Supplemental Financial Information

6 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventories

The following table presents details of our inventories:


	September 30, 2021		March 31, 2021
	(In thousands)
Raw materials	$	3,897	$	2,714
Work in process	37		435
Finished goods	2,115		1,917
	$	6,049	$	5,066

Property and Equipment.

The following table presents details of our property and equipment, net:


	September 30, 2021		March 31, 2021
	(In thousands)
Equipment	$	7,126	$	6,806
Leasehold improvements	3,046		3,046
Accumulated depreciation	(8,345)		(7,929)
	$	1,827	$	1,923

Depreciation expense was approximately $0.2 million and $0.4 million for the three and six months ended September 30, 2021, respectively, and $0.2 million and $0.4 million for the three and six months ended September 30, 2020, respectively. Approximately $0.0 million and $0.1 million of the depreciation expense was recorded to cost of revenues, and approximately $0.1 million and $0.3 million was recorded to operating expenses, respectively, in the unaudited condensed consolidated statements of operations for the three and six month periods ended September 30, 2021. Approximately $0.1 million and $0.1 million of the depreciation expense was recorded to cost of revenues, and approximately $0.1 million and $0.3 million was recorded to operating expenses, respectively, in the unaudited condensed consolidated statements of operations for the three and six month periods ended September 30, 2020.

Intangible Assets

The following table presents details of our net intangible assets:


	September 30, 2021						March 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(In thousands)
Technology	$	4,986	$	(2,057)	$	2,929	$	4,986	$	(1,594)	$	3,392
Customer contracts / relationships	9,550		(2,253)		7,297		9,550		(1,547)		8,003
Trade names and non-compete agreements	782		(718)		64		782		(683)		99
Capitalized software development costs	5,540		(2,788)		2,752		5,177		(2,374)		2,803
Total	$	20,858	$	(7,816)	$	13,042	$	20,495	$	(6,198)	$	14,297

Amortization expense for intangible assets subject to amortization was approximately $0.8 million and $1.6 million for the three and six month periods ended September 30, 2021, respectively, and $0.4 million and $0.7 million for the three and six month periods ended September 30, 2020, respectively. Approximately $0.1 million and $0.3 million of the intangible asset amortization was recorded to cost of revenues and approximately $0.7 million and $1.3 million, was recorded to amortization expense, respectively, in the unaudited condensed consolidated statements of operations for the three and six months ended September 30, 2021. Approximately $0.1 million and $0.3 million of the intangible asset amortization was recorded to cost of revenues and approximately $0.2 million and $0.5 million, was recorded to amortization expense, respectively, in the unaudited condensed consolidated statements of operations for the three and six months ended September 30, 2020.

We have one indefinite useful life intangible asset, with de minimis carrying value, which was included in trade names and non-compete agreements.

As of September 30, 2021, future estimated amortization expense was as follows:


Year Ending March 31,
(In thousands)
2022	$	1,612
2023	3,092
2024	2,901
2025	2,427
2026	1,284
Thereafter	1,714
	$	13,030

The future estimated amortization expense does not include the indefinite useful life intangible asset described above.

Warranty Reserve Activity

Warranty reserve is recorded as accrued liabilities in the accompanying unaudited condensed consolidated balance sheets. The following table presents activity related to the warranty reserve:


Warranty Reserve Activity	Six Months Ended September 30,
	2021		2020
	(In thousands)
Balance at beginning of fiscal year	$	569	$	416
Additions charged to cost of sales	148		152
Warranty claims	(55)		(128)
Balance at end of reporting period	$	662	$	440

Earnings Per Share

The following table sets forth the computation of basic and diluted net income (loss) per share:


	Three Months Ended September 30,				Six Months Ended September 30,
	2021		2020		2021		2020
	(In thousands, except per share amounts)				(In thousands, except per share amounts)
Numerator:
Net income (loss) from continuing operations	$	(2,089)	$	719	$	(1,460)	$	1,137
Net income (loss) from discontinued operations, net of tax	(58)		(306)		(76)		9,624
Net income (loss)	$	(2,147)	$	413	$	(1,536)	$	10,761
Denominator:
Weighted average common shares used in basic computation	42,282		40,989		42,079		40,860
Dilutive stock options	—		920		—		848
Weighted average common shares used in diluted computation	42,282		41,909		42,079		41,708
Basic:
Net income (loss) per share from continuing operations:	$	(0.05)	$	0.02	$	(0.03)	$	0.03
Net income (loss) per share from discontinued operations:	$	0.00	$	(0.01)	$	0.00	$	0.24
Net income (loss) per basic share	$	(0.05)	$	0.01	$	(0.03)	$	0.27
Diluted:
Net income (loss) per share from continuing operations:	$	(0.05)	$	0.02	$	(0.03)	$	0.03
Net income (loss) per share from discontinued operations:	$	0.00	$	(0.01)	$	0.00	$	0.23
Net income (loss) per diluted share	$	(0.05)	$	0.01	$	(0.03)	$	0.26

The following instruments were excluded for purposes of calculating weighted average common share equivalents in the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:


	Three Months Ended September 30,		Six Months Ended September 30,
	2021	2020	2021	2020
	(In thousands)		(In thousands)
Stock options	90	2,887	58	2,889
Restricted stock units	356	106	178	158