Intangible Assets

3 Months Ended

Mar. 31, 2024

Intangible Assets, Net (Excluding Goodwill) [Abstract]

9. INTANGIBLE ASSETS

Intangible assets consisted of the following:


			As of March 31, 2024							As of December 31, 2023
(In thousands)	Weighted Average Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Customer relationships		10.9	$	52,754	$	(15,725	)	$	37,029	$	54,856	$	(15,943	)	$	38,913
Backlog		1.6		56,106		(51,712	)		4,394		57,391		(52,022	)		5,369
Developed technology		8.5		322,176		(69,549	)		252,627		329,369		(61,271	)		268,098
Licensed technology		9.0		5,900		(3,961	)		1,939		5,900		(3,797	)		2,103
Licensing agreements		8.5		560		(378	)		182		560		(368	)		192
Trade names		3.0		29,024		(18,747	)		10,277		29,689		(16,379	)		13,310
Total			$	466,520	$	(160,072	)	$	306,448	$	477,765	$	(149,780	)	$	327,985

Intangible assets are reviewed for impairment whenever events and circumstances indicate impairment may have occurred. The Company assessed impairment triggers related to intangible assets during each financial period in 2024 and 2023. During the first quarter of 2024, qualitative factors such as a decrease in the Company’s market capitalization, cautious service provider spending due to economic uncertainty and continued customer inventory adjustments triggered a quantitative reassessment of our estimated future undiscounted cash flows for our Network Solutions reporting unit. The Company determined that our estimated future undiscounted cash flows exceeded the carrying value of our Network Solutions reporting unit as of March 31, 2024. Our Services & Support asset group is a stable business with gross margins of 58%, the Company has sufficient cash flows that exceed the carrying value as of March 31, 2024. No impairment losses related to intangible assets were recorded during the three months ended March 31, 2024 and 2023.

Amortization expense was $14.6 million and $25.8 million in the three months ended March 31, 2024 and 2023, respectively, and was included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Loss.

Estimated future amortization expense of intangible assets is as follows:


	As of
(In thousands)	March 31, 2024
2024	$	43,396
2025		46,346
2026		43,089
2027		41,725
2028		41,578
Thereafter		90,314
Total	$	306,448