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GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended
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Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | NOTE 8 – GOODWILL AND INTANGIBLE ASSETS Goodwill During the first quarter of fiscal year 2025, due to a decrease in the Company's stock price and overall market capitalization, along with other qualitative considerations including the continued impact from the conditions in the macroeconomic environment, it was determined a Triggering Event occurred, indicating goodwill may be impaired. Accordingly, the Company conducted an interim quantitative impairment test of its goodwill at June 30, 2024 using the market approach to estimate the fair value of its reporting unit. As a result of that interim impairment test, the Company recorded a $427.0 million goodwill impairment charge during the three months ended June 30, 2024. During fiscal year 2025, the Company completed its annual goodwill impairment test at January 31, 2025, using the qualitative assessment, and the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded its carrying value. The Company may be required to record additional goodwill impairment charges. While management cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on the Company's results of operations and financial condition. At June 30, 2025 and March 31, 2025, the carrying amounts of goodwill were $1.1 billion, respectively. The following table summarizes the changes in the carrying amount of goodwill for the three months ended June 30, 2025 as follows (in thousands):
Balance at March 31, 2025 | $ | 1,076,383 |
Foreign currency translation impact | (6,228) |
Balance at June 30, 2025 | $ | 1,070,155 |
Intangible Assets The net carrying amounts of intangible asse t s were $249.9 million and $258.7 million at June 30, 2025 and March 31, 2025, respectively. Intangible assets acquired in a business co mbination are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. The Company amortizes acquired intangible assets over their estimated useful lives. The Company reviews definite-lived intangible assets for impairment when an event occurs that may indicate potential impairment. In connection with the interim goodwill impairment analysis performed during fiscal year 2025, the Company conducted an impairment test of its definite-lived intangible assets. Based on that assessment, the Company concluded that the carrying values of the Company's definite-lived intangible assets were recoverable. At March 31, 2025, the Company performed a Triggering Event assessment and concluded no events or circumstances occurred that indicated intangible assets may be impaired. However, if future events occur or if business conditions deteriorate, the Company may be required to record an impairment loss, and or accelerate the amortization of definite-live intangible assets in the future, which could be material to its results of operations and financial condition. Intangible assets include the foll owing amortizable intangible assets at June 30, 2025 (in thousands):
| Cost |  | Accumulated Amortization |  | Net
Developed technology | $ | 250,252 |  |  | $ | (244,863) |  |  | $ | 5,389 |
Customer relationships | 770,589 |  |  | (533,717) |  |  | 236,872 |
Distributor relationships and technology licenses | 5,220 |  |  | (4,226) |  |  | 994 |
Definite-lived trademark and trade name | 57,990 |  |  | (51,504) |  |  | 6,486 |
Core technology | 7,192 |  |  | (7,192) |  |  | — |
Capitalized software | 3,317 |  |  | (3,317) |  |  | — |
Other | 1,208 |  |  | (1,047) |  |  | 161 |
| $ | 1,095,768 |  |  | $ | (845,866) |  |  | $ | 249,902 |
Intangible assets include the following amortizable intangible assets at March 31, 2025 (in thousands):
| Cost |  | Accumulated Amortization |  | Net
Developed technology | $ | 248,232 |  |  | $ | (242,298) |  |  | $ | 5,934 |
Customer relationships | 763,397 |  |  | (518,995) |  |  | 244,402 |
Distributor relationships and technology licenses | 5,097 |  |  | (4,022) |  |  | 1,075 |
Definite-lived trademark and trade name | 57,675 |  |  | (50,562) |  |  | 7,113 |
Core technology | 7,192 |  |  | (7,192) |  |  | — |
Capitalized software | 3,317 |  |  | (3,317) |  |  | — |
Other | 1,208 |  |  | (1,042) |  |  | 166 |
| $ | 1,086,118 |  |  | $ | (827,428) |  |  | $ | 258,690 |
Amortization included as cost of product revenue consists of amortization of developed technology, distributor relationships and technology licenses. Amortization included as operating expense consists of all other intangible assets. The following table provides a summary of amortization expense for the three months ended June 30, 2025 and 2024 (in thousands):
| Three Months Ended |  |
| June 30, |  |
| 2025 |  | 2024 |  |  |  |
Amortization of intangible assets included as: |  |  |  |  |  |  |
Cost of product revenue | $ | 630 |  |  | $ | 1,266 |  |  |  |  |
Operating expense | 11,124 |  |  | 11,619 |  |  |  |  |
| $ | 11,754 |  |  | $ | 12,885 |  |  |  |  |
The following is the expected future amortization expense at June 30, 2025 for the fiscal years ending March 31 (in thousands):
2026 (remaining nine months) | $ | 35,343 |
2027 | 44,265 |
2028 | 41,297 |
2029 | 31,894 |
2030 | 28,967 |
Thereafter | 68,136 |
| $ | 249,902 |

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