Commitments and Contingencies

9 Months Ended

Mar. 31, 2014

Commitments and Contingencies

Commitments and Contingencies

11. Commitments and Contingencies

Operating Leases

In January 2014, we entered into a lease agreement for office space in Bedford, Massachusetts. The initial term of the lease with respect to 105,874 square feet of office space will commence on November 1, 2014 and on February 1, 2015 with respect to an additional 36,799 square feet of space.  The initial term of the lease will expire approximately ten years and five months following the term commencement date.  Subject to the terms and conditions of the lease, we may extend the term of the lease for two successive terms of five years each. Base annual rent will range between approximately $2.2 million and $3.9 million over the term of the lease in addition to our proportionate share of operating expenses and real estate taxes.

Future minimum non-cancelable lease payments under the terms of the lease amount to approximately $35.8 million and are as follows:

Year Ended June 30,	Payments
	(Dollars in Thousands)
2015	$	947
2016	3,258
2017	3,329
2018	3,400
2019	3,472
Thereafter	21,401
Total	$	35,807

Other

In the ordinary course of business, we are, from time to time, involved in lawsuits, claims, investigations, proceedings and threats of litigation, including proceedings related to intellectual property rights. These matters include an April 2004 claim by a customer that certain of our software products and implementation services failed to meet the customer’s expectations. In March 2014, a judgment was issued in favor of the claimant customer against us in the amount of approximately $2.6 million plus interest and a portion of legal fees. We plan to appeal the judgment.

While the outcome of the proceedings and claims referenced above cannot be predicted with certainty, there are no such matters as of March 31, 2014 that, in the opinion of management, are reasonably possible to have a material adverse effect on our financial position, results of operations or cash flows. Liabilities, if applicable, related to the aforementioned matters discussed in this Note have been included in our accrued liabilities at March 31, 2014 and June 30, 2013, and are not material to our financial position for the periods then ended. As of March 31, 2014, we do not believe that there is a reasonable possibility of a material loss exceeding the amounts already accrued for the proceedings or matters discussed above. However, the results of litigation (including the above-referenced appeal) and claims cannot be predicted with certainty, and unfavorable resolutions are possible and could materially affect our results of operations, cash flows or financial position. Also, regardless of the outcome, litigation could have an adverse impact on us because of litigation fees and costs, diversion of management resources and other factors.