Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Apr. 04, 2016 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SEAC | ||
Entity Registrant Name | SEACHANGE INTERNATIONAL INC | ||
Entity Central Index Key | 1,019,671 | ||
Current Fiscal Year End Date | --01-31 | ||
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 | 34,358,152 | ||
Entity Public Float | $ 216,979,487 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 58,733 | $ 90,019 |
Restricted cash | 82 | 1,073 |
Marketable securities | 1,504 | 7,516 |
Accounts and other receivables, net of allowance for doubtful accounts of $415 and $400 at January 31, 2016 and January 31, 2015, respectively | 26,331 | 24,962 |
Unbilled receivables | 10,680 | 6,588 |
Inventories, net | 1,682 | 2,864 |
Prepaid expenses and other current assets | 3,827 | 3,026 |
Total current assets | 102,839 | 136,048 |
Property and equipment, net | 14,129 | 15,869 |
Marketable securities, long-term | 10,764 | 6,793 |
Investments in affiliates | 2,500 | 3,051 |
Intangible assets, net | 4,126 | 7,314 |
Goodwill | 40,175 | 41,008 |
Other assets | 3,136 | 2,268 |
Total assets | 177,669 | 212,351 |
Current liabilities: | ||
Accounts payable | 6,132 | 5,129 |
Deferred stock consideration | 3,205 | |
Deferred revenues | 16,201 | 17,398 |
Other accrued expenses | 17,414 | 12,507 |
Total current liabilities | 42,952 | 35,034 |
Deferred revenues, long-term | 1,209 | 1,690 |
Taxes payable, long-term | 1,389 | 1,993 |
Deferred tax liabilities, long-term | 1,090 | |
Other liabilities, long-term | 1,101 | 1,493 |
Total liabilities | $ 46,651 | $ 41,300 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value;100,000,000 shares authorized; 33,818,777 shares issued and 33,778,871 outstanding at January 31, 2016, and 32,733,636 shares issued and 32,693,852 outstanding at January 31, 2015 | $ 338 | $ 327 |
Additional paid-in capital | 228,164 | 219,651 |
Treasury stock, at cost; 39,906 and 39,784 common shares at January 31, 2016 and January 31, 2015, respectively | (2) | (1) |
Accumulated loss | (90,869) | (43,172) |
Accumulated other comprehensive loss | (6,613) | (5,754) |
Total stockholders' equity | 131,018 | 171,051 |
Total liabilities and stockholders' equity | $ 177,669 | $ 212,351 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 415 | $ 400 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,818,777 | 32,733,636 |
Common stock, shares outstanding | 33,778,871 | 32,693,852 |
Treasury stock, common shares | 39,906 | 39,784 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | ||
Revenues: | ||||
Products | $ 21,896 | $ 31,507 | $ 54,749 | |
Services | 85,096 | 83,928 | 91,570 | |
Total revenues | 106,992 | 115,435 | 146,319 | |
Cost of revenues: | ||||
Products | 6,013 | 8,845 | 10,526 | |
Services | 44,159 | 48,272 | 55,075 | |
Provision for loss contract | 9,162 | |||
Amortization of intangible assets | 739 | 1,070 | 1,269 | |
Stock-based compensation expense | 80 | 141 | 250 | |
Total cost of revenues | 60,153 | 58,328 | 67,120 | |
Gross profit | 46,839 | 57,107 | 79,199 | |
Operating expenses: | ||||
Research and development | 33,696 | 42,169 | 39,657 | |
Selling and marketing | 15,197 | 13,920 | 15,018 | |
General and administrative | 15,470 | 16,014 | 17,618 | |
Amortization of intangible assets | 4,041 | 4,084 | 3,361 | |
Stock-based compensation expense | 3,472 | 3,079 | 2,709 | |
Earn-outs and change in fair value of earn-outs | (60) | |||
Professional fees-other | 637 | 671 | 1,614 | |
Severance and other restructuring costs | 1,061 | 3,623 | 911 | |
Loss on impairment of TLL, LLC net assets (Note 4) | 21,464 | |||
Total operating expenses | 95,038 | 83,560 | 80,828 | |
Loss from operations | (48,199) | (26,453) | (1,629) | |
Other expenses, net | (523) | (2,161) | (224) | |
Loss on sale of investment in affiliates | (31) | (363) | ||
Loss before income taxes and equity income in earnings of affiliates | (48,753) | (28,614) | (2,216) | |
Income tax (benefit) provision | (1,029) | (1,106) | 55 | |
Equity income in earnings of affiliates, net of tax | 27 | 19 | 44 | |
Loss from continuing operations | (47,697) | (27,489) | (2,227) | |
Income (loss) from discontinued operations, net of tax | 5 | (803) | ||
Net loss | (47,697) | (27,484) | (3,030) | |
Net loss | (47,697) | (27,484) | (3,030) | |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustment | (847) | (3,647) | (294) | |
Unrealized (loss) gain on marketable securities | [1] | (12) | 25 | (12) |
Comprehensive loss | $ (48,556) | $ (31,106) | $ (3,336) | |
Net loss per share: | ||||
Basic | $ (1.42) | $ (0.84) | $ (0.09) | |
Diluted | (1.42) | (0.84) | (0.09) | |
Net loss per share from continuing operations: | ||||
Basic | (1.42) | (0.84) | (0.07) | |
Diluted | $ (1.42) | (0.84) | (0.07) | |
Net income (loss) per share from discontinued operations: | ||||
Basic | 0 | (0.02) | ||
Diluted | $ 0 | $ (0.02) | ||
Weighted average common shares outstanding: | ||||
Basic | 33,506 | 32,772 | 32,718 | |
Diluted | 33,506 | 32,772 | 32,718 | |
[1] | Tax amounts for all periods were not significant |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (47,697) | $ (27,484) | $ (3,030) |
Net (income) loss from discontinued operations | (5) | 803 | |
Adjustments to reconcile net loss to net cash used in continuing operating activities: | |||
Depreciation and amortization of property and equipment | 3,380 | 3,683 | 4,389 |
Provision for loss contract | 9,162 | ||
Amortization of intangible assets | 4,780 | 5,154 | 4,630 |
Stock-based compensation expense | 3,552 | 3,220 | 2,959 |
Deferred income taxes | (985) | (372) | (684) |
Loss on impairment of TLL, LLC net assets | 21,464 | ||
Other non-cash reconciling items, net | 197 | 512 | 798 |
Changes in operating assets and liabilities, excluding impact of acquisition: | |||
Accounts receivable | (1,721) | 3,567 | 5,420 |
Unbilled receivables | (4,359) | (1,993) | (5,251) |
Inventories | (937) | 3,183 | (234) |
Prepaid expenses and other assets | (1,097) | 1,570 | 6,724 |
Accounts payable | 874 | (1,619) | (873) |
Accrued expenses | (2,713) | 1,650 | (3,146) |
Deferred revenues | (1,431) | (5,699) | (4,877) |
Other operating activities | (1,132) | 1,289 | 539 |
Net cash (used in) provided by operating activities from continuing operations | (18,663) | (13,344) | 8,167 |
Net cash provided by (used in) operating activities from discontinued operations | 5 | (803) | |
Total cash (used in) provided by operating activities | (18,663) | (13,339) | 7,364 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (1,397) | (1,873) | (2,315) |
Investment in capitalized software | (2,440) | ||
Purchases of marketable securities | (9,033) | (9,193) | (11,479) |
Proceeds from sale and maturity of marketable securities | 11,043 | 7,181 | 12,237 |
Proceeds from (purchase of) cost method investments, net | 464 | (2,000) | |
Proceeds from sale of equity investment | 229 | 1,128 | |
Acquisition of businesses and payment of contingent consideration, net of cash acquired | (11,686) | (4,009) | |
Advance for TLL, LLC acquisition | (2,500) | ||
Other investing activities | (79) | 958 | |
Net cash used in investing activities from continuing operations | (13,128) | (8,156) | (3,480) |
Net cash provided by investing activities from discontinued operations | 4,000 | ||
Total cash (used in) provided by investing activities | (13,128) | (8,156) | 520 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock relating to stock option exercises | 193 | 1,058 | |
Repurchase of our common stock | (5,504) | ||
Total cash provided by (used in) financing activities | 193 | (5,504) | 1,058 |
Effect of exchange rate changes on cash | 312 | 1,284 | 71 |
Net (decrease) increase in cash and cash equivalents | (31,286) | (25,715) | 9,013 |
Cash and cash equivalents, beginning of period | 90,019 | 115,734 | 106,721 |
Cash and cash equivalents, end of period | 58,733 | 90,019 | 115,734 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 640 | 671 | 2,606 |
Interest paid | 6 | 6 | 4 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Transfer of items originally classified as inventories to equipment | 532 | $ 474 | 1,110 |
Fair value of common stock issued for acquisition of TLL, LLC | 3,019 | ||
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 | ||
Common Stock [Member] | |||
Supplemental disclosure of non-cash investing and financing activities: | |||
Fair value of common stock issued for deferred stock consideration obligation | $ 1,754 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | 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] |
Beginning balance at Jan. 31, 2013 | $ 202,201 | $ 327 | $ 216,359 | $ (12,658) | $ (1,856) | $ 30 | $ (1) |
Beginning 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) | ||||||
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) | |||||
Issuance of common stock pursuant to exercise of stock options | $ 193 | 193 | |||||
Issuance of common stock pursuant to exercise of stock options, Shares | 28,740 | 28,740 | |||||
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 | 278,544 | ||||||
Issuance of common stock pursuant to the TLL, LLC acquisition | $ 4,779 | $ 8 | 4,771 | ||||
Issuance of common stock pursuant to the TLL, LLC acquisition, Shares | 777,857 | ||||||
Purchase of treasury shares | (1) | $ (1) | |||||
Purchase of treasury shares, Shares | (122) | ||||||
Stock-based compensation expense | 3,552 | 3,552 | |||||
Change in fair value on marketable securities | (12) | (12) | |||||
Translation adjustment | (847) | (847) | |||||
Net loss | (47,697) | (47,697) | |||||
Ending balance at Jan. 31, 2016 | $ 131,018 | $ 338 | $ 228,164 | $ (90,869) | $ (6,644) | $ 31 | $ (2) |
Ending balance, Shares at Jan. 31, 2016 | 33,818,777 | (39,906) |
Nature of Business
Nature of Business | 12 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 and advertising content for cable television system operators, telecommunications companies, satellite operators and media companies. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2016 | |
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 accounting principles generally accepted in the United States (“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 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 variable interest entities (“VIEs”) should be applied in the financial statements. 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 VIEs 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 VIEs 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 VIEs during fiscal 2016. 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, 2016 and 2015, 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 assets 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, 2016, one customer represented more than 10% of consolidated accounts receivable compared to two customers as of January 31, 2015. For fiscal 2016 and 2015, two customers each accounted for more than 10% of our total revenue. In fiscal 2014 three customers did. 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 may 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 specific doubtful accounts for estimated losses resulting from the inability of our 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, 2016 and 2015, we had an allowance for doubtful accounts of $0.4 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 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. 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, net of accumulated depreciation and amortization, and are 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, its 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. We record an impairment charge when we believe an investment has experienced a decline in value that is other-than-temporary. Intangible Assets and Goodwill Intangible assets consist of customer contracts, completed technology, non-compete agreements, trade names, patents and intellectual property. 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 Trade names, intellectual property and other 5 - 7 years Certain costs incurred in the application development phase of software development for internal use are capitalized and amortized over the product’s estimated useful life, which is three years. The Company expenses all costs incurred that relate to planning and post implementation phases of development. Capitalized costs related to internally developed software under development are treated as construction in progress until the technology is available for intended use, at which time the amortization commences. Capitalized internally developed software costs were $2.4 million in fiscal 2016. Maintenance and training costs are expensed as incurred. 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 1 st The process of evaluating indefinite-lived intangible assets for impairment requires several judgments and assumptions to be made to determine the fair value, 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 the 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. The choice of which approach and methods to use in a particular situation depends on the facts and circumstances. If actual results are not consistent with these estimates or assumptions, the Company may be exposed to an additional impairment charge that could be material. 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 compare 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. As of January 31, 2016, the Company reviewed the projected future cash flows of the Timeline Labs operations and determined that the carrying amount was greater than the fair value. As a result, all long-term assets related to Timeline Labs were fully impaired and reflected as a $21.9 million loss on impairment of TLL, LLC net assets in our consolidated statements of operations and comprehensive loss for the period ending January 31, 2016 which included: i) $15.8 million relating to the Timeline Labs acquired goodwill, ii) $5.2 million of acquired intangible assets, and iii) $0.9 million of capitalized internal use software. Additionally, we reduced the contingent consideration liability associated with the Timeline Labs acquisition to zero, as we determined the defined performance criteria would not be achieved. Therefore, we recorded the reversal of the liability of $0.4 million to the loss on impairment of assets. The amount of goodwill impaired represented all of the goodwill that resulted from this acquisition due to the short duration of time between the acquisition and the event causing us to impair the assets. 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, termination costs and the disposal of related equipment. 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,” 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 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 intercompany transactions are included in other expenses, 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 expenses, net. The aggregate foreign exchange transaction losses included in other expenses, net, on the consolidated statements of operations and comprehensive loss, were $0.7 million, $2.3 million and approximately $0.4 million for fiscal 2016, 2015 and 2014, 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 2016, 2015 and 2014, our comprehensive loss of $48.6 million, $31.1 million and $3.3 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. The percentage of completion method requires that adjustments or re-evaluations to estimated project revenues and costs be recognized on a project-to-date cumulative basis, as changes to the estimates are identified. Revisions to project estimates are made as additional information becomes known, including information that becomes available subsequent to the date of the consolidated financial statements up through the date such consolidated financial statements are filed with the SEC. If the final estimated profit to complete a long-term contract indicates a loss, a provision is recorded immediately for the total loss anticipated. 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. Contract accounting requires judgment relative to assessing risks, estimating revenues and costs and making assumptions including, in the case of our professional services contracts, the total amount of labor required to complete a project and the complexity of the development and other technical work to be completed. Due to the size and nature of many of our contracts, the estimation of total revenues and cost at completion is complicated and subject to many variables. Assumptions have to be made regarding the length of time to complete the contract because costs also include estimated third-party vendor and contract labor costs. Penalties related to performance on contracts are considered in estimating sales and profit, and are recorded when there is sufficient information for us to assess anticipated performance. Third-party vendors’ assertions are also assessed and considered in estimating costs and margin. During fiscal 2016, we recorded a $9.2 million provision for loss contract as a result of costs associated with delays of customer acceptance relating to a fixed-price customer contract on a multi-year arrangement which included multiple vendors. We have agreed with the customer on the replacement of certain third-party vendors and a change in the timeline for the completion of the project. As the system integrator on the project, we are subject to any costs overruns or increases with these vendors resulting in delays or acceptance by our customer. Any further delays of acceptance by the customer will result in incremental expenditures and increase the loss. 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 Accounting Standard Update No. (“ASU”) 2009-13, “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements,” 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 combine |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Assets and Liabilities that are Measured at Fair Value on a 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, 2016 and January 31, 2015. There were no fair value measurements of our financial assets and liabilities using significant level 3 inputs for the periods presented: Fair Value at January 31, 2016 Using January 31, Quoted Prices Significant (Amounts in thousands) Financial assets: Money market accounts (a) $ 3,654 $ 3,654 $ — Available for sale marketable securities: Current marketable securities: U.S. treasury notes and bonds—conventional 502 502 — U.S. government agency issues 1,002 — 1,002 Non-current marketable securities: U.S. treasury notes and bonds—conventional 7,762 7,762 — U.S. government agency issues 3,002 — 3,002 Total $ 15,922 $ 11,918 $ 4,004 Fair Value at January 31, 2015 Using January 31, Quoted Prices Significant (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 a) Money market funds and U.S. treasury bills are included in cash and cash equivalents on the accompanying consolidated balance sheets and are valued at quoted market prices for identical instruments in active markets. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible property and equipment, goodwill, and other intangible assets, which are re-measured when the derived fair value is below carrying value on our consolidated balance sheets. For these assets and liabilities, we do not periodically adjust carrying value to fair value except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded to loss from impairment in our consolidated statements of operations and comprehensive loss. As of January 31, 2016, the Company reviewed the projected future cash flows of the Timeline Labs operations and determined that the carrying amount was greater than the fair value. As a result, all long-term assets related to Timeline Labs were fully impaired and reflected as a $21.9 million loss on impairment of TLL, LLC net assets in our consolidated statements of operations and comprehensive loss for the period ending January 31, 2016. The impairment of assets included: i) $15.8 million relating to the Timeline Labs acquired goodwill, ii) $5.2 million of acquired intangible assets, and iii) $0.9 million of capitalized internal use software. Additionally, we reduced the contingent consideration liability associated with the Timeline Labs acquisition to zero, as we determined the defined performance criteria would not be achieved. Therefore, we credited the reversal of the liability of $0.4 million to the loss on impairment of assets. Available-for-Sale Securities We determine the appropriate classification of debt investment 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, 2016 and 2015. 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 accretions of discounts to maturity are computed under the effective interest method and is 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 provide fair value measurement disclosures of available-for-sale securities in accordance with one of three levels of fair value measurement mentioned above. 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, 2016 and 2015: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair (Amounts in thousands) January 31, 2016: Cash $ 55,079 $ — $ — $ 55,079 Cash equivalents 3,654 — — 3,654 Cash and cash equivalents 58,733 — — 58,733 U.S. treasury notes and bonds—short-term 503 — (1 ) 502 U.S. treasury notes and bonds—long-term 7,756 6 — 7,762 U.S. government agency issues—short-term 1,001 1 — 1,002 U.S. government agency issues—long-term 2,977 25 — 3,002 Total cash, cash equivalents and marketable securities $ 70,970 $ 32 $ (1 ) $ 71,001 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 The gross realized gains and losses on sale of available-for-sale securities for fiscal years 2016, 2015 and 2014 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, 2016 are as follows (amounts in thousands): Estimated Maturity of one year or less $ 1,504 Maturity between one and five years 10,764 Total $ 12,268 We concluded that there were no other-than-temporary declines in investments recorded as of January 31, 2016, 2015 and 2014. The unrealized holding 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. The fair value of cash, cash equivalents, restricted cash and marketable securities at January 31, 2016 and 2015 was $71.1 million and $105.4 million, respectively. Restricted Cash At times, we may be required to maintain cash held as collateral for performance obligations with our customers. 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 in advance of the February 2, 2015 acquisition date. The unused portion of $1.1 million as of January 31, 2015, was classified as restricted cash in our consolidated balance sheet. On February 2, 2015, this amount was retained by the Company. |
Timeline Labs Acquisition and L
Timeline Labs Acquisition and Loss on Impairment | 12 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Timeline Labs Acquisition and Loss on Impairment | 4. Timeline Labs Acquisition and Loss on Impairment On February 2, 2015, pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), dated as of December 22, 2014, we acquired 100% of the member interests in Timeline Labs, a privately-owned California-based software-as-a-service (“SaaS”) company. We accounted for the acquisition of Timeline Labs as a business combination and the financial results of Timeline Labs have been included in our consolidated financial statements as of the date of acquisition. Under the acquisition method of accounting, the purchase price was allocated to SeaChange’s net tangible and intangible assets based upon their fair values as of February 2, 2015. The allocation of the purchase price was as follows (amounts in thousands): Fair value of consideration: Cash, net of cash acquired $ 14,186 Closing stock consideration 3,019 Deferred stock consideration 4,959 Contingent consideration 475 Total purchase price $ 22,639 Fair value of assets acquired and liabilities assumed: Current assets 95 Other long-term assets 108 Finite-life intangible assets 6,720 Goodwill 15,787 Current liabilities (71 ) Allocated purchase price $ 22,639 Fair Value of Consideration Transferred Upon completion of the acquisition, the Company made cash consideration payments to the former members of Timeline Labs in the amount of $14.2 million (“Closing Cash Consideration”). The Closing Cash Consideration included $1.4 million deposited in escrow to secure certain indemnification obligations of the former members of Timeline Labs under the Merger Agreement. Also upon completion of the acquisition, the Company issued 344,055 shares of common stock to the former members of Timeline Labs and deposited 173,265 shares of common stock into the indemnification escrow. On August 3, 2015 we issued 260,537 shares of our common stock with a value of $1.8 million to the former members of Timeline Labs, in satisfaction of the six-month deferred stock consideration obligation pursuant to the Merger Agreement and on February 2, 2016, we issued 542,274 shares of our common stock with a value of $3.2 million in satisfaction of the twelve-month anniversary obligation. Contingent Consideration The former interest holders of Timeline Labs were eligible to receive earn-out compensation, consisting of shares of our common stock, if defined performance criteria were achieved for fiscal 2016 and 2017. We recorded a liability of $3.2 million in February 2015 in our consolidated balance sheets that represented the fair value of the estimated shares at full achievement of the defined performance criteria on the date of acquisition. As of January 31, 2016, the Company determined that the defined performance criteria would not be achieved and the liability was reduced to zero with a $0.4 million reversal of liability credited to loss on impairment of TLL, LLC net assets in our consolidated statements of operations and comprehensive loss for the fiscal year ended January 31, 2016. Intangible Assets In determining the fair value of the intangible assets, the Company considered, among other factors, the intended use of the assets, the estimates of future performance of Timeline Lab’s products and analyses of historical financial performance. The fair values of identified intangible assets were calculated using an income-based approach based on estimates and assumptions provided by Timeline Labs’ and the Company’s management. The following table sets forth the components of the identified intangible assets associated with the Timeline Labs acquisition and their estimated useful lives: Useful life Fair Value (Amounts in thousands) Tradename 7 years $ 620 Customer contracts 7 years 4,760 Non-compete agreements 2 years 170 Existing technology 5 years 1,170 $ 6,720 Acquired Goodwill We finalized the purchase price allocation in January 2016. We recorded the $15.8 million excess of the purchase price over the fair value of the identified tangible and intangible assets as goodwill, primarily due to expected synergies between the combined companies and expanded market opportunities. The goodwill was considered deductible for tax purposes. Acquisition-related Costs In connection with the acquisition, we incurred approximately $0.1 million in acquisition-related costs, including legal, accounting and other professional services for fiscal 2016. The acquisition costs were expensed as incurred and included in professional fees—other, in our consolidated statements of operations and comprehensive loss. Loss on Impairment of Assets In January 2016, our Board of Directors authorized a restructuring plan (including a possible winding down of the Timeline Labs operations), as previously reported in a Form 8-K filed with the SEC on February 17, 2016. Based on the decision to enter into the restructuring plan and the plan’s impact on the projected future cash flows of the Timeline Labs operations, we determined that the carrying amount of all long-term assets that resulted from the February 2015 acquisition had exceeded the fair value as of January 31, 2016. As a result, these long-term long-term In addition, we incurred $0.7 million in severance and restructuring charges in February 2016 related to the cost-saving actions taken with respect to the Timeline Labs business. |
Consolidated Balance Sheet Deta
Consolidated Balance Sheet Detail | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 2015 (Amounts in thousands) Components and assemblies $ 1,223 $ 1,487 Finished products 459 1,377 Total inventories, net $ 1,682 $ 2,864 Property and equipment, net consists of the following: Estimated Life (Years) January 31, 2016 2015 (Amounts in thousands) Land $ 2,880 $ 2,880 Buildings 20 11,908 12,146 Office furniture and equipment 5 1,099 1,023 Computer equipment, software and demonstration equipment 3 18,639 17,584 Service and spare components 5 1,158 1,158 Leasehold improvements 1-7 1,087 1,089 36,771 35,880 Less—Accumulated depreciation and amortization (22,642 ) (20,011 ) Total property and equipment, net $ 14,129 $ 15,869 Depreciation and amortization expense of fixed assets was $3.4 million, $3.7 million and $4.4 million for the years ended January 31, 2016, 2015 and 2014, respectively. Other accrued expenses consist of the following: January 31, 2016 2015 (Amounts in thousands) Accrued compensation and commissions $ 1,676 $ 1,518 Accrued bonuses 2,902 2,186 Accrued severance 47 2,021 Employee benefits 1,484 1,959 Accrued provision for contract loss 6,497 — Accrued other 4,808 4,823 Total other accrued expenses $ 17,414 $ 12,507 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets At January 31, 2016 and 2015, we had goodwill of $40.2 million and $41.0 million, respectively. The change in the carrying amount of goodwill for the years ended January 31, 2016 and 2015 is as follows (amounts in thousands): Goodwill Balance at January 31, 2014 $ 45,150 Cumulative translation adjustment (4,142 ) Balance at January 31, 2015 41,008 Acquisition of Timeline Labs 15,787 Timeline Labs goodwill impairment (15,787 ) Cumulative translation adjustment (833 ) Balance at January 31, 2016 $ 40,175 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. During the fourth quarter of fiscal 2016, due to the decision to enter into a restructuring plan relating to the Timeline Labs operations (that may include a winding down of the operations), we impaired $15.8 million of goodwill, which represented all of the goodwill that resulted from the acquisition, due to the short duration of time between our acquisition and the event causing us to impair. As a result of this decision, which we consider a triggering event, we were required to perform an analysis of our goodwill. The results of this analysis determined that there was no further impairment to our goodwill during the fourth quarter of fiscal 2016. Intangible assets, net, consisted of the following at January 31, 2016 and 2015: January 31, 2016 January 31, 2015 Weighted average Gross Accumulated Net Gross Accumulated Net (Amounts in thousands) Finite-lived intangible assets: Customer contracts 6.0 $ 29,956 $ (26,284 ) $ 3,672 $ 30,397 $ (24,160 ) $ 6,237 Non-compete agreements — 2,365 (2,365 ) — 2,433 (2,433 ) — Completed technology 5.5 10,075 (9,621 ) 454 10,307 (9,230 ) 1,077 Trade names, intellectual property and other — 7,068 (7,068 ) — 7,082 (7,082 ) — Total finite-lived intangible assets $ 49,464 $ (45,338 ) $ 4,126 $ 50,219 $ (42,905 ) $ 7,314 Amortization expense for intangible assets was $4.8 million, $5.2 million and $4.6 million for fiscal 2016, 2015 and 2014, 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 2017 $ 2,107 2018 1,267 2019 631 2020 121 2021 — 2022 and thereafter — Total $ 4,126 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. |
Severance and Other Restructuri
Severance and Other Restructuring Costs | 12 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Severance and Other Restructuring Costs | 7. Severance and Other Restructuring Costs During fiscal 2016, we incurred restructuring charges totaling $1.1 million. These charges included $1.0 million of severance costs for terminated employees. In addition, we incurred $0.1 million of other restructuring charges primarily due to the write off of leasehold improvements. The following table shows the change in balances of our accrued severance reported as a component of other accrued expenses on the consolidated balance sheet as of January 31, 2016 (amounts in thousands): Accrual balance as of January 31, 2015 $ 2,021 Restructuring charges incurred 1,061 Severance costs paid (2,903 ) Other charges (132 ) Accrual balance as of January 31, 2016 $ 47 As a result of the decision to undertake restructuring activities relating to our Timeline Labs operation, we incurred $0.7 million in severance and restructuring charges in February 2016. In addition, effective April 6, 2016, Jay Samit, our former Chief Executive Officer (“CEO”), was terminated without cause and has resigned from our Board of Directors. In connection with his termination, Mr. Samit and SeaChange entered into a Separation Agreement and Release of Claims (“Separation Agreement”). Under the terms of the Separation Agreement and consistent with its pre-existing obligations to Mr. Samit in connection with the termination without cause, we incurred a charge of $1.4 million in the first quarter of fiscal 2017 that included $0.6 million for satisfaction of his fiscal 2016 and 2017 annual bonuses and $0.8 million payable in twelve equal monthly installments. Payment of these obligations to Mr. Samit will be completed in the first quarter of fiscal 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2016 | |
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’ governing documents. 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. There are no current pending legal proceedings, in the opinion of management that 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 have a letter agreement with JP Morgan Chase Bank, N.A. (“JP Morgan”) for a demand discretionary line of credit and a Demand Promissory Note in the aggregate amount of $20.0 million, which expires on August 31, 2016. 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 and as a result, are not subject to 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 2021. Leases for our facilities typically contain standard commercial lease provisions, including renewal options and rent escalation clauses. Rental expense under operating leases was $2.6 million, $2.9 million and $2.4 million for fiscal 2016, 2015 and 2014, respectively. Future commitments under minimum lease payments as of January 31, 2016 are as follows (amounts in thousands): For the Fiscal Years Ended January 31, Operating Leases 2017 $ 2,170 2018 1,735 2019 1,212 2020 891 2021 660 2022 and thereafter — Minimum operating lease payments $ 6,668 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016. Stock Repurchase Program Our Board of Directors authorized the repurchase of up to $40.0 million of our common stock through a share repurchase program, which expired on April 30, 2015. Under this program, 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). 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 expired, terminated, surrendered or forfeited awards subsequent to July 20, 2011 under the Amended and Restated 2005 Equity Compensation and Incentive Plan (the “2005 Plan”). Following approval of the 2011 Plan, we terminated the 2005 Plan. The 2011 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock, restricted stock units (“RSUs”), PSUs, 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. The number of units subject to the DSUs is determined as of the grant date and shall fully vest one year from the grant date. 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. Commencing with fiscal 2016, we changed the policy regarding the timing of the equity grant from the first day of the applicable fiscal year to the date of our annual meeting of stockholders. To facilitate the transition, a partial year grant was made to our non-employee directors, effective February 1, 2015, and a full year grant was made to our non-employee directors, effective July 15, 2015. We may satisfy awards upon the exercise of stock options or the vesting of stock units 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, 2016, there were 1,971,896 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. Stock units 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 one to four years and expire ten years from the date of the grant. 2015 Employee Stock Purchase Plan In July 2015 we adopted the 2015 Employee Stock Purchase Plan (the “ESPP”). The purpose of the ESPP is to provide eligible employees, including executive officers of SeaChange, with the opportunity to purchase shares of our common stock at a discount through accumulated payroll deductions of up to 15%, but not less than one percent of their eligible compensation, subject to any plan limitations. Offering periods typically commence on October 1 st st st th 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 based on estimated fair values. The fair value of our stock options and PSUs, less expected forfeitures, is amortized over the awards’ vesting period on a graded vesting basis, whereas the RSUs and DSUs, less expected forfeitures, 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. The effect of recording stock-based compensation was as follows: For the Fiscal Years Ended January 31, 2016 2015 2014 (Amounts in thousands) Stock-based compensation expense by type of award: Stock options $ 1,257 $ 1,036 $ 453 Restricted stock units 1,203 1,607 1,907 Deferred stock units 607 500 — Performance-based restricted stock units 475 77 599 Employee stock purchase plan 10 — — Total stock-based compensation $ 3,552 $ 3,220 $ 2,959 Since stock-based awards are expected to be made each year and vest over several years, the effects of applying authoritative guidance for recording stock-based compensation for the year ended January 31, 2016 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, 2016 2015 2014 Expected term (in years) 6-7 6.5 5-7 Expected volatility (range) 40-45% 46% 44-46% Weighted average volatility 42% 46% 45% Risk-free interest rate 1.5-2.0% 1.7% 0.7-0.9% Weighted average interest rate 1.6% 1.7% 0.8% Expected dividend yield 0% 0% 0% Market-Based Options We have granted market-based options to newly appointed officers. These stock options have an exercise price equal to our closing stock price on the date of grant and will vest in approximately equal increments based upon the closing price of SeaChange’s common stock. We record 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. The model simulated the daily trading price of the market-based stock options’ expected terms to determine if the vesting conditions would be triggered during the term. As a result, the fair value was estimated to be $2.4 million for these stock options. As of January 31, 2016, $0.8 million remained unamortized on these market-based stock options, which will be expensed over the next 1.1 years, which represents the remaining weighted average amortization period. The following table summarizes the stock option activity: For the Fiscal Years Ended January 31, 2016 2015 2014 Shares Weighted average exercise price Shares Weighted average exercise price Shares Weighted average exercise price Outstanding at beginning of period 1,626,421 $ 7.77 1,502,176 $ 9.77 1,917,448 $ 10.35 Granted 612,678 $ 6.44 500,000 $ 7.23 12,500 $ 10.10 Exercised (28,740 ) $ 6.74 — $ — (118,528 ) $ 9.10 Forfeited/expired/cancelled (1,017,682 ) $ 8.13 (375,755 ) $ 15.06 (309,244 ) $ 13.78 Outstanding at end of period 1,192,677 $ 6.80 1,626,421 $ 7.77 1,502,176 $ 9.77 Options exercisable at end of period 80,000 $ 6.83 1,108,115 $ 8.02 1,440,521 $ 9.90 Weighted average remaining contractual term (in years) 8.10 4.72 3.93 The weighted-average fair valuation at grant date of stock options granted during the years ended January 31, 2016, 2015 and 2014, was $2.75, $3.39, and $1.53, respectively. As of January 31, 2016, the unrecognized stock-based compensation related to the unvested stock options was approximately $1.8 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 2.4 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, $0.1 million and $4.5 million as of January 31, 2016, 2015 and 2014, respectively. The aggregate intrinsic value of vested shares and share options expected to vest as of January 31, 2016, 2015 and 2014 was $0.1 million, $0.1 million and $4.4 million, respectively. Cash received from employees as a result of employee stock option exercises during fiscal 2016 and fiscal 2014 was $0.2 million and $1.1 million, respectively. There were no stock options exercised in fiscal 2015. The total intrinsic value of options exercised during the years ended January 31, 2016 and 2014 was approximately $14,000 and $0.3 million, respectively. The following table summarizes information about stock options outstanding and exercisable as of January 31, 2016: Options Outstanding Options Exercisable Number outstanding Weighted average remaining contractual terms (years) Weighted average exercise price Number exercisable Weighted average exercise price Range of exercise prices $6.05 to $6.05 412,677 7.72 $ 6.05 — $ — $6.74 to $6.74 75,000 2.96 $ 6.74 75,000 $ 6.74 $7.00 to $7.48 700,000 8.90 $ 7.24 — $ — $8.15 to $8.15 5,000 3.42 $ 8.15 5,000 $ 8.15 1,192,677 8.10 $ 6.80 80,000 $ 6.83 Stock Units (RSUs, DSUs and PSUs) We record stock-based compensation expense associated with stock units using the market value of our stock on the date of grant, less forfeitures, and amortize 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 stock unit activity: For the Fiscal Years Ended January 31, 2016 2015 2014 Shares Weighted average Shares Weighted average Shares Weighted average Nonvested at beginning of period 435,306 $ 8.91 446,468 $ 9.81 552,980 $ 10.51 Awarded 904,344 $ 6.46 314,057 $ 8.60 146,411 $ 11.15 Vested (277,373 ) $ 6.89 (287,485 ) $ 9.83 (205,928 ) $ 12.61 Forfeited/expired/cancelled (9,232 ) $ 8.42 (37,734 ) $ 10.01 (46,995 ) $ 9.93 Nonvested at end of period 1,053,045 $ 7.34 435,306 $ 8.91 446,468 $ 9.81 As of January 31, 2016, the unrecognized stock-based compensation related to the unvested RSUs and DSUs was $2.5 million. This cost will be recognized over an estimated weighted average amortization period of 2.3 years. In fiscal 2016, the Company granted an aggregate of 301,192 PSUs to employees. The target number of PSUs granted to an employee represents the right to receive a corresponding number of shares of our common stock, subject to adjustment depending on SeaChange’s total shareholder return (“TSR”) for the period between February 1, 2016 and January 31, 2019 measured against the TSR of the common stock of the companies comprising the S&P SmallCap 600 Index (collectively referred to as the “SeaChange Relative TSR Percentile Rank”). The number of shares of our common stock that these employees are entitled to receive at January 31, 2019 ranges from 0% to 150% of the target PSU award. If the SeaChange Relative TSR Percentile Rank relative to the companies in the S&P SmallCap 600 Index is less than the 25 th We record the fair value of these PSUs using the Monte Carlo simulation model since the vesting is variable depending on the SeaChange Relative TSR Percentile Ranking. We recognize stock compensation expense related to the PSUs ratably over the required service period based on the estimate that it is probable that the measurement criteria will be achieved and the targeted number of shares will vest. If there is a change in the estimate of the number of shares that are probable of vesting, we will cumulatively adjust compensation expense in the period that the change in estimate is made. The fair value of the granted PSUs was estimated to be $2.1 million and will be expensed over the next 3 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 10. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following: Foreign Changes in Accumulated (Amounts in thousands) 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 ) Other comprehensive loss (847 ) (12 ) (859 ) Balance at January 31, 2016 $ (6,644 ) $ 31 $ (6,613 ) Unrealized holding 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, 2016 | |
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, 2016 2015 2014 Customer A 28 % 17 % 24 % Customer B 10 % 17 % 15 % Customer C N/A N/A 10 % Geographic Information The following summarizes revenues by customers’ geographic locations: For the Fiscal Years Ended January 31, 2016 2015 2014 Amount % Amount % Amount % (Amounts in thousands, except percentages) Revenues by customers’ geographic locations: North America(1) $ 58,113 55 % $ 64,755 56 % $ 77,105 53 % Europe and Middle East 42,201 39 % 39,387 34 % 53,105 36 % Latin America 4,707 4 % 6,829 6 % 13,156 9 % Asia Pacific 1,971 2 % 4,464 4 % 2,953 2 % Total revenues $ 106,992 $ 115,435 $ 146,319 (1) Includes total revenue for the United States for the periods shown as follows: For the Fiscal Years Ended January 31, 2016 2015 2014 (Amounts in thousands, except percentages) U.S. Revenue $ 46,978 $ 59,819 $ 66,903 % of total revenue 43.9 % 51.8 % 45.7 % The following summarizes long-lived assets by geographic locations: January 31, 2016 2015 Amount % Amount % (Amounts in thousands, except percentages) Long-lived assets by geographic locations(1): North America $ 18,944 79 % $ 21,214 74 % Europe and Middle East 3,575 15 % 6,028 22 % Asia Pacific 1,372 6 % 1,260 4 % Total long-lived assets by geographic location $ 23,891 $ 28,502 (1) Excludes marketable securities, long-term and goodwill. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 2015 2014 (Amounts in thousands) Domestic $ (38,709 ) $ (25,920 ) $ (15,049 ) Foreign (10,044 ) (2,694 ) 12,833 $ (48,753 ) $ (28,614 ) $ (2,216 ) The components of the income tax (benefit) provision from continuing operations are as follows: For the Fiscal Years Ended January 31, 2016 2015 2014 (Amounts in thousands) Current: Federal $ — $ — $ 11 State 50 (762 ) 50 Foreign (49 ) 24 692 Total 1 (738 ) 753 Deferred: Foreign (1,030 ) (368 ) (698 ) Total (1,030 ) (368 ) (698 ) Income tax (benefit) provision $ (1,029 ) $ (1,106 ) $ 55 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, 2016 2015 2014 (Amounts in thousands) Statutory U.S. federal tax rate $ (17,066 ) $ (10,014 ) $ (774 ) State taxes, net of federal tax benefit 33 (779 ) 33 Income (losses) not benefitted 15,712 8,913 92 Non-deductible stock compensation expense 3 — 15 Other(1) (31 ) (74 ) 694 Innovative technology and development incentive (189 ) (68 ) 260 Foreign tax rate differential 509 916 (265 ) $ (1,029 ) $ (1,106 ) $ 55 (1) Within the other line in the table above, other non-deductible items were ($0.2) million and $0.3 million for the fiscal years ended January 31, 2016 and 2014, respectively but were not material in fiscal 2015. 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 of 2% and 4% for the fiscal years ended January 31, 2016 and 2015, respectively, and an effective tax rate provision of 3% for the fiscal year ended January 31, 2014. The components of deferred income taxes are as follows: January 31, 2016 2015 (Amounts in thousands) Deferred tax assets: Accruals and reserves $ 5,041 $ 1,783 Deferred revenue 346 761 Stock-based compensation expense 3,655 3,005 U.S. federal, state and foreign tax credits 7,510 7,670 Intangible assets 7,153 — Loss carryforwards 24,172 18,298 Deferred tax assets 47,877 31,517 Less: Valuation allowance (47,368 ) (30,369 ) Net deferred tax assets 509 1,148 Deferred tax liabilities: Intangible assets — 1,267 Other 75 74 Property and equipment 426 869 Total net deferred tax liabilities $ 8 $ (1,062 ) At January 31, 2016, we had federal, state and foreign net operating loss carry forwards of $48.0 million, $80.8 million and $2.0 million respectively, which can be used to offset future tax liabilities and expire at various dates beginning in fiscal 2017. Utilization of these net operating loss carry forwards may be limited pursuant to provisions of the respective local jurisdiction. At January 31, 2016, we had a federal capital loss carry forward of $13.1 million. This loss can only be utilized to offset capital gains and it expires in fiscal 2018. In addition, at January 31, 2016, we had federal and state research and development credit carry forwards of $3.6 million and $1.8 million respectively, and state investment tax credit carry forwards of $0.3 million. Certain federal and state credit carry forwards will expire at various dates if not utilized, 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 the adequacy of the valuation allowance for deferred tax assets on a quarterly basis. We have evaluated the positive and negative evidence bearing upon the realizability of our deferred tax assets and have established a valuation allowance of $47.4 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 $17.0 million from $30.4 million at January 31, 2015. At January 31, 2016, we have indefinitely reinvested $82.5 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, 2016, 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, 2016, we recognized incremental tax benefits of $0.4 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 $0.1 million for the effect of foreign translation. At January 31, 2016, $0.4 million of the $5.2 million of unrecognized tax benefits are related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next twelve months due to the statute of limitations expiring. 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, excluding interest of $0.4 million, is as follows: For the Fiscal Years Ended January 31, 2016 2015 (Amounts in thousands) Balance of gross unrecognized tax benefits, beginning of period $ 5,527 $ 6,035 Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period — 96 Decrease due to expiration of statute of limitation (325 ) (275 ) Effect of currency translation (51 ) (329 ) Balance of gross unrecognized tax benefits, end of period $ 5,151 $ 5,527 We file income tax returns in U.S. federal jurisdiction, various state jurisdictions, and various foreign jurisdictions. We have closed out an audit with the Internal Revenue Service (“IRS”) through fiscal 2013, 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. In the fourth quarter of fiscal 2016, we effectively settled our IRS audit for fiscal years 2010 through 2013. The closing of the audit resulted in $2.3 million reduction in our federal net operating loss (“NOL”) carryforward, a corresponding $2.3 million increase in our federal capital loss carryforward and a $0.1 million reduction in our federal research and development credits. We continue to maintain a valuation allowance against deferred tax assets where realization is not certain. We periodically evaluate the likelihood of the realization of deferred tax assets and reduce the carrying amount of these deferred tax assets by a valuation allowance to the extent we believe a portion will not be realized. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2016 | |
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 2016, 2015 and 2014, we contributed $1.5 million, $1.7 million and $1.7 million, respectively. We have a statutory pension benefit obligation covering current employees in the Philippines. We recorded a total of approximately $0.1 million and $39,000 in interest costs in fiscal 2016 and fiscal 2015, respectively, and $0.3 million and $0.2 million in service costs in relating to this obligation in fiscal 2016 and fiscal 2015. We also recorded an actuarial gain of $0.4 million in fiscal 2016 and an actuarial loss of $0.4 million to this obligation in fiscal 2015. The total unfunded projected benefit obligation was $1.1 million and $1.2 million as of January 31, 2016 and 2015, 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 $0.2 million in benefit payments through fiscal 2027. We used projected discount rates of 5.08% and 4.20% for fiscal 2016 and 2015, respectively, and a compensation increase rate of 7%, in the calculation of our benefit obligation and periodic benefit costs. During fiscal years 2016, 2015 and 2014, we recorded $0.3 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, 2016 | |
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 awards, 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, 2016 2015 2014 Net loss from continuing operations $ (47,697 ) $ (27,489 ) $ (2,227 ) Net income (loss) from discontinued operations — 5 (803 ) Net loss $ (47,697 ) $ (27,484 ) $ (3,030 ) Weighted average shares used in computing net loss per share—basic and diluted 33,506 32,772 32,718 Net loss per share—basic and diluted: Loss from continuing operations $ (1.42 ) $ (0.84 ) $ (0.07 ) Income (loss) from discontinued operations — 0.00 (0.02 ) Net loss per share—basic and diluted: $ (1.42 ) $ (0.84 ) $ (0.09 ) 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, 2016 2015 2014 Stock options 1,493 1,586 913 Restricted stock units 145 217 473 Deferred stock units 31 11 — Performance stock units 5 — — Total 1,674 1,814 1,386 |
Quarterly Results of Operations
Quarterly Results of Operations-Unaudited | 12 Months Ended |
Jan. 31, 2016 | |
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 2016 and fiscal 2015. 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, 2016 Q1 Q2 Q3 Q4 (Amounts in thousands, except per share data) Revenue $ 23,177 $ 27,871 $ 28,747 $ 27,197 Gross profit 10,116 14,427 6,877 15,419 Operating expenses 19,582 19,177 18,718 37,561 Net loss (1) (9,825 ) (5,027 ) (10,565 ) (22,280 ) Loss per share (2): Basic $ (0.29 ) $ (0.16 ) $ (0.31 ) $ (0.66 ) Diluted $ (0.29 ) $ (0.16 ) $ (0.31 ) $ (0.66 ) 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 (3) — 119 (114 ) — Net loss (9,467 ) (5,568 ) (6,309 ) (6,140 ) Net loss per share from continuing operations (2): Basic $ (0.29 ) $ (0.17 ) $ (0.19 ) $ (0.19 ) Diluted $ (0.29 ) $ (0.17 ) $ (0.19 ) $ (0.19 ) Income (loss) per share from discontinued operations (2): Basic $ — $ 0.00 $ (0.00 ) $ — Diluted $ — $ 0.00 $ (0.00 ) $ — Loss per share (2): Basic $ (0.29 ) $ (0.17 ) $ (0.19 ) $ (0.19 ) Diluted $ (0.29 ) $ (0.17 ) $ (0.19 ) $ (0.19 ) (1) Net loss in the fourth quarter of fiscal 2016 includes a $21.5 million loss on impairment of TLL, LLC net assets as a result of our decision to enter into a restructuring plan relating to the Timeline Labs operations that may include a winding down of operations. (2) The sum of per share data may not agree to annual amounts due to rounding. (3) 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. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | SEACHANGE INTERNATIONAL, INC. For the Fiscal Years Ended January 31, 2016, 2015 and 2014 Balance at period Additions Deductions and write- offs Balance at end of period Description Charged to costs and expenses Charged to other accounts (Amounts in thousands) Accounts Receivable Allowance: Year ended January 31, 2016 $ 400 $ 59 $ — $ (44 ) $ 415 Year ended January 31, 2015 $ 327 $ 80 $ — $ (7 ) $ 400 Year ended January 31, 2014 $ 946 $ 286 $ 31 $ (936 ) $ 327 Deferred Tax Assets Valuation Allowance: Year ended January 31, 2016 $ 30,369 $ 16,999 $ — $ — $ 47,368 Year ended January 31, 2015 $ 20,789 $ 9,580 $ — $ — $ 30,369 Year ended January 31, 2014 $ 19,965 $ 824 $ — $ — $ 20,789 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
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 accounting principles generally accepted in the United States (“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 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 variable interest entities (“VIEs”) should be applied in the financial statements. 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 VIEs 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 VIEs 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 VIEs during fiscal 2016. |
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, 2016 and 2015, 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 assets 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, 2016, one customer represented more than 10% of consolidated accounts receivable compared to two customers as of January 31, 2015. For fiscal 2016 and 2015, two customers each accounted for more than 10% of our total revenue. In fiscal 2014 three customers did. |
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 may 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 specific doubtful accounts for estimated losses resulting from the inability of our 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, 2016 and 2015, we had an allowance for doubtful accounts of $0.4 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 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. |
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, net of accumulated depreciation and amortization, and are 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, its 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. We record an impairment charge when we believe an investment has experienced a decline in value that is other-than-temporary. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets consist of customer contracts, completed technology, non-compete agreements, trade names, patents and intellectual property. 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 Trade names, intellectual property and other 5 - 7 years Certain costs incurred in the application development phase of software development for internal use are capitalized and amortized over the product’s estimated useful life, which is three years. The Company expenses all costs incurred that relate to planning and post implementation phases of development. Capitalized costs related to internally developed software under development are treated as construction in progress until the technology is available for intended use, at which time the amortization commences. Capitalized internally developed software costs were $2.4 million in fiscal 2016. Maintenance and training costs are expensed as incurred. 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 1 st The process of evaluating indefinite-lived intangible assets for impairment requires several judgments and assumptions to be made to determine the fair value, 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 the 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. The choice of which approach and methods to use in a particular situation depends on the facts and circumstances. If actual results are not consistent with these estimates or assumptions, the Company may be exposed to an additional impairment charge that could be material. 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 compare 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. As of January 31, 2016, the Company reviewed the projected future cash flows of the Timeline Labs operations and determined that the carrying amount was greater than the fair value. As a result, all long-term assets related to Timeline Labs were fully impaired and reflected as a $21.9 million loss on impairment of TLL, LLC net assets in our consolidated statements of operations and comprehensive loss for the period ending January 31, 2016 which included: i) $15.8 million relating to the Timeline Labs acquired goodwill, ii) $5.2 million of acquired intangible assets, and iii) $0.9 million of capitalized internal use software. Additionally, we reduced the contingent consideration liability associated with the Timeline Labs acquisition to zero, as we determined the defined performance criteria would not be achieved. Therefore, we recorded the reversal of the liability of $0.4 million to the loss on impairment of assets. The amount of goodwill impaired represented all of the goodwill that resulted from this acquisition due to the short duration of time between the acquisition and the event causing us to impair the assets. |
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, termination costs and the disposal of related equipment. 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,” |
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 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 intercompany transactions are included in other expenses, 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 expenses, net. The aggregate foreign exchange transaction losses included in other expenses, net, on the consolidated statements of operations and comprehensive loss, were $0.7 million, $2.3 million and approximately $0.4 million for fiscal 2016, 2015 and 2014, 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 2016, 2015 and 2014, our comprehensive loss of $48.6 million, $31.1 million and $3.3 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. The percentage of completion method requires that adjustments or re-evaluations to estimated project revenues and costs be recognized on a project-to-date cumulative basis, as changes to the estimates are identified. Revisions to project estimates are made as additional information becomes known, including information that becomes available subsequent to the date of the consolidated financial statements up through the date such consolidated financial statements are filed with the SEC. If the final estimated profit to complete a long-term contract indicates a loss, a provision is recorded immediately for the total loss anticipated. 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. Contract accounting requires judgment relative to assessing risks, estimating revenues and costs and making assumptions including, in the case of our professional services contracts, the total amount of labor required to complete a project and the complexity of the development and other technical work to be completed. Due to the size and nature of many of our contracts, the estimation of total revenues and cost at completion is complicated and subject to many variables. Assumptions have to be made regarding the length of time to complete the contract because costs also include estimated third-party vendor and contract labor costs. Penalties related to performance on contracts are considered in estimating sales and profit, and are recorded when there is sufficient information for us to assess anticipated performance. Third-party vendors’ assertions are also assessed and considered in estimating costs and margin. During fiscal 2016, we recorded a $9.2 million provision for loss contract as a result of costs associated with delays of customer acceptance relating to a fixed-price customer contract on a multi-year arrangement which included multiple vendors. We have agreed with the customer on the replacement of certain third-party vendors and a change in the timeline for the completion of the project. As the system integrator on the project, we are subject to any costs overruns or increases with these vendors resulting in delays or acceptance by our customer. Any further delays of acceptance by the customer will result in incremental expenditures and increase the loss. 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 Accounting Standard Update No. (“ASU”) 2009-13, “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements,” 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 share-based payments. We continue to use the Black-Scholes pricing model as we feel it is the most appropriate method for determining the estimated fair value of the non-market-based awards. We also use the Monte Carlo pricing model for our market-based option awards and performance stock units (“PSUs”). Determining the appropriate fair value model and calculating the fair value of share-based payment awards requires the input of highly subjective assumptions, including the expected life of the share-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 share-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 we have recorded in the current period. The estimated fair value of our market-based awards, less expected forfeitures, is amortized over the awards’ vesting period on a graded vesting basis, whereas the fair value of non-market-based awards and employee stock purchase plan (“ESPP”) stock units, less estimated forfeitures, 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 for fiscal 2016, 2015 and 2014, 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,” |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We consider the applicability and impact of all ASUs. 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. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, “Leases (Topic 842).” Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” Intangibles-Goodwill and Other-Internal-Use Software In April 2015, the FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software—Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” 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.” Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” 2014-09 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Components of Identified Intangible Assets Associated with Timeline Labs Acquisition and their Estimated Useful Lives | 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 Trade names, intellectual property and other 5 - 7 years |
Timeline Labs [Member] | |
Components of Identified Intangible Assets Associated with Timeline Labs Acquisition and their Estimated Useful Lives | The following table sets forth the components of the identified intangible assets associated with the Timeline Labs acquisition and their estimated useful lives: Useful life Fair Value (Amounts in thousands) Tradename 7 years $ 620 Customer contracts 7 years 4,760 Non-compete agreements 2 years 170 Existing technology 5 years 1,170 $ 6,720 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 and January 31, 2015. There were no fair value measurements of our financial assets and liabilities using significant level 3 inputs for the periods presented: Fair Value at January 31, 2016 Using January 31, Quoted Prices Significant (Amounts in thousands) Financial assets: Money market accounts (a) $ 3,654 $ 3,654 $ — Available for sale marketable securities: Current marketable securities: U.S. treasury notes and bonds—conventional 502 502 — U.S. government agency issues 1,002 — 1,002 Non-current marketable securities: U.S. treasury notes and bonds—conventional 7,762 7,762 — U.S. government agency issues 3,002 — 3,002 Total $ 15,922 $ 11,918 $ 4,004 Fair Value at January 31, 2015 Using January 31, Quoted Prices Significant (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 a) Money market funds and U.S. treasury bills are included in cash and cash equivalents on the accompanying consolidated balance sheets 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, 2016 and 2015: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Amounts in thousands) January 31, 2016: Cash $ 55,079 $ — $ — $ 55,079 Cash equivalents 3,654 — — 3,654 Cash and cash equivalents 58,733 — — 58,733 U.S. treasury notes and bonds—short-term 503 — (1 ) 502 U.S. treasury notes and bonds—long-term 7,756 6 — 7,762 U.S. government agency issues—short-term 1,001 1 — 1,002 U.S. government agency issues—long-term 2,977 25 — 3,002 Total cash, cash equivalents and marketable securities $ 70,970 $ 32 $ (1 ) $ 71,001 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 |
Schedule of Contractual Maturities Available-for-Sale Debt Securities | Contractual maturities of available-for-sale debt securities at January 31, 2016 are as follows (amounts in thousands): Estimated Maturity of one year or less $ 1,504 Maturity between one and five years 10,764 Total $ 12,268 |
Timeline Labs Acquisition and26
Timeline Labs Acquisition and Loss on Impairment (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Allocation of Purchase Price | The allocation of the purchase price was as follows (amounts in thousands): Fair value of consideration: Cash, net of cash acquired $ 14,186 Closing stock consideration 3,019 Deferred stock consideration 4,959 Contingent consideration 475 Total purchase price $ 22,639 Fair value of assets acquired and liabilities assumed: Current assets 95 Other long-term assets 108 Finite-life intangible assets 6,720 Goodwill 15,787 Current liabilities (71 ) Allocated purchase price $ 22,639 |
Consolidated Balance Sheet De27
Consolidated Balance Sheet Detail (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 2015 (Amounts in thousands) Components and assemblies $ 1,223 $ 1,487 Finished products 459 1,377 Total inventories, net $ 1,682 $ 2,864 |
Property and Equipment, Net | Property and equipment, net consists of the following: Estimated Life (Years) January 31, 2016 2015 (Amounts in thousands) Land $ 2,880 $ 2,880 Buildings 20 11,908 12,146 Office furniture and equipment 5 1,099 1,023 Computer equipment, software and demonstration equipment 3 18,639 17,584 Service and spare components 5 1,158 1,158 Leasehold improvements 1-7 1,087 1,089 36,771 35,880 Less—Accumulated depreciation and amortization (22,642 ) (20,011 ) Total property and equipment, net $ 14,129 $ 15,869 |
Other Accrued Expenses | Other accrued expenses consist of the following: January 31, 2016 2015 (Amounts in thousands) Accrued compensation and commissions $ 1,676 $ 1,518 Accrued bonuses 2,902 2,186 Accrued severance 47 2,021 Employee benefits 1,484 1,959 Accrued provision for contract loss 6,497 — Accrued other 4,808 4,823 Total other accrued expenses $ 17,414 $ 12,507 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 and 2015 is as follows (amounts in thousands): Goodwill Balance at January 31, 2014 $ 45,150 Cumulative translation adjustment (4,142 ) Balance at January 31, 2015 41,008 Acquisition of Timeline Labs 15,787 Timeline Labs goodwill impairment (15,787 ) Cumulative translation adjustment (833 ) Balance at January 31, 2016 $ 40,175 |
Schedule of Intangible Assets | Intangible assets, net, consisted of the following at January 31, 2016 and 2015: January 31, 2016 January 31, 2015 Weighted average Gross Accumulated Net Gross Accumulated Net (Amounts in thousands) Finite-lived intangible assets: Customer contracts 6.0 $ 29,956 $ (26,284 ) $ 3,672 $ 30,397 $ (24,160 ) $ 6,237 Non-compete agreements — 2,365 (2,365 ) — 2,433 (2,433 ) — Completed technology 5.5 10,075 (9,621 ) 454 10,307 (9,230 ) 1,077 Trade names, intellectual property and other — 7,068 (7,068 ) — 7,082 (7,082 ) — Total finite-lived intangible assets $ 49,464 $ (45,338 ) $ 4,126 $ 50,219 $ (42,905 ) $ 7,314 |
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 2017 $ 2,107 2018 1,267 2019 631 2020 121 2021 — 2022 and thereafter — Total $ 4,126 |
Severance and Other Restructu29
Severance and Other Restructuring Costs (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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 sheet as of January 31, 2016 (amounts in thousands): Accrual balance as of January 31, 2015 $ 2,021 Restructuring charges incurred 1,061 Severance costs paid (2,903 ) Other charges (132 ) Accrual balance as of January 31, 2016 $ 47 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future commitments under minimum lease payments as of January 31, 2016 are as follows (amounts in thousands): For the Fiscal Years Ended January 31, Operating Leases 2017 $ 2,170 2018 1,735 2019 1,212 2020 891 2021 660 2022 and thereafter — Minimum operating lease payments $ 6,668 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 2015 2014 (Amounts in thousands) Stock-based compensation expense by type of award: Stock options $ 1,257 $ 1,036 $ 453 Restricted stock units 1,203 1,607 1,907 Deferred stock units 607 500 — Performance-based restricted stock units 475 77 599 Employee stock purchase plan 10 — — Total stock-based compensation $ 3,552 $ 3,220 $ 2,959 |
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, 2016 2015 2014 Expected term (in years) 6-7 6.5 5-7 Expected volatility (range) 40-45% 46% 44-46% Weighted average volatility 42% 46% 45% Risk-free interest rate 1.5-2.0% 1.7% 0.7-0.9% Weighted average interest rate 1.6% 1.7% 0.8% Expected dividend yield 0% 0% 0% |
Stock Option Activity | The following table summarizes the stock option activity: For the Fiscal Years Ended January 31, 2016 2015 2014 Shares Weighted average exercise price Shares Weighted average exercise price Shares Weighted average exercise price Outstanding at beginning of period 1,626,421 $ 7.77 1,502,176 $ 9.77 1,917,448 $ 10.35 Granted 612,678 $ 6.44 500,000 $ 7.23 12,500 $ 10.10 Exercised (28,740 ) $ 6.74 — $ — (118,528 ) $ 9.10 Forfeited/expired/cancelled (1,017,682 ) $ 8.13 (375,755 ) $ 15.06 (309,244 ) $ 13.78 Outstanding at end of period 1,192,677 $ 6.80 1,626,421 $ 7.77 1,502,176 $ 9.77 Options exercisable at end of period 80,000 $ 6.83 1,108,115 $ 8.02 1,440,521 $ 9.90 Weighted average remaining contractual term (in years) 8.10 4.72 3.93 |
Summary of Information about Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable as of January 31, 2016: Options Outstanding Options Exercisable Number outstanding Weighted average remaining contractual terms (years) Weighted average exercise price Number exercisable Weighted average exercise price Range of exercise prices $6.05 to $6.05 412,677 7.72 $ 6.05 — $ — $6.74 to $6.74 75,000 2.96 $ 6.74 75,000 $ 6.74 $7.00 to $7.48 700,000 8.90 $ 7.24 — $ — $8.15 to $8.15 5,000 3.42 $ 8.15 5,000 $ 8.15 1,192,677 8.10 $ 6.80 80,000 $ 6.83 |
Summary of Stock Unit Activity | The following table summarizes the stock unit activity: For the Fiscal Years Ended January 31, 2016 2015 2014 Shares Weighted average Shares Weighted average Shares Weighted average Nonvested at beginning of period 435,306 $ 8.91 446,468 $ 9.81 552,980 $ 10.51 Awarded 904,344 $ 6.46 314,057 $ 8.60 146,411 $ 11.15 Vested (277,373 ) $ 6.89 (287,485 ) $ 9.83 (205,928 ) $ 12.61 Forfeited/expired/cancelled (9,232 ) $ 8.42 (37,734 ) $ 10.01 (46,995 ) $ 9.93 Nonvested at end of period 1,053,045 $ 7.34 435,306 $ 8.91 446,468 $ 9.81 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following: Foreign Changes in Accumulated (Amounts in thousands) 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 ) Other comprehensive loss (847 ) (12 ) (859 ) Balance at January 31, 2016 $ (6,644 ) $ 31 $ (6,613 ) |
Segment Information, Signific33
Segment Information, Significant Customers and Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 2015 2014 Customer A 28 % 17 % 24 % Customer B 10 % 17 % 15 % Customer C N/A N/A 10 % |
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, 2016 2015 2014 Amount % Amount % Amount % (Amounts in thousands, except percentages) Revenues by customers’ geographic locations: North America(1) $ 58,113 55 % $ 64,755 56 % $ 77,105 53 % Europe and Middle East 42,201 39 % 39,387 34 % 53,105 36 % Latin America 4,707 4 % 6,829 6 % 13,156 9 % Asia Pacific 1,971 2 % 4,464 4 % 2,953 2 % Total revenues $ 106,992 $ 115,435 $ 146,319 (1) Includes total revenue for the United States for the periods shown as follows: For the Fiscal Years Ended January 31, 2016 2015 2014 (Amounts in thousands, except percentages) U.S. Revenue $ 46,978 $ 59,819 $ 66,903 % of total revenue 43.9 % 51.8 % 45.7 % |
Long-Lived Assets by Geographic Locations | The following summarizes long-lived assets by geographic locations: January 31, 2016 2015 Amount % Amount % (Amounts in thousands, except percentages) Long-lived assets by geographic locations(1): North America $ 18,944 79 % $ 21,214 74 % Europe and Middle East 3,575 15 % 6,028 22 % Asia Pacific 1,372 6 % 1,260 4 % Total long-lived assets by geographic location $ 23,891 $ 28,502 (1) Excludes marketable securities, long-term and goodwill. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 2015 2014 (Amounts in thousands) Domestic $ (38,709 ) $ (25,920 ) $ (15,049 ) Foreign (10,044 ) (2,694 ) 12,833 $ (48,753 ) $ (28,614 ) $ (2,216 ) |
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, 2016 2015 2014 (Amounts in thousands) Current: Federal $ — $ — $ 11 State 50 (762 ) 50 Foreign (49 ) 24 692 Total 1 (738 ) 753 Deferred: Foreign (1,030 ) (368 ) (698 ) Total (1,030 ) (368 ) (698 ) Income tax (benefit) provision $ (1,029 ) $ (1,106 ) $ 55 |
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, 2016 2015 2014 (Amounts in thousands) Statutory U.S. federal tax rate $ (17,066 ) $ (10,014 ) $ (774 ) State taxes, net of federal tax benefit 33 (779 ) 33 Income (losses) not benefitted 15,712 8,913 92 Non-deductible stock compensation expense 3 — 15 Other(1) (31 ) (74 ) 694 Innovative technology and development incentive (189 ) (68 ) 260 Foreign tax rate differential 509 916 (265 ) $ (1,029 ) $ (1,106 ) $ 55 (1) Within the other line in the table above, other non-deductible items were ($0.2) million and $0.3 million for the fiscal years ended January 31, 2016 and 2014, respectively but were not material in fiscal 2015. 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, 2016 2015 (Amounts in thousands) Deferred tax assets: Accruals and reserves $ 5,041 $ 1,783 Deferred revenue 346 761 Stock-based compensation expense 3,655 3,005 U.S. federal, state and foreign tax credits 7,510 7,670 Intangible assets 7,153 — Loss carryforwards 24,172 18,298 Deferred tax assets 47,877 31,517 Less: Valuation allowance (47,368 ) (30,369 ) Net deferred tax assets 509 1,148 Deferred tax liabilities: Intangible assets — 1,267 Other 75 74 Property and equipment 426 869 Total net deferred tax liabilities $ 8 $ (1,062 ) |
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, excluding interest of $0.4 million, is as follows: For the Fiscal Years Ended January 31, 2016 2015 (Amounts in thousands) Balance of gross unrecognized tax benefits, beginning of period $ 5,527 $ 6,035 Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period — 96 Decrease due to expiration of statute of limitation (325 ) (275 ) Effect of currency translation (51 ) (329 ) Balance of gross unrecognized tax benefits, end of period $ 5,151 $ 5,527 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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, 2016 2015 2014 Net loss from continuing operations $ (47,697 ) $ (27,489 ) $ (2,227 ) Net income (loss) from discontinued operations — 5 (803 ) Net loss $ (47,697 ) $ (27,484 ) $ (3,030 ) Weighted average shares used in computing net loss per share—basic and diluted 33,506 32,772 32,718 Net loss per share—basic and diluted: Loss from continuing operations $ (1.42 ) $ (0.84 ) $ (0.07 ) Income (loss) from discontinued operations — 0.00 (0.02 ) Net loss per share—basic and diluted: $ (1.42 ) $ (0.84 ) $ (0.09 ) |
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, 2016 2015 2014 Stock options 1,493 1,586 913 Restricted stock units 145 217 473 Deferred stock units 31 11 — Performance stock units 5 — — Total 1,674 1,814 1,386 |
Quarterly Results of Operatio36
Quarterly Results of Operations-Unaudited (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | The following table sets forth certain unaudited quarterly results of operations for fiscal 2016 and fiscal 2015. 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, 2016 Q1 Q2 Q3 Q4 (Amounts in thousands, except per share data) Revenue $ 23,177 $ 27,871 $ 28,747 $ 27,197 Gross profit 10,116 14,427 6,877 15,419 Operating expenses 19,582 19,177 18,718 37,561 Net loss (1) (9,825 ) (5,027 ) (10,565 ) (22,280 ) Loss per share (2): Basic $ (0.29 ) $ (0.16 ) $ (0.31 ) $ (0.66 ) Diluted $ (0.29 ) $ (0.16 ) $ (0.31 ) $ (0.66 ) 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 (3) — 119 (114 ) — Net loss (9,467 ) (5,568 ) (6,309 ) (6,140 ) Net loss per share from continuing operations (2): Basic $ (0.29 ) $ (0.17 ) $ (0.19 ) $ (0.19 ) Diluted $ (0.29 ) $ (0.17 ) $ (0.19 ) $ (0.19 ) Income (loss) per share from discontinued operations (2): Basic $ — $ 0.00 $ (0.00 ) $ — Diluted $ — $ 0.00 $ (0.00 ) $ — Loss per share (2): Basic $ (0.29 ) $ (0.17 ) $ (0.19 ) $ (0.19 ) Diluted $ (0.29 ) $ (0.17 ) $ (0.19 ) $ (0.19 ) (1) Net loss in the fourth quarter of fiscal 2016 includes a $21.5 million loss on impairment of TLL, LLC net assets as a result of our decision to enter into a restructuring plan relating to the Timeline Labs operations that may include a winding down of operations. (2) The sum of per share data may not agree to annual amounts due to rounding. (3) In May 2012, we completed the sale of our broadcast servers and storage business and our media services business. As a result, both businesses have been reported as discontinued operations in our consolidated financial statements. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2016USD ($) | Jan. 31, 2016USD ($)Customer | Jan. 31, 2015USD ($)Customer | Jan. 31, 2014USD ($)Customer | Feb. 28, 2015USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Allowance for doubtful accounts receivable | $ 415,000 | $ 415,000 | $ 400,000 | ||
Cost method investment, ownership percentage | 20.00% | 20.00% | |||
Capitalized software costs | $ 2,400,000 | $ 2,400,000 | |||
Loss on impairment | 21,500,000 | 21,464,000 | |||
Goodwill impairment charge | 0 | 15,787,000 | |||
Contingent consideration liability, fair value | 0 | 0 | $ 3,200,000 | ||
Foreign currency transaction gain (loss), realized | 700,000 | 2,300,000 | $ 400,000 | ||
Comprehensive loss | $ (48,556,000) | (31,106,000) | (3,336,000) | ||
Minimum period warranty of product | 1 year | ||||
Provision for loss contract | $ 9,162,000 | ||||
Advertising expense | $ 100,000 | $ 100,000 | $ 100,000 | ||
Software Development [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Identified intangible assets, Useful life | 3 years | ||||
Total Revenue [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of customers accounted | Customer | 2 | 2 | 3 | ||
Timeline Labs [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Loss on impairment | $ 21,900,000 | ||||
Goodwill impairment charge | 15,800,000 | ||||
Intangible assets impairment charge | 5,200,000 | ||||
Capitalized internal use software impairment charge | 900,000 | ||||
Loss on impairment due to reversal of contingent consideration liability | 400,000 | ||||
Contingent consideration liability, fair value | $ 0 | $ 0 | |||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of customers accounted | Customer | 1 | 2 | |||
Concentration risk percentage | 10.00% | 10.00% | |||
Customer Concentration Risk [Member] | Total Revenue [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | ||
Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Support agreements | 12 months | ||||
Minimum [Member] | Investments in Affiliates [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Equity method investment, ownership percentage | 20.00% | 20.00% | |||
Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Support agreements | 36 months | ||||
Maximum [Member] | Investments in Affiliates [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) | Feb. 02, 2015 | Jan. 31, 2016 |
Customer Contracts [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 7 years | 6 years |
Non-Compete Agreements [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 2 years | |
Completed Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 5 years 6 months | |
Minimum [Member] | Customer Contracts [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 1 year | |
Minimum [Member] | Non-Compete Agreements [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 2 years | |
Minimum [Member] | Completed Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 4 years | |
Minimum [Member] | Trademarks Intellectual Property And Other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 5 years | |
Maximum [Member] | Customer Contracts [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 8 years | |
Maximum [Member] | Non-Compete Agreements [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 3 years | |
Maximum [Member] | Completed Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 6 years | |
Maximum [Member] | Trademarks Intellectual Property And Other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 7 years |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Available for sale marketable securities: | ||
Marketable securities, short-term | $ 1,504 | $ 7,516 |
Non-current marketable securities: | ||
Marketable securities, long-term | 10,764 | 6,793 |
Total | 15,922 | 15,884 |
U.S. Treasury Notes and Bonds Conventional [Member] | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | 502 | 1,501 |
Non-current marketable securities: | ||
Marketable securities, long-term | 7,762 | 4,286 |
U.S. Government Agency Issues Short Term [Member] | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | 1,002 | 6,015 |
U.S. Government Agency Issues Long Term [Member] | ||
Non-current marketable securities: | ||
Marketable securities, long-term | 3,002 | 2,507 |
Money Market Accounts [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 3,654 | 1,575 |
Fair Value, Inputs, Level 1 [Member] | ||
Non-current marketable securities: | ||
Total | 11,918 | 7,362 |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Notes and Bonds Conventional [Member] | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | 502 | 1,501 |
Non-current marketable securities: | ||
Marketable securities, long-term | 7,762 | 4,286 |
Fair Value, Inputs, Level 1 [Member] | Money Market Accounts [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 3,654 | 1,575 |
Fair Value, Inputs, Level 2 [Member] | ||
Non-current marketable securities: | ||
Total | 4,004 | 8,522 |
Fair Value, Inputs, Level 2 [Member] | U.S. Government Agency Issues Short Term [Member] | ||
Available for sale marketable securities: | ||
Marketable securities, short-term | 1,002 | 6,015 |
Fair Value, Inputs, Level 2 [Member] | U.S. Government Agency Issues Long Term [Member] | ||
Non-current marketable securities: | ||
Marketable securities, long-term | $ 3,002 | $ 2,507 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Feb. 28, 2015 | |
Fair Value Measurements Disclosure [Line Items] | |||||
Loss on impairment | $ 21,500,000 | $ 21,464,000 | |||
Goodwill impairment charge | 0 | 15,787,000 | |||
Contingent consideration liability, fair value | 0 | $ 0 | $ 3,200,000 | ||
Maximum maturity of marketable securities | Three months or less | ||||
Other than temporary declines in investments | $ 0 | $ 0 | $ 0 | ||
Cash equivalents and marketable securities | 71,100,000 | 71,100,000 | 105,400,000 | ||
Escrow agreement fund | 2,500,000 | $ 2,500,000 | |||
Escrow reserve | $ 1,100,000 | ||||
Acquisition date | Feb. 2, 2015 | ||||
Timeline Labs [Member] | |||||
Fair Value Measurements Disclosure [Line Items] | |||||
Loss on impairment | $ 21,900,000 | ||||
Goodwill impairment charge | 15,800,000 | ||||
Intangible assets impairment charge | 5,200,000 | ||||
Capitalized internal use software impairment charge | 900,000 | ||||
Loss on impairment due to reversal of contingent consideration liability | 400,000 | ||||
Contingent consideration liability, fair value | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | $ 70,970 | $ 104,285 |
Gross Unrealized Gains | 32 | 43 |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | 71,001 | 104,328 |
Cash [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 55,079 | 88,444 |
Estimated Fair Value | 55,079 | 88,444 |
Cash Equivalents [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 3,654 | 1,575 |
Estimated Fair Value | 3,654 | 1,575 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 58,733 | 90,019 |
Estimated Fair Value | 58,733 | 90,019 |
U.S. Treasury Notes and Bonds - Short Term [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 503 | 1,500 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | 502 | 1,501 |
U.S. Treasury Notes and Bonds - Long Term [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 7,756 | 4,268 |
Gross Unrealized Gains | 6 | 18 |
Estimated Fair Value | 7,762 | 4,286 |
U.S. Government Agency Issues Short Term [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 1,001 | 6,008 |
Gross Unrealized Gains | 1 | 7 |
Estimated Fair Value | 1,002 | 6,015 |
U.S. Government Agency Issues Long Term [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 2,977 | 2,490 |
Gross Unrealized Gains | 25 | 17 |
Estimated Fair Value | $ 3,002 | $ 2,507 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contractual Maturities Available-for-Sale Debt Securities (Detail) $ in Thousands | Jan. 31, 2016USD ($) |
Fair Value Disclosures [Abstract] | |
Maturity of one year or less | $ 1,504 |
Maturity between one and five years | 10,764 |
Total | $ 12,268 |
Timeline Labs Acquisition and43
Timeline Labs Acquisition and Loss on Impairment - Additional Information (Detail) - USD ($) | Feb. 02, 2016 | Aug. 03, 2015 | Feb. 02, 2015 | Feb. 29, 2016 | Jan. 31, 2016 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Feb. 28, 2015 |
Business Acquisition [Line Items] | |||||||||
Payments to acquire business | $ 11,686,000 | $ 4,009,000 | |||||||
Contingent consideration liability, fair value | $ 0 | 0 | $ 3,200,000 | ||||||
Acquisition of Timeline Labs | 15,787,000 | ||||||||
Loss on impairment | 21,500,000 | 21,464,000 | |||||||
Severance and restructuring charges | 1,061,000 | $ 3,623,000 | $ 911,000 | ||||||
Timeline Labs [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of equity interest acquired | 100.00% | ||||||||
Payments to acquire business | $ 14,186,000 | ||||||||
Indemnification assets | $ 1,400,000 | ||||||||
Business acquisition, number of common stock issued | 260,537 | 344,055 | |||||||
Common stock deposited into escrow | 173,265 | ||||||||
Business acquisition, value of common stock issued | $ 1,800,000 | $ 4,959,000 | |||||||
Contingent consideration liability, fair value | $ 0 | 0 | |||||||
Loss on impairment due to reversal of contingent consideration liability | 400,000 | ||||||||
Acquisition of Timeline Labs | $ 15,800,000 | ||||||||
Business acquisition related costs | 100,000 | ||||||||
Loss on impairment | $ 21,900,000 | ||||||||
Timeline Labs [Member] | Subsequent Event [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, number of common stock issued | 542,274 | ||||||||
Business acquisition, value of common stock issued | $ 3,200,000 | ||||||||
Severance and restructuring charges | $ 700,000 |
Timeline Labs Acquisition and44
Timeline Labs Acquisition and Loss on Impairment - Summary of Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Feb. 02, 2015 | Jan. 31, 2016 | Jan. 31, 2014 | Aug. 03, 2015 | Jan. 31, 2015 |
Fair value of consideration: | |||||
Cash, net of cash acquired | $ 11,686 | $ 4,009 | |||
Fair value of assets acquired and liabilities assumed: | |||||
Goodwill | $ 40,175 | $ 45,150 | $ 41,008 | ||
Timeline Labs [Member] | |||||
Fair value of consideration: | |||||
Cash, net of cash acquired | $ 14,186 | ||||
Closing stock consideration | 3,019 | ||||
Deferred stock consideration | 4,959 | $ 1,800 | |||
Contingent consideration | 475 | ||||
Total purchase price | 22,639 | ||||
Fair value of assets acquired and liabilities assumed: | |||||
Current assets | 95 | ||||
Other long-term assets | 108 | ||||
Finite-life intangible assets | 6,720 | ||||
Goodwill | 15,787 | ||||
Current liabilities | (71) | ||||
Allocated purchase price | $ 22,639 |
Timeline Labs Acquisition and45
Timeline Labs Acquisition and Loss on Impairment - Components of Identified Intangible Assets Associated with Timeline Labs Acquisition and their Estimated Useful Lives (Detail) - USD ($) $ in Thousands | Feb. 02, 2015 | Jan. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Fair Value | $ 6,720 | |
Tradename [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 7 years | |
Identified intangible assets, Fair Value | $ 620 | |
Customer Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 7 years | 6 years |
Identified intangible assets, Fair Value | $ 4,760 | |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 2 years | |
Identified intangible assets, Fair Value | $ 170 | |
Existing Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, Useful life | 5 years | |
Identified intangible assets, Fair Value | $ 1,170 |
Consolidated Balance Sheet De46
Consolidated Balance Sheet Detail - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Components and assemblies | $ 1,223 | $ 1,487 |
Finished products | 459 | 1,377 |
Total inventories, net | $ 1,682 | $ 2,864 |
Consolidated Balance Sheet De47
Consolidated Balance Sheet Detail - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 36,771 | $ 35,880 |
Less-Accumulated depreciation and amortization | (22,642) | (20,011) |
Total property and equipment, net | 14,129 | 15,869 |
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 | $ 11,908 | 12,146 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 5 | |
Property, Plant and Equipment, Gross | $ 1,099 | 1,023 |
Computer Equipment, Software and Demonstration Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (Years) | 3 | |
Property, Plant and Equipment, Gross | $ 18,639 | 17,584 |
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 | $ 1,087 | $ 1,089 |
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 De48
Consolidated Balance Sheet Detail - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation and amortization expense | $ 3,380 | $ 3,683 | $ 4,389 |
Consolidated Balance Sheet De49
Consolidated Balance Sheet Detail - Other Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and commissions | $ 1,676 | $ 1,518 |
Accrued bonuses | 2,902 | 2,186 |
Accrued severance | 47 | 2,021 |
Employee benefits | 1,484 | 1,959 |
Accrued provision for contract loss | 6,497 | |
Accrued other | 4,808 | 4,823 |
Total other accrued expenses | $ 17,414 | $ 12,507 |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Feb. 02, 2015 | |
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | $ 40,175 | $ 40,175 | $ 41,008 | $ 45,150 | |
Goodwill, Impairment charges | $ 0 | 15,787 | |||
Amortization of intangible assets | 4,800 | $ 5,200 | $ 4,600 | ||
Timeline Labs [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | $ 15,787 | ||||
Goodwill, Impairment charges | $ 15,800 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets - Schedule of Change in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2016 | Jan. 31, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | $ 41,008 | $ 45,150 | |
Acquisition of Timeline Labs | 15,787 | ||
Timeline Labs goodwill impairment | $ 0 | (15,787) | |
Cumulative translation adjustment | (833) | (4,142) | |
Goodwill, Ending balance | $ 40,175 | $ 40,175 | $ 41,008 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Feb. 02, 2015 | Jan. 31, 2016 | Jan. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross | $ 49,464 | $ 50,219 | |
Accumulated Amortization | (45,338) | (42,905) | |
Finite-lived intangible assets, Net | $ 4,126 | 7,314 | |
Customer Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining life (Years) | 7 years | 6 years | |
Finite-lived intangible assets, Gross | $ 29,956 | 30,397 | |
Accumulated Amortization | (26,284) | (24,160) | |
Finite-lived intangible assets, Net | 3,672 | 6,237 | |
Non-Compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining life (Years) | 2 years | ||
Finite-lived intangible assets, Gross | 2,365 | 2,433 | |
Accumulated Amortization | $ (2,365) | (2,433) | |
Completed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining life (Years) | 5 years 6 months | ||
Finite-lived intangible assets, Gross | $ 10,075 | 10,307 | |
Accumulated Amortization | (9,621) | (9,230) | |
Finite-lived intangible assets, Net | 454 | 1,077 | |
Trade Names, Intellectual Property And Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross | 7,068 | 7,082 | |
Accumulated Amortization | $ (7,068) | $ (7,082) |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 2,107 | |
2,018 | 1,267 | |
2,019 | 631 | |
2,020 | 121 | |
2,021 | 0 | |
2022 and thereafter | 0 | |
Finite-lived intangible assets, Net | $ 4,126 | $ 7,314 |
Severance and Other Restructu54
Severance and Other Restructuring Costs - Additional Information (Detail) $ in Thousands | Apr. 06, 2016USD ($)Installments | Feb. 29, 2016USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 1,061 | $ 3,623 | $ 911 | ||
Severance costs | 1,000 | ||||
Other restructuring charges, (primarily due to the write off of leasehold improvements) | $ 100 | ||||
Subsequent Event [Member] | CEO [Member] | Separation Agreement [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation related liabilities including bonus payable | $ 1,400 | ||||
Bonus payable | 600 | ||||
Employee separation liability payable | $ 800 | ||||
Number of equal monthly installments | Installments | 12 | ||||
Timeline Labs [Member] | Subsequent Event [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 700 |
Severance and Other Restructu55
Severance and Other Restructuring Costs - Change in Severance Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |||
Accrual balance at the beginning of the period | $ 2,021 | ||
Restructuring charges incurred | 1,061 | $ 3,623 | $ 911 |
Severance costs paid | (2,903) | ||
Other charges | (132) | ||
Accrual balance at the ending of the period | $ 47 | $ 2,021 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Contingencies And Commitments [Line Items] | |||
Operating leases, rent expense | $ 2,600,000 | $ 2,900,000 | $ 2,400,000 |
Operating lease expiration year | 2,021 | ||
Demand Debt Instrument [Member] | |||
Contingencies And Commitments [Line Items] | |||
Demand notes payable | $ 20,000,000 | ||
Line of credit expiration date | Aug. 31, 2016 |
Commitments and Contingencies57
Commitments and Contingencies - Schedule of Future Minimum Rental Payment (Detail) $ in Thousands | Jan. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 2,170 |
2,018 | 1,735 |
2,019 | 1,212 |
2,020 | 891 |
2,021 | 660 |
2022 and thereafter | 0 |
Minimum operating lease payments | $ 6,668 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Apr. 30, 2015 | Jul. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 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 | |||||
Expiration date of repurchase program | Apr. 30, 2015 | |||||
Stock repurchased during period, Shares | 591,520 | |||||
Common stock average price | $ 9.31 | |||||
Repurchases of common stock | $ 5,500,000 | $ 5,504,000 | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 1,800,000 | |||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $ 2.75 | $ 3.39 | $ 1.53 | |||
Share based compensation arrangement by share based payment award estimated weighted average amortization period | 2 years 4 months 24 days | |||||
Aggregate intrinsic value for options outstanding | $ 100,000 | $ 100,000 | $ 4,500,000 | |||
Aggregate intrinsic value of vested shares and share options expected to vest | 100,000 | $ 100,000 | 4,400,000 | |||
Employee service share-based compensation, cash received from exercise of stock options | $ 200,000 | $ 1,100,000 | ||||
Stock options exercised | 28,740 | 0 | 118,528 | |||
Share-based compensation arrangement by share-based payment award, options, exercises in period, total intrinsic value | $ 14,000 | $ 300,000 | ||||
Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ 2,400,000 | |||||
Share-based compensation arrangement by share-based payment award, options, vested in period | 1 year 1 month 6 days | |||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 800,000 | |||||
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 | $ 2,500,000 | |||||
Share based compensation arrangement by share based payment award estimated weighted average amortization period | 2 years 3 months 18 days | |||||
Performance Stock Units (PSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock units granted | 301,192 | |||||
Fair value of stock units granted | $ 2,100,000 | |||||
Fair value of stock units granted, remaining contractual term | 3 years | |||||
Performance Stock Units (PSUs) [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of common stock expected to be issued | 150.00% | |||||
Performance Stock Units (PSUs) [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of common stock expected to be issued | 0.00% | |||||
2015 Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, Description | On each purchase date, eligible employees will purchase our stock at a price per share equal to 85% of the closing price of our common stock on the exercise date, but no less than par value. | |||||
Minimum payroll deductions at base compensation under employee stock purchase plan | 1.00% | |||||
Maximum payroll deductions at base compensation under employee stock purchase plan | 15.00% | |||||
Offering period commence date | Oct. 1, 2015 | |||||
Percentage of stock to be purchased under the plan | 85.00% | |||||
2015 Employee Stock Purchase Plan [Member] | Maximum [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 | 1,150,000 | |||||
Compensation and Incentive Plan 2011 [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, 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 expiration period | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | |||||
Compensation and Incentive Plan 2011 [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by Share-based payment award, Option award vesting period | 4 years | |||||
Compensation and Incentive Plan 2011 [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by Share-based payment award, Option award vesting period | 1 year | |||||
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 available for grant | 1,971,896 |
Stockholders' Equity - Effect o
Stockholders' Equity - Effect of Recording Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Stock-based compensation expense by type of award: | |||
Stock options | $ 1,257 | $ 1,036 | $ 453 |
Restricted stock units | 1,203 | 1,607 | 1,907 |
Deferred stock units | 607 | 500 | |
Performance-based restricted stock units | 475 | 77 | 599 |
Employee stock purchase plan | 10 | ||
Total stock-based compensation | $ 3,552 | $ 3,220 | $ 2,959 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value of Stock Options Granted (Detail) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (range), Minimum | 40.00% | 46.00% | 44.00% |
Expected volatility (range), Maximum | 45.00% | 46.00% | |
Weighted average volatility | 42.00% | 46.00% | 45.00% |
Weighted average interest rate | 1.60% | 1.70% | 0.80% |
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 years 6 months | 5 years |
Risk-free interest rate | 1.50% | 1.70% | 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 | 2.00% | 0.90% |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Equity [Abstract] | |||
Shares, Outstanding at beginning of period | 1,626,421 | 1,502,176 | 1,917,448 |
Shares, Granted | 612,678 | 500,000 | 12,500 |
Shares, Exercised | (28,740) | 0 | (118,528) |
Shares, Forfeited/expired/cancelled | (1,017,682) | (375,755) | (309,244) |
Shares, Outstanding at end of period | 1,192,677 | 1,626,421 | 1,502,176 |
Shares, Options exercisable at end of period | 80,000 | 1,108,115 | 1,440,521 |
Weighted average exercise price, Outstanding at beginning of period | $ 7.77 | $ 9.77 | $ 10.35 |
Weighted average exercise price, Granted | 6.44 | 7.23 | 10.10 |
Weighted average exercise price, Exercised | 6.74 | 9.10 | |
Weighted average exercise price, Forfeited/expired/cancelled | 8.13 | 15.06 | 13.78 |
Weighted average exercise price, Outstanding at end of period | 6.80 | 7.77 | 9.77 |
Weighted average exercise price, Options exercisable at end of period | $ 6.83 | $ 8.02 | $ 9.90 |
Weighted average exercise price, Weighted average remaining contractual term (in years) | 8 years 1 month 6 days | 4 years 8 months 19 days | 3 years 11 months 5 days |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Information about Stock Options Outstanding and Exercisable (Detail) | Jan. 31, 2016$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number outstanding | shares | 1,192,677 |
Options Outstanding, Weighted average remaining contractual terms (years) | 8 years 1 month 6 days |
Options Outstanding, Weighted average exercise price | $ 6.80 |
Options Exercisable, Number Exercisable | shares | 80,000 |
Options Exercisable, Weighted average exercise price | $ 6.83 |
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 | 6.05 |
Options Outstanding, Range of exercise prices, Upper Range Limit | $ 6.05 |
Options Outstanding, Number outstanding | shares | 412,677 |
Options Outstanding, Weighted average remaining contractual terms (years) | 7 years 8 months 19 days |
Options Outstanding, Weighted average exercise price | $ 6.05 |
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 | 6.74 |
Options Outstanding, Range of exercise prices, Upper Range Limit | $ 6.74 |
Options Outstanding, Number outstanding | shares | 75,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 2 years 11 months 16 days |
Options Outstanding, Weighted average exercise price | $ 6.74 |
Options Exercisable, Number Exercisable | shares | 75,000 |
Options Exercisable, Weighted average exercise price | $ 6.74 |
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 |
Options Outstanding, Range of exercise prices, Upper Range Limit | $ 7.48 |
Options Outstanding, Number outstanding | shares | 700,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 8 years 10 months 24 days |
Options Outstanding, Weighted average exercise price | $ 7.24 |
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 | 8.15 |
Options Outstanding, Range of exercise prices, Upper Range Limit | $ 8.15 |
Options Outstanding, Number outstanding | shares | 5,000 |
Options Outstanding, Weighted average remaining contractual terms (years) | 3 years 5 months 1 day |
Options Outstanding, Weighted average exercise price | $ 8.15 |
Options Exercisable, Number Exercisable | shares | 5,000 |
Options Exercisable, Weighted average exercise price | $ 8.15 |
Stockholders' Equity - Summar63
Stockholders' Equity - Summary of Stock Unit Activity (Detail) - Restricted Stock Units Deferred Stock Units and Performance Stock Units [Member] - $ / shares | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested Shares at beginning of period | 435,306 | 446,468 | 552,980 |
Awarded Shares | 904,344 | 314,057 | 146,411 |
Vested Shares | (277,373) | (287,485) | (205,928) |
Forfeited/expired/cancelled Shares | (9,232) | (37,734) | (46,995) |
Nonvested Shares at end of period | 1,053,045 | 435,306 | 446,468 |
Nonvested Weighted average grant date fair value at beginning of period | $ 8.91 | $ 9.81 | $ 10.51 |
Awarded Weighted average grant date fair value | 6.46 | 8.60 | 11.15 |
Vested Weighted average grant date fair value | 6.89 | 9.83 | 12.61 |
Forfeited/expired/cancelled Weighted average grant date fair value | 8.42 | 10.01 | 9.93 |
Nonvested Weighted average grant date fair value at ending of period | $ 7.34 | $ 8.91 | $ 9.81 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (5,754) | $ (2,132) |
Other comprehensive loss | (859) | (3,622) |
Ending balance | (6,613) | (5,754) |
Cumulative Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (5,797) | (2,150) |
Other comprehensive loss | (847) | (3,647) |
Ending balance | (6,644) | (5,797) |
Unrealized Gain/Loss on Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 43 | 18 |
Other comprehensive loss | (12) | 25 |
Ending balance | $ 31 | $ 43 |
Segment Information, Signific65
Segment Information, Significant Customers and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Jan. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Segment Information, Signific66
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, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
% of total revenues | 10.00% | 10.00% | 10.00% |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
% of total revenues | 28.00% | 17.00% | 24.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
% of total revenues | 10.00% | 17.00% | 15.00% |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
% of total revenues | 10.00% |
Segment Information, Signific67
Segment Information, Significant Customers and Geographic Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 106,992 | $ 115,435 | $ 146,319 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 58,113 | 64,755 | 77,105 |
Europe and Middle East [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 42,201 | 39,387 | 53,105 |
Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 4,707 | 6,829 | 13,156 |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 1,971 | $ 4,464 | $ 2,953 |
Customer Concentration Risk [Member] | Total Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 10.00% | 10.00% | 10.00% |
Customer Concentration Risk [Member] | Total Revenue [Member] | North America [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 55.00% | 56.00% | 53.00% |
Customer Concentration Risk [Member] | Total Revenue [Member] | Europe and Middle East [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 39.00% | 34.00% | 36.00% |
Customer Concentration Risk [Member] | Total Revenue [Member] | Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 4.00% | 6.00% | 9.00% |
Customer Concentration Risk [Member] | Total Revenue [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenues | 2.00% | 4.00% | 2.00% |
Segment Information, Signific68
Segment Information, Significant Customers and Geographic Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 106,992 | $ 115,435 | $ 146,319 |
Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenue | 10.00% | 10.00% | 10.00% |
United States Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 46,978 | $ 59,819 | $ 66,903 |
United States Revenue [Member] | Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
% of total revenue | 43.90% | 51.80% | 45.70% |
Segment Information, Signific69
Segment Information, Significant Customers and Geographic Information - Long-Lived Assets by Geographic Locations (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 23,891 | $ 28,502 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 18,944 | $ 21,214 |
Long-lived assets, Percentage | 79.00% | 74.00% |
Europe and Middle East [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 3,575 | $ 6,028 |
Long-lived assets, Percentage | 15.00% | 22.00% |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 1,372 | $ 1,260 |
Long-lived assets, Percentage | 6.00% | 4.00% |
Income Taxes - Components of Lo
Income Taxes - Components of Loss from Continuing Operations before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (38,709) | $ (25,920) | $ (15,049) |
Foreign | (10,044) | (2,694) | 12,833 |
Loss before income taxes and equity income in earnings of affiliates | $ (48,753) | $ (28,614) | $ (2,216) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Benefit) Provisions from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Current: | |||
Federal | $ 11 | ||
State | $ 50 | $ (762) | 50 |
Foreign | (49) | 24 | 692 |
Total | 1 | (738) | 753 |
Deferred: | |||
Foreign | (1,030) | (368) | (698) |
Total | (1,030) | (368) | (698) |
Income tax (benefit) provision | $ (1,029) | $ (1,106) | $ 55 |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit) Provision for Continuing Operations Computed Using Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal tax rate | $ (17,066) | $ (10,014) | $ (774) |
State taxes, net of federal tax benefit | 33 | (779) | 33 |
Income (losses) not benefited | 15,712 | 8,913 | 92 |
Non-deductible stock compensation expense | 3 | 15 | |
Other | (31) | (74) | 694 |
Innovative technology and development incentive | (189) | (68) | 260 |
Foreign tax rate differential | 509 | 916 | (265) |
Income tax (benefit) provision | $ (1,029) | $ (1,106) | $ 55 |
Income Taxes - Income Tax (Be73
Income Taxes - Income Tax (Benefit) Provision for Continuing Operations Computed Using Federal Statutory Income Tax Rate (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Other non-deductible items | $ (0.2) | $ 0.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Income Taxes Disclosure [Line Items] | ||||
Effective tax rate (benefit)/provision | 2.00% | 4.00% | 3.00% | |
Deferred tax assets, operating loss carry forwards, domestic | $ 48,000,000 | $ 48,000,000 | ||
Operating loss carry forwards, expiry beginning year | 2,017 | |||
Deferred tax assets, operating loss carry forwards, state and local | 80,800,000 | $ 80,800,000 | ||
Deferred tax assets, operating loss carry forwards, foreign | 2,000,000 | 2,000,000 | ||
Deferred tax assets capital loss carry forwards, domestic | 13,100,000 | $ 13,100,000 | ||
Capital loss carry forwards expiration dates | 2,018 | |||
Deferred tax assets, tax credit carry forwards, alternative minimum tax | 600,000 | $ 600,000 | ||
Deferred tax assets, tax credit carry forwards, foreign | 2,000,000 | 2,000,000 | ||
Valuation allowance | 47,368,000 | 47,368,000 | $ 30,369,000 | |
Valuation allowance increased | 17,000,000 | |||
Allocation of cumulative undistributed earnings of foreign subsidiaries, reinvestment | 82,500,000 | 82,500,000 | ||
Repatriated amount subject to US tax rate | 48,000,000 | 48,000,000 | ||
Incremental tax benefit | 400,000 | |||
Tax benefit recognized for the statute of limitations | 325,000 | 275,000 | ||
Tax benefit recognized for the effect of foreign translation | 51,000 | 329,000 | ||
Significant change in tax positions due to the statute of limitations | 400,000 | 400,000 | ||
Unrecognized tax benefits | 5,151,000 | 5,151,000 | $ 5,527,000 | $ 6,035,000 |
Interest on income tax expense | 400,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Deferred tax assets, tax credit carry forwards, research | 3,600,000 | 3,600,000 | ||
Deferred tax assets tax credit carry forward investment | 300,000 | 300,000 | ||
Federal [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Deferred tax assets, tax credit carry forwards, research | 1,800,000 | $ 1,800,000 | ||
Reduction in federal net operating loss carryforward | (2,300,000) | |||
Increase in federal capital loss carryforward | 2,300,000 | |||
Reduction in federal research and development credit | $ (100,000) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Deferred tax assets: | ||
Accruals and reserves | $ 5,041 | $ 1,783 |
Deferred revenue | 346 | 761 |
Stock-based compensation expense | 3,655 | 3,005 |
U.S. federal, state and foreign tax credits | 7,510 | 7,670 |
Intangible assets | 7,153 | |
Loss carryforwards | 24,172 | 18,298 |
Deferred tax assets | 47,877 | 31,517 |
Less: Valuation allowance | (47,368) | (30,369) |
Net deferred tax assets | 509 | 1,148 |
Deferred tax liabilities: | ||
Intangible assets | 1,267 | |
Other | 75 | 74 |
Property and equipment | 426 | 869 |
Total net deferred tax assets | $ 8 | |
Total net deferred tax liabilities | $ (1,062) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Balance of Total Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Balance of gross unrecognized tax benefits, beginning of period | $ 5,527 | $ 6,035 |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 96 | |
Decrease due to expiration of statute of limitation | (325) | (275) |
Effect of currency translation | (51) | (329) |
Balance of gross unrecognized tax benefits, end of period | $ 5,151 | $ 5,527 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Interest costs | $ 100 | $ 39 | |
Service cost | 300 | 200 | |
Actuarial gain (loss) | 400 | (400) | |
Unfunded projected benefit obligation | 1,100 | $ 1,200 | |
Benefit payments related to plan | $ 200 | ||
Benefit obligation, projected discount rate | 5.08% | 4.20% | |
Periodic benefit costs, projected discount rate | 0.00% | 4.20% | |
Benefit obligation, compensation increase rate | 7.00% | 7.00% | |
Periodic benefit costs, compensation increase rate | 7.00% | 7.00% | |
Periodic benefit costs | $ 300 | $ 200 | $ 200 |
Retirement Savings Plan [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Defined contribution plan, cost recognized | $ 1,500 | $ 1,700 | $ 1,700 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Earnings Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss from continuing operations | $ (47,697) | $ (27,489) | $ (2,227) | ||||||||
Net income (loss) from discontinued operations | 5 | (803) | |||||||||
Net loss | $ (22,280) | $ (10,565) | $ (5,027) | $ (9,825) | $ (6,140) | $ (6,309) | $ (5,568) | $ (9,467) | $ (47,697) | $ (27,484) | $ (3,030) |
Weighted average shares used in computing net loss per share-basic and diluted | 33,506 | 32,772 | 32,718 | ||||||||
Net loss per share-basic and diluted: | |||||||||||
Loss from continuing operations | $ (1.42) | $ (0.84) | $ (0.07) | ||||||||
Income (loss) from discontinued operations | 0 | (0.02) | |||||||||
Net loss per share-basic and diluted: | $ (1.42) | $ (0.84) | $ (0.09) |
Net Loss Per Share - Schedule79
Net Loss Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 1,674 | 1,814 | 1,386 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 1,493 | 1,586 | 913 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 145 | 217 | 473 |
Deferred Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 31 | 11 | |
Performance Stock Units (PSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potentially outstanding common shares | 5 |
Quarterly Results of Operatio80
Quarterly Results of Operations-Unaudited - Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 27,197 | $ 28,747 | $ 27,871 | $ 23,177 | $ 31,279 | $ 29,970 | $ 29,849 | $ 24,337 | |||
Gross profit | 15,419 | 6,877 | 14,427 | 10,116 | 16,036 | 14,793 | 15,387 | 10,891 | $ 46,839 | $ 57,107 | $ 79,199 |
Operating expenses | 37,561 | 18,718 | 19,177 | 19,582 | 21,300 | 20,660 | 20,574 | 21,026 | 95,038 | 83,560 | 80,828 |
Net loss from continuing operations | (6,140) | (6,195) | (5,687) | (9,467) | |||||||
Net income (loss) from discontinued operations | (114) | 119 | |||||||||
Net loss | $ (22,280) | $ (10,565) | $ (5,027) | $ (9,825) | $ (6,140) | $ (6,309) | $ (5,568) | $ (9,467) | $ (47,697) | $ (27,484) | $ (3,030) |
Net loss per share from continuing operations | |||||||||||
Basic | $ (0.19) | $ (0.19) | $ (0.17) | $ (0.29) | $ (1.42) | $ (0.84) | $ (0.07) | ||||
Diluted | (0.19) | (0.19) | (0.17) | (0.29) | (1.42) | (0.84) | (0.07) | ||||
Income (loss) per share from discontinued operations | |||||||||||
Basic | 0 | 0 | 0 | (0.02) | |||||||
Diluted | 0 | 0 | 0 | (0.02) | |||||||
Loss per share | |||||||||||
Basic | $ (0.66) | $ (0.31) | $ (0.16) | $ (0.29) | (0.19) | (0.19) | (0.17) | (0.29) | (1.42) | (0.84) | (0.09) |
Diluted | $ (0.66) | $ (0.31) | $ (0.16) | $ (0.29) | $ (0.19) | $ (0.19) | $ (0.17) | $ (0.29) | $ (1.42) | $ (0.84) | $ (0.09) |
Quarterly Results of Operatio81
Quarterly Results of Operations-Unaudited - Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jan. 31, 2016 | Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Loss on impairment of TLL, LLC net assets | $ 21,500 | $ 21,464 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 30,369 | ||
Balance at end of period | 47,368 | $ 30,369 | |
Deferred Tax Assets Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 30,369 | 20,789 | $ 19,965 |
Additions, Charged to costs and expenses | 16,999 | 9,580 | 824 |
Balance at end of period | 47,368 | 30,369 | 20,789 |
Accounts Receivable Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 400 | 327 | 946 |
Additions, Charged to costs and expenses | 59 | 80 | 286 |
Additions, Charged to other accounts | 31 | ||
Deductions and write-offs | (44) | (7) | (936) |
Balance at end of period | $ 415 | $ 400 | $ 327 |