GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Mar. 31, 2026

GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]

7. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table summarizes the changes in the carrying amount of goodwill for the years ended March 31, 2026, and March 31, 2025, respectively (in thousands):


		Product		Professional Services		Managed Services		Total
Balance, March 31, 2024 (1)	$	129,108	$	22,497	$	9,898	$	161,503
Acquisitions		30		41,275		-		41,305
Foreign currency translations		39		7		4		50
Balance, March 31, 2025 (1)	$	129,177	$	63,779	$	9,902	$	202,858
Acquisitions		-		-		-		-
Foreign currency translations		17		3		2		22
Balance, March 31, 2026 (1)	$	129,194	$	63,782	$	9,904	$	202,880

(1)

Balance is net of $4,644 thousand in accumulated impairments that were recorded in a segment that preceded our current segment organization.

Goodwill represents the premium paid over the fair value of the net tangible and intangible assets that are individually identified and separately recognized in business combinations.

We test goodwill for impairment on an annual basis, as of the first day of our third fiscal quarter, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value.

In our annual test as of October 1, 2025, we performed a qualitative assessment of goodwill and concluded that, more likely than not, the fair value of our product, professional services, and managed services reporting units continued to exceed their carrying value.

Other Intangible Assets

Our other intangible assets consist of purchased intangible assets and capitalized software development.

The following table provides the composition of our purchased intangible assets as of March 31, 2026, and March 31, 2025 (in thousands):


		March 31, 2026							March 31, 2025
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	165,358	$	(110,708	)	$	54,650	$	167,093	$	(93,085	)	$	74,008
Trade names and other		9,108		(2,414	)		6,694		11,459		(3,500	)		7,959
Total	$	174,466	$	(113,122	)	$	61,344	$	178,552	$	(96,585	)	$	81,967

Our customer relationships, trade names, and other purchased intangibles are generally amortized between 5 to 10 years.

Total amortization expense for purchased intangibles was $20.6 million, $19.9 million, and $15.2 million for the years ended March 31, 2026, 2025 and 2024, respectively.

The following table provides the future amortization expense for purchased intangibles as of March 31, 2026 (in thousands):


Year ending March 31, 2027	$	16,909
2028		13,538
2029		10,379
2030		7,774
2031		5,349
2032 and thereafter		7,395
Total	$	61,344

Our capitalized software development was not significant as of March 31, 2026, and March 31, 2025.