	$	3,223	$	20,875	$	(18,082)	$	2,793
Developed technology	83,211		(69,812)		13,399		83,211		(73,118)		10,093
Customer relationships	6,459		(4,007)		2,452		6,459		(4,237)		2,222

Intangible assets, net	$	110,545	$	(91,471)	$	19,074	$	110,545	$	(95,437)	$	15,108

Intangible assets amortization expense was $3.9 million and $4.0 million for the first quarter of fiscal 2025 and 2026. At the end of the first quarter of fiscal 2026, the weighted-average remaining amortization period was 0.7 year for technology patents, 0.8 year for developed technology, and 2.4 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 first quarter of fiscal 2026, future expected amortization expense for intangible assets is as follows (in thousands):


Fiscal Years Ending	Estimated Future Amortization Expense
Remainder of 2026	$	9,301
2027	3,543
2028	1,498
2029	604
2030	162

Total	$	15,108

Goodwill

As of the end of fiscal 2025 and the first quarter of fiscal 2026, goodwill was $361.4 million. There were no impairments to goodwill for the first quarter of fiscal 2025 and 2026.

Accrued Expenses and Other Liabilities

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


	At the End of
	Fiscal 2025		First Quarter of Fiscal 2026
Taxes payable	$	16,176	$	10,976
Accrued marketing	26,619		24,344
Engineering-related accruals (1)	12,802		6,471
Supply chain-related accruals (2)	19,927		29,005
Accrued service logistics and professional services	10,286		12,353

Finance lease liabilities, current	387		297
Customer deposits from contracts with customers	31,143		30,249
Other accrued liabilities	39,451		44,038
Total accrued expenses and other liabilities	$	156,791	$	157,733

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

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