NEW ACCOUNTING PRONOUNCEMENTS (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Standards Update 2014-09

Summary of Impact of Adoption of ASU 606

The impact of the adoption of 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).

	September 30, 2017
	Three Months Ended						Nine Months Ended
(in thousands, except per share amounts)	Previously   Reported		Adjustments		As Adjusted		Previously   Reported		Adjustments		As Adjusted
Revenue:
Software license	$	41,793	$	11,441	$	53,234	$	195,220	$	36,172	$	231,392
Maintenance		62,204		(392)		61,812		180,759		(810)		179,949
Services		75,818		93		75,911		225,063		(2,542)		222,521
Total revenue		179,815		11,142		190,957		601,042		32,820		633,862
Cost of revenue:
Software license		1,276		—		1,276		3,826		—		3,826
Maintenance		6,716		—		6,716		20,945		—		20,945
Services		61,739		—		61,739		180,925		—		180,925
Total cost of revenue		69,731		—		69,731		205,696		—		205,696
Gross profit		110,084		11,142		121,226		395,346		32,820		428,166
Operating expenses:
Selling and marketing		70,209		(846)		69,363		217,384		(3,140)		214,244
Research and development		41,031		—		41,031		121,089		—		121,089
General and administrative		13,133		—		13,133		38,174		—		38,174
Total operating expenses		124,373		(846)		123,527		376,647		(3,140)		373,507
(Loss) income from operations		(14,289)		11,988		(2,301)		18,699		35,960		54,659
Foreign currency transaction loss		(552)		(4,500)		(5,052)		(793)		(5,756)		(6,549)
Interest income, net		144		(4)		140		470		77		547
Other income, net		—		—		—		287		—		287
(Loss) income before benefit from income taxes		(14,697)		7,484		(7,213)		18,663		30,281		48,944
Benefit from income taxes		(12,885)		4,384		(8,501)		(17,952)		8,943		(9,009)
Net (loss) income	$	(1,812)	$	3,100	$	1,288	$	36,615	$	21,338	$	57,953
(Loss) earnings per share:
Basic	$	(0.03)			$	0.01	$	0.47			$	0.75
Diluted	$	(0.03)			$	0.01	$	0.44			$	0.70
Weighted-average number of common shares outstanding:
Basic		77,691				77,691		77,258				77,258
Diluted		77,691				83,323		82,717				82,717