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Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2025

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the nine-month period ended March 31, 2025 were as follows (in thousands):


			Optoelectronics
			And
	Security		Manufacturing		Healthcare
	Division		Division		Division		Consolidated
Balance as of June 30, 2024	$	232,215	$	70,807	$	48,458	$	351,480
Goodwill acquired during the period (see Note 2)		31,518		—		—		31,518
Foreign currency translation adjustment		(56)		68		(149)		(137)
Balance as of March 31, 2025	$	263,677	$	70,875	$	48,309	$	382,861

Intangible assets consisted of the following (in thousands):


	June 30, 2024						March 31, 2025
	Gross						Gross
	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	$	79,228	$	(10,646)	$	68,582	$	89,114	$	(9,845)	$	79,269
Patents		9,116		(3,861)		5,255		9,532		(4,215)		5,317
Developed technology		70,186		(45,740)		24,446		99,134		(53,253)		45,881
Customer relationships		51,113		(41,421)		9,692		34,640		(21,356)		13,284
Total amortizable assets		209,643		(101,668)		107,975		232,420		(88,669)		143,751
Non-amortizable assets:
Trademarks		31,554		—		31,554		39,571		—		39,571
Total intangible assets	$	241,197	$	(101,668)	$	139,529	$	271,991	$	(88,669)	$	183,322

Amortization expense related to intangible assets was $5.5 million and $5.6 million for the three months ended March 31, 2024 and 2025, respectively. For each of the nine months ended March 31, 2024 and 2025, amortization expense related to intangible assets was $15.9 million.

During the nine months ended March 31, 2025, intangible assets of $46.2 million were from the business acquisition described in Note 2.

At March 31, 2025, the estimated future amortization expense for intangible assets was as follows (in thousands):

Fiscal Year


2025 (remaining 3 months)	$	5,287
2026		17,578
2027		18,589
2028		16,767
2029		14,627
Thereafter		70,903
Total	$	143,751

Software development costs for software products incurred before establishing technological feasibility are charged to operations. Software development costs incurred after establishing technological feasibility are capitalized on a product-by-product basis until the product is available for general release to customers at which time amortization begins. Annual amortization, charged to cost of goods sold, is the amount computed using the ratio of current revenues for the developed product divided by total current and anticipated future revenues for that developed product. In the event that future revenues are not estimable, such costs are amortized on a straight-line basis over the remaining estimated economic life of the product. Amortizable assets that have not yet begun to be amortized are included in Thereafter in the table above. For the three months ended March 31, 2024 and 2025, we capitalized software development costs in the amounts of $4.3 million and $4.2 million, respectively. For the nine months ended March 31, 2024 and 2025, we capitalized software development costs in the amounts of $12.3 million and $13.0 million, respectively.