Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v2.4.0.8
Intangible Assets
3 Months Ended
Jun. 30, 2014
Intangible Assets
10. Intangible Assets

Intangibles

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 intangible asset impairment charge for the year ended March 31, 2014 of $154 to write down trade names pursuant to its decision to rename and rebrand the subsidiaries under DT USA to DT EMEA and DT APAC. There were no other indications of impairment present during the periods ended June 30, 2014 and March 31, 2014. In the period ended June 30, 2014, we finalized the purchase price allocation of DT APAC, which resulted in an adjustment to intangibles of $1,472.

The components of intangible assets as at June 30, 2014 and March 31, 2014 were as follows:

 

     As of June 30, 2014  
     Cost      Accumulated
Amortization
    Net  

Software

   $ 4,217       $ (1,580   $ 2,637   

Customer list

     5,055         (692     4,363   

License agreements

     354         (96     258   
  

 

 

    

 

 

   

 

 

 
   $ 9,626       $ (2,368   $ 7,258   
  

 

 

    

 

 

   

 

 

 

 

     As of March 31, 2014  
     Cost      Accumulated
Amortization
    Net  

Software

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

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   

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 three month period ended June 30, 2014 and 2013, the Company recorded amortization expense in the amount of $344 and $403, respectively, in cost of revenues for continuing operations and $0 and $58 for discontinued operations, respectively.

Based on the amortizable intangible assets as of June 30, 2014, we estimate amortization expense for the next five years to be as follows:

 

Year Ending June 30,

   Amortization
Expense
 
     (in thousands)  

2015

   $ 1,377   

2016

     1,377   

2017

     1,366   

2018

     1,086   

2019

     460   

Future

     1,592   
  

 

 

 
   $ 7,258   
  

 

 

 

Below is a summary of intangible assets for the period March 31, 2013 through June 30, 2014:

 

     Intangible
Assets
 

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   
  

 

 

 

Amortization of intangibles

     (344

Purchase price allocation adjustment

     (1,472
  

 

 

 

Balance as of June 30, 2014

   $ 7,258