Other Balance Sheet Information

6 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Balance Sheet Information

9. Other Balance Sheet Information

The following is a summary of accounts receivable at March 31, 2023 and September 30, 2022 (in thousands):

	March 31,		September 30,
	2023		2022
Accounts receivable	$	175,656	$	168,920
Less allowance for expected credit losses		(7,696)		(5,162)
Accounts receivable, net	$	167,960	$	163,758

The allowance for expected credit losses for the six months ended March 31, 2023 and fiscal year ended September 30, 2022 (in thousands):

	Balance at				Reversals of		Write-		Balance at
	Beginning of				Bad Debt		offs and		End of
Description	Period		Provisions		Expense		Adjustments		Period
Six months ended March 31, 2023 allowance for expected credit losses	$	5,162		4,858		(2,254)	$	(70)	$	7,696
Fiscal year 2022 allowance for expected credit losses		4,318		3,020		(2,510)	$	(414)		4,414

The following is a summary of inventories at March 31, 2023 and September 30, 2022 (in thousands):

	March 31,		September 30,
	2023		2022
Inventories
Raw materials and purchased parts	$	71,912	$	39,685
Work-in-process		5,065		4,816
Finished goods		73,750		41,043
Total inventories	$	150,727	$	85,544

Reserves related to write downs or adjustments of inventory to net realizable value were $4.1 million and $4.1 million, respectively, at March 31, 2023 and September 30, 2022.

At March 31, 2023 and September 30, 2022, the Company had cumulative capitalized direct costs of $28.7 million and $26.9 million, respectively, associated with the development of software for its internal use. As of March 31, 2023, this balance included $10.2 million associated with software assets that are still in the development stage and not yet placed in service. During the three and six months ended March 31, 2023, the Company capitalized direct costs associated with the development of software for its internal use of $0.7 million and $1.8 million, respectively, as compared to $0.8 million and $1.3 million, respectively, during the corresponding period of the prior fiscal year.

The Company establishes reserves for estimated costs of product warranties based on historical information. Product warranty reserves are recorded at the time product revenue is recognized, and retrofit accruals are recorded at the time retrofit programs are established. The Company’s warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure and supplier warranties on parts delivered to the Company.

The following is a summary of product warranty and retrofit activity on a gross basis for the three and six months ended March 31, 2023 and 2022 (in thousands):

Activity -Three Months Ended March 31, 2023
Balance							Balance
December 31,							March 31,
2022		Adjustments for Acquisitions	Accruals		Costs Incurred		2023
$	5,179	—	$	1,222	$	(1,021)	$	5,380
Activity -Three Months Ended March 31, 2022
Balance							Balance
December 31,							March 31,
2021		Adjustments for Acquisitions	Accruals		Costs Incurred		2022
$	2,342	—	$	539	$	(390)	$	2,491
Activity -Six Months Ended March 31, 2023
Balance							Balance
September 30,							March 31,
2022		Adjustments for Acquisitions	Accruals		Costs Incurred		2023
$	2,890	2,303	$	1,529	$	(1,342)	$	5,380
Activity -Six Months Ended March 31, 2022
Balance							Balance
September 30,							March 31,
2021		Adjustments for Acquisitions	Accruals		Costs Incurred		2022
$	2,330	—	$	1,212	$	(1,051)	$	2,491