Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2012

Significant Accounting Policies [Abstract]

Property and Equipment, Useful Lives

Property and equipment are stated at cost.We provide for depreciation and amortization, primarily computed using the straight-line method, by charges to operations in amounts estimated to allocate the cost of the assets over their estimated useful lives, as follows:

Asset Classification	Estimated Useful Life
Computer equipment	3 years
Purchased software	3 - 5 years
Furniture and fixtures	3 - 10 years
Leasehold improvements	Life of lease or asset, whichever is shorter

Revenue Classification and Revenue Recognition Methology

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 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 Recognition Methodology

The following tables reconcile the amount of revenue recognized during fiscal 2012, 2011 and 2010, based on the revenue recognition methodology (dollars in thousands).  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.

	Year Ended,						Year Ended,
	2012		2011		2010		2012			2011			2010
							% of Total
Subscription and software revenue:
Ratable (1)	$	144,144	$	58,459	$	11,071		86.5	%		56.4	%		20.5	%
Residual method (2)		22,544		45,240		42,920		13.5			43.6			79.5
Subscription and software revenue	$	166,688	$	103,699	$	53,991		100.0	%		100.0	%		100.0	%

(1) During fiscal 2011 and 2010, the fair value of the SMS element of point product arrangements totaled $2.1 million and $0.7 million, respectively and was presented in the consolidated 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 since we are unable to establish VSOE, and as a result, is included within ratable revenue.

(2)

	Year Ended,
	2012		2011		2010
	(Dollars in thousands)
Residual method revenue:
Point products - Software	*		$	20,190	$	9,648
Legacy arrangements		20,586		22,761		31,400
Perpetual arrangements		1,958		2,289		1,872
Total residual method revenue	$	22,544	$	45,240	$	42,920

* 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 June 30, 2012 and June 30, 2011(dollars in thousands):

	Current			Non-current			Total
June 30, 2012
Installments receivable, gross	$	34,958		$	15,904		$	50,862
Less:  Unamortized discount		(1,617	)		(1,833	)		(3,450	)
Less:  Allowance for doubtful accounts		(157	)		(25	)		(182	)
Installments receivable, net	$	33,184		$	14,046		$	47,230
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 table shows a roll forward of our current and non-current allowance for doubtful accounts for the installments receivable balances during the fiscal years 2012, 2011 and 2010 (dollars in thousands):

	Current			Non-current			Total
Balance at June 30, 2010	$	1,119		$	1,196		$	2,315
Transfers to accounts receivable		(993	)		-			(993	)
Transfers from non-current to current		757			(757	)		-
Write-offs		(302	)		(322	)		(624	)
Recoveries of previous write-offs		194			-			194
Provision for bad debts		(8	)		4			(4	)
Balance at June 30, 2011	$	767		$	121		$	888
Transfers to accounts receivable		(782	)		-			(782	)
Transfers from non-current to current		127			(127	)		-
Write-offs		(26	)		(29	)		(55	)
Recoveries of previous write-offs		-			10			10
Provision for bad debts		71			50			121
Balance at June 30, 2012	$	157		$	25		$	182

Allowance for Doubtful Accounts Activity for Accounts Receivable

The following table presents our allowance for doubtful accounts activity for accounts receivable in fiscal 2012, 2011 and 2010, respectively (dollars in thousands):

	Year Ended June 30,
	2012			2011			2010
Balance, beginning of year	$	2,771		$	7,000		$	8,487
Provision for bad debts		(95	)		(2,618	)		437
Write-offs		(512	)		(1,611	)		(1,924	)
Balance, end of year	$	2,164		$	2,771		$	7,000

Accounts Receivable and Collateralized Receivables Balances

The following table summarizes our accounts receivable and collateralized receivables balances, net of the related allowance for doubtful accounts and unamortized discounts, as of June 30, 2012 and 2011 (dollars in thousands). Collateralized receivables are presented in the consolidated balance sheets and in the table below net of unamortized discounts for future interest established at inception of the installment arrangement, and carry terms of up to five years. The unamortized discounts are recognized over the term of the installment arrangement as interest income using the effective interest method.

	Gross		Unamortized Discounts		Allowance		Net
June 30, 2012:
Accounts Receivable	$	33,432	$	-	$	1,982	$	31,450
Installments Receivable
Current		34,958		1,617		157		33,184
Non-current		15,904		1,833		25		14,046
		50,862		3,450		182		47,230
Collateralized Receivables
Current		6,500		203		-		6,297
Non-current		-		-		-		-
	$	6,500	$	203	$	-	$	6,297
June 30, 2011:
Accounts Receivable	$	29,750	$	-	$	1,884	$	27,866
Installments Receivable
Current		41,407		1,937		767		38,703
Non-current		55,277		7,383		121		47,773
		96,684		9,320		888		86,476
Collateralized Receivables
Current		16,371		623		-		15,748
Non-current		10,320		1,029		-		9,291
	$	26,691	$	1,652	$	-	$	25,039

Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table summarizes financial assets and financial liabilities measured and recorded at fair value on a recurring basis in the accompanying consolidated balance sheets as of June 30, 2012 and 2011, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

	Fair Value Measurements at
	Reporting Date Using,
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs
	(Level 1)		(Level 2)
June 30, 2012:
Assets:
Cash equivalents	$	144,009	$	-
Liabilities:
Secured borrowings		-		10,939
June 30, 2011:
Assets:
Cash equivalents	$	139,000	$	-
Liabilities:
Secured borrowings		-		25,964

Calculations of Basic and Diluted Net Income (Loss) per Share

The calculations of basic and diluted net (loss) income per share and basic and diluted weighted average shares outstanding are as follows (dollars in thousands, except per share data):

	Year Ended June 30,
	2012			2011		2010
Net (loss) income	$	(13,808	)	$	10,257	$	(107,445	)
Weighted average shares outstanding		93,780			93,488		91,247
Dilutive impact from:
Share-based payment awards		-			2,313		-
Warrants		-			52		-
Dilutive weighted average shares outstanding		93,780			95,853		91,247
Net (loss) income per common share
Basic	$	(0.15	)	$	0.11	$	(1.18	)
Dilutive	$	(0.15	)	$	0.11	$	(1.18	)

Potential Common Shares Excluded From Calculation of Dilutive Weighted Average Shares Outstanding

The following potential common shares were excluded from the calculation of dilutive weighted average shares outstanding because the exercise price of the stock options exceeded the average market price of our common stock and/or their effect would be anti-dilutive at the balance sheet date (shares in thousands):

	Year Ended June 30,
	2012		2011		2010
Employee equity awards		6,554		1,728		8,642

Intangible Assets

Intangible assets consist of the following as of June 30, 2012 (dollars in thousands):

	June 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Effect of currency translation			Net Carrying Amount		Weighted Average Remaining Life (in Years)
Technology and patents	$	1,330	$	(139	)	$	(84	)	$	1,107		2.7
Total	$	1,330	$	(139	)	$	(84	)	$	1,107		2.7

Carrying Amount of Goodwill

The changes in the carrying amount of the goodwill by reporting unit for the fiscal years 2012 and 2011 were as follows (dollars in thousands):

	Reporting Unit
Asset Class	License			SMS, Training, and Other			Professional Services			Total
Balance as of June 30, 2010
Goodwill	$	68,059		$	14,871		$	5,102		$	88,032
Accumulated impairment losses		(65,569	)		-			(5,102	)		(70,671	)
	$	2,490		$	14,871		$	-		$	17,361
Effect of currency translation		(10	)		1,273			-			1,263
Balance as of June 30, 2011
Goodwill	$	68,049		$	16,144		$	5,102		$	89,295
Accumulated impairment losses		(65,569	)		-			(5,102	)		(70,671	)
	$	2,480		$	16,144		$	-		$	18,624
Acquisitions	$	1,641		$	-		$	-		$	1,641
Effect of currency translation		(120	)		(746	)		-			(866	)
Balance as of  June 30, 2012
Goodwill	$	69,570		$	15,398		$	5,102		$	90,070
Accumulated impairment losses		(65,569	)		-			(5,102	)		(70,671	)
	$	4,001		$	15,398		$	-		$	19,399