Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 17, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PEGA | |
Entity Registrant Name | PEGASYSTEMS INC | |
Entity Central Index Key | 1,013,857 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 76,523,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 120,864 | $ 114,585 |
Marketable securities | 106,068 | 96,631 |
Total cash, cash equivalents, and marketable securities | 226,932 | 211,216 |
Trade accounts receivable, net of allowance of $1,752 and $1,540 | 135,585 | 154,844 |
Deferred income taxes | 12,948 | 12,974 |
Income taxes receivable | 8,429 | 4,502 |
Other current assets | 12,536 | 9,544 |
Total current assets | 396,430 | 393,080 |
Property and equipment, net | 33,855 | 30,156 |
Long-term deferred income taxes | 70,765 | 69,258 |
Long-term other assets | 3,016 | 2,783 |
Intangible assets, net | 39,419 | 45,664 |
Goodwill | 46,882 | 46,860 |
Total assets | 590,367 | 587,801 |
Current liabilities: | ||
Accounts payable | 8,330 | 4,752 |
Accrued expenses | 40,326 | 42,958 |
Accrued compensation and related expenses | 37,249 | 47,250 |
Deferred revenue | 143,001 | 134,672 |
Total current liabilities | 228,906 | 229,632 |
Income taxes payable | 24,919 | 24,896 |
Long-term deferred revenue | 16,214 | 20,859 |
Other long-term liabilities | 16,751 | 17,709 |
Total liabilities | $ 286,790 | $ 293,096 |
Stockholders' equity: | ||
Preferred stock, 1,000 shares authorized; no shares issued and outstanding | ||
Common stock, 200,000 shares authorized; 76,627 shares and 76,357 shares issued and outstanding | $ 766 | $ 764 |
Additional paid-in capital | 147,257 | 141,495 |
Retained earnings | 157,495 | 153,058 |
Accumulated other comprehensive loss | (1,941) | (612) |
Total stockholders' equity | 303,577 | 294,705 |
Total liabilities and stockholders' equity | $ 590,367 | $ 587,801 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance for sales credit memos | $ 1,752 | $ 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 | 76,627,000 | 76,357,000 |
Common stock, shares outstanding | 76,627,000 | 76,357,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Software license | $ 63,497 | $ 54,012 | $ 121,472 | $ 106,626 |
Maintenance | 49,329 | 45,393 | 98,081 | 90,274 |
Services | 49,193 | 43,580 | 96,384 | 86,549 |
Total revenue | 162,019 | 142,985 | 315,937 | 283,449 |
Cost of revenue: | ||||
Software license | 1,030 | 1,177 | 2,106 | 2,756 |
Maintenance | 5,476 | 5,044 | 10,656 | 9,708 |
Services | 48,275 | 40,470 | 92,078 | 80,140 |
Total cost of revenue | 54,781 | 46,691 | 104,840 | 92,604 |
Gross profit | 107,238 | 96,294 | 211,097 | 190,845 |
Operating expenses: | ||||
Selling and marketing | 60,389 | 56,342 | 116,124 | 102,149 |
Research and development | 31,372 | 27,323 | 61,216 | 51,932 |
General and administrative | 10,214 | 10,250 | 16,559 | 19,552 |
Acquisition-related | 13 | 157 | 39 | 363 |
Total operating expenses | 101,988 | 94,072 | 193,938 | 173,996 |
Income from operations | 5,250 | 2,222 | 17,159 | 16,849 |
Foreign currency transaction (loss) gain | (968) | (4) | (3,930) | 318 |
Interest income, net | 216 | 163 | 529 | 287 |
Other income (expense), net | 3 | 6 | 3 | (526) |
Income (loss) before provision (benefit) for income taxes | 4,501 | 2,387 | 13,761 | 16,928 |
Provision for income taxes | 1,397 | 883 | 4,722 | 5,659 |
Net income | $ 3,104 | $ 1,504 | $ 9,039 | $ 11,269 |
Earnings per share: | ||||
Basic | $ 0.04 | $ 0.02 | $ 0.12 | $ 0.15 |
Diluted | $ 0.04 | $ 0.02 | $ 0.11 | $ 0.14 |
Weighted-average number of common shares outstanding: | ||||
Basic | 76,626 | 76,286 | 76,514 | 76,385 |
Diluted | 78,950 | 78,280 | 78,771 | 78,563 |
Cash dividends declared per share | $ 0.030 | $ 0.030 | $ 0.060 | $ 0.045 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 3,104 | $ 1,504 | $ 9,039 | $ 11,269 |
Other comprehensive income (loss): | ||||
Unrealized (loss) gain on securities, net of tax | (86) | (3) | 5 | 28 |
Foreign currency translation adjustments | 1,762 | 891 | (1,334) | 1,276 |
Total other comprehensive income (loss), net | 1,676 | 888 | (1,329) | 1,304 |
Comprehensive income | $ 4,780 | $ 2,392 | $ 7,710 | $ 12,573 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income | $ 9,039 | $ 11,269 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Excess tax benefits from exercise or vesting of equity awards | (2,280) | (2,526) |
Deferred income taxes | (1,525) | (899) |
Depreciation and amortization | 11,258 | 11,412 |
Stock-based compensation expense | 14,914 | 8,453 |
Foreign currency transaction loss (gain) | 3,930 | (318) |
Other non-cash items | 550 | 495 |
Change in operating assets and liabilities: | ||
Trade accounts receivable | 16,645 | 51,155 |
Income taxes receivable and other current assets | (4,853) | (3,836) |
Accounts payable and accrued expenses | (10,507) | 94 |
Deferred revenue | 2,378 | (214) |
Other long-term assets and liabilities | (150) | (1,150) |
Cash provided by operating activities | 39,399 | 73,935 |
Investing activities: | ||
Purchases of marketable securities | (31,504) | (29,547) |
Proceeds from maturities and called marketable securities | 21,120 | 15,996 |
Payments for acquisitions | (535) | (1,593) |
Investment in property and equipment | (7,293) | (2,864) |
Cash used in investing activities | (18,212) | (18,008) |
Financing activities: | ||
Issuance of common stock for share-based compensation plans | 587 | 338 |
Excess tax benefits from exercise or vesting of equity awards | 2,280 | 2,526 |
Dividend payments to shareholders | (4,594) | (2,290) |
Common stock repurchases for tax withholdings for net settlement of equity awards | (4,432) | (3,402) |
Common stock repurchases under share repurchase programs | (7,075) | (8,459) |
Cash used in financing activities | (13,234) | (11,287) |
Effect of exchange rates on cash and cash equivalents | (1,674) | 2,240 |
Net increase in cash and cash equivalents | 6,279 | 46,880 |
Cash and cash equivalents, beginning of period | 114,585 | 80,231 |
Cash and cash equivalents, end of period | $ 120,864 | $ 127,111 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2015 | |
NEW ACCOUNTING PRONOUNCEMENTS | 2. NEW ACCOUNTING PRONOUNCEMENTS Revenue from Contracts with Customers: |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Jun. 30, 2015 | |
MARKETABLE SECURITIES | 3. MARKETABLE SECURITIES June 30, 2015 (in thousands) Amortized Unrealized Unrealized Fair Value Municipal bonds $ 35,493 $ 20 $ (43 ) $ 35,470 Corporate bonds 66,520 14 (72 ) 66,462 Certificates of deposit 4,131 6 (1 ) 4,136 $ 106,144 $ 40 $ (116 ) $ 106,068 December 31, 2014 (in thousands) Amortized Unrealized Unrealized Fair Value 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 loss, net of related income taxes. As of June 30, 2015, remaining maturities of marketable debt securities ranged from July 2015 to June 2017, with a weighted-average remaining maturity of approximately 13 months. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 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 cash, accounts receivable, and intercompany receivables and payables held by its U.S. operating company. Effective on April 1, 2015, the Company restructured its operations with its clients based outside the Americas. These clients began transacting with Pegasystems Limited, a United Kingdom (“U.K.”) subsidiary of Pegasystems Inc., which has the British pound as its functional currency. This reorganization resulted in increased cash, accounts receivable, and intercompany receivables and payables held by Pegasystems Limited in currencies other than the British pound. As a result, the Company’s exposure to foreign currency exchange rate fluctuations in the U.S. dollar, the Euro, and the Australian dollar relative to the British pound increased, while its exposure to foreign currency exchange rate fluctuations in the British pound, the Euro, and the Australian dollar relative to the U.S. dollar decreased. In July 2015, as a result of this operational reorganization, the Company implemented its revised hedging program under which it fully or partially hedges its non-functional currency exposures for Pegasystems Inc. and Pegasystems Limited, utilizing forward contracts with terms not greater than 180 days. The Company executed forward contracts in July 2015 to hedge its exposures to Euro and British pound denominated cash, accounts receivable, and intercompany receivables and payables held by Pegasystems Inc., and to Euro, U.S. dollar, and Australian dollar denominated cash, accounts receivable, and intercompany receivables and payables held by Pegasystems Limited. The forward contracts utilized by the Company, both prior to March 2014 and under its revised hedging program, are not designated as hedging instruments. 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 income (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 cash, accounts receivable, and intercompany receivables and payables held by Pegasystems Inc. and Pegasystems Limited, thus partly mitigating the volatility. The Company did not enter into any forward contracts between March 2014 and June 2015, and as of June 30, 2015 and December 31, 2014, the Company did not have any forward contracts outstanding. During the six months ended June 30, 2014, the Company entered into forward contracts with an aggregate notional value of $87.9 million, and the total change in fair value recorded in other income (expense), net, was $0.5 million. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS Assets Measured at Fair Value on a Recurring Basis The Company records its marketable securities 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. 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 significant transfers between Level 1 and Level 2 during the three and six months ended June 30, 2015. The fair value hierarchy of the Company’s cash equivalents and marketable securities is as follows: Fair Value Measurements at Reporting Date Using (in thousands) June 30, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Money market funds (1) $ 2,497 $ 2,497 $ — Marketable securities: Municipal bonds $ 35,470 $ — $ 35,470 Corporate bonds 66,462 — 66,462 Certificates of deposit 4,136 — 4,136 Total marketable securities $ 106,068 $ — $ 106,068 (1) Included in “cash and cash equivalents” in the accompanying unaudited condensed consolidated balance sheet as of June 30, 2015, in addition to $118.4 million of cash. Fair Value Measurements at (in thousands) December 31, 2014 Quoted Prices Significant Money market funds (1) $ 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 (1) Included in “cash and cash equivalents” in the accompanying unaudited condensed consolidated balance sheet as of December 31, 2014, in addition to $112.3 million of cash. 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 six 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 | 6 Months Ended |
Jun. 30, 2015 | |
TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE | 6. TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (in thousands) June 30, December 31, Trade accounts receivable $ 122,210 $ 128,757 Unbilled trade accounts receivable 15,127 27,627 Total accounts receivable 137,337 156,384 Allowance for sales credit memos (1,752 ) (1,540 ) $ 135,585 $ 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 A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 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 22 Balance as of June 30, $ 46,882 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 As of June 30, 2015 Customer related intangibles 4-9 years $ 49,601 $ (27,402 ) $ 22,199 Technology 3-9 years 48,342 (31,580 ) 16,762 Other intangibles 3 years 5,361 (4,903 ) 458 Total $ 103,304 $ (63,885 ) $ 39,419 (in thousands) Range of Cost Accumulated Net Book 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 Six Months Ended (in thousands) 2015 2014 2015 2014 Cost of revenue $ 1,347 $ 1,444 $ 2,690 $ 3,284 Selling and marketing 1,534 1,499 3,065 2,995 General and administrative 238 481 502 901 Total amortization expense $ 3,119 $ 3,424 $ 6,257 $ 7,180 Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows: (in thousands) as of June 30, 2015 Future estimated Remainder of 2015 $ 5,954 2016 11,524 2017 9,826 2018 8,826 2019 3,034 2020 and thereafter 255 $ 39,419 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 6 Months Ended |
Jun. 30, 2015 | |
ACCRUED EXPENSES | 8. ACCRUED EXPENSES (in thousands) June 30, December 31, Partner commissions $ 3,003 $ 2,441 Other taxes 9,144 10,970 Employee reimbursable expenses 2,589 1,474 Dividends payable 2,302 2,294 Professional services contractor fees 3,760 2,297 Self-insurance health and dental claims 1,519 2,115 Professional fees 1,989 2,444 Short-term deferred rent 1,564 1,446 Income taxes payable 885 8,966 Acquisition-related expenses and merger consideration 2,176 2,702 Restructuring 401 461 Marketing and sales program expenses 4,737 1,914 Cloud hosting expenses 1,654 516 Leasehold improvements in process 1,653 — Other 2,950 2,918 $ 40,326 $ 42,958 |
DEFERRED REVENUE
DEFERRED REVENUE | 6 Months Ended |
Jun. 30, 2015 | |
DEFERRED REVENUE | 9. DEFERRED REVENUE (in thousands) June 30, December 31, Software license $ 36,429 $ 38,961 Maintenance 89,474 83,467 Cloud 8,996 4,209 Services and other 8,102 8,035 Current deferred revenue 143,001 134,672 Software license 15,914 19,878 Maintenance and services 300 981 Long-term deferred revenue 16,214 20,859 $ 159,215 $ 155,531 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
STOCK-BASED COMPENSATION | 10. STOCK-BASED COMPENSATION Stock-based compensation expense was reflected in the Company’s unaudited condensed consolidated statements of operations as follows: Three Months Ended Six Months Ended (in thousands) 2015 2014 2015 2014 Cost of revenues $ 2,281 $ 1,387 $ 4,234 $ 2,398 Operating expenses 6,364 3,771 10,680 6,055 Total stock-based compensation before tax $ 8,645 $ 5,158 $ 14,914 $ 8,453 Income tax benefit $ (2,328 ) $ (1,591 ) $ (4,111 ) $ (2,582 ) During the first six months of 2015, the Company issued approximately 592,000 shares of common stock to its employees and 25,000 shares to its non-employee directors under the Company’s share-based compensation plans. During the first six months of 2015, the Company granted approximately 1,620,000 restricted stock units (“RSUs”) and 2,048,000 non-qualified stock options to its employees with total fair values of approximately $32 million and $15.3 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 June 30, 2015, the Company had approximately $41.6 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 2.2 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
EARNINGS PER SHARE | 11. 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 and RSUs, 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 Six Months Ended (in thousands, except per share amounts) 2015 2014 2015 2014 Basic Net income $ 3,104 $ 1,504 $ 9,039 $ 11,269 Weighted-average common shares outstanding 76,626 76,286 76,514 76,385 Earnings per share, basic $ 0.04 $ 0.02 $ 0.12 $ 0.15 Diluted Net income $ 3,104 $ 1,504 $ 9,039 $ 11,269 Weighted-average common shares outstanding, basic 76,626 76,286 76,514 76,385 Weighted-average effect of dilutive securities: Stock options 1,525 1,607 1,517 1,766 RSUs 799 387 740 412 Effect of assumed exercise of stock options and RSUs 2,324 1,994 2,257 2,178 Weighted-average common shares outstanding, diluted 78,950 78,280 78,771 78,563 Earnings per share, diluted $ 0.04 $ 0.02 $ 0.11 $ 0.14 Outstanding options and RSUs excluded as impact would be anti-dilutive 223 166 141 112 |
GEOGRAPHIC INFORMATION AND MAJO
GEOGRAPHIC INFORMATION AND MAJOR CLIENTS | 6 Months Ended |
Jun. 30, 2015 | |
GEOGRAPHIC INFORMATION AND MAJOR CLIENTS | 12. 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 clients based outside of the U.S. The Company derived its revenue from the following geographic areas: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2015 2014 2015 2014 U.S. $ 87,867 54 % $ 70,411 49 % $ 178,031 56 % $ 152,428 54 % Other Americas 27,380 17 % 5,464 4 % 39,677 13 % 9,304 3 % United Kingdom 21,149 13 % 24,643 17 % 41,376 13 % 53,557 19 % Other EMEA 15,835 10 % 34,008 24 % 34,703 11 % 50,308 18 % Asia Pacific 9,788 6 % 8,459 6 % 22,150 7 % 17,852 6 % $ 162,019 100 % $ 142,985 100 % $ 315,937 100 % $ 283,449 100 % There were no clients accounting for 10% or more of the Company’s total revenue during the second quarter and first six 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 (Dollars in thousands) 2015 2014 Trade receivables, net of allowance $ 135,585 $ 154,844 Client A 13 % n/a |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Available for Sale Securities Reconciliation | June 30, 2015 (in thousands) Amortized Unrealized Unrealized Fair Value Municipal bonds $ 35,493 $ 20 $ (43 ) $ 35,470 Corporate bonds 66,520 14 (72 ) 66,462 Certificates of deposit 4,131 6 (1 ) 4,136 $ 106,144 $ 40 $ (116 ) $ 106,068 December 31, 2014 (in thousands) Amortized Unrealized Unrealized Fair Value 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 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Cash Equivalents and Marketable Securities | The fair value hierarchy of the Company’s cash equivalents and marketable securities is as follows: Fair Value Measurements at Reporting Date Using (in thousands) June 30, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Money market funds (1) $ 2,497 $ 2,497 $ — Marketable securities: Municipal bonds $ 35,470 $ — $ 35,470 Corporate bonds 66,462 — 66,462 Certificates of deposit 4,136 — 4,136 Total marketable securities $ 106,068 $ — $ 106,068 (1) Included in “cash and cash equivalents” in the accompanying unaudited condensed consolidated balance sheet as of June 30, 2015, in addition to $118.4 million of cash. Fair Value Measurements at (in thousands) December 31, 2014 Quoted Prices Significant Money market funds (1) $ 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 (1) Included in “cash and cash equivalents” in the accompanying unaudited condensed consolidated balance sheet as of December 31, 2014, in addition to $112.3 million of cash. |
TRADE ACCOUNTS RECEIVABLE, NE21
TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Trade Accounts Receivable | (in thousands) June 30, December 31, Trade accounts receivable $ 122,210 $ 128,757 Unbilled trade accounts receivable 15,127 27,627 Total accounts receivable 137,337 156,384 Allowance for sales credit memos (1,752 ) (1,540 ) $ 135,585 $ 154,844 |
GOODWILL AND OTHER INTANGIBLE22
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 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 22 Balance as of June 30, $ 46,882 |
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 As of June 30, 2015 Customer related intangibles 4-9 years $ 49,601 $ (27,402 ) $ 22,199 Technology 3-9 years 48,342 (31,580 ) 16,762 Other intangibles 3 years 5,361 (4,903 ) 458 Total $ 103,304 $ (63,885 ) $ 39,419 (in thousands) Range of Cost Accumulated Net Book 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 Six Months Ended (in thousands) 2015 2014 2015 2014 Cost of revenue $ 1,347 $ 1,444 $ 2,690 $ 3,284 Selling and marketing 1,534 1,499 3,065 2,995 General and administrative 238 481 502 901 Total amortization expense $ 3,119 $ 3,424 $ 6,257 $ 7,180 |
Estimated Future Amortization Expense | Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows: (in thousands) as of June 30, 2015 Future estimated Remainder of 2015 $ 5,954 2016 11,524 2017 9,826 2018 8,826 2019 3,034 2020 and thereafter 255 $ 39,419 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Accrued Expenses | (in thousands) June 30, December 31, Partner commissions $ 3,003 $ 2,441 Other taxes 9,144 10,970 Employee reimbursable expenses 2,589 1,474 Dividends payable 2,302 2,294 Professional services contractor fees 3,760 2,297 Self-insurance health and dental claims 1,519 2,115 Professional fees 1,989 2,444 Short-term deferred rent 1,564 1,446 Income taxes payable 885 8,966 Acquisition-related expenses and merger consideration 2,176 2,702 Restructuring 401 461 Marketing and sales program expenses 4,737 1,914 Cloud hosting expenses 1,654 516 Leasehold improvements in process 1,653 — Other 2,950 2,918 $ 40,326 $ 42,958 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Deferred Revenue | (in thousands) June 30, December 31, Software license $ 36,429 $ 38,961 Maintenance 89,474 83,467 Cloud 8,996 4,209 Services and other 8,102 8,035 Current deferred revenue 143,001 134,672 Software license 15,914 19,878 Maintenance and services 300 981 Long-term deferred revenue 16,214 20,859 $ 159,215 $ 155,531 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands) 2015 2014 2015 2014 Cost of revenues $ 2,281 $ 1,387 $ 4,234 $ 2,398 Operating expenses 6,364 3,771 10,680 6,055 Total stock-based compensation before tax $ 8,645 $ 5,158 $ 14,914 $ 8,453 Income tax benefit $ (2,328 ) $ (1,591 ) $ (4,111 ) $ (2,582 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Basic and Diluted Earnings (Loss) Per Share | Three Months Ended Six Months Ended (in thousands, except per share amounts) 2015 2014 2015 2014 Basic Net income $ 3,104 $ 1,504 $ 9,039 $ 11,269 Weighted-average common shares outstanding 76,626 76,286 76,514 76,385 Earnings per share, basic $ 0.04 $ 0.02 $ 0.12 $ 0.15 Diluted Net income $ 3,104 $ 1,504 $ 9,039 $ 11,269 Weighted-average common shares outstanding, basic 76,626 76,286 76,514 76,385 Weighted-average effect of dilutive securities: Stock options 1,525 1,607 1,517 1,766 RSUs 799 387 740 412 Effect of assumed exercise of stock options and RSUs 2,324 1,994 2,257 2,178 Weighted-average common shares outstanding, diluted 78,950 78,280 78,771 78,563 Earnings per share, diluted $ 0.04 $ 0.02 $ 0.11 $ 0.14 Outstanding options and RSUs excluded as impact would be anti-dilutive 223 166 141 112 |
GEOGRAPHIC INFORMATION AND MA27
GEOGRAPHIC INFORMATION AND MAJOR CLIENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Revenue by Geographic Area | The Company’s international revenue is from clients based outside of the U.S. The Company derived its revenue from the following geographic areas: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2015 2014 2015 2014 U.S. $ 87,867 54 % $ 70,411 49 % $ 178,031 56 % $ 152,428 54 % Other Americas 27,380 17 % 5,464 4 % 39,677 13 % 9,304 3 % United Kingdom 21,149 13 % 24,643 17 % 41,376 13 % 53,557 19 % Other EMEA 15,835 10 % 34,008 24 % 34,703 11 % 50,308 18 % Asia Pacific 9,788 6 % 8,459 6 % 22,150 7 % 17,852 6 % $ 162,019 100 % $ 142,985 100 % $ 315,937 100 % $ 283,449 100 % |
Trade Receivables of Major Clients | There were no clients accounting for 10% or more of the Company’s total revenue during the second quarter and first six 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 (Dollars in thousands) 2015 2014 Trade receivables, net of allowance $ 135,585 $ 154,844 Client A 13 % n/a |
Schedule of Marketable Securiti
Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 106,144 | $ 96,735 |
Unrealized Gains | 40 | 59 |
Unrealized Losses | (116) | (163) |
Fair Value | 106,068 | 96,631 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 35,493 | 27,820 |
Unrealized Gains | 20 | 52 |
Unrealized Losses | (43) | (17) |
Fair Value | 35,470 | 27,855 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 66,520 | 65,487 |
Unrealized Gains | 14 | 5 |
Unrealized Losses | (72) | (144) |
Fair Value | 66,462 | 65,348 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,131 | 3,428 |
Unrealized Gains | 6 | 2 |
Unrealized Losses | (1) | (2) |
Fair Value | $ 4,136 | $ 3,428 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average remaining maturity period of marketable debt securities, months | 13 months |
Minimum | |
Schedule of Available-for-sale Securities [Line Items] | |
Remaining maturities of marketable debt securities | 2015-07 |
Maximum | |
Schedule of Available-for-sale Securities [Line Items] | |
Remaining maturities of marketable debt securities | 2017-06 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||||
Total change in fair value recorded in other income (expense) | $ 500,000 | |||
Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Derivative outstanding | $ 0 | $ 0 | ||
Forward Contracts | ||||
Derivative [Line Items] | ||||
Notional amount | $ 87,900,000 | |||
Subsequent Event | Maximum | ||||
Derivative [Line Items] | ||||
Term of derivative contracts | 180 days |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of Significant transfers between Level 1 and Level 2 | $ 0 | $ 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairments recognized on assets | $ 0 | $ 0 |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total marketable securities | $ 106,068 | $ 96,631 | ||
Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 2,497 | [1] | 2,295 | [2] |
Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total marketable securities | 35,470 | 27,855 | ||
Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total marketable securities | 66,462 | 65,348 | ||
Certificates of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total marketable securities | 4,136 | 3,428 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 2,497 | [1] | 2,295 | [2] |
Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total marketable securities | 106,068 | 96,631 | ||
Significant Other Observable Inputs (Level 2) | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total marketable securities | 35,470 | 27,855 | ||
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total marketable securities | 66,462 | 65,348 | ||
Significant Other Observable Inputs (Level 2) | Certificates of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total marketable securities | $ 4,136 | $ 3,428 | ||
[1] | Included in "cash and cash equivalents" in the accompanying unaudited condensed consolidated balance sheet as of June 30, 2015, in addition to $118.4 million of cash. | |||
[2] | Included in "cash and cash equivalents" in the accompanying unaudited condensed consolidated balance sheet as of December 31, 2014, in addition to $112.3 million of cash. |
Cash Equivalents and Marketab33
Cash Equivalents and Marketable Securities (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash | $ 118.4 | $ 112.3 |
Schedule of Trade Accounts Rece
Schedule of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 137,337 | $ 156,384 |
Allowance for sales credit memos | (1,752) | (1,540) |
Total accounts receivable net | 135,585 | 154,844 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 122,210 | 128,757 |
Unbilled accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 15,127 | $ 27,627 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Balance as of January 1, | $ 46,860 |
Translation adjustments | 22 |
Balance as of June 30, | $ 46,882 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangible Asset (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | ||
Cost | $ 103,304 | $ 103,293 |
Accumulated Amortization | (63,885) | (57,629) |
Net Book Value | 39,419 | 45,664 |
Customer related intangibles | ||
Intangible Assets [Line Items] | ||
Cost | 49,601 | 49,590 |
Accumulated Amortization | (27,402) | (24,338) |
Net Book Value | 22,199 | 25,252 |
Technology | ||
Intangible Assets [Line Items] | ||
Cost | 48,342 | 48,342 |
Accumulated Amortization | (31,580) | (28,890) |
Net Book Value | $ 16,762 | 19,452 |
Other intangibles | ||
Intangible Assets [Line Items] | ||
Range of Useful Lives | 3 years | |
Cost | $ 5,361 | 5,361 |
Accumulated Amortization | (4,903) | (4,401) |
Net Book Value | $ 458 | $ 960 |
Minimum | Customer related intangibles | ||
Intangible Assets [Line Items] | ||
Range of Useful Lives | 4 years | 4 years |
Minimum | Technology | ||
Intangible Assets [Line Items] | ||
Range of Useful Lives | 3 years | 3 years |
Minimum | Other intangibles | ||
Intangible Assets [Line Items] | ||
Range of Useful Lives | 1 year | |
Maximum | Customer related intangibles | ||
Intangible Assets [Line Items] | ||
Range of Useful Lives | 9 years | 9 years |
Maximum | Technology | ||
Intangible Assets [Line Items] | ||
Range of Useful Lives | 9 years | 9 years |
Maximum | Other intangibles | ||
Intangible Assets [Line Items] | ||
Range of Useful Lives | 3 years |
Amortization Expense of Acquire
Amortization Expense of Acquired Intangibles (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization expense | $ 3,119 | $ 3,424 | $ 6,257 | $ 7,180 |
Cost of revenue | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization expense | 1,347 | 1,444 | 2,690 | 3,284 |
Selling and marketing | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization expense | 1,534 | 1,499 | 3,065 | 2,995 |
General and administrative | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization expense | $ 238 | $ 481 | $ 502 | $ 901 |
Estimated Future Amortization E
Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Intangible Assets [Line Items] | ||
Remainder of 2015 | $ 5,954 | |
2,016 | 11,524 | |
2,017 | 9,826 | |
2,018 | 8,826 | |
2,019 | 3,034 | |
2020 and thereafter | 255 | |
Net Book Value | $ 39,419 | $ 45,664 |
Schedule of Accrued Expenses (D
Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accrued expenses | ||
Partner commissions | $ 3,003 | $ 2,441 |
Other taxes | 9,144 | 10,970 |
Employee reimbursable expenses | 2,589 | 1,474 |
Dividends payable | 2,302 | 2,294 |
Professional services contractor fees | 3,760 | 2,297 |
Self-insurance health and dental claims | 1,519 | 2,115 |
Professional fees | 1,989 | 2,444 |
Short-term deferred rent | 1,564 | 1,446 |
Income taxes payable | 885 | 8,966 |
Acquisition-related expenses and merger consideration | 2,176 | 2,702 |
Restructuring | 401 | 461 |
Marketing and sales program expenses | 4,737 | 1,914 |
Cloud hosting expenses | 1,654 | 516 |
Leasehold improvements in process | 1,653 | |
Other | 2,950 | 2,918 |
Total accrued expenses | $ 40,326 | $ 42,958 |
Schedule of Deferred Revenue (D
Schedule of Deferred Revenue (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | $ 143,001 | $ 134,672 |
Long-term deferred revenue | 16,214 | 20,859 |
Total deferred revenue | 159,215 | 155,531 |
Software license | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | 36,429 | 38,961 |
Long-term deferred revenue | 15,914 | 19,878 |
Maintenance | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | 89,474 | 83,467 |
Cloud | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | 8,996 | 4,209 |
Services and other | ||
Deferred Revenue Arrangement [Line Items] | ||
Current deferred revenue | 8,102 | 8,035 |
Maintenance and services | ||
Deferred Revenue Arrangement [Line Items] | ||
Long-term deferred revenue | $ 300 | $ 981 |
Stock Based Compensation Expens
Stock Based Compensation Expense Included in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation before tax | $ 8,645 | $ 5,158 | $ 14,914 | $ 8,453 |
Income tax benefit | (2,328) | (1,591) | (4,111) | (2,582) |
Cost Of Revenues | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation before tax | 2,281 | 1,387 | 4,234 | 2,398 |
Operating Expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation before tax | $ 6,364 | $ 3,771 | $ 10,680 | $ 6,055 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 41.6 |
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years) | 2 years 2 months 12 days |
Employees | Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued | 592,000 |
Non-employee directors | Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued | 25,000 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted | 1,620,000 |
Fair value of shares granted | $ 32 |
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 | $ 15.3 |
Number of shares granted | 2,048,000 |
Summary of Basic and Diluted Ea
Summary of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earning per share reconciliation | ||||
Net income | $ 3,104 | $ 1,504 | $ 9,039 | $ 11,269 |
Weighted-average common shares outstanding | 76,626 | 76,286 | 76,514 | 76,385 |
Earnings per share, basic | $ 0.04 | $ 0.02 | $ 0.12 | $ 0.15 |
Net income | $ 3,104 | $ 1,504 | $ 9,039 | $ 11,269 |
Weighted-average common shares outstanding, basic | 76,626 | 76,286 | 76,514 | 76,385 |
Effect of assumed exercise of stock options and RSUs | 2,324 | 1,994 | 2,257 | 2,178 |
Weighted-average common shares outstanding, diluted | 78,950 | 78,280 | 78,771 | 78,563 |
Earnings per share, diluted | $ 0.04 | $ 0.02 | $ 0.11 | $ 0.14 |
Outstanding options and RSUs excluded as impact would be anti-dilutive | 223 | 166 | 141 | 112 |
Stock Options | ||||
Earning per share reconciliation | ||||
Weighted-average effect of dilutive securities | 1,525 | 1,607 | 1,517 | 1,766 |
RSUs | ||||
Earning per share reconciliation | ||||
Weighted-average effect of dilutive securities | 799 | 387 | 740 | 412 |
Geographic Information and Ma44
Geographic Information and Major Clients - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015Customer | Jun. 30, 2014Customer | Jun. 30, 2015CustomerUnitSegment | Jun. 30, 2014Customer | Dec. 31, 2014 | |
Geographic information and major clients | |||||
Number of reportable segment, digital enterprise business solutions | 1 | ||||
Number of reporting unit | 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 second quarter and first six months of 2015 and 2014. | ||||
Number of clients representing 10% or more of Company's total revenue | Customer | 0 | 0 | 0 | 0 | |
Credit Concentration Risk | Total Revenue | Minimum | |||||
Geographic information and major clients | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Credit Concentration Risk | Accounts receivable | Minimum | |||||
Geographic information and major clients | |||||
Concentration risk, percentage | 10.00% | 10.00% |
Revenue from International Clie
Revenue from International Clients by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Geographic revenue | $ 162,019 | $ 142,985 | $ 315,937 | $ 283,449 |
Geographic revenue percentage | 100.00% | 100.00% | 100.00% | 100.00% |
U.S. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Geographic revenue | $ 87,867 | $ 70,411 | $ 178,031 | $ 152,428 |
Geographic revenue percentage | 54.00% | 49.00% | 56.00% | 54.00% |
Other Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Geographic revenue | $ 27,380 | $ 5,464 | $ 39,677 | $ 9,304 |
Geographic revenue percentage | 17.00% | 4.00% | 13.00% | 3.00% |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Geographic revenue | $ 21,149 | $ 24,643 | $ 41,376 | $ 53,557 |
Geographic revenue percentage | 13.00% | 17.00% | 13.00% | 19.00% |
Other EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Geographic revenue | $ 15,835 | $ 34,008 | $ 34,703 | $ 50,308 |
Geographic revenue percentage | 10.00% | 24.00% | 11.00% | 18.00% |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Geographic revenue | $ 9,788 | $ 8,459 | $ 22,150 | $ 17,852 |
Geographic revenue percentage | 6.00% | 6.00% | 7.00% | 6.00% |
Trade Receivables of Major Clie
Trade Receivables of Major Clients (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | ||
Trade receivables, net of allowance | $ 135,585 | $ 154,844 |
Credit Concentration Risk | Accounts receivable | Client A | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 13.00% |