Supplemental Financial Information

3 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventories

The following table presents details of our inventories, net of reserves:


	June 30, 2023		March 31, 2023
	(In thousands)
Raw materials	$	7,833	$	7,840
Work in process	387		315
Finished goods	3,314		2,686
	$	11,534	$	10,841

Property and Equipment

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


	June 30, 2023		March 31, 2023
	(In thousands)
Equipment	$	6,524	$	6,359
Leasehold improvements	824		824
Accumulated depreciation	(6,033)		(5,886)
	$	1,315	$	1,297

Depreciation expense was approximately $0.2 million and $0.2 million for the three months ended June 30, 2023 and June 30, 2022, respectively. In each of those periods, approximately $0.1 million of the depreciation expense was recorded to cost of revenues, and approximately $0.1 million was recorded to operating expenses.

Intangible Assets

The following table presents details of our net intangible assets:


	June 30, 2023						March 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(In thousands)
Technology	$	4,986	$	(3,676)	$	1,310	$	4,986	$	(3,444)	$	1,542
Customer contracts / relationships	9,550		(4,724)		4,826		9,550		(4,371)		5,179
Trade names and non-compete agreements	782		(770)		12		782		(770)		12
Capitalized software development costs	8,068		(4,230)		3,838		7,489		(4,032)		3,457
Total	$	23,386	$	(13,400)	$	9,986	$	22,807	$	(12,617)	$	10,190

Amortization expense for intangible assets subject to amortization was approximately $0.8 million for each of the three- month periods ended June 30, 2023 and 2022. For each of those periods, approximately $0.1 million of the intangible asset amortization was recorded to cost of revenues and approximately $0.7 million was recorded to amortization expense.

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 June 30, 2023, future estimated amortization expense was as follows:


Year Ending March 31,
(In thousands)
2024	$	2,789
2025	3,263
2026	2,038
2027	1,266
2028	618
Thereafter	—
	$	9,974

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 balance sheets. The following table presents activity related to the warranty reserve:


Warranty Reserve Activity	Three Months Ended June 30,
	2023		2022
	(In thousands)
Balance at beginning of fiscal year	$	758	$	616
Additions charged to cost of sales	193		51
Warranty claims	(96)		(44)
Balance at end of reporting period	$	855	$	623

Earnings (Loss) Per Share

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


	Three Months Ended June 30,
	2023		2022
	(In thousands, except per share amounts)
Numerator:
Net income (loss) from continuing operations	$	2,125	$	(4,850)
Net loss from discontinued operations, net of tax	—		(15)
Net income (loss)	$	2,125	$	(4,865)
Denominator:
Weighted average common shares used in basic computation	$	42,567	42,380
Stock options and other dilutive awards	1,073		—
Weighted average common shares used in diluted computation	$	43,640	42,380
Basic and diluted:
Net income (loss) per share from continuing operations:	$	0.05	$	(0.11)
Net loss per share from discontinued operations:	$	—	$	—
Net income (loss) per share	$	0.05	$	(0.11)

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 June 30,
	2023	2022
	(In thousands)
Stock options	3,362	5,718
Restricted stock units	280	446