Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PEGA | |
Entity Registrant Name | PEGASYSTEMS INC | |
Entity Central Index Key | 1013857 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 76,543,705 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $127,480 | $114,585 |
Marketable securities | 97,877 | 96,631 |
Total cash, cash equivalents, and marketable securities | 225,357 | 211,216 |
Trade accounts receivable, net of allowance of $1,664 and $1,540 | 150,902 | 154,844 |
Deferred income taxes | 12,950 | 12,974 |
Income taxes receivable | 5,623 | 4,502 |
Other current assets | 13,277 | 9,544 |
Total current assets | 408,109 | 393,080 |
Property and equipment, net | 31,135 | 30,156 |
Long-term deferred income taxes | 69,208 | 69,258 |
Long-term other assets | 3,087 | 2,783 |
Intangible assets, net | 42,487 | 45,664 |
Goodwill | 46,777 | 46,860 |
Total assets | 600,803 | 587,801 |
Current liabilities: | ||
Accounts payable | 6,408 | 4,752 |
Accrued expenses | 35,136 | 42,958 |
Accrued compensation and related expenses | 30,642 | 47,250 |
Deferred revenue | 170,476 | 134,672 |
Total current liabilities | 242,662 | 229,632 |
Income taxes payable | 24,825 | 24,896 |
Long-term deferred revenue | 18,499 | 20,859 |
Other long-term liabilities | 17,000 | 17,709 |
Total liabilities | 302,986 | 293,096 |
Stockholders' equity: | ||
Preferred stock, 1,000 shares authorized; no shares issued and outstanding | ||
Common stock, 200,000 shares authorized; 76,563 shares and 76,357 shares issued and outstanding | 766 | 764 |
Additional paid-in capital | 143,976 | 141,495 |
Retained earnings | 156,692 | 153,058 |
Accumulated other comprehensive loss | -3,617 | -612 |
Total stockholders' equity | 297,817 | 294,705 |
Total liabilities and stockholders' equity | $600,803 | $587,801 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for sales credit memos | $1,664 | $1,540 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 76,563,000 | 76,357,000 |
Common stock, shares outstanding | 76,563,000 | 76,357,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Software license | $57,975 | $52,614 |
Maintenance | 48,752 | 44,881 |
Services | 47,191 | 42,969 |
Total revenue | 153,918 | 140,464 |
Cost of revenue: | ||
Software license | 1,076 | 1,579 |
Maintenance | 5,180 | 4,664 |
Services | 43,803 | 39,670 |
Total cost of revenue | 50,059 | 45,913 |
Gross profit | 103,859 | 94,551 |
Operating expenses: | ||
Selling and marketing | 55,735 | 45,807 |
Research and development | 29,844 | 24,609 |
General and administrative | 6,345 | 9,302 |
Acquisition-related | 26 | 206 |
Total operating expenses | 91,950 | 79,924 |
Income from operations | 11,909 | 14,627 |
Foreign currency transaction (loss) gain | -2,962 | 322 |
Interest income, net | 313 | 124 |
Other expense, net | -532 | |
Income (loss) before provision (benefit) for income taxes | 9,260 | 14,541 |
Provision for income taxes | 3,325 | 4,776 |
Net income | $5,935 | $9,765 |
Earnings per share: | ||
Basic | $0.08 | $0.13 |
Diluted | $0.08 | $0.12 |
Weighted-average number of common shares outstanding: | ||
Basic | 76,401 | 76,298 |
Diluted | 78,592 | 78,661 |
Cash dividends declared per share | $0.03 | $0.02 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $5,935 | $9,765 |
Other comprehensive (loss) income: | ||
Unrealized gain on securities, net of tax | 91 | 31 |
Foreign currency translation adjustments | -3,096 | 385 |
Total other comprehensive (loss) income, net | -3,005 | 416 |
Comprehensive income | $2,930 | $10,181 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income | $5,935 | $9,765 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Excess tax benefits from exercise or vesting of equity awards | -822 | -971 |
Deferred income taxes | -3 | 44 |
Depreciation and amortization | 5,624 | 5,846 |
Stock-based compensation expense | 6,269 | 3,295 |
Foreign currency transaction loss (gain) | 2,962 | -322 |
Other non-cash items | 161 | 222 |
Change in operating assets and liabilities: | ||
Trade accounts receivable | -299 | 57,291 |
Income taxes receivable and other current assets | -4,403 | 1,629 |
Accounts payable and accrued expenses | -21,621 | -21,587 |
Deferred revenue | 33,919 | 18,337 |
Other long-term assets and liabilities | -201 | -691 |
Cash provided by operating activities | 27,521 | 72,858 |
Investing activities: | ||
Purchases of marketable securities | -18,120 | -11,630 |
Proceeds from maturities and called marketable securities | 16,549 | 11,021 |
Payments for acquisitions | -535 | -793 |
Investment in property and equipment | -3,275 | -1,228 |
Cash used in investing activities | -5,381 | -2,630 |
Financing activities: | ||
Issuance of common stock for share-based compensation plans | 146 | 22 |
Excess tax benefits from exercise or vesting of equity awards | 822 | 971 |
Dividend payments to shareholders | -2,294 | -1,145 |
Common stock repurchases for tax withholdings for net settlement of equity awards | -2,584 | -1,805 |
Common stock repurchases under share repurchase programs | -2,427 | -4,630 |
Cash used in financing activities | -6,337 | -6,587 |
Effect of exchange rates on cash and cash equivalents | -2,908 | 458 |
Net increase in cash and cash equivalents | 12,895 | 64,099 |
Cash and cash equivalents, beginning of period | 114,585 | 80,231 |
Cash and cash equivalents, end of period | $127,480 | $144,330 |
ACCOUNTING_POLICIES
ACCOUNTING POLICIES | 3 Months Ended | |
Mar. 31, 2015 | ||
ACCOUNTING POLICIES | 1 | ACCOUNTING POLICIES |
Basis of Presentation | ||
Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2014. | ||
In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2015. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended | |
Mar. 31, 2015 | ||
NEW ACCOUNTING PRONOUNCEMENTS | 2 | NEW ACCOUNTING PRONOUNCEMENTS |
Revenue from Contracts with Customers: In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This ASU amends the guidance for revenue recognition to replace numerous, industry-specific requirements, and converges areas under this topic with those of the International Financial Reporting Standards. This ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. This ASU also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. On April 1, 2015, the FASB voted to propose a delay in the effective date of this ASU for reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. As a result, the proposed new effective date for the Company will be January 1, 2018. Management is currently assessing the impact the adoption of this ASU will have on the Company’s consolidated financial statements. |
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
MARKETABLE SECURITIES | 3 | MARKETABLE SECURITIES | |||||||||||||||
(in thousands) | March 31, 2015 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | ||||||||||||||
Cost | Gains | Losses | |||||||||||||||
Municipal bonds | $ | 28,130 | $ | 39 | $ | (12 | ) | $ | 28,157 | ||||||||
Corporate bonds | 64,864 | 47 | (35 | ) | 64,876 | ||||||||||||
Certificates of deposit | 4,839 | 6 | (1 | ) | 4,844 | ||||||||||||
$ | 97,833 | $ | 92 | $ | (48 | ) | $ | 97,877 | |||||||||
(in thousands) | 31-Dec-14 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | ||||||||||||||
Cost | Gains | Losses | |||||||||||||||
Municipal bonds | $ | 27,820 | $ | 52 | $ | (17 | ) | $ | 27,855 | ||||||||
Corporate bonds | 65,487 | 5 | (144 | ) | 65,348 | ||||||||||||
Certificates of deposit | 3,428 | 2 | (2 | ) | 3,428 | ||||||||||||
$ | 96,735 | $ | 59 | $ | (163 | ) | $ | 96,631 | |||||||||
The Company considers debt securities with maturities of three months or less from the purchase date to be cash equivalents. Interest is recorded when earned. All of the Company’s investments are classified as available-for-sale and are carried at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income, net of related income taxes. | |||||||||||||||||
As of March 31, 2015, remaining maturities of marketable debt securities ranged from April 2015 to May 2017, with a weighted-average remaining maturity of approximately 14 months. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
DERIVATIVE INSTRUMENTS | 4 | DERIVATIVE INSTRUMENTS | |||||||
The Company has historically used foreign currency forward contracts (“forward contracts”) to manage its exposure to changes in foreign currency exchange rates associated with its foreign currency denominated accounts receivable, cash and intercompany payables. The U.S. operating company invoices most of its foreign clients in foreign currencies, which results in cash and receivables held at the end of the reporting period denominated in those foreign currencies. Since the U.S. operating company’s functional currency is the U.S. dollar, the Company recognizes a foreign currency transaction gain or (loss) on the foreign currency denominated cash, intercompany payables, and accounts receivable held by the U.S. operating company in its consolidated statements of operations when there are changes in the foreign currency exchange rates versus the U.S. dollar. The Company has been primarily exposed to the fluctuation in the British pound, Euro, Australian dollar, and Indian rupee relative to the U.S. dollar. | |||||||||
The forward contracts utilized by the Company are not designated as hedging instruments and as a result, the Company records the fair value of these contracts at the end of each reporting period in its consolidated balance sheet as other current assets for unrealized gains and accrued expenses for unrealized losses, with any fluctuations in the value of these contracts recognized in other expense, net, in its consolidated statement of operations. However, the fluctuations in the value of these foreign currency forward contracts partially offset the gains and losses from the remeasurement or settlement of the foreign currency denominated accounts receivable, intercompany payables, and cash held by the U.S. operating company, thus partly mitigating the volatility. Generally, the Company enters into foreign currency forward contracts with terms not greater than 90 days. | |||||||||
Effective in the second quarter of 2015, the Company intends to restructure its transactions with its non-North American clients who will begin transacting with Pegasystems Limited, a U.K. subsidiary of the Company, which has the British pound as its functional currency. This reorganization could result in foreign currency transaction gains or (losses) on cash, intercompany payables, and accounts receivable held by the U.K. subsidiary in currencies other than the British pound. As a result, the Company expects its exposure to fluctuations in primarily the Euro and Australian dollar relative to the U.S. dollar to decrease, and its exposure from these currencies relative to the British pound to increase. | |||||||||
The Company is in the process of reassessing its hedging strategy and has not entered into any forward contracts since February 2014. The Company intends to fully or partially hedge its exposures relative to both the U.S. dollar and the British pound under its revised strategy, once implemented. As of March 31, 2015 and December 31, 2014, the Company did not have any forward contracts outstanding. | |||||||||
The Company entered into forward contracts with notional values as follows: | |||||||||
Notional Amount | |||||||||
Three Months Ended March 31, | |||||||||
Foreign currency (in thousands) | 2015 | 2014 | |||||||
Euro | € | — | € | 21,900 | |||||
British pound | £ | — | £ | 26,500 | |||||
Australian dollar | A$ | — | A$ | 12,900 | |||||
Indian rupee | Rs | — | Rs | 204,000 | |||||
The total change in the fair value of the Company’s forward contracts recorded in other expense, net, was as follows: | |||||||||
Change in Fair Value in USD | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Loss included in other expense, net | $ | — | $ | (532 | ) | ||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
FAIR VALUE MEASUREMENTS | 5 | FAIR VALUE MEASUREMENTS | |||||||||||
Assets Measured at Fair Value on a Recurring Basis | |||||||||||||
Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: (Level 1) observable inputs such as quoted prices in active markets for identical assets or liabilities; (Level 2) significant other inputs that are observable either directly or indirectly; and (Level 3) significant unobservable inputs on which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, the Company records its marketable securities at fair value. | |||||||||||||
The Company’s investments are all classified within Level 1 and Level 2 of the fair value hierarchy. The Company’s money market funds are classified within Level 1 of the fair value hierarchy and are valued using quoted market prices in active markets for identical assets. The Company’s investments classified within Level 2 of the fair value hierarchy are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. There were no transfers of investments between Level 1 and Level 2 during the quarter ended March 31, 2015. | |||||||||||||
The fair value hierarchy of the Company’s cash equivalents and marketable securities at fair value is as follows: | |||||||||||||
Fair Value Measurements at | |||||||||||||
Reporting Date Using | |||||||||||||
(in thousands) | March 31, | Quoted Prices | Significant | ||||||||||
2015 | in Active | Other | |||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Money market funds | $ | 1,070 | $ | 1,070 | $ | — | |||||||
Marketable securities: | |||||||||||||
Municipal bonds | $ | 28,157 | $ | — | $ | 28,157 | |||||||
Corporate bonds | 64,876 | — | 64,876 | ||||||||||
Certificates of deposit | 4,844 | — | 4,844 | ||||||||||
Total marketable securities | $ | 97,877 | $ | — | $ | 97,877 | |||||||
Fair Value Measurements at | |||||||||||||
Reporting Date Using | |||||||||||||
(in thousands) | December 31, | Quoted Prices | Significant | ||||||||||
2014 | in Active | Other | |||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Money market funds | $ | 2,295 | $ | 2,295 | $ | — | |||||||
Marketable securities: | |||||||||||||
Municipal bonds | $ | 27,855 | $ | — | $ | 27,855 | |||||||
Corporate bonds | 65,348 | — | 65,348 | ||||||||||
Certificates of deposit | 3,428 | — | 3,428 | ||||||||||
Total marketable securities | $ | 96,631 | $ | — | $ | 96,631 | |||||||
Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||
Assets recorded at fair value on a nonrecurring basis, such as property and equipment, and intangible assets, are recognized at fair value when they are impaired. During the first three months of 2015 and 2014, the Company did not recognize any impairments on its assets measured at fair value on a nonrecurring basis. |
TRADE_ACCOUNTS_RECEIVABLE_NET_
TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE | 6 | TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE | |||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Trade accounts receivable | $ | 130,068 | $ | 128,757 | |||||
Unbilled trade accounts receivable | 22,498 | 27,627 | |||||||
Total accounts receivable | 152,566 | 156,384 | |||||||
Allowance for sales credit memos | (1,664 | ) | (1,540 | ) | |||||
$ | 150,902 | $ | 154,844 | ||||||
Unbilled trade accounts receivable primarily relate to services revenue earned under time and materials arrangements and to maintenance and license arrangements which have commenced or been delivered but have not been invoiced. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | 7 | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||
Changes in the carrying amount of goodwill: | |||||||||||||||||
(in thousands) | 2015 | ||||||||||||||||
Balance as of January 1, | $ | 46,860 | |||||||||||||||
Translation adjustments | (83 | ) | |||||||||||||||
Balance as of March 31, | $ | 46,777 | |||||||||||||||
Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives. | |||||||||||||||||
(in thousands) | Range of | Cost | Accumulated | Net Book | |||||||||||||
Useful Lives | Amortization | Value | |||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Customer related intangibles | 4-9 years | $ | 49,547 | $ | (25,865 | ) | $ | 23,682 | |||||||||
Technology | 3-9 years | 48,342 | (30,233 | ) | 18,109 | ||||||||||||
Other intangibles | 1-3 years | 5,361 | (4,665 | ) | 696 | ||||||||||||
Total | $ | 103,250 | $ | (60,763 | ) | $ | 42,487 | ||||||||||
Range of | Cost | Accumulated | Net Book | ||||||||||||||
Useful Lives | Amortization | Value | |||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Customer related intangibles | 4-9 years | $ | 49,590 | $ | (24,338 | ) | $ | 25,252 | |||||||||
Technology | 3-9 years | 48,342 | (28,890 | ) | 19,452 | ||||||||||||
Other intangibles | 1-3 years | 5,361 | (4,401 | ) | 960 | ||||||||||||
Total | $ | 103,293 | $ | (57,629 | ) | $ | 45,664 | ||||||||||
Amortization of intangibles was reflected in the Company’s unaudited condensed consolidated statements of operations as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(in thousands) | 2015 | 2014 | |||||||||||||||
Cost of revenue | $ | 1,343 | $ | 1,840 | |||||||||||||
Selling and marketing | 1,531 | 1,496 | |||||||||||||||
General and administrative | 264 | 420 | |||||||||||||||
Total amortization expense | $ | 3,138 | $ | 3,756 | |||||||||||||
Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows: | |||||||||||||||||
(in thousands) as of March 31, 2015 | Future estimated | ||||||||||||||||
amortization | |||||||||||||||||
expense | |||||||||||||||||
Remainder of 2015 | $ | 9,066 | |||||||||||||||
2016 | 11,517 | ||||||||||||||||
2017 | 9,819 | ||||||||||||||||
2018 | 8,819 | ||||||||||||||||
2019 | 3,027 | ||||||||||||||||
2020 and thereafter | 239 | ||||||||||||||||
$ | 42,487 | ||||||||||||||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
ACCRUED EXPENSES | 8 | ACCRUED EXPENSES | |||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Partner commissions | $ | 2,903 | $ | 2,441 | |||||
Other taxes | 9,072 | 10,970 | |||||||
Employee reimbursable expenses | 1,872 | 1,474 | |||||||
Dividends payable | 2,300 | 2,294 | |||||||
Professional services contractor fees | 1,959 | 2,297 | |||||||
Self-insurance health and dental claims | 1,299 | 2,115 | |||||||
Professional fees | 2,528 | 2,444 | |||||||
Short-term deferred rent | 1,474 | 1,446 | |||||||
Income taxes payable | 2,240 | 8,966 | |||||||
Acquisition-related expenses and merger consideration | 2,179 | 2,702 | |||||||
Restructuring | 431 | 461 | |||||||
Marketing and sales program expenses | 2,653 | 1,914 | |||||||
Cloud hosting expenses | 1,246 | 516 | |||||||
Other | 2,980 | 2,918 | |||||||
$ | 35,136 | $ | 42,958 | ||||||
DEFERRED_REVENUE
DEFERRED REVENUE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
DEFERRED REVENUE | 9 | DEFERRED REVENUE | |||||||
(in thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Software license | $ | 52,407 | $ | 38,961 | |||||
Maintenance | 101,722 | 83,467 | |||||||
Cloud | 9,044 | 4,209 | |||||||
Services and other | 7,303 | 8,035 | |||||||
Current deferred revenue | 170,476 | 134,672 | |||||||
Software license | 18,188 | 19,878 | |||||||
Maintenance and services | 311 | 981 | |||||||
Long-term deferred revenue | 18,499 | 20,859 | |||||||
$ | 188,975 | $ | 155,531 | ||||||
ACCRUED_RESTRUCTURING
ACCRUED RESTRUCTURING | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
ACCRUED RESTRUCTURING | 10 | ACCRUED RESTRUCTURING | |||||||
During the fourth quarter of 2013, in connection with the Company’s evaluation of its combined facilities with Antenna, the Company approved a plan to eliminate space within one facility. The Company ceased use of this space during the fourth quarter of 2013 and recognized $1.7 million in restructuring expenses. During the third quarter of 2014, the Company restructured the remaining space within the same facility, revised its restructuring estimate, and recognized $0.2 million in additional restructuring expense. These restructuring expenses represent future lease payments and demising costs, net of estimated sublease income for this space. The lease expires in 2021. | |||||||||
A summary of the restructuring activity is as follows: | |||||||||
(in thousands) | |||||||||
Balance as of December 31, 2014 | $ | 1,179 | |||||||
Restructuring expenses | — | ||||||||
Cash payments | (88 | ) | |||||||
Balance as of March 31, 2015 | $ | 1,091 | |||||||
As of | As of | ||||||||
March 31, | December 31, | ||||||||
(in thousands) | 2015 | 2014 | |||||||
Reported as: | |||||||||
Accrued expenses | $ | 431 | $ | 461 | |||||
Other long-term liabilities | 660 | 718 | |||||||
$ | 1,091 | $ | 1,179 | ||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
STOCK-BASED COMPENSATION | 11 | STOCK-BASED COMPENSATION | |||||||
Stock-based compensation expense was reflected in the Company’s unaudited condensed consolidated statements of operations as follows: | |||||||||
Three Months Ended March 31, | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Cost of revenues | $ | 1,953 | $ | 1,011 | |||||
Operating expenses | 4,316 | 2,284 | |||||||
Total stock-based compensation before tax | $ | 6,269 | $ | 3,295 | |||||
Income tax benefit | (1,783 | ) | (991 | ) | |||||
During the first three months of 2015, the Company issued approximately 313,000 shares of common stock to its employees under the Company’s share-based compensation plans. | |||||||||
During the first three months of 2015, the Company granted approximately 1,566,000 restricted stock units (“RSUs”) and 1,995,000 non-qualified stock options to its employees with total fair values of approximately $30.6 million and $14.8 million, respectively. Approximately 250,000 RSUs were granted in connection with the election by employees to receive 50% of their 2015 target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash. Stock-based compensation of approximately $4.3 million associated with this RSU grant will be recognized over a one-year period beginning on the grant date. | |||||||||
The Company recognizes stock based compensation on the accelerated recognition method, while treating each vesting tranche as if it were an individual grant. As of March 31, 2015, the Company had approximately $49.4 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to all unvested RSUs and unvested stock options that is expected to be recognized over a weighted-average period of 2.3 years. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
EARNINGS PER SHARE | 12 | EARNINGS PER SHARE | |||||||
Basic earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period, plus the dilutive effect of outstanding options, RSUs, and warrants, using the treasury stock method and the average market price of the Company’s common stock during the applicable period. Certain shares related to some of the Company’s outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the periods presented, but could be dilutive in the future. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands, except per share amounts) | 2015 | 2014 | |||||||
Basic | |||||||||
Net income | $ | 5,935 | $ | 9,765 | |||||
Weighted-average common shares outstanding | 76,401 | 76,298 | |||||||
Earnings per share, basic | $ | 0.08 | $ | 0.13 | |||||
Diluted | |||||||||
Net income | $ | 5,935 | $ | 9,765 | |||||
Weighted-average common shares outstanding, basic | 76,401 | 76,298 | |||||||
Weighted-average effect of dilutive securities: | |||||||||
Stock options | 1,510 | 1,926 | |||||||
RSUs | 681 | 437 | |||||||
Effect of assumed exercise of stock options and RSUs | 2,191 | 2,363 | |||||||
Weighted-average common shares outstanding, diluted | 78,592 | 78,661 | |||||||
Earnings per share, diluted | $ | 0.08 | $ | 0.12 | |||||
Outstanding options and RSUs excluded as impact would be anti-dilutive | 60 | 57 |
GEOGRAPHIC_INFORMATION_AND_MAJ
GEOGRAPHIC INFORMATION AND MAJOR CLIENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
GEOGRAPHIC INFORMATION AND MAJOR CLIENTS | 13 | GEOGRAPHIC INFORMATION AND MAJOR CLIENTS | |||||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. | |||||||||||||||||
The Company develops and licenses its strategic software applications and Pega 7 platform and provides consulting services, maintenance, and training related to its offerings. The Company derives substantially all of its revenue from the sale and support of one group of similar products and services – software that provides business process solutions in the enterprise applications market. To assess performance, the Company’s CODM reviews financial information on a consolidated basis. Therefore, the Company determined it has one reportable segment — Digital Enterprise Business Solutions, and one reporting unit. | |||||||||||||||||
The Company’s international revenue is from sales to clients based outside of the U.S. The Company derived its revenue from the following geographic areas: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | |||||||||||||||
U.S. | $ | 90,164 | 59 | % | $ | 82,016 | 58 | % | |||||||||
Other Americas | 12,296 | 8 | % | 3,841 | 3 | % | |||||||||||
United Kingdom | 20,227 | 13 | % | 28,914 | 21 | % | |||||||||||
Other EMEA | 18,869 | 12 | % | 16,300 | 11 | % | |||||||||||
Asia Pacific | 12,362 | 8 | % | 9,393 | 7 | % | |||||||||||
$ | 153,918 | 100 | % | $ | 140,464 | 100 | % | ||||||||||
There were no clients accounting for 10% or more of the Company’s total revenue during the first three months of 2015 and 2014. Clients accounting for 10% or more of the Company’s total outstanding trade receivables, net of allowance, were as follows: | |||||||||||||||||
As of | As of | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | |||||||||||||||
Trade receivables, net of allowance | $ | 150,902 | $ | 154,844 | |||||||||||||
Client A | 12 | % | n/a | ||||||||||||||
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 3 Months Ended | |
Mar. 31, 2015 | ||
SUBSEQUENT EVENT | 14 | SUBSEQUENT EVENT |
On April 28, 2015, the Company and the former shareholders of Antenna Software, Inc. (“Antenna”) reached a settlement with respect to certain indemnification claims made by the Company against the former shareholders of Antenna, arising under the merger agreement pursuant to which the Company acquired Antenna in October 2013. Pursuant to the settlement agreement, $2.75 million of the approximately $4.16 million held in escrow as security for indemnification obligations was released to the Company in settlement of the outstanding indemnification claims, with the remainder of the escrow released to the former shareholders and certain former employees of Antenna. The receivable for the $2.75 million has been recorded in other current assets in the Company’s unaudited condensed consolidated financial statements as of March 31, 2015, with an offsetting benefit to income from operations in the Company’s unaudited condensed consolidated statement of operations for the quarterly period ending March 31, 2015. |
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Schedule of Available for Sale Securities Reconciliation | (in thousands) | March 31, 2015 | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | ||||||||||||||
Cost | Gains | Losses | |||||||||||||||
Municipal bonds | $ | 28,130 | $ | 39 | $ | (12 | ) | $ | 28,157 | ||||||||
Corporate bonds | 64,864 | 47 | (35 | ) | 64,876 | ||||||||||||
Certificates of deposit | 4,839 | 6 | (1 | ) | 4,844 | ||||||||||||
$ | 97,833 | $ | 92 | $ | (48 | ) | $ | 97,877 | |||||||||
(in thousands) | 31-Dec-14 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | ||||||||||||||
Cost | Gains | Losses | |||||||||||||||
Municipal bonds | $ | 27,820 | $ | 52 | $ | (17 | ) | $ | 27,855 | ||||||||
Corporate bonds | 65,487 | 5 | (144 | ) | 65,348 | ||||||||||||
Certificates of deposit | 3,428 | 2 | (2 | ) | 3,428 | ||||||||||||
$ | 96,735 | $ | 59 | $ | (163 | ) | $ | 96,631 | |||||||||
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Forward Contracts with Notional Values | The Company entered into forward contracts with notional values as follows: | ||||||||
Notional Amount | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Foreign currency (in thousands) | 2015 | 2014 | |||||||
Euro | € | — | € | 21,900 | |||||
British pound | £ | — | £ | 26,500 | |||||
Australian dollar | A$ | — | A$ | 12,900 | |||||
Indian rupee | Rs | — | Rs | 204,000 | |||||
Change in Fair Value of Forward Contracts Recorded in Other Expense, Net | The total change in the fair value of the Company’s forward contracts recorded in other expense, net, was as follows: | ||||||||
Change in Fair Value in USD | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Loss included in other expense, net | $ | — | $ | (532 | ) |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Cash Equivalents and Marketable Securities at Fair Value | The fair value hierarchy of the Company’s cash equivalents and marketable securities at fair value is as follows: | ||||||||||||
Fair Value Measurements at | |||||||||||||
Reporting Date Using | |||||||||||||
(in thousands) | March 31, | Quoted Prices | Significant | ||||||||||
2015 | in Active | Other | |||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Money market funds | $ | 1,070 | $ | 1,070 | $ | — | |||||||
Marketable securities: | |||||||||||||
Municipal bonds | $ | 28,157 | $ | — | $ | 28,157 | |||||||
Corporate bonds | 64,876 | — | 64,876 | ||||||||||
Certificates of deposit | 4,844 | — | 4,844 | ||||||||||
Total marketable securities | $ | 97,877 | $ | — | $ | 97,877 | |||||||
Fair Value Measurements at | |||||||||||||
Reporting Date Using | |||||||||||||
(in thousands) | December 31, | Quoted Prices | Significant | ||||||||||
2014 | in Active | Other | |||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Money market funds | $ | 2,295 | $ | 2,295 | $ | — | |||||||
Marketable securities: | |||||||||||||
Municipal bonds | $ | 27,855 | $ | — | $ | 27,855 | |||||||
Corporate bonds | 65,348 | — | 65,348 | ||||||||||
Certificates of deposit | 3,428 | — | 3,428 | ||||||||||
Total marketable securities | $ | 96,631 | $ | — | $ | 96,631 | |||||||
TRADE_ACCOUNTS_RECEIVABLE_NET_1
TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Schedule of Trade Accounts Receivable | (in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | ||||||||
Trade accounts receivable | $ | 130,068 | $ | 128,757 | |||||
Unbilled trade accounts receivable | 22,498 | 27,627 | |||||||
Total accounts receivable | 152,566 | 156,384 | |||||||
Allowance for sales credit memos | (1,664 | ) | (1,540 | ) | |||||
$ | 150,902 | $ | 154,844 | ||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill: | ||||||||||||||||
(in thousands) | 2015 | ||||||||||||||||
Balance as of January 1, | $ | 46,860 | |||||||||||||||
Translation adjustments | (83 | ) | |||||||||||||||
Balance as of March 31, | $ | 46,777 | |||||||||||||||
Schedule of Amortizable Intangible Assets | Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives. | ||||||||||||||||
(in thousands) | Range of | Cost | Accumulated | Net Book | |||||||||||||
Useful Lives | Amortization | Value | |||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Customer related intangibles | 4-9 years | $ | 49,547 | $ | (25,865 | ) | $ | 23,682 | |||||||||
Technology | 3-9 years | 48,342 | (30,233 | ) | 18,109 | ||||||||||||
Other intangibles | 1-3 years | 5,361 | (4,665 | ) | 696 | ||||||||||||
Total | $ | 103,250 | $ | (60,763 | ) | $ | 42,487 | ||||||||||
Range of | Cost | Accumulated | Net Book | ||||||||||||||
Useful Lives | Amortization | Value | |||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Customer related intangibles | 4-9 years | $ | 49,590 | $ | (24,338 | ) | $ | 25,252 | |||||||||
Technology | 3-9 years | 48,342 | (28,890 | ) | 19,452 | ||||||||||||
Other intangibles | 1-3 years | 5,361 | (4,401 | ) | 960 | ||||||||||||
Total | $ | 103,293 | $ | (57,629 | ) | $ | 45,664 | ||||||||||
Amortization Expense of Acquired Intangibles | Amortization of intangibles was reflected in the Company’s unaudited condensed consolidated statements of operations as follows: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(in thousands) | 2015 | 2014 | |||||||||||||||
Cost of revenue | $ | 1,343 | $ | 1,840 | |||||||||||||
Selling and marketing | 1,531 | 1,496 | |||||||||||||||
General and administrative | 264 | 420 | |||||||||||||||
Total amortization expense | $ | 3,138 | $ | 3,756 | |||||||||||||
Estimated Future Amortization Expense | Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows: | ||||||||||||||||
(in thousands) as of March 31, 2015 | Future estimated | ||||||||||||||||
amortization | |||||||||||||||||
expense | |||||||||||||||||
Remainder of 2015 | $ | 9,066 | |||||||||||||||
2016 | 11,517 | ||||||||||||||||
2017 | 9,819 | ||||||||||||||||
2018 | 8,819 | ||||||||||||||||
2019 | 3,027 | ||||||||||||||||
2020 and thereafter | 239 | ||||||||||||||||
$ | 42,487 | ||||||||||||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Schedule of Accrued Expenses | (in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | ||||||||
Partner commissions | $ | 2,903 | $ | 2,441 | |||||
Other taxes | 9,072 | 10,970 | |||||||
Employee reimbursable expenses | 1,872 | 1,474 | |||||||
Dividends payable | 2,300 | 2,294 | |||||||
Professional services contractor fees | 1,959 | 2,297 | |||||||
Self-insurance health and dental claims | 1,299 | 2,115 | |||||||
Professional fees | 2,528 | 2,444 | |||||||
Short-term deferred rent | 1,474 | 1,446 | |||||||
Income taxes payable | 2,240 | 8,966 | |||||||
Acquisition-related expenses and merger consideration | 2,179 | 2,702 | |||||||
Restructuring | 431 | 461 | |||||||
Marketing and sales program expenses | 2,653 | 1,914 | |||||||
Cloud hosting expenses | 1,246 | 516 | |||||||
Other | 2,980 | 2,918 | |||||||
$ | 35,136 | $ | 42,958 | ||||||
DEFERRED_REVENUE_Tables
DEFERRED REVENUE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Schedule of Deferred Revenue | (in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | ||||||||
Software license | $ | 52,407 | $ | 38,961 | |||||
Maintenance | 101,722 | 83,467 | |||||||
Cloud | 9,044 | 4,209 | |||||||
Services and other | 7,303 | 8,035 | |||||||
Current deferred revenue | 170,476 | 134,672 | |||||||
Software license | 18,188 | 19,878 | |||||||
Maintenance and services | 311 | 981 | |||||||
Long-term deferred revenue | 18,499 | 20,859 | |||||||
$ | 188,975 | $ | 155,531 | ||||||
ACCRUED_RESTRUCTURING_Tables
ACCRUED RESTRUCTURING (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Summary of Restructuring Activity | A summary of the restructuring activity is as follows: | ||||||||
(in thousands) | |||||||||
Balance as of December 31, 2014 | $ | 1,179 | |||||||
Restructuring expenses | — | ||||||||
Cash payments | (88 | ) | |||||||
Balance as of March 31, 2015 | $ | 1,091 | |||||||
Schedule of Restructuring Reserve | |||||||||
As of | As of | ||||||||
March 31, | December 31, | ||||||||
(in thousands) | 2015 | 2014 | |||||||
Reported as: | |||||||||
Accrued expenses | $ | 431 | $ | 461 | |||||
Other long-term liabilities | 660 | 718 | |||||||
$ | 1,091 | $ | 1,179 | ||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Stock-Based Compensation Expense Included in Consolidated Statements of Operations | Stock-based compensation expense was reflected in the Company’s unaudited condensed consolidated statements of operations as follows: | ||||||||
Three Months Ended March 31, | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Cost of revenues | $ | 1,953 | $ | 1,011 | |||||
Operating expenses | 4,316 | 2,284 | |||||||
Total stock-based compensation before tax | $ | 6,269 | $ | 3,295 | |||||
Income tax benefit | (1,783 | ) | (991 | ) |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Summary of Basic and Diluted Earnings (Loss) Per Share | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands, except per share amounts) | 2015 | 2014 | |||||||
Basic | |||||||||
Net income | $ | 5,935 | $ | 9,765 | |||||
Weighted-average common shares outstanding | 76,401 | 76,298 | |||||||
Earnings per share, basic | $ | 0.08 | $ | 0.13 | |||||
Diluted | |||||||||
Net income | $ | 5,935 | $ | 9,765 | |||||
Weighted-average common shares outstanding, basic | 76,401 | 76,298 | |||||||
Weighted-average effect of dilutive securities: | |||||||||
Stock options | 1,510 | 1,926 | |||||||
RSUs | 681 | 437 | |||||||
Effect of assumed exercise of stock options and RSUs | 2,191 | 2,363 | |||||||
Weighted-average common shares outstanding, diluted | 78,592 | 78,661 | |||||||
Earnings per share, diluted | $ | 0.08 | $ | 0.12 | |||||
Outstanding options and RSUs excluded as impact would be anti-dilutive | 60 | 57 |
GEOGRAPHIC_INFORMATION_AND_MAJ1
GEOGRAPHIC INFORMATION AND MAJOR CLIENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Revenue by Geographic Area | The Company’s international revenue is from sales to clients based outside of the U.S. The Company derived its revenue from the following geographic areas: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | |||||||||||||||
U.S. | $ | 90,164 | 59 | % | $ | 82,016 | 58 | % | |||||||||
Other Americas | 12,296 | 8 | % | 3,841 | 3 | % | |||||||||||
United Kingdom | 20,227 | 13 | % | 28,914 | 21 | % | |||||||||||
Other EMEA | 18,869 | 12 | % | 16,300 | 11 | % | |||||||||||
Asia Pacific | 12,362 | 8 | % | 9,393 | 7 | % | |||||||||||
$ | 153,918 | 100 | % | $ | 140,464 | 100 | % | ||||||||||
Trade Receivables of Major Clients | There were no clients accounting for 10% or more of the Company’s total revenue during the first three months of 2015 and 2014. Clients accounting for 10% or more of the Company’s total outstanding trade receivables, net of allowance, were as follows: | ||||||||||||||||
As of | As of | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | |||||||||||||||
Trade receivables, net of allowance | $ | 150,902 | $ | 154,844 | |||||||||||||
Client A | 12 | % | n/a | ||||||||||||||
Schedule_of_Marketable_Securit
Schedule of Marketable Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $97,833 | $96,735 |
Unrealized Gains | 92 | 59 |
Unrealized Losses | -48 | -163 |
Fair Value | 97,877 | 96,631 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,130 | 27,820 |
Unrealized Gains | 39 | 52 |
Unrealized Losses | -12 | -17 |
Fair Value | 28,157 | 27,855 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 64,864 | 65,487 |
Unrealized Gains | 47 | 5 |
Unrealized Losses | -35 | -144 |
Fair Value | 64,876 | 65,348 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,839 | 3,428 |
Unrealized Gains | 6 | 2 |
Unrealized Losses | -1 | -2 |
Fair Value | $4,844 | $3,428 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average remaining maturity period of marketable debt securities, months | 14 months |
Minimum | |
Schedule of Available-for-sale Securities [Line Items] | |
Remaining maturities of marketable debt securities | 2015-04 |
Maximum | |
Schedule of Available-for-sale Securities [Line Items] | |
Remaining maturities of marketable debt securities | 2017-05 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (Foreign Exchange Forward, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Derivative outstanding | 0 | $0 |
Maximum | ||
Derivative [Line Items] | ||
Term of derivative contracts | 90 days |
Forward_Contracts_with_Notiona
Forward Contracts with Notional Values (Detail) (Forward Contracts) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Indian Rupees | Australian Dollar | British pound | Euro | |
INR | AUD | GBP (£) | EUR (€) | |
Derivative [Line Items] | ||||
Notional amount | 204,000 | 12,900 | £ 26,500 | € 21,900 |
Change_in_Fair_Value_of_Forwar
Change in Fair Value of Forward Contracts Recorded in Other Expense, Net (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Loss included in other expense, net | ($532) |
Cash_Equivalents_and_Marketabl
Cash Equivalents and Marketable Securities at Fair Value (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $1,070 | $2,295 |
Total marketable securities | 97,877 | 96,631 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 1,070 | 2,295 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 97,877 | 96,631 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 28,157 | 27,855 |
Municipal bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 28,157 | 27,855 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 64,876 | 65,348 |
Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 64,876 | 65,348 |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 4,844 | 3,428 |
Certificates of Deposit | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | $4,844 | $3,428 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Fair Value, Measurements, Nonrecurring, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairments recognized on assets | $0 | $0 |
Schedule_of_Trade_Accounts_Rec
Schedule of Trade Accounts Receivable (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $152,566 | $156,384 |
Allowance for sales credit memos | -1,664 | -1,540 |
Total accounts receivable net | 150,902 | 154,844 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 130,068 | 128,757 |
Unbilled accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $22,498 | $27,627 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Line Items] | |
Balance as of January 1, | $46,860 |
Translation adjustments | -83 |
Balance as of March 31, | $46,777 |
Schedule_of_Amortizable_Intang
Schedule of Amortizable Intangible Asset (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill and Other Intangible Assets [Line Items] | ||
Cost | 103,250 | 103,293 |
Accumulated Amortization | -60,763 | -57,629 |
Future estimated amortization expense, total | 42,487 | 45,664 |
Customer related intangibles | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Cost | 49,547 | 49,590 |
Accumulated Amortization | -25,865 | -24,338 |
Future estimated amortization expense, total | 23,682 | 25,252 |
Technology | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Cost | 48,342 | 48,342 |
Accumulated Amortization | -30,233 | -28,890 |
Future estimated amortization expense, total | 18,109 | 19,452 |
Other intangibles | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Cost | 5,361 | 5,361 |
Accumulated Amortization | -4,665 | -4,401 |
Future estimated amortization expense, total | 696 | 960 |
Minimum | Customer related intangibles | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Range of Useful Lives | 4 years | 4 years |
Minimum | Technology | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Range of Useful Lives | 3 years | 3 years |
Minimum | Other intangibles | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Range of Useful Lives | 1 year | 1 year |
Maximum | Customer related intangibles | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Range of Useful Lives | 9 years | 9 years |
Maximum | Technology | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Range of Useful Lives | 9 years | 9 years |
Maximum | Other intangibles | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Range of Useful Lives | 3 years | 3 years |
Amortization_Expense_of_Acquir
Amortization Expense of Acquired Intangibles (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense | $3,138 | $3,756 |
Cost of revenue | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense | 1,343 | 1,840 |
Selling and marketing | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense | 1,531 | 1,496 |
General and administrative | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense | $264 | $420 |
Estimated_Future_Amortization_
Estimated Future Amortization Expense (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Other Intangible Assets [Line Items] | ||
Remainder of 2015 | $9,066 | |
2016 | 11,517 | |
2017 | 9,819 | |
2018 | 8,819 | |
2019 | 3,027 | |
2020 and thereafter | 239 | |
Future estimated amortization expense, total | $42,487 | $45,664 |
Schedule_of_Accrued_Expenses_D
Schedule of Accrued Expenses (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued expenses | ||
Partner commissions | $2,903 | $2,441 |
Other taxes | 9,072 | 10,970 |
Employee reimbursable expenses | 1,872 | 1,474 |
Dividends payable | 2,300 | 2,294 |
Professional services contractor fees | 1,959 | 2,297 |
Self-insurance health and dental claims | 1,299 | 2,115 |
Professional fees | 2,528 | 2,444 |
Short-term deferred rent | 1,474 | 1,446 |
Income taxes payable | 2,240 | 8,966 |
Acquisition-related expenses and merger consideration | 2,179 | 2,702 |
Restructuring | 431 | 461 |
Marketing and sales program expenses | 2,653 | 1,914 |
Cloud hosting expenses | 1,246 | 516 |
Other | 2,980 | 2,918 |
Total accrued expenses | $35,136 | $42,958 |
Schedule_of_Deferred_Revenue_D
Schedule of Deferred Revenue (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | $170,476 | $134,672 |
Long-term deferred revenue | 18,499 | 20,859 |
Total deferred revenue | 188,975 | 155,531 |
Software license | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | 52,407 | 38,961 |
Long-term deferred revenue | 18,188 | 19,878 |
Maintenance | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | 101,722 | 83,467 |
Cloud | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | 9,044 | 4,209 |
Services and other | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | 7,303 | 8,035 |
Maintenance and services | ||
Deferred Revenue Arrangement [Line Items] | ||
Long-term deferred revenue | $311 | $981 |
Accrued_Restructuring_Expenses
Accrued Restructuring Expenses - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $0 | $200 | $1,700 |
Lease expiration date | 2021 |
Summary_of_Restructuring_Activ
Summary of Restructuring Activity (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning Balance | $1,179 | ||
Restructuring expenses | 0 | 200 | 1,700 |
Cash payments | -88 | ||
Restructuring Reserve, Ending Balance | $1,091 |
Schedule_of_Restructuring_Rese
Schedule of Restructuring Reserve (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrued expenses | $431 | $461 |
Other long-term liabilities | 660 | 718 |
Restructuring Reserve, Total | $1,091 | $1,179 |
Stock_Based_Compensation_Expen
Stock Based Compensation Expense Included in Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation before tax | $6,269 | $3,295 |
Income tax benefit | -1,783 | -991 |
Cost Of Revenues | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation before tax | 1,953 | 1,011 |
Operating Expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation before tax | $4,316 | $2,284 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $49.40 |
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years) | 2 years 3 months 18 days |
Employees | Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued | 313,000 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted | 1,566,000 |
Fair value of shares granted | 30.6 |
RSUs granted in connection with the 2015 CICP | 250,000 |
Percentage of target incentive compensation eligible to be elected and received by employees in the form of RSUs | 50.00% |
Restricted stock compensation expense | 4.3 |
Total stock-based compensation, period of recognition | 1 year |
Nonqualified Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of shares granted | $14.80 |
Number of shares granted | 1,995,000 |
Summary_of_Basic_and_Diluted_E
Summary of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earning per share reconciliation | ||
Net income | $5,935 | $9,765 |
Weighted-average common shares outstanding | 76,401 | 76,298 |
Earnings per share, basic | $0.08 | $0.13 |
Net income | $5,935 | $9,765 |
Weighted-average common shares outstanding, basic | 76,401 | 76,298 |
Effect of assumed exercise of stock options and RSUs | 2,191 | 2,363 |
Weighted-average common shares outstanding, diluted | 78,592 | 78,661 |
Earnings per share, diluted | $0.08 | $0.12 |
Outstanding options and RSUs excluded as impact would be anti-dilutive | 60 | 57 |
Stock Options | ||
Earning per share reconciliation | ||
Weighted-average effect of dilutive securities | 1,510 | 1,926 |
RSUs | ||
Earning per share reconciliation | ||
Weighted-average effect of dilutive securities | 681 | 437 |
Recovered_Sheet1
Geographic Information and Major Clients - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Unit | |
Segment | |
Geographic information and major clients | |
Number of reportable segment, digital enterprise business solutions | 1 |
Number of reporting unit | 1 |
Clients accounting for 10% or more of total revenue | There were no clients accounting for 10% or more of the Company's total revenue during the first three months of 2015 and 2014. |
Credit Concentration Risk | Accounts Receivable | Minimum | |
Geographic information and major clients | |
Percentage of company outstanding trade receivables accounted by client | 10.00% |
Revenue_from_International_Cli
Revenue from International Clients by Geographic Areas (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Geographic revenue | $153,918 | $140,464 |
Geographic revenue percentage | 100.00% | 100.00% |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Geographic revenue | 90,164 | 82,016 |
Geographic revenue percentage | 59.00% | 58.00% |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Geographic revenue | 12,296 | 3,841 |
Geographic revenue percentage | 8.00% | 3.00% |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Geographic revenue | 20,227 | 28,914 |
Geographic revenue percentage | 13.00% | 21.00% |
Other EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Geographic revenue | 18,869 | 16,300 |
Geographic revenue percentage | 12.00% | 11.00% |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Geographic revenue | $12,362 | $9,393 |
Geographic revenue percentage | 8.00% | 7.00% |
Trade_Receivables_of_Major_Cli
Trade Receivables of Major Clients (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Revenue, Major Customer [Line Items] | ||
Trade receivables, net of allowance | 150,902 | $154,844 |
Credit Concentration Risk | Accounts Receivable | Client A | ||
Revenue, Major Customer [Line Items] | ||
Major clients percentage of trade receivables | 12.00% |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Apr. 28, 2015 |
Subsequent Event [Line Items] | |||
Other current assets | $13,277,000 | $9,544,000 | |
Settlement of Indemnification Claims | |||
Subsequent Event [Line Items] | |||
Other current assets | 2,750,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Business acquisition cash deposit in escrow | 4,160,000 | ||
Subsequent Event | Settlement of Indemnification Claims | |||
Subsequent Event [Line Items] | |||
Indemnification claim settlement amount | $2,750,000 |