Significant Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

Revenue Classification and Revenue Recognition Methodology

The following table summarizes the changes to our revenue classifications and the timing of revenue recognition of subscription and software revenue for fiscal 2012 compared to fiscal 2011 and fiscal 2010.  Ratable revenue refers to product revenue that is recognized evenly over the term of the related agreement, beginning when the first payment becomes due.  The residual method refers to the recognition of the difference between the total arrangement fee and the undiscounted VSOE of fair value for the undelivered element, assuming all other revenue recognition requirements have been met.

	Revenue Classification in Income Statement		Revenue Recognition Methodology
	Fiscal 2012	Fiscal 2011 and 2010	Fiscal 2012	Fiscal 2011 and 2010
Type of Revenue:
aspenONE subscription	Subscription and software	Subscription	Ratable	Ratable
Point products
- Software	Subscription and software	Software	Ratable	Residual method
- Bundled SMS	Subscription and software	Services and other	Ratable	Ratable
Other
- Legacy arrangements	Subscription and software	Software	Residual method	Residual method
- Perpetual arrangements	Subscription and software	Software	Residual method	Residual method

Reconciliation of Revenue Recognized

The following tables reconcile the amount of revenue recognized during the three and six months ended December 31, 2011 and 2010, based on the revenue recognition methodology.  As illustrated below, the introduction of our enhanced SMS offering in fiscal 2012 has resulted in a substantial majority of our subscription and software revenue being recognized on a ratable basis in fiscal 2012.

	Three Months Ended December 31,				Three Months Ended December 31,
	2011		2010		2011			2010
	(Dollars in thousands)				% of Total
Subscription and software revenue:
Ratable (1)	$	31,726	$	11,847		68.2	%		46.8	%
Residual method (2)		14,776		13,486		31.8			53.2
Subscription and software revenue	$	46,502	$	25,333		100.0	%		100.0	%

	Six Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011			2010
	(Dollars in thousands)				% of Total
Subscription and software revenue:
Ratable (1)	$	60,181	$	21,504		76.7	%		48.5	%
Residual method (2)		18,231		22,796		23.3			51.5
Subscription and software revenue	$	78,412	$	44,300		100.0	%		100.0	%

(1) During the three and six months ended December 31, 2010, the fair value of the SMS element of point product arrangements totaled $0.6 million and $1.0 million, respectively and was presented in the statements of operations as services and other revenue.  Effective July 1, 2011, the fee attributable to the SMS in point product arrangements is no longer separable, because we are unable to establish VSOE of fair value, and as a result, is included within ratable revenue.

(2) Residual method revenue detail	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
	(Dollars in thousands)				(Dollars in thousands)
Residual method revenue:
Point products - Software		*	$	4,169		*	$	9,779
Legacy arrangements		13,668		9,045		16,784		11,876
Perpetual arrangements		1,108		272		1,447		1,141
Total residual method revenue	$	14,776	$	13,486	$	18,231	$	22,796

* Effective July 1, 2011, the total combined arrangement fee (which includes the fee attributable to SMS) for point product arrangements with enhanced SMS is recognized on a ratable basis.

Net Current and Non-Current Installments Receivable and Allowance for Doubtful Accounts

The following table summarizes our net current and non-current installments receivable, net of related unamortized discount and allowance for doubtful accounts balances at December 31, 2011 and June 30, 2011 (dollars in thousands):

	Current			Non-current			Total
December 31, 2011
Installments receivable, gross	$	39,639		$	37,891		$	77,530
Less:  Unamortized discount		(1,630	)		(4,500	)		(6,130	)
Less:  Allowance for doubtful accounts		(661	)		(64	)		(725	)
Installments receivable, net	$	37,348		$	33,327		$	70,675
June 30, 2011
Installments receivable, gross	$	41,407		$	55,277		$	96,684
Less:  Unamortized discount		(1,937	)		(7,383	)		(9,320	)
Less:  Allowance for doubtful accounts		(767	)		(121	)		(888	)
Installments receivable, net	$	38,703		$	47,773		$	86,476

Roll Forward of Current and Non-Current Allowance for Doubtful Accounts for Installments Receivable

The following tables show a roll forward of our current and non-current allowance for doubtful accounts for the installments receivable balances during the three and six months ended December 31, 2011 and 2010, respectively (dollars in thousands):

Three Months Ended,	Current			Non-current			Total
December 31, 2011
Balance at September 30, 2011	$	660		$	71		$	731
Transfers to trade accounts receivable		-			-			-
Transfers from non-current to current		-			-			-
Write-offs		-			-			-
Recoveries of previous write-offs		-			10			10
Provision for (recoveries of) bad debts		1			(17	)		(16	)
Balance at December 31, 2011	$	661		$	64		$	725
December 31, 2010
Balance at September 30, 2010	$	1,166		$	1,196		$	2,362
Transfers to trade accounts receivable		(4	)		-			(4	)
Transfers from non-current to current		3			(3	)		0
Write-offs		(226	)		(12	)		(238	)
Recoveries of previous write-offs		-			-			-
Provision for (recoveries of) bad debts		59			(24	)		35
Balance at December 31, 2010	$	998		$	1,157		$	2,155

Six Months Ended,	Current			Non-current			Total
December 31, 2011
Balance at June 30, 2011	$	767		$	121		$	888
Transfers to trade accounts receivable		(41	)		-			(41	)
Transfers from non-current to current		-			-			-
Write-offs		(19	)		(21	)		(40	)
Recoveries of previous write-offs		-			10			10
Recoveries of bad debts		(46	)		(46	)		(92	)
Balance at December 31, 2011	$	661		$	64		$	725
December 31, 2010
Balance at June 30, 2010	$	1,119		$	1,196		$	2,315
Transfers to trade accounts receivable		(75	)		-			(75	)
Transfers from non-current to current		30			(30	)		-
Write-offs		(226	)		(12	)		(238	)
Recoveries of previous write-offs		-			-			-
Provision for bad debts		150			3			153
Balance at December 31, 2010	$	998		$	1,157		$	2,155