Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Apr. 02, 2015 | Jul. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Jan-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SEAC | ||
Entity Registrant Name | SEACHANGE INTERNATIONAL INC | ||
Entity Central Index Key | 1019671 | ||
Current Fiscal Year End Date | -30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,299,577 | ||
Entity Public Float | $232,231,128 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $90,019 | $115,734 |
Restricted cash | 1,073 | |
Marketable securities | 7,516 | 5,555 |
Accounts and other receivables, net of allowance for doubtful accounts of $400 and $327 at January 31, 2015 and January 31, 2014, respectively | 24,962 | 30,203 |
Unbilled receivables | 6,588 | 5,511 |
Inventories, net | 2,864 | 6,632 |
Prepaid expenses and other current assets | 3,026 | 5,242 |
Total current assets | 136,048 | 168,877 |
Property and equipment, net | 15,869 | 18,530 |
Marketable securities, long-term | 6,793 | 6,814 |
Investments in affiliates | 3,051 | 1,051 |
Intangible assets, net | 7,314 | 12,855 |
Goodwill | 41,008 | 45,150 |
Other assets | 2,268 | 836 |
Total assets | 212,351 | 254,113 |
Current liabilities: | ||
Accounts payable | 5,129 | 6,640 |
Other accrued expenses | 12,507 | 12,332 |
Deferred revenues | 17,398 | 24,030 |
Total current liabilities | 35,034 | 43,002 |
Deferred revenue, long-term | 1,690 | 1,598 |
Other liabilities, long-term | 1,493 | 936 |
Taxes payable, long-term | 1,993 | 2,503 |
Deferred tax liabilities, long-term | 1,090 | 1,633 |
Total liabilities | 41,300 | 49,672 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value;100,000,000 shares authorized; 32,733,636 shares issued and 32,693,852 outstanding at January 31, 2015, and 33,037,671 shares issued and 32,997,887 outstanding at January 31, 2014 | 327 | 330 |
Additional paid-in capital | 219,651 | 221,932 |
Treasury stock, at cost; 39,784 common shares | -1 | -1 |
Accumulated loss | -43,172 | -15,688 |
Accumulated other comprehensive loss | -5,754 | -2,132 |
Total stockholders' equity | 171,051 | 204,441 |
Total liabilities and stockholders' equity | $212,351 | $254,113 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $400 | $327 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,733,636 | 33,037,671 |
Common stock, shares outstanding | 32,693,852 | 32,997,887 |
Treasury stock, common shares | 39,784 | 39,784 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |||
Revenues: | ||||||
Products | $31,507 | $54,749 | $64,274 | |||
Services | 83,928 | 91,570 | 92,914 | |||
Total revenues | 115,435 | 146,319 | 157,188 | |||
Cost of revenues: | ||||||
Products | 8,845 | 10,526 | 17,397 | |||
Services | 48,272 | 55,075 | 52,162 | |||
Amortization of intangible assets | 1,070 | 1,269 | 2,429 | |||
Stock-based compensation expense | 141 | 250 | 157 | |||
Inventory write-down | 1,752 | |||||
Total cost of revenues | 58,328 | 67,120 | 73,897 | |||
Gross profit | 57,107 | 79,199 | 83,291 | |||
Operating expenses: | ||||||
Research and development | 42,169 | 39,657 | 38,667 | |||
Selling and marketing | 13,920 | 15,018 | 15,398 | |||
General and administrative | 16,014 | 17,618 | 17,674 | |||
Amortization of intangible assets | 4,084 | 3,361 | 3,966 | |||
Stock-based compensation expense | 3,079 | 2,709 | 5,772 | |||
Earn-outs and change in fair value of earn-outs | -60 | 2,435 | ||||
Professional fees-other | 671 | 1,614 | 1,619 | |||
Severance and other restructuring costs | 3,623 | 911 | 3,106 | |||
Total operating expenses | 83,560 | 80,828 | 88,637 | |||
Loss from operations | -26,453 | -1,629 | -5,346 | |||
Other expenses, net | -2,161 | -224 | -86 | |||
(Loss) gain on sale of investment in affiliates | -363 | 885 | ||||
Loss before income taxes and equity income in earnings of affiliates | -28,614 | -2,216 | -4,547 | |||
Income tax (benefit) provision | -1,106 | 55 | -1,555 | |||
Equity income in earnings of affiliates, net of tax | 19 | 44 | 193 | |||
Loss from continuing operations | -27,489 | -2,227 | -2,799 | |||
Loss on sale of discontinued operations | -14,073 | |||||
Income (loss) from discontinued operations, net of tax | 5 | -803 | -2,293 | |||
Net loss | -27,484 | -3,030 | -19,165 | |||
Net loss | -27,484 | -3,030 | -19,165 | |||
Other comprehensive loss, net of tax: | ||||||
Foreign currency translation adjustment | -3,647 | -294 | 7,954 | |||
Unrealized gain (loss) on marketable securities | 25 | [1] | -12 | [1] | -6 | [1] |
Comprehensive loss | ($31,106) | ($3,336) | ($11,217) | |||
Loss per share: | ||||||
Basic loss per share | ($0.84) | ($0.09) | ($0.59) | |||
Diluted loss per share | ($0.84) | ($0.09) | ($0.59) | |||
Loss per share from continuing operations: | ||||||
Basic loss per share | ($0.84) | ($0.07) | ($0.09) | |||
Diluted loss per share | ($0.84) | ($0.07) | ($0.09) | |||
Income (loss) per share from discontinued operations: | ||||||
Basic loss per share | $0 | ($0.02) | ($0.50) | |||
Diluted loss per share | $0 | ($0.02) | ($0.50) | |||
Weighted average common shares outstanding: | ||||||
Basic | 32,772 | 32,718 | 32,494 | |||
Diluted | 32,772 | 32,718 | 32,494 | |||
[1] | Tax amounts for all periods were not significant |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Cash flows from operating activities: | |||
Net loss | ($27,484) | ($3,030) | ($19,165) |
Net (income) loss from discontinued operations | -5 | 803 | 16,366 |
Adjustments to reconcile net loss to net cash (used in) provided by continuing operating activities: | |||
Depreciation and amortization of property and equipment | 3,683 | 4,389 | 4,671 |
Amortization of intangible assets | 5,154 | 4,630 | 6,395 |
Stock-based compensation expense | 3,220 | 2,959 | 5,929 |
Deferred income taxes | -372 | -684 | -132 |
Other | 512 | 798 | 2,596 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,567 | 5,420 | 1,676 |
Unbilled receivables | -1,993 | -5,251 | 4,637 |
Inventories | 3,183 | -234 | 2,563 |
Prepaid expenses and other assets | 1,570 | 6,724 | -5,045 |
Accounts payable | -1,619 | -873 | -236 |
Accrued expenses | 1,650 | -3,146 | 1,430 |
Deferred revenues | -5,699 | -4,877 | -6,283 |
Other | 1,289 | 539 | 568 |
Net cash (used in) provided by operating activities from continuing operations | -13,344 | 8,167 | 15,970 |
Net cash provided by (used in) operating activities from discontinued operations | 5 | -803 | 1,387 |
Total cash (used in) provided by operating activities | -13,339 | 7,364 | 17,357 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -1,873 | -2,315 | -3,972 |
Purchases of marketable securities | -9,193 | -11,479 | -15,642 |
Proceeds from sale and maturity of marketable securities | 7,181 | 12,237 | 14,214 |
Investment in affiliate | -2,000 | ||
Proceeds from sale of equity investment | 229 | 1,128 | 885 |
Acquisition of businesses and payment of contingent consideration, net of cash acquired | -4,009 | -8,175 | |
Advance for Timeline Labs acquisition | -2,500 | ||
Other | 958 | 452 | |
Net cash used in investing activities from continuing operations | -8,156 | -3,480 | -12,238 |
Net cash provided by investing activities from discontinued operations | 4,000 | 25,232 | |
Total cash (used in) provided by investing activities | -8,156 | 520 | 12,994 |
Cash flows from financing activities: | |||
Repurchases of our common stock | -5,504 | -6,200 | |
Proceeds from issuance of common stock relating to stock option exercises | 1,058 | 2,191 | |
Total cash provided by (used in) financing activities | -5,504 | 1,058 | -4,009 |
Effect of exchange rate changes on cash | 1,284 | 71 | -206 |
Net (decrease) increase in cash and cash equivalents | -25,715 | 9,013 | 26,136 |
Cash and cash equivalents, beginning of period | 115,734 | 106,721 | 80,585 |
Cash and cash equivalents, end of period | 90,019 | 115,734 | 106,721 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 671 | 2,606 | 1,312 |
Interest paid | 6 | 4 | 89 |
Supplemental disclosure of non-cash activities: | |||
Transfer of items originally classified as inventories to equipment | 474 | 1,110 | 897 |
Issuance of common stock for settlement of contingent consideration related to acquisitions | 1,560 | ||
Asset held for sale reclassified to asset held for use and reclassified from current assets to property and equipment | $465 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Cumulative Translation Adjustment [Member] | Unrealized Gain/Loss on Investments [Member] | Treasury Stock [Member] |
In Thousands, except Share data | |||||||
Beginning balance at Jan. 31, 2012 | $210,938 | $326 | $213,880 | $6,507 | ($9,810) | $36 | ($1) |
Beginning balance, Shares at Jan. 31, 2012 | 32,534,444 | -39,784 | |||||
Issuance of common stock pursuant to exercise of stock options | 2,191 | 2 | 2,189 | ||||
Issuance of common stock pursuant to exercise of stock options, Shares | 304,550 | 304,550 | |||||
Issuance of common stock pursuant to vesting of restricted stock units | 4 | -4 | |||||
Issuance of common stock pursuant to vesting of restricted stock units, Shares | 359,676 | ||||||
Issuance of common stock pursuant to deferred consideration | 586 | 1 | 585 | ||||
Issuance of common stock pursuant to deferred consideration, Shares | 75,680 | ||||||
Purchase of treasury shares | -6,194 | -6,194 | |||||
Purchase of treasury shares, Shares | -764,024 | ||||||
Retirement of shares | -6 | -6 | |||||
Retirement of shares, Shares | -764,024 | 764,024 | |||||
Stock-based compensation expense | 5,903 | 5,903 | |||||
Change in fair value on marketable securities | -6 | -6 | |||||
Translation adjustment | 7,954 | 7,954 | |||||
Net loss | -19,165 | -19,165 | |||||
Ending balance at Jan. 31, 2013 | 202,201 | 327 | 216,359 | -12,658 | -1,856 | 30 | -1 |
Ending balance, Shares at Jan. 31, 2013 | 32,510,326 | -39,784 | |||||
Issuance of common stock pursuant to exercise of stock options | 1,058 | 1 | 1,057 | ||||
Issuance of common stock pursuant to exercise of stock options, Shares | 118,528 | 118,529 | |||||
Issuance of common stock pursuant to vesting of restricted stock units | 1 | -1 | |||||
Issuance of common stock pursuant to vesting of restricted stock units, Shares | 205,928 | ||||||
Issuance of common stock pursuant to deferred consideration | 1,559 | 1 | 1,558 | ||||
Issuance of common stock pursuant to deferred consideration, Shares | 202,888 | ||||||
Stock-based compensation expense | 2,959 | 2,959 | |||||
Change in fair value on marketable securities | -12 | -12 | |||||
Translation adjustment | -294 | -294 | |||||
Net loss | -3,030 | -3,030 | |||||
Ending balance at Jan. 31, 2014 | 204,441 | 330 | 221,932 | -15,688 | -2,150 | 18 | -1 |
Ending balance, Shares at Jan. 31, 2014 | 33,037,671 | -39,784 | |||||
Issuance of common stock pursuant to exercise of stock options, Shares | 0 | ||||||
Issuance of common stock pursuant to vesting of restricted stock units | 3 | -3 | |||||
Issuance of common stock pursuant to vesting of restricted stock units, Shares | 287,485 | ||||||
Purchase of treasury shares | -5,498 | -5,498 | |||||
Purchase of treasury shares, Shares | 591,520 | -591,520 | |||||
Retirement of shares | -6 | -6 | |||||
Retirement of shares, Shares | -591,520 | 591,520 | |||||
Stock-based compensation expense | 3,220 | 3,220 | |||||
Change in fair value on marketable securities | 25 | 25 | |||||
Translation adjustment | -3,647 | -3,647 | |||||
Net loss | -27,484 | -27,484 | |||||
Ending balance at Jan. 31, 2015 | $171,051 | $327 | $219,651 | ($43,172) | ($5,797) | $43 | ($1) |
Ending balance, Shares at Jan. 31, 2015 | 32,733,636 | -39,784 |
Nature_of_Business
Nature of Business | 12 Months Ended |
Jan. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business | 1. Nature of Business |
We are an industry leader in the delivery of multiscreen video. Our products and services facilitate the aggregation, licensing, management and distribution of video (primarily movies and television programming) and television advertising content to cable system operators, telecommunications companies and mobile communications providers. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Jan. 31, 2015 | ||||
Accounting Policies [Abstract] | ||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | |||
Significant accounting policies followed in the preparation of the accompanying consolidated financial statements are as follows: | ||||
Basis of Presentation and Principles of Consolidation | ||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. We consolidate the financial statements of our wholly-owned subsidiaries and all intercompany transactions and account balances have been eliminated in consolidation. We have reclassified certain prior fiscal year data to conform to our current fiscal year presentation. | ||||
We also hold minority investments in the capital stock of certain private companies having product offerings or customer relationships that have strategic importance. We evaluate our equity and debt investments and other contractual relationships with affiliate companies in order to determine whether the guidelines regarding the consolidation of VIE’s should be applied in the financial statements. Consolidation guidelines address consolidation by business enterprises of VIE’s that possess certain characteristics. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. We use qualitative analysis to determine whether or not we are the primary beneficiary of a VIE. We consider the rights and obligations conveyed by the implicit and explicit variable interest in each VIE and the relationship of these with the variable interests held by other parties to determine whether its variable interests will absorb a majority of a VIE’s expected losses, receive a majority of its expected residual returns, or both. If we determine that our variable interests will absorb a majority of the VIE’s expected losses, receive a majority of their expected residual returns, or both, we consolidate the VIE as the primary beneficiary, and if not, it is not consolidated. We have concluded that we are not the primary beneficiary for any variable interest entities during fiscal 2015. | ||||
Use of Estimates | ||||
The preparation of these financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. On an ongoing basis, management evaluates these estimates and judgments, including those related to the timing and amounts of revenue recognition, valuation of inventory, collectability of accounts receivable, valuation of investments and income taxes, assumptions used to determine stock-based compensation, valuation of goodwill and intangible assets and related amortization. Management bases these estimates on historical and anticipated results and trends and on various other assumptions that management believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from management’s estimates. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents include cash on hand and on deposit and highly liquid, temporary cash investments with an original maturity of three months or less. All cash equivalents are carried at cost, which approximates fair value. | ||||
Marketable Securities | ||||
We account for investments in accordance with authoritative guidance that defines investment classifications. We determine the appropriate classification of debt securities at the time of purchase and reevaluate such designation as of each balance sheet date. Our investment portfolio consists primarily of money market funds, U.S. treasury notes or bonds and U.S. government agency bonds at January 31, 2015 and 2014, but can consist of corporate debt investments, asset-backed securities and government-sponsored enterprises. Our marketable securities are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of tax, reported in stockholders’ equity as a component of accumulated other comprehensive loss. The amortization of premiums and accretion of discounts to maturity are computed under the effective interest method and are included in other expenses, net in our consolidated statements of operations and comprehensive loss. Interest on securities is recorded as earned and is also included in other expenses, net. Any realized gains or losses would be shown in the accompanying consolidated statements of operations and comprehensive loss in other expenses, net. | ||||
We evaluate our investments on a regular basis to determine whether an other-than-temporary decline in fair value has occurred. This evaluation consists of a review of several factors, including, but not limited to: the length of time and extent that an investment has been in an unrealized loss position; the existence of an event that would impair the issuer’s future earnings potential; and our intent and ability to hold an investment for a period of time sufficient to allow for any anticipated recovery in fair value. Declines in value below cost for investments where it is considered probable that all contractual terms of the investment will be satisfied, are due primarily to changes in interest rates, and where the company has the intent and ability to hold the investment for a period of time sufficient to allow a market recovery, are not assumed to be other-than-temporary. Any other-than-temporary declines in fair value are recorded in earnings and a new cost basis for the investment is established. | ||||
Fair Value Measurements | ||||
Definition and Hierarchy | ||||
The applicable accounting guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a framework for measuring fair value and expands required disclosure about the fair value measurements of assets and liabilities. This guidance requires us to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a non-recurring basis in periods subsequent to initial measurement, in a fair value hierarchy. | ||||
The fair value hierarchy is broken down into three levels based on the reliability of inputs and requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required, as well as the assets and liabilities that we value using those levels of inputs: | ||||
• | Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. | |||
• | Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not very active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||
• | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value measurements of the contingent consideration obligations related to our business acquisitions are valued using Level 3 inputs. | |||
Valuation Techniques | ||||
Inputs to valuation techniques are observable and unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. When developing fair value estimates for certain financial assets and liabilities, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices, market comparables and discounted cash flow projections. Financial instruments include money market funds, U.S. treasury notes or bonds and U.S. government agency bonds. | ||||
In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. In periods of market inactivity, the observability of prices and inputs may be reduced for certain instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3. | ||||
Concentration of Credit Risk | ||||
Financial instruments which potentially expose us to concentrations of credit risk include cash equivalents, investments in treasury bills, certificates of deposits and commercial paper, trade accounts receivable, accounts payable and accrued liabilities. We have cash investment policies which, among other things, limit investments to investment-grade securities. We restrict our cash equivalents and investments in marketable securities to repurchase agreements with major banks and U.S. government and corporate securities which are subject to minimal credit and market risk. We perform ongoing credit evaluations of our customers. As of January 31, 2015, two customers represented more than 10% of consolidated accounts receivable compared to one customer as of January 31, 2014. For fiscal 2015, 2014 and 2013, two, three and two customers each accounted for more than 10% of our total revenue. | ||||
Accounts Receivable and Allowances for Doubtful Accounts | ||||
For trade accounts receivable, we evaluate customers’ financial condition, require advance payments from certain of our customers and maintain reserves for potential credit losses. We perform ongoing credit evaluations of customers’ financial condition but generally do not require collateral. For some international customers, we require an irrevocable letter of credit to be issued by the customer before the purchase order is accepted. We monitor payments from customers and assess any collection issues. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments and record these allowances as a charge to general and administrative expenses in our consolidated statements of operations and comprehensive loss. We base our allowances for doubtful accounts on historical collections and write-off experience, current trends, credit assessments, and other analysis of specific customer situations. At January 31, 2015 and 2014, we had an allowance for doubtful accounts of $0.4 million and $0.3 million, respectively, to provide for potential credit losses. We charge off trade accounts receivables against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Recoveries of trade receivables previously charged off are recorded when received. | ||||
Inventory Valuation | ||||
Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (“FIFO”) method. Inventories consist primarily of components and subassemblies and finished products held for sale. The values of inventories are reviewed quarterly to determine that the carrying value is stated at the lower of cost or net realizable value. We record charges to reduce inventory to its net realizable value when impairment is identified through a quarterly review process. The obsolescence evaluation is based upon assumptions and estimates about future demand, or possible alternative uses and involves significant judgments. For the years ended January 31, 2015, 2014 and 2013, we recorded a provision for obsolescence of $0.1 million, $0.1 million and $0.3 million, respectively. | ||||
Property and Equipment | ||||
Property and equipment consists of land and buildings, office and computer equipment, leasehold improvements, demonstration equipment, deployed assets and spare components and assemblies used to service our installed base. Property and equipment are recorded at cost and depreciated over their estimated useful lives. Determining the useful lives of property and equipment requires us to make significant judgments that can materially impact our operating results. If our estimates require adjustment, it could have a material impact on our reported results. | ||||
Demonstration equipment consists of systems manufactured by us for use in marketing and selling activities. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the respective leases using the straight-line method. Deployed assets consist of movie systems owned and manufactured by us that are installed in a hotel environment. Deployed assets are depreciated over the life of the related service agreements. Capitalized service and spare components are depreciated over the estimated useful lives using the straight-line method. Maintenance and repair costs are expensed as incurred. | ||||
Generally, property and equipment include assets in service. Fully depreciated assets remaining in service along with related accumulated depreciation are not removed from the balance sheet until the corresponding asset is removed from service either through a retirement or sale. Upon retirement or sale of an asset or asset group, the cost of the assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net income or loss. | ||||
Investments in Affiliates | ||||
Our investments in affiliates include investments accounted for under the cost method and the equity method of accounting. The investments that represent less than a 20% ownership interest of the common shares of the affiliate are carried at cost. Under the equity method of accounting, which generally applies to investments that represent 20% to 50% ownership of the common shares of the affiliate, our proportionate ownership share of the earnings or losses of the affiliate are included in equity income in earnings of affiliates in our consolidated statements of operations and comprehensive loss. | ||||
We periodically review indicators of the fair value of our investments in affiliates in order to assess whether available facts or circumstances, both internally and externally, may suggest an “other than temporary” decline in the value of the investment. If we determine that an other-than-temporary impairment has occurred, we will write-down the investment to its fair value. The carrying value of an investment in an affiliate may be affected by the affiliate’s ability to obtain adequate funding and execute its business plans, general market conditions, the company’s current cash position, earnings and cash flow forecasts, recent operational performance, and any other readily available data. The inability of an affiliate to obtain future funding or successfully execute its business plan could adversely affect our equity earnings of the affiliate in the periods affected by those events. Future adverse changes in market conditions or poor operating results of the affiliates could result in equity losses or an inability to recover the carrying value of the investments in affiliates that may not be reflected in an investment’s current carrying value, thereby possibly requiring an impairment charge in the future. | ||||
Intangible Assets and Goodwill | ||||
Intangible assets consist of customer contracts, completed technology, non-compete agreements, trademarks and patents. The intangible assets are amortized to cost of sales and operating expenses, as appropriate, on a straight-line or accelerated basis, using the economic consumption life basis, in order to reflect the period that the assets will be consumed, which are: | ||||
Intangible assets with finite useful lives: | ||||
Customer contracts | 1 - 8 years | |||
Non compete agreements | 2 - 3 years | |||
Completed technology | 4 - 6 years | |||
Trademarks, patents and other | 5 years | |||
Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. | ||||
Impairment of Assets | ||||
Indefinite-lived intangible assets, such as goodwill are not amortized, but are evaluated for impairment, at the reporting unit level, annually in our third quarter beginning August 1st. Indefinite-lived intangible assets may be tested for impairment on an interim basis in addition to the annual evaluation if an event occurs or circumstances change such as declines in sales, earnings or cash flows, decline in the Company’s stock price, or material adverse changes in the business climate, which would more likely than not reduce the fair value of a reporting unit below its carrying amount. | ||||
The process of evaluating indefinite-lived intangible assets for impairment requires several judgments and assumptions to be made to determine the fair value of the Company, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and earnings, and the selection of comparable companies used to develop market-based assumptions. We may employ one or more of three generally accepted approaches for valuing businesses: the market approach, the income approach and the asset-based (cost) approach to arrive at the fair value. We chose to use the market approach and the income approach to determine the value of the Company for our testing in fiscal 2015. In calculating the fair value, we derived the standalone projected five year cash flows for the Company. This process started with the projected cash flows which were discounted. The choice of which approach and methods to use in a particular situation depends on the facts and circumstances. | ||||
We also evaluate property and equipment, intangible assets with finite useful lives and other long-lived assets on a regular basis for the existence of facts or circumstances, both internal and external that may suggest an asset is not recoverable. If such circumstances exist, we evaluate the carrying value of long-lived assets to determine if impairment exists based upon estimated undiscounted future cash flows over the remaining useful life of the assets and compares that value to the carrying value of the assets. Our cash flow estimates contain management’s best estimates, using appropriate and customary assumptions and projections at the time. | ||||
Income Taxes | ||||
Income tax comprises current and deferred tax. Income tax is recognized in the consolidated statements of operations and comprehensive loss except to the extent that it relates to items recognized directly within equity or in other comprehensive loss. Income taxes payable, which is included in other accrued expenses in our consolidated balance sheets, is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially-enacted at the reporting date, and any adjustment to tax payable in respect of previous years. | ||||
Deferred tax assets and liabilities are recognized, using the balance sheet method, for the expected tax consequences of temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of goodwill, the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they probably will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantially-enacted by the reporting date. | ||||
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. | ||||
We operate in multiple jurisdictions with complex tax policy and regulatory environments. In certain of these jurisdictions, we may take tax positions that management believes are supportable, but are potentially subject to successful challenge by the applicable taxing authority. These interpretational differences with the respective governmental taxing authorities can be impacted by the local economic and fiscal environment. We evaluate our tax positions and establish liabilities in accordance with the applicable accounting guidance on uncertainty in income taxes. We review these tax uncertainties in light of changing facts and circumstances, such as the progress of tax audits, and adjust them accordingly. We have a number of audits in process in various jurisdictions. Although the resolution of these tax positions is uncertain, based on currently available information, we believe that the ultimate outcomes will not have a material adverse effect on our financial position, results of operations or cash flows. | ||||
Because there are a number of estimates and assumptions inherent in calculating the various components of our tax provision, certain changes or future events such as changes in tax legislation, geographic mix of earnings, completion of tax audits or earnings repatriation plans could have an impact on those estimates and our effective tax rate. | ||||
Restructuring | ||||
Restructuring charges that we record consist of employee-related severance charges, contract termination costs and the disposal of related fixed assets. Restructuring charges represent our best estimate of the associated liability at the date the charges are recognized. Adjustments for changes in assumptions are recorded as a component of operating expenses in the period they become known. Differences between actual and expected charges and changes in assumptions could have a material effect on our restructuring accrual as well as our consolidated results of operations. See Note 7, “Severance and Other Restructuring Costs,” for more information on the current restructuring plan. | ||||
Foreign Currency Translation | ||||
For subsidiaries where the U.S. dollar is designated as the functional currency of the entity, we translate that entity’s monetary assets and liabilities denominated in local currencies into U.S. dollars (the functional and reporting currency) at current exchange rates, as of each balance sheet date. Non-monetary assets (e.g., inventories, property, plant, and equipment and intangible assets) and related income statement accounts (e.g., cost of sales, depreciation, amortization of intangible assets) are translated at historical exchange rates between the functional currency (the U.S. dollar) and the local currency. Revenue and other expense items are translated using average exchange rates during the fiscal period. Translation adjustments resulting from translation of the subsidiaries’ accounts are included in accumulated other comprehensive loss, a separate component of stockholders’ equity. Gains and losses on foreign currency transactions, and any unrealized gains and losses on short-term inter-company transactions are included in other expense, net. | ||||
For subsidiaries where the local currency is designated as the functional currency, we translate our assets and liabilities into U.S. dollars (the reporting currency) at current exchange rates as of each balance sheet date. Revenue and expense items are translated using average exchange rates during the period. Cumulative translation adjustments are presented as a separate component of stockholders’ equity. Exchange gains and losses on foreign currency transactions and unrealized gains and losses on short-term inter-company transactions are included in other expense, net. | ||||
The aggregate foreign exchange transaction losses included in other expenses, net, on the consolidated statements of operations and comprehensive loss, were $2.3 million, $0.4 million and approximately $23,000 for fiscal 2015, 2014 and 2013, respectively. | ||||
Comprehensive Loss | ||||
We present accumulated other comprehensive loss in our consolidated balance sheets and comprehensive loss in the consolidated statement of operations and comprehensive loss. At the end of fiscal 2015, 2014 and 2013, our comprehensive loss of $31.1 million, $3.3 million and $11.2 million consists primarily of net loss, cumulative translation adjustments and unrealized gains and losses on marketable securities. | ||||
Revenue Recognition | ||||
Our transactions frequently involve the sales of hardware, software, systems and services in multiple-element arrangements. Revenues from sales of hardware, software and systems that do not require significant modification or customization of the underlying software are recognized when: | ||||
• | persuasive evidence of an arrangement exists; | |||
• | delivery has occurred, and title and risk of loss have passed to the customer; | |||
• | fees are fixed or determinable; and | |||
• | collection of the related receivable is considered probable. | |||
Customers are billed for installation, training, project management and at least one year of product maintenance and technical support at the time of the product sale. Revenue from these activities is deferred at the time of the product sale and recognized ratably over the period these services are performed. Revenue from ongoing product maintenance and technical support agreements is recognized ratably over the period of the related agreements. Revenue from software development contracts that include significant modification or customization, including software product enhancements, is recognized based on the percentage of completion contract accounting method using labor efforts expended in relation to estimates of total labor efforts to complete the contract. Accounting for contract amendments and customer change orders are included in contract accounting when executed. Revenue from shipping and handling costs and other out-of-pocket expenses reimbursed by customers are included in revenues and cost of revenues. Our share of intercompany profits associated with sales and services provided to affiliated companies are eliminated in consolidation in proportion to our equity ownership. | ||||
Revenue from the sale of software-only products remains within the scope of the software revenue recognition rules. Maintenance and support, training, consulting, and installation services no longer fall within the scope of the software revenue recognition rules, except when they are sold with and relate to a software-only product. Revenue recognition for products that no longer fall under the scope of the software revenue recognition rules is similar to that for other tangible products and ASU 2009-13, “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements,” amended ASC 605 and is applicable for multiple-deliverable revenue arrangements. ASU 2009-13 allows companies to allocate revenue in a multiple-deliverable arrangement in a manner that better reflects the transaction’s economics. | ||||
Under the software revenue recognition rules, the fee is allocated to the various elements based on vendor-specific objective evidence (“VSOE”) of fair value. Under this method, the total arrangement value is allocated first to undelivered elements based on their fair values, with the remainder being allocated to the delivered elements. Where fair value of undelivered service elements has not been established, the total arrangement value is recognized over the period during which the services are performed. The amounts allocated to undelivered elements, which may include project management, training, installation, maintenance and technical support and certain hardware and software components, are based upon the price charged when these elements are sold separately and unaccompanied by the other elements. The amount allocated to installation, training and project management revenue is based upon standard hourly billing rates and the estimated time necessary to complete the service. These services are not essential to the functionality of systems as these services do not alter the equipment’s capabilities, are available from other vendors and the systems are standard products. For multiple-element arrangements that include software development with significant modification or customization and systems sales where VSOE of the fair value does not exist for the undelivered elements of the arrangement (other than maintenance and technical support), percentage of completion accounting is applied for revenue recognition purposes to the entire arrangement with the exception of maintenance and technical support. | ||||
Under the revenue recognition rules for tangible products as amended by ASU 2009-13, the fee from a multiple-deliverable arrangement is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon VSOE if available, third-party evidence (“TPE”) if VSOE is not available, and best estimate of selling price (“BESP”) if neither VSOE nor TPE are available. TPE is the price of the Company’s, or any competitor’s, largely interchangeable products or services in stand-alone sales to similarly situated customers. BESP is the price at which we would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors. | ||||
The selling prices used in the relative selling price allocation method for certain of our services are based upon VSOE. The selling prices used in the relative selling price allocation method for third-party products from other vendors are based upon TPE. The selling prices used in the relative selling price allocation method for our hardware products, software, subscriptions, and customized services for which VSOE does not exist are based upon BESP. We do not believe TPE exists for these products and services because they are differentiated from competing products and services in terms of functionality and performance and there are no competing products or services that are largely interchangeable. Management establishes BESP with consideration for market conditions, such as the impact of competition and geographic considerations, and entity-specific factors, such as the cost of the product, discounts provided and profit objectives. Management believes that BESP is reflective of reasonable pricing of that deliverable as if priced on a stand-alone basis. | ||||
For our cloud and managed service revenues, we generate revenue from two sources: (1) subscription and support services; and (2) professional services and other. Subscription and support revenue includes subscription fees from customers accessing our cloud-based software platform and support fees. Our arrangements with customers do not provide the customer with the right to take possession of the software supporting the cloud-based software platform at any time. Professional services and other revenue include fees from implementation and customization to support customer requirements. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. For the most part, subscription and support agreements are entered into for 12 to 36 months. Generally, a majority of the professional services component of the arrangements with customers is performed within a year of entering into a contract with the customer. | ||||
In most instances, revenue from a new customer acquisition is generated under sales agreements with multiple elements, comprised of subscription and support and other professional services. We evaluate each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within our control. | ||||
In determining when to recognize revenue from a customer arrangement, we are often required to exercise judgment regarding the application of our accounting policies to a particular arrangement. The primary judgments used in evaluating revenue recognized in each period involve: determining whether collection is probable, assessing whether the fee is fixed or determinable, and determining the fair value of the maintenance and service elements included in multiple-element software arrangements. Such judgments can materially impact the amount of revenue that we record in a given period. While we follow specific and detailed rules and guidelines related to revenue recognition, we make and use significant management judgments and estimates in connection with the revenue recognized in any reporting period, particularly in the areas described above. If management made different estimates or judgments, material differences in the timing of the recognition of revenue could occur. | ||||
Stock-based Compensation | ||||
We account for all employee and non-employee director stock-based compensation awards using the authoritative guidance regarding stock-based payments. We have continued to use the Black-Scholes pricing model as the most appropriate method for determining the estimated fair value of all applicable awards. We also use the Monte Carlo pricing model for our market-based option awards. Determining the appropriate fair value model and calculating the fair value of stock-based payment awards requires the input of highly subjective assumptions, including the expected life of the stock-based payment awards and stock price volatility. Management estimates the volatility based on the historical volatility of our stock. The assumptions used in calculating the fair value of stock-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management’s judgment. As a result, if circumstances change and we use different assumptions, our stock-based compensation expense could be materially different in the future. In addition, we are required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. If our actual forfeiture rate is materially different from our estimate, the stock-based compensation expense could be significantly different from what it has recorded in the current period. The estimated fair value of our stock-based options and performance-based restricted stock units (“RSUs”), less expected forfeitures, is amortized over the awards’ vesting period on a graded vesting basis, whereas the RSUs and employee stock purchase plan stock units are amortized on a straight-line basis. | ||||
Advertising Costs | ||||
Advertising costs are charged to expense as incurred. Advertising costs were $0.1 million, $0.1 million and $0.2 million for fiscal 2015, 2014 and 2013, respectively. | ||||
Earnings Per Share | ||||
Earnings per share are presented in accordance with authoritative guidance which requires the presentation of “basic” earnings per share and “diluted” earnings per share. Basic earnings per share is computed by dividing earnings available to common shareholders by the weighted-average shares of common stock outstanding during the period. For the purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding during the period and the weighted average number of potential shares of common stock, such as stock options and restricted stock, calculated using the treasury stock method. For the purpose of calculating diluted loss per share, we do not include these shares in the denominator because these shares would have an anti-dilutive effect on periods in which we incur a net loss. Certain shares of our common stock have exercise prices in excess of the average market price. These shares are anti-dilutive and are omitted from the calculation of earnings per share. For more information on this see Note 14., “Net Loss Per Share,” below. | ||||
Recent Accounting Pronouncements | ||||
We consider the applicability and impact of all Accounting Standards Updates. Updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. | ||||
Recent Accounting Guidance Not Yet Effective | ||||
Amendments to the Consolidation Analysis | ||||
In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis.” ASU 2015-02 is intended to improve guidance for limited partnerships, limited liability corporations and securitization structures. The guidance places more emphasis on risk of loss when determining a controlling financial interest, reduces the frequency of the application of related-party guidance when determining a controlling financial interest in a VIE and changes consolidation conclusions for public and private companies that typically make use of limited partnerships or VIEs. This guidance is effective for us beginning in fiscal 2017. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2015-02 on our consolidated financial statements. | ||||
Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Item | ||||
In January 2015, the FASB issued ASU 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Item.” ASU 2015-01 is meant to reduce complexity in accounting standards by eliminating the concept of extraordinary items from U.S. GAAP. In the event of a transaction that meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax after income from continuing operations. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Besides presentation on the consolidated statements of operations and comprehensive (loss) income when an item that meets the extraordinary criteria exists, we do not feel that adoption of ASU 2015-01 will have a material impact on our consolidated financial statements. | ||||
Accounting For Share-Based Payments—Performance Target Could Be Achieved after the Requisite Service Period | ||||
In June 2014, the FASB issued ASU 2014-12, “Compensation—Stock Compensation (Topic 718)—Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target which affects vesting and that could be achieved after the requisite service period be treated as a performance condition by applying existing guidance in Topic 718 as it relates to awards with performance conditions. The amendment also specifies the period over which compensation costs should be recognized. The amendment is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2014-12 on our consolidated financial statements. | ||||
Revenue from Contracts with Customers | ||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and the International Financial Reporting Standards. This guidance supersedes previously issued guidance on revenue recognition and gives a five step process an entity should follow so that the entity recognizes revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance will be effective for our fiscal 2018 reporting period and must be applied either retrospectively during each prior reporting period presented or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of the initial application. Early adoption is not permitted. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. | ||||
Reporting Discontinued Operations and Disposals of Components of an Entity | ||||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360)—Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changes the criteria for reporting discontinued operations while enhancing disclosures in this area. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. This guidance also expands the disclosures required when an entity reports a discontinued operation or when it disposes of or classifies as held for sale an individually significant component that does not meet the definition of a discontinued operation. This new guidance will be effective prospectively on disposals (or classifications of held for sale) of components of an entity that occur within our fiscal year beginning on February 1, 2015. Early adoption is permitted but only for disposals (or classification as held for sale) that have not been reported in financial statements previously issued or available for issuance. We do not anticipate material impacts on our financial statements upon initial adoption. This guidance could have a material impact on our disclosure requirements if we dispose of, or classify as held for sale, an individually significant component of our business that does not meet the definition of a discontinued operation. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||
Discontinued Operations | 3. Discontinued Operations | ||||||||||||||||||||||||
On May 4, 2012, we completed the sale of our broadcast servers and storage business and received a cash payment, net of certain adjustments, of $4.9 million and recorded a total gain in this transaction, net of tax in the amount of $1.5 million. The financial results from this divested business are included in discontinued operations in our consolidated statements of operations and comprehensive loss. | |||||||||||||||||||||||||
On May 21, 2012, we completed the sale of our media services business, ODG, to Avail Media, Inc. (“Avail”) for a purchase price of approximately $27 million plus certain working capital adjustments. We recorded a $15.5 million loss in our consolidated statements of operations and comprehensive loss from the sale of ODG, primarily arising from a related $17.0 million goodwill impairment charge that we recorded in the first quarter of fiscal 2013. The financial results from our former media services segment are included as discontinued operations in our consolidated statements of operations and comprehensive loss. | |||||||||||||||||||||||||
The following table details selected financial information for our former broadcast servers and storage and media services business units for the periods presented (amounts in thousands): | |||||||||||||||||||||||||
For the Fiscal Year Ended | For the Fiscal Year Ended | ||||||||||||||||||||||||
January 31, 2014 | January 31, 2013 | ||||||||||||||||||||||||
Servers | Media | Total | Servers | Media | Total | ||||||||||||||||||||
and | Services | Discontinued | and | Services | Discontinued | ||||||||||||||||||||
Storage | Operations | Storage | Operations | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Products | $ | 46 | $ | — | $ | 46 | $ | 1,031 | $ | — | $ | 1,031 | |||||||||||||
Services | — | — | — | 835 | 9,315 | 10,150 | |||||||||||||||||||
Total revenues | $ | 46 | $ | — | $ | 46 | $ | 1,866 | $ | 9,315 | $ | 11,181 | |||||||||||||
Income (loss) from discontinued operations: | |||||||||||||||||||||||||
Loss from discontinued operations, before tax | $ | (803 | ) | $ | — | $ | (803 | ) | $ | (1,854 | ) | $ | (194 | ) | $ | (2,048 | ) | ||||||||
Income tax provision (benefit) | — | — | — | 84 | (13 | ) | 71 | ||||||||||||||||||
Income in investment in affiliates | — | — | — | — | (174 | ) | (174 | ) | |||||||||||||||||
Loss from discontinued operations, after tax | $ | (803 | ) | $ | — | $ | (803 | ) | $ | (1,938 | ) | $ | (355 | ) | $ | (2,293 | ) | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 4. Fair Value Measurements | ||||||||||||||||
Fair Value Measurements of Assets and Liabilities | |||||||||||||||||
The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of January 31, 2015 and January 31, 2014: | |||||||||||||||||
Fair Value at January 31, 2015 Using | |||||||||||||||||
January 31, | Quoted Prices | Significant | Significant | ||||||||||||||
2015 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market accounts (a) | $ | 1,575 | $ | 1,575 | $ | — | $ | — | |||||||||
Available for sale marketable securities: | |||||||||||||||||
Current marketable securities: | |||||||||||||||||
U.S. treasury notes and bonds—conventional | 1,501 | 1,501 | — | — | |||||||||||||
U.S. government agency issues | 6,015 | — | 6,015 | — | |||||||||||||
Non-current marketable securities: | |||||||||||||||||
U.S. treasury notes and bonds—conventional | 4,286 | 4,286 | |||||||||||||||
U.S. government agency issues | 2,507 | — | 2,507 | — | |||||||||||||
Total | $ | 15,884 | $ | 7,362 | $ | 8,522 | $ | — | |||||||||
Fair Value at January 31, 2014 Using | |||||||||||||||||
January 31, | Quoted Prices | Significant | Significant | ||||||||||||||
2014 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market accounts (a) | $ | 3,463 | $ | 3,463 | $ | — | $ | — | |||||||||
Available for sale marketable securities: | |||||||||||||||||
Current marketable securities: | |||||||||||||||||
U.S. treasury notes and bonds—conventional | 3,545 | 3,545 | — | — | |||||||||||||
U.S. government agency issues | 2,010 | — | 2,010 | — | |||||||||||||
Non-current marketable securities: | |||||||||||||||||
U.S. government agency issues | 6,814 | — | 6,814 | — | |||||||||||||
Total | $ | 15,832 | $ | 7,008 | $ | 8,824 | $ | — | |||||||||
a) | Money market funds and U.S. treasury bills are included in cash and cash equivalents on the accompanying consolidated balance sheet and are valued at quoted market prices for identical instruments in active markets. | ||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||
We determine the appropriate classification of debt securities at the time of purchase and reevaluate such designation as of each balance sheet date. Our investment portfolio consists of money market funds, U.S. treasury notes and bonds, and U.S. government agency notes and bonds as of January 31, 2015 and 2014. All highly liquid investments with an original maturity of three months or less when purchased are considered to be cash equivalents. All cash equivalents are carried at cost, which approximates fair value. Our marketable securities are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of tax, reported in stockholders’ equity as a component of accumulated other comprehensive loss. The amortization of premiums and accretion of discounts to maturity are computed under the effective interest method and is included in other expenses, net. Interest on securities is recorded as earned and is also included in other expenses, net. Any realized gains or losses would be shown in the accompanying consolidated statements of operations and comprehensive loss in other expenses, net. | |||||||||||||||||
The following is a summary of cash, cash equivalents and available-for-sale securities, including the cost basis, aggregate fair value and unrealized gains and losses, for short-and long-term marketable securities portfolio as of January 31, 2015 and 2014: | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
January 31, 2015: | |||||||||||||||||
Cash | $ | 88,444 | $ | — | $ | — | $ | 88,444 | |||||||||
Cash equivalents | 1,575 | — | — | 1,575 | |||||||||||||
Cash and cash equivalents | 90,019 | — | — | 90,019 | |||||||||||||
U.S. treasury notes and bonds—short-term | 1,500 | 1 | 1,501 | ||||||||||||||
U.S. treasury notes and bonds—long-term | 4,268 | 18 | — | 4,286 | |||||||||||||
U.S, government agency issues—short-term | 6,008 | 7 | — | 6,015 | |||||||||||||
U.S, government agency issues—long-term | 2,490 | 17 | 2,507 | ||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 104,285 | $ | 43 | $ | — | $ | 104,328 | |||||||||
January 31, 2014: | |||||||||||||||||
Cash | $ | 112,271 | $ | — | $ | — | $ | 112,271 | |||||||||
Cash equivalents | 3,463 | — | — | 3,463 | |||||||||||||
Cash and cash equivalents | 115,734 | — | — | 115,734 | |||||||||||||
U.S. treasury notes and bonds—short-term | 3,540 | 5 | 3,545 | ||||||||||||||
U.S. government agency issues—short-term | 2,005 | 5 | 2,010 | ||||||||||||||
U.S. government agency issues—long-term | 6,806 | 8 | — | 6,814 | |||||||||||||
Total cash, cash equivalents and marketable securities | $ | 128,085 | $ | 18 | $ | — | $ | 128,103 | |||||||||
The gross realized gains and losses on sale of available-for-sale securities for fiscal years 2015, 2014 and 2013 were immaterial. For purposes of determining gross realized gains and losses, the cost of securities sold is based on specific identification. | |||||||||||||||||
Contractual maturities of available-for-sale debt securities at January 31, 2015 are as follows (amounts in thousands): | |||||||||||||||||
Estimated | |||||||||||||||||
Fair Value | |||||||||||||||||
Maturity of one year or less | $ | 7,516 | |||||||||||||||
Maturity between one and five years | 6,793 | ||||||||||||||||
Total | $ | 14,309 | |||||||||||||||
We concluded that there were no other than temporary declines in investments recorded as of January 31, 2015, 2014 and 2013. The unrealized holding gains (losses), net of tax, on available-for-sale securities, which are not material for the periods presented, have been included in stockholders’ equity as a component of accumulated other comprehensive loss. | |||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | |||||||||||||||||
Cash and cash equivalents consist primarily of highly liquid investments in money market mutual funds, government sponsored enterprise obligations, treasury bills, commercial paper and other money market securities with remaining maturities at date of purchase of 90 days or less. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
In December 2014, in conjunction with our acquisition of TLL, LLC (“Timeline Labs”), we entered into an agreement to fund a $2.5 million escrow from which Timeline Labs could make withdrawals for working capital purposes. The withdrawn portion of the escrow is accounted for as an advance against the purchase price and is recorded in other assets on our consolidated balance sheets. The unused portion, being $1.1 million remaining in escrow after signing the related merger agreement but prior to the consummation of the acquisition on February 2, 2015, is classified as restricted cash on our consolidated balance sheets. See Note 16., “Subsequent Events,” for additional information. | |||||||||||||||||
The fair value of cash, cash equivalents, restricted cash and marketable securities at January 31, 2015 and 2014 was $105.4 million and $128.1 million, respectively. |
Consolidated_Balance_Sheet_Det
Consolidated Balance Sheet Detail | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Consolidated Balance Sheet Detail | 5. Consolidated Balance Sheet Detail | ||||||||||||
Inventories consist primarily of hardware and related component parts and are stated at the lower of cost (on a first-in, first-out basis) or market. Inventories consist of the following: | |||||||||||||
January 31, | |||||||||||||
2015 | 2014 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Components and assemblies | $ | 1,487 | $ | 2,201 | |||||||||
Finished products | 1,377 | 4,431 | |||||||||||
Total inventories | $ | 2,864 | $ | 6,632 | |||||||||
Property and equipment, net consists of the following: | |||||||||||||
Estimated | January 31, | ||||||||||||
Useful | |||||||||||||
Life (Years) | 2015 | 2014 | |||||||||||
(Amounts in thousands) | |||||||||||||
Land | $ | 2,880 | $ | 2,880 | |||||||||
Buildings | 20 | 12,146 | 12,081 | ||||||||||
Office furniture and equipment | 5 | 1,023 | 998 | ||||||||||
Computer equipment, software and demonstration equipment | 3 | 17,584 | 17,466 | ||||||||||
Service and spare components | 5 | 1,158 | 1,158 | ||||||||||
Leasehold improvements | 7-Jan | 1,089 | 1,145 | ||||||||||
35,880 | 35,728 | ||||||||||||
Less—Accumulated depreciation and amortization | (20,011 | ) | (17,198 | ) | |||||||||
Total property and equipment, net | $ | 15,869 | $ | 18,530 | |||||||||
Depreciation and amortization expense of fixed assets was $3.7 million, $4.4 million and $4.7 million for the years ended January 31, 2015, 2014 and 2013, respectively. | |||||||||||||
Other accrued expenses consist of the following: | |||||||||||||
January 31, | |||||||||||||
2015 | 2014 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Accrued compensation and commissions | $ | 1,518 | $ | 2,290 | |||||||||
Accrued bonuses | 2,186 | 2,095 | |||||||||||
Accrued severance | 2,021 | 229 | |||||||||||
Employee benefits | 1,959 | 2,113 | |||||||||||
Accrued other | 4,823 | 5,605 | |||||||||||
Total other accrued expenses | $ | 12,507 | $ | 12,332 | |||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets | ||||||||||||||||||||||||||||
At January 31, 2015 and 2014, we had goodwill of $41.0 million and $45.2 million, respectively. The change in the carrying amount of goodwill for the years ended January 31, 2015 and 2014 are as follows (amounts in thousands): | |||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
Balance at January 31, 2013 | $ | 45,103 | |||||||||||||||||||||||||||
Cumulative translation adjustment | 47 | ||||||||||||||||||||||||||||
Balance at January 31, 2014 | 45,150 | ||||||||||||||||||||||||||||
Cumulative translation adjustment | (4,142 | ) | |||||||||||||||||||||||||||
Balance at January 31, 2015 | $ | 41,008 | |||||||||||||||||||||||||||
We are required to perform impairment tests related to our goodwill annually, which we perform during the third quarter of each fiscal year, or when an indicator of impairment occurs. There was no impairment of goodwill determined as a result of the annual impairment test completed during the third quarter of fiscal 2015. While no impairment charges resulted from our annual test, impairment charges may occur in the future as a result of changes in projected growth and other factors. | |||||||||||||||||||||||||||||
Intangible assets, net, consisted of the following at January 31, 2015 and 2014: | |||||||||||||||||||||||||||||
January 31, 2015 | January 31, 2014 | ||||||||||||||||||||||||||||
Weighted average | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||
remaining life | Amortization | Amortization | |||||||||||||||||||||||||||
(Years) | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||
Customer contracts | 6 | $ | 30,397 | $ | (24,160 | ) | $ | 6,237 | $ | 32,593 | $ | (22,344 | ) | $ | 10,249 | ||||||||||||||
Non-compete agreements | — | 2,433 | (2,433 | ) | — | 2,772 | (2,632 | ) | 140 | ||||||||||||||||||||
Completed technology | 5.2 | 10,307 | (9,230 | ) | 1,077 | 11,461 | (9,195 | ) | 2,266 | ||||||||||||||||||||
Trademarks, patents and other | — | 7,082 | (7,082 | ) | — | 7,151 | (7,151 | ) | — | ||||||||||||||||||||
Total finite-lived intangible assets | $ | 50,219 | $ | (42,905 | ) | $ | 7,314 | $ | 53,977 | $ | (41,322 | ) | $ | 12,655 | |||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||
Trade names | — | — | — | — | 200 | — | 200 | ||||||||||||||||||||||
Total intangible assets | $ | 50,219 | $ | (42,905 | ) | $ | 7,314 | $ | 54,177 | $ | (41,322 | ) | $ | 12,855 | |||||||||||||||
Amortization expense for intangible assets was $5.2 million, $4.6 million and $6.4 million for fiscal 2015, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
The total amortization expense for each of the next five fiscal years is as follows (amounts in thousands): | |||||||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | Estimated | ||||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||||||
2016 | $ | 3,076 | |||||||||||||||||||||||||||
2017 | 2,195 | ||||||||||||||||||||||||||||
2018 | 1,272 | ||||||||||||||||||||||||||||
2019 | 649 | ||||||||||||||||||||||||||||
2020 | 121 | ||||||||||||||||||||||||||||
Fiscal 2021 and thereafter | 1 | ||||||||||||||||||||||||||||
Total Future Amortization | $ | 7,314 | |||||||||||||||||||||||||||
Actual amortization may differ from estimated amounts in the table above due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions, potential impairment, accelerated amortization, or other events. During fiscal 2015, we fully amortized our trade name intangible assets as they are no longer in use. |
Severance_and_Other_Restructur
Severance and Other Restructuring Costs | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Restructuring and Related Activities [Abstract] | |||||
Severance and Other Restructuring Costs | 7. Severance and Other Restructuring Costs | ||||
During fiscal 2015, we incurred restructuring charges totaling $3.6 million. These charges included $3.4 million of severance costs for terminated employees. In addition, we incurred $0.2 million of other restructuring charges primarily due to the write off of leasehold improvements. | |||||
As announced in February 2015, we initiated a global restructuring plan to streamline our operations. The reduction in our domestic work force was implemented in January 2015 and estimated charges were recorded. We will implement an international reduction in workforce in fiscal 2016 and expect to incur future restructuring charges. | |||||
The following table shows the change in balances of our accrued severance reported as a component of other accrued expenses on the consolidated balance sheets (amounts in thousands): | |||||
Accrual balance as of January 31, 2014 | $ | 229 | |||
Restructuring charges incurred | 3,623 | ||||
Severance costs paid | (1,605 | ) | |||
Other charges | (226 | ) | |||
Accrual balance as of January 31, 2015 | $ | 2,021 | |||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 8. Commitments and Contingencies | ||||
Indemnification and Warranties | |||||
We provide indemnification, to the extent permitted by law, to our officers, directors, employees and agents for liabilities arising from certain events or occurrences while the officer, director, employee or agent is, or was, serving at our request in such capacity. With respect to acquisitions, we provide indemnification to, or assume indemnification obligations for, the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies’ bylaws and charters. As a matter of practice, we have maintained directors’ and officers’ liability insurance including coverage for directors and officers of acquired companies. | |||||
We enter into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require us to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to our products. From time to time, we also indemnify customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, and environmental claims relating to the use of our products and services or resulting from the acts or omissions of us, our employees, authorized agents or subcontractors. From time to time, we have received requests from customers for indemnification of patent litigation claims. Management cannot reasonably estimate any potential losses, but these claims could result in material liability for us. We are not party to current pending legal proceedings that, in the opinion of management, would have a material adverse effect on our financial position, results from operations and cash flows. There is no assurance that future legal proceedings arising from ordinary course of business or otherwise, will not have a material adverse effect on our financial position, results from operations or cash flows. | |||||
We warrant that our products, including software products, will substantially perform in accordance with our standard published specifications in effect at the time of delivery. In addition, we provide maintenance support to our customers and therefore allocate a portion of the product purchase price to the initial warranty period and recognize revenue on a straight line basis over that warranty period related to both the warranty obligation and the maintenance support agreement. When we receive revenue for extended warranties beyond the standard duration, it is deferred and recognized on a straight line basis over the contract period. Related costs are expensed as incurred. | |||||
Revolving Line of Credit/Demand Note Payable | |||||
We renewed our letter agreement for a demand discretionary line of credit and a Demand Promissory Note in the aggregate amount of $20.0 million, effective November 26, 2014. Borrowings under the line of credit will be used to finance working capital needs and for general corporate purposes. We currently do not have any borrowings nor do we have any financial covenants under this line. | |||||
Operating Leases | |||||
We lease certain of our operating facilities, automobiles and office equipment under non-cancelable operating leases, which expire at various dates through 2019. Leases for our facilities typically contain standard commercial lease provisions, including renewal options and rent escalation clauses. Rental expense under operating leases was $2.9 million, $2.4 million and $2.7 million for fiscal 2015, 2014 and 2013, respectively. Future commitments under minimum lease payments as of January 31, 2015 are as follows (amounts in thousands): | |||||
For the Fiscal Years Ended January 31, | Operating | ||||
Leases | |||||
2016 | $ | 2,261 | |||
2017 | 1,680 | ||||
2018 | 477 | ||||
2019 | 30 | ||||
2020 | — | ||||
2021 and thereafter | — | ||||
Minimum operating lease payments | $ | 4,448 | |||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Stockholders' Equity | 9. Stockholders’ Equity | ||||||||||||||||||||||||
Stock Authorization | |||||||||||||||||||||||||
The Board of Directors is authorized to issue from time to time up to an aggregate of 5,000,000 shares of preferred stock, in one or more series. Each such series of preferred stock shall have the number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges to be determined by the Board of Directors, including dividend rights, voting rights, redemption rights and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. No preferred stock has been issued as of January 31, 2015. | |||||||||||||||||||||||||
Stock Repurchase Program | |||||||||||||||||||||||||
On September 4, 2013, our Board of Directors authorized the repurchase of up to $25.0 million of our common stock through a share repurchase program which would have terminated on January 31, 2015. On May 31, 2014, this program was amended to increase the authorized repurchase amount to $40.0 million and extend the termination date to April 30, 2015. Under the program, we are authorized to repurchase shares through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. This share repurchase program does not obligate us to acquire any specific number of shares and may be suspended or discontinued at any time. All repurchases are expected to be funded from our current cash and investment balances. The timing and amount of shares to be repurchased will be based on market conditions and other factors, including price, corporate and regulatory requirements, and alternative investment opportunities. Any shares repurchased by us under the share repurchase program will reduce the number of shares outstanding. Pursuant to the share repurchase program, we executed a Rule 10b5-1 plan in June 2014 to repurchase shares. During fiscal 2015, we used $5.5 million of cash in connection with the repurchase of 591,520 shares of our common stock (an average price of $9.31 per share). As of January 31, 2015, $34.5 million remained available to repurchase under the existing share repurchase authorization. | |||||||||||||||||||||||||
Stock Option Plans | |||||||||||||||||||||||||
2011 Compensation and Incentive Plan. | |||||||||||||||||||||||||
In July 2011, our stockholders approved the adoption of our 2011 Compensation and Incentive Plan (the “2011 Plan”). Under the 2011 Plan, as amended in July 2013, the number of authorized shares of common stock is equal to 5,300,000 shares plus the number of shares that would have become available for issuance under our prior Amended and Restated 2005 Equity Compensation and Incentive Plan following the adoption of the 2011 Plan due to the expiration, termination, surrender or forfeiture of an award under the prior plan. The 2011 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock, RSUs, deferred stock units (“DSUs”) and other equity based non-stock option awards as determined by the plan administrator, to officers, employees, consultants, and directors of the Company. | |||||||||||||||||||||||||
Effective February 1, 2014, SeaChange gave its non-employee members of the Board of Directors the option to receive DSUs in lieu of RSUs beginning with the annual grant for fiscal 2015. These DSUs shall fully vest one year from the grant date. The number of units subject to the DSUs is determined as of the first day of the applicable fiscal year and the shares underlying the DSUs are not vested and issued until the earlier of the director ceasing to be a member of the Board of Directors (provided such time is subsequent to the first day of the succeeding fiscal year) or immediately prior to a change in control. | |||||||||||||||||||||||||
We may satisfy awards upon the exercise of stock options or vesting of RSUs with newly issued shares or treasury shares. The Board of Directors is responsible for the administration of the 2011 Plan and determining the terms of each award, award exercise price, the number of shares for which each award is granted and the rate at which each award vests. In certain instances the Board of Directors may elect to modify the terms of an award. As of January 31, 2015, there were 2,484,004 shares available for future grant under the 2011 Plan. | |||||||||||||||||||||||||
Option awards may be granted to employees at an exercise price per share of not less than 100% of the fair market value per common share on the date of the grant. RSUs, DSUs and other equity-based non-stock option awards may be granted to any officer, employee, director, or consultant at a purchase price per share as determined by the Board of Directors. Option awards granted under the 2011 Plan generally vest over a period of three years and expire ten years from the date of the grant. | |||||||||||||||||||||||||
Stock-based Compensation | |||||||||||||||||||||||||
We use the provisions of the authoritative guidance which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options, RSUs and DSUs based on estimated fair values. The fair value of our stock-based options and performance-based RSUs, less expected forfeitures, is amortized over the awards’ vesting period on a graded vesting basis, whereas the RSUs are amortized on a straight-line basis. We have applied the provisions of authoritative guidance allowing the use of a “simplified” method, in developing an estimate of the expected term of “plain vanilla” share options. | |||||||||||||||||||||||||
Stock-based compensation includes expense charges for all stock-based awards to employees and directors. Such awards include option grants, RSU and DSU awards. The estimated fair value of our stock-based options and performance-based RSUs, less expected forfeitures, is amortized over the awards’ vesting period on a graded vesting basis, whereas the RSUs and DSUs are amortized on a straight-line basis. | |||||||||||||||||||||||||
The effect of recording stock-based compensation was as follows: | |||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||
Stock-based compensation expense by type of award: | |||||||||||||||||||||||||
Stock options | $ | 1,036 | $ | 453 | $ | 3,586 | |||||||||||||||||||
Restricted stock units | 1,607 | 1,907 | 2,218 | ||||||||||||||||||||||
Deferred stock units | 500 | — | — | ||||||||||||||||||||||
Performance-based restricted stock units | 77 | 599 | 125 | ||||||||||||||||||||||
Total stock-based compensation | $ | 3,220 | $ | 2,959 | $ | 5,929 | |||||||||||||||||||
Since additional option grants and RSU awards are expected to be made each year and options and awards vest over several years, the effects of applying authoritative guidance for recording stock-based compensation for the year ended January 31, 2015 are not indicative of future amounts. | |||||||||||||||||||||||||
Determining Fair Value | |||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
We record the fair value of most stock options using the Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options include the exercise price, the expected option term, the risk-free interest rate over the option’s expected term, the expected annual dividend yield and the expected stock price volatility. The expected option term was determined using the “simplified” method for “plain vanilla” options. The expected stock price volatility was established using a blended volatility, which is an average of the historical volatility of our common stock over a period of time equal to the expected term of the stock option, and the average volatility of our common stock over the most recent one-year and two-year periods. The risk-free interest rate is based upon the U.S. treasury bond yield at the grant date, using a remaining term equal to the expected life. The expected dividend yield is 0%, as we have not paid cash dividends on our common stock since our inception. | |||||||||||||||||||||||||
The fair value of stock options granted was estimated at the date of grant using the following assumptions: | |||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Expected term (in years) | 6.5 | 7-May | 7-Mar | ||||||||||||||||||||||
Expected volatility (range) | 46% | 44-46% | 49-52% | ||||||||||||||||||||||
Weighted average volatility | 46% | 45% | 52% | ||||||||||||||||||||||
Risk-free interest rate | 1.70% | 0.7-0.9% | 0.7-1.2% | ||||||||||||||||||||||
Weighted average interest rate | 1.70% | 0.80% | 1.20% | ||||||||||||||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||||||||||||||
Market-Based Options | |||||||||||||||||||||||||
When market-based vesting is used on stock options (“Market Condition Options”) we use the Monte Carlo simulation model. The model simulates daily trading prices of the Market Condition Options’ expected term to determine if vesting conditions would be triggered during that term. | |||||||||||||||||||||||||
We appointed a new CEO on October 20, 2014, at which time he was granted 500,000 stock options to purchase the Company’s common stock. These stock options have an exercise price equal to our closing stock price on October 20, 2014, and will vest in approximately equal increments based upon the closing price of our common stock, but in no case earlier than six months from the date of grant. We recorded the fair value of these stock options using the Monte Carlo simulation model, since the stock option vesting is variable depending on the closing price of our traded common stock. Key input assumptions used to estimate the fair value of the Market Condition Options include exercise price, volatility, risk-free rate, the required rate of return on equity, annual turnover rate and the expected term to exercise. These assumptions are included in the table above for fiscal 2015. No other options were granted during this fiscal year. The model simulated the daily trading price of the Market Condition Options’ expected term to determine if the vesting conditions would be triggered during the term. As a result, the fair value of these stock options was estimated at $1.7 million. We have incurred stock compensation expense of $0.3 million for the period from the date of grant to and including January 31, 2015. | |||||||||||||||||||||||||
The following table summarizes the stock option activity (excluding RSUs and DSUs): | |||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||
average | average | average | |||||||||||||||||||||||
exercise | exercise | exercise | |||||||||||||||||||||||
price | price | price | |||||||||||||||||||||||
Outstanding at beginning of period | 1,502,176 | $ | 9.77 | 1,917,448 | $ | 10.35 | 2,125,371 | $ | 11.83 | ||||||||||||||||
Granted | 500,000 | $ | 7.23 | 12,500 | $ | 10.1 | 892,500 | $ | 8.21 | ||||||||||||||||
Exercised | — | $ | — | (118,528 | ) | $ | 9.1 | (304,550 | ) | $ | 7.19 | ||||||||||||||
Forfeited/expired/cancelled | (375,755 | ) | $ | 15.06 | (309,244 | ) | $ | 13.78 | (795,873 | ) | $ | 13.11 | |||||||||||||
Outstanding at end of period | 1,626,421 | $ | 7.77 | 1,502,176 | $ | 9.77 | 1,917,448 | $ | 10.35 | ||||||||||||||||
Options exercisable at end of period | 1,108,115 | $ | 8.02 | 1,440,521 | $ | 9.9 | 937,444 | $ | 12.78 | ||||||||||||||||
Weighted average remaining contractual term (in years) | 4.72 | 3.93 | 1.86 | ||||||||||||||||||||||
The weighted-average fair valuation at grant date of stock options granted during the years ended January 31, 2015, 2014 and 2013, was $3.39, $1.53, and $3.78, respectively. As of January 31, 2015, the unrecognized stock-based compensation related to the unvested stock options was approximately $1.4 million, net of estimated forfeitures. Total unrecognized compensation cost will be adjusted for any future changes in estimated changes in forfeitures. This cost will be recognized over an estimated weighted average amortization period of 1.6 years. | |||||||||||||||||||||||||
Intrinsic value is defined as the difference between the market price on the date of exercise and the grant date price. The aggregate intrinsic value for options outstanding was $0.1 million, $4.5 million and $1.4 million as of January 31, 2015, 2014 and 2013, respectively. The aggregate intrinsic value of vested shares and share options expected to vest as of January 31, 2015, 2014 and 2013 was $0.1 million, $4.4 million and $1.3 million, respectively. There were no stock options exercised in fiscal 2015. The total intrinsic value of options exercised during the years ended January 31, 2014 and 2013 was $0.3 million and $0.5 million, respectively. | |||||||||||||||||||||||||
The cash received from employees as a result of employee stock option exercises during fiscal years 2014 and 2013 was $1.1 million and $2.2 million, respectively. | |||||||||||||||||||||||||
The following table summarizes information about employee and director stock options outstanding and exercisable as of January 31, 2015: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||||
outstanding | average | average | exercisable | average | |||||||||||||||||||||
remaining | exercise | exercise | |||||||||||||||||||||||
contractual | price | price | |||||||||||||||||||||||
terms | |||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||
Range of exercise prices | |||||||||||||||||||||||||
$6.74 to $6.74 | 224,421 | 3.96 | $ | 6.74 | 207,781 | $ | 6.74 | ||||||||||||||||||
$7.00 to $7.48 | 501,000 | 6.1 | $ | 7.23 | 1,000 | $ | 7 | ||||||||||||||||||
$7.49 to $7.49 | 1,000 | 0.35 | $ | 7.49 | 1,000 | $ | 7.49 | ||||||||||||||||||
$7.72 to $7.72 | 4,500 | 0.44 | $ | 7.72 | 4,500 | $ | 7.72 | ||||||||||||||||||
$8.15 to $8.15 | 5,000 | 4.42 | $ | 8.15 | 3,334 | $ | 8.15 | ||||||||||||||||||
$8.22 to $8.22 | 875,000 | 4.24 | $ | 8.22 | 875,000 | $ | 8.22 | ||||||||||||||||||
$11.56 to $11.56 | 2,000 | 0.19 | $ | 11.56 | 2,000 | $ | 11.56 | ||||||||||||||||||
$12.95 to $12.95 | 2,000 | 0.17 | $ | 12.95 | 2,000 | $ | 12.95 | ||||||||||||||||||
$13.66 to $13.66 | 6,500 | 0.09 | $ | 13.66 | 6,500 | $ | 13.66 | ||||||||||||||||||
$16.56 to $16.56 | 5,000 | 0.01 | $ | 16.56 | 5,000 | $ | 16.56 | ||||||||||||||||||
1,626,421 | 4.72 | $ | 7.77 | 1,108,115 | $ | 8.02 | |||||||||||||||||||
Restricted Stock Units and Deferred Stock Units | |||||||||||||||||||||||||
Pursuant to the 2011 Plan, we may grant RSUs and DSUs that entitle the recipient to acquire shares of our common stock. Awards of RSUs generally vest in equal increments on each of the first three anniversaries of the grant of the award. DSUs generally vest on the first anniversary of the grant. Stock-based compensation expense associated with the RSUs and DSUs is charged for the market value of our stock on the date of grant, assuming nominal forfeitures, and is amortized over the awards’ vesting period on a straight-line basis for awards with only a service condition and graded vesting basis for awards that include both a performance and service condition. | |||||||||||||||||||||||||
The following table summarizes the RSU and DSU activity: | |||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||
average | average | average | |||||||||||||||||||||||
grant date | grant date | grant date | |||||||||||||||||||||||
fair value | fair value | fair value | |||||||||||||||||||||||
Nonvested at beginning of period | 446,468 | $ | 9.81 | 552,980 | $ | 10.51 | 721,365 | $ | 10.46 | ||||||||||||||||
Awarded | 314,057 | $ | 8.6 | 146,411 | $ | 11.15 | 375,317 | $ | 8.62 | ||||||||||||||||
Vested | (287,485 | ) | $ | 9.83 | (205,928 | ) | $ | 12.61 | (348,346 | ) | $ | 8.73 | |||||||||||||
Forfeited/expired/cancelled | (37,734 | ) | $ | 10.01 | (46,995 | ) | $ | 9.93 | (195,356 | ) | $ | 9.87 | |||||||||||||
Nonvested at end of period | 435,306 | $ | 8.91 | 446,468 | $ | 9.81 | 552,980 | $ | 10.51 | ||||||||||||||||
As of January 31, 2015, the unrecognized stock-based compensation related to the unvested RSUs and DSUs was $2.2 million. This cost will be recognized over an estimated weighted average amortization period of 2.3 years. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive Loss | 10. Accumulated Other Comprehensive Loss | ||||||||||||
Accumulated other comprehensive loss consisted of the following: | |||||||||||||
Foreign | Changes in | Accumulated | |||||||||||
Currency | Fair Value of | Other | |||||||||||
Translation | Available- | Comprehensive | |||||||||||
Adjustment | for-Sale | Loss | |||||||||||
Investments | |||||||||||||
Balance at January 31, 2013 | $ | (1,856 | ) | $ | 30 | $ | (1,826 | ) | |||||
Other comprehensive loss | (294 | ) | (12 | ) | (306 | ) | |||||||
Balance at January 31, 2014 | (2,150 | ) | 18 | (2,132 | ) | ||||||||
Other comprehensive loss | (3,647 | ) | 25 | (3,622 | ) | ||||||||
Balance at January 31, 2015 | $ | (5,797 | ) | $ | 43 | $ | (5,754 | ) | |||||
Unrealized holding gains (losses) on securities available for sale are not material for the periods presented. | |||||||||||||
Comprehensive loss consists of net loss and other comprehensive loss, which includes foreign currency translation adjustments and changes in unrealized gains and losses on marketable securities. For purposes of comprehensive loss disclosures, we do not record tax expense or benefits for the net changes in the foreign currency translation adjustments, as we intend to permanently reinvest all undistributed earnings of our foreign subsidiaries. |
Segment_Information_Significan
Segment Information, Significant Customers and Geographic Information | 12 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Information, Significant Customers and Geographic Information | 11. Segment Information, Significant Customers and Geographic Information | ||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||
Our operations are organized into one reportable segment. Operating segments are defined as components of an enterprise evaluated regularly by the Company’s senior management in deciding how to allocate resources and assess performance. Our reportable segment was determined based upon the nature of the products offered to customers, the market characteristics of each operating segment and the Company’s management structure. | |||||||||||||||||||||||||
Significant Customers | |||||||||||||||||||||||||
The following table summarizes revenues by significant customers where such revenue exceeded 10% of total revenues for the indicated period: | |||||||||||||||||||||||||
For Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Customer A | 17 | % | 15 | % | 18 | % | |||||||||||||||||||
Customer B | 15 | % | 24 | % | 21 | % | |||||||||||||||||||
Customer C | N/A | 10 | % | N/A | |||||||||||||||||||||
Geographic Information | |||||||||||||||||||||||||
The following summarizes revenues by customers’ geographic locations: | |||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||||||
(Amounts in thousands, except percentages) | |||||||||||||||||||||||||
Revenues by customers’ geographic locations: | |||||||||||||||||||||||||
North America(1) | $ | 64,755 | 56 | % | $ | 77,105 | 53 | % | $ | 94,155 | 60 | % | |||||||||||||
Europe and Middle East | 39,387 | 34 | % | 53,105 | 36 | % | 49,824 | 32 | % | ||||||||||||||||
Latin America | 6,829 | 6 | % | 13,156 | 9 | % | 11,777 | 7 | % | ||||||||||||||||
Asia Pacific | 4,464 | 4 | % | 2,953 | 2 | % | 1,432 | 1 | % | ||||||||||||||||
Total revenues | $ | 115,435 | $ | 146,319 | $ | 157,188 | |||||||||||||||||||
-1 | Includes total revenues for the United States for the periods shown as follows: | ||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||
U.S. Revenue | $ | 59,819 | $ | 66,903 | $ | 85,256 | |||||||||||||||||||
% of total revenue | 51.8 | % | 45.7 | % | 54.2 | % | |||||||||||||||||||
The following summarizes long-lived assets by geographic locations: | |||||||||||||||||||||||||
January 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Amount | % | Amount | % | ||||||||||||||||||||||
(Amounts in thousands, except percentages) | |||||||||||||||||||||||||
Long-lived assets by geographic locations(1): | |||||||||||||||||||||||||
North America | $ | 21,214 | 74 | % | $ | 20,714 | 62 | % | |||||||||||||||||
Europe and Middle East | 6,028 | 22 | % | 11,097 | 33 | % | |||||||||||||||||||
Asia Pacific | 1,260 | 4 | % | 1,461 | 5 | % | |||||||||||||||||||
Total long-lived assets by geographic location | $ | 28,502 | $ | 33,272 | |||||||||||||||||||||
-1 | Excludes marketable securities, long-term and goodwill. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 12. Income Taxes | ||||||||||||
The components of loss from continuing operations before income taxes are as follows: | |||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(Amounts in thousands) | |||||||||||||
Domestic | $ | (25,920 | ) | $ | (15,049 | ) | $ | (15,680 | ) | ||||
Foreign | (2,694 | ) | 12,833 | 11,133 | |||||||||
$ | (28,614 | ) | $ | (2,216 | ) | $ | (4,547 | ) | |||||
The components of the income tax (benefit) provision from continuing operations are as follows: | |||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(Amounts in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | 11 | $ | — | |||||||
State | (762 | ) | 50 | 231 | |||||||||
Foreign | 24 | 692 | (1,305 | ) | |||||||||
Total | (738 | ) | 753 | (1,074 | ) | ||||||||
Deferred: | |||||||||||||
Federal | — | — | — | ||||||||||
State | — | — | (348 | ) | |||||||||
Foreign | (368 | ) | (698 | ) | (133 | ) | |||||||
Total | (368 | ) | (698 | ) | (481 | ) | |||||||
Income tax (benefit) provision | $ | (1,106 | ) | $ | 55 | $ | (1,555 | ) | |||||
The income tax (benefit) provision for continuing operations computed using the federal statutory income tax rate differs from our effective tax rate primarily due to the following: | |||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(Amounts in thousands) | |||||||||||||
Statutory U.S. federal tax rate | $ | (10,014 | ) | $ | (774 | ) | $ | (952 | ) | ||||
State taxes, net of federal tax benefit | (779 | ) | 33 | 81 | |||||||||
Income (losses) not benefitted | 8,913 | 92 | (1,068 | ) | |||||||||
Non-deductible stock compensation expense | — | 15 | 142 | ||||||||||
Other(1) | (74 | ) | 694 | 858 | |||||||||
Innovation box | (68 | ) | 260 | (779 | ) | ||||||||
Foreign tax rate differential | 916 | (265 | ) | 163 | |||||||||
$ | (1,106 | ) | $ | 55 | $ | (1,555 | ) | ||||||
-1 | Within the other line item in the table above, other non-deductible expenses were not material in fiscal 2015 and were $0.3 million and $1.1 million for the fiscal years ended January 31, 2014 and 2013, respectively. These expenses have been aggregated with various adjustments related to differences in prior year U.S. and foreign tax provisions and the actual returns filed. | ||||||||||||
Our effective tax rate was a (benefit)/provision of (4%) and 3% for the fiscal years ended January 31, 2015 and 2014, respectively, and an effective tax rate benefit of (34%) for the fiscal year ended January 31, 2013. | |||||||||||||
The components of deferred income taxes are as follows: | |||||||||||||
January 31, | |||||||||||||
2015 | 2014 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Accruals and reserves | $ | 1,783 | $ | 2,009 | |||||||||
Deferred revenue | 761 | 1,881 | |||||||||||
Stock-based compensation expense | 3,005 | 2,775 | |||||||||||
U.S. federal, state and foreign tax credits | 7,670 | 6,616 | |||||||||||
Loss carryforwards | 18,298 | 9,071 | |||||||||||
Deferred tax assets | 31,517 | 22,352 | |||||||||||
Less: Valuation allowance | (30,369 | ) | (20,789 | ) | |||||||||
Net deferred tax assets | 1,148 | 1,563 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | 1,267 | 2,823 | |||||||||||
Other | 74 | 74 | |||||||||||
Property and equipment | 869 | 283 | |||||||||||
Total net deferred tax liabilities | $ | (1,062 | ) | $ | (1,617 | ) | |||||||
At January 31, 2015, we had federal, state and foreign net operating loss carry forwards of $37.1 million, $65.8 million and $2.1 million respectively, which can be used to offset future tax liabilities and expire at various dates beginning in fiscal 2016. Utilization of these net operating loss carry forwards may be limited pursuant to provisions of the respective local jurisdiction. At January 31, 2015, we had a federal capital loss carry forward of $10.8 million. This loss can only be utilized to offset capital gains and it expires in fiscal 2018. In addition, at January 31, 2015, we had federal and state research and development credit carry forwards of $3.8 million and $1.8 million respectively, and state investment tax credit carry forwards of $0.3 million. The federal credit carry forwards will expire at various dates beginning in fiscal 2016, if not utilized. Certain state credit carry forwards will expire at various dates, while certain other credit carry forwards may be carried forward indefinitely. Utilization of these credit carry forwards may be limited pursuant to provisions of the respective local jurisdiction. We also have alternative minimum tax credit carry forwards of $0.6 million which are available to reduce future federal regular income taxes over an indefinite period. We have foreign tax credit carry forwards of $2.0 million which are available to reduce future federal regular income taxes. | |||||||||||||
We review quarterly the adequacy of the valuation allowance for deferred tax assets. We have evaluated the positive and negative evidence bearing upon the realizability of our deferred tax assets and have established a valuation allowance of $30.4 million for such assets, which are comprised principally of net operating loss carry forwards, research and development credits, deferred revenue, inventory and stock-based compensation. If we generate pre-tax income in the future, some portion or all of the valuation allowance could be reversed and a corresponding increase in net income would be reported in future periods. The valuation allowance increased $9.6 million from $20.8 million at January 31, 2014. | |||||||||||||
At January 31, 2015, we have indefinitely reinvested $83.7 million of the cumulative undistributed earnings of certain foreign subsidiaries. Approximately $48 million of such earnings would be subject to U.S. taxes if repatriated to the United States. Through January 31, 2015, we have not provided deferred income taxes on the undistributed earnings of our foreign subsidiaries because such earnings are considered to be indefinitely reinvested outside the United States. Non-U.S. current and deferred income taxes have been provided in connection with our foreign subsidiaries’ continuing operations with the exception of a subsidiary in the British Virgin Islands, which operates in a zero rate jurisdiction. Determination of the potential deferred income tax liability on these undistributed earnings is not practicable because such liability, if any, is dependent on circumstances existing if, and when, remittance occurs. | |||||||||||||
For the fiscal year ended January 31, 2015, we recognized incremental tax benefits of $0.5 million. This incremental tax benefit is primarily due to $0.3 million of tax benefit recorded for the expiration of the statute of limitations and $0.3 million for the effect of foreign translation, offset by $0.1 million in tax expense due to the increase in uncertain tax positions. None of the amounts included in the balance of unrecognized tax benefits at January 31, 2015 of $5.5 million are related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next twelve months. We recognize accrued interest and penalties related to uncertain tax positions in income tax expense. A reconciliation of the beginning and ending balance of the total amounts of gross unrecognized tax benefits is as follows: | |||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Balance of gross unrecognized tax benefits, beginning of period | $ | 6,035 | $ | 9,364 | |||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 96 | 445 | |||||||||||
Decrease due to expiration of statute of limitation | (275 | ) | (439 | ) | |||||||||
Gross decrease in prior period positions | — | (3,379 | ) | ||||||||||
Effect of currency translation | (329 | ) | 44 | ||||||||||
Balance of gross unrecognized tax benefits, end of period | $ | 5,527 | $ | 6,035 | |||||||||
We file income tax returns in U.S. federal jurisdiction, various state jurisdictions, and various foreign jurisdictions. We are no longer subject to U.S. federal examinations before fiscal 2010. However, the taxing authorities still have the ability to review the propriety of certain tax attributes created in closed years if such tax attributes are utilized in an open tax year, such as our federal research and development credit carryovers. Presently, we are undergoing an IRS audit for the fiscal years 2010, 2011 and 2012. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 13. Employee Benefit Plans |
We sponsor a 401(k) retirement savings plan (the “Plan”) that covers substantially all domestic employees of SeaChange. The Plan allows employees to contribute gross salary through payroll deductions up to the legally mandated limit based on their jurisdiction. Participation in the Plan is available to full-time employees who meet eligibility requirements. We also contribute to various retirement plans for our employees outside the United States of which the amounts will vary, according to the local plans specific to each foreign location. During fiscal 2015, 2014 and 2013, we contributed $1.7 million, $1.7 million and $1.4 million, respectively. | |
We have a statutory pension benefit obligation covering current employees in the Philippines. We recorded a total of approximately $39,000 and $33,000 in interest costs in fiscal 2015 and fiscal 2014, respectively, and $0.2 million in service costs in both fiscal years relating to this obligation. We also recorded an actuarial loss of $0.4 million to this obligation in fiscal 2015, while no actuarial gain (loss) was recorded in fiscal 2014. The total unfunded projected benefit obligation was $1.2 million and $0.7 million as of January 31, 2015 and 2014, respectively, and recorded in other liabilities, long-term, in our consolidated balance sheets. We do not anticipate to begin paying this obligation until fiscal 2020 and estimate $0.3 million in benefit payments through fiscal 2025. We used projected discount rates of 4.2% and 5.9% for fiscal 2015 and 2014, respectively, and a compensation increase rate of 7%, in the calculation of our benefit obligation and periodic benefit costs. During fiscal years 2015, 2014 and 2013, we recorded $0.5 million, $0.2 million and $0.2 million, respectively, in periodic benefit costs for this obligation. |
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net Loss Per Share | 14. Net Loss Per Share | ||||||||||||
Net loss per share is presented in accordance with authoritative guidance which requires the presentation of “basic” and “diluted” earnings per share. Basic net loss per share is computed by dividing earnings available to common shareholders by the weighted average shares of common stock outstanding during the period. For the purposes of calculating diluted net loss per share, the denominator includes both the weighted average number of shares of common stock outstanding during the period and the weighted average number of shares of potential dilutive shares of common stock, such as stock options, RSUs and DSUs, calculated using the treasury stock method. Basic and diluted net loss per share was the same for all the periods presented as the impact of potential dilutive shares outstanding was anti-dilutive. | |||||||||||||
The following table sets forth our computation of basic and diluted net loss per common share (amounts in thousands, except per share data): | |||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net loss from continuing operations | $ | (27,489 | ) | $ | (2,227 | ) | $ | (2,799 | ) | ||||
Net income (loss) from discontinued operations | 5 | (803 | ) | (16,366 | ) | ||||||||
Net loss | $ | (27,484 | ) | $ | (3,030 | ) | $ | (19,165 | ) | ||||
Weighted average shares used in computing net loss per share—basic | 32,772 | 32,718 | 32,494 | ||||||||||
Effect of dilutive shares: | |||||||||||||
Stock options | — | — | — | ||||||||||
Restricted stock units | — | — | — | ||||||||||
Deferred stock units | |||||||||||||
Dilutive potential common shares | — | — | — | ||||||||||
Weighted average shares used in computing net loss per share—diluted | 32,772 | 32,718 | 32,494 | ||||||||||
Net loss per share—basic: | |||||||||||||
Loss from continuing operations | $ | (0.84 | ) | $ | (0.07 | ) | $ | (0.09 | ) | ||||
Loss income from discontinued operations | 0 | (0.02 | ) | (0.50 | ) | ||||||||
Net loss per share—basic | $ | (0.84 | ) | $ | (0.09 | ) | $ | (0.59 | ) | ||||
Net loss per share—diluted: | |||||||||||||
Loss from continuing operations | $ | (0.84 | ) | $ | (0.07 | ) | $ | (0.09 | ) | ||||
Loss from discontinued operations | 0 | (0.02 | ) | (0.50 | ) | ||||||||
Net loss per share—diluted | $ | (0.84 | ) | $ | (0.09 | ) | $ | (0.59 | ) | ||||
The number of common shares used in the computation of diluted net loss per share for the periods presented does not include the effect of the following potentially outstanding common shares because the effect would have been anti-dilutive (amounts in thousands): | |||||||||||||
For the Fiscal Year Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Stock options | 1,586 | 913 | 1,707 | ||||||||||
Restricted stock units | 217 | 473 | 529 | ||||||||||
Deferred stock units | 11 | — | — | ||||||||||
Total | 1,814 | 1,386 | 2,236 | ||||||||||
Quarterly_Results_of_Operation
Quarterly Results of Operations-Unaudited | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations-Unaudited | 15. Quarterly Results of Operations—Unaudited | ||||||||||||||||
The following table sets forth certain unaudited quarterly results of operations for fiscal 2015 and fiscal 2014. In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly the quarterly information when read in conjunction with the audited consolidated financial statements and notes thereto included elsewhere in this Form 10-K. The quarterly operating results are not necessarily indicative of future results of operations. | |||||||||||||||||
Fiscal Year Ended January 31, 2015 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
(Amounts in thousands, except per share data) | |||||||||||||||||
Revenue | $ | 24,337 | $ | 29,849 | $ | 29,970 | $ | 31,279 | |||||||||
Gross profit | 10,891 | 15,387 | 14,793 | 16,036 | |||||||||||||
Operating expenses | 21,026 | 20,574 | 20,660 | 21,300 | |||||||||||||
Net loss from continuing operations | (9,467 | ) | (5,687 | ) | (6,195 | ) | (6,140 | ) | |||||||||
Net income (loss) from discontinued operations (1) | — | 119 | (114 | ) | — | ||||||||||||
Net loss | (9,467 | ) | (5,568 | ) | (6,309 | ) | (6,140 | ) | |||||||||
Net loss per share from continuing operations (2): | |||||||||||||||||
Basic loss per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.19 | ) | |||||
Diluted loss per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.19 | ) | |||||
Income (loss) per share from discontinued operations (2): | |||||||||||||||||
Basic income (loss) per share | $ | — | $ | 0 | $ | (0.00 | ) | $ | — | ||||||||
Diluted income (loss) per share | $ | — | $ | 0 | $ | (0.00 | ) | $ | — | ||||||||
Loss per share (2): | |||||||||||||||||
Basic loss per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.19 | ) | |||||
Diluted loss per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.19 | ) | |||||
Fiscal Year Ended January 31, 2014 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
(Amounts in thousands, except per share data) | |||||||||||||||||
Revenue | $ | 35,552 | $ | 37,380 | $ | 37,771 | $ | 35,616 | |||||||||
Gross profit | 19,084 | 21,362 | 20,888 | 17,865 | |||||||||||||
Operating expenses | 20,900 | 20,827 | 20,359 | 18,742 | |||||||||||||
Net (loss) income from continuing operations | (2,020 | ) | 343 | 798 | (1,348 | ) | |||||||||||
Net income (loss) from discontinued operations (1) | 35 | (558 | ) | (221 | ) | (59 | ) | ||||||||||
Net (loss) income | (1,985 | ) | (215 | ) | 577 | (1,407 | ) | ||||||||||
Net (loss) income per share from continuing operations (2): | |||||||||||||||||
Basic (loss) income per share | $ | (0.06 | ) | $ | 0.01 | $ | 0.02 | $ | (0.04 | ) | |||||||
Diluted (loss) income per share | $ | (0.06 | ) | $ | 0.01 | $ | 0.02 | $ | (0.04 | ) | |||||||
Income (loss) per share from discontinued operations (2): | |||||||||||||||||
Basic income (loss) per share | $ | 0 | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||
Diluted income (loss) per share | $ | 0 | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||
(Loss) income per share (2): | |||||||||||||||||
Basic (loss) income per share | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.02 | $ | (0.04 | ) | ||||||
Diluted (loss) income per share | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.02 | $ | (0.04 | ) | ||||||
-1 | In May 2012, we completed the sale of our broadcast servers and storage business and our media services business. As a result, both businesses have been reported as discontinued operations in our consolidated financial statements. | ||||||||||||||||
-2 | The sum of per share data may not agree to annual amounts due to rounding. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |||
Jan. 31, 2015 | ||||
Subsequent Events [Abstract] | ||||
Subsequent Events | 16. Subsequent Events | |||
Acquisition of Timeline Labs | ||||
On February 2, 2015, we acquired TLL, LLC (“Timeline Labs”), pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) dated December 22, 2014 for: | ||||
• | $12.6 million in cash paid at closing reduced by any indebtedness and any amounts withdrawn by Timeline Labs from the escrow established for working capital purposes; | |||
• | $1.9 million in shares of our common stock paid at closing (344,055 shares); | |||
• | $1.4 million in cash and $0.5 million in shares of our common stock deposited in escrow at closing with respect to specified indemnification matters; | |||
• | Deferred stock consideration aggregating $5.6 million in shares of our common stock, paid six months from closing and one year from closing with an aggregate $0.6 million in value of such shares deposited in escrow with respect to specified indemnification matters; and | |||
• | Earnout payments totaling up to $2.5 million to be settled in shares of our common stock, based on the operations of Timeline Labs, measured by qualifying revenue, on a cumulative and one-year performance target basis for the periods ended January 31, 2016 and 2017. | |||
Timeline Labs is a California-based Software-as-a-service (“SaaS”) company that enables local broadcasters, national news organizations and other media companies and brands to analyze social media messages in real-time, find and broadcast social trends, and measure viewing audience engagement across television, mobile and personal computers. Results of operations for Timeline Labs will be included in SeaChange’s consolidated financial statements from the date of acquisition. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SEACHANGE INTERNATIONAL, INC. | ||||||||||||||||||||
Schedule II—Valuation and Qualifying Accounts | |||||||||||||||||||||
For the Fiscal Years Ended January 31, 2015, 2014 and 2013 | |||||||||||||||||||||
Description | Balance at | Additions | Deductions | Balance at | |||||||||||||||||
beginning of | and write- | end of | |||||||||||||||||||
period | Charged to | Charged | offs | period | |||||||||||||||||
costs and | to other | ||||||||||||||||||||
expenses | accounts | ||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
Accounts Receivable Allowance: | |||||||||||||||||||||
Year ended January 31, 2015 | $ | 327 | $ | 80 | $ | — | $ | (7 | ) | $ | 400 | ||||||||||
Year ended January 31, 2014 | $ | 946 | $ | 286 | $ | 31 | $ | (936 | ) | $ | 327 | ||||||||||
Year ended January 31, 2013 | $ | 1,127 | $ | — | $ | 13 | $ | (194 | ) | $ | 946 | ||||||||||
Deferred Tax Assets Valuation Allowance: | |||||||||||||||||||||
Year ended January 31, 2015 | $ | 20,789 | $ | 9,825 | $ | — | $ | — | $ | 30,614 | |||||||||||
Year ended January 31, 2014 | $ | 19,965 | $ | 824 | $ | — | $ | — | $ | 20,789 | |||||||||||
Year ended January 31, 2013 | $ | 12,254 | $ | 7,711 | $ | — | $ | — | $ | 19,965 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Jan. 31, 2015 | ||||
Accounting Policies [Abstract] | ||||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation | |||
The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. We consolidate the financial statements of our wholly-owned subsidiaries and all intercompany transactions and account balances have been eliminated in consolidation. We have reclassified certain prior fiscal year data to conform to our current fiscal year presentation. | ||||
We also hold minority investments in the capital stock of certain private companies having product offerings or customer relationships that have strategic importance. We evaluate our equity and debt investments and other contractual relationships with affiliate companies in order to determine whether the guidelines regarding the consolidation of VIE’s should be applied in the financial statements. Consolidation guidelines address consolidation by business enterprises of VIE’s that possess certain characteristics. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. We use qualitative analysis to determine whether or not we are the primary beneficiary of a VIE. We consider the rights and obligations conveyed by the implicit and explicit variable interest in each VIE and the relationship of these with the variable interests held by other parties to determine whether its variable interests will absorb a majority of a VIE’s expected losses, receive a majority of its expected residual returns, or both. If we determine that our variable interests will absorb a majority of the VIE’s expected losses, receive a majority of their expected residual returns, or both, we consolidate the VIE as the primary beneficiary, and if not, it is not consolidated. We have concluded that we are not the primary beneficiary for any variable interest entities during fiscal 2015. | ||||
Use of Estimates | Use of Estimates | |||
The preparation of these financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. On an ongoing basis, management evaluates these estimates and judgments, including those related to the timing and amounts of revenue recognition, valuation of inventory, collectability of accounts receivable, valuation of investments and income taxes, assumptions used to determine stock-based compensation, valuation of goodwill and intangible assets and related amortization. Management bases these estimates on historical and anticipated results and trends and on various other assumptions that management believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from management’s estimates. | ||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||
Cash and cash equivalents include cash on hand and on deposit and highly liquid, temporary cash investments with an original maturity of three months or less. All cash equivalents are carried at cost, which approximates fair value. | ||||
Marketable Securities | Marketable Securities | |||
We account for investments in accordance with authoritative guidance that defines investment classifications. We determine the appropriate classification of debt securities at the time of purchase and reevaluate such designation as of each balance sheet date. Our investment portfolio consists primarily of money market funds, U.S. treasury notes or bonds and U.S. government agency bonds at January 31, 2015 and 2014, but can consist of corporate debt investments, asset-backed securities and government-sponsored enterprises. Our marketable securities are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of tax, reported in stockholders’ equity as a component of accumulated other comprehensive loss. The amortization of premiums and accretion of discounts to maturity are computed under the effective interest method and are included in other expenses, net in our consolidated statements of operations and comprehensive loss. Interest on securities is recorded as earned and is also included in other expenses, net. Any realized gains or losses would be shown in the accompanying consolidated statements of operations and comprehensive loss in other expenses, net. | ||||
We evaluate our investments on a regular basis to determine whether an other-than-temporary decline in fair value has occurred. This evaluation consists of a review of several factors, including, but not limited to: the length of time and extent that an investment has been in an unrealized loss position; the existence of an event that would impair the issuer’s future earnings potential; and our intent and ability to hold an investment for a period of time sufficient to allow for any anticipated recovery in fair value. Declines in value below cost for investments where it is considered probable that all contractual terms of the investment will be satisfied, are due primarily to changes in interest rates, and where the company has the intent and ability to hold the investment for a period of time sufficient to allow a market recovery, are not assumed to be other-than-temporary. Any other-than-temporary declines in fair value are recorded in earnings and a new cost basis for the investment is established. | ||||
Fair Value Measurements | Fair Value Measurements | |||
Definition and Hierarchy | ||||
The applicable accounting guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a framework for measuring fair value and expands required disclosure about the fair value measurements of assets and liabilities. This guidance requires us to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a non-recurring basis in periods subsequent to initial measurement, in a fair value hierarchy. | ||||
The fair value hierarchy is broken down into three levels based on the reliability of inputs and requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required, as well as the assets and liabilities that we value using those levels of inputs: | ||||
• | Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. | |||
• | Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not very active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||
• | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value measurements of the contingent consideration obligations related to our business acquisitions are valued using Level 3 inputs. | |||
Valuation Techniques | ||||
Inputs to valuation techniques are observable and unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. When developing fair value estimates for certain financial assets and liabilities, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices, market comparables and discounted cash flow projections. Financial instruments include money market funds, U.S. treasury notes or bonds and U.S. government agency bonds. | ||||
In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. In periods of market inactivity, the observability of prices and inputs may be reduced for certain instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3. | ||||
Concentration of Credit Risk | Concentration of Credit Risk | |||
Financial instruments which potentially expose us to concentrations of credit risk include cash equivalents, investments in treasury bills, certificates of deposits and commercial paper, trade accounts receivable, accounts payable and accrued liabilities. We have cash investment policies which, among other things, limit investments to investment-grade securities. We restrict our cash equivalents and investments in marketable securities to repurchase agreements with major banks and U.S. government and corporate securities which are subject to minimal credit and market risk. We perform ongoing credit evaluations of our customers. As of January 31, 2015, two customers represented more than 10% of consolidated accounts receivable compared to one customer as of January 31, 2014. For fiscal 2015, 2014 and 2013, two, three and two customers each accounted for more than 10% of our total revenue. | ||||
Accounts Receivable and Allowances for Doubtful Accounts | Accounts Receivable and Allowances for Doubtful Accounts | |||
For trade accounts receivable, we evaluate customers’ financial condition, require advance payments from certain of our customers and maintain reserves for potential credit losses. We perform ongoing credit evaluations of customers’ financial condition but generally do not require collateral. For some international customers, we require an irrevocable letter of credit to be issued by the customer before the purchase order is accepted. We monitor payments from customers and assess any collection issues. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments and record these allowances as a charge to general and administrative expenses in our consolidated statements of operations and comprehensive loss. We base our allowances for doubtful accounts on historical collections and write-off experience, current trends, credit assessments, and other analysis of specific customer situations. At January 31, 2015 and 2014, we had an allowance for doubtful accounts of $0.4 million and $0.3 million, respectively, to provide for potential credit losses. We charge off trade accounts receivables against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Recoveries of trade receivables previously charged off are recorded when received. | ||||
Inventory Valuation | Inventory Valuation | |||
Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (“FIFO”) method. Inventories consist primarily of components and subassemblies and finished products held for sale. The values of inventories are reviewed quarterly to determine that the carrying value is stated at the lower of cost or net realizable value. We record charges to reduce inventory to its net realizable value when impairment is identified through a quarterly review process. The obsolescence evaluation is based upon assumptions and estimates about future demand, or possible alternative uses and involves significant judgments. For the years ended January 31, 2015, 2014 and 2013, we recorded a provision for obsolescence of $0.1 million, $0.1 million and $0.3 million, respectively. | ||||
Property and Equipment | Property and Equipment | |||
Property and equipment consists of land and buildings, office and computer equipment, leasehold improvements, demonstration equipment, deployed assets and spare components and assemblies used to service our installed base. Property and equipment are recorded at cost and depreciated over their estimated useful lives. Determining the useful lives of property and equipment requires us to make significant judgments that can materially impact our operating results. If our estimates require adjustment, it could have a material impact on our reported results. | ||||
Demonstration equipment consists of systems manufactured by us for use in marketing and selling activities. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the respective leases using the straight-line method. Deployed assets consist of movie systems owned and manufactured by us that are installed in a hotel environment. Deployed assets are depreciated over the life of the related service agreements. Capitalized service and spare components are depreciated over the estimated useful lives using the straight-line method. Maintenance and repair costs are expensed as incurred. | ||||
Generally, property and equipment include assets in service. Fully depreciated assets remaining in service along with related accumulated depreciation are not removed from the balance sheet until the corresponding asset is removed from service either through a retirement or sale. Upon retirement or sale of an asset or asset group, the cost of the assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net income or loss. | ||||
Investments in Affiliates | Investments in Affiliates | |||
Our investments in affiliates include investments accounted for under the cost method and the equity method of accounting. The investments that represent less than a 20% ownership interest of the common shares of the affiliate are carried at cost. Under the equity method of accounting, which generally applies to investments that represent 20% to 50% ownership of the common shares of the affiliate, our proportionate ownership share of the earnings or losses of the affiliate are included in equity income in earnings of affiliates in our consolidated statements of operations and comprehensive loss. | ||||
We periodically review indicators of the fair value of our investments in affiliates in order to assess whether available facts or circumstances, both internally and externally, may suggest an “other than temporary” decline in the value of the investment. If we determine that an other-than-temporary impairment has occurred, we will write-down the investment to its fair value. The carrying value of an investment in an affiliate may be affected by the affiliate’s ability to obtain adequate funding and execute its business plans, general market conditions, the company’s current cash position, earnings and cash flow forecasts, recent operational performance, and any other readily available data. The inability of an affiliate to obtain future funding or successfully execute its business plan could adversely affect our equity earnings of the affiliate in the periods affected by those events. Future adverse changes in market conditions or poor operating results of the affiliates could result in equity losses or an inability to recover the carrying value of the investments in affiliates that may not be reflected in an investment’s current carrying value, thereby possibly requiring an impairment charge in the future. | ||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill | |||
Intangible assets consist of customer contracts, completed technology, non-compete agreements, trademarks and patents. The intangible assets are amortized to cost of sales and operating expenses, as appropriate, on a straight-line or accelerated basis, using the economic consumption life basis, in order to reflect the period that the assets will be consumed, which are: | ||||
Intangible assets with finite useful lives: | ||||
Customer contracts | 1 - 8 years | |||
Non compete agreements | 2 - 3 years | |||
Completed technology | 4 - 6 years | |||
Trademarks, patents and other | 5 years | |||
Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. | ||||
Impairment of Assets | Impairment of Assets | |||
Indefinite-lived intangible assets, such as goodwill are not amortized, but are evaluated for impairment, at the reporting unit level, annually in our third quarter beginning August 1st. Indefinite-lived intangible assets may be tested for impairment on an interim basis in addition to the annual evaluation if an event occurs or circumstances change such as declines in sales, earnings or cash flows, decline in the Company’s stock price, or material adverse changes in the business climate, which would more likely than not reduce the fair value of a reporting unit below its carrying amount. | ||||
The process of evaluating indefinite-lived intangible assets for impairment requires several judgments and assumptions to be made to determine the fair value of the Company, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and earnings, and the selection of comparable companies used to develop market-based assumptions. We may employ one or more of three generally accepted approaches for valuing businesses: the market approach, the income approach and the asset-based (cost) approach to arrive at the fair value. We chose to use the market approach and the income approach to determine the value of the Company for our testing in fiscal 2015. In calculating the fair value, we derived the standalone projected five year cash flows for the Company. This process started with the projected cash flows which were discounted. The choice of which approach and methods to use in a particular situation depends on the facts and circumstances. | ||||
We also evaluate property and equipment, intangible assets with finite useful lives and other long-lived assets on a regular basis for the existence of facts or circumstances, both internal and external that may suggest an asset is not recoverable. If such circumstances exist, we evaluate the carrying value of long-lived assets to determine if impairment exists based upon estimated undiscounted future cash flows over the remaining useful life of the assets and compares that value to the carrying value of the assets. Our cash flow estimates contain management’s best estimates, using appropriate and customary assumptions and projections at the time. | ||||
Income Taxes | Income Taxes | |||
Income tax comprises current and deferred tax. Income tax is recognized in the consolidated statements of operations and comprehensive loss except to the extent that it relates to items recognized directly within equity or in other comprehensive loss. Income taxes payable, which is included in other accrued expenses in our consolidated balance sheets, is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially-enacted at the reporting date, and any adjustment to tax payable in respect of previous years. | ||||
Deferred tax assets and liabilities are recognized, using the balance sheet method, for the expected tax consequences of temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of goodwill, the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they probably will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantially-enacted by the reporting date. | ||||
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. | ||||
We operate in multiple jurisdictions with complex tax policy and regulatory environments. In certain of these jurisdictions, we may take tax positions that management believes are supportable, but are potentially subject to successful challenge by the applicable taxing authority. These interpretational differences with the respective governmental taxing authorities can be impacted by the local economic and fiscal environment. We evaluate our tax positions and establish liabilities in accordance with the applicable accounting guidance on uncertainty in income taxes. We review these tax uncertainties in light of changing facts and circumstances, such as the progress of tax audits, and adjust them accordingly. We have a number of audits in process in various jurisdictions. Although the resolution of these tax positions is uncertain, based on currently available information, we believe that the ultimate outcomes will not have a material adverse effect on our financial position, results of operations or cash flows. | ||||
Because there are a number of estimates and assumptions inherent in calculating the various components of our tax provision, certain changes or future events such as changes in tax legislation, geographic mix of earnings, completion of tax audits or earnings repatriation plans could have an impact on those estimates and our effective tax rate. | ||||
Restructuring | Restructuring | |||
Restructuring charges that we record consist of employee-related severance charges, contract termination costs and the disposal of related fixed assets. Restructuring charges represent our best estimate of the associated liability at the date the charges are recognized. Adjustments for changes in assumptions are recorded as a component of operating expenses in the period they become known. Differences between actual and expected charges and changes in assumptions could have a material effect on our restructuring accrual as well as our consolidated results of operations. See Note 7, “Severance and Other Restructuring Costs,” for more information on the current restructuring plan. | ||||
Foreign Currency Translation | Foreign Currency Translation | |||
For subsidiaries where the U.S. dollar is designated as the functional currency of the entity, we translate that entity’s monetary assets and liabilities denominated in local currencies into U.S. dollars (the functional and reporting currency) at current exchange rates, as of each balance sheet date. Non-monetary assets (e.g., inventories, property, plant, and equipment and intangible assets) and related income statement accounts (e.g., cost of sales, depreciation, amortization of intangible assets) are translated at historical exchange rates between the functional currency (the U.S. dollar) and the local currency. Revenue and other expense items are translated using average exchange rates during the fiscal period. Translation adjustments resulting from translation of the subsidiaries’ accounts are included in accumulated other comprehensive loss, a separate component of stockholders’ equity. Gains and losses on foreign currency transactions, and any unrealized gains and losses on short-term inter-company transactions are included in other expense, net. | ||||
For subsidiaries where the local currency is designated as the functional currency, we translate our assets and liabilities into U.S. dollars (the reporting currency) at current exchange rates as of each balance sheet date. Revenue and expense items are translated using average exchange rates during the period. Cumulative translation adjustments are presented as a separate component of stockholders’ equity. Exchange gains and losses on foreign currency transactions and unrealized gains and losses on short-term inter-company transactions are included in other expense, net. | ||||
The aggregate foreign exchange transaction losses included in other expenses, net, on the consolidated statements of operations and comprehensive loss, were $2.3 million, $0.4 million and approximately $23,000 for fiscal 2015, 2014 and 2013, respectively. | ||||
Comprehensive Loss | Comprehensive Loss | |||
We present accumulated other comprehensive loss in our consolidated balance sheets and comprehensive loss in the consolidated statement of operations and comprehensive loss. At the end of fiscal 2015, 2014 and 2013, our comprehensive loss of $31.1 million, $3.3 million and $11.2 million consists primarily of net loss, cumulative translation adjustments and unrealized gains and losses on marketable securities. | ||||
Revenue Recognition | Revenue Recognition | |||
Our transactions frequently involve the sales of hardware, software, systems and services in multiple-element arrangements. Revenues from sales of hardware, software and systems that do not require significant modification or customization of the underlying software are recognized when: | ||||
• | persuasive evidence of an arrangement exists; | |||
• | delivery has occurred, and title and risk of loss have passed to the customer; | |||
• | fees are fixed or determinable; and | |||
• | collection of the related receivable is considered probable. | |||
Customers are billed for installation, training, project management and at least one year of product maintenance and technical support at the time of the product sale. Revenue from these activities is deferred at the time of the product sale and recognized ratably over the period these services are performed. Revenue from ongoing product maintenance and technical support agreements is recognized ratably over the period of the related agreements. Revenue from software development contracts that include significant modification or customization, including software product enhancements, is recognized based on the percentage of completion contract accounting method using labor efforts expended in relation to estimates of total labor efforts to complete the contract. Accounting for contract amendments and customer change orders are included in contract accounting when executed. Revenue from shipping and handling costs and other out-of-pocket expenses reimbursed by customers are included in revenues and cost of revenues. Our share of intercompany profits associated with sales and services provided to affiliated companies are eliminated in consolidation in proportion to our equity ownership. | ||||
Revenue from the sale of software-only products remains within the scope of the software revenue recognition rules. Maintenance and support, training, consulting, and installation services no longer fall within the scope of the software revenue recognition rules, except when they are sold with and relate to a software-only product. Revenue recognition for products that no longer fall under the scope of the software revenue recognition rules is similar to that for other tangible products and ASU 2009-13, “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements,” amended ASC 605 and is applicable for multiple-deliverable revenue arrangements. ASU 2009-13 allows companies to allocate revenue in a multiple-deliverable arrangement in a manner that better reflects the transaction’s economics. | ||||
Under the software revenue recognition rules, the fee is allocated to the various elements based on vendor-specific objective evidence (“VSOE”) of fair value. Under this method, the total arrangement value is allocated first to undelivered elements based on their fair values, with the remainder being allocated to the delivered elements. Where fair value of undelivered service elements has not been established, the total arrangement value is recognized over the period during which the services are performed. The amounts allocated to undelivered elements, which may include project management, training, installation, maintenance and technical support and certain hardware and software components, are based upon the price charged when these elements are sold separately and unaccompanied by the other elements. The amount allocated to installation, training and project management revenue is based upon standard hourly billing rates and the estimated time necessary to complete the service. These services are not essential to the functionality of systems as these services do not alter the equipment’s capabilities, are available from other vendors and the systems are standard products. For multiple-element arrangements that include software development with significant modification or customization and systems sales where VSOE of the fair value does not exist for the undelivered elements of the arrangement (other than maintenance and technical support), percentage of completion accounting is applied for revenue recognition purposes to the entire arrangement with the exception of maintenance and technical support. | ||||
Under the revenue recognition rules for tangible products as amended by ASU 2009-13, the fee from a multiple-deliverable arrangement is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon VSOE if available, third-party evidence (“TPE”) if VSOE is not available, and best estimate of selling price (“BESP”) if neither VSOE nor TPE are available. TPE is the price of the Company’s, or any competitor’s, largely interchangeable products or services in stand-alone sales to similarly situated customers. BESP is the price at which we would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors. | ||||
The selling prices used in the relative selling price allocation method for certain of our services are based upon VSOE. The selling prices used in the relative selling price allocation method for third-party products from other vendors are based upon TPE. The selling prices used in the relative selling price allocation method for our hardware products, software, subscriptions, and customized services for which VSOE does not exist are based upon BESP. We do not believe TPE exists for these products and services because they are differentiated from competing products and services in terms of functionality and performance and there are no competing products or services that are largely interchangeable. Management establishes BESP with consideration for market conditions, such as the impact of competition and geographic considerations, and entity-specific factors, such as the cost of the product, discounts provided and profit objectives. Management believes that BESP is reflective of reasonable pricing of that deliverable as if priced on a stand-alone basis. | ||||
For our cloud and managed service revenues, we generate revenue from two sources: (1) subscription and support services; and (2) professional services and other. Subscription and support revenue includes subscription fees from customers accessing our cloud-based software platform and support fees. Our arrangements with customers do not provide the customer with the right to take possession of the software supporting the cloud-based software platform at any time. Professional services and other revenue include fees from implementation and customization to support customer requirements. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. For the most part, subscription and support agreements are entered into for 12 to 36 months. Generally, a majority of the professional services component of the arrangements with customers is performed within a year of entering into a contract with the customer. | ||||
In most instances, revenue from a new customer acquisition is generated under sales agreements with multiple elements, comprised of subscription and support and other professional services. We evaluate each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within our control. | ||||
In determining when to recognize revenue from a customer arrangement, we are often required to exercise judgment regarding the application of our accounting policies to a particular arrangement. The primary judgments used in evaluating revenue recognized in each period involve: determining whether collection is probable, assessing whether the fee is fixed or determinable, and determining the fair value of the maintenance and service elements included in multiple-element software arrangements. Such judgments can materially impact the amount of revenue that we record in a given period. While we follow specific and detailed rules and guidelines related to revenue recognition, we make and use significant management judgments and estimates in connection with the revenue recognized in any reporting period, particularly in the areas described above. If management made different estimates or judgments, material differences in the timing of the recognition of revenue could occur. | ||||
Stock-Based Compensation | Stock-based Compensation | |||
We account for all employee and non-employee director stock-based compensation awards using the authoritative guidance regarding stock-based payments. We have continued to use the Black-Scholes pricing model as the most appropriate method for determining the estimated fair value of all applicable awards. We also use the Monte Carlo pricing model for our market-based option awards. Determining the appropriate fair value model and calculating the fair value of stock-based payment awards requires the input of highly subjective assumptions, including the expected life of the stock-based payment awards and stock price volatility. Management estimates the volatility based on the historical volatility of our stock. The assumptions used in calculating the fair value of stock-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management’s judgment. As a result, if circumstances change and we use different assumptions, our stock-based compensation expense could be materially different in the future. In addition, we are required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. If our actual forfeiture rate is materially different from our estimate, the stock-based compensation expense could be significantly different from what it has recorded in the current period. The estimated fair value of our stock-based options and performance-based restricted stock units (“RSUs”), less expected forfeitures, is amortized over the awards’ vesting period on a graded vesting basis, whereas the RSUs and employee stock purchase plan stock units are amortized on a straight-line basis. | ||||
Advertising Costs | Advertising Costs | |||
Advertising costs are charged to expense as incurred. Advertising costs were $0.1 million, $0.1 million and $0.2 million for fiscal 2015, 2014 and 2013, respectively. | ||||
Earnings Per Share | Earnings Per Share | |||
Earnings per share are presented in accordance with authoritative guidance which requires the presentation of “basic” earnings per share and “diluted” earnings per share. Basic earnings per share is computed by dividing earnings available to common shareholders by the weighted-average shares of common stock outstanding during the period. For the purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding during the period and the weighted average number of potential shares of common stock, such as stock options and restricted stock, calculated using the treasury stock method. For the purpose of calculating diluted loss per share, we do not include these shares in the denominator because these shares would have an anti-dilutive effect on periods in which we incur a net loss. Certain shares of our common stock have exercise prices in excess of the average market price. These shares are anti-dilutive and are omitted from the calculation of earnings per share. For more information on this see Note 14., “Net Loss Per Share,” below. | ||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||
We consider the applicability and impact of all Accounting Standards Updates. Updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. | ||||
Recent Accounting Guidance Not Yet Effective | ||||
Amendments to the Consolidation Analysis | ||||
In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis.” ASU 2015-02 is intended to improve guidance for limited partnerships, limited liability corporations and securitization structures. The guidance places more emphasis on risk of loss when determining a controlling financial interest, reduces the frequency of the application of related-party guidance when determining a controlling financial interest in a VIE and changes consolidation conclusions for public and private companies that typically make use of limited partnerships or VIEs. This guidance is effective for us beginning in fiscal 2017. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2015-02 on our consolidated financial statements. | ||||
Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Item | ||||
In January 2015, the FASB issued ASU 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Item.” ASU 2015-01 is meant to reduce complexity in accounting standards by eliminating the concept of extraordinary items from U.S. GAAP. In the event of a transaction that meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax after income from continuing operations. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Besides presentation on the consolidated statements of operations and comprehensive (loss) income when an item that meets the extraordinary criteria exists, we do not feel that adoption of ASU 2015-01 will have a material impact on our consolidated financial statements. | ||||
Accounting For Share-Based Payments—Performance Target Could Be Achieved after the Requisite Service Period | ||||
In June 2014, the FASB issued ASU 2014-12, “Compensation—Stock Compensation (Topic 718)—Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target which affects vesting and that could be achieved after the requisite service period be treated as a performance condition by applying existing guidance in Topic 718 as it relates to awards with performance conditions. The amendment also specifies the period over which compensation costs should be recognized. The amendment is effective for annual reporting periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2014-12 on our consolidated financial statements. | ||||
Revenue from Contracts with Customers | ||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and the International Financial Reporting Standards. This guidance supersedes previously issued guidance on revenue recognition and gives a five step process an entity should follow so that the entity recognizes revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance will be effective for our fiscal 2018 reporting period and must be applied either retrospectively during each prior reporting period presented or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of the initial application. Early adoption is not permitted. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. | ||||
Reporting Discontinued Operations and Disposals of Components of an Entity | ||||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360)—Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changes the criteria for reporting discontinued operations while enhancing disclosures in this area. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. This guidance also expands the disclosures required when an entity reports a discontinued operation or when it disposes of or classifies as held for sale an individually significant component that does not meet the definition of a discontinued operation. This new guidance will be effective prospectively on disposals (or classifications of held for sale) of components of an entity that occur within our fiscal year beginning on February 1, 2015. Early adoption is permitted but only for disposals (or classification as held for sale) that have not been reported in financial statements previously issued or available for issuance. We do not anticipate material impacts on our financial statements upon initial adoption. This guidance could have a material impact on our disclosure requirements if we dispose of, or classify as held for sale, an individually significant component of our business that does not meet the definition of a discontinued operation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Jan. 31, 2015 | |||
Accounting Policies [Abstract] | |||
Schedule of Intangible Assets | The intangible assets are amortized to cost of sales and operating expenses, as appropriate, on a straight-line or accelerated basis, using the economic consumption life basis, in order to reflect the period that the assets will be consumed, which are: | ||
Intangible assets with finite useful lives: | |||
Customer contracts | 1 - 8 years | ||
Non compete agreements | 2 - 3 years | ||
Completed technology | 4 - 6 years | ||
Trademarks, patents and other | 5 years |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||
Summary of Selected Financial Information of Business Units | The following table details selected financial information for our former broadcast servers and storage and media services business units for the periods presented (amounts in thousands): | ||||||||||||||||||||||||
For the Fiscal Year Ended | For the Fiscal Year Ended | ||||||||||||||||||||||||
January 31, 2014 | January 31, 2013 | ||||||||||||||||||||||||
Servers | Media | Total | Servers | Media | Total | ||||||||||||||||||||
and | Services | Discontinued | and | Services | Discontinued | ||||||||||||||||||||
Storage | Operations | Storage | Operations | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Products | $ | 46 | $ | — | $ | 46 | $ | 1,031 | $ | — | $ | 1,031 | |||||||||||||
Services | — | — | — | 835 | 9,315 | 10,150 | |||||||||||||||||||
Total revenues | $ | 46 | $ | — | $ | 46 | $ | 1,866 | $ | 9,315 | $ | 11,181 | |||||||||||||
Income (loss) from discontinued operations: | |||||||||||||||||||||||||
Loss from discontinued operations, before tax | $ | (803 | ) | $ | — | $ | (803 | ) | $ | (1,854 | ) | $ | (194 | ) | $ | (2,048 | ) | ||||||||
Income tax provision (benefit) | — | — | — | 84 | (13 | ) | 71 | ||||||||||||||||||
Income in investment in affiliates | — | — | — | — | (174 | ) | (174 | ) | |||||||||||||||||
Loss from discontinued operations, after tax | $ | (803 | ) | $ | — | $ | (803 | ) | $ | (1,938 | ) | $ | (355 | ) | $ | (2,293 | ) | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of January 31, 2015 and January 31, 2014: | ||||||||||||||||
Fair Value at January 31, 2015 Using | |||||||||||||||||
January 31, | Quoted Prices | Significant | Significant | ||||||||||||||
2015 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market accounts (a) | $ | 1,575 | $ | 1,575 | $ | — | $ | — | |||||||||
Available for sale marketable securities: | |||||||||||||||||
Current marketable securities: | |||||||||||||||||
U.S. treasury notes and bonds—conventional | 1,501 | 1,501 | — | — | |||||||||||||
U.S. government agency issues | 6,015 | — | 6,015 | — | |||||||||||||
Non-current marketable securities: | |||||||||||||||||
U.S. treasury notes and bonds—conventional | 4,286 | 4,286 | |||||||||||||||
U.S. government agency issues | 2,507 | — | 2,507 | — | |||||||||||||
Total | $ | 15,884 | $ | 7,362 | $ | 8,522 | $ | — | |||||||||
Fair Value at January 31, 2014 Using | |||||||||||||||||
January 31, | Quoted Prices | Significant | Significant | ||||||||||||||
2014 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market accounts (a) | $ | 3,463 | $ | 3,463 | $ | — | $ | — | |||||||||
Available for sale marketable securities: | |||||||||||||||||
Current marketable securities: | |||||||||||||||||
U.S. treasury notes and bonds—conventional | 3,545 | 3,545 | — | — | |||||||||||||
U.S. government agency issues | 2,010 | — | 2,010 | — | |||||||||||||
Non-current marketable securities: | |||||||||||||||||
U.S. government agency issues | 6,814 | — | 6,814 | — | |||||||||||||
Total | $ | 15,832 | $ | 7,008 | $ | 8,824 | $ | — | |||||||||
a) | Money market funds and U.S. treasury bills are included in cash and cash equivalents on the accompanying consolidated balance sheet and are valued at quoted market prices for identical instruments in active markets. | ||||||||||||||||
Summary of Available-for-Sale Securities | The following is a summary of cash, cash equivalents and available-for-sale securities, including the cost basis, aggregate fair value and unrealized gains and losses, for short-and long-term marketable securities portfolio as of January 31, 2015 and 2014: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
January 31, 2015: | |||||||||||||||||
Cash | $ | 88,444 | $ | — | $ | — | $ | 88,444 | |||||||||
Cash equivalents | 1,575 | — | — | 1,575 | |||||||||||||
Cash and cash equivalents | 90,019 | — | — | 90,019 | |||||||||||||
U.S. treasury notes and bonds—short-term | 1,500 | 1 | 1,501 | ||||||||||||||
U.S. treasury notes and bonds—long-term | 4,268 | 18 | — | 4,286 | |||||||||||||
U.S, government agency issues—short-term | 6,008 | 7 | — | 6,015 | |||||||||||||
U.S, government agency issues—long-term | 2,490 | 17 | 2,507 | ||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 104,285 | $ | 43 | $ | — | $ | 104,328 | |||||||||
January 31, 2014: | |||||||||||||||||
Cash | $ | 112,271 | $ | — | $ | — | $ | 112,271 | |||||||||
Cash equivalents | 3,463 | — | — | 3,463 | |||||||||||||
Cash and cash equivalents | 115,734 | — | — | 115,734 | |||||||||||||
U.S. treasury notes and bonds—short-term | 3,540 | 5 | 3,545 | ||||||||||||||
U.S. government agency issues—short-term | 2,005 | 5 | 2,010 | ||||||||||||||
U.S. government agency issues—long-term | 6,806 | 8 | — | 6,814 | |||||||||||||
Total cash, cash equivalents and marketable securities | $ | 128,085 | $ | 18 | $ | — | $ | 128,103 | |||||||||
Schedule of Contractual Maturities Available-for-Sale Debt Securities | Contractual maturities of available-for-sale debt securities at January 31, 2015 are as follows (amounts in thousands): | ||||||||||||||||
Estimated | |||||||||||||||||
Fair Value | |||||||||||||||||
Maturity of one year or less | $ | 7,516 | |||||||||||||||
Maturity between one and five years | 6,793 | ||||||||||||||||
Total | $ | 14,309 | |||||||||||||||
Consolidated_Balance_Sheet_Det1
Consolidated Balance Sheet Detail (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Schedule of Inventories | Inventories consist primarily of hardware and related component parts and are stated at the lower of cost (on a first-in, first-out basis) or market. Inventories consist of the following: | ||||||||||||
January 31, | |||||||||||||
2015 | 2014 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Components and assemblies | $ | 1,487 | $ | 2,201 | |||||||||
Finished products | 1,377 | 4,431 | |||||||||||
Total inventories | $ | 2,864 | $ | 6,632 | |||||||||
Property and Equipment, Net | Property and equipment, net consists of the following: | ||||||||||||
Estimated | January 31, | ||||||||||||
Useful | |||||||||||||
Life (Years) | 2015 | 2014 | |||||||||||
(Amounts in thousands) | |||||||||||||
Land | $ | 2,880 | $ | 2,880 | |||||||||
Buildings | 20 | 12,146 | 12,081 | ||||||||||
Office furniture and equipment | 5 | 1,023 | 998 | ||||||||||
Computer equipment, software and demonstration equipment | 3 | 17,584 | 17,466 | ||||||||||
Service and spare components | 5 | 1,158 | 1,158 | ||||||||||
Leasehold improvements | 7-Jan | 1,089 | 1,145 | ||||||||||
35,880 | 35,728 | ||||||||||||
Less—Accumulated depreciation and amortization | (20,011 | ) | (17,198 | ) | |||||||||
Total property and equipment, net | $ | 15,869 | $ | 18,530 | |||||||||
Other Accrued Expenses | Other accrued expenses consist of the following: | ||||||||||||
January 31, | |||||||||||||
2015 | 2014 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Accrued compensation and commissions | $ | 1,518 | $ | 2,290 | |||||||||
Accrued bonuses | 2,186 | 2,095 | |||||||||||
Accrued severance | 2,021 | 229 | |||||||||||
Employee benefits | 1,959 | 2,113 | |||||||||||
Accrued other | 4,823 | 5,605 | |||||||||||
Total other accrued expenses | $ | 12,507 | $ | 12,332 | |||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Schedule of Change in Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the years ended January 31, 2015 and 2014 are as follows (amounts in thousands): | ||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
Balance at January 31, 2013 | $ | 45,103 | |||||||||||||||||||||||||||
Cumulative translation adjustment | 47 | ||||||||||||||||||||||||||||
Balance at January 31, 2014 | 45,150 | ||||||||||||||||||||||||||||
Cumulative translation adjustment | (4,142 | ) | |||||||||||||||||||||||||||
Balance at January 31, 2015 | $ | 41,008 | |||||||||||||||||||||||||||
Schedule of Intangible Assets | Intangible assets, net, consisted of the following at January 31, 2015 and 2014: | ||||||||||||||||||||||||||||
January 31, 2015 | January 31, 2014 | ||||||||||||||||||||||||||||
Weighted average | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||
remaining life | Amortization | Amortization | |||||||||||||||||||||||||||
(Years) | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||
Customer contracts | 6 | $ | 30,397 | $ | (24,160 | ) | $ | 6,237 | $ | 32,593 | $ | (22,344 | ) | $ | 10,249 | ||||||||||||||
Non-compete agreements | — | 2,433 | (2,433 | ) | — | 2,772 | (2,632 | ) | 140 | ||||||||||||||||||||
Completed technology | 5.2 | 10,307 | (9,230 | ) | 1,077 | 11,461 | (9,195 | ) | 2,266 | ||||||||||||||||||||
Trademarks, patents and other | — | 7,082 | (7,082 | ) | — | 7,151 | (7,151 | ) | — | ||||||||||||||||||||
Total finite-lived intangible assets | $ | 50,219 | $ | (42,905 | ) | $ | 7,314 | $ | 53,977 | $ | (41,322 | ) | $ | 12,655 | |||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||
Trade names | — | — | — | — | 200 | — | 200 | ||||||||||||||||||||||
Total intangible assets | $ | 50,219 | $ | (42,905 | ) | $ | 7,314 | $ | 54,177 | $ | (41,322 | ) | $ | 12,855 | |||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The total amortization expense for each of the next five fiscal years is as follows (amounts in thousands): | ||||||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | Estimated | ||||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||||||
2016 | $ | 3,076 | |||||||||||||||||||||||||||
2017 | 2,195 | ||||||||||||||||||||||||||||
2018 | 1,272 | ||||||||||||||||||||||||||||
2019 | 649 | ||||||||||||||||||||||||||||
2020 | 121 | ||||||||||||||||||||||||||||
Fiscal 2021 and thereafter | 1 | ||||||||||||||||||||||||||||
Total Future Amortization | $ | 7,314 | |||||||||||||||||||||||||||
Severance_and_Other_Restructur1
Severance and Other Restructuring Costs (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Restructuring and Related Activities [Abstract] | |||||
Change in Severance Liability | The following table shows the change in balances of our accrued severance reported as a component of other accrued expenses on the consolidated balance sheets (amounts in thousands): | ||||
Accrual balance as of January 31, 2014 | $ | 229 | |||
Restructuring charges incurred | 3,623 | ||||
Severance costs paid | (1,605 | ) | |||
Other charges | (226 | ) | |||
Accrual balance as of January 31, 2015 | $ | 2,021 | |||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future commitments under minimum lease payments as of January 31, 2015 are as follows (amounts in thousands): | ||||
For the Fiscal Years Ended January 31, | Operating | ||||
Leases | |||||
2016 | $ | 2,261 | |||
2017 | 1,680 | ||||
2018 | 477 | ||||
2019 | 30 | ||||
2020 | — | ||||
2021 and thereafter | — | ||||
Minimum operating lease payments | $ | 4,448 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Effect of Recording Stock Based Compensation | The effect of recording stock-based compensation was as follows: | ||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||
Stock-based compensation expense by type of award: | |||||||||||||||||||||||||
Stock options | $ | 1,036 | $ | 453 | $ | 3,586 | |||||||||||||||||||
Restricted stock units | 1,607 | 1,907 | 2,218 | ||||||||||||||||||||||
Deferred stock units | 500 | — | — | ||||||||||||||||||||||
Performance-based restricted stock units | 77 | 599 | 125 | ||||||||||||||||||||||
Total stock-based compensation | $ | 3,220 | $ | 2,959 | $ | 5,929 | |||||||||||||||||||
Fair Value of Stock Options Granted | The fair value of stock options granted was estimated at the date of grant using the following assumptions: | ||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Expected term (in years) | 6.5 | 7-May | 7-Mar | ||||||||||||||||||||||
Expected volatility (range) | 46% | 44-46% | 49-52% | ||||||||||||||||||||||
Weighted average volatility | 46% | 45% | 52% | ||||||||||||||||||||||
Risk-free interest rate | 1.70% | 0.7-0.9% | 0.7-1.2% | ||||||||||||||||||||||
Weighted average interest rate | 1.70% | 0.80% | 1.20% | ||||||||||||||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||||||||||||||
Stock Option Activity | The following table summarizes the stock option activity (excluding RSUs and DSUs): | ||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||
average | average | average | |||||||||||||||||||||||
exercise | exercise | exercise | |||||||||||||||||||||||
price | price | price | |||||||||||||||||||||||
Outstanding at beginning of period | 1,502,176 | $ | 9.77 | 1,917,448 | $ | 10.35 | 2,125,371 | $ | 11.83 | ||||||||||||||||
Granted | 500,000 | $ | 7.23 | 12,500 | $ | 10.1 | 892,500 | $ | 8.21 | ||||||||||||||||
Exercised | — | $ | — | (118,528 | ) | $ | 9.1 | (304,550 | ) | $ | 7.19 | ||||||||||||||
Forfeited/expired/cancelled | (375,755 | ) | $ | 15.06 | (309,244 | ) | $ | 13.78 | (795,873 | ) | $ | 13.11 | |||||||||||||
Outstanding at end of period | 1,626,421 | $ | 7.77 | 1,502,176 | $ | 9.77 | 1,917,448 | $ | 10.35 | ||||||||||||||||
Options exercisable at end of period | 1,108,115 | $ | 8.02 | 1,440,521 | $ | 9.9 | 937,444 | $ | 12.78 | ||||||||||||||||
Weighted average remaining contractual term (in years) | 4.72 | 3.93 | 1.86 | ||||||||||||||||||||||
Summary of Information about Employee and Director Stock Options Outstanding and Exercisable | The following table summarizes information about employee and director stock options outstanding and exercisable as of January 31, 2015: | ||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||||
outstanding | average | average | exercisable | average | |||||||||||||||||||||
remaining | exercise | exercise | |||||||||||||||||||||||
contractual | price | price | |||||||||||||||||||||||
terms | |||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||
Range of exercise prices | |||||||||||||||||||||||||
$6.74 to $6.74 | 224,421 | 3.96 | $ | 6.74 | 207,781 | $ | 6.74 | ||||||||||||||||||
$7.00 to $7.48 | 501,000 | 6.1 | $ | 7.23 | 1,000 | $ | 7 | ||||||||||||||||||
$7.49 to $7.49 | 1,000 | 0.35 | $ | 7.49 | 1,000 | $ | 7.49 | ||||||||||||||||||
$7.72 to $7.72 | 4,500 | 0.44 | $ | 7.72 | 4,500 | $ | 7.72 | ||||||||||||||||||
$8.15 to $8.15 | 5,000 | 4.42 | $ | 8.15 | 3,334 | $ | 8.15 | ||||||||||||||||||
$8.22 to $8.22 | 875,000 | 4.24 | $ | 8.22 | 875,000 | $ | 8.22 | ||||||||||||||||||
$11.56 to $11.56 | 2,000 | 0.19 | $ | 11.56 | 2,000 | $ | 11.56 | ||||||||||||||||||
$12.95 to $12.95 | 2,000 | 0.17 | $ | 12.95 | 2,000 | $ | 12.95 | ||||||||||||||||||
$13.66 to $13.66 | 6,500 | 0.09 | $ | 13.66 | 6,500 | $ | 13.66 | ||||||||||||||||||
$16.56 to $16.56 | 5,000 | 0.01 | $ | 16.56 | 5,000 | $ | 16.56 | ||||||||||||||||||
1,626,421 | 4.72 | $ | 7.77 | 1,108,115 | $ | 8.02 | |||||||||||||||||||
Summary of RSU and DSU Activity | The following table summarizes the RSU and DSU activity: | ||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||
average | average | average | |||||||||||||||||||||||
grant date | grant date | grant date | |||||||||||||||||||||||
fair value | fair value | fair value | |||||||||||||||||||||||
Nonvested at beginning of period | 446,468 | $ | 9.81 | 552,980 | $ | 10.51 | 721,365 | $ | 10.46 | ||||||||||||||||
Awarded | 314,057 | $ | 8.6 | 146,411 | $ | 11.15 | 375,317 | $ | 8.62 | ||||||||||||||||
Vested | (287,485 | ) | $ | 9.83 | (205,928 | ) | $ | 12.61 | (348,346 | ) | $ | 8.73 | |||||||||||||
Forfeited/expired/cancelled | (37,734 | ) | $ | 10.01 | (46,995 | ) | $ | 9.93 | (195,356 | ) | $ | 9.87 | |||||||||||||
Nonvested at end of period | 435,306 | $ | 8.91 | 446,468 | $ | 9.81 | 552,980 | $ | 10.51 | ||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following: | ||||||||||||
Foreign | Changes in | Accumulated | |||||||||||
Currency | Fair Value of | Other | |||||||||||
Translation | Available- | Comprehensive | |||||||||||
Adjustment | for-Sale | Loss | |||||||||||
Investments | |||||||||||||
Balance at January 31, 2013 | $ | (1,856 | ) | $ | 30 | $ | (1,826 | ) | |||||
Other comprehensive loss | (294 | ) | (12 | ) | (306 | ) | |||||||
Balance at January 31, 2014 | (2,150 | ) | 18 | (2,132 | ) | ||||||||
Other comprehensive loss | (3,647 | ) | 25 | (3,622 | ) | ||||||||
Balance at January 31, 2015 | $ | (5,797 | ) | $ | 43 | $ | (5,754 | ) | |||||
Segment_Information_Significan1
Segment Information, Significant Customers and Geographic Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | The following table summarizes revenues by significant customers where such revenue exceeded 10% of total revenues for the indicated period: | ||||||||||||||||||||||||
For Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Customer A | 17 | % | 15 | % | 18 | % | |||||||||||||||||||
Customer B | 15 | % | 24 | % | 21 | % | |||||||||||||||||||
Customer C | N/A | 10 | % | N/A | |||||||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following summarizes revenues by customers’ geographic locations: | ||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||||||
(Amounts in thousands, except percentages) | |||||||||||||||||||||||||
Revenues by customers’ geographic locations: | |||||||||||||||||||||||||
North America(1) | $ | 64,755 | 56 | % | $ | 77,105 | 53 | % | $ | 94,155 | 60 | % | |||||||||||||
Europe and Middle East | 39,387 | 34 | % | 53,105 | 36 | % | 49,824 | 32 | % | ||||||||||||||||
Latin America | 6,829 | 6 | % | 13,156 | 9 | % | 11,777 | 7 | % | ||||||||||||||||
Asia Pacific | 4,464 | 4 | % | 2,953 | 2 | % | 1,432 | 1 | % | ||||||||||||||||
Total revenues | $ | 115,435 | $ | 146,319 | $ | 157,188 | |||||||||||||||||||
-1 | Includes total revenues for the United States for the periods shown as follows: | ||||||||||||||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||
U.S. Revenue | $ | 59,819 | $ | 66,903 | $ | 85,256 | |||||||||||||||||||
% of total revenue | 51.8 | % | 45.7 | % | 54.2 | % | |||||||||||||||||||
Long-Lived Assets by Geographic Locations | The following summarizes long-lived assets by geographic locations: | ||||||||||||||||||||||||
January 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Amount | % | Amount | % | ||||||||||||||||||||||
(Amounts in thousands, except percentages) | |||||||||||||||||||||||||
Long-lived assets by geographic locations(1): | |||||||||||||||||||||||||
North America | $ | 21,214 | 74 | % | $ | 20,714 | 62 | % | |||||||||||||||||
Europe and Middle East | 6,028 | 22 | % | 11,097 | 33 | % | |||||||||||||||||||
Asia Pacific | 1,260 | 4 | % | 1,461 | 5 | % | |||||||||||||||||||
Total long-lived assets by geographic location | $ | 28,502 | $ | 33,272 | |||||||||||||||||||||
-1 | Excludes marketable securities, long-term and goodwill. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Loss from Continuing Operations before Income Taxes | The components of loss from continuing operations before income taxes are as follows: | ||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(Amounts in thousands) | |||||||||||||
Domestic | $ | (25,920 | ) | $ | (15,049 | ) | $ | (15,680 | ) | ||||
Foreign | (2,694 | ) | 12,833 | 11,133 | |||||||||
$ | (28,614 | ) | $ | (2,216 | ) | $ | (4,547 | ) | |||||
Components of Income Tax (Benefit) Provision from Continuing Operations | The components of the income tax (benefit) provision from continuing operations are as follows: | ||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(Amounts in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | 11 | $ | — | |||||||
State | (762 | ) | 50 | 231 | |||||||||
Foreign | 24 | 692 | (1,305 | ) | |||||||||
Total | (738 | ) | 753 | (1,074 | ) | ||||||||
Deferred: | |||||||||||||
Federal | — | — | — | ||||||||||
State | — | — | (348 | ) | |||||||||
Foreign | (368 | ) | (698 | ) | (133 | ) | |||||||
Total | (368 | ) | (698 | ) | (481 | ) | |||||||
Income tax (benefit) provision | $ | (1,106 | ) | $ | 55 | $ | (1,555 | ) | |||||
Income Tax (Benefit) Provision for Continuing Operations Computed Using Federal Statutory Income Tax Rate | The income tax (benefit) provision for continuing operations computed using the federal statutory income tax rate differs from our effective tax rate primarily due to the following: | ||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(Amounts in thousands) | |||||||||||||
Statutory U.S. federal tax rate | $ | (10,014 | ) | $ | (774 | ) | $ | (952 | ) | ||||
State taxes, net of federal tax benefit | (779 | ) | 33 | 81 | |||||||||
Income (losses) not benefitted | 8,913 | 92 | (1,068 | ) | |||||||||
Non-deductible stock compensation expense | — | 15 | 142 | ||||||||||
Other(1) | (74 | ) | 694 | 858 | |||||||||
Innovation box | (68 | ) | 260 | (779 | ) | ||||||||
Foreign tax rate differential | 916 | (265 | ) | 163 | |||||||||
$ | (1,106 | ) | $ | 55 | $ | (1,555 | ) | ||||||
-1 | Within the other line item in the table above, other non-deductible expenses were not material in fiscal 2015 and were $0.3 million and $1.1 million for the fiscal years ended January 31, 2014 and 2013, respectively. These expenses have been aggregated with various adjustments related to differences in prior year U.S. and foreign tax provisions and the actual returns filed. | ||||||||||||
Components of Deferred Income Taxes | The components of deferred income taxes are as follows: | ||||||||||||
January 31, | |||||||||||||
2015 | 2014 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Accruals and reserves | $ | 1,783 | $ | 2,009 | |||||||||
Deferred revenue | 761 | 1,881 | |||||||||||
Stock-based compensation expense | 3,005 | 2,775 | |||||||||||
U.S. federal, state and foreign tax credits | 7,670 | 6,616 | |||||||||||
Loss carryforwards | 18,298 | 9,071 | |||||||||||
Deferred tax assets | 31,517 | 22,352 | |||||||||||
Less: Valuation allowance | (30,369 | ) | (20,789 | ) | |||||||||
Net deferred tax assets | 1,148 | 1,563 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | 1,267 | 2,823 | |||||||||||
Other | 74 | 74 | |||||||||||
Property and equipment | 869 | 283 | |||||||||||
Total net deferred tax liabilities | $ | (1,062 | ) | $ | (1,617 | ) | |||||||
Reconciliation of Beginning and Ending Balance of Total Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of the total amounts of gross unrecognized tax benefits is as follows: | ||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | ||||||||||||
(Amounts in thousands) | |||||||||||||
Balance of gross unrecognized tax benefits, beginning of period | $ | 6,035 | $ | 9,364 | |||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 96 | 445 | |||||||||||
Decrease due to expiration of statute of limitation | (275 | ) | (439 | ) | |||||||||
Gross decrease in prior period positions | — | (3,379 | ) | ||||||||||
Effect of currency translation | (329 | ) | 44 | ||||||||||
Balance of gross unrecognized tax benefits, end of period | $ | 5,527 | $ | 6,035 | |||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth our computation of basic and diluted net loss per common share (amounts in thousands, except per share data): | ||||||||||||
For the Fiscal Years Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net loss from continuing operations | $ | (27,489 | ) | $ | (2,227 | ) | $ | (2,799 | ) | ||||
Net income (loss) from discontinued operations | 5 | (803 | ) | (16,366 | ) | ||||||||
Net loss | $ | (27,484 | ) | $ | (3,030 | ) | $ | (19,165 | ) | ||||
Weighted average shares used in computing net loss per share—basic | 32,772 | 32,718 | 32,494 | ||||||||||
Effect of dilutive shares: | |||||||||||||
Stock options | — | — | — | ||||||||||
Restricted stock units | — | — | — | ||||||||||
Deferred stock units | |||||||||||||
Dilutive potential common shares | — | — | — | ||||||||||
Weighted average shares used in computing net loss per share—diluted | 32,772 | 32,718 | 32,494 | ||||||||||
Net loss per share—basic: | |||||||||||||
Loss from continuing operations | $ | (0.84 | ) | $ | (0.07 | ) | $ | (0.09 | ) | ||||
Loss income from discontinued operations | 0 | (0.02 | ) | (0.50 | ) | ||||||||
Net loss per share—basic | $ | (0.84 | ) | $ | (0.09 | ) | $ | (0.59 | ) | ||||
Net loss per share—diluted: | |||||||||||||
Loss from continuing operations | $ | (0.84 | ) | $ | (0.07 | ) | $ | (0.09 | ) | ||||
Loss from discontinued operations | 0 | (0.02 | ) | (0.50 | ) | ||||||||
Net loss per share—diluted | $ | (0.84 | ) | $ | (0.09 | ) | $ | (0.59 | ) | ||||
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The number of common shares used in the computation of diluted net loss per share for the periods presented does not include the effect of the following potentially outstanding common shares because the effect would have been anti-dilutive (amounts in thousands): | ||||||||||||
For the Fiscal Year Ended January 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Stock options | 1,586 | 913 | 1,707 | ||||||||||
Restricted stock units | 217 | 473 | 529 | ||||||||||
Deferred stock units | 11 | — | — | ||||||||||
Total | 1,814 | 1,386 | 2,236 | ||||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations-Unaudited (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations | The following table sets forth certain unaudited quarterly results of operations for fiscal 2015 and fiscal 2014. In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly the quarterly information when read in conjunction with the audited consolidated financial statements and notes thereto included elsewhere in this Form 10-K. The quarterly operating results are not necessarily indicative of future results of operations. | ||||||||||||||||
Fiscal Year Ended January 31, 2015 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
(Amounts in thousands, except per share data) | |||||||||||||||||
Revenue | $ | 24,337 | $ | 29,849 | $ | 29,970 | $ | 31,279 | |||||||||
Gross profit | 10,891 | 15,387 | 14,793 | 16,036 | |||||||||||||
Operating expenses | 21,026 | 20,574 | 20,660 | 21,300 | |||||||||||||
Net loss from continuing operations | (9,467 | ) | (5,687 | ) | (6,195 | ) | (6,140 | ) | |||||||||
Net income (loss) from discontinued operations (1) | — | 119 | (114 | ) | — | ||||||||||||
Net loss | (9,467 | ) | (5,568 | ) | (6,309 | ) | (6,140 | ) | |||||||||
Net loss per share from continuing operations (2): | |||||||||||||||||
Basic loss per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.19 | ) | |||||
Diluted loss per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.19 | ) | |||||
Income (loss) per share from discontinued operations (2): | |||||||||||||||||
Basic income (loss) per share | $ | — | $ | 0 | $ | (0.00 | ) | $ | — | ||||||||
Diluted income (loss) per share | $ | — | $ | 0 | $ | (0.00 | ) | $ | — | ||||||||
Loss per share (2): | |||||||||||||||||
Basic loss per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.19 | ) | |||||
Diluted loss per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.19 | ) | |||||
Fiscal Year Ended January 31, 2014 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
(Amounts in thousands, except per share data) | |||||||||||||||||
Revenue | $ | 35,552 | $ | 37,380 | $ | 37,771 | $ | 35,616 | |||||||||
Gross profit | 19,084 | 21,362 | 20,888 | 17,865 | |||||||||||||
Operating expenses | 20,900 | 20,827 | 20,359 | 18,742 | |||||||||||||
Net (loss) income from continuing operations | (2,020 | ) | 343 | 798 | (1,348 | ) | |||||||||||
Net income (loss) from discontinued operations (1) | 35 | (558 | ) | (221 | ) | (59 | ) | ||||||||||
Net (loss) income | (1,985 | ) | (215 | ) | 577 | (1,407 | ) | ||||||||||
Net (loss) income per share from continuing operations (2): | |||||||||||||||||
Basic (loss) income per share | $ | (0.06 | ) | $ | 0.01 | $ | 0.02 | $ | (0.04 | ) | |||||||
Diluted (loss) income per share | $ | (0.06 | ) | $ | 0.01 | $ | 0.02 | $ | (0.04 | ) | |||||||
Income (loss) per share from discontinued operations (2): | |||||||||||||||||
Basic income (loss) per share | $ | 0 | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||
Diluted income (loss) per share | $ | 0 | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||
(Loss) income per share (2): | |||||||||||||||||
Basic (loss) income per share | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.02 | $ | (0.04 | ) | ||||||
Diluted (loss) income per share | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.02 | $ | (0.04 | ) | ||||||
-1 | In May 2012, we completed the sale of our broadcast servers and storage business and our media services business. As a result, both businesses have been reported as discontinued operations in our consolidated financial statements. | ||||||||||||||||
-2 | The sum of per share data may not agree to annual amounts due to rounding. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Significant Accounting Policies [Line Items] | |||
Allowance for doubtful accounts receivable | $400,000 | $327,000 | |
Provision for obsolescence | 100,000 | 100,000 | 300,000 |
Foreign currency transaction gain (loss), realized | 2,300,000 | 400,000 | 23,000 |
Comprehensive loss | -31,106,000 | -3,336,000 | -11,217,000 |
Minimum period warranty of product | 1 year | ||
Advertising expense | $100,000 | $100,000 | $200,000 |
Accounts Receivable [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of customers accounted | 2 | 1 | |
Total Revenue [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of customers accounted | 2 | 3 | 2 |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Support agreements | 12 months | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Support agreements | 36 months |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) | 12 Months Ended |
Jan. 31, 2015 | |
Customer Contracts [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 6 years |
Completed Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 5 years 2 months 12 days |
Trademarks, Patents and Other [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 5 years |
Minimum [Member] | Customer Contracts [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 1 year |
Minimum [Member] | Non-Compete Agreements [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 2 years |
Minimum [Member] | Completed Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 4 years |
Maximum [Member] | Customer Contracts [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 8 years |
Maximum [Member] | Non-Compete Agreements [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 3 years |
Maximum [Member] | Completed Technology [Member] | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |
Intangible assets with finite useful lives | 6 years |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2013 | 4-May-12 | Mar. 31, 2013 | Apr. 30, 2012 | 21-May-12 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Income (loss) from discontinued operations, after tax | ($14,073,000) | |||||
Goodwill, impairment loss | 0 | |||||
Servers and Storage [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net cash received from sale of business | 4,900,000 | |||||
Income (loss) from discontinued operations, after tax | 1,500,000 | |||||
Media Services [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net cash received from sale of business | 27,000,000 | |||||
Income (loss) from discontinued operations, after tax | -15,500,000 | |||||
Goodwill, impairment loss | $17,000,000 |
Discontinued_Operations_Summar
Discontinued Operations - Summary of Selected Financial Information of Business Units (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Revenues: | |||
Total revenues | $46 | $11,181 | |
Income (loss) from discontinued operations: | |||
Loss from discontinued operations, before tax | -803 | -2,048 | |
Income tax provision (benefit) | 71 | ||
Income in investment in affiliates | -174 | ||
Loss from discontinued operations, after tax | 5 | -803 | -2,293 |
Products [Member] | |||
Revenues: | |||
Total revenues | 46 | 1,031 | |
Services [Member] | |||
Revenues: | |||
Total revenues | 10,150 | ||
Servers and Storage [Member] | |||
Revenues: | |||
Total revenues | 46 | 1,866 | |
Income (loss) from discontinued operations: | |||
Loss from discontinued operations, before tax | -803 | -1,854 | |
Income tax provision (benefit) | 84 | ||
Loss from discontinued operations, after tax | -803 | -1,938 | |
Servers and Storage [Member] | Products [Member] | |||
Revenues: | |||
Total revenues | 46 | 1,031 | |
Servers and Storage [Member] | Services [Member] | |||
Revenues: | |||
Total revenues | 835 | ||
Media Services [Member] | |||
Revenues: | |||
Total revenues | 9,315 | ||
Income (loss) from discontinued operations: | |||
Loss from discontinued operations, before tax | -194 | ||
Income tax provision (benefit) | -13 | ||
Income in investment in affiliates | -174 | ||
Loss from discontinued operations, after tax | -355 | ||
Media Services [Member] | Services [Member] | |||
Revenues: | |||
Total revenues | $9,315 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | $7,516 | $5,555 |
Non-current marketable securities: | ||
Marketable securities, long-term | 6,793 | 6,814 |
Total | 15,884 | 15,832 |
U.S. Treasury Notes and Bonds Conventional [Member] | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | 1,501 | 3,545 |
Non-current marketable securities: | ||
Marketable securities, long-term | 4,286 | |
U.S. Government Agency Issues Short Term [Member] | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | 6,015 | 2,010 |
U.S. Government Agency Issues Long Term [Member] | ||
Non-current marketable securities: | ||
Marketable securities, long-term | 2,507 | 6,814 |
Money Market Accounts [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 1,575 | 3,463 |
Fair Value, Inputs, Level 1 [Member] | ||
Non-current marketable securities: | ||
Total | 7,362 | 7,008 |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Notes and Bonds Conventional [Member] | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | 1,501 | 3,545 |
Non-current marketable securities: | ||
Marketable securities, long-term | 4,286 | |
Fair Value, Inputs, Level 1 [Member] | Money Market Accounts [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 1,575 | 3,463 |
Fair Value, Inputs, Level 2 [Member] | ||
Non-current marketable securities: | ||
Total | 8,522 | 8,824 |
Fair Value, Inputs, Level 2 [Member] | U.S. Government Agency Issues Short Term [Member] | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | 6,015 | 2,010 |
Fair Value, Inputs, Level 2 [Member] | U.S. Government Agency Issues Long Term [Member] | ||
Non-current marketable securities: | ||
Marketable securities, long-term | $2,507 | $6,814 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Fair Value Disclosures [Abstract] | |||
Maximum maturity of marketable securities | Three months or less | ||
Other than temporary declines in investments | $0 | $0 | $0 |
Escrow agreement fund | 2,500,000 | ||
Escrow reserve | 1,100,000 | ||
Acquisition date | 2-Feb-15 | ||
Cash equivalents and marketable securities | $105,400,000 | $128,100,000 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Available-for-Sale Securities (Detail) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | $104,285 | $128,085 |
Gross Unrealized Gains | 43 | 18 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 104,328 | 128,103 |
Cash [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 88,444 | 112,271 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 88,444 | 112,271 |
Cash Equivalents [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 1,575 | 3,463 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,575 | 3,463 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 90,019 | 115,734 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 90,019 | 115,734 |
U.S. Treasury Notes and Bonds - Short Term [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 1,500 | 3,540 |
Gross Unrealized Gains | 1 | 5 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,501 | 3,545 |
U.S. Treasury Notes and Bonds - Long Term [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 4,268 | |
Gross Unrealized Gains | 18 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 4,286 | |
U.S. Government Agency Issues Short Term [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 6,008 | 2,005 |
Gross Unrealized Gains | 7 | 5 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 6,015 | 2,010 |
U.S. Government Agency Issues Long Term [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 2,490 | 6,806 |
Gross Unrealized Gains | 17 | 8 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $2,507 | $6,814 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Contractual Maturities Available-for-Sale Debt Securities (Detail) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Fair Value Disclosures [Abstract] | |
Maturity of one year or less | $7,516 |
Maturity between one and five years | 6,793 |
Total | $14,309 |
Consolidated_Balance_Sheet_Det2
Consolidated Balance Sheet Detail - Schedule of Inventories (Detail) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Components and assemblies | $1,487 | $2,201 |
Finished products | 1,377 | 4,431 |
Total inventories | $2,864 | $6,632 |
Consolidated_Balance_Sheet_Det3
Consolidated Balance Sheet Detail - Property and Equipment, Net (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $35,880 | $35,728 |
Less-Accumulated depreciation and amortization | -20,011 | -17,198 |
Total property and equipment, net | 15,869 | 18,530 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,880 | 2,880 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 20 | |
Property, Plant and Equipment, Gross | 12,146 | 12,081 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 5 | |
Property, Plant and Equipment, Gross | 1,023 | 998 |
Computer Equipment, Software and Demonstration Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 3 | |
Property, Plant and Equipment, Gross | 17,584 | 17,466 |
Service and Spare Components [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 5 | |
Property, Plant and Equipment, Gross | 1,158 | 1,158 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $1,089 | $1,145 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 1 | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 7 |
Consolidated_Balance_Sheet_Det4
Consolidated Balance Sheet Detail - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation and amortization expense | $3.70 | $4.40 | $4.70 |
Consolidated_Balance_Sheet_Det5
Consolidated Balance Sheet Detail - Other Accrued Expenses (Detail) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and commissions | $1,518 | $2,290 |
Accrued bonuses | 2,186 | 2,095 |
Accrued severance | 2,021 | 229 |
Employee benefits | 1,959 | 2,113 |
Accrued other | 4,823 | 5,605 |
Total other accrued expenses | $12,507 | $12,332 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $41,008,000 | $45,150,000 | $45,103,000 |
Goodwill, Impairment charges | 0 | ||
Amortization of intangible assets | $5,200,000 | $4,600,000 | $6,400,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Change in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $45,150 | $45,103 |
Cumulative translation adjustment | -4,142 | 47 |
Goodwill, Ending balance | $41,008 | $45,150 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | $50,219 | $53,977 |
Accumulated Amortization | -42,905 | -41,322 |
Finite-lived intangible assets, Net | 7,314 | 12,655 |
Total intangible assets, Gross | 50,219 | 54,177 |
Accumulated Amortization | -42,905 | -41,322 |
Total intangible assets, net | 7,314 | 12,855 |
Customer Contracts [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted average remaining life (years) | 6 years | |
Finite-lived intangible assets, Gross | 30,397 | 32,593 |
Accumulated Amortization | -24,160 | -22,344 |
Finite-lived intangible assets, Net | 6,237 | 10,249 |
Non-Compete Agreements [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross | 2,433 | 2,772 |
Accumulated Amortization | -2,433 | -2,632 |
Finite-lived intangible assets, Net | 140 | |
Completed Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted average remaining life (years) | 5 years 2 months 12 days | |
Finite-lived intangible assets, Gross | 10,307 | 11,461 |
Accumulated Amortization | -9,230 | -9,195 |
Finite-lived intangible assets, Net | 1,077 | 2,266 |
Trademarks, Patents and Other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted average remaining life (years) | 5 years | |
Finite-lived intangible assets, Gross | 7,082 | 7,151 |
Accumulated Amortization | -7,082 | -7,151 |
Trade Names [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Weighted average remaining life (years) | - | |
Indefinite-lived intangible assets, Gross | 200 | |
Accumulated Amortization | 0 | 0 |
Indefinite-lived intangible assets, Net | $200 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Detail) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 | $3,076 | |
2017 | 2,195 | |
2018 | 1,272 | |
2019 | 649 | |
2020 | 121 | |
Fiscal 2021 and thereafter | 1 | |
Finite-lived intangible assets, Net | $7,314 | $12,655 |
Severance_and_Other_Restructur2
Severance and Other Restructuring Costs - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $3,623,000 | $911,000 | $3,106,000 |
Severance costs | 3,400,000 | ||
Other restructuring charges, (primarily due to the write off of leasehold improvements) | $200,000 |
Severance_and_Other_Restructur3
Severance and Other Restructuring Costs - Change in Severance Liability (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Restructuring and Related Activities [Abstract] | |||
Accrual balance at the beginning of the period | $229 | ||
Restructuring charges incurred | 3,623 | 911 | 3,106 |
Severance costs paid | -1,605 | ||
Other charges | -226 | ||
Accrual balance at the ending of the period | $2,021 | $229 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | Nov. 26, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Demand notes payable | $20 | |||
Operating leases, rent expense | $2.90 | $2.40 | $2.70 | |
Operating lease expiration year | 2019 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Payment (Detail) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $2,261 |
2017 | 1,680 |
2018 | 477 |
2019 | 30 |
2020 | 0 |
2021 and thereafter | 0 |
Minimum operating lease payments | $4,448 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||
31-May-14 | Sep. 04, 2013 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 20, 2014 | Jul. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred stock, shares authorized | 5,000,000 | ||||||
Preferred stock, shares issued | 0 | ||||||
Stock repurchase program, authorized amount | $40,000,000 | $25,000,000 | |||||
Termination date of repurchase program | 30-Apr-15 | 31-Jan-15 | |||||
Stock repurchased during period, Shares | 591,520 | ||||||
Common stock average price | $9.31 | ||||||
Repurchases of our common stock | -5,504,000 | -6,200,000 | |||||
Remaining shares available under authorized share repurchase | 34,500,000 | ||||||
Share-based compensation arrangement by share-based payment award, Description | Option awards may be granted to employees at an exercise price per share of not less than 100% of the fair market value per common share on the date of the grant. | ||||||
Share-based compensation arrangement by Share-based payment award, Option award vesting period | 3 years | ||||||
Share-based compensation arrangement by share based payment award, Option award expiration period | 10 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||||
Shares, Granted | 500,000 | 12,500 | 892,500 | ||||
Stock-based compensation expense | 3,220,000 | 2,959,000 | 5,929,000 | ||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $3.39 | $1.53 | $3.78 | ||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | 1,400,000 | ||||||
Share based compensation arrangement by share based payment award estimated weighted average amortization period | 1 year 7 months 6 days | ||||||
Aggregate intrinsic value for options outstanding | 100,000 | 4,500,000 | 1,400,000 | ||||
Aggregate intrinsic value of vested shares and share options expected to vest | 100,000 | 4,400,000 | 1,300,000 | ||||
Other options granted | 0 | ||||||
Share-based compensation arrangement by share-based payment award, options, exercises in period, total intrinsic value | 300,000 | 500,000 | |||||
Stock options exercised | 0 | 118,528 | 304,550 | ||||
Employee service share-based compensation, cash received from exercise of stock options | 1,100,000 | 2,200,000 | |||||
Restricted Stock Units and Deferred Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | 2,200,000 | ||||||
Share based compensation arrangement by share based payment award estimated weighted average amortization period | 2 years 3 months 18 days | ||||||
CEO [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares, Granted | 500,000 | ||||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | 1,700,000 | ||||||
Stock-based compensation expense | $300,000 | ||||||
Compensation and Incentive Plan 2011 [Member] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 5,300,000 | ||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 2,484,004 |
Stockholders_Equity_Effect_of_
Stockholders' Equity - Effect of Recording Stock-Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Stock-based compensation expense by type of award: | |||
Stock options | $1,036 | $453 | $3,586 |
Restricted stock units | 1,607 | 1,907 | 2,218 |
Deferred stock units | 500 | ||
Performance-based restricted stock units | 77 | 599 | 125 |
Total stock-based compensation | $3,220 | $2,959 | $5,929 |
Stockholders_Equity_Fair_Value
Stockholders' Equity - Fair Value of Stock Options Granted (Detail) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (range), Minimum | 46.00% | 44.00% | 49.00% |
Expected volatility (range), Maximum | 46.00% | 52.00% | |
Weighted average volatility | 46.00% | 45.00% | 52.00% |
Weighted average interest rate | 1.70% | 0.80% | 1.20% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 6 months | 5 years | 3 years |
Risk-free interest rate | 1.70% | 0.70% | 0.70% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 7 years | 7 years | |
Risk-free interest rate | 0.90% | 1.20% |
Stockholders_Equity_Stock_Opti
Stockholders' Equity - Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Equity [Abstract] | |||
Shares, Outstanding at beginning of period | 1,502,176 | 1,917,448 | 2,125,371 |
Shares, Granted | 500,000 | 12,500 | 892,500 |
Shares, Exercised | 0 | -118,528 | -304,550 |
Shares, Forfeited/expired/cancelled | -375,755 | -309,244 | -795,873 |
Shares, Outstanding at end of period | 1,626,421 | 1,502,176 | 1,917,448 |
Shares, Options exercisable at end of period | 1,108,115 | 1,440,521 | 937,444 |
Weighted average exercise price, Outstanding at beginning of period | $9.77 | $10.35 | $11.83 |
Weighted average exercise price, Granted | $7.23 | $10.10 | $8.21 |
Weighted average exercise price, Exercised | $9.10 | $7.19 | |
Weighted average exercise price, Forfeited/expired/cancelled | $15.06 | $13.78 | $13.11 |
Weighted average exercise price, Outstanding at end of period | $7.77 | $9.77 | $10.35 |
Weighted average exercise price, Options exercisable at end of period | $8.02 | $9.90 | $12.78 |
Weighted average exercise price, Weighted average remaining contractual term (in years) | 4 years 8 months 19 days | 3 years 11 months 5 days | 1 year 10 months 10 days |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Information about Employee and Director Stock Options Outstanding and Exercisable (Detail) (USD $) | 0 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Number outstanding | 1,626,421 | 1,626,421 |
Options Outstanding, Weighted average remaining contractual terms (years) | 4 years 8 months 19 days | |
Options Outstanding, Weighted average exercise price | $7.77 | $7.77 |
Options Exercisable, Number Exercisable | 1,108,115 | 1,108,115 |
Options Exercisable, Weighted average exercise price | $8.02 | $8.02 |
Exercise Price Range One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $6.74 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $6.74 | |
Options Outstanding, Number outstanding | 224,421 | 224,421 |
Options Outstanding, Weighted average remaining contractual terms (years) | 3 years 11 months 16 days | |
Options Outstanding, Weighted average exercise price | $6.74 | $6.74 |
Options Exercisable, Number Exercisable | 207,781 | 207,781 |
Options Exercisable, Weighted average exercise price | $6.74 | $6.74 |
Exercise Price Range Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $7 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $7.48 | |
Options Outstanding, Number outstanding | 501,000 | 501,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 6 years 1 month 6 days | |
Options Outstanding, Weighted average exercise price | $7.23 | $7.23 |
Options Exercisable, Number Exercisable | 1,000 | 1,000 |
Options Exercisable, Weighted average exercise price | $7 | $7 |
Exercise Price Range Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $7.49 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $7.49 | |
Options Outstanding, Number outstanding | 1,000 | 1,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 4 months 6 days | |
Options Outstanding, Weighted average exercise price | $7.49 | $7.49 |
Options Exercisable, Number Exercisable | 1,000 | 1,000 |
Options Exercisable, Weighted average exercise price | $7.49 | $7.49 |
Exercise Price Range Four [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $7.72 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $7.72 | |
Options Outstanding, Number outstanding | 4,500 | 4,500 |
Options Outstanding, Weighted average remaining contractual terms (years) | 5 months 9 days | |
Options Outstanding, Weighted average exercise price | $7.72 | $7.72 |
Options Exercisable, Number Exercisable | 4,500 | 4,500 |
Options Exercisable, Weighted average exercise price | $7.72 | $7.72 |
Exercise Price Range Five [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $8.15 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $8.15 | |
Options Outstanding, Number outstanding | 5,000 | 5,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 4 years 5 months 1 day | |
Options Outstanding, Weighted average exercise price | $8.15 | $8.15 |
Options Exercisable, Number Exercisable | 3,334 | 3,334 |
Options Exercisable, Weighted average exercise price | $8.15 | $8.15 |
Exercise Price Range Six [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $8.22 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $8.22 | |
Options Outstanding, Number outstanding | 875,000 | 875,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 4 years 2 months 27 days | |
Options Outstanding, Weighted average exercise price | $8.22 | $8.22 |
Options Exercisable, Number Exercisable | 875,000 | 875,000 |
Options Exercisable, Weighted average exercise price | $8.22 | $8.22 |
Exercise Price Range Seven [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $11.56 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $11.56 | |
Options Outstanding, Number outstanding | 2,000 | 2,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 2 months 9 days | |
Options Outstanding, Weighted average exercise price | $11.56 | $11.56 |
Options Exercisable, Number Exercisable | 2,000 | 2,000 |
Options Exercisable, Weighted average exercise price | $11.56 | $11.56 |
Exercise Price Range Eight [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $12.95 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $12.95 | |
Options Outstanding, Number outstanding | 2,000 | 2,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 2 months 1 day | |
Options Outstanding, Weighted average exercise price | $12.95 | $12.95 |
Options Exercisable, Number Exercisable | 2,000 | 2,000 |
Options Exercisable, Weighted average exercise price | $12.95 | $12.95 |
Exercise Price Range Nine [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $13.66 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $13.66 | |
Options Outstanding, Number outstanding | 6,500 | 6,500 |
Options Outstanding, Weighted average remaining contractual terms (years) | 1 month 2 days | |
Options Outstanding, Weighted average exercise price | $13.66 | $13.66 |
Options Exercisable, Number Exercisable | 6,500 | 6,500 |
Options Exercisable, Weighted average exercise price | $13.66 | $13.66 |
Exercise Price Range Ten [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Range of exercise prices, Lower Range Limit | $16.56 | |
Options Outstanding, Range of exercise prices, Upper Range Limit | $16.56 | |
Options Outstanding, Number outstanding | 5,000 | 5,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 4 days | |
Options Outstanding, Weighted average exercise price | $16.56 | $16.56 |
Options Exercisable, Number Exercisable | 5,000 | 5,000 |
Options Exercisable, Weighted average exercise price | $16.56 | $16.56 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of RSU and DSU Activity (Detail) (Restricted Stock Units and Deferred Stock Units [Member], USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Restricted Stock Units and Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested Shares at beginning of period | 446,468 | 552,980 | 721,365 |
Awarded Shares | 314,057 | 146,411 | 375,317 |
Vested Shares | -287,485 | -205,928 | -348,346 |
Forfeited/expired/cancelled Shares | -37,734 | -46,995 | -195,356 |
Nonvested Shares at end of period | 435,306 | 446,468 | 552,980 |
Nonvested Weighted average grant date fair value at beginning of period | $9.81 | $10.51 | $10.46 |
Awarded Weighted average grant date fair value | $8.60 | $11.15 | $8.62 |
Vested Weighted average grant date fair value | $9.83 | $12.61 | $8.73 |
Forfeited/expired/cancelled Weighted average grant date fair value | $10.01 | $9.93 | $9.87 |
Nonvested Weighted average grant date fair value at ending of period | $8.91 | $9.81 | $10.51 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | ($2,132) | ($1,826) |
Other comprehensive loss | -3,622 | -306 |
Ending balance | -5,754 | -2,132 |
Cumulative Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | -2,150 | -1,856 |
Other comprehensive loss | -3,647 | -294 |
Ending balance | -5,797 | -2,150 |
Unrealized Gain/Loss on Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 18 | 30 |
Other comprehensive loss | 25 | -12 |
Ending balance | $43 | $18 |
Segment_Information_Significan2
Segment Information, Significant Customers and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Jan. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Segment_Information_Significan3
Segment Information, Significant Customers and Geographic Information - Schedule of Revenue by Major Customers by Reporting Segments (Detail) (Customer Concentration Risk [Member], Total Revenue [Member]) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Customera [Member] | |||
Revenue, Major Customer [Line Items] | |||
% of total revenues | 17.00% | 15.00% | 18.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
% of total revenues | 15.00% | 24.00% | 21.00% |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
% of total revenues | 10.00% |
Segment_Information_Significan4
Segment Information, Significant Customers and Geographic Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Segment Reporting Information [Line Items] | |||
Total revenues | $115,435 | $146,319 | $157,188 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 64,755 | 77,105 | 94,155 |
Europe and Middle East [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 39,387 | 53,105 | 49,824 |
Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 6,829 | 13,156 | 11,777 |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $4,464 | $2,953 | $1,432 |
Total Revenue [Member] | Customer Concentration Risk [Member] | North America [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 56.00% | 53.00% | 60.00% |
Total Revenue [Member] | Customer Concentration Risk [Member] | Europe and Middle East [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 34.00% | 36.00% | 32.00% |
Total Revenue [Member] | Customer Concentration Risk [Member] | Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 6.00% | 9.00% | 7.00% |
Total Revenue [Member] | Customer Concentration Risk [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 4.00% | 2.00% | 1.00% |
Segment_Information_Significan5
Segment Information, Significant Customers and Geographic Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Segment Reporting Information [Line Items] | |||
Total revenues | $115,435 | $146,319 | $157,188 |
United States Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $59,819 | $66,903 | $85,256 |
Customer Concentration Risk [Member] | United States Revenue [Member] | Total Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenue | 51.80% | 45.70% | 54.20% |
Segment_Information_Significan6
Segment Information, Significant Customers and Geographic Information - Long-Lived Assets by Geographic Locations (Detail) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $28,502 | $33,272 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | 21,214 | 20,714 |
Long-lived assets, Percentage | 74.00% | 62.00% |
Europe and Middle East [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | 6,028 | 11,097 |
Long-lived assets, Percentage | 22.00% | 33.00% |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $1,260 | $1,461 |
Long-lived assets, Percentage | 4.00% | 5.00% |
Income_Taxes_Components_of_Los
Income Taxes - Components of Loss from Continuing Operations before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Income Tax Disclosure [Abstract] | |||
Domestic | ($25,920) | ($15,049) | ($15,680) |
Foreign | -2,694 | 12,833 | 11,133 |
Loss before income taxes and equity income in earnings of affiliates | ($28,614) | ($2,216) | ($4,547) |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax (Benefit) Provisions from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Current: | |||
Federal | $11 | ||
State | -762 | 50 | 231 |
Foreign | 24 | 692 | -1,305 |
Total | -738 | 753 | -1,074 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | -348 | ||
Foreign | -368 | -698 | -133 |
Total | -368 | -698 | -481 |
Income tax (benefit) provision | ($1,106) | $55 | ($1,555) |
Income_Taxes_Income_Tax_Benefi
Income Taxes - Income Tax (Benefit) Provision for Continuing Operations Computed Using Federal Statutory Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal tax rate | ($10,014) | ($774) | ($952) |
State taxes, net of federal tax benefit | -779 | 33 | 81 |
Income (losses) not benefited | 8,913 | 92 | -1,068 |
Non-deductible stock compensation expense | 15 | 142 | |
Other(1) | -74 | 694 | 858 |
Innovation box | -68 | 260 | -779 |
Foreign tax rate differential | 916 | -265 | 163 |
Income tax (benefit) provision | ($1,106) | $55 | ($1,555) |
Income_Taxes_Income_Tax_Benefi1
Income Taxes - Income Tax (Benefit) Provision for Continuing Operations Computed Using Federal Statutory Income Tax Rate (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Other non-deductible expenses | $0.30 | $1.10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Income Taxes Disclosure [Line Items] | |||
Effective tax rate (benefit)/provision | -4.00% | 3.00% | -34.00% |
Deferred tax assets, operating loss carry forwards, domestic | $37,100,000 | ||
Operating loss carry forwards, expiry beginning year | 2016 | ||
Deferred tax assets, operating loss carry forwards, state and local | 65,800,000 | ||
Deferred tax assets, operating loss carry forwards, foreign | 2,100,000 | ||
Deferred tax assets capital loss carry forwards, domestic | 10,800,000 | ||
Capital loss carry forwards expiration dates | 2018 | ||
Deferred tax assets, tax credit carry forwards, alternative minimum tax | 600,000 | ||
Deferred tax assets, tax credit carry forwards, foreign | 2,000,000 | ||
Valuation allowance | 30,369,000 | 20,789,000 | |
Valuation allowance increased | 9,600,000 | ||
Allocation of cumulative undistributed earnings of foreign subsidiaries, reinvestment | 83,700,000 | ||
Repatriated amount subject to US tax rate | 48,000,000 | ||
Incremental tax benefit | 500,000 | ||
Tax benefit recognized for the statute of limitations | 275,000 | 439,000 | |
Tax benefit recognized for the effect of foreign translation | 329,000 | -44,000 | |
Tax Expense due to increases in uncertain tax positions | 96,000 | 445,000 | |
Balance of gross unrecognized tax benefits, end of period | 5,527,000 | 6,035,000 | 9,364,000 |
State and Local Jurisdiction [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Deferred tax assets, tax credit carry forwards, research | 3,800,000 | ||
Deferred tax assets tax credit carry forward investment | 300,000 | ||
Deferred tax assets tax credit carry forward, expiration period | 2016 | ||
Domestic Tax Authority [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Deferred tax assets, tax credit carry forwards, research | $1,800,000 |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Income Taxes (Detail) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Accruals and reserves | $1,783 | $2,009 |
Deferred revenue | 761 | 1,881 |
Stock-based compensation expense | 3,005 | 2,775 |
U.S. federal, state and foreign tax credits | 7,670 | 6,616 |
Loss carryforwards | 18,298 | 9,071 |
Deferred tax assets | 31,517 | 22,352 |
Less: Valuation allowance | -30,369 | -20,789 |
Net deferred tax assets | 1,148 | 1,563 |
Deferred tax liabilities: | ||
Intangible assets | 1,267 | 2,823 |
Other | 74 | 74 |
Property and equipment | 869 | 283 |
Total net deferred tax liabilities | ($1,062) | ($1,617) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Beginning and Ending Balance of Total Amounts of Gross Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Balance of gross unrecognized tax benefits, beginning of period | $6,035 | $9,364 |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 96 | 445 |
Decrease due to expiration of statute of limitation | -275 | -439 |
Gross decrease in prior period positions | -3,379 | |
Effect of currency translation | -329 | 44 |
Balance of gross unrecognized tax benefits, end of period | $5,527 | $6,035 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Interest costs | $39,000 | $33,000 | |
Service cost | 200,000 | 200,000 | |
Actuarial loss | 400,000 | 0 | |
Unfunded projected benefit obligation | 1,200,000 | 700,000 | |
Benefit payments related to plan | 300,000 | ||
Benefit obligation, projected discount rate | 4.20% | 5.90% | |
Periodic benefit costs, projected discount rate | 4.20% | 5.90% | |
Benefit obligation, compensation increase rate | 7.00% | 7.00% | |
Periodic benefit costs, compensation increase rate | 7.00% | 7.00% | |
Periodic benefit costs | 500,000 | 200,000 | 200,000 |
Retirement Savings Plan [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Defined contribution plan, cost recognized | $1,700,000 | $1,700,000 | $1,400,000 |
Net_Loss_Per_Share_Schedule_of
Net Loss Per Share - Schedule of Earnings Per Share, Basic and Diluted (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net loss from continuing operations | ($27,489) | ($2,227) | ($2,799) | ||||||||
Net loss from discontinued operations | -114 | 119 | -59 | -221 | -558 | 35 | 5 | -803 | -16,366 | ||
Net loss | ($6,140) | ($6,309) | ($5,568) | ($9,467) | ($1,407) | $577 | ($215) | ($1,985) | ($27,484) | ($3,030) | ($19,165) |
Weighted average shares used in computing loss per share-basic | 32,772 | 32,718 | 32,494 | ||||||||
Effect of dilutive shares: | |||||||||||
Dilutive potential common shares | 0 | 0 | 0 | ||||||||
Weighted average shares used in computing loss per share-diluted | 32,772 | 32,718 | 32,494 | ||||||||
Net loss per share-basic: | |||||||||||
Loss from continuing operations | ($0.19) | ($0.19) | ($0.17) | ($0.29) | ($0.04) | $0.02 | $0.01 | ($0.06) | ($0.84) | ($0.07) | ($0.09) |
Loss income from discontinued operations | $0 | $0 | $0 | $0 | ($0.02) | $0 | $0 | ($0.02) | ($0.50) | ||
Net loss per share-basic | ($0.19) | ($0.19) | ($0.17) | ($0.29) | ($0.04) | $0.02 | ($0.01) | ($0.06) | ($0.84) | ($0.09) | ($0.59) |
Net loss per share-diluted: | |||||||||||
Loss from continuing operations | ($0.19) | ($0.19) | ($0.17) | ($0.29) | ($0.04) | $0.02 | $0.01 | ($0.06) | ($0.84) | ($0.07) | ($0.09) |
Loss from discontinued operations | $0 | $0 | $0 | $0 | ($0.02) | $0 | $0 | ($0.02) | ($0.50) | ||
Diluted loss per share | ($0.19) | ($0.19) | ($0.17) | ($0.29) | ($0.04) | $0.02 | ($0.01) | ($0.06) | ($0.84) | ($0.09) | ($0.59) |
Stock Options [Member] | |||||||||||
Effect of dilutive shares: | |||||||||||
Stock options, Restricted stock units and Deferred stock units | 0 | 0 | 0 | ||||||||
Restricted Stock Units [Member] | |||||||||||
Effect of dilutive shares: | |||||||||||
Stock options, Restricted stock units and Deferred stock units | 0 | 0 | 0 | ||||||||
Deferred Stock Units [Member] | |||||||||||
Effect of dilutive shares: | |||||||||||
Stock options, Restricted stock units and Deferred stock units | 0 | 0 | 0 |
Net_Loss_Per_Share_Schedule_of1
Net Loss Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 1,814 | 1,386 | 2,236 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 1,586 | 913 | 1,707 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 217 | 473 | 529 |
Deferred Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 11 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations-Unaudited - Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $31,279 | $29,970 | $29,849 | $24,337 | $35,616 | $37,771 | $37,380 | $35,552 | |||
Gross profit | 16,036 | 14,793 | 15,387 | 10,891 | 17,865 | 20,888 | 21,362 | 19,084 | 57,107 | 79,199 | 83,291 |
Operating expenses | 21,300 | 20,660 | 20,574 | 21,026 | 18,742 | 20,359 | 20,827 | 20,900 | 83,560 | 80,828 | 88,637 |
Net (loss) income from continuing operations | -6,140 | -6,195 | -5,687 | -9,467 | -1,348 | 798 | 343 | -2,020 | |||
Net income (loss) from discontinued operations | -114 | 119 | -59 | -221 | -558 | 35 | 5 | -803 | -16,366 | ||
Net loss | ($6,140) | ($6,309) | ($5,568) | ($9,467) | ($1,407) | $577 | ($215) | ($1,985) | ($27,484) | ($3,030) | ($19,165) |
Net (loss) income per share from continuing operations: | |||||||||||
Basic (loss) income per share | ($0.19) | ($0.19) | ($0.17) | ($0.29) | ($0.04) | $0.02 | $0.01 | ($0.06) | ($0.84) | ($0.07) | ($0.09) |
Diluted (loss) income per share | ($0.19) | ($0.19) | ($0.17) | ($0.29) | ($0.04) | $0.02 | $0.01 | ($0.06) | ($0.84) | ($0.07) | ($0.09) |
Income (loss) per share from discontinued operations: | |||||||||||
Basic income (loss) per share | $0 | $0 | $0 | $0 | ($0.02) | $0 | $0 | ($0.02) | ($0.50) | ||
Diluted income (loss) per share | $0 | $0 | $0 | $0 | ($0.02) | $0 | $0 | ($0.02) | ($0.50) | ||
(Loss) income per share | |||||||||||
Basic (loss) income per share | ($0.19) | ($0.19) | ($0.17) | ($0.29) | ($0.04) | $0.02 | ($0.01) | ($0.06) | ($0.84) | ($0.09) | ($0.59) |
Diluted (loss) income per share | ($0.19) | ($0.19) | ($0.17) | ($0.29) | ($0.04) | $0.02 | ($0.01) | ($0.06) | ($0.84) | ($0.09) | ($0.59) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event [Member], TLL [Member], USD $) | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Feb. 02, 2015 |
Subsequent Event [Line Items] | |
Business acquisition date of acquisition agreement | 22-Dec-14 |
Payments to acquire business | $12.60 |
Business acquisition equity interests issued or issuable number of shares issued | 344,055 |
Business acquisition equity interest issued or issuable value assigned | 1.9 |
Indemnification assets | 0.6 |
Cash [Member] | |
Subsequent Event [Line Items] | |
Indemnification assets | 1.4 |
Common Stock [Member] | |
Subsequent Event [Line Items] | |
Indemnification assets | 0.5 |
Business combination consideration transferred | 5.6 |
Earnout payments based on certain operating performance metrics | $2.50 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at end of period | $30,369 | $20,789 | |
Deferred Tax Assets Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 20,789 | 19,965 | 12,254 |
Additions, Charged to costs and expenses | 9,580 | 824 | 7,711 |
Balance at end of period | 30,369 | 20,789 | 19,965 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 327 | 946 | 1,127 |
Additions, Charged to costs and expenses | 80 | 286 | |
Additions, Charged to other accounts | 31 | 13 | |
Deductions and write-offs | -7 | -936 | -194 |
Balance at end of period | $400 | $327 | $946 |