INTANGIBLE ASSETS AND GOODWILL - Note 4

9 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL - Note 4

4. INTANGIBLE ASSETS AND GOODWILL

The carrying value of intangible assets consisted of the following (in thousands):

		December 31, 2016						March 31, 2016
		Gross				Net		Gross				Net
		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
Technology	$	17,402	$	(6,318)	$	11,084	$	18,640	$	(4,622)	$	14,018
Customer relationships		9,383		(5,858)		3,525		9,993		(4,847)		5,146
Trade names/domains		2,022		-		2,022		2,205		-		2,205
In-process research and development		95		-		95		95		-		95
Total acquired identifiable intangible assets	$	28,902	$	(12,176)	$	16,726	$	30,933	$	(9,469)	$	21,464

At December 31, 2016, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands):

		Amount
Remaining 2017	$	869
2018		3,229
2019		2,983
2020		2,983
2021		2,644
Thereafter		1,901
Total	$	14,609

Impairment of Long-Lived Assets

During the three months ended December 31, 2016, the Company decided to discontinue a certain customer segment of its United Kingdom based platform-as-a-service (DXI PaaS) that was acquired in fiscal 2016 as part of the DXI acquisition. The Company evaluated long-lived assets related to the DXI reporting unit including the technology, customer relationships, and trade name intangible assets for impairment. The Company determined it was appropriate to record an impairment charge equal to the remaining value of the impaired DXI PaaS customer relationship intangible in the third fiscal quarter. The impairment recorded during the fiscal year was immaterial to the consolidated statements of operations. Revenues and net income (loss) from DXI PaaS were not material for all periods presented.

During the three months ended December 31, 2015, the Company decided to end-of-life its hosted virtual desktop service (Zerigo). The Company evaluated long-lived assets related to Zerigo including the technology, customer relationships, and trade name intangible assets for impairment. The Company determined it was appropriate to record an impairment charge equal to the remaining value of the impaired long-lived assets in the third fiscal quarter. The impairment recorded during the fiscal year was $0.6 million, of which $0.4 million and $0.2 million was recorded in cost of service and sales and marketing, respectively, in the consolidated statements of operations. Revenues and net income (loss) from Zerigo were not material for all periods presented.

The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands):

		Americas		Europe		Total
Balance as of March 31, 2016	$	25,729	$	21,691	$	47,420
Foreign currency translation		-		(3,093)		(3,093)
Balance as of December 31, 2016	$	25,729	$	18,598	$	44,327