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Quarterly Results of Operation
 12 Months Ended
Mar. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Results of Operation

Note 15. Quarterly Results of Operation (Unaudited)

The following is a summary of the Company’s unaudited quarterly results of operations for the fiscal years ending March 31, 2019 and 2018:

 

 

 

Fiscal Year Ended March 31, 2019

 

 

 

1st Quarter

 

 

2nd Quarter

 

 

3rd Quarter

 

 

4th Quarter

 

 

Total Year

 

 

 

(in $000's)

 

Revenue

 

$

 

180,010

 

 

$

 

181,778

 

 

$

 

200,563

 

 

$

 

207,081

 

 

$

 

769,432

 

Cost of revenue

 

 

 

30,850

 

 

 

 

29,846

 

 

 

 

34,023

 

 

 

 

34,848

 

 

 

 

129,567

 

Other operating expenses

 

 

 

102,412

 

 

 

 

101,612

 

 

 

 

104,185

 

 

 

 

106,844

 

 

 

 

415,053

 

Other income, net (1)

 

 

 

1,739

 

 

 

 

1,513

 

 

 

 

2,155

 

 

 

 

33,141

 

 

 

 

38,548

 

Income before income taxes

 

 

 

48,487

 

 

 

 

51,833

 

 

 

 

64,510

 

 

 

 

98,530

 

 

 

 

263,360

 

Income tax provision (benefit) (2)

 

 

 

(41,579

)

 

 

 

1,706

 

 

 

 

19,648

 

 

 

 

24,569

 

 

 

 

4,344

 

Net income

 

$

 

90,066

 

 

$

 

50,127

 

 

$

 

44,862

 

 

$

 

73,961

 

 

$

 

259,016

 

Basic net income per share

 

$

 

2.02

 

 

$

 

1.11

 

 

$

 

1.00

 

 

$

 

1.64

 

 

$

 

5.77

 

Diluted net income per share

 

$

 

1.95

 

 

$

 

1.09

 

 

$

 

0.97

 

 

$

 

1.60

 

 

$

 

5.61

 

 

 

 

Fiscal Year Ended March 31, 2018

 

 

 

1st Quarter

 

 

2nd Quarter

 

 

3rd Quarter

 

 

4th Quarter

 

 

Total Year

 

 

 

(in $000's)

 

Revenue

 

$

 

132,468

 

 

$

 

132,823

 

 

$

 

154,022

 

 

$

 

174,436

 

 

$

 

593,749

 

Cost of revenue

 

 

 

21,862

 

 

 

 

21,627

 

 

 

 

24,994

 

 

 

 

30,098

 

 

 

 

98,581

 

Other operating expenses

 

 

 

77,528

 

 

 

 

79,470

 

 

 

 

84,262

 

 

 

 

96,771

 

 

 

 

338,031

 

Other income, net

 

 

 

714

 

 

 

 

758

 

 

 

 

888

 

 

 

 

940

 

 

 

 

3,300

 

Income before income taxes

 

 

 

33,792

 

 

 

 

32,484

 

 

 

 

45,654

 

 

 

 

48,507

 

 

 

 

160,437

 

Income tax provision (benefit) (2)(3)

 

 

 

(3,582

)

 

 

 

7,981

 

 

 

 

32,208

 

 

 

 

11,660

 

 

 

 

48,267

 

Net income

 

$

 

37,374

 

 

$

 

24,503

 

 

$

 

13,446

 

 

$

 

36,847

 

 

$

 

112,170

 

Basic net income per share

 

$

 

0.85

 

 

$

 

0.56

 

 

$

 

0.30

 

 

$

 

0.83

 

 

$

 

2.54

 

Diluted net income per share

 

$

 

0.82

 

 

$

 

0.54

 

 

$

 

0.29

 

 

$

 

0.80

 

 

$

 

2.45

 

 

 

(1)

In fiscal 2019, the Company invested $25.0 million in medical device company Shockwave Medical. The fair value of this investment as of March 31, 2019 was $56.2 million and the Company recognized a gain of $31.2 million in Other income.

 

(2)

On December 22, 2017, the Tax Cuts and Jobs Act, or Tax Reform Act, was enacted into law. This new law, among other items, reduces the U.S. federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018.  During the year ended March 31, 2018, the Company recorded tax expense adjustments for $21.4 million related to the revaluation of its deferred taxes due to a reduction of the U.S. federal statutory corporate income tax rate.

 

(3)

In the first quarter of fiscal 2018, the Company adopted ASU 2016-09, which requires that all excess tax benefits and tax deficiencies related share-based compensation arrangements be recognized as income tax benefit or expense, instead of in stockholders’ equity as previous guidance required. The income tax provision for the years ended March 31, 2019 and 2018 included excess tax benefits of $69.3 million and $31.0 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the years ended March 31, 2019 and 2018.