Balance Sheet Components

6 Months Ended

Jul. 31, 2019

Balance Sheet Components Disclosure [Abstract]

Balance Sheet Components

Balance Sheet Components

Inventory

Inventory consists of the following (in thousands):

	As of January 31, 2019		As of July 31, 2019
Raw materials	$	3,349	$	2,623
Finished goods	41,338		33,197
Inventory	$	44,687	$	35,820

Property and Equipment, Net

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

	As of January 31, 2019			As of July 31, 2019
Test equipment	$	170,930		$	191,846
Computer equipment and software	117,330			135,178
Furniture and fixtures	6,980			7,732
Leasehold improvements	34,286			37,866
Total property and equipment	329,526			372,622
Less: accumulated depreciation and amortization	(204,173		)	(241,574		)
Property and equipment, net	$	125,353		$	131,048

Depreciation and amortization expense was $16.8 million and $19.9 million for the three months ended July 31, 2018 and 2019, and $32.8 million and $39.7 million for the six months ended July 31, 2018 and 2019.

Intangible Assets, Net

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

	As of January 31, 2019							As of July 31, 2019
	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount		Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Technology patents	$	10,125	$	(6,572	)	$	3,553	$	19,125	$	(7,538	)	$	11,587
Developed technology	17,700		(1,135		)	16,565		56,100		(4,028		)	52,072
Intangible assets, net	$	27,825	$	(7,707	)	$	20,118	$	75,225	$	(11,566	)	$	63,659

Intangible assets amortization expense was $0.4 million and $2.6 million for the three months ended July 31, 2018 and 2019, and $0.8 million and $3.9 million for the six months ended July 31, 2018 and 2019. As of July 31, 2019, the weighted-average remaining amortization period was 4.2 years for technology patents and 6.5 years for developed technology. Amortization of the technology patents is included in general and administrative expenses due to their defensive nature and amortization of developed technology is included in cost of product revenue in the condensed consolidated statements of operations. During the three months ended July 31, 2019, we acquired a portfolio of technology patents for $9.0 million with a useful life of 7.0 years.

As of July 31, 2019, future expected amortization expense for intangible assets is as follows (in thousands):

Fiscal Years Ending January 31,	Estimated  Future Amortization Expense
Remainder of 2020	$	5,402
2021	10,804
2022	9,846
2023	9,300
2024	9,300
Thereafter	19,007
Total	$	63,659

Goodwill

The change in the carrying amount of goodwill is as follows (in thousands):

	Amount
Balance as of January 31, 2019	$	10,997
Goodwill acquired	25,423
Balance as of July 31, 2019	$	36,420

Accrued Expenses and Other Liabilities

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

	As of January 31, 2019		As of July 31, 2019
Taxes payable	$	7,146	$	4,967
Accrued marketing	6,173		11,005
Accrued travel and entertainment expenses	3,570		3,055
Acquisition consideration held back	3,725		3,725
Other accrued liabilities	19,246		21,938
Total accrued expenses and other liabilities	$	39,860	$	44,690