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 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
Address of Principal Executive Offices, Including Zip Code |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | o | Accelerated filer | x | ||||||||
Non-accelerated filer | o | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | ||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Products | $ | $ | $ | $ | |||||||||||||||||||
Services | |||||||||||||||||||||||
Total net revenues | |||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||
Products | |||||||||||||||||||||||
Services | |||||||||||||||||||||||
Total cost of revenues | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Marketing and selling | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Restructuring costs, net | ( | ||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share – basic | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share – diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding – basic | |||||||||||||||||||||||
Weighted-average common shares outstanding – diluted |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowances of $1,422 and $1,478 at September 30, 2021 and December 31, 2020, respectively | |||||||||||
Inventories | |||||||||||
Prepaid expenses | |||||||||||
Contract assets | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Right of use assets | |||||||||||
Deferred tax assets, net | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued compensation and benefits | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Income taxes payable | |||||||||||
Short-term debt | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term deferred revenue | |||||||||||
Long-term lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 7) | |||||||||||
Stockholders’ deficit: | |||||||||||
Common stock, par value $0.01; authorized: 100,000 shares; issued: 45,693 shares at September 30, 2021 and 44,420 shares at December 31, 2020; outstanding: 45,281 shares at September 30, 2021 and 44,420 shares at December 31, 2020 | |||||||||||
Treasury stock | ( | ||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ deficit | ( | ( | |||||||||
Total liabilities and stockholders’ deficit | $ | $ |
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||
Shares of Common Stock | Additional | Accumulated Other | Total | ||||||||||||||||||||||||||
Issued | In Treasury | Common Stock | Paid-in Capital | Accumulated Deficit | Treasury Stock | Comprehensive Loss | Stockholders’ Deficit | ||||||||||||||||||||||
Balances at January 1, 2021 | — | ( | — | ( | ( | ||||||||||||||||||||||||
Stock issued pursuant to employee stock plans | — | ( | — | — | — | ( | |||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||
Balances at March 31, 2021 | — | ( | — | ( | ( | ||||||||||||||||||||||||
Stock issued pursuant to employee stock plans | — | ( | — | — | — | ( | |||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||
Balances at June 30, 2021 | — | ( | — | ( | ( | ||||||||||||||||||||||||
Stock issued pursuant to employee stock plans | — | ( | — | — | — | ( | |||||||||||||||||||||||
Repurchase of common stock | — | ( | — | — | — | ( | — | ( | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||
Balances at September 30, 2021 | ( | ( | ( | ( | ( |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Shares of Common Stock | Additional | Accumulated Other | Total | ||||||||||||||||||||||||||
Issued | In Treasury | Common Stock | Paid-in Capital | Accumulated Deficit | Treasury Stock | Comprehensive Loss | Stockholders’ Deficit | ||||||||||||||||||||||
Balances at January 1, 2020 | — | ( | — | ( | ( | ||||||||||||||||||||||||
Stock issued pursuant to employee stock plans | — | ( | — | — | — | ( | |||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Net loss | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||
Balances at March 31, 2020 | — | ( | — | ( | ( | ||||||||||||||||||||||||
Stock issued pursuant to employee stock plans | — | ( | — | — | — | ( | |||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||
Balances at June 30, 2020 | — | ( | — | ( | ( | ||||||||||||||||||||||||
Stock issued pursuant to employee stock plans | — | ( | — | — | — | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||
Balances at September 30, 2020 | — | ( | — | ( | ( |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Allowance for doubtful accounts | |||||||||||
Stock-based compensation expense | |||||||||||
Non-cash provision for restructuring | |||||||||||
Non-cash interest expense | |||||||||||
Loss on extinguishment of debt | |||||||||||
Gain on forgiveness of PPP loan | ( | ||||||||||
Unrealized foreign currency transaction (gains) losses | ( | ||||||||||
Benefit from deferred taxes | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable | ( | ||||||||||
Accrued expenses, compensation and benefits and other liabilities | ( | ||||||||||
Income taxes payable | ( | ||||||||||
Deferred revenue and contract assets | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving line of credit | |||||||||||
Repayment on revolving line of credit | ( | ||||||||||
Proceeds from long-term debt | |||||||||||
Repayment of debt | ( | ( | |||||||||
Payments for repurchase of common stock | ( | ||||||||||
Payments for repurchase of outstanding notes | ( | ||||||||||
Proceeds from the issuance of common stock under employee stock plans | |||||||||||
Common stock repurchases for tax withholdings for net settlement of equity awards | ( | ( | |||||||||
Unwind capped call cash receipt | |||||||||||
Prepayment penalty on extinguishment of debt | ( | ||||||||||
Payments for credit facility issuance costs | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | |||||||||||
Supplemental information: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | $ | $ | |||||||||
Restricted cash included in other long-term assets | $ | $ | |||||||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ | $ | |||||||||
Cash paid (refunded) for income taxes | $ | $ | ( | ||||||||
Cash paid for interest | $ | $ |
September 30, 2021 | September 30, 2020 | ||||||||||
Options | |||||||||||
Non-vested restricted stock units | |||||||||||
Anti-dilutive potential common shares |
Three months ended | Nine month ended | ||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||
Weighted common shares outstanding - basic | |||||||||||||||||
Net effect of common stock equivalents | |||||||||||||||||
Weighted common shares outstanding - diluted |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
September 30, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Deferred compensation assets | $ | $ | $ | $ | |||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Deferred compensation assets | $ | $ | $ | $ | |||||||||||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total | $ | $ |
Year Ending December 31, | Operating Leases | Finance Leases | ||||||
2021 (excluding nine months ended September 30, 2021) | $ | $ | ||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total future minimum lease payments | $ | $ | ||||||
Less effects of discounting | ( | ( | ||||||
Total lease liabilities | $ | $ |
Operating Leases | September 30, 2021 | ||||
Right of use assets | $ | ||||
Accrued expenses and other current liabilities | ( | ||||
Long-term lease liabilities | ( | ||||
Total lease liabilities | $ | ( |
Finance Leases | September 30, 2021 | ||||
Other assets | $ | ||||
Accrued expenses and other current liabilities | ( | ||||
Other long-term liabilities | ( | ||||
Total lease liabilities | $ | ( |
September 30, 2021 | December 31, 2020 | ||||||||||
Deferred compensation | $ | $ | |||||||||
Finance lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total | $ | $ |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Accrual balance at beginning of period | $ | $ | |||||||||
Accruals for product warranties | |||||||||||
Costs of warranty claims | ( | ( | |||||||||
Accrual balance at end of period | $ | $ |
Employee | |||||
Accrual balance as of December 31, 2020 | $ | ||||
Restructuring charges and revisions | |||||
Cash payments | ( | ||||
Foreign exchange impact on ending balance | ( | ||||
Accrual balance as of September 30, 2021 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Products and solutions net revenues | $ | $ | $ | $ | |||||||||||||||||||
Subscription services | |||||||||||||||||||||||
Maintenance | |||||||||||||||||||||||
Professional services, training and other services | |||||||||||||||||||||||
Total net revenues | $ | 101,640 | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Other Americas | |||||||||||||||||||||||
Europe, Middle East and Africa | |||||||||||||||||||||||
Asia-Pacific | |||||||||||||||||||||||
Total net revenues | $ | $ | $ | $ |
September 30, 2021 | September 30, 2020 | ||||||||||
Contract asset at beginning of year | $ | $ | |||||||||
Revenue in excess of billings | |||||||||||
Customer billings | ( | ( | |||||||||
Contract asset at end of period | $ | $ | |||||||||
September 30, 2021 | September 30, 2020 | ||||||||||
Deferred revenue at beginning of period | $ | $ | |||||||||
Billings deferred | |||||||||||
Recognition of prior deferred revenue | ( | ( | |||||||||
Deferred revenue at end of period | $ | $ |
September 30, 2021 | |||||
Product | $ | ||||
Subscription | |||||
Maintenance contracts | |||||
Implied PCS | |||||
Professional services, training and other | |||||
Deferred revenue at September 30, 2021 | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
Term Loan, net of unamortized issuance costs and debt discount of $2,188 and $2,579 at September 30, 2021 and December 31, 2020, respectively | $ | $ | 198,629 | ||||||||
PPP loan | 7,800 | ||||||||||
Other long-term debt | 1,271 | ||||||||||
Total debt | $ | $ | |||||||||
Less: current portion | |||||||||||
Total long-term debt | $ | $ |
Fiscal Year | Credit Agreement | Other Long-Term Debt | Total | ||||||||||||||
2021 | $ | $ | |||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total before unamortized discount | |||||||||||||||||
Less: unamortized discount and issuance costs | |||||||||||||||||
Less: current portion of long-term debt | |||||||||||||||||
Total long-term debt | $ | $ | $ |
Total Number of Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
Options outstanding at January 1, 2021 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited or canceled | |||||||||||||||||||||||
Options outstanding at September 30, 2021 | — | ||||||||||||||||||||||
Number of Restricted Stock Units | Weighted- Average Grant-Date Fair Value | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (in thousands) | Shares Retained to Cover Statutory Minimum Withholding Taxes | |||||||||||||||||||||||||
Non-vested at January 1, 2021 | $ | — | |||||||||||||||||||||||||||
Granted | — | ||||||||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||||||||
Forfeited | ( | — | |||||||||||||||||||||||||||
Outstanding at September 30, 2021 | $ | $ | |||||||||||||||||||||||||||
Number of Performance-based Restricted Stock Units | Weighted- Average Grant-Date Fair Value | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (in thousands) | Shares Retained to Cover Statutory Minimum Withholding Taxes | |||||||||||||||||||||||||
Non-vested at January 1, 2021 | $ | — | |||||||||||||||||||||||||||
Granted | — | ||||||||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||||||||
Forfeited | — | ||||||||||||||||||||||||||||
Non-vested at September 30, 2021 | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Share-based compensation expense by type: | |||||||||||||||||||||||
Time-based Restricted Stock Units | $ | $ | $ | $ | |||||||||||||||||||
Performance-based Restricted Stock Units | |||||||||||||||||||||||
ESPP | |||||||||||||||||||||||
Total share-based compensation expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Cost of products revenues | $ | $ | $ | $ | |||||||||||||||||||
Cost of services revenues | |||||||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Marketing and selling expenses | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Total share-based compensation expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Subscriptions | $ | 28,008 | $ | 17,907 | $ | 74,384 | $ | 48,292 | |||||||||||||||
Maintenance | 30,702 | 30,826 | 90,997 | 93,190 | |||||||||||||||||||
Subscriptions and Maintenance | 58,710 | 48,733 | 165,381 | 141,482 | |||||||||||||||||||
Perpetual Licenses | 5,678 | 8,972 | 18,596 | 21,165 | |||||||||||||||||||
Software Licenses and Maintenance | 64,388 | 57,705 | 183,977 | 162,647 | |||||||||||||||||||
Integrated solutions | 31,172 | 26,803 | 88,699 | 76,956 | |||||||||||||||||||
Professional services & training | 6,080 | 5,923 | 18,204 | 16,562 | |||||||||||||||||||
Total revenue | $ | 101,640 | $ | 90,431 | $ | 290,880 | $ | 256,165 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Product | 36.3 | % | 39.6 | % | 36.9 | % | 38.3 | % | |||||||||||||||
Services | 63.7 | % | 60.4 | % | 63.1 | % | 61.7 | % | |||||||||||||||
Total net revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of revenues | 35.2 | % | 35.6 | % | 35.6 | % | 36.4 | % | |||||||||||||||
Gross margin | 64.8 | % | 64.4 | % | 64.4 | % | 63.6 | % | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 16.9 | % | 15.1 | % | 16.7 | % | 16.4 | % | |||||||||||||||
Marketing and selling | 24.0 | % | 22.1 | % | 22.9 | % | 25.4 | % | |||||||||||||||
General and administrative | 14.7 | % | 11.9 | % | 14.5 | % | 13.3 | % | |||||||||||||||
Restructuring costs, net | (0.1) | % | 0.8 | % | 0.3 | % | 0.4 | % | |||||||||||||||
Total operating expenses | 55.4 | % | 49.9 | % | 54.4 | % | 55.5 | % | |||||||||||||||
Operating income | 9.4 | % | 14.5 | % | 10.0 | % | 8.1 | % | |||||||||||||||
Interest expense, net | (1.6) | % | (5.0) | % | (1.9) | % | (6.0) | % | |||||||||||||||
Other income, net | 7.7 | % | 0.1 | % | 1.5 | % | 0.1 | % | |||||||||||||||
Income before income taxes | 15.5 | % | 9.6 | % | 9.6 | % | 2.2 | % | |||||||||||||||
Provision for income taxes | 1.0 | % | 0.8 | % | 0.6 | % | 0.6 | % | |||||||||||||||
Net income | 14.5 | % | 8.8 | % | 9.0 | % | 1.6 | % |
Net Revenues for the Three Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2021 | Change | 2020 | |||||||||||||||||||||
Net Revenues | $ | % | Net Revenues | ||||||||||||||||||||
Products and solutions | $ | 36,850 | $ | 1,075 | 3.0% | $ | 35,775 | ||||||||||||||||
Services | 64,790 | 10,134 | 18.5% | 54,656 | |||||||||||||||||||
Total net revenues | $ | 101,640 | $ | 11,209 | 12.4% | $ | 90,431 |
Net Revenues for the Nine Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2021 | Change | 2020 | |||||||||||||||||||||
Net Revenues | $ | % | Net Revenues | ||||||||||||||||||||
Products and solutions | $ | 107,295 | $ | 9,174 | 9.3% | $ | 98,121 | ||||||||||||||||
Services | 183,585 | 25,541 | 16.2% | 158,044 | |||||||||||||||||||
Total net revenues | $ | 290,880 | $ | 34,715 | 13.6% | $ | 256,165 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
United States | 44% | 40% | 43% | 41% | |||||||||||||||||||
Other Americas | 5% | 5% | 5% | 6% | |||||||||||||||||||
Europe, Middle East and Africa | 38% | 42% | 38% | 39% | |||||||||||||||||||
Asia-Pacific | 13% | 13% | 14% | 14% |
Costs of Revenues and Gross Profit for the Three Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2021 | Change | 2020 | |||||||||||||||||||||
Costs | $ | % | Costs | ||||||||||||||||||||
Products | $ | 20,468 | $ | (489) | (2.3)% | $ | 20,957 | ||||||||||||||||
Services | 15,269 | 4,052 | 36.1% | 11,217 | |||||||||||||||||||
Total cost of revenues | $ | 35,737 | $ | 3,563 | 11.1% | $ | 32,174 | ||||||||||||||||
Gross profit | $ | 65,903 | $ | 7,646 | 13.1% | $ | 58,257 |
Costs of Revenues and Gross Profit for the Nine Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2021 | Change | 2020 | |||||||||||||||||||||
Costs | $ | % | Costs | ||||||||||||||||||||
Products | $ | 60,044 | $ | 1,171 | 2.0% | $ | 58,873 | ||||||||||||||||
Services | 43,379 | 9,057 | 26.4% | 34,322 | |||||||||||||||||||
Total cost of revenues | $ | 103,423 | $ | 10,228 | 11.0% | $ | 93,195 | ||||||||||||||||
Gross profit | $ | 187,457 | $ | 24,487 | 15.0% | $ | 162,970 |
Gross Margin % for the Three Months Ended September 30, 2021 and 2020 | |||||||||||||||||
2021 Gross Margin % | Change | 2020 Gross Margin % | |||||||||||||||
Products | 44.5% | 3.1% | 41.4% | ||||||||||||||
Services | 76.4% | (3.1)% | 79.5% | ||||||||||||||
Total | 64.8% | 0.4% | 64.4% |
Gross Margin % for the Nine Months Ended September 30, 2021 and 2020 | |||||||||||||||||
2021 Gross Margin % | Change | 2020 Gross Margin % | |||||||||||||||
Products | 44.0% | 4.0% | 40.0% | ||||||||||||||
Services | 76.4% | (1.9)% | 78.3% | ||||||||||||||
Total | 64.4% | 0.8% | 63.6% |
Operating Expenses and Operating Income for the Three Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2021 | Change | 2020 | |||||||||||||||||||||
Expenses | $ | % | Expenses | ||||||||||||||||||||
Research and development | $ | 17,129 | $ | 3,506 | 25.7% | $ | 13,623 | ||||||||||||||||
Marketing and selling | 24,413 | 4,415 | 22.1% | 19,998 | |||||||||||||||||||
General and administrative | 14,901 | 4,105 | 38.0% | 10,796 | |||||||||||||||||||
Restructuring costs, net | (88) | (811) | (112.2)% | 723 | |||||||||||||||||||
Total operating expenses | $ | 56,355 | $ | 11,215 | 24.8% | $ | 45,140 | ||||||||||||||||
Operating income | $ | 9,548 | $ | (3,569) | (27.2)% | $ | 13,117 |
Operating Expenses and Operating Income for the Nine Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2021 | Change | 2020 | |||||||||||||||||||||
Expenses | $ | % | Expenses | ||||||||||||||||||||
Research and development | $ | 48,639 | $ | 6,523 | 15.5% | $ | 42,116 | ||||||||||||||||
Marketing and selling | 66,511 | 1,534 | 2.4% | 64,977 | |||||||||||||||||||
General and administrative | 42,214 | 8,070 | 23.6% | 34,144 | |||||||||||||||||||
Restructuring costs, net | 1,001 | (7) | (0.7)% | 1,008 | |||||||||||||||||||
Total operating expenses | $ | 158,365 | $ | 16,120 | 11.3% | $ | 142,245 | ||||||||||||||||
Operating income | $ | 29,092 | $ | 8,367 | 40.4% | $ | 20,725 |
Change in R&D Expenses for the Three Months Ended September 30, 2021 and 2020 | |||||||||||
(dollars in thousands) | |||||||||||
2021 Increase From 2020 | |||||||||||
$ | % | ||||||||||
Personnel-related | 1,615 | 18.4 | % | ||||||||
Facilities and information technology | 878 | 35.7 | % | ||||||||
Consulting and outside services | 645 | 32.3 | % | ||||||||
Other | 368 | 92.4 | % | ||||||||
Total R&D expenses decrease | $ | 3,506 | 25.7 | % |
Change in R&D Expenses for the Nine Months Ended September 30, 2021 and 2020 | |||||||||||
(dollars in thousands) | |||||||||||
2021 Increase From 2020 | |||||||||||
$ | % | ||||||||||
Personnel-related | 3,585 | 13.7 | % | ||||||||
Facilities and information technology | 1,484 | 18.9 | % | ||||||||
Consulting and outside services | 536 | 7.8 | % | ||||||||
Computer hardware | 480 | 55.4 | % | ||||||||
Other | 438 | 124.5 | % | ||||||||
Total R&D expenses decrease | $ | 6,523 | 15.5 | % |
Change in Marketing and Selling Expenses for the Three Months Ended September 30, 2021 and 2020 | |||||||||||
(dollars in thousands) | |||||||||||
2021 Increase From 2020 | |||||||||||
$ | % | ||||||||||
Personnel-related | 2,120 | 14.1 | % | ||||||||
Advertising and promotions | 819 | 633.8 | % | ||||||||
Consulting and outside services | 908 | 117.6 | % | ||||||||
Foreign exchange (gains) and losses | 534 | 769.2 | % | ||||||||
Other | 34 | 0.1 | % | ||||||||
Total marketing and selling expenses decrease | $ | 4,415 | 22.1 | % |
Change in Marketing and Selling Expenses for the Nine Months Ended September 30, 2021 and 2020 | |||||||||||
(dollars in thousands) | |||||||||||
2021 Increase (Decrease) From 2020 | |||||||||||
$ | % | ||||||||||
Personnel-related | 4,481 | 10.0 | % | ||||||||
Facilities and information technology | (1,556) | (13.5) | % | ||||||||
Advertising and promotions | 1,182 | 108.8 | % | ||||||||
Foreign exchange (gains) and losses | (204) | (20.1) | % | ||||||||
Consulting and outside services | (794) | (21.2) | % | ||||||||
Other | (1,575) | (59.1) | % | ||||||||
Total marketing and selling expenses increase | $ | 1,534 | 2.4 | % |
Change in G&A Expenses for the Three Months Ended September 30, 2021 and 2020 | |||||||||||
(dollars in thousands) | |||||||||||
2021 Increase From 2020 | |||||||||||
$ | % | ||||||||||
Personnel-related | 1,595 | 26.8 | % | ||||||||
Consulting and outside services | 1,430 | 75.9 | % | ||||||||
Other | 1,080 | 36.5 | % | ||||||||
Total G&A expenses increase | $ | 4,105 | 38.0 | % |
Change in G&A Expenses for the Nine Months Ended September 30, 2021 and 2020 | |||||||||||
(dollars in thousands) | |||||||||||
2021 Increase (Decrease) From 2020 | |||||||||||
$ | % | ||||||||||
Personnel-related | 4,306 | 25.1 | % | ||||||||
Consulting and outside services | 2,472 | 32.0 | % | ||||||||
Facilities and information technology | (1,161) | (20.1) | % | ||||||||
Other | 2,453 | 67.2 | % | ||||||||
Total G&A expenses decrease | $ | 8,070 | 23.6 | % |
Provision for Income Taxes for the Three Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2021 | Change | 2020 | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
Provision for income taxes | $ | 991 | $ | 284 | 40.2% | $ | 707 |
Provision for Income Taxes for the Nine Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2021 | Change | 2020 | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
Provision for income taxes | $ | 1,832 | $ | 286 | 18.5% | $ | 1,546 |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Net cash provided by operating activities | $ | 35,418 | $ | 8,843 | |||||||
Net cash used in investing activities | (4,750) | (5,619) | |||||||||
Net cash used in financing activities | (59,156) | (24,313) | |||||||||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash | (927) | 1,394 | |||||||||
Net decrease in cash, cash equivalents and restricted cash | $ | (29,415) | $ | (19,695) |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced programs | Maximum approximate dollar value of shares that may yet be purchased under the programs | ||||||||||||||||||||||
September 13, 2021 - September 30, 2021 | 412,175 | $ | 27.07 | 412,175 | 103,844 | |||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Description | Filed with this Form 10-Q | Form or Schedule | SEC Filing Date | SEC File Number | |||||||||||||||||||||||||||
3.1 | 8-K | March 31, 2017 | 001-36254 | |||||||||||||||||||||||||||||
3.2 | 10-K | March 9, 2020 | 001-36254 | |||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||
101.INS | eXtensible Business Reporting Language (XBRL) Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||||||||
*101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||
*101.CAL | XBRL Taxonomy Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||
*101.DEF | XBRL Taxonomy Definition Linkbase Document | X | ||||||||||||||||||||||||||||||
*101.LAB | XBRL Taxonomy Label Linkbase Document | X | ||||||||||||||||||||||||||||||
*101.PRE | XBRL Taxonomy Presentation Linkbase Document | X |
AVID TECHNOLOGY, INC. | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | November 9, 2021 | By: | /s/ Kenneth Gayron | |||||||||||
Name: | Kenneth Gayron | |||||||||||||
Title: | Executive Vice President and Chief Financial Officer |
Date: | November 9, 2021 | /s/ Jeff Rosica | |||||||||||||||
Jeff Rosica | |||||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) |
Date: | November 9, 2021 | /s/ Kenneth Gayron | |||||||||||||||
Kenneth Gayron | |||||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: | November 9, 2021 | /s/ Jeff Rosica | ||||||||||||
Jeff Rosica | ||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) |
Date: | November 9, 2021 | /s/ Kenneth Gayron | ||||||||||||
Kenneth Gayron | ||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Net revenues: | ||||
Revenues | $ 101,640 | $ 90,431 | $ 290,880 | $ 256,165 |
Cost of revenues: | ||||
Total cost of revenues | 35,737 | 32,174 | 103,423 | 93,195 |
Gross profit | 65,903 | 58,257 | 187,457 | 162,970 |
Operating expenses: | ||||
Research and development | 17,129 | 13,623 | 48,639 | 42,116 |
Marketing and selling | 24,413 | 19,998 | 66,511 | 64,977 |
General and administrative | 14,901 | 10,796 | 42,214 | 34,144 |
Restructuring costs, net | (88) | 723 | 1,001 | 1,008 |
Total operating expenses | 56,355 | 45,140 | 158,365 | 142,245 |
Operating income | 9,548 | 13,117 | 29,092 | 20,725 |
Interest expense, net | (1,646) | (4,566) | (5,547) | (15,437) |
Other income, net | 7,864 | 143 | 4,459 | 233 |
Income before income taxes | 15,766 | 8,694 | 28,004 | 5,521 |
Provision for income taxes | 991 | 707 | 1,832 | 1,546 |
Net income | $ 14,775 | $ 7,987 | $ 26,172 | $ 3,975 |
Net income per common share – basic | $ 0.32 | $ 0.18 | $ 0.58 | $ 0.09 |
Net income per common share – diluted | $ 0.32 | $ 0.18 | $ 0.56 | $ 0.09 |
Weighted-average common shares outstanding – basic | 45,564 | 44,019 | 45,115 | 43,665 |
Weighted-average common shares outstanding – diluted | 46,428 | 44,758 | 46,449 | 44,498 |
Products | ||||
Net revenues: | ||||
Revenues | $ 36,850 | $ 35,775 | $ 107,295 | $ 98,121 |
Cost of revenues: | ||||
Total cost of revenues | 20,468 | 20,957 | 60,044 | 58,873 |
Services | ||||
Net revenues: | ||||
Revenues | 64,790 | 54,656 | 183,585 | 158,044 |
Cost of revenues: | ||||
Total cost of revenues | $ 15,269 | $ 11,217 | $ 43,379 | $ 34,322 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Net income | $ 14,775 | $ 7,987 | $ 26,172 | $ 3,975 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (738) | 995 | (1,980) | 1,114 |
Comprehensive income (loss) | $ 14,037 | $ 8,982 | $ 24,192 | $ 5,089 |
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts | $ 0 |
FINANCIAL INFORMATION (Notes) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
FINANCIAL INFORMATION | FINANCIAL INFORMATION The accompanying condensed consolidated financial statements include the accounts of Avid Technology, Inc. and its wholly owned subsidiaries (collectively, “we” or “our”). These financial statements are unaudited. However, in the opinion of management, the condensed consolidated financial statements reflect all normal and recurring adjustments necessary for their fair statement. Interim results are not necessarily indicative of results expected for any other interim period or a full year. We prepared the accompanying unaudited condensed consolidated financial statements in accordance with the instructions for Form 10-Q and, therefore, include all information and footnotes necessary for a complete presentation of operations, comprehensive income, financial position, changes in stockholders’ deficit, and cash flows in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying condensed consolidated balance sheet as of December 31, 2020 was derived from our audited consolidated financial statements and does not include all disclosures required by U.S. GAAP for annual financial statements. We filed audited consolidated financial statements as of and for the year ended December 31, 2020 in our Annual Report on Form 10-K for the year ended December 31, 2020, which included information and footnotes necessary for such presentation. The financial statements contained in this Form 10-Q should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020. The consolidated results of operations for the three or nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business and consumer confidence. The novel coronavirus (COVID-19) pandemic, together with the measures implemented or recommended by governmental authorities and private organizations in response to the pandemic, has had a material adverse impact to the Company's business, operating results and financial condition primarily due to reduced demand for our products and services which has led to lower net revenues. The Company began experiencing a significant decline in international and domestic demand due to COVID-19 by the end of the first quarter of 2020, and this reduction in demand continued through the balance of 2020. These economic impacts were the result of, but not limited to: •the postponement or cancellation of film and television productions, major sporting events, and live music events; •delays in purchasing and projects by our enterprise customers and channel partners; •disruption to the supply chain caused by distribution and other logistical issues, including disruptions arising from government restrictions; and •decreased productivity due to travel restrictions, work-from-home policies or shelter-in-place orders. Through 2021, our results have shown a gradual recovery towards pre-pandemic spending levels with the continuing positive signs of recovery from the impacts of the COVID-19 pandemic driven by vaccination and government stimulus programs, particularly in the United States. At the same time, certain countries continue to face challenges with renewed lockdowns and travel restrictions and there remains uncertainty relating to the ongoing spread and severity of the virus and its variants. While we are encouraged by the trends we have seen so far in 2021, to the extent that the pandemic continues to have negative impacts on economies, our results could be affected and uneven. Consequently, we will continue to evaluate our financial position in light of future developments, particularly those relating to COVID-19. Our preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from our estimates. Significant Accounting Policies - Revenue Recognition We enter into contracts with customers that include various combinations of products and services, which are typically capable of being distinct and are accounted for as separate performance obligations. We account for a contract when (i) it has approval and commitment from both parties, (ii) the rights of the parties have been identified, (iii) payment terms have been identified, (iv) the contract has commercial substance, and (v) collectability is probable. We recognize revenue upon transfer of control of promised products or services to customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts, in an amount that reflects the consideration we expect to receive in exchange for those products or services. We often enter into contractual arrangements that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These arrangements may include a combination of products, maintenance, training, and professional services. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price of each distinct performance obligation. See Note 9 for disaggregated revenue schedules and further discussion on revenue and deferred revenue performance obligations and the timing of revenue recognition. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements On January 1, 2021, we adopted ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. Our adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements To Be Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.
|
NET INCOME PER SHARE Earnings Per Share (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME PER SHARE | NET INCOME PER SHARE Net income per common share is presented for both basic income per share (“Basic EPS”) and diluted income per share (“Diluted EPS”). Basic EPS is based on the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and common share equivalents outstanding during the period. The potential common shares that were considered anti-dilutive securities were excluded from the diluted earnings per share calculations for the relevant periods either because the sum of the exercise price per share and the unrecognized compensation cost per share was greater than the average market price of our common stock for the relevant periods, or because they were considered contingently issuable. The contingently issuable potential common shares result from certain stock options and restricted stock units granted to our employees that vest based on performance conditions, market conditions, or a combination of performance and market conditions. The following table sets forth (in thousands) potential common shares that were considered anti-dilutive securities at September 30, 2021 and 2020:
The following table sets forth (in thousands) the basic and diluted weighted common shares outstanding for the three and nine months ended September 30, 2021:
|
FAIR VALUE MEASUREMENTS (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets Measured at Fair Value on a Recurring Basis We measure deferred compensation investments on a recurring basis. As of September 30, 2021 and December 31, 2020, our deferred compensation investments were classified as either Level 1 or Level 2 in the fair value hierarchy. Assets valued using quoted market prices in active markets and classified as Level 1 are money market and mutual funds. Assets valued based on other observable inputs and classified as Level 2 are insurance contracts. The following tables summarize our deferred compensation investments measured at fair value on a recurring basis (in thousands):
Financial Instruments Not Recorded at Fair Value The carrying amounts of our other financial assets and liabilities including cash, accounts receivable, accounts payable, and accrued liabilities approximate their respective fair values because of the relatively short period of time between their origination and their expected realization or settlement.
|
INVENTORIES (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consisted of the following (in thousands):
|
LEASES LEASES (Notes) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES We have entered into a number of facility leases to support our research and development activities, sales operations, and other corporate and administrative functions in North America, Europe, and Asia, which qualify as operating leases under U.S. GAAP. We also have a limited number of equipment leases that qualify as either operating or finance leases. We determine if contracts with vendors represent a lease or have a lease component under U.S. GAAP at contract inception. Our leases have remaining terms ranging from less than one year to seven years. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. As our leases generally do not provide an implicit rate, we use an estimated incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular location and currency environment. As of September 30, 2021, the weighted average incremental borrowing rate was 6.0% and the weighted average remaining lease term was 6.0 years. Finance lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. Each lease agreement provides an implicit discount rate used to determine the present value of future payments. As of September 30, 2021, the weighted-average discount rate was 2.3% and the weighted average remaining lease term was 2.0 years. Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. Our total operating lease costs were $1.7 million and $2.2 million for the three months ended September 30, 2021 and September 30, 2020, respectively, and $5.4 million and $7.2 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. Related cash payments were $1.9 million and $2.0 million for the three months ended September 30, 2021 and September 30, 2020, respectively, and were $5.8 million and $6.9 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. Short term lease costs were $0.4 million and $1.0 million for the three and nine months ended September 30, 2021, respectively. Short term lease costs for the three and nine months ended September 30, 2020 were immaterial. Operating lease costs are included within research and development, marketing and selling, and general and administrative lines on the condensed consolidated statements of operations, and the related cash payments are included in the operating cash flows on the condensed consolidated statements of cash flows. Finance lease costs, variable lease costs, and sublease income are not material. The table below reconciles the undiscounted future minimum lease payments for operating and finance leases under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2021 (in thousands):
Supplemental balance sheet information related to leases was as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES We have entered into a number of facility leases to support our research and development activities, sales operations, and other corporate and administrative functions in North America, Europe, and Asia, which qualify as operating leases under U.S. GAAP. We also have a limited number of equipment leases that qualify as either operating or finance leases. We determine if contracts with vendors represent a lease or have a lease component under U.S. GAAP at contract inception. Our leases have remaining terms ranging from less than one year to seven years. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. As our leases generally do not provide an implicit rate, we use an estimated incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular location and currency environment. As of September 30, 2021, the weighted average incremental borrowing rate was 6.0% and the weighted average remaining lease term was 6.0 years. Finance lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. Each lease agreement provides an implicit discount rate used to determine the present value of future payments. As of September 30, 2021, the weighted-average discount rate was 2.3% and the weighted average remaining lease term was 2.0 years. Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. Our total operating lease costs were $1.7 million and $2.2 million for the three months ended September 30, 2021 and September 30, 2020, respectively, and $5.4 million and $7.2 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. Related cash payments were $1.9 million and $2.0 million for the three months ended September 30, 2021 and September 30, 2020, respectively, and were $5.8 million and $6.9 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. Short term lease costs were $0.4 million and $1.0 million for the three and nine months ended September 30, 2021, respectively. Short term lease costs for the three and nine months ended September 30, 2020 were immaterial. Operating lease costs are included within research and development, marketing and selling, and general and administrative lines on the condensed consolidated statements of operations, and the related cash payments are included in the operating cash flows on the condensed consolidated statements of cash flows. Finance lease costs, variable lease costs, and sublease income are not material. The table below reconciles the undiscounted future minimum lease payments for operating and finance leases under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2021 (in thousands):
Supplemental balance sheet information related to leases was as follows (in thousands):
|
OTHER LONG-TERM LIABILITIES (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Other long-term liabilities consisted of the following (in thousands):
|
CONTINGENCIES (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments We entered into a long-term agreement to purchase a variety of information technology solutions from a third party in the second quarter of 2020, which included an unconditional commitment to purchase a minimum of $32.2 million of products and services over the initial five years of the agreement. We have purchased $9.2 million of products and services pursuant to this agreement as of September 30, 2021. We have letters of credit that are used as security deposits in connection with our leased Burlington, Massachusetts office space. In the event of default on the underlying leases, the landlords would, at September 30, 2021, be eligible to draw against the letters of credit to a maximum of $0.7 million in the aggregate. The letters of credit are subject to aggregate reductions provided that we are not in default under the underlying leases and meet certain financial performance conditions. In no case will the letters of credit amounts for the Burlington leases be reduced to below $0.7 million in the aggregate throughout the lease periods. We also have letters of credit in connection with security deposits for other facility leases totaling $0.6 million in the aggregate, as well as letters of credit totaling $1.9 million that otherwise support our ongoing operations. These letters of credit have various terms and expire during 2021 and beyond, while some of the letters of credit may automatically renew based on the terms of the underlying agreements. Substantially all of our letters of credit are collateralized by restricted cash included in the caption “Restricted cash” and “Other long-term assets” on our condensed consolidated balance sheets as of September 30, 2021. Contingencies Our industry is characterized by the existence of a large number of patents and frequent claims and litigation regarding patent and other intellectual property rights. In addition to the legal proceedings described below, we are involved in legal proceedings from time to time arising from the normal course of business activities, including claims of alleged infringement of intellectual property rights and contractual, commercial, employee relations, product or service performance, or other matters. We do not believe these matters will have a material adverse effect on our financial position or results of operations. However, the outcome of legal proceedings and claims brought against us is subject to significant uncertainty. Therefore, our financial position or results of operations may be negatively affected by the unfavorable resolution of one or more of these proceedings for the period in which a matter is resolved. Our results could be materially adversely affected if we are accused of, or found to be, infringing third parties’ intellectual property rights. Following the termination of our former Chairman and Chief Executive Officer on February 25, 2018, we received a notice alleging that we breached the former executive’s employment agreement. On April 16, 2019, we received an additional notice again alleging we breached the former executive’s employment agreement. We have since been in communications with our former Chairman and Chief Executive Officer’s counsel. While we intend to defend any claim vigorously, when and if a claim is actually filed, we are currently unable to estimate an amount or range of any reasonably possible losses that could occur as a result of this matter. On July 14, 2020, we sent a notice to a customer demanding sums that we believe are due to Avid pursuant to a contract. On October 7, 2020, the customer sent a notice to us denying any legal liability and demanding payment for breach of contract resulting from various alleged delays by us. While we intend to defend any claim vigorously when and if a claim is actually filed, we are currently unable to estimate an amount or range of any reasonably possible losses that could occur related to this matter. We consider all claims on a quarterly basis and based on known facts assess whether potential losses are considered reasonably possible, probable, and estimable. Based upon this assessment, we then evaluate disclosure requirements and whether to accrue for such claims in our condensed consolidated financial statements. We record a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. At September 30, 2021 and as of the date of filing of these condensed consolidated financial statements, we believe that, other than as set forth in this note, no provision for liability nor disclosure is required related to any claims because: (a) there is no reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim, (b) a reasonably possible loss or range of loss cannot be estimated, or (c) such estimate is immaterial. Additionally, we provide indemnification to certain customers for losses incurred in connection with intellectual property infringement claims brought by third parties with respect to our products. These indemnification provisions generally offer perpetual coverage for infringement claims based upon the products covered by the agreement and the maximum potential amount of future payments we could be required to make under these indemnification provisions is theoretically unlimited. To date, we have not incurred material costs related to these indemnification provisions; accordingly, we believe the estimated fair value of these indemnification provisions is immaterial. Further, certain of our arrangements with customers include clauses whereby we may be subject to penalties for failure to meet certain performance obligations; however, we have not recorded any related material penalties to date. We provide warranties on externally sourced and internally developed hardware. For internally developed hardware, and in cases where the warranty granted to customers for externally sourced hardware is greater than that provided by the manufacturer, we record an accrual for the related liability based on historical trends and actual material and labor costs. The following table sets forth the activity in the product warranty accrual account for the nine months ended September 30, 2021 and 2020 (in thousands):
The warranty accrual is included in the caption “accrued expenses and other current liabilities” in our condensed consolidated balance sheet.
|
RESTRUCTURING COSTS AND ACCRUALS (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING COSTS AND ACCRUALS | RESTRUCTURING COSTS AND ACCRUALS In October 2020, we committed to a restructuring plan in order to undergo a strategic reorganization of our business. The strategic reorganization involved significant changes in business operations to better support our strategy and overall performance. The restructuring plan related to our strategic reorganization is expected to be substantially completed in 2021. During the three months ended September 30, 2021, we recorded recoveries of $0.1 million due to employee severance cost adjustments. During the nine months ended September 30, 2021, we recorded restructuring charges of $1.0 million for employee severance costs related to approximately 24 positions eliminated throughout 2021. During the three months and nine months ended September 30, 2020, we recorded restructuring charges of $0.7 million and $1.0 million, respectively, for employee severance costs. The following table sets forth the activity in the restructuring accruals for the nine months ended September 30, 2021 (in thousands):
The employee restructuring accrual at September 30, 2021 represents severance costs to former employees that will be paid out within 12 months, and is, therefore, included in the caption “accrued expenses and other current liabilities” in our condensed consolidated balance sheets as of September 30, 2021.
|
REVENUE (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE Disaggregated Revenue and Geography Information Through the evaluation of the discrete financial information that is regularly reviewed by the chief operating decision makers (our chief executive officer and chief financial officer), we have determined that we have one reportable segment. The following table is a summary of our revenues by type for the three and nine months ended September 30, 2021 and 2020 (in thousands):
The following table sets forth our revenues by geographic region for the three and nine months ended September 30, 2021 and 2020 (in thousands):
Contract Asset Contract asset activity for the nine months ended September 30, 2021 and 2020 was as follows (in thousands):
Deferred Revenue Deferred revenue activity for the nine months ended September 30, 2021 and 2020 was as follows (in thousands):
A summary of the significant performance obligations included in deferred revenue is as follows (in thousands):
Remaining Performance Obligations For transaction prices allocated to remaining performance obligations, we apply practical expedients and do not disclose quantitative or qualitative information for remaining performance obligations (i) that have original expected durations of one year or less and (ii) where we recognize revenue equal to what we have the right to invoice and that amount corresponds directly with the value to the customer of our performance to date. Historically, for many of our products, we had an ongoing practice of making when-and-if-available software updates available to customers free of charge for a period of time after initial sales to customers. The expectation created by this practice of providing free Software Updates represents an implied obligation of a form of post-contract customer support (“Implied PCS”) which represents a performance obligation. While we have ceased providing Implied PCS on new product offerings, we continue to provide Implied PCS for older products that were predominately sold in prior years. Revenue attributable to Implied PCS performance obligations is recognized over time on a ratable basis over the period that Implied PCS is expected to be provided, which is typically six years. We have remaining performance obligations of $6.4 million attributable to Implied PCS recorded in deferred revenue as of September 30, 2021. We expect to recognize revenue for these remaining performance obligations of $0.7 million for the remainder of 2021 and $2.2 million, $1.5 million, $1.0 million and $0.6 million for the years ending December 31, 2022, 2023, 2024, and 2025, respectively, and $0.4 million thereafter. As of September 30, 2021, we had approximately $40.7 million of transaction price allocated to remaining performance obligations for certain enterprise agreements that have not yet been fully invoiced. Approximately $32.0 million of these performance obligations were unbilled as of September 30, 2021. Remaining performance obligations represent obligations we must deliver for specific products and services in the future where there is not yet an enforceable right to invoice the customer. Our remaining performance obligations do not include contractually committed minimum purchases that are common in our strategic purchase agreements with resellers since our specific obligations to deliver products or services is not yet known, as customers may satisfy such commitments by purchasing an unknown combination of current or future product offerings. While the timing of fulfilling individual performance obligations under the contracts can vary dramatically based on customer requirements, we expect to recognize the $40.7 million in roughly equal installments through 2026. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations due to contract breach, contract amendments, and changes in the expected timing of delivery.
|
LONG-TERM DEBT AND CREDIT AGREEMENT (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG TERM DEBT AND CREDIT AGREEMENT | LONG-TERM DEBT AND CREDIT AGREEMENT Long-term debt consisted of the following (in thousands):
The following table summarizes the contractual maturities of our borrowing obligations as of September 30, 2021 (in thousands):
Credit Agreement On January 5, 2021, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. as collateral and administrative agent, and a syndicate of banks, as lenders thereunder (the “Lenders”). Pursuant to the Credit Agreement, the Lenders agreed to provide the Company with (a) a term loan in the aggregate principal amount of $180.0 million (the “Term Loan”) and (b) a revolving credit facility (the “Credit Facility”) of up to a maximum of $70.0 million in borrowings outstanding at any time. The Credit Facility, which was undrawn at closing, can be used for working capital, other general corporate purposes and for other permitted uses. The proceeds from the Term Loan, plus available cash on hand, were used to repay outstanding borrowings of $201 million under the Company’s prior financing agreement with Cerberus Business Finance, LLC ( the “Financing Agreement”), which was then terminated. As a result of this termination, the Company incurred a loss on extinguishment of debt of $3.7 million as a result of writing off $2.6 million of remaining unamortized issuance costs as well as a $1.1 million prepayment penalty. The Term Loan has an initial interest rate of LIBOR plus an applicable margin of 3.00%, with a 0.25% LIBOR floor. The applicable margin on the Term Loan and the Credit Facility ranges from 2.00% to 3.25%, depending on leverage. The effective interest rate for the three months ended September 30, 2021 was 2.86%. The Term Loan requires quarterly principal payments which commenced in March 2021 equal to 5.0% of the original principal amount of the Term Loan in years one and two, 7.5% of the original principal amount of the Term Loan in year three, and 10% of the original principal amount of the Term Loan in years four and five, with the remaining aggregate principal amount due at maturity. The Company granted a security interest on substantially all of its assets to secure the obligations under the Credit Facility and the Term Loan. The Credit Agreement contains two financial covenants: (i) a requirement to maintain a total net leverage ratio, as defined in the Credit Agreement, of no more than 4.00 to 1.00 through June 30, 2021, with step downs thereafter, and (ii) a requirement to maintain a fixed charge coverage ratio, as defined in the Credit Agreement, of no less than 1.20 to 1.00. Both the Term Loan and the revolving Credit Facility mature on January 5, 2026. We were in compliance with the Credit Agreement covenants as of September 30, 2021. In connection with the Credit Agreement, the Company incurred $2.5 million of issuance discounts and an immaterial amount of issuance costs. The Term Loan discount and issuance costs will be amortized over the five year life of the Credit Agreement. We recorded $1.3 million and $4.1 million of interest expense on the Term Loan for the three and nine months ended September 30, 2021, respectively. As of September 30, 2021, there were no amounts drawn under the Credit Facility. PPP Loan On May 11, 2020, the Company received $7.8 million of proceeds in connection with its incurrence of a loan under the Paycheck Protection Program (“PPP”) which was created through the Coronavirus Aid, Relief, and Economic Act (“CARES Act”) and is administered by the U.S. Small Business Administration (“SBA”). The application for these funds required the Company to, in good faith, certify that the economic uncertainty at the time of application made the loan request necessary to support the ongoing operations of the Company. This certification further required the Company to take into account its then-current business activity and ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of the loan attendant to these funds, was dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on its future adherence to the forgiveness criteria. On July 6, 2021, the Company received notification from the Lender that the SBA approved the Company’s PPP loan forgiveness application for the entire PPP loan balance of $7.8 million plus all accrued interest. The Company recorded the forgiveness of $7.8 million of principal as a gain on forgiveness of debt, included in the Statements of Operations as other income.
|
STOCKHOLDERS' EQUITY (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock-Based Compensation Information with respect to the Company’s option shares granted under all of our stock incentive plans for the nine months ended September 30, 2021 was as follows:
Information with respect to the Company’s non-vested restricted stock units for the nine months ended September 30, 2021 was as follows:
Information with respect to the Company’s non-vested performance-based restricted stock units for the nine months ended September 30, 2021 was as follows:
Stock-based compensation was included in the following captions in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in thousands):
|
FINANCIAL INFORMATION (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue from Contract with Customer | Significant Accounting Policies - Revenue Recognition We enter into contracts with customers that include various combinations of products and services, which are typically capable of being distinct and are accounted for as separate performance obligations. We account for a contract when (i) it has approval and commitment from both parties, (ii) the rights of the parties have been identified, (iii) payment terms have been identified, (iv) the contract has commercial substance, and (v) collectability is probable. We recognize revenue upon transfer of control of promised products or services to customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts, in an amount that reflects the consideration we expect to receive in exchange for those products or services. We often enter into contractual arrangements that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These arrangements may include a combination of products, maintenance, training, and professional services. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price of each distinct performance obligation. See Note 9 for disaggregated revenue schedules and further discussion on revenue and deferred revenue performance obligations and the timing of revenue recognition.
|
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements On January 1, 2021, we adopted ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. Our adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements To Be Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.
|
NET INCOME PER SHARE Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded From Computation of Net (Income) Loss Per Share | The following table sets forth (in thousands) potential common shares that were considered anti-dilutive securities at September 30, 2021 and 2020:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | The following table sets forth (in thousands) the basic and diluted weighted common shares outstanding for the three and nine months ended September 30, 2021:
|
FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | The following tables summarize our deferred compensation investments measured at fair value on a recurring basis (in thousands):
|
INVENTORIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following (in thousands):
|
LEASES LEASES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Lease, Liability, Maturity | The table below reconciles the undiscounted future minimum lease payments for operating and finance leases under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2021 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Lease, Liability, Maturity | The table below reconciles the undiscounted future minimum lease payments for operating and finance leases under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2021 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities, Lessee | Supplemental balance sheet information related to leases was as follows (in thousands):
|
OTHER LONG-TERM LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term liabilities | Other long-term liabilities consisted of the following (in thousands):
|
CONTINGENCIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product warranty accrual activity | The following table sets forth the activity in the product warranty accrual account for the nine months ended September 30, 2021 and 2020 (in thousands):
|
RESTRUCTURING COSTS AND ACCRUALS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The following table sets forth the activity in the restructuring accruals for the nine months ended September 30, 2021 (in thousands):
|
REVENUE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Type | The following table is a summary of our revenues by type for the three and nine months ended September 30, 2021 and 2020 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Geographic Region | The following table sets forth our revenues by geographic region for the three and nine months ended September 30, 2021 and 2020 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Asset | Contract Asset Contract asset activity for the nine months ended September 30, 2021 and 2020 was as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue | Deferred revenue activity for the nine months ended September 30, 2021 and 2020 was as follows (in thousands):
A summary of the significant performance obligations included in deferred revenue is as follows (in thousands):
|
LONG-TERM DEBT AND CREDIT AGREEMENT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | The following table summarizes the contractual maturities of our borrowing obligations as of September 30, 2021 (in thousands):
|
STOCKHOLDERS' EQUITY (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Activity | Information with respect to the Company’s option shares granted under all of our stock incentive plans for the nine months ended September 30, 2021 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | Information with respect to the Company’s non-vested restricted stock units for the nine months ended September 30, 2021 was as follows:
Information with respect to the Company’s non-vested performance-based restricted stock units for the nine months ended September 30, 2021 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Stock-based compensation was included in the following captions in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in thousands):
|
NET INCOME PER SHARE Earnings Per Share (Details) - shares shares in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ||
Anti-dilutive potential common shares (in thousands of shares) | 930 | 3,610 |
Options | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ||
Anti-dilutive potential common shares (in thousands of shares) | 0 | 390 |
Non-vested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ||
Anti-dilutive potential common shares (in thousands of shares) | 930 | 3,220 |
NET INCOME PER SHARE Weighted Average Shares Outstanding (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding – basic | 45,564 | 44,019 | 45,115 | 43,665 |
Net effect of common stock equivalents | 864 | 739 | 1,334 | 833 |
Weighted-average common shares outstanding – diluted | 46,428 | 44,758 | 46,449 | 44,498 |
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Financial Assets: | ||
Deferred compensation assets | $ 372 | $ 522 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets: | ||
Deferred compensation assets | 99 | 282 |
Significant Other Observable Inputs (Level 2) | ||
Financial Assets: | ||
Deferred compensation assets | 273 | 240 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Deferred compensation assets | $ 0 | $ 0 |
INVENTORIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,710 | $ 8,223 |
Work in process | 304 | 353 |
Finished Goods | 15,201 | 17,992 |
Total inventory | 22,215 | 26,568 |
Finished goods, consigned | $ 1,600 | $ 1,200 |
LEASES LEASES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% | 6.00% | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years | 6 years | ||
Finance Lease, Weighted Average Discount Rate, Percent | 2.30% | 2.30% | ||
Finance Lease, Weighted Average Remaining Lease Term | 2 years | 2 years | ||
Operating Lease, Cost | $ 1,700 | $ 2,200 | $ 5,400 | $ 7,200 |
Operating Lease, Payments | 1,900 | $ 2,000 | 5,800 | $ 6,900 |
2024 | 4,942 | 4,942 | ||
2025 | 5,031 | 5,031 | ||
2023 | $ 5,613 | $ 5,613 | ||
Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | ||
Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 7 years | 7 years |
LEASES Maturity Schedule (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 (excluding nine months ended September 30, 2021) | $ 1,847 |
2022 | 6,549 |
2023 | 5,613 |
2024 | 4,942 |
2025 | 5,031 |
Thereafter | 11,695 |
Total future minimum lease payments | 35,677 |
Less effects of discounting | (6,004) |
Total lease liabilities | (29,673) |
Finance Lease, Liability, Payment, Due [Abstract] | |
2021 (excluding nine months ended September 30, 2021) | 167 |
2022 | 255 |
2023 | 226 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total future minimum lease payments | 648 |
Less effects of discounting | (13) |
Total lease liabilities | $ 635 |
LEASES Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Right of use assets | $ 25,202 | $ 29,430 |
Accrued expenses and other current liabilities | (5,207) | |
Long-term lease liabilities | (24,466) | (28,462) |
Total lease liabilities | (29,673) | |
Other assets | 490 | |
Accrued expenses and other current liabilities | (246) | |
Other long-term liabilities | (389) | $ (472) |
Total lease liabilities | $ (635) |
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation | $ 5,407 | $ 5,818 |
Finance Lease, Liability, Noncurrent | 389 | 472 |
Other long-term liabilities | 1,453 | 1,496 |
Total | $ 7,249 | $ 7,786 |
RESTRUCTURING COSTS AND ACCRUALS (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2021
USD ($)
position
|
Sep. 30, 2020
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | position | 24 | |||
Restructuring charges | $ (88) | $ 723 | $ 1,001 | $ 1,008 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | 100 | |||
Restructuring charges | 700 | 1,000 | ||
Restructuring accrual [Roll Forward] | ||||
Accrual balance at beginning of year | 3,687 | |||
New restructuring charges - operating expenses | 838 | |||
Cash payments | (3,778) | |||
Foreign exchange impact on ending balance | (24) | |||
Accrual balance at end of period | $ 723 | $ 723 |
REVENUE Revenue by Type (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2020
USD ($)
|
|
Revenue from Contract with Customer [Abstract] | ||||
Number of reportable segments | 1 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 101,640 | $ 90,431 | $ 290,880 | $ 256,165 |
Products and solutions net revenues | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 36,850 | 107,295 | ||
Subscription services | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 28,008 | 17,907 | 74,384 | 48,292 |
Maintenance | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 30,702 | 30,826 | 90,997 | 93,190 |
Professional services, training and other services | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 6,080 | $ 5,923 | $ 18,204 | $ 16,562 |
REVENUE Revenue by Geographic Regions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 101,640 | $ 90,431 | $ 290,880 | $ 256,165 |
United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 45,026 | 36,190 | 126,084 | 105,166 |
Other Americas | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 5,222 | 4,505 | 15,030 | 15,841 |
Europe, Middle East and Africa | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 38,782 | 37,537 | 109,400 | 99,478 |
Asia-Pacific | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 12,610 | $ 12,199 | $ 40,366 | $ 35,680 |
REVENUE Contract Asset (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Change in Contract with Customer, Asset [Abstract] | ||
Contract asset at beginning of year | $ 18,579 | $ 19,494 |
Revenue in excess of billings | 43,757 | 22,045 |
Customer billings | (39,724) | (26,263) |
Contract asset at end of period | $ 22,612 | $ 15,276 |
REVENUE Deferred Revenue Activity (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Movement in Deferred Revenue [Roll Forward] | ||
Deferred revenue at beginning of period | $ 99,258 | $ 97,901 |
Billings deferred | 56,846 | 47,723 |
Recognition of prior deferred revenue | (69,337) | (64,460) |
Deferred revenue at end of period | 86,767 | 81,164 |
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 40,700 | |
Deferred Revenue | 86,767 | $ 81,164 |
Products | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 4,364 | |
Subscription services | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 7,380 | |
Maintenance contracts | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 66,676 | |
Implied PCS | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 6,400 | |
Professional services, training and other | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | $ 1,947 |
LONG-TERM DEBT AND CREDIT AGREEMENT - SCHEDULE OF LONG TERM DEBT (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Term Loan, net of unamortized issuance costs and debt discount of $2,188 and $2,579 at September 30, 2021 and December 31, 2020, respectively | $ 171,062 | |
Other long-term debt | 1,087 | |
Total debt | 172,149 | $ 207,700 |
Less: current portion | 9,159 | 4,941 |
Total long-term debt | 162,990 | $ 202,759 |
Federal Home Loan Bank Advances [Member] | ||
Debt Instrument [Line Items] | ||
PPP loan | $ 0 |
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 09, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 115,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 103,800 | |
Stock Repurchased During Period, Value | $ 11,169 | |
Treasury Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchased During Period, Shares | 412,175 | |
Stock Repurchased During Period, Value | $ 11,169 |
^_6.;/\HV_>R=Q=D$VYGR&O9:81"-ANS;;CM[%PVPIPM:TLX\(1N0/>Q
MS7]_6KEW)=V;,-0US7%,[-!K5'LD,9S+)3CI*3?/WZC:,:&!X]8RA[>?[@FH
M=D9:P\C:M]E&&MNT?EO:9P65<[#W6RG-F^$Z]_A0Q7\!4$L#!!0 ( (.(
M:5.R(2YF! D +8T 8 >&PO=V]R:W-H965T 85/$D(#XNJ,=J+:C
M2NI@M]89E,)-"8-#9FR1#E3;<:5TL%OJ#!9IV%04D9EOW:!VZ:M$!^DO.@R2
M^M<^=9,4 >6&SR(]U37 =JK3%/04L"9)JOJGQ1'L%H=4LJ,V:1"2RN1IF38E
M-XA;;G23%#%%A:1E[%M3%CDZK^AS8'&:/$M,5B=>8'=:T3KIH/6A>9:8K(_U
M56:>-Q!]C9E6SFVK0:D&TG$B\0,IE@!'#"0RMD('JNVH8FCB9N@A*9:8#!Q$
MH5X%=Z':CBN6)FZ6'IQBB4FN4:37P1V@MN^*@(F;@(?5 00X5P#K@ ;HK@,
M:W = '8+U@$0TEX'$"4'B%L.]$BQ)ITSA@FU9RM%Z<1-Z3W.A(&C!QD6QZ&P
MXF3Z3QX$P,N&0A0I4XA>ND\HP,Q,SYJ -;EL?)^'VK(!N\6^I&8M4 VMKH2L="
M93EA.<+,Y^+%5PI9-T,5U@>_W5_J6ZKSEH3GA9S"Q]5A$$]-.4 <9C!S/
M'V4(TH^MH\P<=0A,%%XZSH+D0D)(#\UTWT%1; F?:TIMQ&JM7D
M6_/)^&A#R9$"Q7@0>+X>;/.L0!?WL*6C;-,>
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M .Y)@]BWW%4R)6+8T.,%!APO<,\56R5&6/][BQYGX'"$H6L$*!LSX/;"R,:
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MH?K9Q^&G2E=_ U!+ P04 " "#B&E3@Q![\>,( %)0 & 'AL+W=O
M
IFOT^KQX^L$,?+"9X\_?"3;W=2_3"[NCBD
M6[9F\M=A5<&WV6F4G.]967-1HHIM+B?7^,,R"M0%K<5_.3O6@\](3>5.B-_J
MRY?\?GT;_W$X>)G.7UFPI
MBK]X+G>7DV2"
MM*A<)11L*YW1MW9]D&'Y#.2
M+7SP/AO%)=3[Y#P:-854_HW?&>BBDRV= #YUU_ J!-I4Q&3I]44WNYJDJS$9
M:H6EL'#F.F:R/8R;?>!SS%KG3<NN[1-[',,4ICJ&,;]"C@ASD"?)R
M#LKO"?%=J3>5MSG:;N=[KH]&F(YA0[T;61!RM_=U#_1+!Q1=+\CNW([)+N0.
MOD(R. &MG#1E[.L^4 _LF[:AWID=_?UORS@.?QE%KAN)?B%?D?GNWG;/>.>4
M?=W)4@P^DPLT3#Z(P.U6)+R
M7._B)[]UWV'MGN "S)L<%I RD4)6HW>B56$MWY>\CZ9'[ R/H9$7C@86A"/
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MJW*AQ97ER;DR/;@9XLRVE?LO;P)"I$OBL#I
6_'+.G'QA64='?S
M&"B$YE?H5+?TXZWJJA+HLJ<$GJD&N&S&O6;R$EY7I,^CE)F7U58)ZB?S0D@O
M]')"?'[X<_=:T[6Q)C&ZL2RD4U@6A:XI(MY73M]-RHHDKVDBTIH(/[OI@?.Z
M&,*-DKLWKL-.5&,0IV&:YWWE&C3U&GXK[Q/L/W@N'>UT.OK/G..4R#0XXI'W
M4XMD,NVE2ZH:GE)5]&08+%'O_,AKP*NWF0N[W6ZJ7C;#Y*-Y,Y+?,KWCTE#\
M+;F.SB_HZU
#Q^6/V]W7QII@-
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M6-.C$;JM!9W!_;:H4LOFYCXJ!=>Y0L!32)$I6T.Y =G5?NZ:NP:3U!C;0G
^$V3OOXHPZ .)H&'0##%N X5& KW:Y#I?7<&_6,#Y0
M-J-VRM%_+IM1UY)%W51Q2Q6_(Q'\I7:.(\3[",$H?E,S\=ZNZX7# Q73]UX^
MOMZ_JIG&Z15!% S>$+@[)X$YAK]0N6&%PBG6*//.AQBFK$^VNJ-%:0^'I=!X
MU-AFAG\#(,T ?+\60C]WS'G3_E],_P!02P,$% @ @XAI4]RGGZF/ @
M8 8 !D !X;"]W;W)K
%Z0R:-/)IXW7TX^+\A''R2-$_&)?"!Q1IXC
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M$/"")F02_HD]&"]&V93)_DD187";8SNH^0S^FRH:GWCK#+"CF507YG"-K6
MX<:PWI$@6D7JVYPE"<'+>T=YV)89^^AJLEMCL4_"BB:ZR*@D*]C$6:9P\=B_
M N6-UXA]XK?;[??.^.T
7CG*:7/#,6J=<[G1Y,2&LP),51"X*FN5
MGS(%4Y.9A(-?MRMAUO\=('1;0M<0NF<(OU?%2NED&]6"2L9EO,H)$&2K&I/L
MR[Q9K#V.PM@+PFZO4>LU.E_=IG5G_45'RC=^/\;!@<&.,!SAR.]V
M&+<.X__L/[#$5+0$07G2Y3<^ZBK&40\?V#V.ZH4XC@[
[+U