Revision of Previously Issued Financial Statements

12 Months Ended

Dec. 31, 2020

Revision of Previously Issued Financial Statements

Revision of Previously Issued Financial Statments

Note 3 – Revision of Previously Issued Financial Statements

We have revised amounts reported in previously issued financial statements for the periods presented in this Annual Report on Form 10-K related to immaterial errors. The errors relate to certain contracts with customers involving term-based software licenses and related maintenance and support services. The net contract assets that originated from a portion of these contracts in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue in prior periods.

We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2019 and 2018, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020.

The following tables present the effects of the aforementioned revisions on our consolidated balance sheet as of December 31, 2019 and our consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the years ended December 31, 2020 and 2019.

Consolidated Balance Sheet

	December 31, 2019
in thousands	As Previously Reported		Adjustments		As Revised
Contract assets	$	7,058	$	(1,818)	$	5,240
Total current assets		211,619		(1,818)		209,801
Contract assets - non-current		3,565		(210)		3,355
Total assets		384,570		(2,028)		382,542
Short-term income taxes payable		7,711		(301)		7,410
Total current liabilities		74,113		(301)		73,812
Total liabilities		120,549		(301)		120,248
Retained earnings		181,167		(1,727)		179,440
Total stockholders' equity		264,021		(1,727)		262,294
Total liabilities and stockholders' equity		384,570		(2,028)		382,542

Consolidated Statements of Operations

	Year Ended December 31, 2019						Year Ended December 31, 2018
in thousands	As Previously Reported		Adjustments		As Revised		As Previously Reported		Adjustments		As Revised
Revenue
Product and license	$	184,173	$	(860)	$	183,313	$	152,977	$	(923)	$	152,054
Services and other		70,397		(226)		70,171		59,303		(21)		59,282
Total revenue		254,570		(1,086)		253,484		212,280		(944)		211,336
Gross Profit		172,608		(1,086)		171,522		147,467		(944)		146,523
Operating income		15,275		(1,086)		14,189		24		(944)		(920)
Income before income taxes		15,495		(1,086)		14,409		3,553		(944)		2,609
Provision for income taxes		6,706		(161)		6,545		(293)		(142)		(435)
Net Income		8,789		(925)		7,864		3,846		(802)		3,044

Consolidated Statements of Comprehensive Loss

	Year Ended December 31, 2019						Year Ended December 31, 2018
in thousands	As Previously Reported		Adjustments		As Revised		As Previously Reported		Adjustments		As Revised
Net income	$	8,789	$	(925)	$	7,864	$	3,846	$	(802)	$	3,044
Comprehensive income (loss)		8,781		(925)		7,856		(873)		(802)		(1,675)

Consolidated Statements of Stockholders’ Equity

	Total Stockholders' Equity
in thousands		As Previously Reported		Adjustments		As Revised
Balance at December 31, 2017		$	237,930	$	N/A	$	N/A
Net income (loss)			3,846		(802)		3,044
Balance at December 31, 2018		$	252,441	$	(802)	$	251,639
Net income (loss)			8,789		(925)		7,864
Balance at December 31, 2019		$	264,021	$	(1,727)	$	262,294

Consolidated Statements of Cash Flows

	Year ended December 31, 2019						Year ended December 31, 2018
in thousands	As Previously Reported		Adjustments		As Revised		As Previously Reported		Adjustments		As Revised
Cash flows from operating activities:
Net income	$	8,789	$	(925)	$	7,864	$	3,846	$	(802)	$	3,044
Changes in operating assets and liabilities:
Contract assets		655		1,085		1,740		(3,110)		943		(2,167)
Income taxes payable		318		(160)		158		(2,541)		(141)		(2,682)
Net cash provided by operating activities		18,244		—		18,244		1,226		—		1,226