Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2019 | Apr. 01, 2019 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SEAC | ||
Entity Registrant Name | SEACHANGE INTERNATIONAL INC | ||
Entity Central Index Key | 0001019671 | ||
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 Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 36,512,535 | ||
Entity Public Float | $ 106,171,547 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 20,317 | $ 43,652 |
Restricted cash | 9 | |
Marketable securities | 4,020 | 3,991 |
Accounts and other receivables, net of allowance for doubtful accounts of $577 and $16 at January 31, 2019 and 2018, respectively | 19,267 | 22,537 |
Unbilled receivables | 5,448 | 3,101 |
Inventory | 924 | 666 |
Prepaid expenses and other current assets | 6,033 | 3,557 |
Total current assets | 56,009 | 77,513 |
Property, plant and equipment, net | 7,192 | 9,471 |
Marketable securities, long-term | 6,339 | 4,449 |
Intangible assets, net | 0 | 1,303 |
Goodwill | 8,753 | 25,579 |
Other assets | 450 | 1,015 |
Total assets | 78,743 | 119,330 |
Current liabilities: | ||
Accounts payable | 4,503 | 2,431 |
Accrued expenses | 7,762 | 15,379 |
Deferred revenue | 8,104 | 11,598 |
Total current liabilities | 20,369 | 29,408 |
Deferred revenue, long-term | 2,642 | 2,835 |
Taxes payable, long-term | 429 | 1,152 |
Deferred tax liabilities, long-term | 203 | 215 |
Total liabilities | 23,643 | 33,610 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value; 100,000,000 shares authorized at January 31, 2019 and 2018; 35,946,100 shares issued and 35,905,610 shares outstanding at January 31, 2019, 35,634,984 shares issued and 35,594,494 outstanding at January 31, 2018 | 359 | 356 |
Additional paid-in capital | 242,442 | 239,423 |
Treasury stock, at cost; 40,490 shares at January 31, 2019 and 2018 | (5) | (5) |
Accumulated other comprehensive loss | (3,393) | (5,434) |
Accumulated deficit | (184,303) | (148,620) |
Total stockholders' equity | 55,100 | 85,720 |
Total liabilities and stockholders' equity | $ 78,743 | $ 119,330 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 577 | $ 16 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 35,946,100 | 35,634,984 |
Common stock, shares outstanding | 35,905,610 | 35,594,494 |
Treasury stock, common shares | 40,490 | 40,490 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue: | ||
Total revenue | $ 62,402 | $ 80,267 |
Cost of revenue: | ||
Total cost of revenue | 25,072 | 26,323 |
Gross profit | 37,330 | 53,944 |
Operating expenses: | ||
Research and development | 19,705 | 23,444 |
Selling and marketing | 14,414 | 14,247 |
General and administrative | 19,618 | 16,923 |
Severance and restructuring costs | 2,381 | 4,740 |
Loss on impairment of goodwill and long-lived assets | 17,015 | |
Total operating expenses | 73,133 | 59,354 |
Loss from operations | (35,803) | (5,410) |
Other income (expense), net | (4,217) | 6,636 |
Income (loss) from operations before income taxes | (40,020) | 1,226 |
Income tax benefit | (2,018) | (12,272) |
Net income (loss) | $ (38,002) | $ 13,498 |
Net income (loss) per share: | ||
Basic | $ (1.06) | $ 0.38 |
Diluted | $ (1.06) | $ 0.38 |
Weighted average common shares outstanding: | ||
Basic | 35,691 | 35,412 |
Diluted | 35,691 | 35,685 |
Comprehensive income (loss): | ||
Net income (loss) | $ (38,002) | $ 13,498 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | 1,992 | (3) |
Unrealized gains (losses) on marketable securities | 49 | (60) |
Total other comprehensive income (loss) | 2,041 | (63) |
Comprehensive income (loss) | (35,961) | 13,435 |
Product [Member] | ||
Revenue: | ||
Total revenue | 20,655 | 28,791 |
Cost of revenue: | ||
Cost of revenue | 3,460 | 4,048 |
Service [Member] | ||
Revenue: | ||
Total revenue | 41,747 | 51,476 |
Cost of revenue: | ||
Cost of revenue | $ 21,612 | $ 22,275 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (38,002) | $ 13,498 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 2,924 | 4,696 |
Recovery on loss contract | (593) | |
Provision for bad debts | 1,779 | 79 |
Loss on impairment of goodwill and long-lived assets | 17,015 | |
Stock-based compensation expense | 2,939 | 2,696 |
Deferred income taxes | (4) | (14,132) |
Unrealized foreign currency transaction loss | 3,459 | |
Gain on sale of investment in affiliate | (175) | (2,555) |
Other | 53 | 398 |
Changes in operating assets and liabilities, excluding impact of acquisitions: | ||
Accounts and other receivables | 513 | 5,132 |
Unbilled receivables | (2,468) | 3,968 |
Inventory | (260) | 34 |
Prepaid expenses and other current assets and other assets | (877) | (588) |
Accounts payable | 2,219 | (2,499) |
Accrued expenses | (7,087) | 3,505 |
Deferred revenue | (3,379) | (1,078) |
Other operating activities | (173) | 386 |
Net cash provided by (used in) operating activities | (21,524) | 12,947 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (364) | (526) |
Purchases of marketable securities | (8,510) | (7,246) |
Proceeds from sales and maturities of marketable securities | 6,652 | 8,992 |
Proceeds from sale of investment in affiliate | 175 | 4,555 |
Other investing activities | 236 | |
Net cash provided by (used in) investing activities | (2,047) | 6,011 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 83 | 54 |
Payments of withholding tax on RSU vesting | (43) | (141) |
Net cash provided by (used in) financing activities | 40 | (87) |
Effect of exchange rate on cash, cash equivalents and restricted cash | 187 | (3,621) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (23,344) | 15,250 |
Cash, cash equivalents and restricted cash at beginning of period | 43,661 | 28,411 |
Cash, cash equivalents and restricted cash at end of period | 20,317 | 43,661 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | $ 2,965 | $ 368 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning balance at Jan. 31, 2017 | $ 69,536 | $ 353 | $ 236,677 | $ (5) | $ (5,371) | $ (162,118) |
Beginning balance, Shares at Jan. 31, 2017 | 35,339,232 | |||||
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 | 271,285 | |||||
Issuance of common stock pursuant to ESPP purchases | 53 | 53 | ||||
Issuance of common stock pursuant to ESPP purchases, Shares | 24,467 | |||||
Stock-based compensation expense | 2,696 | 2,696 | ||||
Unrealized gain (loss) on marketable securities | (60) | (60) | ||||
Foreign currency translation adjustment | (3) | (3) | ||||
Net income (loss) | 13,498 | 13,498 | ||||
Ending balance at Jan. 31, 2018 | 85,720 | $ 356 | 239,423 | (5) | (5,434) | (148,620) |
Ending balance, Shares at Jan. 31, 2018 | 35,634,984 | |||||
Adjustment resulting from the adoption of Topic 606 | 2,319 | 2,319 | ||||
Issuance of common stock pursuant to exercise of stock options | $ 54 | 54 | ||||
Issuance of common stock pursuant to exercise of stock options, shares | 20,937 | 20,937 | ||||
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 | 277,385 | |||||
Issuance of common stock pursuant to ESPP purchases | $ 29 | 29 | ||||
Issuance of common stock pursuant to ESPP purchases, Shares | 12,794 | |||||
Stock-based compensation expense | 2,939 | 2,939 | ||||
Unrealized gain (loss) on marketable securities | 49 | 49 | ||||
Foreign currency translation adjustment | 1,992 | 1,992 | ||||
Net income (loss) | (38,002) | (38,002) | ||||
Ending balance at Jan. 31, 2019 | $ 55,100 | $ 359 | $ 242,442 | $ (5) | $ (3,393) | $ (184,303) |
Ending balance, Shares at Jan. 31, 2019 | 35,946,100 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Jan. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation SeaChange International, Inc., a Delaware corporation was founded on July 9, 1993. We are an industry leader in the delivery of multiscreen, advertising and premium over-the-top (“OTT”) video management solutions. Our software products and services are designed to empower video providers to create, manage and monetize the increasingly personalized, highly engaging experiences that viewers demand. Liquidity We continue to realize the savings related to our restructuring activities. During fiscal 2019, we made significant reductions to our headcount as part of our ongoing restructuring effort from which we expect to generate annualized savings over $6 million. These measures are important steps in restoring us to profitability and positive cash flow. We believe that existing cash and investments and cash expected to be provided by future operating results, augmented by the plans highlighted above (see Note 7), are adequate to satisfy our working capital, capital expenditure requirements and other contractual obligations for at least the next 12 months. If our expectations are incorrect, we may need to raise additional funds to fund our operations, to take advantage of unanticipated strategic opportunities or to strengthen our financial position. In the future, we may enter into other arrangements for potential investments in, or acquisitions of, complementary businesses, services or technologies, which could require us to seek additional equity or debt financing. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of market opportunities, to develop new products or to otherwise respond to competitive pressures. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, those related to revenue recognition, allowance for doubtful accounts, goodwill and intangible assets, impairment of long-lived assets, accounting for income taxes, and the valuation of stock-based awards. We base our estimates on historical experience, known trends and other market-specific or relevant factors that are believed to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. Cash Equivalents We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Restricted cash Restricted cash represents cash that is restricted as to withdrawal or usage and consists primarily of cash held as collateral for performance obligations with customers. Marketable Securities Our investments, consisting of debt securities, are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity (deficit). Realized gains and losses and declines in value determined to be other than temporary are based on the specific identification method and are included as a component of other income (expense), net in the consolidated statements of operations and comprehensive income (loss). We evaluate our investments with unrealized losses for other-than-temporary impairment. When assessing investments for other-than-temporary declines in value, we consider such factors as, among other things, how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, our ability and intent to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value and market conditions in general. If any adjustment to fair value reflects a decline in the value of the investment that we consider to be “other than temporary,” we reduce the investment to fair value through a charge to the statement of operations and comprehensive income (loss). No such adjustments were necessary during the periods presented. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. Our cash equivalents and marketable securities are carried at fair value determined according to the fair value hierarchy described above (see Note 3). The carrying values of our accounts and other receivables, unbilled receivables, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. Concentration of Credit Risk and of Significant Customers Financial instruments which potentially expose us to concentrations of credit risk include cash and cash equivalents, marketable securities and accounts receivable. We have cash investment policies which, among other things, limit investments to investment-grade securities. We restrict our cash equivalents and 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. We sell our software products and services worldwide primarily to service providers, consisting of operators, telecommunications companies, satellite operators and broadcasters. Two customers accounted for 24% and 11%, respectively, of total revenue in fiscal 2019. One customer accounted for 37% of total revenue in fiscal 2018. Two customers accounted for 44% and 15%, respectively, of the accounts receivable balance as of January 31, 2019. One customer accounted for 49% of the accounts receivable balance as of January 31, 2018. Allowances for Doubtful Accounts 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 income (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. 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 is valued at the lower of cost or net realizable value. Cost is computed using the first-in, first-out method. We regularly review inventory quantities on-hand for excess and obsolete inventory and, when circumstances indicate, record charges to write down inventories to their estimated net realizable value, after evaluating historical sales, future demand, market conditions and expected product life cycles. Such charges are classified as cost of revenue in the consolidated Property, Plant and Equipment Property, plant and equipment consists of land, buildings, office furniture and equipment, computer equipment, software and demonstration equipment, service and spare components, and leasehold improvements. Deployed assets are included in computer equipment, and assemblies used to service our installed base are included in service and spare components. Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated lives of the related assets. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is reflected in the consolidated statements of operations. Expenditures for maintenance and repairs are charged to expense as incurred. Estimated useful lives of assets are as follows: Buildings 20 years Office furniture and equipment 5 years Computer equipment, software and demonstration equipment 3 years Service and spare components 5 years Leasehold improvements Shorter of lease term or estimated useful life Investments in Affiliates Our investments in affiliates included investments accounted for under the cost method of accounting as the investments represented less than a 20% ownership interest of the common shares of the affiliate. In connection with the sale of our investment in Layer3 TV, Inc. (“Layer 3”), a company in which we had a cost-method investment, we received $4.6 million in fiscal 2018. We recorded a gain on sale of investment in affiliate of $2.6 million, included in other income (expense) in our consolidated statements of operations and comprehensive income (loss) in fiscal 2018. We were entitled to additional payments of up to $2.1 million, subject to satisfaction of provisions associated with the transaction, of which we received $0.2 million, included in other income (expense) in fiscal 2019. We recorded a gain on sale of investment in affiliate of $0.2 million in our consolidated statements of operations and comprehensive income (loss) in fiscal 2019 related to this payment. We cannot provide assurance as to the timing of or whether we will receive additional such payments. The balance of our investments in affiliates was zero as of January 31, 2019 and 2018. 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. Goodwill and Acquired Intangible Assets We record goodwill when consideration paid in a business acquisition exceeds the value of the net assets acquired. Our estimates of fair value are based upon assumptions believed to be reasonable at that time but that are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate, and unanticipated events or circumstances may occur, which may affect the accuracy or validity of such assumptions, estimates or actual results. Goodwill is not amortized, but rather is tested for impairment annually in our third quarter beginning August 1 st such as the ones mentioned in impairments of long-lived assets existence of potential impairment and the amount of impairment loss by comparing the fair value of the reporting unit with its carrying amount, including goodwill. Intangible assets are recorded at their estimated fair values at the date of acquisition. We amortize acquired intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis. Internal Use Software 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. We expense 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. Maintenance and training costs are expensed as incurred. Impairment of Long-Lived Assets Long-lived assets primarily consist of property, plant and equipment and intangible assets with finite lives. Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Recoverability of long-lived assets or groups of assets is assessed based on a comparison of the carrying amount to the estimated future undiscounted cash flows. If estimated future undiscounted net cash flows are less than the carrying amount, the asset is considered impaired and expense is recorded at an amount required to reduce the carrying amount to fair value. Determining the fair value of long-lived assets includes significant judgment by management, and different judgments could yield different results. We assess the useful lives and possible impairment of existing recognized long-lived assets whenever events or changes in circumstances occur that indicate that it is more likely than not that an impairment has occurred. We test long-lived assets for impairment by comparing the carrying amount to the sum of the net undiscounted cash flows expected to be generated by the asset whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the carrying amount of the asset exceeds its net undiscounted cash flows, then an impairment loss is recognized for the amount by which the carrying amount exceeds its fair value. We use a discounted cash flow approach or other methods, if appropriate, to assess fair value. Factors considered important which could trigger a review include: • significant underperformance relative to historical or projected future operating results; • significant changes in the manner of use of the acquired assets or the strategy for our overall business; • identification of other impaired assets within a reporting unit; • significant negative industry or economic trends; • a significant decline in our stock price for a sustained period; and • a decline in our market capitalization relative to net book value. Determining whether a triggering event has occurred involves significant judgment. (see Note 6). Income Taxes Income taxes comprise current and deferred income tax. Income taxes are recognized in the consolidated statements of operations and comprehensive income (loss) except to the extent that it relates to items recognized directly within equity or in other comprehensive income (loss). Income taxes payable, which is included in accrued expenses in our consolidated balance sheets, is the expected taxes 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. Our policy is to classify interest and penalties related to unrecognized tax benefits, if and when required, as a component of income tax (benefit) provision, in our consolidated statements of operations and comprehensive income (loss). We have made a policy election to treat the GILTI tax as a period expense. Because there are several 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, remaining lease obligations and 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 (see Note 7). Foreign Currency Translation The functional currency of each of our foreign subsidiaries is the currency of the local country unless otherwise determined that the U.S. dollar would serve as a more appropriate functional currency given the economic operations of the foreign subsidiary We also incur transaction gains and losses resulting from intercompany transactions as well as transactions with customers or vendors denominated in currencies other than the functional currency of the legal entity in which the transaction is recorded. Foreign currency transaction gains (losses) are included in the consolidated statements of operations and comprehensive income (loss) as a component of other income (expense) and totaled ($4.7) million and $3.8 million for fiscal 2019 and 2018, respectively. Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss Comprehensive income (loss) includes net income (loss) as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. Our only elements of other comprehensive income (loss) are foreign currency translation adjustments and changes in unrealized gains (losses) on marketable securities. Accumulated other comprehensive loss on the consolidated balance sheets as of January 31, 2019 and 2018, consists of foreign currency translation adjustments of ($3.4) million and ($5.4) million, respectively, Revenue Recognition On February 1, 2018, we adopted the new revenue standard, discussed below under the heading “Recently Adopted Accounting Pronouncements”, which amended revenue recognition principles and provides a single, comprehensive set of criteria for revenue recognition within and across all industries. The new revenue standard provides a five-step framework whereby revenue is recognized when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that we determine are within the scope of the new revenue standard, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when collectability of the consideration to which we are entitled in exchange for the goods or services we transfer to the customer is determined to be probable. Our revenue is derived from sales of hardware, software licenses, professional services, and maintenance fees related to the hardware and our software licenses. Our contracts often contain multiple performance obligations. For contracts with multiple performance obligations, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. If the transaction price contains discounts or we expect to provide future price concessions, these elements are considered when determining the transaction price prior to allocation. Variable fees within the transaction price are estimated and recognized as revenue when we satisfy our performance obligations to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. If the contract grants the client the option to acquire additional products or services, we assess whether or not any discount on the products and services is in excess of levels normally available to similar clients and, if so, we account for that discount as an additional performance obligation. Hardware We have concluded that hardware is either (1) a distinct performance obligation as the client can benefit from the product on its own or (2) a combined performance obligation with software licenses. This conclusion is dependent on the nature of the promise to the customer. In either scenario, hardware revenue is typically recognized at a point in time when control is transferred to the client, which is defined as the point in time when the client can use and benefit from the hardware. In situations where the hardware is distinct, it is delivered before services are provided and is functional without services, therefore the point in time when control is transferred is upon delivery or acceptance by the customer. When hardware and software are combined, we have determined stand-alone selling price for hardware utilizing the relative allocation method based on observable evidence. Software licenses We have concluded that our software licenses are either (1) a distinct performance obligation as the client can benefit from the software on its own or (2) a combined performance obligation with hardware, depending on the nature of the promise to the customer. In either scenario software license revenue is typically recognized at a point in time when control is transferred to the client, which is defined as the point in time when the client can use and benefit from the license. The software license is delivered before related services are provided and is functional without services, updates, and technical support. Our license arrangements generally contain multiple performance obligations, including hardware, installation services, training, and maintenance. We have determined stand-alone selling price for software utilizing the relative allocation method based on observable evidence. Maintenance Maintenance revenue, which is included in services revenue in our consolidated statements of operations and comprehensive income (loss), includes revenue from client support and related professional services. Client support includes software upgrades on a when and-if available basis, telephone support, bug fixes or patches, and general hardware maintenance support. Maintenance is priced as a percentage of the list price of the related software license and hardware. We determined the standalone selling price of maintenance based on this pricing relationship and observable data from standalone sales of maintenance. We have identified three separate distinct performance obligations of maintenance: • Software upgrades and updates; • Technical support; and • Hardware support. These performance obligations are distinct within the contract and, although they are not sold separately, the components are not essential to the functionality of the other components. Each of the performance obligations included in maintenance revenue is a stand ready obligation that is recognized ratably over the passage of the contractual term, which is typically one year. Services Our services revenue is comprised of software license implementation services, engineering services, training and reimbursable expenses. We have concluded that services are distinct performance obligations, with the exception of engineering services. Engineering services may be provided on a stand-alone basis, or bundled with a license, when we are providing custom development. The stand-alone selling price for services in time and materials contracts is determined by observable prices in stand-alone services arrangements and recognized as revenue as the services are performed based on an input measure of hours incurred to total estimated hours. We estimate the stand-alone selling price for fixed price services based on estimated hours adjusted for historical experience, at time and material rates charged in stand-alone services arrangements. Revenue for fixed price services is recognized over time as the services are provided based on an input measure of hours incurred to total estimated hours. Contract modifications We occasionally enter into amendments to previously executed contracts that constitute contract modifications. We assess each of these contract modifications to determine: • If the additional products and services are distinct from the product and services in the original arrangement, and • If the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either a prospective basis as a termination of the existing contract and the creation of a new contract, or a cumulative catch-up basis. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Once we determine the performance obligations, we determine the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. We then allocate the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method. The corresponding revenue is recognized as the related performance obligations are satisfied as discussed in the revenue categories above. Judgment is required to determine the standalone selling price for each distinct performance obligation. We determine standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. With the exception of travel and entertainment expenses, our contracts do not generally include a variable component to the transaction price. With certain statements of work, we explicitly state that we are to be reimbursed for reasonable travel and entertainment expenses incurred as part of the delivery of professional services. In the cases when we are entitled to collect all travel and entertainment expenses incurred, an estimate of the fulfillment costs is made at the onset of the contract in order to determine the transaction price. The revenue associated with travel and entertainment expenses is then recognized over time along with the professional services. Some of our contracts have payment terms that differ from the timing of revenue recognition which requires us to assess whether the transaction price for those contracts include a significant financing component. We have elected the practical expedient that permits an entity to not adjust for the effects of a significant financing component if we expect that at the contract inception, the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. For those contracts in which the period exceeds the one-year threshold, this assessment, as well as the quantitative estimate of the financing component and its relative significance, requires judgment. We estimate the significant financing component provided to our customers with extended payment terms by determining the present value of the future payments by applying a discount rate that reflects the customer’s creditworthiness. Contract Balances Contract assets consist of unbilled revenue which is recognized as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Unbilled receivables are expected to be billed and collected within one year. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition. Costs to Obtain and Fulfill a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that commissions and special incentive payments (“Spiffs”) for hardware and software maintenance and support and professional services paid under our sales incentive programs meet the requirements to be capitalized under ASC 340-40. Costs to obtain a contract are amortized as selling and marketing expense over the expected period of benefit in a manner that is consistent with the transfer of the related goods or services to which the asset relates. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract and the estimate of the amortization period. The commissions and Spiffs related to professional services are amortized over time, as work is completed. The commissions and Spiffs for hardware and software maintenance are amortized over the life of the customer, which is estimated to be five years. These costs are periodically reviewed for impairment. We determined that no impairment existed as of January 31, 2019. We have elected to apply the practical expedient and recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. We capitalize incremental costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract, and (iii) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs include direct labor for support services, software enhancements, reimbursable expenses, and professional services for customized software development costs. The revenue associated with the support services, software enhancements, and reimbursable expenses is recognized ratably over time therefore the costs associated are expensed as incurred. The professional services associated with the customized software are not recognized until completion. As such, the professional services costs are capitalized and recognized upon completion of the services. Accounting for Stock-Based Compensation We measure stock options and other stock-based awards granted to employees and directors based on their fair value on the d |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The following tables set forth our financial assets that were accounted for at fair value on a recurring basis. There were no fair value measurements of our financial assets using level 3 inputs for the periods presented: Fair Value at January 31, 2019 Using Total Level 1 Level 2 (Amounts in thousands) Assets: Cash equivalents $ 2,887 $ 2,724 $ 163 Marketable securities: U.S. Treasury Notes and bonds 7,072 7,072 — U.S. Agency bonds 992 — 992 Corporate bonds 2,295 — 2,295 Total $ 13,246 $ 9,796 $ 3,450 Fair Value at January 31, 2018 Using Total Level 1 Level 2 (Amounts in thousands) Assets: Cash equivalents $ 4,568 $ — $ 4,568 Marketable securities: U.S. Treasury Notes and bonds 3,717 3,717 — U.S. Agency bonds 2,983 — 2,983 Corporate bonds 1,740 — 1,740 Total $ 13,008 $ 3,717 $ 9,291 Cash equivalents include money market funds and U.S. treasury bills. Marketable securities by security type consisted of the following: January 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Amounts in thousands) U.S. Treasury Notes and bonds $ 7,055 $ 17 $ — $ 7,072 U.S. Agency bonds 1,001 — (9 ) 992 Corporate bonds 2,308 — (13 ) 2,295 $ 10,364 $ 17 $ (22 ) $ 10,359 January 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Amounts in thousands) U.S. Treasury Notes and bonds $ 3,741 $ — $ (24 ) $ 3,717 U.S. Agency bonds 2,993 9 (19 ) 2,983 Corporate Bonds 1,760 — (20 ) 1,740 $ 8,494 $ 9 $ (63 ) $ 8,440 As of January 31, 2019, marketable securities consisted of investments that mature within one year, with the exception of investments with a fair value of $6.3 million that mature between one and three years. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 4 . Acquisitions In fiscal 2017, we acquired 100% of the outstanding shares of DCC Labs in exchange for an aggregate of $2.7 million in newly issued shares of our common stock and $5.2 million in cash, net of cash acquired, resulting in a total net purchase price of $7.9 million. DCC Labs is a developer of set-top and multiscreen device software. On February 6, 2019, we acquired 100% of the outstanding shares of Xstream A/S in exchange for an aggregate of $0.9 million in shares of our common stock and $4.6 million in cash, resulting in a total purchase price of $5.5 million. Xstream is an OTT video and TV cloud platform provider that serves more than five million active subscribers globally (see Note 15). |
Consolidated Balance Sheet Deta
Consolidated Balance Sheet Detail | 12 Months Ended |
Jan. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Balance Sheet Detail | 5. Consolidated Balance Sheet Detail Inventory Inventory consists of the following: January 31, 2019 2018 (Amounts in thousands) Components and assemblies $ 763 $ 426 Finished products 161 240 Total inventory $ 924 $ 666 Property, plant and equipment, net Property, plant and equipment, net consists of the following: January 31, 2019 2018 (Amounts in thousands) Buildings $ 3,467 $ 11,839 Land 2,780 2,780 Computer equipment, software and demonstration equipment 12,316 12,770 Service and spare components 1,158 1,158 Office furniture and equipment 738 774 Leasehold improvements 531 537 20,990 29,858 Less: Accumulated depreciation and amortization (13,798 ) (20,387 ) Total property, plant and equipment, net $ 7,192 $ 9,471 As a result of our impairment analysis in the fourth quarter of 2019, we recorded an impairment charge of $1.2 million to reduce the carrying value of our building to $3.5 million (see Note 6). Depreciation and amortization expense of property and equipment was $1.3 million and $2.3 million for the years ended January 31, 2019 and 2018, respectively. Accrued expenses Accrued expenses consist of the following: January 31, 2019 2018 (Amounts in thousands) Accrued employee compensation and benefits $ 1,866 $ 4,657 Accrued professional fees 1,521 1,092 Sales tax and VAT payable 1,502 4,001 Income taxes payable — 2,869 Accrued restructuring (Note 7) 653 225 Accrued other 2,220 2,535 Total accrued expenses $ 7,762 $ 15,379 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. 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 we identify certain triggering events or circumstances that would more likely than not reduce the estimated fair value of the goodwill below its carrying amount. Goodwill (Amounts in thousands) Balance as of January 31, 2017: $ 23,287 Cumulative translation adjustment 2,292 Balance as of January 31, 2018: 25,579 Cumulative translation adjustment (1,324 ) Loss on impairment (15,502 ) Balance as of January 31, 2019: $ 8,753 In the fourth and second quarters of fiscal 2019, we performed impairment reviews of goodwill and long-lived assets. The impairment reviews were triggered by declines in the stock price, actual operating results and revised forecasts, which we considered to be triggering events for such reviews. As a result of the quantitative impairment tests performed in the second quarter of fiscal 2019, we determined that the estimated fair value of goodwill and long-lived assets exceeded their carrying value. Therefore, no impairment charges on our goodwill or other long-lived assets were recorded. In the fourth quarter we utilized actual results for the full fiscal 2019 and revised forecasts which were impacted by actual results in our impairment test (using discounted cash flow analyses as discussed below). As a result of the quantitative impairment tests performed in the fourth quarter of fiscal 2019, we determined that the carrying value of goodwill and long-lived assets exceeded their fair value, therefore we recorded an impairment charge to reduce the carrying value of the building, included in property, plant and equipment, the remaining net book value of intangible assets and goodwill to fair value. We performed our quantitative goodwill impairment test, utilizing the single-step approach to compare the carrying value of the reporting unit to its estimated fair value. We considered three generally accepted approaches for valuing businesses: the income approach, the market approach and the asset-based (cost) approach to arrive at fair value. Based on our particular facts and circumstances, we elected to rely on the income and market approach. We calculated the impairment charge using a discounted cash flow analysis, a form of the income approach and the guideline public company method, a form of the market approach. The discounted cash flow analysis relied on certain assumptions regarding future net free cash flows based on industry market data, historical performance and expected future performance. Future net free cash flows were discounted to present value using a risk-adjusted discount rate, which reflects the Weighted Average Cost of Capital (“WACC”). The WACC was developed using information from same or similar industry participants and publicly available market data. The guideline public company method examined the trading multiples of similarly publicly traded companies as they related to our operating metrics As a result of the impairment test, we recorded an impairment charge of $15.5 million to reduce goodwill from $24.3 million to $8.8 million, based on the difference between our carrying value, after accounting for the impairment charges of long-lived assets, and our fair value determined using a discounted cash flow approach. Our accumulated impairments losses as of January 31, 2019 and 2018 were $54.8 million and $39.3 million, respectively. As a result of the impairment tests, we recorded an impairment charge of $1.2 million to reduce the carrying value of our building of $4.7 million to $3.5 million and recorded an impairment charge of $0.3 million to reduce the carrying value of intangible assets of $0.3 million to zero, representing fair value of these long-lived assets. Fair value for the building was determined using market data and fair value of the intangible assets was determined using a discounted cash flow approach. Intangible assets, net Intangible assets, net, consisted of the following at January 31, 2018: January 31, 2018 Gross Accumulated Amortization Net (Amounts in thousands) Finite-lived intangible assets: Customer contracts $ 30,818 $ (29,836 ) $ 982 Non-compete agreements 2,639 (2,635 ) 4 Completed technology 11,479 (11,203 ) 276 Trademarks, patents and other 7,189 (7,148 ) 41 Total finite-lived intangible assets $ 52,125 $ (50,822 ) $ 1,303 As a result of our impairment analysis in the fourth quarter of fiscal 2019, we recorded an impairment charge of $0.3 million to reduce the carrying value of intangible assets to zero. We recognized amortization expense of intangible assets in cost of revenue and operating expense categories as follows: For the Fiscal Year Ended January 31, 2019 2018 (Amounts in thousands) Cost of product revenue $ 28 $ 106 Selling and marketing 687 1,273 Research and development 181 180 $ 896 $ 1,559 We recognized $0.7 million and $0.9 million of amortization expense in cost of service revenue during fiscal 2019 and 2018, respectively, of internally developed software, included in other assets on the consolidated balance sheets. We did not capitalize additional costs in fiscal 2019 or 2018 and, at January 31, 2019, the net book value of internally developed software is zero. |
Severance and Restructuring Cos
Severance and Restructuring Costs | 12 Months Ended |
Jan. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Severance and Restructuring Costs | 7. Severance and Restructuring Costs Severance Costs During fiscal 2019, we incurred additional severance charges not related to a restructuring plan of $0.8 million, primarily from the departure of 19 former employees. During fiscal 2018, we incurred additional severance charges not related to a restructuring plan of $0.5 million, primarily from the departure of 14 former employees. Restructuring Costs During fiscal 2019, we incurred restructuring charges of $1.6 million, primarily for employee-related benefits for terminated employees. In September 2018, we announced that we implemented cost-savings actions during the third quarter of fiscal 2019 (the “2019 Restructuring Program”). The primary element of this restructuring program was staff reductions across all of our functions and geographic areas and we expect the program to be completed by the end of the first fiscal quarter of 2020. Annualized cost savings are expected to be over $6 million once completed and severance and restructuring charges are expected to be approximately $2 million. During fiscal 2018, we incurred restructuring charges of $4.2 million primarily from employee-related benefits for terminated employees and costs to close facilities related to our restructuring program implemented in fiscal 2017. During the third quarter of fiscal 2017, we implemented a restructuring program (the “2017 Restructuring Program”) with the purpose of reducing costs and assisting in restoring SeaChange to profitability and positive cash flow. This program included measures intended to allow us to more efficiently operate in a leaner, more direct cost structure. These measures included reductions in workforce, consolidation of facilities, transfers of certain business processes to lower cost regions and reduction in third-party service costs. The 2017 Restructuring Plan was substantially complete as of January 31, 2018. Since its implementation, we recognized $7.2 million in restructuring charges related to the 2017 Restructuring Program The following table shows the change in balances of our accrued restructuring reported as a component of other accrued expenses on the consolidated balance sheets: Employee-Related Benefits Closure of Leased Facilities Other Restructuring Total (Amounts in thousands) Accrual balance as of January 31, 2017 $ 785 $ 130 $ 108 $ 1,023 Restructuring charges incurred 2,973 796 387 4,156 Cash payments (3,733 ) (783 ) (466 ) (4,982 ) Other charges 36 (8 ) — 28 Accrual balance as of January 31, 2018 61 135 29 225 Restructuring charges incurred 1,565 7 36 1,608 Cash payments (965 ) (142 ) (65 ) (1,172 ) Other charges (8 ) — — (8 ) Accrual balance as of January 31, 2019 $ 653 $ — $ — $ 653 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2019 | |
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 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. Operating Leases We lease certain of our operating facilities, automobiles and office equipment under non-cancelable operating leases, which expire at various dates through fiscal 2024. Leases for our facilities typically contain standard commercial lease provisions, including renewal options and rent escalation clauses. Rental expense under operating leases was $1.2 million and $1.6 million for fiscal 2019 and 2018, respectively. Future commitments under minimum lease payments as of January 31, 2019 are as follows: For the Fiscal Years Ended January 31, Lease Commitments (Amounts in thousands) 2020 $ 956 2021 722 2022 475 2023 202 2024 25 Thereafter — Minimum operating lease payments $ 2,380 In the first quarter of fiscal 2020, we reduced our lease commitment for certain office space located in The Netherlands, which will result in a reduction to our lease commitments of $0.2 million in each of fiscal 2020 and fiscal 2021. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2019 | |
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 designated or issued as of January 31, 2019. Equity Plans 2011 Compensation and Incentive Plan. Our 2011 Compensation and Incentive Plan (the “2011 Plan”) provides for the grant of incentive stock options, nonqualified stock options, restricted stock, restricted stock units (“RSUs”), deferred stock units (“DSUs”), performance stock units (“PSUs”) and other equity based non-stock option awards as determined by the plan administrator to our officers, employees, consultants, and directors. 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. The number of shares authorized for issuance under the 2011 Plan is 9,300,000. Additionally, outstanding awards under the that expired, terminated, surrendered or canceled without having been fully exercised became available for issuance under the 2011 Plan. Nonemployee members of the Board of Directors may elect to receive DSUs in lieu of RSUs. 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. 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. Option awards granted under the 2011 Plan generally vest over a period of one to three years and expire ten years from the date of the grant. We have a Long-Term Incentive (“LTI”) Program, adopted in fiscal 2016, under which the named executive officers and other of our key employees may receive long-term equity-based incentive awards, which are intended to align the interests of our named executive officers and other key employees with the long-term interests of our stockholders and to emphasize and reinforce our focus on team success. Long-term equity-based incentive compensation awards are made in the form of stock options, RSUs and PSUs subject to vesting based in part on the extent to which employment continues. 2015 Employee Stock Purchase Plan Under our 2015 Employee Stock Purchase Plan (the “ESPP), six-month offering periods begin on October 1 and April 1 of each year during which eligible employees may elect to purchase shares of our common stock according to the terms of the offering . On each purchase date, eligible employees can 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. The maximum number of shares of our common stock authorized for sale under the ESPP is 1,150,000 shares of which 1,094,783 remain available under the ESPP as of January 31, 2019. Under the ESPP, 12,794 and 24,467 shares were purchased during fiscal 2019 and fiscal 2018, respectively. Stock Option Valuation Service-Based Options We measure the fair value of service-based options using the Black-Scholes option-pricing 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 the historical volatility of our common stock over a period of time equal to the expected term of the stock option. 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 following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option pricing model to determine the fair value of stock options granted: For the Fiscal Years Ended January 31, 2019 2018 Risk-free interest rate 2.6 % 2.4 % Expected volatility 46.8 % 41.0 % Expected dividend yield 0.0 % 0.0 % Expected term (in years) 6.0 6.0 Market-Based Options We have outstanding 800,000 market-based options issued in fiscal 2016 and fiscal 2017 to our CEO as of January 31, 2019. These stock options vest in approximately equal increments based upon the closing price of our common stock achieving a certain level and continued service conditions We measured the grant-date fair value of these options using a Monte Carlo simulation model and recognized the associated expense over the requisite service period. In February 2019, these options were forfeited upon the resignation of our CEO. We have not granted additional market-based options in fiscal 2019 or 2018. Stock Option Activity The following table summarizes our stock option activity: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of January 31, 2018 3,240,105 $ 3.94 8.00 $ 683,405 Granted 1,420,000 1.83 Exercised (20,937 ) 2.56 Forfeited (514,966 ) 3.49 Outstanding as of January 31, 2019 4,124,202 $ 3.28 6.96 $ 32,000 Vested and expected to vest as of January 31, 2019 3,324,203 $ 2.63 6.96 $ 32,000 Options exercisable as of January 31, 2019 974,793 $ 3.33 4.89 $ — The weighted average grant-date fair values of stock options granted during the years ended January 31, 2019 and 2018, was $0.86 per share and $1.34 per share, respectively. Stock Units We have granted RSUs and DSUs with service-based vesting criteria that generally vest over one to three years. We have also granted PSUs with performance-based and market-based vesting criteria. In fiscal 2019 and 2018, we granted an aggregate of 210,000 and 232,500 PSUs, respectively, to employees under the LTI Program. The PSUs vest in three equal annual installments upon the achievement of certain Company-specific goals in each of the three years. In fiscal 2017, we granted an aggregate of 307,963 PSUs to employees under the LTI Program, which vest at the end of a three-year period upon the fulfillment of the three-year service period and the achievement of a relative total shareholder return. We measured the grant-date fair value of these awards using a Monte Carlo simulation model and recognize the associated expense over the requisite service period, if fulfilled, regardless of the actual number of awards that vest. The following table summarizes our stock unit activity: Weighted Average Grant-Date Number of Shares Fair Value Unvested balance as of January 31, 2018 1,924,890 $ 4.89 Granted 616,250 1.99 Vested (277,385 ) 3.45 Forfeited (567,759 ) 5.35 Unvested balance as of January 31, 2019 1,695,996 $ 3.00 Stock-based Compensation We recognized stock-based compensation expense within the accompanying consolidated statements of operations and comprehensive income (loss) as follows: For the Fiscal Year Ended January 31, 2019 2018 (Amounts in thousands) Cost of revenue $ — $ 3 Research and development 186 102 Sales and marketing 373 360 General and administrative 2,380 2,231 $ 2,939 $ 2,696 As of January 31, 2019, unrecognized stock-based compensation expense related to unvested stock options was approximately $2.2 million, which is expected to be recognized over a weighted average period of 2.2 years. As of January 31, 2019, unrecognized stock-based compensation expense related to unvested RSUs and DSUs was $1.5 million, which is expected to be recognized over a weighted average amortization period of 1.8 years. As of January 31, 2019, unrecognized stock-based compensation expense related to unvested PSUs was $0.9 million, which is expected to be recognized over a weighted average amortization period of 2.1 years. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jan. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 10. Revenue from Contracts with Customers On February 1, 2018, we adopted ASC 606 Our products and services facilitate the aggregation, licensing, management and distribution of video and advertising content to cable television system operators, telecommunication companies, satellite operators and media companies. Offerings include and revenue is generated from the sales of software, hardware, professional services, maintenance and support in order to deploy SeaChange systems and provide ongoing functionality. These offerings can be sold on a standalone basis or as a component of a contract with multiple performance obligations. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price. The performance obligations include future credits, significant discounts and material rights in addition to the software, hardware, professional services, maintenance and support. The revenue for perpetual licenses to software applications and hardware is recognized upon delivery or acceptance by the customer. Product maintenance and technical support is recognized ratably over the stated and implied maintenance periods. The professional services are either fixed price or time and material contracts, and consist of installation and integration, customized development and customized software, training, and on-site managed services. The installation and integration is recognized over time based on an input measure of hours incurred to total estimated hours. The customized development and software is recognized at a point in time upon delivery and acceptance of the final software product. The training and the on-site managed services are recognized over the service period. Disaggregated Revenue The following table shows our revenue disaggregated by revenue stream for the year ended January 31, 2019: For the Years Ended January 31, 2019 2018 (Amounts in thousands) Product $ 20,655 $ 28,791 Professional services 13,908 18,316 Maintenance - first year 2,095 2,127 Maintenance - renewal 25,744 31,033 Total revenue $ 62,402 $ 80,267 Transaction Price Allocated to Future Performance Obligations The aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied or are partially satisfied as of January 31, 2019 is $24.2 million. This amount includes amounts billed for undelivered services that are included in deferred revenue. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 11. Segment and Geographic Information We have determined that we operate in one segment (see Note 2). Geographic Information The following summarizes revenue by customers’ geographic locations: For the Fiscal Years Ended January 31, 2019 % 2018 % (Amounts in thousands, except percentages) Revenue by customer's geographic locations: North America (1) $ 30,002 48% $ 32,409 40% Europe and Middle East 21,990 35% 39,177 49% Latin America 9,068 15% 7,379 9% Asia Pacific 1,342 2% 1,302 2% Total revenue $ 62,402 $ 80,267 (1) Includes total revenue for the United States for the periods shown as follows: For Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands, except percentages) US Revenue $ 23,582 $ 27,876 % of total revenue 38 % 35 % The following summarizes long-lived assets by geographic locations: January 31, 2019 % 2018 % (Amounts in thousands, except percentages) Long-lived assets by geographic locations (1): North America $ 7,148 93% $ 9,792 83% Europe and Middle East 446 6% 1,949 17% Asia Pacific 48 1% 48 0% Total long-lived assets by geographic location $ 7,642 $ 11,789 (1) Excludes marketable securities, long-term and goodwill. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The components of income (loss) from operations before income taxes are as follows: For the Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands) Domestic $ (16,087 ) $ (16,158 ) Foreign (23,933 ) 17,384 Income (loss) from operations before income taxes $ (40,020 ) $ 1,226 The components of the income tax (benefit) provision from operations are as follows: For the Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands) Current: Federal $ — $ (595 ) State 5 (18 ) Foreign (1,882 ) 2,473 Total (1,877 ) 1,860 Deferred: Foreign (141 ) (14,132 ) Total (141 ) (14,132 ) Income tax benefit $ (2,018 ) $ (12,272 ) 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, 2019 2018 (Amounts in thousands) Statutory U.S. federal tax rate $ (8,404 ) $ 415 State taxes, net of federal tax benefit 5 (4 ) Income not benefitted 3,664 481 Non-deductible stock compensation expense 267 158 Other non-deductible items (1) 147 (46 ) Innovative technology and development incentive (317 ) — Foreign tax rate differential (388 ) (2,014 ) Outside basis difference in foreign subsidiaries — (14,675 ) Goodwill impairment 3,647 — Tax Reform Act (2) — 3,882 Current fiscal year impact of FIN 48 (639 ) (469 ) Income tax (benefit) provision $ (2,018 ) $ (12,272 ) (1) Within the other line in the table above, other non-deductible items were $0.3 million and less than ($0.1) million for the fiscal years ended January 31, 2019 and 2018, respectively. These items have been aggregated with various adjustments related to differences in prior year U.S. and foreign tax provisions and the actual returns filed. (2) Due to the impact of the one-time transition tax on the deemed repatriation of accumulated foreign earnings required by the Tax Reform Act discussed below. The Tax Reform Act was signed into United States tax law on December 22, 2017. The Tax Reform Act significantly changed the U.S. corporate income tax regime by, amongst other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, imposing a limitation of the deduction for net operating losses to 80% of annual taxable income and eliminating net operating loss carrybacks, in each case, for losses arising in taxable years beginning after December 31, 2017 (though any such net operating losses may be carried forward indefinitely) On December 22, 2017, the Securities and Exchange Commission issued guidance under SAB 118, which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Accordingly, we recorded an estimate of $3.9 million of Transition Tax expense, offset completely by tax losses, and $17.1 million due to a remeasurement of our net deferred tax assets offset by valuation allowance, during the year ended January 31, 2018 which reflected provisional amounts for those specific income tax effects of the Tax Reform Act. As permitted under SAB 118, we recorded provisional estimates for the impact of the Tax Reform Act during the year ended January 31, 2018, and finalized our accounting analysis based on the guidance, interpretations, and data available as of January 31, 2019 resulting in immaterial changes to our provisional amounts. We are subject to additional requirements of the Tax Reform Act during the year ended January 31, 2019. Those provisions include a tax on global intangible low-taxed income (“GILTI”), a limitation on certain executive compensation, and other immaterial provisions. We have elected to account for GILTI as a period cost, and therefore included GILTI expense in our effective tax rate calculation. In the current year GILTI had no tax impact. The components of deferred income taxes are as follows: January 31, 2019 2018 (Amounts in thousands) Deferred tax assets: Accruals and reserves $ 1,518 $ 963 Deferred revenue 760 476 Stock-based compensation expense 1,373 1,134 U.S. federal, state and foreign tax credits 7,949 8,070 Property and equipment 278 71 Intangible assets 54 (201 ) Loss carryforwards 29,909 27,642 Deferred tax assets 41,841 38,155 Less: Valuation allowance (41,979 ) (38,305 ) Net deferred tax assets (138 ) (150 ) Deferred tax liabilities: Other 46 47 Total net deferred tax liabilities $ (184 ) $ (197 ) At January 31, 2019, we had federal, state and foreign net operating loss carry forwards of $118.0 million, $185.8 million and $2.1 million respectively, which can be used to offset future tax liabilities and expire at various dates beginning in fiscal 2020. Utilization of these net operating loss carry forwards may be limited pursuant to provisions of the respective local jurisdiction. In addition, at January 31, 2019, we had federal and state research and development credit carry forwards of $3.8 million and $1.8 million respectively, and state investment tax credit carry forwards of $0.2 million. We have foreign tax credit carry forwards of $2.3 million, which are available to reduce future federal regular income taxes. These credits expire at various dates beginning in fiscal 2019, except for $0.2 million in credits that have an unlimited carryforward period. 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 $42.0 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 $3.7 As of January 31, 2019, we maintain our assertion that all of our foreign earnings, except those related to our Irish operations, are to be permanently reinvested outside the United States. A reconciliation of the total amounts of gross unrecognized tax benefits, is as follows: For the Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands) Balance of gross unrecognized tax benefits, beginning of period $ 4,856 $ 5,093 Decrease due to expiration of statute of limitation (477 ) (389 ) Effect of currency translation (61 ) 152 Balance of gross unrecognized tax benefits, end of period $ 4,318 $ 4,856 As of January 31, 2019, we have no unrecognized tax benefits, that if recognized, would reduce income tax expense in fiscal 2020. We recognized interest and penalties related to unrecognized tax benefits in income tax (benefit) provision on our consolidated statements of operations and comprehensive income (loss). As of January 31, 2019 and 2018, total gross interest accrued was $0.1 million and $0.1 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2019 | |
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. 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 according to the local plans specific to each foreign location. Amounts contributed will vary. During fiscal 2019 and 2018, we contributed $0.5 million, and $1.1 million, respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 14. Net Income (Loss) Per Share The following table sets forth our computation of basic and diluted net income (loss) per common share: For Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands, except per share data) Net income (loss) $ (38,002 ) $ 13,498 Weighted average common shares used in computing net income (loss) per share - basic 35,691 35,412 Dilutive potential common shares — 273 Weighted average common shares used in computing net income (loss) per share - dilutive 35,691 35,685 Net income (loss) per share Basic $ (1.06 ) $ 0.38 Diluted $ (1.06 ) $ 0.38 The number of common shares used in the computation of diluted net income (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: For Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands) Stock options 3,245 1,522 Restricted stock units 264 159 Deferred stock units 18 13 Performance stock units 567 297 4,094 1,991 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events On February 6, 2019, we acquired Xstream A/S for $4.6 million in cash and 541,738 shares of common stock for a total transaction value of $5.5 million. Xstream provides a managed service, OTT video solution that serves more than five million active subscribers globally. We are in the process of gathering information to complete our preliminary valuation of certain assets and liabilities acquired as part of the transaction to complete acquisition accounting On February 28, 2019, we entered into a Cooperation Agreement with TAR Holdings LLC and Karen Singer (collectively, “TAR Holdings”). As of the date of the Cooperation Agreement, TAR Holdings beneficially owned approximately 20.6% of our outstanding common stock. Pursuant to the Cooperation Agreement, we agreed to set the size of the Board at eight members, appoint Robert Pons to the Board as a Class II director with a term to expire at the 2019 annual meeting of stockholders, and appoint Jeffrey Tuder to the Board as a Class III director with a term to expire at the 2020 annual meeting of stockholders. Mr. Pons and Mr. Tuder were accordingly appointed to our Board upon execution of the Cooperation Agreement on February 28, 2019. On March 4, 2019, our Board approved and adopted a Tax Benefits Preservation Plan to deter acquisitions of our common stock that would potentially limit our ability to use net operating loss carryforwards and certain other tax attributes (“NOLs”) to reduce our potential future federal income tax obligations. In connection with the Tax Benefits Preservation Plan, we declared a dividend of one preferred share purchase right for each share of our common stock issued and outstanding as of March 15, 2019 to our stockholders of record on that date. The Tax Benefits Preservation Plan expires by its terms if not approved by our stockholders at our 2019 annual meeting of stockholders. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | SEACHANGE INTERNATIONAL, INC. For the Fiscal Years Ended January 31, 2019 and 2018 Additions Description Balance at beginning of period Charged to costs and expenses Charged to other accounts Deductions and write- offs Balance at end of period (Amounts in thousands) Accounts Receivable Allowance: Year ended January 31, 2019 $ 16 $ 1,779 $ — $ (1,218 ) $ 577 Year ended January 31, 2018 $ 876 $ 79 $ 10 $ (949 ) $ 16 Deferred Tax Assets Valuation Allowance: Year ended January 31, 2019 $ 38,305 $ 3,674 $ — $ — $ 41,979 Year ended January 31, 2018 $ 58,134 $ (19,829 ) $ — $ — $ 38,305 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2019 | |
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. |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, those related to revenue recognition, allowance for doubtful accounts, goodwill and intangible assets, impairment of long-lived assets, accounting for income taxes, and the valuation of stock-based awards. We base our estimates on historical experience, known trends and other market-specific or relevant factors that are believed to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. |
Restricted Cash | Restricted cash Restricted cash represents cash that is restricted as to withdrawal or usage and consists primarily of cash held as collateral for performance obligations with customers. |
Marketable Securities | Marketable Securities Our investments, consisting of debt securities, are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity (deficit). Realized gains and losses and declines in value determined to be other than temporary are based on the specific identification method and are included as a component of other income (expense), net in the consolidated statements of operations and comprehensive income (loss). We evaluate our investments with unrealized losses for other-than-temporary impairment. When assessing investments for other-than-temporary declines in value, we consider such factors as, among other things, how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, our ability and intent to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value and market conditions in general. If any adjustment to fair value reflects a decline in the value of the investment that we consider to be “other than temporary,” we reduce the investment to fair value through a charge to the statement of operations and comprehensive income (loss). No such adjustments were necessary during the periods presented. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. Our cash equivalents and marketable securities are carried at fair value determined according to the fair value hierarchy described above (see Note 3). The carrying values of our accounts and other receivables, unbilled receivables, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. |
Concentration of Credit Risk and of Significant Customers | Concentration of Credit Risk and of Significant Customers Financial instruments which potentially expose us to concentrations of credit risk include cash and cash equivalents, marketable securities and accounts receivable. We have cash investment policies which, among other things, limit investments to investment-grade securities. We restrict our cash equivalents and 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. We sell our software products and services worldwide primarily to service providers, consisting of operators, telecommunications companies, satellite operators and broadcasters. Two customers accounted for 24% and 11%, respectively, of total revenue in fiscal 2019. One customer accounted for 37% of total revenue in fiscal 2018. Two customers accounted for 44% and 15%, respectively, of the accounts receivable balance as of January 31, 2019. One customer accounted for 49% of the accounts receivable balance as of January 31, 2018. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts 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 income (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. 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 Inventory is valued at the lower of cost or net realizable value. Cost is computed using the first-in, first-out method. We regularly review inventory quantities on-hand for excess and obsolete inventory and, when circumstances indicate, record charges to write down inventories to their estimated net realizable value, after evaluating historical sales, future demand, market conditions and expected product life cycles. Such charges are classified as cost of revenue in the consolidated |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of land, buildings, office furniture and equipment, computer equipment, software and demonstration equipment, service and spare components, and leasehold improvements. Deployed assets are included in computer equipment, and assemblies used to service our installed base are included in service and spare components. Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated lives of the related assets. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is reflected in the consolidated statements of operations. Expenditures for maintenance and repairs are charged to expense as incurred. Estimated useful lives of assets are as follows: Buildings 20 years Office furniture and equipment 5 years Computer equipment, software and demonstration equipment 3 years Service and spare components 5 years Leasehold improvements Shorter of lease term or estimated useful life |
Investments in Affiliates | Investments in Affiliates Our investments in affiliates included investments accounted for under the cost method of accounting as the investments represented less than a 20% ownership interest of the common shares of the affiliate. In connection with the sale of our investment in Layer3 TV, Inc. (“Layer 3”), a company in which we had a cost-method investment, we received $4.6 million in fiscal 2018. We recorded a gain on sale of investment in affiliate of $2.6 million, included in other income (expense) in our consolidated statements of operations and comprehensive income (loss) in fiscal 2018. We were entitled to additional payments of up to $2.1 million, subject to satisfaction of provisions associated with the transaction, of which we received $0.2 million, included in other income (expense) in fiscal 2019. We recorded a gain on sale of investment in affiliate of $0.2 million in our consolidated statements of operations and comprehensive income (loss) in fiscal 2019 related to this payment. We cannot provide assurance as to the timing of or whether we will receive additional such payments. The balance of our investments in affiliates was zero as of January 31, 2019 and 2018. |
Segment 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. |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets We record goodwill when consideration paid in a business acquisition exceeds the value of the net assets acquired. Our estimates of fair value are based upon assumptions believed to be reasonable at that time but that are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate, and unanticipated events or circumstances may occur, which may affect the accuracy or validity of such assumptions, estimates or actual results. Goodwill is not amortized, but rather is tested for impairment annually in our third quarter beginning August 1 st such as the ones mentioned in impairments of long-lived assets existence of potential impairment and the amount of impairment loss by comparing the fair value of the reporting unit with its carrying amount, including goodwill. Intangible assets are recorded at their estimated fair values at the date of acquisition. We amortize acquired intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis. |
Internal Use Software | Internal Use Software 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. We expense 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. Maintenance and training costs are expensed as incurred. |
Impairment of Long-Live Assets | Impairment of Long-Lived Assets Long-lived assets primarily consist of property, plant and equipment and intangible assets with finite lives. Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Recoverability of long-lived assets or groups of assets is assessed based on a comparison of the carrying amount to the estimated future undiscounted cash flows. If estimated future undiscounted net cash flows are less than the carrying amount, the asset is considered impaired and expense is recorded at an amount required to reduce the carrying amount to fair value. Determining the fair value of long-lived assets includes significant judgment by management, and different judgments could yield different results. We assess the useful lives and possible impairment of existing recognized long-lived assets whenever events or changes in circumstances occur that indicate that it is more likely than not that an impairment has occurred. We test long-lived assets for impairment by comparing the carrying amount to the sum of the net undiscounted cash flows expected to be generated by the asset whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the carrying amount of the asset exceeds its net undiscounted cash flows, then an impairment loss is recognized for the amount by which the carrying amount exceeds its fair value. We use a discounted cash flow approach or other methods, if appropriate, to assess fair value. Factors considered important which could trigger a review include: • significant underperformance relative to historical or projected future operating results; • significant changes in the manner of use of the acquired assets or the strategy for our overall business; • identification of other impaired assets within a reporting unit; • significant negative industry or economic trends; • a significant decline in our stock price for a sustained period; and • a decline in our market capitalization relative to net book value. Determining whether a triggering event has occurred involves significant judgment. (see Note 6). |
Income Taxes | Income Taxes Income taxes comprise current and deferred income tax. Income taxes are recognized in the consolidated statements of operations and comprehensive income (loss) except to the extent that it relates to items recognized directly within equity or in other comprehensive income (loss). Income taxes payable, which is included in accrued expenses in our consolidated balance sheets, is the expected taxes 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. Our policy is to classify interest and penalties related to unrecognized tax benefits, if and when required, as a component of income tax (benefit) provision, in our consolidated statements of operations and comprehensive income (loss). We have made a policy election to treat the GILTI tax as a period expense. Because there are several 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, remaining lease obligations and 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 (see Note 7). |
Foreign Currency Translation | Foreign Currency Translation The functional currency of each of our foreign subsidiaries is the currency of the local country unless otherwise determined that the U.S. dollar would serve as a more appropriate functional currency given the economic operations of the foreign subsidiary We also incur transaction gains and losses resulting from intercompany transactions as well as transactions with customers or vendors denominated in currencies other than the functional currency of the legal entity in which the transaction is recorded. Foreign currency transaction gains (losses) are included in the consolidated statements of operations and comprehensive income (loss) as a component of other income (expense) and totaled ($4.7) million and $3.8 million for fiscal 2019 and 2018, respectively. |
Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss | Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss Comprehensive income (loss) includes net income (loss) as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. Our only elements of other comprehensive income (loss) are foreign currency translation adjustments and changes in unrealized gains (losses) on marketable securities. Accumulated other comprehensive loss on the consolidated balance sheets as of January 31, 2019 and 2018, consists of foreign currency translation adjustments of ($3.4) million and ($5.4) million, respectively, |
Revenue Recognition | Revenue Recognition On February 1, 2018, we adopted the new revenue standard, discussed below under the heading “Recently Adopted Accounting Pronouncements”, which amended revenue recognition principles and provides a single, comprehensive set of criteria for revenue recognition within and across all industries. The new revenue standard provides a five-step framework whereby revenue is recognized when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that we determine are within the scope of the new revenue standard, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when collectability of the consideration to which we are entitled in exchange for the goods or services we transfer to the customer is determined to be probable. Our revenue is derived from sales of hardware, software licenses, professional services, and maintenance fees related to the hardware and our software licenses. Our contracts often contain multiple performance obligations. For contracts with multiple performance obligations, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. If the transaction price contains discounts or we expect to provide future price concessions, these elements are considered when determining the transaction price prior to allocation. Variable fees within the transaction price are estimated and recognized as revenue when we satisfy our performance obligations to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. If the contract grants the client the option to acquire additional products or services, we assess whether or not any discount on the products and services is in excess of levels normally available to similar clients and, if so, we account for that discount as an additional performance obligation. Hardware We have concluded that hardware is either (1) a distinct performance obligation as the client can benefit from the product on its own or (2) a combined performance obligation with software licenses. This conclusion is dependent on the nature of the promise to the customer. In either scenario, hardware revenue is typically recognized at a point in time when control is transferred to the client, which is defined as the point in time when the client can use and benefit from the hardware. In situations where the hardware is distinct, it is delivered before services are provided and is functional without services, therefore the point in time when control is transferred is upon delivery or acceptance by the customer. When hardware and software are combined, we have determined stand-alone selling price for hardware utilizing the relative allocation method based on observable evidence. Software licenses We have concluded that our software licenses are either (1) a distinct performance obligation as the client can benefit from the software on its own or (2) a combined performance obligation with hardware, depending on the nature of the promise to the customer. In either scenario software license revenue is typically recognized at a point in time when control is transferred to the client, which is defined as the point in time when the client can use and benefit from the license. The software license is delivered before related services are provided and is functional without services, updates, and technical support. Our license arrangements generally contain multiple performance obligations, including hardware, installation services, training, and maintenance. We have determined stand-alone selling price for software utilizing the relative allocation method based on observable evidence. Maintenance Maintenance revenue, which is included in services revenue in our consolidated statements of operations and comprehensive income (loss), includes revenue from client support and related professional services. Client support includes software upgrades on a when and-if available basis, telephone support, bug fixes or patches, and general hardware maintenance support. Maintenance is priced as a percentage of the list price of the related software license and hardware. We determined the standalone selling price of maintenance based on this pricing relationship and observable data from standalone sales of maintenance. We have identified three separate distinct performance obligations of maintenance: • Software upgrades and updates; • Technical support; and • Hardware support. These performance obligations are distinct within the contract and, although they are not sold separately, the components are not essential to the functionality of the other components. Each of the performance obligations included in maintenance revenue is a stand ready obligation that is recognized ratably over the passage of the contractual term, which is typically one year. Services Our services revenue is comprised of software license implementation services, engineering services, training and reimbursable expenses. We have concluded that services are distinct performance obligations, with the exception of engineering services. Engineering services may be provided on a stand-alone basis, or bundled with a license, when we are providing custom development. The stand-alone selling price for services in time and materials contracts is determined by observable prices in stand-alone services arrangements and recognized as revenue as the services are performed based on an input measure of hours incurred to total estimated hours. We estimate the stand-alone selling price for fixed price services based on estimated hours adjusted for historical experience, at time and material rates charged in stand-alone services arrangements. Revenue for fixed price services is recognized over time as the services are provided based on an input measure of hours incurred to total estimated hours. Contract modifications We occasionally enter into amendments to previously executed contracts that constitute contract modifications. We assess each of these contract modifications to determine: • If the additional products and services are distinct from the product and services in the original arrangement, and • If the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either a prospective basis as a termination of the existing contract and the creation of a new contract, or a cumulative catch-up basis. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Once we determine the performance obligations, we determine the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. We then allocate the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method. The corresponding revenue is recognized as the related performance obligations are satisfied as discussed in the revenue categories above. Judgment is required to determine the standalone selling price for each distinct performance obligation. We determine standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. With the exception of travel and entertainment expenses, our contracts do not generally include a variable component to the transaction price. With certain statements of work, we explicitly state that we are to be reimbursed for reasonable travel and entertainment expenses incurred as part of the delivery of professional services. In the cases when we are entitled to collect all travel and entertainment expenses incurred, an estimate of the fulfillment costs is made at the onset of the contract in order to determine the transaction price. The revenue associated with travel and entertainment expenses is then recognized over time along with the professional services. Some of our contracts have payment terms that differ from the timing of revenue recognition which requires us to assess whether the transaction price for those contracts include a significant financing component. We have elected the practical expedient that permits an entity to not adjust for the effects of a significant financing component if we expect that at the contract inception, the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. For those contracts in which the period exceeds the one-year threshold, this assessment, as well as the quantitative estimate of the financing component and its relative significance, requires judgment. We estimate the significant financing component provided to our customers with extended payment terms by determining the present value of the future payments by applying a discount rate that reflects the customer’s creditworthiness. Contract Balances Contract assets consist of unbilled revenue which is recognized as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Unbilled receivables are expected to be billed and collected within one year. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition. Costs to Obtain and Fulfill a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that commissions and special incentive payments (“Spiffs”) for hardware and software maintenance and support and professional services paid under our sales incentive programs meet the requirements to be capitalized under ASC 340-40. Costs to obtain a contract are amortized as selling and marketing expense over the expected period of benefit in a manner that is consistent with the transfer of the related goods or services to which the asset relates. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract and the estimate of the amortization period. The commissions and Spiffs related to professional services are amortized over time, as work is completed. The commissions and Spiffs for hardware and software maintenance are amortized over the life of the customer, which is estimated to be five years. These costs are periodically reviewed for impairment. We determined that no impairment existed as of January 31, 2019. We have elected to apply the practical expedient and recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. We capitalize incremental costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract, and (iii) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs include direct labor for support services, software enhancements, reimbursable expenses, and professional services for customized software development costs. The revenue associated with the support services, software enhancements, and reimbursable expenses is recognized ratably over time therefore the costs associated are expensed as incurred. The professional services associated with the customized software are not recognized until completion. As such, the professional services costs are capitalized and recognized upon completion of the services. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation We measure stock options and other stock-based awards granted to employees and directors based on their fair value on the date of the grant and recognize compensation expense of those awards, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. We apply the straight-line method of expense recognition to all awards with only service-based vesting conditions and apply the graded-vesting method to all awards with both service-based and performance-based vesting conditions, commencing when achievement of the performance condition becomes probable |
Advertising Costs | Advertising Costs Advertising costs are charged to expense as incurred. Advertising costs were not material for fiscal 2019 and 2018. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of unrestricted common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the sum of the weighted average number of unrestricted common shares outstanding during the period and the weighted average number of potential common shares from the assumed exercise of stock options and the vesting of shares of restricted and deferred common stock units using the “treasury stock” method when the effect is not anti-dilutive. In periods in which we report a net loss, diluted net loss per share is the same as basic net loss per share. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) recognized when a customer obtains control of a promised good or service and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for the good or service. In addition, ASC 606 provides guidance on accounting for certain revenue related costs, including costs associated with obtaining and fulfilling a contract. ASC 606 may be applied using either a full retrospective approach, under which all years included in the financial statements will be presented under the revised guidance, or a modified retrospective approach, under which financial statements will be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities will recognize a cumulative catch-up adjustment to the opening balance of retained earnings at the effective date for contracts that still require performance by the entity at the date of adoption. For public entities, the guidance was effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Effective February 1, 2018, we adopted ASC 606 using the modified retrospective adoption model for all contracts not completed as of the date of adoption. The reported results for fiscal 2019 “Revenue Recognition,” As of January 31, 2018 February 1, 2018 Under ASC 605 Adjustment Under ASC 606 (Amounts in thousands) Assets Unbilled receivables $ 3,101 $ 137 $ 3,238 Prepaid expenses and other current assets (1) 3,557 824 4,381 Liabilities Deferred revenue 14,433 (1,358 ) 13,075 Equity Accumulated deficit (148,620 ) 2,319 (146,301 ) (1) Contract assets, short-term are included in prepaid expenses and other current assets in our consolidated balance sheet. The following tables summarize the effects of adopting ASC 606 on our consolidated financial statements during the year ended January 31, 2019: January 31, 2019 Balance Without As reported Adjustment Adoption of ASC 606 (Amounts in thousands) Assets Unbilled receivables $ 5,448 $ 1,557 $ 7,005 Prepaid expenses and other current assets (1) 6,033 (554 ) 5,479 Liabilities Deferred revenue 10,746 6,124 16,870 Equity Accumulated deficit (184,303 ) (5,120 ) (189,423 ) (1) Contract assets, short term are included in prepaid and other current assets in our consolidated balance sheet For the Year Ended January 31, 2019 Balance Without As reported Adjustment Adoption of ASC 606 (Amounts in thousands, except per share amounts) Revenue $ 62,402 $ (3,115 ) $ 59,287 Cost of revenue 25,072 (653 ) 24,419 Operating expenses 73,133 383 73,516 Loss from operations (35,803 ) (2,845 ) (38,648 ) Loss before income taxes (40,020 ) (2,845 ) (42,865 ) Income tax (benefit) provision (2,018 ) — (2,018 ) Net loss (38,002 ) (2,845 ) (40,847 ) Net loss per share: Basic $ (1.06 ) $ (0.08 ) $ (1.14 ) Diluted $ (1.06 ) $ (0.08 ) $ (1.14 ) For the Year Ended January 31, 2019 Balance Without As reported Adjustment Adoption of ASC 606 (Amounts in thousands) Cash used in operating activities: Net loss $ (38,002 ) $ (2,802 ) $ (40,804 ) Unbilled receivables (2,468 ) (1,557 ) (4,025 ) Prepaid expenses and other current assets (877 ) 554 (323 ) Deferred revenue (3,379 ) 6,124 2,745 Other operating activities (173 ) (2,319 ) (2,492 ) Total cash used in operating activities (21,524 ) — (21,524 ) The following summarizes the significant changes under ASC 606 as compared to legacy U.S. GAAP: • Under legacy U.S. GAAP, we allocated revenue to licenses under the residual method when we had VSOE for the remaining undelivered elements, which method allocated any future credits or significant discounts entirely to the license. Under ASC 606, we allocate all future credits, significant discounts, and material rights to all performance obligations based upon their relative selling price. Additional license revenue from the reallocation of such arrangement consideration is recognized when control is transferred to the customer, which is generally upon delivery of the license. • Under legacy U.S. GAAP, we did not have VSOE for professional services and maintenance in certain geographical areas, which resulted in revenue being deferred in such instances until such time as VSOE existed for all undelivered elements or recognized ratably over the longest service period. Under ASC 606, the requirement for VSOE is eliminated and replaced with the concept of a standalone selling price. Once the transaction price is allocated to each of the performance obligations, we recognize revenue as the performance obligations are delivered, either at a point in time or over time. Under ASC 606, license revenue is recognized when control is transferred to the customer and professional services revenue is recognized over time based on an input measure of hours incurred to total estimated hours. This results in the acceleration of professional services revenue when compared to the historical practice of ratable recognition for professional services when there is a lack of VSOE. • Under legacy U.S. GAAP, sales commissions and other third-party acquisition costs resulting directly from securing contracts with customers are expensed when incurred. Under ASC 340, “Other Assets and Deferred Costs,” • Under legacy U.S. GAAP, professional service costs associated with highly customized development efforts related directly to contracts with customers are expensed when incurred. Under ASC 340, these costs are recognized as an asset when incurred and are expensed along with professional service revenue at the time that customized software is delivered and/or accepted. Recently Issued Accounting Pronouncement In August 2018, the FASB issued ASU 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (“Tax Cuts and Jobs Act”) In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities which requires companies to amend the amortization period for premiums on debt securities with explicit call features to be the earliest call date rather than through the contractual life of the debt instrument. This amendment aims to more closely align the recognition of interest income with the manner in which market participants price such instruments. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) , which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” “Leases (Topic 840).” “Leases (Topic 842: Land Easement Practical Expedient for Transitioning to Topic 842,” “Leases – Targeted Improvements (Topic 842),” We plan to adopt the new leasing standard using a modified retrospective transition approach to be applied to leases existing as of, or entered into after, January 31, 2019. We will apply the “package of practical expedients”, which permits us to not reassess under the new standards for prior conclusions about lease identification, lease classification and initial direct costs. Upon adoption of the new leasing standards, we expect to recognize a right-of-use asset and related lease liability on our consolidated balance sheets in the range of approximately $1.5 million to $2.0 million. We do not expect the adoption of the standard to have a material impact on our results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Schedule of Estimated Useful Lives of Assets | Estimated useful lives of assets are as follows: Buildings 20 years Office furniture and equipment 5 years Computer equipment, software and demonstration equipment 3 years Service and spare components 5 years Leasehold improvements Shorter of lease term or estimated useful life |
ASU 2014-09 [Member] | |
Summary of Effects of Adopting Topic 606 on Consolidated Financial Statements | The cumulative effect of the changes made to our consolidated balance sheet as of February 1, 2018 for the adoption of the new guidance under the modified retrospective method is as follows: As of January 31, 2018 February 1, 2018 Under ASC 605 Adjustment Under ASC 606 (Amounts in thousands) Assets Unbilled receivables $ 3,101 $ 137 $ 3,238 Prepaid expenses and other current assets (1) 3,557 824 4,381 Liabilities Deferred revenue 14,433 (1,358 ) 13,075 Equity Accumulated deficit (148,620 ) 2,319 (146,301 ) (1) Contract assets, short-term are included in prepaid expenses and other current assets in our consolidated balance sheet. The following tables summarize the effects of adopting ASC 606 on our consolidated financial statements during the year ended January 31, 2019: January 31, 2019 Balance Without As reported Adjustment Adoption of ASC 606 (Amounts in thousands) Assets Unbilled receivables $ 5,448 $ 1,557 $ 7,005 Prepaid expenses and other current assets (1) 6,033 (554 ) 5,479 Liabilities Deferred revenue 10,746 6,124 16,870 Equity Accumulated deficit (184,303 ) (5,120 ) (189,423 ) (1) Contract assets, short term are included in prepaid and other current assets in our consolidated balance sheet For the Year Ended January 31, 2019 Balance Without As reported Adjustment Adoption of ASC 606 (Amounts in thousands, except per share amounts) Revenue $ 62,402 $ (3,115 ) $ 59,287 Cost of revenue 25,072 (653 ) 24,419 Operating expenses 73,133 383 73,516 Loss from operations (35,803 ) (2,845 ) (38,648 ) Loss before income taxes (40,020 ) (2,845 ) (42,865 ) Income tax (benefit) provision (2,018 ) — (2,018 ) Net loss (38,002 ) (2,845 ) (40,847 ) Net loss per share: Basic $ (1.06 ) $ (0.08 ) $ (1.14 ) Diluted $ (1.06 ) $ (0.08 ) $ (1.14 ) For the Year Ended January 31, 2019 Balance Without As reported Adjustment Adoption of ASC 606 (Amounts in thousands) Cash used in operating activities: Net loss $ (38,002 ) $ (2,802 ) $ (40,804 ) Unbilled receivables (2,468 ) (1,557 ) (4,025 ) Prepaid expenses and other current assets (877 ) 554 (323 ) Deferred revenue (3,379 ) 6,124 2,745 Other operating activities (173 ) (2,319 ) (2,492 ) Total cash used in operating activities (21,524 ) — (21,524 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets Measured on Recurring Basis | The following tables set forth our financial assets that were accounted for at fair value on a recurring basis. There were no fair value measurements of our financial assets using level 3 inputs for the periods presented: Fair Value at January 31, 2019 Using Total Level 1 Level 2 (Amounts in thousands) Assets: Cash equivalents $ 2,887 $ 2,724 $ 163 Marketable securities: U.S. Treasury Notes and bonds 7,072 7,072 — U.S. Agency bonds 992 — 992 Corporate bonds 2,295 — 2,295 Total $ 13,246 $ 9,796 $ 3,450 Fair Value at January 31, 2018 Using Total Level 1 Level 2 (Amounts in thousands) Assets: Cash equivalents $ 4,568 $ — $ 4,568 Marketable securities: U.S. Treasury Notes and bonds 3,717 3,717 — U.S. Agency bonds 2,983 — 2,983 Corporate bonds 1,740 — 1,740 Total $ 13,008 $ 3,717 $ 9,291 |
Summary of Marketable Securities by Security Type | Marketable securities by security type consisted of the following: January 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Amounts in thousands) U.S. Treasury Notes and bonds $ 7,055 $ 17 $ — $ 7,072 U.S. Agency bonds 1,001 — (9 ) 992 Corporate bonds 2,308 — (13 ) 2,295 $ 10,364 $ 17 $ (22 ) $ 10,359 January 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Amounts in thousands) U.S. Treasury Notes and bonds $ 3,741 $ — $ (24 ) $ 3,717 U.S. Agency bonds 2,993 9 (19 ) 2,983 Corporate Bonds 1,760 — (20 ) 1,740 $ 8,494 $ 9 $ (63 ) $ 8,440 |
Consolidated Balance Sheet De_2
Consolidated Balance Sheet Detail (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory consists of the following: January 31, 2019 2018 (Amounts in thousands) Components and assemblies $ 763 $ 426 Finished products 161 240 Total inventory $ 924 $ 666 |
Property, Plant and Equipment, Net | Property, plant and equipment, net consists of the following: January 31, 2019 2018 (Amounts in thousands) Buildings $ 3,467 $ 11,839 Land 2,780 2,780 Computer equipment, software and demonstration equipment 12,316 12,770 Service and spare components 1,158 1,158 Office furniture and equipment 738 774 Leasehold improvements 531 537 20,990 29,858 Less: Accumulated depreciation and amortization (13,798 ) (20,387 ) Total property, plant and equipment, net $ 7,192 $ 9,471 |
Accrued Expenses | Accrued expenses consist of the following: January 31, 2019 2018 (Amounts in thousands) Accrued employee compensation and benefits $ 1,866 $ 4,657 Accrued professional fees 1,521 1,092 Sales tax and VAT payable 1,502 4,001 Income taxes payable — 2,869 Accrued restructuring (Note 7) 653 225 Accrued other 2,220 2,535 Total accrued expenses $ 7,762 $ 15,379 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill | The following table represents the changes in goodwill: Goodwill (Amounts in thousands) Balance as of January 31, 2017: $ 23,287 Cumulative translation adjustment 2,292 Balance as of January 31, 2018: 25,579 Cumulative translation adjustment (1,324 ) Loss on impairment (15,502 ) Balance as of January 31, 2019: $ 8,753 |
Schedule of Intangible Assets | Intangible assets, net, consisted of the following at January 31, 2018: January 31, 2018 Gross Accumulated Amortization Net (Amounts in thousands) Finite-lived intangible assets: Customer contracts $ 30,818 $ (29,836 ) $ 982 Non-compete agreements 2,639 (2,635 ) 4 Completed technology 11,479 (11,203 ) 276 Trademarks, patents and other 7,189 (7,148 ) 41 Total finite-lived intangible assets $ 52,125 $ (50,822 ) $ 1,303 |
Schedule of Amortization Expense of Intangible Assets in Cost of Revenue and Operating Expense | We recognized amortization expense of intangible assets in cost of revenue and operating expense categories as follows: For the Fiscal Year Ended January 31, 2019 2018 (Amounts in thousands) Cost of product revenue $ 28 $ 106 Selling and marketing 687 1,273 Research and development 181 180 $ 896 $ 1,559 |
Severance and Restructuring C_2
Severance and Restructuring Costs (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Activity in Accrued Restructuring Liability | The following table shows the change in balances of our accrued restructuring reported as a component of other accrued expenses on the consolidated balance sheets: Employee-Related Benefits Closure of Leased Facilities Other Restructuring Total (Amounts in thousands) Accrual balance as of January 31, 2017 $ 785 $ 130 $ 108 $ 1,023 Restructuring charges incurred 2,973 796 387 4,156 Cash payments (3,733 ) (783 ) (466 ) (4,982 ) Other charges 36 (8 ) — 28 Accrual balance as of January 31, 2018 61 135 29 225 Restructuring charges incurred 1,565 7 36 1,608 Cash payments (965 ) (142 ) (65 ) (1,172 ) Other charges (8 ) — — (8 ) Accrual balance as of January 31, 2019 $ 653 $ — $ — $ 653 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future commitments under minimum lease payments as of January 31, 2019 are as follows: For the Fiscal Years Ended January 31, Lease Commitments (Amounts in thousands) 2020 $ 956 2021 722 2022 475 2023 202 2024 25 Thereafter — Minimum operating lease payments $ 2,380 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Fair Value of Stock Options Granted | The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option pricing model to determine the fair value of stock options granted: For the Fiscal Years Ended January 31, 2019 2018 Risk-free interest rate 2.6 % 2.4 % Expected volatility 46.8 % 41.0 % Expected dividend yield 0.0 % 0.0 % Expected term (in years) 6.0 6.0 |
Stock Option Activity | Stock Option Activity The following table summarizes our stock option activity: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of January 31, 2018 3,240,105 $ 3.94 8.00 $ 683,405 Granted 1,420,000 1.83 Exercised (20,937 ) 2.56 Forfeited (514,966 ) 3.49 Outstanding as of January 31, 2019 4,124,202 $ 3.28 6.96 $ 32,000 Vested and expected to vest as of January 31, 2019 3,324,203 $ 2.63 6.96 $ 32,000 Options exercisable as of January 31, 2019 974,793 $ 3.33 4.89 $ — |
Summary of Stock Unit Activity | The following table summarizes our stock unit activity: Weighted Average Grant-Date Number of Shares Fair Value Unvested balance as of January 31, 2018 1,924,890 $ 4.89 Granted 616,250 1.99 Vested (277,385 ) 3.45 Forfeited (567,759 ) 5.35 Unvested balance as of January 31, 2019 1,695,996 $ 3.00 |
Summary of Stock Based Compensation Expense Recognized | We recognized stock-based compensation expense within the accompanying consolidated statements of operations and comprehensive income (loss) as follows: For the Fiscal Year Ended January 31, 2019 2018 (Amounts in thousands) Cost of revenue $ — $ 3 Research and development 186 102 Sales and marketing 373 360 General and administrative 2,380 2,231 $ 2,939 $ 2,696 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue Disaggregated by Revenue Stream | The following table shows our revenue disaggregated by revenue stream for the year ended January 31, 2019: For the Years Ended January 31, 2019 2018 (Amounts in thousands) Product $ 20,655 $ 28,791 Professional services 13,908 18,316 Maintenance - first year 2,095 2,127 Maintenance - renewal 25,744 31,033 Total revenue $ 62,402 $ 80,267 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following summarizes revenue by customers’ geographic locations: For the Fiscal Years Ended January 31, 2019 % 2018 % (Amounts in thousands, except percentages) Revenue by customer's geographic locations: North America (1) $ 30,002 48% $ 32,409 40% Europe and Middle East 21,990 35% 39,177 49% Latin America 9,068 15% 7,379 9% Asia Pacific 1,342 2% 1,302 2% Total revenue $ 62,402 $ 80,267 (1) Includes total revenue for the United States for the periods shown as follows: For Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands, except percentages) US Revenue $ 23,582 $ 27,876 % of total revenue 38 % 35 % |
Long-Lived Assets by Geographic Locations | The following summarizes long-lived assets by geographic locations: January 31, 2019 % 2018 % (Amounts in thousands, except percentages) Long-lived assets by geographic locations (1): North America $ 7,148 93% $ 9,792 83% Europe and Middle East 446 6% 1,949 17% Asia Pacific 48 1% 48 0% Total long-lived assets by geographic location $ 7,642 $ 11,789 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) from Operations before Income Taxes | The components of income (loss) from operations before income taxes are as follows: For the Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands) Domestic $ (16,087 ) $ (16,158 ) Foreign (23,933 ) 17,384 Income (loss) from operations before income taxes $ (40,020 ) $ 1,226 |
Components of Income Tax (Benefit) Provision from Operations | The components of the income tax (benefit) provision from operations are as follows: For the Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands) Current: Federal $ — $ (595 ) State 5 (18 ) Foreign (1,882 ) 2,473 Total (1,877 ) 1,860 Deferred: Foreign (141 ) (14,132 ) Total (141 ) (14,132 ) Income tax benefit $ (2,018 ) $ (12,272 ) |
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, 2019 2018 (Amounts in thousands) Statutory U.S. federal tax rate $ (8,404 ) $ 415 State taxes, net of federal tax benefit 5 (4 ) Income not benefitted 3,664 481 Non-deductible stock compensation expense 267 158 Other non-deductible items (1) 147 (46 ) Innovative technology and development incentive (317 ) — Foreign tax rate differential (388 ) (2,014 ) Outside basis difference in foreign subsidiaries — (14,675 ) Goodwill impairment 3,647 — Tax Reform Act (2) — 3,882 Current fiscal year impact of FIN 48 (639 ) (469 ) Income tax (benefit) provision $ (2,018 ) $ (12,272 ) (1) Within the other line in the table above, other non-deductible items were $0.3 million and less than ($0.1) million for the fiscal years ended January 31, 2019 and 2018, respectively. These items have been aggregated with various adjustments related to differences in prior year U.S. and foreign tax provisions and the actual returns filed. (2) Due to the impact of the one-time transition tax on the deemed repatriation of accumulated foreign earnings required by the Tax Reform Act discussed below. |
Components of Deferred Income Taxes | The components of deferred income taxes are as follows: January 31, 2019 2018 (Amounts in thousands) Deferred tax assets: Accruals and reserves $ 1,518 $ 963 Deferred revenue 760 476 Stock-based compensation expense 1,373 1,134 U.S. federal, state and foreign tax credits 7,949 8,070 Property and equipment 278 71 Intangible assets 54 (201 ) Loss carryforwards 29,909 27,642 Deferred tax assets 41,841 38,155 Less: Valuation allowance (41,979 ) (38,305 ) Net deferred tax assets (138 ) (150 ) Deferred tax liabilities: Other 46 47 Total net deferred tax liabilities $ (184 ) $ (197 ) |
Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the total amounts of gross unrecognized tax benefits, is as follows: For the Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands) Balance of gross unrecognized tax benefits, beginning of period $ 4,856 $ 5,093 Decrease due to expiration of statute of limitation (477 ) (389 ) Effect of currency translation (61 ) 152 Balance of gross unrecognized tax benefits, end of period $ 4,318 $ 4,856 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth our computation of basic and diluted net income (loss) per common share: For Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands, except per share data) Net income (loss) $ (38,002 ) $ 13,498 Weighted average common shares used in computing net income (loss) per share - basic 35,691 35,412 Dilutive potential common shares — 273 Weighted average common shares used in computing net income (loss) per share - dilutive 35,691 35,685 Net income (loss) per share Basic $ (1.06 ) $ 0.38 Diluted $ (1.06 ) $ 0.38 |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The number of common shares used in the computation of diluted net income (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: For Fiscal Years Ended January 31, 2019 2018 (Amounts in thousands) Stock options 3,245 1,522 Restricted stock units 264 159 Deferred stock units 18 13 Performance stock units 567 297 4,094 1,991 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Detail) $ in Millions | 12 Months Ended |
Jan. 31, 2019USD ($) | |
Restructuring Plan [Member] | |
Significant Accounting Policies [Line Items] | |
Annualized cost savings | $ 6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Jan. 31, 2019USD ($)CustomerSegment | Jan. 31, 2018USD ($)Customer | |
Significant Accounting Policies [Line Items] | ||
Cost method investment, ownership percentage | 20.00% | |
Gain (loss) on investment in affiliates | $ 175,000 | $ 2,555,000 |
Number of Reportable Segments | Segment | 1 | |
Accumulated goodwill impairment charges | $ 54,800,000 | 39,300,000 |
Foreign currency translation adjustment | (3,400,000) | (5,400,000) |
Unrealized gains (losses) on marketable securities | 49,000 | (60,000) |
Impairment costs | $ 0 | |
ASU 2014-09 [Member] | ||
Significant Accounting Policies [Line Items] | ||
Acquisition costs expensed over expected period | 5 years | |
Hardware and Software Maintenance [Member] | ||
Significant Accounting Policies [Line Items] | ||
Commissions and special incentive payments amortized period | 5 years | |
Other Income (Expense) [Member] | ||
Significant Accounting Policies [Line Items] | ||
Foreign currency transaction gain (loss), realized and unrealized | $ (4,700,000) | 3,800,000 |
Software Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Identified intangible assets, Useful life | 3 years | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Unrealized gains (losses) on marketable securities | $ 100,000 | |
Contractual customer payment terms for goods or service. | 1 year | |
Maximum [Member] | ASU 2016-02 [Member] | ||
Significant Accounting Policies [Line Items] | ||
Right-of-use asset and related lease liability | $ 2,000,000 | |
Minimum [Member] | ASU 2016-02 [Member] | ||
Significant Accounting Policies [Line Items] | ||
Right-of-use asset and related lease liability | 1,500,000 | |
Layer3 TV, Inc. [Member] | ||
Significant Accounting Policies [Line Items] | ||
Proceeds from sale of investment in affiliates | 200,000 | 4,600,000 |
Gain (loss) on investment in affiliates | 200,000 | 2,600,000 |
Investments in affiliates | 0 | $ 0 |
Layer3 TV, Inc. [Member] | Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Additional payment being held in escrow, related to sale of investment in affiliates | $ 2,100,000 | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||
Significant Accounting Policies [Line Items] | ||
Number of customers accounted | Customer | 2 | 1 |
Concentration risk percentage | 49.00% | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 44.00% | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer Two [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 15.00% | |
Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Significant Accounting Policies [Line Items] | ||
Number of customers accounted | Customer | 2 | 1 |
Concentration risk percentage | 37.00% | |
Customer Concentration Risk [Member] | Total Revenue [Member] | Customer One [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 24.00% | |
Customer Concentration Risk [Member] | Total Revenue [Member] | Customer Two [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 11.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Jan. 31, 2019 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Office Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Computer Equipment, Software and Demonstration Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Service and Spare Components [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | Shorter of lease term or estimated useful life |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Detail 1) | Jan. 31, 2019 |
Hardware and Software Maintenance [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-02-01 | |
Significant Accounting Policies [Line Items] | |
Performance obligation, contracts expected duration | 1 year |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Effects of Adopting Topic 606 on Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Feb. 01, 2018 | Jan. 31, 2018 |
Assets | |||
Unbilled receivables | $ 5,448 | $ 3,101 | |
Prepaid expenses and other current assets | 6,033 | 3,557 | |
Liabilities | |||
Deferred revenue | 10,746 | 14,433 | |
Stockholders' equity: | |||
Accumulated deficit | (184,303) | $ (148,620) | |
ASU 2014-09 [Member] | |||
Assets | |||
Unbilled receivables | $ 3,238 | ||
Prepaid expenses and other current assets | 4,381 | ||
Liabilities | |||
Deferred revenue | 13,075 | ||
Stockholders' equity: | |||
Accumulated deficit | (146,301) | ||
Adjustment [Member] | ASU 2014-09 [Member] | |||
Assets | |||
Unbilled receivables | 1,557 | 137 | |
Prepaid expenses and other current assets | (554) | 824 | |
Liabilities | |||
Deferred revenue | 6,124 | (1,358) | |
Stockholders' equity: | |||
Accumulated deficit | (5,120) | $ 2,319 | |
Balance Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | |||
Assets | |||
Unbilled receivables | 7,005 | ||
Prepaid expenses and other current assets | 5,479 | ||
Liabilities | |||
Deferred revenue | 16,870 | ||
Stockholders' equity: | |||
Accumulated deficit | $ (189,423) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Effects of Adopting Topic 606 on Consolidated Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 62,402 | $ 80,267 |
Cost of revenue | 25,072 | 26,323 |
Operating expenses | 73,133 | 59,354 |
Loss from operations | (35,803) | (5,410) |
Loss before income taxes | (40,020) | 1,226 |
Income tax (benefit) provision | (2,018) | (12,272) |
Net income (loss) | $ (38,002) | $ 13,498 |
Net loss per share: | ||
Basic | $ (1.06) | $ 0.38 |
Diluted | $ (1.06) | $ 0.38 |
Adjustment [Member] | ASU 2014-09 [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ (3,115) | |
Cost of revenue | (653) | |
Operating expenses | 383 | |
Loss from operations | (2,845) | |
Loss before income taxes | (2,845) | |
Net income (loss) | $ (2,845) | |
Net loss per share: | ||
Basic | $ (0.08) | |
Diluted | $ (0.08) | |
Balance Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 59,287 | |
Cost of revenue | 24,419 | |
Operating expenses | 73,516 | |
Loss from operations | (38,648) | |
Loss before income taxes | (42,865) | |
Income tax (benefit) provision | (2,018) | |
Net income (loss) | $ (40,847) | |
Net loss per share: | ||
Basic | $ (1.14) | |
Diluted | $ (1.14) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Effects of Adopting Topic 606 on Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (38,002) | $ 13,498 |
Unbilled receivables | (2,468) | 3,968 |
Prepaid expenses and other current assets | (877) | (588) |
Deferred revenue | (3,379) | (1,078) |
Other operating activities | (173) | 386 |
Total cash used in operating activities | (21,524) | $ 12,947 |
Adjustment [Member] | ASU 2014-09 [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (2,802) | |
Unbilled receivables | (1,557) | |
Prepaid expenses and other current assets | 554 | |
Deferred revenue | 6,124 | |
Other operating activities | (2,319) | |
Balance Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (40,804) | |
Unbilled receivables | (4,025) | |
Prepaid expenses and other current assets | (323) | |
Deferred revenue | 2,745 | |
Other operating activities | (2,492) | |
Total cash used in operating activities | $ (21,524) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Jan. 31, 2019USD ($) |
Fair Value Measurements Disclosure [Line Items] | |
Marketable securities fair value, mature between one and three years | $ 6,300,000 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value Measurements Disclosure [Line Items] | |
Fair value measurements of our financial assets | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Marketable securities: | ||
Marketable securities | $ 10,359 | $ 8,440 |
U.S. Treasury Notes and Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 7,072 | 3,717 |
U.S. Agency Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 992 | 2,983 |
Corporate Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 2,295 | 1,740 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Cash equivalents | 2,887 | 4,568 |
Marketable securities: | ||
Total | 13,246 | 13,008 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Notes and Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 7,072 | 3,717 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 992 | 2,983 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 2,295 | 1,740 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 2,724 | |
Marketable securities: | ||
Total | 9,796 | 3,717 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Notes and Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 7,072 | 3,717 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 163 | 4,568 |
Marketable securities: | ||
Total | 3,450 | 9,291 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Agency Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 992 | 2,983 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | $ 2,295 | $ 1,740 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Marketable Securities by Security Type (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | $ 10,364 | $ 8,494 |
Gross Unrealized Gains | 17 | 9 |
Gross Unrealized Losses | (22) | (63) |
Fair Value | 10,359 | 8,440 |
U.S. Treasury Notes and Bonds [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 7,055 | 3,741 |
Gross Unrealized Gains | 17 | |
Gross Unrealized Losses | (24) | |
Fair Value | 7,072 | 3,717 |
U.S. Agency Bonds [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 1,001 | 2,993 |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | (9) | (19) |
Fair Value | 992 | 2,983 |
Corporate Bonds [Member] | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 2,308 | 1,760 |
Gross Unrealized Losses | (13) | (20) |
Fair Value | $ 2,295 | $ 1,740 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | Feb. 06, 2019USD ($)Subscriber | Jan. 31, 2017USD ($) |
DCC Labs [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of equity interest acquired | 100.00% | |
Payments to acquire business, paid in shares | $ 2.7 | |
Net purchase price of acquired business | 7.9 | |
Payments to acquire business | $ 5.2 | |
Xstream A/S [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of equity interest acquired | 100.00% | |
Payments to acquire business, paid in shares | $ 0.9 | |
Net purchase price of acquired business | 5.5 | |
Payments to acquire business | $ 4.6 | |
Xstream A/S [Member] | Minimum [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Number of OTT video subscribers | Subscriber | 5,000,000 |
Consolidated Balance Sheet De_3
Consolidated Balance Sheet Detail - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Components and assemblies | $ 763 | $ 426 |
Finished products | 161 | 240 |
Total inventory | $ 924 | $ 666 |
Consolidated Balance Sheet De_4
Consolidated Balance Sheet Detail - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 20,990 | $ 29,858 |
Less: Accumulated depreciation and amortization | (13,798) | (20,387) |
Total property, plant and equipment, net | 7,192 | 9,471 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,467 | 11,839 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,780 | 2,780 |
Computer Equipment, Software and Demonstration Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 12,316 | 12,770 |
Service and Spare Components [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,158 | 1,158 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 738 | 774 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 531 | $ 537 |
Consolidated Balance Sheet De_5
Consolidated Balance Sheet Detail - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | |
Balance Sheet Related Disclosures [Line Items] | |||
Impairment charge | $ 1,200 | ||
Carrying value | 20,990 | $ 20,990 | $ 29,858 |
Depreciation and amortization expense | 2,924 | 4,696 | |
Property and Equipment [Member] | |||
Balance Sheet Related Disclosures [Line Items] | |||
Depreciation and amortization expense | 1,300 | 2,300 | |
Buildings [Member] | |||
Balance Sheet Related Disclosures [Line Items] | |||
Impairment charge | 1,200 | 1,200 | |
Carrying value | $ 3,467 | $ 3,467 | $ 11,839 |
Consolidated Balance Sheet De_6
Consolidated Balance Sheet Detail - Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee compensation and benefits | $ 1,866 | $ 4,657 |
Accrued professional fees | 1,521 | 1,092 |
Sales tax and VAT payable | 1,502 | 4,001 |
Income taxes payable | 2,869 | |
Accrued restructuring (Note 7) | 653 | 225 |
Accrued other | 2,220 | 2,535 |
Total accrued expenses | $ 7,762 | $ 15,379 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Change in Carrying Amount of Goodwill (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill, beginning balance | $ 25,579,000 | $ 23,287,000 | |
Cumulative translation adjustment | (1,324,000) | 2,292,000 | |
Loss on impairment | $ 0 | (15,502,000) | |
Goodwill, ending balance | $ 8,753,000 | $ 25,579,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Goodwill And Intangible Assets [Line Items] | |||||
Impairment charge | $ 0 | $ 15,502,000 | |||
Other asset impairment charges | $ 0 | ||||
Goodwill before impairment charge | $ 24,300,000 | 24,300,000 | |||
Goodwill | 8,753,000 | 8,753,000 | $ 25,579,000 | $ 23,287,000 | |
Goodwill accumulated impairments losses | 54,800,000 | 54,800,000 | 39,300,000 | ||
Impairment charge | 1,200,000 | ||||
Property, plant and equipment, carrying value | 20,990,000 | 20,990,000 | 29,858,000 | ||
Impairment charge | 300,000 | 300,000 | |||
Carrying value of intangible assets before the impairment charge | 300,000 | 300,000 | |||
Intangible assets, net | 0 | 0 | 1,303,000 | ||
Amortization expense | 896,000 | 1,559,000 | |||
Internally Developed Software [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Net book value | 0 | 0 | |||
Cost of Service Revenue [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Amortization expense | 700,000 | 900,000 | |||
Buildings [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Impairment charge | 1,200,000 | 1,200,000 | |||
Property, plant and equipment before impairment, carrying value | 4,700,000 | 4,700,000 | |||
Property, plant and equipment, carrying value | $ 3,467,000 | $ 3,467,000 | $ 11,839,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross | $ 52,125 | |
Accumulated Amortization | (50,822) | |
Finite-life intangible assets, Net | $ 0 | 1,303 |
Customer Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross | 30,818 | |
Accumulated Amortization | (29,836) | |
Finite-life intangible assets, Net | 982 | |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross | 2,639 | |
Accumulated Amortization | (2,635) | |
Finite-life intangible assets, Net | 4 | |
Completed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross | 11,479 | |
Accumulated Amortization | (11,203) | |
Finite-life intangible assets, Net | 276 | |
Trademarks, Patents and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross | 7,189 | |
Accumulated Amortization | (7,148) | |
Finite-life intangible assets, Net | $ 41 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Amortization Expense of Intangible Assets in Cost of Revenue and Operating Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | $ 896 | $ 1,559 |
Cost of Product Revenue [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | 28 | 106 |
Selling and Marketing [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | 687 | 1,273 |
Research and Development [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | $ 181 | $ 180 |
Severance and Restructuring C_3
Severance and Restructuring Costs - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Jan. 31, 2019USD ($)Employee | Jan. 31, 2018USD ($)Employee | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges for terminated employees | $ 1.6 | $ 4.2 |
2019 Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Annualized cost savings | 6 | |
Severance and restructuring costs | 2 | |
2017 Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges incurred | 7.2 | |
Former Employees [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Additional severance charges | $ 0.8 | $ 0.5 |
Number of employees terminated | Employee | 19 | 14 |
Severance and Restructuring C_4
Severance and Restructuring Costs - Activity in Accrued Restructuring Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance at the beginning of the period | $ 225 | $ 1,023 |
Restructuring charges incurred | 1,608 | 4,156 |
Cash payments | (1,172) | (4,982) |
Other charges | (8) | 28 |
Accrual balance at the ending of the period | 653 | 225 |
Employee-Related Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance at the beginning of the period | 61 | 785 |
Restructuring charges incurred | 1,565 | 2,973 |
Cash payments | (965) | (3,733) |
Other charges | (8) | 36 |
Accrual balance at the ending of the period | 653 | 61 |
Closure of Leased Facilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance at the beginning of the period | 135 | 130 |
Restructuring charges incurred | 7 | 796 |
Cash payments | (142) | (783) |
Other charges | (8) | |
Accrual balance at the ending of the period | 135 | |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance at the beginning of the period | 29 | 108 |
Restructuring charges incurred | 36 | 387 |
Cash payments | $ (65) | (466) |
Accrual balance at the ending of the period | $ 29 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Apr. 30, 2019 | |
Contingencies And Commitments [Line Items] | |||
Operating leases, rent expense | $ 1.2 | $ 1.6 | |
Operating lease expiration year | 2024 | ||
Netherlands [Member] | Scenario Forecast [Member] | |||
Contingencies And Commitments [Line Items] | |||
Reduction in lease commitments in fiscal 2020 | $ 0.2 | ||
Reduction in lease commitments in fiscal 2021 | $ 0.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Payment (Detail) $ in Thousands | Jan. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 956 |
2021 | 722 |
2022 | 475 |
2023 | 202 |
2024 | 25 |
Minimum operating lease payments | $ 2,380 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Preferred stock, shares authorized | 5,000,000 | |||
Preferred stock, shares issued | 0 | |||
Expected dividend yield | 0.00% | 0.00% | ||
Options outstanding | 4,124,202 | 3,240,105 | ||
Market based options granted | 1,420,000 | |||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $ 0.86 | $ 1.34 | ||
Market Based Options [Member] | CEO [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 800,000 | 800,000 | ||
Fair value of options outstanding | $ 2,100 | |||
Service period required to be fulfilled | 3 years | |||
Market based options granted | 0 | 0 | ||
Performance Stock Units (PSUs) [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 | $ 900,000 | |||
Share based compensation arrangement by share based payment award expected weighted average recognition period | 2 years 1 month 6 days | |||
Restricted Stock Units And Deferred Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 1,500,000 | |||
Share based compensation arrangement by share based payment award expected weighted average recognition period | 1 year 9 months 18 days | |||
Restricted Stock Units And Deferred Stock Units | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by Share-based payment award, vesting period | 1 year | |||
Restricted Stock Units And Deferred Stock Units | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by Share-based payment award, vesting period | 3 years | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 2,200,000 | |||
Share based compensation arrangement by share based payment award expected weighted average recognition period | 2 years 2 months 12 days | |||
2011 Compensation and Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
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, Purchase Price of Common Stock, Percent | 100.00% | |||
Share-based compensation arrangement by share based payment award, Option award expiration period | 10 years | |||
2011 Compensation and Incentive Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by Share-based payment award, vesting period | 1 year | |||
2011 Compensation and Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by Share-based payment award, vesting period | 3 years | |||
2011 Compensation and Incentive Plan [Member] | Stock Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 9,300,000 | |||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 1,616,179 | |||
2011 Compensation and Incentive Plan [Member] | Deferred Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by Share-based payment award, vesting period | 1 year | |||
Two Thousand Fifteen Employee Stock Purchase Plan | ||||
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 | 1,094,783 | |||
Share-based compensation arrangement by share-based payment award, Description | On each purchase date, eligible employees can 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 | |||
Percentage of stock to be purchased under the plan | 85.00% | |||
Shares purchased under ESPP | 12,794 | 24,467 | ||
Two Thousand Fifteen Employee Stock Purchase Plan | 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 | |||
Long Term Incentive Program | Performance Stock Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by Share-based payment award, vesting period | 3 years | 3 years | 3 years | |
Service period required to be fulfilled | 3 years | |||
Number of stock units granted | 210,000 | 232,500 | 307,963 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value of Stock Options Granted (Detail) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 2.60% | 2.40% |
Expected volatility | 46.80% | 41.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected term (in years) | 6 years | 6 years |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity (Detail) - USD ($) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Equity [Abstract] | ||
Shares, Outstanding at beginning of period | 3,240,105 | |
Shares, Granted | 1,420,000 | |
Shares, Exercised | (20,937) | |
Shares, Forfeited | (514,966) | |
Shares, Outstanding at end of period | 4,124,202 | 3,240,105 |
Shares, Vested and expected to vest at end of period | 3,324,203 | |
Shares, Options exercisable at end of period | 974,793 | |
Weighted Average Exercise Price, Outstanding at beginning of period | $ 3.94 | |
Weighted Average Exercise Price, Granted | 1.83 | |
Weighted Average Exercise Price, Exercised | 2.56 | |
Weighted Average Exercise Price, Forfeited | 3.49 | |
Weighted Average Exercise Price, Outstanding at end of period | 3.28 | $ 3.94 |
Weighted Average Exercise Price, Vested and expected to vest at end of period | 2.63 | |
Weighted Average Exercise Price, Options exercisable at end of period | $ 3.33 | |
Weighted Average Remaining Contractual Term, Outstanding at beginning of period | 6 years 11 months 15 days | 8 years |
Weighted Average Remaining Contractual Term, Vested and expected to vest at end of period | 6 years 11 months 15 days | |
Weighted Average Remaining Contractual Term, Options exercisable at end of period | 4 years 10 months 20 days | |
Aggregate Intrinsic Value, Outstanding | $ 32,000 | $ 683,405 |
Aggregate Intrinsic Value, Vested and expected to vest at end of period | $ 32,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Unit Activity (Detail) - Restricted Stock Units Deferred Stock Units and Performance Stock Units [Member] | 12 Months Ended |
Jan. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Number of Shares at beginning of period | shares | 1,924,890 |
Number of Shares,Granted | shares | 616,250 |
Number of Shares,Vested | shares | (277,385) |
Number of Shares,Forfeited | shares | (567,759) |
Unvested Number of Shares at end of period | shares | 1,695,996 |
Unvested Grant-Date Fair Value at beginning of period | $ / shares | $ 4.89 |
Granted Grant-Date Fair Value | $ / shares | 1.99 |
Vested Grant-Date Fair Value | $ / shares | 3.45 |
Forfeited Grant-Date Fair Value | $ / shares | 5.35 |
Unvested Grant-Date Fair value at end of period | $ / shares | $ 3 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 2,939 | $ 2,696 |
Cost of Revenue [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 3 | |
Research and Development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 186 | 102 |
Selling and Marketing [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 373 | 360 |
General and Administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 2,380 | $ 2,231 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenue Disaggregated by Revenue Stream (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 62,402 | $ 80,267 |
Product [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 20,655 | 28,791 |
Professional Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 13,908 | 18,316 |
Maintenance - First Year [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,095 | 2,127 |
Maintenance - Renewal [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 25,744 | $ 31,033 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) $ in Millions | Jan. 31, 2019USD ($) |
Revenue From Contract With Customer [Abstract] | |
Transaction price allocated to performance obligations | $ 24.2 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Jan. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Geographic Inform_4
Segment 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, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 62,402 | $ 80,267 |
Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
% of total revenues | 37.00% | |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 30,002 | $ 32,409 |
North America [Member] | Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
% of total revenues | 48.00% | 40.00% |
Europe and Middle East [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 21,990 | $ 39,177 |
Europe and Middle East [Member] | Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
% of total revenues | 35.00% | 49.00% |
Latin America [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 9,068 | $ 7,379 |
Latin America [Member] | Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
% of total revenues | 15.00% | 9.00% |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 1,342 | $ 1,302 |
Asia Pacific [Member] | Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
% of total revenues | 2.00% | 2.00% |
Segment and Geographic Inform_5
Segment 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, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 62,402 | $ 80,267 |
United States Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 23,582 | $ 27,876 |
Total Revenues [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
% of total revenue | 37.00% | |
Total Revenues [Member] | Customer Concentration Risk [Member] | United States Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
% of total revenue | 38.00% | 35.00% |
Segment and Geographic Inform_6
Segment and Geographic Information - Long-Lived Assets by Geographic Locations (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 7,642 | $ 11,789 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 7,148 | $ 9,792 |
Long-lived assets, Percentage | 93.00% | 83.00% |
Europe and Middle East [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 446 | $ 1,949 |
Long-lived assets, Percentage | 6.00% | 17.00% |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 48 | $ 48 |
Long-lived assets, Percentage | 1.00% | 0.00% |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) from Operations before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (16,087) | $ (16,158) |
Foreign | (23,933) | 17,384 |
Income (loss) from operations before income taxes | $ (40,020) | $ 1,226 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax (Benefit) Provision from Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Current: | ||
Federal | $ 0 | $ (595) |
State | 5 | (18) |
Foreign | (1,882) | 2,473 |
Total | (1,877) | 1,860 |
Deferred: | ||
Foreign | (141) | (14,132) |
Total | (141) | (14,132) |
Income tax benefit | $ (2,018) | $ (12,272) |
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, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Statutory U.S. federal tax rate | $ (8,404) | $ 415 |
State taxes, net of federal tax benefit | 5 | (4) |
Income not benefitted | 3,664 | 481 |
Non-deductible stock compensation expense | 267 | 158 |
Other non-deductible items | 147 | (46) |
Innovative technology and development incentive | (317) | |
Foreign tax rate differential | (388) | (2,014) |
Outside basis difference in foreign subsidiaries | (14,675) | |
Goodwill impairment | 3,647 | |
Tax Reform Act | 3,882 | |
Current fiscal year impact of FIN 48 | (639) | (469) |
Income tax benefit | $ (2,018) | $ (12,272) |
Income Taxes - Income Tax (Be_2
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, 2019 | Jan. 31, 2018 | |
Income Taxes Disclosure [Line Items] | ||
Income tax reconciliation other adjustments included in other non-deductible expenses | $ 0.3 | |
Maximum [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Income tax reconciliation other adjustments included in other non-deductible expenses | $ (0.1) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Taxes Disclosure [Line Items] | ||||
Corporate federal income tax rate | 21.00% | 35.00% | ||
Limitation on deduction for net operating losses, percentage | 80.00% | |||
Transition tax offset | $ 3,900,000 | $ 3,900,000 | ||
Provisional reduction of net deferred tax assets due to tax reform act | 17,100,000 | |||
Tax impact related to GILTI | $ 0 | |||
Deferred tax assets, operating loss carry forwards, domestic | 118,000,000 | |||
Deferred tax assets, operating loss carry forwards, state and local | 185,800,000 | |||
Deferred tax assets, operating loss carry forwards, foreign | $ 2,100,000 | |||
Operating loss carry forwards, expiry beginning year | 2020 | |||
Deferred tax assets, tax credit carry forwards, foreign | $ 2,300,000 | |||
Tax credit carry forward with an unlimited carryforward period | 200,000 | |||
Valuation allowance | 38,305,000 | 41,979,000 | 38,305,000 | |
Valuation allowance increased (decreased) | 3,700,000 | (19,800,000) | ||
Unrecognized tax benefits which would reduce income tax expense if recognized | 0 | |||
Total gross interest accrued | $ 100,000 | 100,000 | $ 100,000 | |
Federal [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Deferred tax assets, tax credit carry forwards, research | 3,800,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Deferred tax assets, tax credit carry forwards, research | 1,800,000 | |||
Deferred tax assets tax credit carry forward investment | $ 200,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Deferred tax assets: | ||
Accruals and reserves | $ 1,518 | $ 963 |
Deferred revenue | 760 | 476 |
Stock-based compensation expense | 1,373 | 1,134 |
U.S. federal, state and foreign tax credits | 7,949 | 8,070 |
Property and equipment | 278 | 71 |
Intangible assets | 54 | |
Intangible assets | (201) | |
Loss carryforwards | 29,909 | 27,642 |
Deferred tax assets | 41,841 | 38,155 |
Less: Valuation allowance | (41,979) | (38,305) |
Deferred tax liabilities | (138) | (150) |
Deferred tax liabilities: | ||
Other | 46 | 47 |
Total net deferred tax liabilities | $ (184) | $ (197) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Balance of gross unrecognized tax benefits, beginning of period | $ 4,856 | $ 5,093 |
Decrease due to expiration of statute of limitation | (477) | (389) |
Effect of currency translation | (61) | 152 |
Balance of gross unrecognized tax benefits, end of period | $ 4,318 | $ 4,856 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Retirement Savings Plan [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Defined contribution plan, cost recognized | $ 0.5 | $ 1.1 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (38,002) | $ 13,498 |
Weighted average common shares used in computing net income (loss) per share - basic | 35,691 | 35,412 |
Dilutive potential common shares | 273 | |
Weighted average common shares used in computing net income (loss) per share - dilutive | 35,691 | 35,685 |
Net income (loss) per share | ||
Basic | $ (1.06) | $ 0.38 |
Diluted | $ (1.06) | $ 0.38 |
Net Income (Loss) Per Share -_2
Net Income (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, 2019 | Jan. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 4,094 | 1,991 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 3,245 | 1,522 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 264 | 159 |
Deferred Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 18 | 13 |
Performance Stock Units (PSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 567 | 297 |
Subsequent Events - Additional
Subsequent Events - Additional Information - (Detail) - Subsequent Event [Member] $ in Millions | Mar. 04, 2019shares | Feb. 06, 2019USD ($)Subscribershares | Feb. 28, 2019 |
Subsequent Event [Line Items] | |||
Preferred shares purchase rights, declared date as dividend | Mar. 4, 2019 | ||
Preferred shares purchase rights for each common stock | shares | 1 | ||
Preferred shares purchase rights, record date as dividend | Mar. 15, 2019 | ||
TAR Holdings [Member] | Seachange International, Inc [Member] | |||
Subsequent Event [Line Items] | |||
Ownership percentage | 20.60% | ||
Xstream A/S [Member] | |||
Subsequent Event [Line Items] | |||
Payments to acquire business | $ | $ 4.6 | ||
Business combination, shares of common stock | shares | 541,738 | ||
Business combination, total transaction value | $ | $ 5.5 | ||
Minimum [Member] | Xstream A/S [Member] | |||
Subsequent Event [Line Items] | |||
Number of OTT video subscribers | Subscriber | 5,000,000 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Accounts Receivable Allowance [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | $ 16 | $ 876 |
Additions, Charged to costs and expenses | 1,779 | 79 |
Additions, Charged to other accounts | 10 | |
Deductions and write-offs | (1,218) | (949) |
Balance at end of period | 577 | 16 |
Deferred Tax Assets Valuation Allowance [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | 38,305 | 58,134 |
Additions, Charged to costs and expenses | 3,674 | (19,829) |
Balance at end of period | $ 41,979 | $ 38,305 |