Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company had a goodwill balance of $33.9 million at June 30, 2019, representing the excess of costs over fair value of assets of businesses acquired. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table summarizes changes in the balance of goodwill during the nine months ended June 30, 2019 (amounts shown in thousands):

Balance at September 30, 2018	$	34,407
A2iA purchase accounting adjustment	121
Foreign currency effect on goodwill	(603)
Balance at June 30, 2019	$	33,925

Intangible assets

Intangible assets include the value assigned to purchased completed technology, customer relationships, and trade names. The estimated useful lives for all of these intangible assets range from two to seven years. Intangible assets as of June 30, 2019 and September 30, 2018, respectively, are summarized as follows (amounts shown in thousands, except for years):

June 30, 2019:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	5,761	$	14,580
Customer relationships	4.8 years	17,628		5,414		12,214
Trade names	4.5 years	618		332		286
Total intangible assets		$	38,587	$	11,507	$	27,080

September 30, 2018:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	3,070	$	17,271
Customer relationships	4.8 years	17,628		2,351		15,277
Trade names	4.5 years	618		219		399
Total intangible assets		$	38,587	$	5,640	$	32,947

Amortization expense related to acquired intangible assets was $1.8 million and $1.1 million for the three months ended June 30, 2019 and 2018, respectively, and $5.3 million and $2.2 million for the nine months ended June 30, 2019 and 2018, respectively, and is recorded within acquisition-related costs and expenses on the consolidated statements of operations and other comprehensive income (loss).

The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows (amounts shown in thousands):

	Estimated Future Amortization Expense
2019 (remaining three months)	$	1,775
2020	6,486
2021	6,216
2022	5,815
2023	3,816
2024	1,806
Thereafter	1,166
Total	$	27,080