Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v2.4.1.9
Intangible Assets
9 Months Ended
Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]  
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 December 31, 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.   In the period ended December 31, 2014 intangibles increased by $1,500 for the acquisition of XYO.

 

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

 

 

As of December 31, 2014

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Cost

 

 

Amortization

 

 

Net

 

Software

$

5,718

 

 

$

(2,069

)

 

$

3,650

 

Customer list

 

5,055

 

 

 

(922

)

 

 

4,134

 

License agreements

 

354

 

 

 

(133

)

 

 

220

 

 

$

11,127

 

 

$

(3,123

)

 

$

8,004

 

 

 

As of March 31, 2014

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Cost

 

 

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 nine month period ended December 31, 2014 and 2013, the Company recorded amortization expense in the amount of $1,102 and $1,314, respectively, in cost of revenues for continuing operations and $0 and $174 for discontinued operations, respectively.

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

 

 

Amortization

 

Year Ending December 31,

Expense

 

 

(in thousands)

 

2015

$

1,677

 

2016

 

1,673

 

2017

 

1,622

 

2018

 

976

 

2019

 

692

 

Future

 

1,364

 

 

$

8,004

 

 

 

 

Below is a summary of intangible assets for the period March 31, 2013 through December 31, 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

)

Balance as of March 31, 2014

$

9,074

 

Amortization of intangibles

 

(345

)

Purchase price allocation adjustment

 

(1,472

)

Balance as of June 30, 2014

$

7,257

 

Amortization of intangibles

 

(344

)

Balance as of September 30, 2014

$

6,913

 

Amortization of intangibles

 

(409

)

Acquisition

 

1,500

 

Balance as of December 31, 2014

$

8,004