Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v2.4.0.8
Intangible Assets
12 Months Ended
Mar. 31, 2014
Intangible Assets
10. Intangible Assets

We complete our annual impairment tests in the fourth quarter of each year unless events or circumstances indicate that an asset may be impaired. The Company recorded an impairment charge of $154 to write down trade names pursuant to its decision to rename and rebrand the subsidiaries under DT to DT EMEA and DT APAC. There were no other indications of impairment present during the period ended March 31, 2014. However, the Company recorded an increase in intangible assets for the acquisition of DT APAC of $6,826. The Company did not record an intangible asset impairment charge for the year ended March 31, 2013.

The components of intangible assets as at March 31, 2014 and 2013 were as follows:

 

     As of March 31, 2014  
     Cost      Accumulated
Amortization
    Net  

Software

   $ 6,637       $ (1,369   $ 5,268   

Trade name / trademark

     —           —          —     

Customer list

     4,107         (577     3,530   

License agreements

     354         (78     276   
  

 

 

    

 

 

   

 

 

 
   $ 11,098       $ (2,024   $ 9,074   
  

 

 

    

 

 

   

 

 

 

Discontinued operations

   $ 3,278       $ (3,050   $ 228   

 

     As of March 31, 2013  
     Cost      Accumulated
Amortization
    Net  

Software

   $ 2,429       $ (1,269   $ 1,160   

Trade name / trademark

     297         (16     281   

Customer list

     4,675         (1,407     3,268   

License agreements

     498         (450     48   
  

 

 

    

 

 

   

 

 

 
   $ 7,899       $ (3,142   $ 4,757   
  

 

 

    

 

 

   

 

 

 

Discontinued operations

   $ 3,432       $ (2,847   $ 585   

The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenues. The Company has included amortization of acquired intangible assets not directly attributable to revenue-generating activities in operating expenses.

During the twelve month period ended March 31, 2014 and 2013, the Company recorded amortization expense in the amount of $1,769 and $298, respectively, in cost of revenues for continuing operations and $203 and $232 for discontinued operations, respectively.

Based on the amortizable intangible assets as of March 31, 2014, we estimate amortization expense for the next five years to be as follows:

 

Year Ending March 31,

   Amortization
Expense
 
     (in thousands)  

2015

   $ 1,793   

2016

     1,793   

2017

     1,786   

2018

     1,697   

2019

     443   

Future

     1,582   
  

 

 

 
   $ 9,074   
  

 

 

 

Below is a summary of Intangible assets:

 

     Intangible
Assets
 

Balance as of March 31, 2012

   $ 817   

Acquisition

     4,470   

Impairment

     —    

Amortization of intangibles

   $ (530
  

 

 

 

Balance as of March 31, 2013

   $ 4,757   

Acquisition

     6,826   

Impairment

     (154

Disposal of subsidiary

     (586

Amortization of intangibles

     (1,769

Adjust goodwill for tax

     —    
  

 

 

 

Balance as of March 31, 2014

   $ 9,074