x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 34-0907152 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
425 Walnut Street, Suite 1800, Cincinnati, Ohio | 45202 | |||
(Address of principal executive offices) | (ZIP Code) | |||
(770) 810-7800 | ||||
(Registrant’s telephone number, including area code) | ||||
N/A | ||||
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer | ¨ | Accelerated filer | x | |
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Item 1 | Financial Statements | ||
Condensed Consolidated Balance Sheets (Unaudited) - September 30, 2016 and March 31, 2016 | |||
Condensed Consolidated Statements of Operations (Unaudited) - Three and Six Months Ended September 30, 2016 and September 30, 2015 | |||
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - Three and Six Months Ended September 30, 2016 and September 30, 2015 | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended September 30, 2016 and September 30, 2015 | |||
Notes to Condensed Consolidated Financial Statements (Unaudited) | |||
Item 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 3 | Quantitative and Qualitative Disclosures About Market Risk | ||
Item 4 | Controls and Procedures | ||
Part II. Other Information | |||
Item 1 | Legal Proceedings | ||
Item 1A | Risk Factors | ||
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 3 | Defaults Upon Senior Securities | ||
Item 4 | Mine Safety Disclosures | ||
Item 5 | Other Information | ||
Item 6 | Exhibits | ||
Signatures |
September 30, 2016 | March 31, 2016 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 51,629 | $ | 60,608 | |||
Accounts receivable, net of allowance for doubtful accounts of $492 and $617, respectively | 16,139 | 22,017 | |||||
Inventories | 2,317 | 2,692 | |||||
Prepaid expenses and other current assets | 8,992 | 10,184 | |||||
Total current assets | 79,077 | 95,501 | |||||
Property and equipment, net | 14,001 | 14,197 | |||||
Goodwill | 19,622 | 19,622 | |||||
Intangible assets, net | 8,553 | 8,576 | |||||
Software development costs, net | 47,469 | 44,215 | |||||
Other non-current assets | 2,643 | 3,046 | |||||
Total assets | $ | 171,365 | $ | 185,157 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 9,250 | $ | 7,761 | |||
Deferred revenue | 25,412 | 33,241 | |||||
Accrued liabilities | 9,545 | 12,980 | |||||
Capital lease obligations, current | 120 | 118 | |||||
Total current liabilities | 44,327 | 54,100 | |||||
Deferred income taxes, non-current | 3,184 | 3,075 | |||||
Capital lease obligations, non-current | 165 | 215 | |||||
Other non-current liabilities | 4,182 | 4,294 | |||||
Commitments and contingencies (see Note 7) | |||||||
Shareholders' equity: | |||||||
Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 31,606,831 shares issued; and 23,152,224 and 22,942,586 shares outstanding at September 30, 2016 and March 31, 2016, respectively | 9,482 | 9,482 | |||||
Treasury shares, 8,454,607 and 8,664,245 at September 30, 2016 and March 31, 2016, respectively | (2,537 | ) | (2,600 | ) | |||
Capital in excess of stated value | (6,970 | ) | (7,645 | ) | |||
Retained earnings | 119,716 | 124,413 | |||||
Accumulated other comprehensive loss | (184 | ) | (177 | ) | |||
Total shareholders' equity | 119,507 | 123,473 | |||||
Total liabilities and shareholders' equity | $ | 171,365 | $ | 185,157 |
Three months ended | Six months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(In thousands, except share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net revenue: | |||||||||||||||
Products | $ | 10,731 | $ | 9,943 | $ | 20,251 | $ | 18,754 | |||||||
Support, maintenance and subscription services | 15,906 | 14,665 | 30,854 | 29,564 | |||||||||||
Professional services | 6,039 | 5,036 | 12,524 | 8,817 | |||||||||||
Total net revenue | 32,676 | 29,644 | 63,629 | 57,135 | |||||||||||
Cost of goods sold: | |||||||||||||||
Products (inclusive of developed technology amortization) | 8,155 | 5,122 | 14,687 | 10,044 | |||||||||||
Support, maintenance and subscription services | 4,394 | 3,842 | 8,250 | 7,337 | |||||||||||
Professional services | 4,248 | 3,089 | 8,622 | 5,765 | |||||||||||
Total cost of goods sold | 16,797 | 12,053 | 31,559 | 23,146 | |||||||||||
Gross profit | 15,879 | 17,591 | 32,070 | 33,989 | |||||||||||
48.6 | % | 59.3 | % | 50.4 | % | 59.5 | % | ||||||||
Operating expenses: | |||||||||||||||
Product development | 6,946 | 6,784 | 13,799 | 13,052 | |||||||||||
Sales and marketing | 5,113 | 5,315 | 10,748 | 9,775 | |||||||||||
General and administrative | 5,140 | 5,202 | 10,014 | 10,380 | |||||||||||
Depreciation of fixed assets | 595 | 541 | 1,193 | 1,059 | |||||||||||
Amortization of intangibles | 342 | 318 | 678 | 616 | |||||||||||
Restructuring, severance and other charges | — | (15 | ) | 89 | (62 | ) | |||||||||
Asset write-offs and other fair value adjustments | — | (175 | ) | — | (175 | ) | |||||||||
Legal settlements | 85 | — | 85 | — | |||||||||||
Operating loss | (2,342 | ) | (379 | ) | (4,536 | ) | (656 | ) | |||||||
Other (income) expense: | |||||||||||||||
Interest income | (16 | ) | (4 | ) | (49 | ) | (48 | ) | |||||||
Interest expense | 4 | 5 | 8 | 13 | |||||||||||
Other (income) expense, net | (12 | ) | 9 | 78 | (23 | ) | |||||||||
Loss before taxes | (2,318 | ) | (389 | ) | (4,573 | ) | (598 | ) | |||||||
Income tax expense (benefit) | 82 | (19 | ) | 124 | (44 | ) | |||||||||
Net loss | $ | (2,400 | ) | $ | (370 | ) | $ | (4,697 | ) | $ | (554 | ) | |||
Weighted average shares outstanding | 22,606 | 22,476 | 22,603 | 22,472 | |||||||||||
Loss per share - basic and diluted: | |||||||||||||||
Loss per share | $ | (0.11 | ) | $ | (0.02 | ) | $ | (0.21 | ) | $ | (0.02 | ) | |||
Three months ended | Six months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(In thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net loss | $ | (2,400 | ) | $ | (370 | ) | $ | (4,697 | ) | $ | (554 | ) | |||
Other comprehensive loss, net of tax: | |||||||||||||||
Unrealized foreign currency translation adjustments | 1 | (8 | ) | (7 | ) | (18 | ) | ||||||||
Total comprehensive loss | $ | (2,399 | ) | $ | (378 | ) | $ | (4,704 | ) | $ | (572 | ) |
Six months ended | |||||||
September 30, | |||||||
(In thousands) | 2016 | 2015 | |||||
Operating activities | |||||||
Net loss | $ | (4,697 | ) | $ | (554 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities | |||||||
Net restructuring, severance and other charges | (286 | ) | (443 | ) | |||
Net legal settlements | (15 | ) | — | ||||
Depreciation | 1,193 | 1,059 | |||||
Amortization | 678 | 616 | |||||
Amortization of developed technology | 3,399 | 511 | |||||
Deferred income taxes | 110 | 76 | |||||
Share-based compensation | 841 | 1,400 | |||||
Asset write-offs and other fair value adjustments | — | (175 | ) | ||||
Change in cash surrender value of company owned life insurance policies | (10 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 5,862 | 8,398 | |||||
Inventories | 371 | (583 | ) | ||||
Prepaid expense | 534 | 119 | |||||
Accounts payable | 1,284 | (7,110 | ) | ||||
Deferred revenue | (6,765 | ) | (5,748 | ) | |||
Accrued liabilities | (2,525 | ) | 2,582 | ||||
Income taxes payable | (33 | ) | (59 | ) | |||
Other changes, net | (125 | ) | (313 | ) | |||
Net cash used in operating activities | (184 | ) | (224 | ) | |||
Investing activities | |||||||
Capital expenditures | (1,487 | ) | (2,280 | ) | |||
Capitalized software development costs | (6,609 | ) | (9,931 | ) | |||
Investments in corporate-owned life insurance policies | (1 | ) | (21 | ) | |||
Net cash used in investing activities | (8,097 | ) | (12,232 | ) | |||
Financing activities | |||||||
Payments to settle contingent consideration arising from business acquisition | (197 | ) | — | ||||
Repurchase of common shares to satisfy employee tax withholding | (404 | ) | (435 | ) | |||
Principal payments under long-term obligations | (56 | ) | (20 | ) | |||
Net cash used in financing activities | (657 | ) | (455 | ) | |||
Effect of exchange rate changes on cash | (41 | ) | (55 | ) | |||
Net decrease in cash and cash equivalents | (8,979 | ) | (12,966 | ) | |||
Cash and cash equivalents at beginning of period | $ | 60,608 | $ | 75,067 | |||
Cash and cash equivalents at end of period | $ | 51,629 | $ | 62,101 | |||
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING ACTIVITIES: | |||||||
Accrued capital expenditures | $ | 223 | $ | 369 | |||
Accrued capitalized software development costs | 1,003 | 938 | |||||
Leasehold improvements acquired under lease arrangement | — | 997 |
Balance at | Balance at | ||||||||||||||
March 31, | Provision / | September 30, | |||||||||||||
(In thousands) | 2016 | Adjustments | Payments | 2016 | |||||||||||
Fiscal 2016 Restructuring Plan: | |||||||||||||||
Severance and other employment costs | $ | 311 | $ | — | $ | (294 | ) | $ | 17 | ||||||
Total restructuring costs | $ | 311 | $ | — | $ | (294 | ) | $ | 17 |
September 30, 2016 | March 31, 2016 | ||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||
carrying | Accumulated | carrying | carrying | Accumulated | carrying | ||||||||||||||
(In thousands) | amount | amortization | amount | amount | amortization | amount | |||||||||||||
Amortized intangible assets: | |||||||||||||||||||
Customer relationships | $ | 10,775 | $ | (10,775 | ) | $ | — | $ | 10,775 | $ | (10,775 | ) | $ | — | |||||
Non-competition agreements | 2,700 | (2,700 | ) | — | 2,700 | (2,700 | ) | — | |||||||||||
Developed technology | 10,317 | (10,055 | ) | 262 | 10,660 | (10,398 | ) | 262 | |||||||||||
Accumulated impairment | (262 | ) | N/A | (262 | ) | (262 | ) | N/A | (262 | ) | |||||||||
Trade names | 230 | (77 | ) | 153 | 230 | (54 | ) | 176 | |||||||||||
Patented technology | 80 | (80 | ) | — | 80 | (80 | ) | — | |||||||||||
23,840 | (23,687 | ) | 153 | 24,183 | (24,007 | ) | 176 | ||||||||||||
Unamortized intangible assets: | |||||||||||||||||||
Trade names | 9,200 | N/A | 9,200 | 9,200 | N/A | 9,200 | |||||||||||||
Accumulated impairment | (570 | ) | N/A | (570 | ) | (570 | ) | N/A | (570 | ) | |||||||||
Finite life reclassification | (230 | ) | N/A | (230 | ) | (230 | ) | N/A | (230 | ) | |||||||||
8,400 | N/A | 8,400 | 8,400 | N/A | 8,400 | ||||||||||||||
Total intangible assets | $ | 32,240 | $ | (23,687 | ) | $ | 8,553 | $ | 32,583 | $ | (24,007 | ) | $ | 8,576 | |||||
Software development costs | $ | 47,989 | $ | (5,743 | ) | $ | 42,246 | $ | 6,359 | $ | (2,344 | ) | $ | 4,015 | |||||
Project expenditures not yet in use | 6,614 | — | 6,614 | 41,591 | — | 41,591 | |||||||||||||
Accumulated impairment | (1,391 | ) | N/A | (1,391 | ) | (1,391 | ) | N/A | (1,391 | ) | |||||||||
Total software development costs | $ | 53,212 | $ | (5,743 | ) | $ | 47,469 | $ | 46,559 | $ | (2,344 | ) | $ | 44,215 |
Estimated | |||
Amortization | |||
(In thousands) | Expense | ||
Fiscal year ending March 31, | |||
2017 | $ | 4,635 | |
2018 | 9,272 | ||
2019 | 9,150 | ||
2020 | 8,411 | ||
2021 | 8,326 | ||
2022 | 1,214 | ||
Total | $ | 41,008 |
(In thousands) | September 30, 2016 | March 31, 2016 | |||||
Accrued liabilities: | |||||||
Salaries, wages, and related benefits | $ | 7,212 | $ | 9,751 | |||
Other taxes payable | 537 | 818 | |||||
Accrued legal settlements | 85 | 100 | |||||
Restructuring liabilities | 17 | 311 | |||||
Severance liabilities | 14 | 6 | |||||
Professional fees | 693 | 714 | |||||
Deferred rent | 422 | 400 | |||||
Contingent consideration | — | 197 | |||||
Other | 565 | 683 | |||||
Total | $ | 9,545 | $ | 12,980 | |||
Other non-current liabilities: | |||||||
Uncertain tax positions | $ | 1,491 | $ | 1,469 | |||
Deferred rent | 2,615 | 2,746 | |||||
Other | 76 | 79 | |||||
Total | $ | 4,182 | $ | 4,294 |
Three months ended | Six months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Income tax expense (benefit) | $ | 82 | $ | (19 | ) | $ | 124 | $ | (44 | ) | |||||
Effective tax rate | (3.5 | )% | 4.9 | % | (2.7 | )% | 7.4 | % |
Three months ended | Six months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(In thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Numerator: | |||||||||||||||
Net loss | $ | (2,400 | ) | $ | (370 | ) | $ | (4,697 | ) | $ | (554 | ) | |||
Denominator: | |||||||||||||||
Weighted average shares outstanding | 22,606 | 22,476 | 22,603 | 22,472 | |||||||||||
Loss per share - basic and diluted: | |||||||||||||||
Loss per share | $ | (0.11 | ) | $ | (0.02 | ) | $ | (0.21 | ) | $ | (0.02 | ) | |||
Anti-dilutive stock options, SSARs, restricted shares and performance shares | 1,291 | 1,725 | 1,363 | 1,547 |
Three months ended | Six months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(In thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Product development | $ | 200 | $ | 320 | $ | 328 | $ | 476 | |||||||
Sales and marketing | 32 | 35 | 53 | (8 | ) | ||||||||||
General and administrative | 262 | 641 | 460 | 932 | |||||||||||
Total share-based compensation expense | 494 | 996 | 841 | 1,400 |
Number of Options | Weighted- Average Exercise Price | Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(In thousands, except share and per share data) | (per share) | (in years) | |||||||||||
Outstanding at April 1, 2016 | 545,000 | $ | 15.54 | ||||||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Cancelled/expired | (545,000 | ) | 15.54 | ||||||||||
Outstanding and exercisable at September 30, 2016 | — | $ | — | — | $ | — |
Number of Rights | Weighted- Average Exercise Price | Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
(In thousands, except share and per share data) | (per right) | (in years) | ||||||||||
Outstanding at April 1, 2016 | 794,365 | $ | 10.06 | |||||||||
Granted | 64,231 | 10.47 | ||||||||||
Exercised | (324 | ) | 9.60 | |||||||||
Forfeited | (7,147 | ) | 9.60 | |||||||||
Cancelled/expired | (4,149 | ) | 9.60 | |||||||||
Outstanding at September 30, 2016 | 846,976 | $ | 10.09 | 4.8 | $ | 1,340 | ||||||
Exercisable at September 30, 2016 | 473,126 | $ | 10.15 | 4.0 | $ | 811 |
Number of Shares | Weighted- Average Grant- Date Fair Value | |||||
(In thousands, except share and per share data) | (per share) | |||||
Outstanding at April 1, 2016 | 335,773 | $ | 12.06 | |||
Granted | 157,828 | 10.87 | ||||
Vested | (9,250 | ) | 13.51 | |||
Forfeited | (4,046 | ) | 11.10 | |||
Outstanding at September 30, 2016 | 480,305 | $ | 11.65 |
Number of Shares | Weighted- Average Grant- Date Fair Value | |||||
(per share) | ||||||
Outstanding at April 1, 2016 | 7,812 | $ | 9.60 | |||
Granted | — | — | ||||
Vested | (7,812 | ) | 9.60 | |||
Outstanding at September 30, 2016 | — | $ | — |
Fair value measurement used | |||||||||||||
Recorded value as of | Active markets for identical assets or liabilities | Quoted prices in similar instruments and observable inputs | Active markets for unobservable inputs | ||||||||||
(In thousands) | September 30, 2016 | (Level 1) | (Level 2) | (Level 3) | |||||||||
Assets: | |||||||||||||
Corporate-owned life insurance — current | $ | 2,357 | — | — | $ | 2,357 | |||||||
Corporate-owned life insurance — non-current | $ | 776 | — | — | $ | 776 |
Fair value measurement used | |||||||||||||
Recorded value as of | Active markets for identical assets or liabilities | Quoted prices in similar instruments and observable inputs | Active markets for unobservable inputs | ||||||||||
(In thousands) | March 31, 2016 | (Level 1) | (Level 2) | (Level 3) | |||||||||
Assets: | |||||||||||||
Corporate-owned life insurance — current | $ | 2,357 | — | — | $ | 2,357 | |||||||
Corporate-owned life insurance — non-current | $ | 765 | — | — | $ | 765 | |||||||
Liabilities: | |||||||||||||
Contingent consideration — current | $ | 197 | — | — | $ | 197 |
Six months ended | |||||||
September 30, | |||||||
(In thousands) | 2016 | 2015 | |||||
Corporate-owned life insurance: | |||||||
Balance on April 1 | $ | 3,122 | $ | 2,493 | |||
Unrealized gain (loss) relating to instruments held at reporting date | 10 | 28 | |||||
Purchases, sales, issuances and settlements, net | 1 | 21 | |||||
Balance on September 30 | $ | 3,133 | $ | 2,542 |
Six months ended | |||||||
September 30, | |||||||
(In thousands) | 2016 | 2015 | |||||
Contingent consideration | |||||||
Balance on April 1 | $ | 197 | $ | 112 | |||
Activity, payments and other charges (net) | (197 | ) | (8 | ) | |||
Balance on September 30 | $ | — | $ | 104 | |||
• | Growing sales of our proprietary offerings: products, support, maintenance and subscription services and professional services. |
• | Products revenue – Revenue earned from the sales of hardware equipment and proprietary and remarketed software. |
• | Support, maintenance and subscription services revenue – Revenue earned from the sale of proprietary and remarketed ongoing support, maintenance and subscription or hosting services. |
• | Professional services revenue – Revenue earned from the delivery of implementation, integration and installation services for proprietary and remarketed products. |
Three months ended | ||||||||||||||
September 30, | Increase (decrease) | |||||||||||||
(Dollars in thousands) | 2016 | 2015 | $ | % | ||||||||||
Net revenue: | ||||||||||||||
Products | $ | 10,731 | $ | 9,943 | $ | 788 | 7.9 | % | ||||||
Support, maintenance and subscription services | 15,906 | 14,665 | 1,241 | 8.5 | % | |||||||||
Professional services | 6,039 | 5,036 | 1,003 | 19.9 | % | |||||||||
Total net revenue | 32,676 | 29,644 | 3,032 | 10.2 | % | |||||||||
Cost of goods sold: | ||||||||||||||
Products (inclusive of developed technology amortization) | 8,155 | 5,122 | 3,033 | 59.2 | % | |||||||||
Support, maintenance and subscription services | 4,394 | 3,842 | 552 | 14.4 | % | |||||||||
Professional services | 4,248 | 3,089 | 1,159 | 37.5 | % | |||||||||
Total cost of goods sold | 16,797 | 12,053 | 4,744 | 39.4 | % | |||||||||
Gross profit | 15,879 | 17,591 | (1,712 | ) | (9.7 | )% | ||||||||
Gross profit margin | 48.6 | % | 59.3 | % | ||||||||||
Operating expenses: | ||||||||||||||
Product development | 6,946 | 6,784 | 162 | 2.4 | % | |||||||||
Sales and marketing | 5,113 | 5,315 | (202 | ) | (3.8 | )% | ||||||||
General and administrative | 5,140 | 5,202 | (62 | ) | (1.2 | )% | ||||||||
Depreciation of fixed assets | 595 | 541 | 54 | 10.0 | % | |||||||||
Amortization of intangibles | 342 | 318 | 24 | 7.5 | % | |||||||||
Restructuring, severance and other charges | — | (15 | ) | 15 | nm | |||||||||
Asset write-offs and other fair value adjustments | — | (175 | ) | 175 | nm | |||||||||
Legal settlements | 85 | — | 85 | nm | ||||||||||
Operating loss | $ | (2,342 | ) | $ | (379 | ) | $ | (1,963 | ) | nm | ||||
Operating loss percentage | (7.2 | )% | (1.3 | )% |
Three months ended | |||||
September 30, | |||||
2016 | 2015 | ||||
Net revenue: | |||||
Products | 32.8 | % | 33.5 | % | |
Support, maintenance and subscription services | 48.7 | 49.5 | |||
Professional services | 18.5 | 17.0 | |||
Total | 100.0 | % | 100.0 | % | |
Cost of goods sold: | |||||
Products (inclusive of developed technology amortization) | 25.0 | 17.3 | |||
Support, maintenance and subscription services | 13.4 | 13.0 | |||
Professional services | 13.0 | 10.4 | |||
Total | 51.4 | % | 40.7 | % | |
Gross profit | 48.6 | % | 59.3 | % | |
Operating expenses: | |||||
Product development | 21.3 | 22.9 | |||
Sales and marketing | 15.6 | 17.9 | |||
General and administrative | 15.7 | 17.5 | |||
Depreciation of fixed assets | 1.8 | 1.8 | |||
Amortization of intangibles | 1.0 | 1.1 | |||
Restructuring, severance and other charges | — | (0.1 | ) | ||
Asset write-offs and other fair value adjustments | — | (0.6 | ) | ||
Legal settlements | 0.3 | — | |||
Operating loss | (7.2 | )% | (1.3 | )% |
Three months ended | ||||||||||||||
September 30, | (Unfavorable) favorable | |||||||||||||
(Dollars in thousands) | 2016 | 2015 | $ | % | ||||||||||
Other (income) expense: | ||||||||||||||
Interest income | $ | (16 | ) | $ | (4 | ) | $ | 12 | 300.0 | % | ||||
Interest expense | 4 | 5 | 1 | 20.0 | % | |||||||||
Other (income) expense, net | (12 | ) | 9 | 21 | nm | |||||||||
Total other (income) expense, net | $ | (24 | ) | $ | 10 | $ | 34 | 340.0 | % |
Three months ended | |||||||||||||
September 30, | (Unfavorable) favorable | ||||||||||||
(Dollars in thousands) | 2016 | 2015 | $ | % | |||||||||
Income tax expense (benefit) | $ | 82 | $ | (19 | ) | $ | (101 | ) | nm | ||||
Effective tax rate | (3.5 | )% | 4.9 | % |
Six months ended | ||||||||||||||
September 30, | Increase (decrease) | |||||||||||||
(Dollars in thousands) | 2016 | 2015 | $ | % | ||||||||||
Net revenue: | ||||||||||||||
Products | $ | 20,251 | $ | 18,754 | 1,497 | 8.0 | % | |||||||
Support, maintenance and subscription services | 30,854 | 29,564 | 1,290 | 4.4 | % | |||||||||
Professional services | 12,524 | 8,817 | 3,707 | 42.0 | % | |||||||||
Total net revenue | 63,629 | 57,135 | 6,494 | 11.4 | % | |||||||||
Cost of goods sold: | ||||||||||||||
Products (inclusive of developed technology amortization) | 14,687 | 10,044 | 4,643 | 46.2 | % | |||||||||
Support, maintenance and subscription services | 8,250 | 7,337 | 913 | 12.4 | % | |||||||||
Professional services | 8,622 | 5,765 | 2,857 | 49.6 | % | |||||||||
Total cost of goods sold | 31,559 | 23,146 | 8,413 | 36.3 | % | |||||||||
Gross profit | 32,070 | 33,989 | (1,919 | ) | (5.6 | )% | ||||||||
Gross profit margin | 50.4 | % | 59.5 | % | ||||||||||
Operating expenses: | ||||||||||||||
Product development | 13,799 | 13,052 | 747 | 5.7 | % | |||||||||
Sales and marketing | 10,748 | 9,775 | 973 | 10.0 | % | |||||||||
General and administrative | 10,014 | 10,380 | (366 | ) | (3.5 | )% | ||||||||
Depreciation of fixed assets | 1,193 | 1,059 | 134 | 12.7 | % | |||||||||
Amortization of intangibles | 678 | 616 | 62 | 10.1 | % | |||||||||
Restructuring, severance and other charges | 89 | (62 | ) | 151 | nm | |||||||||
Asset write-offs and other fair value adjustments | — | (175 | ) | 175 | nm | |||||||||
Legal settlements | 85 | — | 85 | nm | ||||||||||
Operating loss | $ | (4,536 | ) | $ | (656 | ) | $ | (3,880 | ) | nm | ||||
Operating loss percentage | (7.1 | )% | (1.1 | )% |
Six months ended | |||||
September 30, | |||||
2016 | 2015 | ||||
Net revenue: | |||||
Products | 31.8 | % | 32.8 | % | |
Support, maintenance and subscription services | 48.5 | 51.8 | |||
Professional services | 19.7 | 15.4 | |||
Total | 100.0 | % | 100.0 | % | |
Cost of goods sold: | |||||
Products (inclusive of developed technology amortization) | 23.1 | 17.6 | |||
Support, maintenance and subscription services | 12.9 | 12.8 | |||
Professional services | 13.6 | 10.1 | |||
Total | 49.6 | % | 40.5 | % | |
Gross profit | 50.4 | % | 59.5 | % | |
Operating expenses: | |||||
Product development | 21.7 | 22.8 | |||
Sales and marketing | 16.9 | 17.1 | |||
General and administrative | 15.7 | 18.2 | |||
Depreciation of fixed assets | 1.9 | 1.9 | |||
Amortization of intangibles | 1.1 | 1.1 | |||
Restructuring, severance and other charges | 0.1 | (0.1 | ) | ||
Asset write-offs and other fair value adjustments | — | (0.3 | ) | ||
Legal settlements | 0.1 | — | |||
Operating loss | (7.1 | )% | (1.1 | )% |
Six months ended | ||||||||||||||
September 30, | (Unfavorable) favorable | |||||||||||||
(Dollars in thousands) | 2016 | 2015 | $ | % | ||||||||||
Other (income) expense: | ||||||||||||||
Interest income | $ | (49 | ) | $ | (48 | ) | $ | 1 | (2.1 | )% | ||||
Interest expense | 8 | 13 | $ | 5 | 38.5 | % | ||||||||
Other (income) expense, net | 78 | (23 | ) | (101 | ) | nm | ||||||||
Total other expense (income), net | $ | 37 | $ | (58 | ) | $ | (95 | ) | nm |
Six months ended | |||||||||||||
September 30, | (Unfavorable) favorable | ||||||||||||
(Dollars in thousands) | 2016 | 2015 | $ | % | |||||||||
Income tax expense (benefit) | $ | 124 | $ | (44 | ) | $ | (168 | ) | nm | ||||
Effective tax rate | (2.7 | )% | 7.4 | % |
Six months ended | |||||||
September 30, | |||||||
(In thousands) | 2016 | 2015 | |||||
Net cash used in: | |||||||
Operating activities | $ | (184 | ) | $ | (224 | ) | |
Investing activities | (8,097 | ) | (12,232 | ) | |||
Financing activities | $ | (657 | ) | $ | (455 | ) | |
Effect of exchange rate changes on cash | (41 | ) | (55 | ) | |||
Net decrease in cash and cash equivalents | $ | (8,979 | ) | $ | (12,966 | ) |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002. |
101 | The following materials from our quarterly report on Form 10-Q for the quarter ended September 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at September 30, 2016 and March 31, 2016, (ii) Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2016 and 2015, (iii) Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and six months ended September 30, 2016 and 2015, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2016 and 2015, and (v) Notes to Condensed Consolidated Financial Statements for the three and six months ended September 30, 2016. |
Date: | November 9, 2016 | /s/ Janine K. Seebeck |
Janine K. Seebeck | ||
Senior Vice President, Chief Financial Officer and Treasurer | ||
(Principal Accounting Officer and Duly Authorized Officer) |
By: | /s/ James H. Dennedy |
James H. Dennedy | |
President and Chief Executive Officer |
By: | /s/ Janine K. Seebeck |
Janine K. Seebeck | |
Senior Vice President, Chief Financial Officer, | |
and Treasurer |
1. | The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2016 (the “Report”) fully complies (1) with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ James H. Dennedy |
James H. Dennedy | |
President and Chief Executive Officer |
1. | The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2016 (the “Report”) fully complies (1) with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ Janine K. Seebeck |
Janine K. Seebeck | |
Senior Vice President, Chief Financial Officer, | |
and Treasurer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Nov. 04, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AGILYSYS INC | |
Entity Central Index Key | 0000078749 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 23,398,724 |
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Mar. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable | $ 492 | $ 617 |
Accounts Receivable, Net, Current | $ 16,139 | $ 22,017 |
Common stock, stated value | $ 0.30 | $ 0.30 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 31,606,831 | 31,606,831 |
Common stock, shares outstanding | 23,152,224 | 22,942,586 |
Treasury shares | 8,454,607 | 8,664,245 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Net revenue: | ||||
Products | $ 10,731 | $ 9,943 | $ 20,251 | $ 18,754 |
Support, maintenance and subscription services | 15,906 | 14,665 | 30,854 | 29,564 |
Professional services | 6,039 | 5,036 | 12,524 | 8,817 |
Total net revenue | 32,676 | 29,644 | 63,629 | 57,135 |
Cost of goods sold: | ||||
Products (inclusive of developed technology amortization) | 8,155 | 5,122 | 14,687 | 10,044 |
Support, maintenance and subscription services | 4,394 | 3,842 | 8,250 | 7,337 |
Professional services | 4,248 | 3,089 | 8,622 | 5,765 |
Total cost of goods sold | 16,797 | 12,053 | 31,559 | 23,146 |
Gross profit | $ 15,879 | $ 17,591 | $ 32,070 | $ 33,989 |
Gross Profit Ratio | 48.60% | 59.30% | 50.40% | 59.50% |
Operating expenses: | ||||
Product development | $ 6,946 | $ 6,784 | $ 13,799 | $ 13,052 |
Sales and marketing | 5,113 | 5,315 | 10,748 | 9,775 |
General and administrative | 5,140 | 5,202 | 10,014 | 10,380 |
Depreciation of fixed assets | 595 | 541 | 1,193 | 1,059 |
Amortization of intangibles | 342 | 318 | 678 | 616 |
Restructuring, severance and other charges | 0 | (15) | 89 | (62) |
Asset Impairment Charges | 0 | (175) | 0 | (175) |
Litigation Settlement, Expense | 85 | 0 | 85 | 0 |
Operating loss | (2,342) | (379) | (4,536) | (656) |
Other (income) expense: | ||||
Interest income | (16) | (4) | (49) | (48) |
Interest expense | 4 | 5 | 8 | 13 |
Other expense (income), net | (12) | 9 | 78 | (23) |
Loss before taxes | (2,318) | (389) | (4,573) | (598) |
Income tax expense (benefit) | 82 | (19) | 124 | (44) |
Net loss | $ (2,400) | $ (370) | $ (4,697) | $ (554) |
Weighted Average Number of Shares Outstanding, Basic | 22,606 | 22,476 | 22,603 | 22,472 |
Weighted average shares outstanding: | ||||
Earnings Per Share, Basic | $ (0.11) | $ (0.02) | $ (0.21) | $ (0.02) |
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (2,400) | $ (370) | $ (4,697) | $ (554) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (2,400) | (370) | (4,697) | (554) |
Other comprehensive loss, net of tax: | ||||
Unrealized foreign currency translation adjustments | 1 | (8) | (7) | (18) |
Total comprehensive loss | $ (2,399) | $ (378) | $ (4,704) | $ (572) |
Nature of Operations and Financial Statement Presentation |
6 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Financial Statement Presentation | Nature of Operations and Financial Statement Presentation Nature of Operations Agilysys is a leading technology company that provides innovative software for point-of-sale (POS), property management (PMS), inventory and procurement, workforce management, analytics, document management and mobile and wireless solutions and services to the hospitality industry. Our solutions and services allow property managers to better connect, interact and transact with their customers and enhance their customer relationships by streamlining operations, improving efficiency, increasing guest recruitment and wallet share, and enhancing the overall guest experience. We serve four major market sectors: Gaming, both corporate and tribal; Hotels, Resorts and Cruise; Foodservice Management; and Restaurants, Universities, Stadia and Healthcare. A significant portion of our consolidated revenue is derived from contract support, maintenance and subscription services. We operate throughout North America, Europe and Asia, with corporate services located in Alpharetta, GA. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include our accounts consolidated with our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Our fiscal year ends on March 31st. References to a particular year refer to the fiscal year ending in March of that year. For example, fiscal 2017 refers to the fiscal year ending March 31, 2017. Our unaudited interim financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to the Quarterly Report on Form 10-Q (Quarterly Report) under the Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 10-01 of Regulation S-X under the Exchange Act. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations relating to interim financial statements. The Condensed Consolidated Balance Sheet as of September 30, 2016, as well as the Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Loss, and the Condensed Consolidated Statements of Cash Flow for the three and six months ended September 30, 2016 and 2015, are unaudited. However, these financial statements have been prepared on the same basis as those in the audited annual financial statements. In the opinion of management, all adjustments of a recurring nature necessary to fairly state the results of operations, financial position, and cash flows have been made. These unaudited interim financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended March 31, 2016, filed with the Securities and Exchange Commission (SEC) on June 10, 2016. Correction of Errors In connection with the preparation of our Condensed Consolidated Financial Statements for the second quarter of fiscal 2016, we identified errors in the manner in which we recognized revenue on contract support. Contract support revenue is recognized ratably over the term of the customer arrangement. In certain instances where contract support is an element of a multiple-element arrangement, we use a hierarchy to determine the fair value allocation for recognition of revenue on each deliverable. An error related to an input used in this allocation resulted in the overstatement of contract, maintenance, and support revenue of $0.4 million for the three months ended June 30, 2015. The error was identified and corrected during the second quarter of fiscal 2016. Additionally, during the second quarter of fiscal 2016, we identified errors in the manner in which we capitalize internal labor on software development projects. An error in the method by which internal resources account for administrative time resulted in the over capitalization of costs during the last six months of fiscal 2015 and the first three months of fiscal 2016. The error for each of the three months ended December 31, 2014, March 31, 2015, and June 30, 2015, was $0.1 million. We corrected these errors during the second quarter of fiscal 2016. In accordance with accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 99, Materiality), we assessed the materiality of the errors and concluded that the errors were not material to any of our previously issued financial statements. Correction of the errors is also not material to the three and six months ended September 30, 2015 or fiscal 2016 results. |
Summary of Significant Accounting Policies |
6 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A detailed description of our significant accounting policies can be found in the audited financial statements for the fiscal year ended March 31, 2016, included in our Annual Report on Form 10-K. There have been no material changes to our significant accounting policies and estimates from those disclosed therein. Adopted and Recently Issued Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 clarifies the classification of receipts and payments in the statement of cash flows. ASU 2016-15 provides guidance related to (1) debt prepayment or debt extinguishment costs, (2) settlement and payment of zero coupon debt instruments, (3) contingent consideration, (4) proceeds from settlement of insurance claims, (5) proceeds from settlement of corporate and bank owned life insurance policies, (6) distributions from equity method investees, (7) cash receipts from beneficial interests obtained by a transferor, and (8) general guidelines for cash receipts and payments that have more than one aspect of classification. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, including interim periods. Early adoption is permitted. We are evaluating the impact the adopting this guidance will have on future financial statements and disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this update involve several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards, and classification on the statement of cash flows. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers. The amendments in this update clarify the implementation guidance on principals versus agent considerations in FASB ASC 606. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of ASU 2014-09 described below. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The amendments in this update include a new FASB ASC Topic 842, which supersedes Topic 840. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities as of the beginning of interim or annual reporting periods. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which converges the FASB and the International Accounting Standards Board standard on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. In August 2015, the FASB amended the effective date and early adoption is permitted only for fiscal years beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements or related disclosures. The FASB has also issued the following standards which provide additional clarification and implementation guidance on the previously issued ASU 2014-09 and have the same effective date as the original standard: ASU 2016-12 and ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (Topic 606). We are currently evaluating the impact that the adoption of the related ASU 2014-09 standards will have on our consolidated financial statements or related disclosures. Management continually evaluates the potential impact, if any, of all recent accounting pronouncements on our consolidated financial statements or related disclosures and, if significant, makes the appropriate disclosures required by such new accounting pronouncements. |
Restructuring and Related Charges |
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Restructuring Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Charges | Restructuring Charges We recognize restructuring charges when a plan that materially changes the scope of our business or the manner in which that business is conducted is adopted and communicated to the impacted parties, and the expenses have been incurred or are reasonably estimable. Fiscal 2016 Restructuring Activity Q4 - In the fourth quarter of fiscal 2016, we continued our efforts to better align product development and general and administrative functions with our company strategy and to reduce operating costs. We recorded $0.3 million in restructuring charges related to the Q4 fiscal 2016 restructuring activity in fiscal 2016, comprised of severance and other employee related benefits. As of September 30, 2016, we had a remaining liability of approximately $17,000 recorded for the Q4 fiscal 2016 restructuring activity. We expect to record additional restructuring expense related to the Q4 fiscal 2016 restructuring event during fiscal 2017 as those obligations become present and the definition of a liability included in FASB Concepts Statement No. 6, Elements of Financial Statements, is met. These additional charges are not expected to exceed $0.2 million. Following is a reconciliation of the beginning and ending balances of the restructuring liability:
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Intangible Assets |
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Intangible Assets | Intangible Assets and Software Development Costs The following table summarizes our intangible assets and software development costs:
During the first quarter of fiscal 2017, we announced general availability of our rGuest® Stay property management solution and placed into service $31.2 million of related software development costs. Additionally, during the second quarter of fiscal 2017, we announced general availability of our rGuest® Buy point of sale solution and placed into service $10.4 million of related software development costs. Amortization of these internally developed technologies are included in Products cost of goods sold and was $1.9 million for the three months ended September 30, 2016, and $2.9 million for the six months ended September 30, 2016. The useful life of each asset is 5 years. The following table summarizes our remaining estimated amortization expense relating to in service intangible assets and software development costs.
Intangible assets are comprised of acquired and internally developed technology to be sold, leased, or otherwise marketed and other non-software assets including, customer relationships, non-competition agreements, trade names and patented technology. Amortization expense of acquired and internally developed technology is included in Products cost of goods sold and was $2.1 million and $0.3 million for the three months ended September 30, 2016 and 2015, and $3.4 million and $0.6 million for the six months ended September 30, 2016 and 2015. Amortization expense of non-software intangibles is included in operating expenses along with acquired and internally developed internal use software. Internal use software is classified as property and equipment in the Consolidated Balance Sheets. Amortization expense of non-software intangible and internal use assets was $11,500 for the three months ended September 30, 2016 and 2015, and $23,000 for the six months ended September 30, 2016 and 2015. Capitalized software development costs that are internally developed to be sold, leased, or otherwise marketed, are carried on our balance sheet at net realizable value, net of accumulated amortization. We capitalized approximately $3.4 million and $2.6 million during the three months ended September 30, 2016 and 2015, and $6.7 million and $7.1 million during the six months ended September 30, 2016 and 2015. |
Additional Balance Sheet Information |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Balance Sheet Information | Additional information related to the Condensed Consolidated Balance Sheets is as follows:
Additional Balance Sheet Information Additional information related to the Condensed Consolidated Balance Sheets is as follows:
Accounts Receivable, net Accounts receivable, net of allowance for doubtful accounts was $16.1 million and $22.0 million as of September 30, 2016 and March 31, 2016, respectively. The related allowance for doubtful accounts was $0.5 million and $0.6 million as of September 30, 2016 and March 31, 2016, respectively. On January 12, 2015, an involuntary bankruptcy petition was filed against Caesars Entertainment Operating Company, Inc. (Caesars) under Chapter 11 of the U.S. Bankruptcy Code. On January 15, 2015, Caesars and certain of its affiliates filed a voluntary bankruptcy petition under Chapter 11. Those cases have been consolidated in the United States Bankruptcy Court for the Northern District of Illinois. At March 31, 2015, our accounts receivable owing by Caesars and its affiliates who have filed a bankruptcy petition totaled approximately $3.2 million, including both pre- and post-petition claims. As of May 26, 2015, we filed a proof of claim with the Bankruptcy Court identifying approximately $0.7 million of pre-petition claims. In January 2016, we filed an amended proof of claim with the Bankruptcy Court identifying approximately $0.2 million of pre-petition claim in addition to those filed on May 26, 2015. As of September 30, 2016, approximately $0.7 million of pre-petition claims remain outstanding. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The following table compares our income tax benefit and effective tax rates for the three months ended September 30, 2016 and 2015:
For the three and six months ended September 30, 2016, the effective tax rate was different than the statutory rate due primarily to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, foreign and state taxes, and other U.S. permanent book to tax differences. For the three and six months ended September 30, 2015, the effective tax rate was different than the statutory rate due primarily to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, the refunded settlement of an unrecognized tax benefit, foreign and state taxes, and other U.S. permanent book to tax differences. We have recorded a valuation allowance offsetting substantially all of our deferred tax assets. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. Because of our losses in prior periods, management believes that it is more-likely-than-not that we will not realize the benefits of these deductible differences. The amount of valuation allowance, however, could be reduced in the near term. The exact timing will be based on the level of profitability we achieve. We expect a full release of the valuation allowance associated with deferred tax assets in Hong Kong. We expect that the release of the valuation allowance will be recorded as an income tax benefit at the time of release increasing our reported net income. Our recorded tax rate may increase in subsequent periods following a valuation allowance release. Any valuation allowance release will not affect the amount of cash paid for income taxes. |
Commitments and Contingencies |
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Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Agilysys is the subject of various threatened or pending legal actions and contingencies in the normal course of conducting its business. We provide for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on our future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount or timing of the resolution of such matters. While it is not possible to predict with certainty, management believes that the ultimate resolution of such individual or aggregated matters will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows. On April 6, 2012, Ameranth, Inc. filed a complaint against us for patent infringement in the United States District Court for the Southern District of California. The complaint alleges, among other things, that point-of-sale and property management and other hospitality information technology products, software, components and/or systems sold by us infringe three patents owned by Ameranth purporting to cover generation and synchronization of menus, including restaurant menus, event tickets, and other products across fixed, wireless and/or internet platforms as well as synchronization of hospitality information and hospitality software applications across fixed, wireless and internet platforms. The complaint seeks monetary damages, injunctive relief, costs and attorneys' fees. At this time, we are not able to predict the outcome of this lawsuit, or any possible monetary exposure associated with the lawsuit. However, we dispute the allegations of wrongdoing and are vigorously defending ourselves in this matter. |
(Loss) Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | (Loss) Earnings per Share The following data shows the amounts used in computing (loss) earnings per share and the effect on income and the weighted average number of shares of dilutive potential common shares.
Basic (loss) earnings per share is computed as net (loss) income available to common shareholders divided by the weighted average basic shares outstanding. The outstanding shares used to calculate the weighted average basic shares excludes 541,473 and 450,618 of restricted shares at September 30, 2016 and 2015, respectively, as these shares were issued but were not vested and, therefore, not considered outstanding for purposes of computing basic (loss) earnings per share at the balance sheet dates. Diluted (loss) earnings per share includes the effect of all potentially dilutive securities on earnings per share. We have stock options, stock-settled appreciation rights (SSARs) and unvested restricted shares that are potentially dilutive securities. When a loss is reported, the denominator of diluted (loss) earnings per share cannot be adjusted for the dilutive impact of share-based compensation awards because doing so would be anti-dilutive. Therefore, for the three months and six months ended September 30, 2016 and 2015, basic weighted-average shares outstanding were used in calculating the diluted net loss per share. |
Share-based Compensation |
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Share-based Compensation | Share-based Compensation We may grant non-qualified stock options, incentive stock options, SSARs, restricted shares, and restricted share units for up to 2.0 million common shares under our shareholder-approved 2016 Stock Incentive Plan (the 2016 Plan), plus 957,575, the number of shares remaining for grant under the 2011 Stock Incentive Plan (the 2011 Plan) as of the effective date of the 2016 Plan, plus the number of shares remaining for grant under the 2011 Plan that are forfeited, settled in cash, canceled or expired. The maximum aggregate number of restricted shares or restricted share units that may be granted under the 2016 Plan is 1.25 million. With respect to awards that are intended to qualify for the performance-based exception to the deductibility limitations of Section 162(m) of the Internal Revenue Code, the maximum number of shares subject to stock options or SSARs that may be granted to an individual in a calendar year is 800,000 shares, and the maximum number of shares subject to restricted shares or restricted share units that may be granted to an individual in a calendar year is 400,000 shares. We have a shareholder-approved 2011 Plan, 2006 Stock Incentive Plan (the 2006 Plan) and a 2000 Stock Incentive Plan that still have vested awards outstanding. Awards are no longer being granted from these incentive plans. We may distribute authorized but unissued shares or treasury shares to satisfy share option and appreciation right exercises or restricted share and performance share awards. We record compensation expense related to stock options, SSARs, restricted shares, and performance shares granted to certain employees and non-employee directors based on the fair value of the awards on the grant date. The fair value of restricted share and performance share awards is based on the closing price of our common shares on the grant date. The fair value of stock option and SSARs awards is estimated on the grant date using the Black-Scholes-Merton option pricing model, which includes assumptions regarding the risk-free interest rate, dividend yield, life of the award, and the volatility of our common shares. The following table summarizes the share-based compensation expense for options, SSARs, restricted and performance awards included in the Condensed Consolidated Statements of Operations:
Stock Options The following table summarizes the activity during the six months ended September 30, 2016 for stock options awarded under the 2006 Plan and the 2000 Stock Incentive Plan:
Stock-Settled Stock Appreciation Rights SSARs are rights granted to an employee to receive value equal to the difference in the price of our common shares on the date of the grant and on the date of exercise. This value is settled in common shares of Agilysys. The following table summarizes the activity during the six months ended September 30, 2016 for SSARs awarded under the 2011 Plan:
As of September 30, 2016, total unrecognized stock based compensation expense related to non-vested SSARs was $1.0 million, which is expected to be recognized over a weighted-average vesting period of 1.58 years. Restricted Shares We granted shares to certain of our Directors, executives and key employees, the vesting of which is service-based. The following table summarizes the activity during the six months ended September 30, 2016 for restricted shares awarded under the 2016 and 2011 Plan:
The weighted-average grant date fair value of the restricted shares is determined based upon the closing price of our common shares on the grant date. As of September 30, 2016, total unrecognized stock based compensation expense related to non-vested restricted stock was $3.8 million, which is expected to be recognized over a weighted-average vesting period of 1.53 years. Performance Shares The following table summarizes the activity during the six months ended September 30, 2016 for performance shares awarded under the 2011 Plan:
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Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Adopted and Recently Issued Accounting Pronouncements | Adopted and Recently Issued Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 clarifies the classification of receipts and payments in the statement of cash flows. ASU 2016-15 provides guidance related to (1) debt prepayment or debt extinguishment costs, (2) settlement and payment of zero coupon debt instruments, (3) contingent consideration, (4) proceeds from settlement of insurance claims, (5) proceeds from settlement of corporate and bank owned life insurance policies, (6) distributions from equity method investees, (7) cash receipts from beneficial interests obtained by a transferor, and (8) general guidelines for cash receipts and payments that have more than one aspect of classification. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, including interim periods. Early adoption is permitted. We are evaluating the impact the adopting this guidance will have on future financial statements and disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this update involve several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards, and classification on the statement of cash flows. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers. The amendments in this update clarify the implementation guidance on principals versus agent considerations in FASB ASC 606. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of ASU 2014-09 described below. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The amendments in this update include a new FASB ASC Topic 842, which supersedes Topic 840. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities as of the beginning of interim or annual reporting periods. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which converges the FASB and the International Accounting Standards Board standard on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. In August 2015, the FASB amended the effective date and early adoption is permitted only for fiscal years beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements or related disclosures. The FASB has also issued the following standards which provide additional clarification and implementation guidance on the previously issued ASU 2014-09 and have the same effective date as the original standard: ASU 2016-12 and ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (Topic 606). We are currently evaluating the impact that the adoption of the related ASU 2014-09 standards will have on our consolidated financial statements or related disclosures. Management continually evaluates the potential impact, if any, of all recent accounting pronouncements on our consolidated financial statements or related disclosures and, if significant, makes the appropriate disclosures required by such new accounting pronouncements. |
Restructuring and Related Charges (Tables) |
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Reconciliation of the beginning and ending balances of the company's restructuring liabilities | ollowing is a reconciliation of the beginning and ending balances of the restructuring liability:
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Intangible Assets (Tables) |
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Schedule of intangible assets | The following table summarizes our intangible assets and software development costs:
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Schedule of remaining estimated amortization expense | The following table summarizes our remaining estimated amortization expense relating to in service intangible assets and software development costs.
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Additional Balance Sheet Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional information related to the Company's Condensed Consolidated Balance Sheets | Additional information related to the Condensed Consolidated Balance Sheets is as follows:
Additional Balance Sheet Information Additional information related to the Condensed Consolidated Balance Sheets is as follows:
Accounts Receivable, net Accounts receivable, net of allowance for doubtful accounts was $16.1 million and $22.0 million as of September 30, 2016 and March 31, 2016, respectively. The related allowance for doubtful accounts was $0.5 million and $0.6 million as of September 30, 2016 and March 31, 2016, respectively. On January 12, 2015, an involuntary bankruptcy petition was filed against Caesars Entertainment Operating Company, Inc. (Caesars) under Chapter 11 of the U.S. Bankruptcy Code. On January 15, 2015, Caesars and certain of its affiliates filed a voluntary bankruptcy petition under Chapter 11. Those cases have been consolidated in the United States Bankruptcy Court for the Northern District of Illinois. At March 31, 2015, our accounts receivable owing by Caesars and its affiliates who have filed a bankruptcy petition totaled approximately $3.2 million, including both pre- and post-petition claims. As of May 26, 2015, we filed a proof of claim with the Bankruptcy Court identifying approximately $0.7 million of pre-petition claims. In January 2016, we filed an amended proof of claim with the Bankruptcy Court identifying approximately $0.2 million of pre-petition claim in addition to those filed on May 26, 2015. As of September 30, 2016, approximately $0.7 million of pre-petition claims remain outstanding. |
Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rates from continuing operations | The following table compares our income tax benefit and effective tax rates for the three months ended September 30, 2016 and 2015:
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(Loss) Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computing (loss) earnings per share and the effect on income and the weighted average number of dilutive potential common shares | The following data shows the amounts used in computing (loss) earnings per share and the effect on income and the weighted average number of shares of dilutive potential common shares.
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Share-based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of share-based compensation expense for options | The following table summarizes the share-based compensation expense for options, SSARs, restricted and performance awards included in the Condensed Consolidated Statements of Operations:
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Activity related stock options award | The following table summarizes the activity during the six months ended September 30, 2016 for stock options awarded under the 2006 Plan and the 2000 Stock Incentive Plan:
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Activity related SSARs award | The following table summarizes the activity during the six months ended September 30, 2016 for SSARs awarded under the 2011 Plan:
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Activity related to restricted shares awarded by the Company | The following table summarizes the activity during the six months ended September 30, 2016 for restricted shares awarded under the 2016 and 2011 Plan:
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Performance Shares Awarded by Company [Table Text Block] | The following table summarizes the activity during the six months ended September 30, 2016 for performance shares awarded under the 2011 Plan:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value:
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Summary of changes in the fair value of the Level 3 assets and liabilities Corporate-owned life insurance | The following table presents a summary of changes in the fair value of the Level 3 assets:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following tables present a summary of changes in the fair value of the Level 3 liabilities:
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Fair Value Measurements Cash, cash equivalents and marketable securities (Tables) |
6 Months Ended |
---|---|
Sep. 30, 2016 | |
Cash, cash equivalents and marketable securities [Abstract] | |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | |
Cash, cash equivalents and marketable securities [Table Text Block] |
Nature of Operations and Financial Statement Presentation (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Correction of Errors [Abstract] | ||||
Support Maintenance and Subscription Revenue | $ 15,906 | $ 14,665 | $ 30,854 | $ 29,564 |
Acquisitions (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Mar. 31, 2016 |
---|---|---|
Business Acquisition [Line Items] | ||
Goodwill | $ 19,622 | $ 19,622 |
Acquisitions (Details Textual) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Mar. 31, 2016 |
---|---|---|
Business Acquisition [Line Items] | ||
Goodwill | $ 19,622 | $ 19,622 |
Restructuring and Related Charges (Details) |
6 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Balance at March 31, 2013 | $ 311,000 |
Provision | 0 |
Payments for restructuring, severance and other charges | (294,000) |
Balance at December 31, 2013 | 17,000 |
Severance and employment costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 200,000 |
Severance and employment costs [Member] | Restructuring Plan Fiscal Two Zero One Five [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance at March 31, 2013 | 311,000 |
Provision | 0 |
Payments for restructuring, severance and other charges | (294,000) |
Balance at December 31, 2013 | $ 17,000 |
Restructuring and Related Charges (Details Textual) - USD ($) |
6 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Mar. 31, 2016 |
|
Restructuring Charges (Textual) [Abstract] | ||
Restructuring Reserve, Current | $ 17,000 | $ 311,000 |
Restructuring Provisions | 0 | |
Severance and Employment Costs [Member] | ||
Restructuring Charges (Textual) [Abstract] | ||
Restructuring Reserve, Current | $ 17,000 |
Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2015 | $ 4,635 |
2016 | 9,272 |
2017 | 9,150 |
2018 | 8,411 |
2019 | 8,326 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 1,214 |
Net carrying amount | $ 41,008 |
Additional Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Mar. 31, 2016 |
---|---|---|
Other non-current assets: | ||
Total | $ 2,643 | $ 3,046 |
Accrued liabilities: | ||
Salaries, wages, and related benefits | 7,212 | 9,751 |
Other taxes payable | 537 | 818 |
Accrued legal settlements | 85 | 100 |
Restructuring liabilities | 17 | 311 |
Supplemental Unemployment Benefits, Severance Benefits | 14 | 6 |
Professional fees | 693 | 714 |
Deferred rent | 422 | 400 |
Contingent consideration — current | 0 | 197 |
Other | 565 | 683 |
Total | 9,545 | 12,980 |
Other non-current liabilities: | ||
Uncertain tax positions | 1,491 | 1,469 |
Deferred rent | 2,615 | 2,746 |
Other | 76 | 79 |
Total | $ 4,182 | $ 4,294 |
Additional Balance Sheet Information Accounts receivable, net (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
May 26, 2015 |
Sep. 30, 2016 |
Mar. 31, 2016 |
|
Additional Balance Sheet Information [Abstract] | |||
Accounts Receivable, Net, Current | $ 16,139 | $ 22,017 | |
Allowance for Doubtful Accounts Receivable | 492 | 617 | |
Accounts Receivable, Gross, Current | $ 3,200 | ||
Bankruptcy Claims, Amount of Claims Filed | $ 700 | $ 700 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Effective tax rates from continuing operations | ||||
Income tax expense (benefit) | $ 82 | $ (19) | $ 124 | $ (44) |
Effective tax rate | (3.50%) | 4.90% |
(Loss) Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Earnings Per Share [Abstract] | ||||
Income (Loss) from Continuing Operations Attributable to Parent | $ (2,400) | $ (370) | $ (4,697) | $ (554) |
Numerator [Abstract] | ||||
Net loss | $ (2,400) | $ (370) | $ (4,697) | $ (554) |
Denominator [Abstract] | ||||
Weighted average shares outstanding | 22,606 | 22,476 | 22,603 | 22,472 |
Earnings Per Share, Basic [Abstract] | ||||
Loss per share | $ (0.11) | $ (0.02) | $ (0.21) | $ (0.02) |
Earnings Per Share, Diluted [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,291,000 | 1,725,000 | 1,363,000 | 1,547,000 |
(Loss) Earnings per Share (Details Textual) - shares |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Earnings Per Share [Abstract] | ||
Incremental Common Shares Attributable to Restricted Shares | 541,473 | 450,618 |
Share-based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation | $ 494 | $ 996 | $ 841 | $ 1,400 |
Product development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Summary of share-based compensation expense for options | 200 | 320 | 328 | 476 |
Selling and marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Summary of share-based compensation expense for options | 32 | 35 | 53 | (8) |
General and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Summary of share-based compensation expense for options | $ 262 | $ 641 | $ 460 | $ 932 |
Share-based Compensation (Details 3) - Restricted Stock [Member] |
6 Months Ended |
---|---|
Sep. 30, 2016
$ / shares
shares
| |
Activity Related to Restricted Shares Awarded by the Company | |
Number of shares Outstanding at Beginning of Period | shares | 335,773 |
Weighted Average Grant-Date Fair Value Outstanding at Beginning of Period | $ / shares | $ 12.06 |
Granted, Number of Shares | shares | 157,828 |
Granted, Weighted Average Grant Date Fair value | $ / shares | $ 10.87 |
Vested, Number of shares | shares | (9,250) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 13.51 |
Forfeited, Number of Shares | shares | (4,046) |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | $ 11.10 |
Number of shares Outstanding at End of Period | shares | 480,305 |
Weighted Average Grant-Date Fair Value Outstanding at End of Period | $ / shares | $ 11.65 |
Share-based Compensation (Details 4) - Performance Shares [Member] - $ / shares |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2016 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0 | ||
Performance shares awarded by the Company | |||
Granted, Weighted Average Grant Date Fair value | $ 0.00 | $ 9.60 | |
Number of shares Outstanding at End of Period | 0 | 0 | 7,812 |
Fair Value Measurements (Details 2) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Contingent Consideration [Abstract] | |||||
Business Combination, Contingent Consideration, Liability | $ 104,000 | $ 0 | $ 104,000 | $ 197,000 | $ 112,000 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (197,000) | $ 0 | |||
Liabilities, Fair Value Adjustment | $ (8,000) |
Subsequent Events (Details) $ in Millions |
6 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Subsequent Events [Abstract] | |
Subsequent Event, Description | $ 31.2 |
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