Supplemental Financial Information

6 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventories

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


	September 30, 2023		March 31, 2023
	(In thousands)
Raw materials	$	7,771	$	7,840
Work in process	106		315
Finished goods	2,904		2,686
	$	10,781	$	10,841

Property and Equipment

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


	September 30, 2023		March 31, 2023
	(In thousands)
Equipment	$	6,631	$	6,359
Leasehold improvements	824		824
Accumulated depreciation	(6,130)		(5,886)
	$	1,325	$	1,297

Depreciation expense was approximately $0.1 million for each of the three-month periods ended September 30, 2023 and September 30, 2022. Of the total depreciation expense, approximately half was recorded to cost of revenues, and approximately half was recorded to operating expenses for each period.

Depreciation expense was approximately $0.3 million for each of the six-month periods ended September 30, 2023 and September 30, 2022. Of the total depreciation expense, approximately $0.1 million was recorded to cost of revenues, and approximately $0.2 million was recorded to operating expenses for each of those periods.

Intangible Assets

The following table presents details of our net intangible assets:


	September 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	$	(3,907)	$	1,079	$	4,986	$	(3,444)	$	1,542
Customer contracts / relationships	9,550		(5,078)		4,472		9,550		(4,371)		5,179
Trade names and non-compete agreements	782		(770)		12		782		(770)		12
Capitalized software development costs	8,839		(4,434)		4,405		7,489		(4,032)		3,457
Total	$	24,157	$	(14,189)	$	9,968	$	22,807	$	(12,617)	$	10,190

Amortization expense for intangible assets subject to amortization was approximately $0.8 million in total for each of the three-month periods ended September 30, 2023 and September 30, 2022. Of the total amortization expense, approximately $0.1 million was recorded to cost of revenues and approximately $0.7 million was recorded to operating expenses for each period.

Amortization expense was approximately $1.6 million in total for each of the six-month periods ended September 30, 2023 and September 30, 2022. Of the total amortization expense, approximately $0.3 million was recorded to cost of revenues, and approximately $1.3 million was recorded to operating expenses for each period.

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, 2023, future estimated amortization expense was as follows:


Year Ending March 31,
(In thousands)
2024	$	1,796
2025	3,519
2026	2,295
2027	1,727
2028	619

	$	9,956

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:


	Six Months Ended September 30,
	2023		2022
	(In thousands)
Balance at beginning of fiscal year	$	758	$	616
Additions charged to cost of sales	245		104
Warranty claims	(167)		(67)
Balance at end of reporting period	$	836	$	653

Earnings (Loss) 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,
	2023		2022		2023		2022
	(In thousands, except per share amounts)
Numerator:


Net income (loss)	$	551	$	(7,397)	$	2,676	$	(12,262)
Denominator:
Weighted average common shares used in basic computation	42,742		42,288		42,654		42,334
Stock options and other dilutive awards	971		—		1,023		—
Weighted average common shares used in diluted computation	43,713		42,288		43,677		42,334
Net income (loss) per common share
Basic net income (loss) per share	$	0.01	$	(0.17)	$	0.06	$	(0.29)
Diluted net income (loss) per share	$	0.01	$	(0.17)	$	0.06	$	(0.29)

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,
	2023	2022	2023	2022
	(In thousands)
Stock options	3,213	5,534	3,287	5,626
Restricted stock units	525	345	402	395