Revenue from Contracts with Customers (Tables)

9 Months Ended

Dec. 31, 2018

Schedule of Revenues Disaggregated by Major Revenue Categories and by Occurrence

The following table presents our revenues disaggregated by our major revenue categories and by occurrence:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2018		2017		2018		2017
Recurring revenues:
Subscription services	$	30,035	$	26,596	$	87,618	$	78,959
Support and maintenance		39,714		40,362		120,556		123,171
Managed services		24,251		28,903		74,048		86,040
Electronic data interchange and data services		23,446		23,136		71,548		69,446
Total recurring revenues		117,446		118,997		353,770		357,616
Software, hardware, and other non-recurring revenues:
Software license and hardware		9,217		7,759		26,013		24,032
Other non-recurring services		4,204		4,959		14,605		13,596
Total software, hardware and other non-recurring revenues		13,421		12,718		40,618		37,628
Total revenues	$	130,867	$	131,715	$	394,388	$	395,244

Adoption of ASC 606

Summary of Impact of Topic 606 on Financial Statements

The adjustments to reflect the cumulative effect of the changes to the balances of our previously reported consolidated balance sheet as of March 31, 2018 for the adoption of ASC 606 are summarized as follows:

	As Reported		ASC 606 Transition			Adjusted
	March 31, 2018		Adjustments			April 1, 2018
ASSETS
Accounts receivable, net	$	84,962	$	2,380		$	87,342
Contract assets		—		13,446			13,446
Prepaid expenses and other current assets		17,180		(223	)		16,957
Deferred income taxes, net		9,219		(2,884	)		6,335
Contract assets, net of current		—		2,731			2,731
Other assets		18,795		6,679			25,474
LIABILITIES
Contract liabilities		54,079		4,174			58,253
Accrued compensation and related benefits		27,910		745			28,655
Other current liabilities		48,317		9,964			58,281
Contract liabilities, net of current		1,173		(1,173	)		—
SHAREHOLDERS' EQUITY
Retained earnings		78,708		8,419			87,127

The impact of the adoption of ASC 606 on our consolidated balance sheet and consolidated statements of net income and comprehensive income as of December 31, 2018 and for the three and nine months ended December 31, 2018, assuming that the previous revenue recognition guidance in ASC 605 had been in effect, is summarized as follows:

	December 31, 2018
	As reported under		Adjustments due to			As disclosed under
	ASC 606		adoption of ASC 606			ASC 605
ASSETS
Accounts receivable, net	$	84,360	$	1,298		$	85,658
Contract assets		11,281		(11,281	)		—
Income taxes receivable		6,061		1,550			7,611
Prepaid expenses and other current assets		18,505		(2,935	)		15,570
Deferred income taxes, net		6,417		2,884			9,301
Contract assets, net of current		3,608		(3,608	)		—
Other assets		29,620		(6,808	)		22,812
LIABILITIES
Contract liabilities		50,449		235			50,684
Accrued compensation and related benefits		24,179		300			24,479
Other current liabilities		41,610		(7,777	)		33,833
Contract liabilities, net of current		—		910			910
SHAREHOLDERS' EQUITY
Retained earnings		107,693		(12,568	)		95,125

	Three Months Ended December 31, 2018
	As reported under			Adjustments due to			As disclosed under
	ASC 606			adoption of ASC 606			ASC 605
Revenues:
Recurring	$	117,446		$	(557	)	$	116,889
Software, hardware, and other non-recurring		13,421			33			13,454
Total revenue		130,867			(524	)		130,343
Total cost of revenue		61,671			36			61,707
Gross profit		69,196			(560	)		68,636
Operating expenses:
Selling, general and administrative		41,304			1,050			42,354
Research and development costs, net		20,682			—			20,682
Amortization of acquired intangibles		1,027			—			1,027
Total operating expenses		63,013			1,050			64,063
Income from operations		6,183			(1,610	)		4,573
Interest and other income, net		(903	)		—			(903	)
Income before provision for income taxes		5,280			(1,610	)		3,670
Provision for income taxes		456			(553	)		(97	)
Net income	$	4,824		$	(1,057	)	$	3,767

	Nine Months Ended December 31, 2018
	As reported under			Adjustments due to			As disclosed under
	ASC 606			adoption of ASC 606			ASC 605
Revenues:
Recurring	$	353,770		$	(663	)	$	353,107
Software, hardware, and other non-recurring		40,618			(704	)		39,914
Total revenue		394,388			(1,367	)		393,021
Total cost of revenue		184,640			130			184,770
Gross profit		209,748			(1,497	)		208,251
Operating expenses:
Selling, general and administrative		120,169			4,202			124,371
Research and development costs, net		61,181			—			61,181
Amortization of acquired intangibles		3,316			—			3,316
Total operating expenses		184,666			4,202			188,868
Income from operations		25,082			(5,699	)		19,383
Interest and other income, net		(1,722	)		—			(1,722	)
Income before provision for income taxes		23,360			(5,699	)		17,661
Provision for income taxes		2,794			(1,550	)		1,244
Net income	$	20,566		$	(4,149	)	$	16,417