NEW ACCOUNTING PRONOUNCEMENTS (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Standards Update 2014-09

Summary of Impact of Adoption of ASU 606

The impact of the adoption ASC 606 and ASC 340-40 on the Company’s unaudited condensed consolidated balance sheet and unaudited condensed consolidated statement of operations is:

	December 31, 2017
(in thousands)	Previously reported		Adjustments		As adjusted
Assets
Accounts receivable, unbilled receivables, and contract assets	$	248,331	$	134,216	$	382,547
Long-term unbilled receivables		—		160,708		160,708
Deferred income taxes		57,127		(42,887)		14,240
Deferred contract costs		—		37,924		37,924
Other assets(1)		416,148		—		416,148
Total Assets	$	721,606	$	289,961	$	1,011,567
Liabilities and stockholders’ equity
Deferred revenue	$	195,073	$	(28,776)	$	166,297
Long-term deferred revenue		6,591		(2,885)		3,706
Deferred income tax liabilities		—		38,463		38,463
Other liabilities(2)		148,864		—		148,864
Total liabilities		350,528		6,802		357,330
Foreign currency translation adjustments		(3,494)		(2,966)		(6,460)
Retained earnings		221,926		286,125		508,051
Other equity(3)		152,646		—		152,646
Total stockholders’ equity		371,078		283,159		654,237
Total liabilities and stockholders’ equity	$	721,606	$	289,961	$	1,011,567

⁽¹⁾  Includes cash, cash equivalents, marketable securities, income taxes receivable, other current assets, property and equipment, intangible assets, goodwill, and other long-term assets (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017).

⁽²⁾  Includes accounts payable, accrued expenses, accrued compensation and related expenses, income taxes payable, and other long-term liabilities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017).

⁽³⁾ Includes common stock, additional paid-in capital, and net unrealized loss on available-for-sale marketable securities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017).

	Three months ended June 30, 2017						Six months ended June 30, 2017
(in thousands, except per share amounts)	Previously   Reported		Adjustments		As Adjusted		Previously   Reported		Adjustments		As Adjusted
Revenue:
Software license	$	61,037	$	(9,887)	$	51,150	$	153,427	$	24,731	$	178,158
Maintenance		59,590		(166)		59,424		118,555		(418)		118,137
Services		77,353		(1,331)		76,022		149,245		(2,635)		146,610
Total revenue		197,980		(11,384)		186,596		421,227		21,678		442,905
Cost of revenue:
Software license		1,250		—		1,250		2,550		—		2,550
Maintenance		7,011		—		7,011		14,229		—		14,229
Services		59,614		—		59,614		119,186		—		119,186
Total cost of revenue		67,875		—		67,875		135,965		—		135,965
Gross profit		130,105		(11,384)		118,721		285,262		21,678		306,940
Operating expenses:
Selling and marketing		75,887		(687)		75,200		147,175		(2,294)		144,881
Research and development		39,762		—		39,762		80,058		—		80,058
General and administrative		12,706		—		12,706		25,041		—		25,041
Total operating expenses		128,355		(687)		127,668		252,274		(2,294)		249,980
Income/(loss) from operations		1,750		(10,697)		(8,947)		32,988		23,972		56,960
Foreign currency transaction loss		(917)		(1,325)		(2,242)		(241)		(1,256)		(1,497)
Interest income, net		161		41		202		326		81		407
Other income, net		566		—		566		287		—		287
Income/(loss) before benefit from income taxes		1,560		(11,981)		(10,421)		33,360		22,797		56,157
Benefit from income taxes		(9,846)		(4,277)		(14,123)		(5,067)		4,559		(508)
Net income	$	11,406	$	(7,704)	$	3,702	$	38,427	$	18,238	$	56,665
Earnings per share:
Basic	$	0.15			$	0.05	$	0.50			$	0.74
Diluted	$	0.14			$	0.04	$	0.47			$	0.69
Weighted-average number of common shares outstanding:
Basic		77,313				77,313		77,039				77,039
Diluted		82,945				82,945		82,412				82,412