Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Apr. 06, 2020 | Jul. 31, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SEAC | ||
Entity Registrant Name | SEACHANGE INTERNATIONAL INC | ||
Security Exchange Name | NASDAQ | ||
Entity Central Index Key | 0001019671 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 37,208,434 | ||
Entity Public Float | $ 60,364,119 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Entity File Number | 001-38828 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Tax Identification Number | 04-3197974 | ||
Entity Address, Address Line One | 500 Totten Pond Road | ||
Entity Address, City or Town | Waltham | ||
Entity Address, State or Province | MA | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Postal Zip Code | 02451 | ||
City Area Code | (978) | ||
Local Phone Number | 897-0100 | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the 2020 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. | ||
Document Annual Report | true | ||
Series A Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | SEAC | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Series A Participating Preferred Stock Purchase Rights |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 9,297 | $ 20,317 |
Marketable securities | 3,835 | 4,020 |
Accounts receivable, net of allowance for doubtful accounts of $947 and $577 at January 31, 2020 and 2019, respectively | 12,127 | 19,267 |
Unbilled receivables | 14,279 | 5,448 |
Inventory | 924 | |
Prepaid expenses and other current assets | 5,112 | 6,033 |
Total current assets | 44,650 | 56,009 |
Property and equipment, net | 554 | 7,192 |
Operating lease right-of-use assets | 4,860 | |
Marketable securities, long-term | 782 | 6,339 |
Intangible assets, net | 2,300 | |
Goodwill | 9,775 | 8,753 |
Unbilled receivables, long-term | 9,031 | |
Other assets | 938 | 450 |
Total assets | 72,890 | 78,743 |
Current liabilities: | ||
Accounts payable | 4,007 | 4,503 |
Accrued expenses | 7,986 | 7,762 |
Deferred revenue | 5,041 | 8,104 |
Total current liabilities | 17,034 | 20,369 |
Deferred revenue, long-term | 1,140 | 2,642 |
Operating lease liabilities, long-term | 4,348 | |
Taxes payable, long-term | 436 | 429 |
Deferred tax liabilities, long-term | 203 | |
Total liabilities | 22,958 | 23,643 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value; 100,000,000 shares authorized at January 31, 2020 and 2019; 37,303,952 shares issued and 37,163,462 shares outstanding at January 31, 2020; 35,946,100 shares issued and 35,905,610 outstanding at January 31, 2019 | 373 | 359 |
Additional paid-in capital | 245,067 | 242,442 |
Treasury stock, at cost; 140,490 shares at January 31, 2020 and 40,490 shares at January 31, 2019 | (147) | (5) |
Accumulated other comprehensive loss | (2,137) | (3,393) |
Accumulated deficit | (193,224) | (184,303) |
Total stockholders' equity | 49,932 | 55,100 |
Total liabilities and stockholders' equity | $ 72,890 | $ 78,743 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 947 | $ 577 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 37,303,952 | 35,946,100 |
Common stock, shares outstanding | 37,163,462 | 35,905,610 |
Treasury stock, common shares | 140,490 | 40,490 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Revenue: | ||
Total revenue | $ 67,154 | $ 62,402 |
Cost of revenue: | ||
Total cost of revenue | 23,652 | 25,072 |
Gross profit | 43,502 | 37,330 |
Operating expenses: | ||
Research and development | 16,050 | 19,705 |
Selling and marketing | 12,179 | 14,414 |
General and administrative | 15,211 | 19,618 |
Severance and restructuring costs | 3,523 | 2,381 |
Loss on impairment of goodwill and long-lived assets | 17,015 | |
Total operating expenses | 52,386 | 73,133 |
Loss on sale of fixed assets | 5,423 | |
Loss from operations | (8,884) | (35,803) |
Other income (expense), net | 11 | (4,217) |
Loss before income taxes | (8,873) | (40,020) |
Income tax provision (benefit) | 48 | (2,018) |
Net loss | $ (8,921) | $ (38,002) |
Net loss per share, basic | $ (0.24) | $ (1.06) |
Net loss per share, diluted | $ (0.24) | $ (1.06) |
Weighted average common shares outstanding, basic | 36,699 | 35,691 |
Weighted average common shares outstanding, diluted | 36,699 | 35,691 |
Comprehensive loss: | ||
Net loss | $ (8,921) | $ (38,002) |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustment | 1,212 | 1,992 |
Unrealized gains on marketable securities | 44 | 49 |
Total other comprehensive income | 1,256 | 2,041 |
Comprehensive loss | (7,665) | (35,961) |
Product [Member] | ||
Revenue: | ||
Total revenue | 39,914 | 20,655 |
Cost of revenue: | ||
Cost of revenue | 6,179 | 3,460 |
Service [Member] | ||
Revenue: | ||
Total revenue | 27,240 | 41,747 |
Cost of revenue: | ||
Cost of revenue | $ 17,473 | $ 21,612 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (8,921) | $ (38,002) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 2,016 | 2,924 |
Loss on sale of fixed assets | 5,423 | |
Provision for bad debts | 628 | 1,779 |
Loss on impairment of goodwill and long-lived assets | 17,015 | |
Stock-based compensation expense | 1,151 | 2,939 |
Deferred income taxes | (203) | (4) |
Realized and unrealized foreign currency transaction loss | 2,126 | 3,459 |
Gain on sale of investment in affiliate and other investments, net | (1,495) | (175) |
Other | 53 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,134 | 513 |
Unbilled receivables | (17,840) | (2,468) |
Inventory | 924 | (260) |
Prepaid expenses and other current assets and other assets | 1,609 | (877) |
Accounts payable | (1,149) | 2,219 |
Accrued expenses and other liabilities | (170) | (7,087) |
Deferred revenue | (4,565) | (3,379) |
Other | (1,462) | (173) |
Net cash used in operating activities | (14,794) | (21,524) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (281) | (364) |
Proceeds from sale of building and land | 600 | |
Cash paid for acquisitions, net | (3,838) | |
Purchases of marketable securities | (790) | (8,510) |
Proceeds from sales and maturities of marketable securities | 6,576 | 6,652 |
Proceeds from sale of investment in affiliate, net | 1,495 | 175 |
Net cash provided by (used in) investing activities | 3,762 | (2,047) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 614 | 83 |
Repurchases of common stock | (142) | |
Other financing activities | (43) | |
Net cash provided by financing activities | 472 | 40 |
Effect of exchange rate on cash and cash equivalents | (460) | 187 |
Net decrease in cash, cash equivalents and restricted cash | (11,020) | (23,344) |
Cash, cash equivalents and restricted cash at beginning of period | 20,317 | 43,661 |
Cash, cash equivalents and restricted cash at end of period | 9,297 | 20,317 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 463 | $ 2,965 |
Non-cash activities: | ||
Right-of-use assets obtained in exchange for lease obligations | 5,600 | |
Fair value of common stock issued in acquisition | $ 874 |
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, 2018 | $ 85,720 | $ 356 | $ 239,423 | $ (5) | $ (5,434) | $ (148,620) |
Beginning balance, Shares at Jan. 31, 2018 | 35,634,984 | |||||
Adjustment resulting from the adoption of ASC 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 | |||||
Issuance of common stock pursuant to vesting of restricted stock units | $ 3 | (3) | ||||
Issuance of common stock pursuant to exercise of stock options, 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 gains (losses) on marketable securities | 49 | 49 | ||||
Foreign currency translation adjustment | 1,992 | 1,992 | ||||
Net 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 | |||||
Issuance of common stock pursuant to acquisition of Xstream | 874 | $ 5 | 869 | |||
Issuance of common stock pursuant to acquisition of Xstreme, Shares | 541,738 | |||||
Issuance of common stock pursuant to exercise of stock options | $ 594 | $ 3 | 591 | |||
Issuance of common stock pursuant to exercise of stock options, shares | 195,461 | 195,461 | ||||
Issuance of common stock pursuant to vesting of restricted stock units | $ 6 | (6) | ||||
Issuance of common stock pursuant to exercise of stock options, shares | 608,200 | |||||
Issuance of common stock pursuant to ESPP purchases | $ 20 | 20 | ||||
Issuance of common stock pursuant to ESPP purchases, Shares | 12,453 | |||||
Repurchases of common stock | (142) | (142) | ||||
Stock-based compensation expense | 1,151 | 1,151 | ||||
Unrealized gains (losses) on marketable securities | 44 | 44 | ||||
Foreign currency translation adjustment | 1,212 | 1,212 | ||||
Net loss | (8,921) | (8,921) | ||||
Ending balance at Jan. 31, 2020 | $ 49,932 | $ 373 | $ 245,067 | $ (147) | $ (2,137) | $ (193,224) |
Ending balance, Shares at Jan. 31, 2020 | 37,303,952 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Jan. 31, 2020 | |
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. (“we” or the “Company”), 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 efforts from which we have generated annualized cost savings of approximately $6 million. In fiscal 2020, we continued to streamline our operations and closed our service organizations in Ireland and the Netherlands. 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 below (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 follow through our operational plans, take advantage of market opportunities to develop new products or to otherwise respond to competitive pressures, or invest in complementary businesses or technologies. Impact of COVID-19 Pandemic In the first quarter of fiscal 2021, concerns related to the spread of COVID-19 began to create global business disruptions as well as disruptions in our operations and to create potential negative impacts on our revenues and other financial results. COVID-19 was declared a pandemic by the World Health Organization on March 11, 2020. The extent to which COVID-19 will impact our financial condition or results of operations is currently uncertain and depends on factors including the impact on our customers, partners, and vendors and on the operation of the global markets in general. Due to our business model, the effect of COVID-19 on our results of operations may also not be fully reflected for some time. We are currently conducting business with substantial modifications to employee travel, employee work locations, virtualization or cancellation of customer and employee events, and remote sales, implementation, and support activities, among other modifications. These decisions may delay or reduce sales and harm productivity and collaboration. We have observed other companies and governments making similar alteration to their normal business operations, and in general, the markets are experiencing a significant level of uncertainty at the current time. Virtualization of our team’s sales activities could foreclose future business opportunities, particularly as our customers limit spending, which could negatively impact the willingness of our customers to enter into or renew contracts with us. The pandemic has impacted our ability to complete certain implementations, negatively impacting our ability to recognize revenue, and could also negatively impact the payment of accounts receivable and collections. We may take further actions that alter our business operations as the situation evolves. As a result, the ultimate impact of the COVID-19 pandemic and the effects of the operational alterations we have made in response on our business, financial condition, liquidity, and financial results cannot be predicted at this time. 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 of America (“GAAP”). We consolidate the financial statements of our wholly-owned subsidiaries and all intercompany transactions and account balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
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 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. Business Combinations We account for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. We allocate the purchase price of the acquisition to the tangible assets acquired, liabilities assumed, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. During the measurement period, we record adjustments to provisional amounts recorded for assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to the Company’s consolidated statements of operations. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand and on deposit and highly liquid investments in money market mutual funds, government sponsored enterprise obligations, treasury bills, commercial paper and other money market securities with remaining maturities at the date of purchase of 90 days or less. All cash equivalents are carried at cost, which approximates fair value. Restricted cash represents cash that is restricted as to withdrawal or usage and consists primarily of cash held as collateral in relation to obligations set forth by our landlords. The following tables provides a summary of cash, cash equivalents and restricted cash that constitutes the total amounts shown in the consolidated statements of cash flows as of January 31, 2020 and 2019: As of January 31, 2020 2019 (Amounts in thousands) Cash and cash equivalents $ 9,013 $ 20,317 Restricted cash 284 - Total cash, cash equivalents and restricted cash $ 9,297 $ 20,317 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 loss in stockholders’ equity. 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 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 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, cash equivalents, restricted cash, 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 United States (“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. No customer accounted for more than 10% of total revenue in fiscal 2020. Two customers accounted for 24% and 11% each of total revenue in fiscal 2019. Two customers accounted for 16% and 10% of the accounts receivable balance as of January 31, 2020. Two customers accounted for 44% and 15% of the accounts receivable balance as of January 31, 2019. Allowances for Doubtful Accounts We evaluate our customers’ financial condition, require advance payments from certain of our customers and maintain reserves for potential credit losses. We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral. For some international customers, we may require an irrevocable letter of credit to be issued by the customer before the purchase order is accepted. We monitor payments from customers and assess any collection issues. We maintain an allowance for specific doubtful accounts for estimated losses resulting from the inability of our customers to make required payments and record these allowances as a charge to general and administrative expenses in our consolidated statements of operations and comprehensive loss. We base our general 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 is recorded at cost less depreciation and is 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 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 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 loss in fiscal 2019 related to this payment. We received our final Layer3 payment of $1.8 million in fiscal 2020 which was partially offset by a $0.3 million loss on an unrelated investment. We recorded a net gain on sale of investment in affiliate of $1.5 million in our consolidated statements of operations and comprehensive loss in fiscal 2020. The balance of our investments in affiliates was zero as of January 31, 2020 and 2019. 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 such estimates 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 circumstances 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 classified 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. 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 loss except to the extent that it relates to items recognized directly within equity or in other comprehensive loss. Income taxes payable, which is included in 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 provision (benefit), in our consolidated statements of operations and comprehensive 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 and Transactions 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 losses are included in the consolidated statements of operations and comprehensive loss as a component of other expense and totaled $2.1 million and $4.7 million for fiscal 2020 and 2019, respectively. Comprehensive Loss and Accumulated Other Comprehensive Loss Comprehensive loss includes our net 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 loss are foreign currency translation adjustments and changes in unrealized gains on marketable securities. Accumulated other comprehensive loss on the consolidated balance sheets as of January 31, 2020 and 2019 consists of foreign currency translation adjustments of ($2.2) million and ($3.4) million, respectively, Revenue Recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (as amended, “ASC 606”), effective February 1, 2018, using the modified retrospective method applied to those contracts which were not substantially completed as of February 1, 2018. ASC 606 provides guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our revenue is derived from sales of software licenses and associated hardware, professional services, and maintenance fees related to our software licenses. Our contracts, including contracts for our end-to-end software delivery platform solution (the “Framework”), 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 standalone selling price basis when available or expected cost plus margin or residual approach. 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. Framework We have concluded that Framework has multiple performance obligations. The selling Framework Software Licenses We have concluded that a Framework software license is a distinct performance obligation as the client can benefit from the software on its own. Software license revenue is included in product revenue in our consolidated statement of operations and comprehensive loss and is typically recognized 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 Framework Hardware We have concluded that Framework hardware, when included in a Framework contract, is a distinct performance obligation as the client can benefit from the product. Framework hardware revenue is included in product revenue in our consolidated statement of operations and comprehensive loss and is typically recognized when control is transferred to the customer, 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 and it is delivered before services are provided and is functional without services, control is transferred upon delivery or acceptance by the customer. Framework Support Services We have concluded that Framework support services is a distinct performance obligation. Framework support services is included in services revenue in our consolidated statements of operations and comprehensive loss. Support services includes software upgrades on a when-and-if available basis, support, bug fixes or patches and general maintenance support. Framework support services standalone is not sold on a standalone basis. The selling price is determined using a cost-plus approach, and revenue is recognized ratably over the passage of the contractual term. Legacy Software Licenses We have concluded that a software license is a distinct performance obligation as the client can benefit from the software on its own. Software license revenue is included in product revenue in our consolidated statement of operations and comprehensive loss and is typically recognized 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. Legacy Hardware We have concluded that hardware is a distinct performance obligation as the client can benefit from the product on its own. Hardware revenue is included in product revenue in our consolidated statement of operations and comprehensive loss and is typically recognized when control is transferred to the customer, 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 and it is delivered before services are provided and is functional without services, control is transferred upon delivery or acceptance by the customer. Legacy Maintenance Historically, maintenance revenue, which is included in services revenue in our consolidated statements of operations and comprehensive 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. Historically, 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 for products sold on a standalone basis. Legacy Services Historically, our services revenue, excluding maintenance 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 standalone basis or bundled with a license when we are providing custom development. The standalone selling price for services in time and materials contracts is determined by observable prices in standalone 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 standalone selling price for fixed price services based on estimated hours adjusted for historical experience at time and material rates charged in standalone 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 standalone 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 standalone 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. In instances where stand-alone selling price is not directly observable, such as when we don’t sell the product or service separately, we determine the stand-alone selling price based on a cost-plus model as market and other observable inputs are seldom present based on the proprietary nature of our products and services. 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 expected to be billed and collected within one year are classified as current assets or long-term assets if expected to be billed and collected after one year. Contract liabilities consist of deferred revenue and customer deposits that 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 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 Using Total Level 1 Level 2 (Amounts in thousands) Assets: Cash equivalents $ 1,408 $ 1,408 $ — Marketable securities: U.S. Treasury Notes and bonds 3,360 3,360 — Corporate bonds 1,257 — 1,257 Total $ 6,025 $ 4,768 $ 1,257 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 Cash equivalents include money market funds and U.S. treasury bills. Marketable securities by security type consisted of the following: As of January 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Amounts in thousands) U.S. Treasury Notes and bonds $ 3,310 $ 50 $ — $ 3,360 Corporate bonds 1,254 3 — 1,257 $ 4,564 $ 53 $ — $ 4,617 As of 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 As of January 31, 2020, marketable securities consisted of investments that mature within one year, with the exception of investments with a fair value of $781 thousand that mature between one and two years. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions 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, based on the 20 day trailing volume weighted average closing price as of the acquisition date, and $4.6 million in cash, resulting in a total purchase price of $5.4 million. The acquisition of Xstream accelerates our penetration in OTT and new market segments and fully cloud-based end-to-end video platform that operates in a hosted managed environment. In addition, Xstream’s MediaMaker video platform enhances our end-to-end video Framework. Estimated fair value of consideration: Cash $ 4,552 Stock consideration 874 Total purchase price $ 5,426 Estimated fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 714 Other current assets 927 Other long-term assets 152 Finite-life intangible assets 3,569 Goodwill 1,300 Current liabilities (1,236 ) Allocated purchase price $ 5,426 Useful Life Fair Value (amounts in thousands) Customer contracts 3 years $ 2,205 Existing technology 3 years 1,364 $ 3,569 We utilized the income approach methodology for the valuation of the identified intangible assets. Specifically, we used the excess earnings method to value the customer relationships, the relief-from-royalty method for the existing technology. Varying discount rates were also applied to the projected net cash flows and EBITDA as applicable. We believe the assumptions are representative of those a market participant would use in estimating fair value. Goodwill recorded as part of the acquisition is not deductible for tax purposes. |
Consolidated Balance Sheet Deta
Consolidated Balance Sheet Detail | 12 Months Ended |
Jan. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Balance Sheet Detail | 5. Consolidated Balance Sheet Detail Inventory Inventory consists of the following: As of January 31, 2020 January 31, 2019 (Amounts in thousands) Components and assemblies $ - $ 763 Finished products - 161 Total inventory $ - $ 924 Property, Plant and Equipment, Net Property, plant and equipment, net consists of the following: As of January 31, 2020 January 31, 2019 (Amounts in thousands) Building $ - $ 3,467 Land - 2,780 Computer equipment, software and demonstration equipment 9,695 12,316 Service and spare components 1,158 1,158 Office furniture and equipment 170 738 Leasehold improvements 154 531 11,177 20,990 Less: Accumulated depreciation and amortization (10,623 ) (13,798 ) Total property and equipment, net $ 554 $ 7,192 As a result of our impairment analysis in the fiscal year ended January 31, 2019, we recorded an impairment charge of $1.2 million to reduce the carrying value of our building to $3.5 million. As a result of the sale of our Acton, MA headquarters in the fourth quarter of fiscal year ended January 31, 2020 for $0.5 million, net of disposal costs, we recorded a one-time $5.4 million loss on the sale of fixed assets reported in the consolidated statement of operations and comprehensive loss. Depreciation expense of property and equipment was $0.9 million and $1.3 million for the years ended January 31, 2020 and 2019, respectively. Accrued Expenses Accrued expenses consist of the following: As of January 31, 2020 January 31, 2019 (Amounts in thousands) Accrued employee compensation and benefits $ 3,236 $ 1,866 Accrued professional fees 928 1,521 Sales tax and VAT payable 317 1,502 Accrued restructuring 744 653 Accrued third party hardware costs 1,169 - Accrued other 1,592 2,220 Total accrued expenses $ 7,986 $ 7,762 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 31, 2020 | |
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, 2018 $ 25,579 Cumulative translation adjustment (1,324 ) Loss on Impairment (15,502 ) Balance as of January 31, 2019 8,753 Goodwill arising from the Xstream acquisition 1,300 Cumulative translation adjustment (278 ) Balance as of January 31, 2020 $ 9,775 When assessing goodwill impairment for fiscal 2020, we first performed a qualitative assessment to determine whether it was necessary to perform the two-step quantitative analysis. Based on the qualitative assessment we determined it was unlikely that our fair value was less than its carrying value, and therefore, there was no impairment of goodwill recorded. In the second and fourth 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 in fiscal 2019, 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 impairment as of January 31, 2020 and 2019 was $54.8 million. As a result of the impairment tests in fiscal 2019, 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 an impairment charge of $0.3 million to reduce the carrying value of intangible assets of $0.3 million to zero, representing the 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, 2020: As of January 31, 2020 Gross Accumulated Amortization Cumulative Translation Adjustment Net (Amounts in thousands) Finite-lived intangible assets: Acquired customer contracts $ 2,205 $ 718 $ (66 ) $ 1,421 Acquired existing technology 1,364 445 (40 ) 879 Total finite-lived intangible assets $ 3,569 $ 1,163 $ (106 ) $ 2,300 We recognized amortization expense of intangible assets in cost of revenue and operating expense categories as follows: For the Fiscal Year Ended January 31, 2020 2019 (Amounts in thousands) Cost of revenue $ — 28 Selling and marketing 608 687 Research and development 555 181 $ 1,163 $ 896 Amortization expense, reported in cost of service revenue in the consolidated statement of operations and comprehensive loss was $0.7 million in fiscal 2019 for internally developed software, which is included in other assets on the consolidated balance sheets. There was no amortization expense associated with internally developed software in fiscal 2020. We did not capitalize additional costs in fiscal 2020 or 2019 and the net book value of internally developed software was zero at January 31, 2020 and 2019. |
Severance and Restructuring Cos
Severance and Restructuring Costs | 12 Months Ended |
Jan. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Severance and Restructuring Costs | 7. Severance and Restructuring Costs Severance Costs Severance charges incurred, unrelated to a restructuring plan, were $0.2 million and $0.8 million in fiscal 2020 and 2019, respectively. These charges were primarily related to the departure of former employees. Restructuring Costs During the third quarter of fiscal 2019, we announced and implemented cost-saving actions (the “2019 Restructuring Plan”). The primary element of the 2019 Restructuring Plan was staff reductions across all functions and geographic areas. We incurred restructuring charges of $1.6 million in fiscal 2019, primarily for employee-related benefits for terminated employees. We incurred restructuring charges of $3.4 million in fiscal 2020 primarily related to the closing of our service organizations in Ireland and the Netherlands in a continued effort to streamline operations. 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) Accrued 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 ) Accrued balance as of January 31, 2019 653 — — 653 Restructuring charges incurred 2,995 113 259 3,367 Cash payments (2,877 ) (6 ) (259 ) (3,142 ) Other charges (27 ) (107 ) — (134 ) Accrued balance as of January 31, 2020 $ 744 $ — $ — $ 744 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2020 | |
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
Operating Leases | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Operating Leases | 9. Operating Leases The Company has noncancelable operating leases for facilities, automobiles and equipment expiring at various dates through 2026. As discussed in Note 2, the Company adopted ASC 842 as of February 1, 2019 on a prospective basis using the transition method under ASU 2018-11. In accordance with this method, the Company recognized a right of use asset and an operating lease liability of $1.7 million as of February 1, 2019. In the third quarter of fiscal 2020, we terminated lease agreements for certain office space located in the Netherlands and Ireland, which will result in a reduction to our existing lease commitments in the amount of $0.1 million in each of the fiscal years 2021 and 2022. The components of lease expense for the fiscal year ended January 31, 2020 are as follows: Fiscal Year Ended January 31, 2020 (Amounts in thousands) Operating lease cost $ 906 Short term lease cost 27 Total lease cost $ 933 Supplemental cash flow information related to the Company’s operating leases was as follows: Fiscal Year Ended January 31, 2020 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 906 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 5,600 Supplemental balance sheet information related to the Company’s operating leases was as follows: January 31, 2020 (Amounts in thousands) Operating lease right-of-use assets $ 4,860 Current portion, operating lease liabilities 722 Operating lease liabilities, long term 4,348 Total operating lease liabilities $ 5,070 Weighted average remaining lease term (years) 5.0 Weighted average incremental borrowing rate 5.0 % The current portion, operating lease liabilities is included in the balance of accrued expenses at January 31, 2020. Rent payments for continuing operations were approximately $0.9 million for the fiscal year ended January 31, 2020. Future minimum lease payments for operating leases with initial or remaining terms in excess of one year at January 31, 2020 are as follows: Payments for Operating Leases For the fiscal years ended January 31, (Amounts in thousands) 2021 $ 965 2022 1,052 2023 1,036 2024 1,184 2025 1,201 Thereafter 59 Total lease payments 5,497 Less interest 427 Total operating lease liabilities $ 5,070 The Company’s total lease cost for fiscal 2019 was $1.2 million, and was accounted for under the former guidance of ASC 840, Leases (Topic 840). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 10 . Stockholders’ Equity Stock Authorization The Board of Directors is authorized to issue from time to time up to an aggregate of 5,000,000 shares of preferred stock, in one or more series. Each such series of preferred stock shall have the number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges to be determined by the Board of Directors, including dividend rights, voting rights, redemption rights and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. No preferred stock has been issued as of January 31, 2020. We have designated 1,000,000 shares of Series A Participating Preferred Stock in connection with our Rights Plan (as defined below). 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 our 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 Program (“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 1,080,726 remain available under the ESPP as of January 31, 2020. Under the ESPP, 14,057 and 12,794 shares were purchased during fiscal 2020 and fiscal 2019, 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, 2020 2019 Risk-free interest rate 1.8 % 2.4 % Expected volatility 50.5 % 41.0 % Expected dividend yield 0.0 % 0.0 % Expected term (in years) 6.0 6.0 Market-Based Options Our former CEO was granted 800,000 market-based options issued in fiscal 2016 and fiscal 2017. 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. The fair value of these stock options was $2.1 million, which was recognized over three years. In February 2019, these options were cancelled upon the resignation of our CEO, at which time we reversed $0.5 million of stock-based compensation expense related to the final performance period for a portion of the grant. We have not granted additional market-based options since fiscal 2017. 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, 2019 4,124,202 $ 3.28 6.96 $ 32,000 Granted 1,555,000 1.94 Exercised (195,461 ) 3.04 Forfeited (2,715,275 ) 2.72 Outstanding as of January 31, 2020 2,768,466 $ 2.14 8.03 $ 6,430,232 Vested and expected to vest as of January 31, 2020 2,552,241 $ 2.09 8.52 $ 6,018,110 Options exercisable as of January 31, 2020 677,220 $ 2.67 6.18 $ 1,271,367 The weighted average grant-date fair values of stock options granted during the years ended January 31, 2020 and 2019 were $1.94 per share and $0.86 per share, respectively. Stock Units We have granted RSUs and DSUs with service-based vesting criteria that generally vest over one to three years. In fiscal 2020, we granted 744,931 DSU shares and 128,961 RSU shares. In fiscal 2019, we granted 156,250 DSU shares and 389,500 RSU shares. We have also granted PSUs with performance-based and market-based vesting criteria. In fiscal 2019, we granted an aggregate of 210,000 performance-based PSUs to employees under the LTI Program. We did not grant any PSUs in fiscal 2020. The PSUs vest in three equal annual installments upon the achievement of certain Company-specific goals in each of the three years. The following table summarizes our stock unit activity: Weighted Average Grant-Date Number of Shares Fair Value Unvested balance as of January 31, 2019 1,695,996 $ 3.00 Granted 873,892 2.13 Vested (608,200 ) 3.96 Forfeited (816,735 ) 2.27 Unvested balance as of January 31, 2020 1,144,953 $ 2.30 Stock-Based Compensation We recognized stock-based compensation expense within the accompanying consolidated statements of operations and comprehensive loss as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Cost of revenue $ 4 $ — Research and development 302 186 Sales and marketing 230 373 General and administrative 615 2,380 $ 1,151 $ 2,939 As of January 31, 2020, unrecognized stock-based compensation expense related to unvested stock options was approximately $1.7 million, which is expected to be recognized over a weighted average period of 2.34 years. As of January 31, 2020, unrecognized stock-based compensation expense related to unvested RSUs and DSUs was $1.0 million, which is expected to be recognized over a weighted average amortization period of 1.37 years. Tax Benefits Preservation Plan On March 4, 2019, we entered into the a Tax Benefits Preservation Plan in the form of a stockholder rights agreement (“Rights Agreement”) and issued a dividend of one preferred share purchase right (a “Right”) for each share of common stock payable on March 15, 2019 to the stockholders of record of such shares on that date. Each Right entitles the registered holder, under certain circumstances, to purchase from us one one-hundredth of a share of Series A Participating Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a price of $8.00 per one one-hundredth of a Preferred Share represented by a Right (the “Purchase Price”), subject to adjustment. The description and terms of the Rights are set forth in the Rights Agreement. The Rights are not exercisable until the Distribution Date (as defined in the Rights Agreement). Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends. At any time prior to ten (10) business days after the time any Person becomes an Acquiring Person (as defined in the Rights Agreement), the Board may redeem the Rights in whole, but not in part, at a price of $0.0001 per Right (the “Redemption Price”). The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price. The Rights will expire on the earlier of (i) the time at which the Rights are redeemed, (ii) the time at which the Rights are exchanged, (iii) the consummation of a reorganization transaction entered into by the Company resulting in stock transfer restrictions similar to the Rights Agreement, (iv) the close of business on the effective date of the repeal of Section 382 (as defined in the Rights Agreement) or if the Rights Agreement is no longer necessary for the preservation of NOLs, (v) the date on which the Board determines that the Rights Agreement is no longer necessary to preserve NOLs, (vi) the beginning of the taxable year to which the Board determines that none of the NOLs may be carried forward or (vii) the close of business on March 4, 2022 (the “Final Expiration Date”). On June 28, 2019, we entered into an amendment to the Rights Agreement, between us and Computershare Trust Company, N.A., as rights agent, for the purpose of modifying the definition of “Final Expiration Date” to delete the extension of the Final Expiration Date in the event any person becomes an Acquiring Person (as defined in the Rights Agreement). On August 8, 2019, we entered into an amendment No. 2 to the Rights Agreement, between us and Computershare Trust Company, N.A., as rights agent, for the purpose of modifying the definition of “Acquiring Person” to not include TAR Holdings and their respective affiliates and associates, provided the aggregate beneficial ownership of TAR Holdings does not exceed 25.0% of the Company securities then outstanding. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Jan. 31, 2020 | |
Equity [Abstract] | |
Stock Repurchase Program | 11 . Stock Repurchase Program On June 6, 2019, the Board authorized a share repurchase program of up to $5.0 million of then-outstanding shares of the Company’s common stock over the next year. Under the share repurchase program, the Company is authorized to repurchase, from time to time, outstanding shares of common stock in accordance with applicable laws both on the open market, including under trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended and in privately negotiated transactions. The following table provides a summary of the Company’s stock repurchase activities for the fiscal year ended January 31, 2020 (in thousands, except per share amounts): For the Fiscal Year Ended January 31, 2020 Shares repurchased 100 Average cost per share $ 1.42 Value of shares repurchased $ 142 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jan. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 1 2 . Revenue from Contracts with Customers 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 and associated hardware, professional services, and maintenance fees related to our software licenses. 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 and associated hardware, professional services, and maintenance fees related to our software licenses. 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 or 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 Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Product $ 39,914 $ 20,655 Professional services 6,222 13,908 Maintenance 21,018 27,839 Total revenue $ 67,154 $ 62,402 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, 2020 is $31.9 million. This amount in part includes amounts billed for undelivered services that are included in deferred revenue reported on the consolidated balance sheets. |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | 1 3 . Geographic Information . The following summarizes revenue by customers’ geographic locations: For the Fiscal Years Ended January 31, 2020 % 2019 % (Amounts in thousands, except percentages) Revenue by customers' geographic locations: North America (1) $ 40,072 60% $ 30,002 48 % Europe and Middle East 15,829 24% 21,990 35 % Latin America 9,639 14% 9,068 15 % Asia Pacific 1,614 2% 1,342 2 % Total revenue $ 67,154 $ 62,402 (1) Includes total revenue for the U.S. for the periods shown as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands, except percentages) US Revenue $ 31,707 $ 23,582 % of total revenue 47 % 38 % The following summarizes long-lived assets by geographic locations: For the Fiscal Years Ended January 31, 2020 % 2019 % (Amounts in thousands, except percentages) Long-lived assets by geographic locations (1): North America $ 13,293 75% $ 7,148 93% Europe and Middle East 4,359 25% 446 6% Asia Pacific 31 0% 48 1% Total long-lived assets by geographic location $ 17,683 $ 7,642 (1) Excludes marketable securities, long-term and goodwill. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 4 . Income Taxes The components of loss from operations before income taxes are as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Domestic $ (3,314 ) $ (16,087 ) Foreign (5,559 ) (23,933 ) Loss before income taxes $ (8,873 ) $ (40,020 ) The components of the income tax provision (benefit) from operations are as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Current: State $ 20 $ 5 Foreign 210 (1,882 ) Total 230 (1,877 ) Deferred: Foreign (182 ) (141 ) Total (182 ) (141 ) Income tax provision (benefit) $ 48 $ (2,018 ) The income tax provision (benefit) 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, 2020 2019 (Amounts in thousands) Statutory U.S. federal tax rate $ (1,863 ) $ (8,404 ) State taxes, net of federal tax benefit 20 5 Losses not benefitted (3,207 ) 3,464 Non-deductible stock compensation expense 326 267 Other non-deductible items 406 347 Innovative technology and development incentive (298 ) (317 ) Foreign tax rate differential 447 (388 ) Tax gain on restructuring activities 4,196 — Goodwill impairment — 3,647 Current fiscal year impact of FIN 48 21 (639 ) Income tax provision (benefit) $ 48 $ (2,018 ) The U.S. Tax Cuts and Job Act (the “Tax Reform Act”) introduced significant changes to U.S. income tax law. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system and a one-time tax on the mandatory deemed repatriation of cumulative foreign earnings (the “Transition Tax”) as of December 31, 2017. We are subject to additional requirements of the Tax Reform Act in years after 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. As a result of the Tax Reform Act, foreign earnings may now generally be repatriated back to the U.S. without incurring U.S. federal income tax. We assert to indefinitely reinvest the cumulative undistributed earnings of our foreign subsidiaries with a carve out for our Irish operations. The components of deferred income taxes are as follows: As of January 31, 2020 2019 (Amounts in thousands) Deferred tax assets: Accruals and reserves $ 545 $ 1,518 Deferred revenue 274 760 Stock-based compensation expense 503 1,373 U.S. federal, state and foreign tax credits 7,929 7,949 Property and equipment 119 278 Intangible assets — 54 Loss carryforwards 29,373 29,909 Deferred tax assets 38,743 41,841 Less: Valuation allowance (38,248 ) (41,979 ) Net deferred tax assets 495 (138 ) Deferred tax liabilities: Other 46 46 Intangible assets 449 — Total net deferred tax liabilities $ — $ (184 ) At January 31, 2020, we had federal, state and foreign net operating loss carry forwards of $108.9 million, $68.5 million and $9.8 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, 2020, 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 $2.2 million, which are available to reduce future federal regular income taxes. These credits expire at various dates beginning in fiscal 2020, 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 $38.2 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 decreased by $3.7 million for the year ended January 31, 2020 and increased by $3.7 million for the fiscal year ended January 31, 2019. A reconciliation of the total amounts of gross unrecognized tax benefits, is as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Balance of gross unrecognized tax benefits, beginning of period $ 4,318 $ 4,856 Decrease due to expiration of statute of limitation — (477 ) Effect of currency translation (12 ) (61 ) Balance of gross unrecognized tax benefits, end of period $ 4,306 $ 4,318 As of January 31, 2020, we have $0.1 million unrecognized tax benefits, that if recognized, would reduce income tax expense in fiscal 2021. We recognized interest and penalties related to unrecognized tax benefits in the income tax provision (benefit) on our consolidated statements of operations and comprehensive loss. As of January 31, 2020 and 2019, total gross interest accrued was $0.1 million. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 1 5 . 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 U.S. according to the local plans specific to each foreign location. Amounts contributed will vary. During fiscal 2020 and 2019, we contributed $0.4 million, and $0.5 million, respectively. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 1 6 . Net Loss Per Share The number of common shares used in the computation of diluted net loss per share for the periods presented does not include the effect of the following potentially outstanding common shares because the effect would have been anti-dilutive: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Stock options 1,290 3,245 Restricted stock units 51 264 Deferred stock units 10 18 Performance stock units — 567 1,351 4,094 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements in conformity with 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. |
Business Combinations | Business Combinations We account for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. We allocate the purchase price of the acquisition to the tangible assets acquired, liabilities assumed, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. During the measurement period, we record adjustments to provisional amounts recorded for assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to the Company’s consolidated statements of operations. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand and on deposit and highly liquid investments in money market mutual funds, government sponsored enterprise obligations, treasury bills, commercial paper and other money market securities with remaining maturities at the date of purchase of 90 days or less. All cash equivalents are carried at cost, which approximates fair value. Restricted cash represents cash that is restricted as to withdrawal or usage and consists primarily of cash held as collateral in relation to obligations set forth by our landlords. The following tables provides a summary of cash, cash equivalents and restricted cash that constitutes the total amounts shown in the consolidated statements of cash flows as of January 31, 2020 and 2019: As of January 31, 2020 2019 (Amounts in thousands) Cash and cash equivalents $ 9,013 $ 20,317 Restricted cash 284 - Total cash, cash equivalents and restricted cash $ 9,297 $ 20,317 |
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 loss in stockholders’ equity. 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 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 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, cash equivalents, restricted cash, 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 United States (“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. No customer accounted for more than 10% of total revenue in fiscal 2020. Two customers accounted for 24% and 11% each of total revenue in fiscal 2019. Two customers accounted for 16% and 10% of the accounts receivable balance as of January 31, 2020. Two customers accounted for 44% and 15% of the accounts receivable balance as of January 31, 2019. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts We evaluate our customers’ financial condition, require advance payments from certain of our customers and maintain reserves for potential credit losses. We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral. For some international customers, we may require an irrevocable letter of credit to be issued by the customer before the purchase order is accepted. We monitor payments from customers and assess any collection issues. We maintain an allowance for specific doubtful accounts for estimated losses resulting from the inability of our customers to make required payments and record these allowances as a charge to general and administrative expenses in our consolidated statements of operations and comprehensive loss. We base our general 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 , Net | 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 is recorded at cost less depreciation and is 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 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 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 loss in fiscal 2019 related to this payment. We received our final Layer3 payment of $1.8 million in fiscal 2020 which was partially offset by a $0.3 million loss on an unrelated investment. We recorded a net gain on sale of investment in affiliate of $1.5 million in our consolidated statements of operations and comprehensive loss in fiscal 2020. The balance of our investments in affiliates was zero as of January 31, 2020 and 2019. |
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 such estimates 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 circumstances 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 classified 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 | 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. 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 loss except to the extent that it relates to items recognized directly within equity or in other comprehensive loss. Income taxes payable, which is included in 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 provision (benefit), in our consolidated statements of operations and comprehensive 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 and Transactions | Foreign Currency Translation and Transactions 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 losses are included in the consolidated statements of operations and comprehensive loss as a component of other expense and totaled $2.1 million and $4.7 million for fiscal 2020 and 2019, respectively. |
Comprehensive Loss and Accumulated Other Comprehensive Loss | Comprehensive Loss and Accumulated Other Comprehensive Loss Comprehensive loss includes our net 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 loss are foreign currency translation adjustments and changes in unrealized gains on marketable securities. Accumulated other comprehensive loss on the consolidated balance sheets as of January 31, 2020 and 2019 consists of foreign currency translation adjustments of ($2.2) million and ($3.4) million, respectively, |
Revenue Recognition | Revenue Recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (as amended, “ASC 606”), effective February 1, 2018, using the modified retrospective method applied to those contracts which were not substantially completed as of February 1, 2018. ASC 606 provides guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our revenue is derived from sales of software licenses and associated hardware, professional services, and maintenance fees related to our software licenses. Our contracts, including contracts for our end-to-end software delivery platform solution (the “Framework”), 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 standalone selling price basis when available or expected cost plus margin or residual approach. 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. Framework We have concluded that Framework has multiple performance obligations. The selling Framework Software Licenses We have concluded that a Framework software license is a distinct performance obligation as the client can benefit from the software on its own. Software license revenue is included in product revenue in our consolidated statement of operations and comprehensive loss and is typically recognized 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 Framework Hardware We have concluded that Framework hardware, when included in a Framework contract, is a distinct performance obligation as the client can benefit from the product. Framework hardware revenue is included in product revenue in our consolidated statement of operations and comprehensive loss and is typically recognized when control is transferred to the customer, 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 and it is delivered before services are provided and is functional without services, control is transferred upon delivery or acceptance by the customer. Framework Support Services We have concluded that Framework support services is a distinct performance obligation. Framework support services is included in services revenue in our consolidated statements of operations and comprehensive loss. Support services includes software upgrades on a when-and-if available basis, support, bug fixes or patches and general maintenance support. Framework support services standalone is not sold on a standalone basis. The selling price is determined using a cost-plus approach, and revenue is recognized ratably over the passage of the contractual term. Legacy Software Licenses We have concluded that a software license is a distinct performance obligation as the client can benefit from the software on its own. Software license revenue is included in product revenue in our consolidated statement of operations and comprehensive loss and is typically recognized 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. Legacy Hardware We have concluded that hardware is a distinct performance obligation as the client can benefit from the product on its own. Hardware revenue is included in product revenue in our consolidated statement of operations and comprehensive loss and is typically recognized when control is transferred to the customer, 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 and it is delivered before services are provided and is functional without services, control is transferred upon delivery or acceptance by the customer. Legacy Maintenance Historically, maintenance revenue, which is included in services revenue in our consolidated statements of operations and comprehensive 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. Historically, 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 for products sold on a standalone basis. Legacy Services Historically, our services revenue, excluding maintenance 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 standalone basis or bundled with a license when we are providing custom development. The standalone selling price for services in time and materials contracts is determined by observable prices in standalone 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 standalone selling price for fixed price services based on estimated hours adjusted for historical experience at time and material rates charged in standalone 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 standalone 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 standalone 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. In instances where stand-alone selling price is not directly observable, such as when we don’t sell the product or service separately, we determine the stand-alone selling price based on a cost-plus model as market and other observable inputs are seldom present based on the proprietary nature of our products and services. 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 expected to be billed and collected within one year are classified as current assets or long-term assets if expected to be billed and collected after one year. Contract liabilities consist of deferred revenue and customer deposits that 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 contract. These costs are periodically reviewed for impairment. We determined that no impairment of these assets existed as of January 31, 2020 or 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 associated costs 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. |
Stock-Based Compensation | 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 |
Leases | Leases We account for our leases in accordance with ASC 842, Leases Our existing leases are for facilities, automobiles and equipment. None of our leases are with related parties. In addition to rent, office leases may require us to pay additional amounts for taxes, insurance, maintenance and other expenses, which are generally referred to as non-lease components. As a practical expedient, we account for the non-lease components together with the lease components as a single lease component for all of our leases. Only the fixed costs for leases are accounted for as a single lease component and recognized as part of a right-of-use asset and liability. |
Net Loss Per Share | Net Loss Per Share 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 August 2018, the Financial Accounting Standards Board (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”) We adopted ASU 2018-02 effective February 1, 2019 and there was no impact to our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The adoption of the standard did not have a material impact on our results of operations or cash flows. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule Of Cash, Cash Equivalents and Restricted Cash | The following tables provides a summary of cash, cash equivalents and restricted cash that constitutes the total amounts shown in the consolidated statements of cash flows as of January 31, 2020 and 2019: As of January 31, 2020 2019 (Amounts in thousands) Cash and cash equivalents $ 9,013 $ 20,317 Restricted cash 284 - Total cash, cash equivalents and restricted cash $ 9,297 $ 20,317 |
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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 Using Total Level 1 Level 2 (Amounts in thousands) Assets: Cash equivalents $ 1,408 $ 1,408 $ — Marketable securities: U.S. Treasury Notes and bonds 3,360 3,360 — Corporate bonds 1,257 — 1,257 Total $ 6,025 $ 4,768 $ 1,257 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 |
Summary of Marketable Securities by Security Type | Marketable securities by security type consisted of the following: As of January 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Amounts in thousands) U.S. Treasury Notes and bonds $ 3,310 $ 50 $ — $ 3,360 Corporate bonds 1,254 3 — 1,257 $ 4,564 $ 53 $ — $ 4,617 As of 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 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Preliminary Purchase Price Allocation Recorded | Estimated fair value of consideration: Cash $ 4,552 Stock consideration 874 Total purchase price $ 5,426 Estimated fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 714 Other current assets 927 Other long-term assets 152 Finite-life intangible assets 3,569 Goodwill 1,300 Current liabilities (1,236 ) Allocated purchase price $ 5,426 |
Schedule of Estimated Fair Values and Useful Lives of Identifiable Intangible Assets Acquired | Useful Life Fair Value (amounts in thousands) Customer contracts 3 years $ 2,205 Existing technology 3 years 1,364 $ 3,569 |
Consolidated Balance Sheet De_2
Consolidated Balance Sheet Detail (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory consists of the following: As of January 31, 2020 January 31, 2019 (Amounts in thousands) Components and assemblies $ - $ 763 Finished products - 161 Total inventory $ - $ 924 |
Property, Plant and Equipment, Net | Property, plant and equipment, net consists of the following: As of January 31, 2020 January 31, 2019 (Amounts in thousands) Building $ - $ 3,467 Land - 2,780 Computer equipment, software and demonstration equipment 9,695 12,316 Service and spare components 1,158 1,158 Office furniture and equipment 170 738 Leasehold improvements 154 531 11,177 20,990 Less: Accumulated depreciation and amortization (10,623 ) (13,798 ) Total property and equipment, net $ 554 $ 7,192 |
Accrued Expenses | Accrued expenses consist of the following: As of January 31, 2020 January 31, 2019 (Amounts in thousands) Accrued employee compensation and benefits $ 3,236 $ 1,866 Accrued professional fees 928 1,521 Sales tax and VAT payable 317 1,502 Accrued restructuring 744 653 Accrued third party hardware costs 1,169 - Accrued other 1,592 2,220 Total accrued expenses $ 7,986 $ 7,762 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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, 2018 $ 25,579 Cumulative translation adjustment (1,324 ) Loss on Impairment (15,502 ) Balance as of January 31, 2019 8,753 Goodwill arising from the Xstream acquisition 1,300 Cumulative translation adjustment (278 ) Balance as of January 31, 2020 $ 9,775 |
Schedule of Intangible Assets | Intangible assets, net, consisted of the following at January 31, 2020: As of January 31, 2020 Gross Accumulated Amortization Cumulative Translation Adjustment Net (Amounts in thousands) Finite-lived intangible assets: Acquired customer contracts $ 2,205 $ 718 $ (66 ) $ 1,421 Acquired existing technology 1,364 445 (40 ) 879 Total finite-lived intangible assets $ 3,569 $ 1,163 $ (106 ) $ 2,300 |
Schedule of Finite-Life Intangible Assets, Amortization 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, 2020 2019 (Amounts in thousands) Cost of revenue $ — 28 Selling and marketing 608 687 Research and development 555 181 $ 1,163 $ 896 |
Severance and Restructuring C_2
Severance and Restructuring Costs (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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) Accrued 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 ) Accrued balance as of January 31, 2019 653 — — 653 Restructuring charges incurred 2,995 113 259 3,367 Cash payments (2,877 ) (6 ) (259 ) (3,142 ) Other charges (27 ) (107 ) — (134 ) Accrued balance as of January 31, 2020 $ 744 $ — $ — $ 744 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense for the fiscal year ended January 31, 2020 are as follows: Fiscal Year Ended January 31, 2020 (Amounts in thousands) Operating lease cost $ 906 Short term lease cost 27 Total lease cost $ 933 |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to the Company’s operating leases was as follows: Fiscal Year Ended January 31, 2020 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 906 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 5,600 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to the Company’s operating leases was as follows: January 31, 2020 (Amounts in thousands) Operating lease right-of-use assets $ 4,860 Current portion, operating lease liabilities 722 Operating lease liabilities, long term 4,348 Total operating lease liabilities $ 5,070 Weighted average remaining lease term (years) 5.0 Weighted average incremental borrowing rate 5.0 % |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for operating leases with initial or remaining terms in excess of one year at January 31, 2020 are as follows: Payments for Operating Leases For the fiscal years ended January 31, (Amounts in thousands) 2021 $ 965 2022 1,052 2023 1,036 2024 1,184 2025 1,201 Thereafter 59 Total lease payments 5,497 Less interest 427 Total operating lease liabilities $ 5,070 The Company’s total lease cost for fiscal 2019 was $1.2 million, and was accounted for under the former guidance of ASC 840, Leases (Topic 840). |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 2019 Risk-free interest rate 1.8 % 2.4 % Expected volatility 50.5 % 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, 2019 4,124,202 $ 3.28 6.96 $ 32,000 Granted 1,555,000 1.94 Exercised (195,461 ) 3.04 Forfeited (2,715,275 ) 2.72 Outstanding as of January 31, 2020 2,768,466 $ 2.14 8.03 $ 6,430,232 Vested and expected to vest as of January 31, 2020 2,552,241 $ 2.09 8.52 $ 6,018,110 Options exercisable as of January 31, 2020 677,220 $ 2.67 6.18 $ 1,271,367 |
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, 2019 1,695,996 $ 3.00 Granted 873,892 2.13 Vested (608,200 ) 3.96 Forfeited (816,735 ) 2.27 Unvested balance as of January 31, 2020 1,144,953 $ 2.30 |
Summary of Stock Based Compensation Expense Recognized | We recognized stock-based compensation expense within the accompanying consolidated statements of operations and comprehensive loss as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Cost of revenue $ 4 $ — Research and development 302 186 Sales and marketing 230 373 General and administrative 615 2,380 $ 1,151 $ 2,939 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Equity [Abstract] | |
Summary of Share Repurchase Activity | The following table provides a summary of the Company’s stock repurchase activities for the fiscal year ended January 31, 2020 (in thousands, except per share amounts): For the Fiscal Year Ended January 31, 2020 Shares repurchased 100 Average cost per share $ 1.42 Value of shares repurchased $ 142 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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 Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Product $ 39,914 $ 20,655 Professional services 6,222 13,908 Maintenance 21,018 27,839 Total revenue $ 67,154 $ 62,402 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 % 2019 % (Amounts in thousands, except percentages) Revenue by customers' geographic locations: North America (1) $ 40,072 60% $ 30,002 48 % Europe and Middle East 15,829 24% 21,990 35 % Latin America 9,639 14% 9,068 15 % Asia Pacific 1,614 2% 1,342 2 % Total revenue $ 67,154 $ 62,402 (1) Includes total revenue for the U.S. for the periods shown as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands, except percentages) US Revenue $ 31,707 $ 23,582 % of total revenue 47 % 38 % |
Long-Lived Assets by Geographic Locations | The following summarizes long-lived assets by geographic locations: For the Fiscal Years Ended January 31, 2020 % 2019 % (Amounts in thousands, except percentages) Long-lived assets by geographic locations (1): North America $ 13,293 75% $ 7,148 93% Europe and Middle East 4,359 25% 446 6% Asia Pacific 31 0% 48 1% Total long-lived assets by geographic location $ 17,683 $ 7,642 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Loss from Operations before Income Taxes | The components of loss from operations before income taxes are as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Domestic $ (3,314 ) $ (16,087 ) Foreign (5,559 ) (23,933 ) Loss before income taxes $ (8,873 ) $ (40,020 ) |
Components of Income Tax Provision (Benefit) from Operations | The components of the income tax provision (benefit) from operations are as follows: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Current: State $ 20 $ 5 Foreign 210 (1,882 ) Total 230 (1,877 ) Deferred: Foreign (182 ) (141 ) Total (182 ) (141 ) Income tax provision (benefit) $ 48 $ (2,018 ) |
Income Tax Provision (Benefit) for Continuing Operations Computed Using Federal Statutory Income Tax Rate | The income tax provision (benefit) 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, 2020 2019 (Amounts in thousands) Statutory U.S. federal tax rate $ (1,863 ) $ (8,404 ) State taxes, net of federal tax benefit 20 5 Losses not benefitted (3,207 ) 3,464 Non-deductible stock compensation expense 326 267 Other non-deductible items 406 347 Innovative technology and development incentive (298 ) (317 ) Foreign tax rate differential 447 (388 ) Tax gain on restructuring activities 4,196 — Goodwill impairment — 3,647 Current fiscal year impact of FIN 48 21 (639 ) Income tax provision (benefit) $ 48 $ (2,018 ) |
Components of Deferred Income Taxes | The components of deferred income taxes are as follows: As of January 31, 2020 2019 (Amounts in thousands) Deferred tax assets: Accruals and reserves $ 545 $ 1,518 Deferred revenue 274 760 Stock-based compensation expense 503 1,373 U.S. federal, state and foreign tax credits 7,929 7,949 Property and equipment 119 278 Intangible assets — 54 Loss carryforwards 29,373 29,909 Deferred tax assets 38,743 41,841 Less: Valuation allowance (38,248 ) (41,979 ) Net deferred tax assets 495 (138 ) Deferred tax liabilities: Other 46 46 Intangible assets 449 — Total net deferred tax liabilities $ — $ (184 ) |
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, 2020 2019 (Amounts in thousands) Balance of gross unrecognized tax benefits, beginning of period $ 4,318 $ 4,856 Decrease due to expiration of statute of limitation — (477 ) Effect of currency translation (12 ) (61 ) Balance of gross unrecognized tax benefits, end of period $ 4,306 $ 4,318 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-dilutive Securities Excluded from Computation of Loss Per Share | The number of common shares used in the computation of diluted net loss per share for the periods presented does not include the effect of the following potentially outstanding common shares because the effect would have been anti-dilutive: For the Fiscal Years Ended January 31, 2020 2019 (Amounts in thousands) Stock options 1,290 3,245 Restricted stock units 51 264 Deferred stock units 10 18 Performance stock units — 567 1,351 4,094 |
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 - Summary of Cash, Cash Equivalents, and Restricted Cash Total (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 9,013 | $ 20,317 | |
Restricted cash | 284 | ||
Total cash, cash equivalents and restricted cash | $ 9,297 | $ 20,317 | $ 43,661 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Jan. 31, 2020USD ($)CustomerSegment | Jan. 31, 2019USD ($)Customer | Jan. 31, 2018USD ($) | Feb. 01, 2019USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Cost method investment, ownership percentage | 20.00% | |||
Gain (loss) on investment in affiliates | $ 1,495,000 | $ 175,000 | ||
Number of Reportable Segments | Segment | 1 | |||
Accumulated goodwill impairment charges | $ 54,800,000 | 54,800,000 | ||
Foreign currency transaction gain (loss), realized and unrealized | (2,126,000) | (3,459,000) | ||
Foreign currency translation adjustment | (2,200,000) | (3,400,000) | ||
Unrealized gains (losses) on marketable securities | 44,000 | 49,000 | ||
Impairment costs | 0 | 0 | ||
Operating lease right-of-use assets | 4,860,000 | $ 1,700,000 | ||
Operating lease liability | 5,070,000 | $ 1,700,000 | ||
Other Income (Expense) [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Foreign currency transaction gain (loss), realized and unrealized | $ 2,100,000 | 4,700,000 | ||
Software Development [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Identified intangible assets, Useful life | 3 years | |||
Layer3 TV, Inc. [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Proceeds from sale of investment in affiliates | $ 1,800,000 | 200,000 | $ 4,600,000 | |
Gain (loss) on investment in affiliates | 1,500,000 | 200,000 | ||
Loss on investments | 300,000 | |||
Investments in affiliates | 0 | 0 | ||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Unrealized gains (losses) on marketable securities | $ 100,000 | 100,000 | ||
Contractual customer payment terms for goods or service. | 1 year | |||
Maximum [Member] | Layer3 TV, Inc. [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Additional payment being held in escrow, related to sale of investment in affiliates | $ 2,100,000 | |||
Customer Concentration Risk [Member] | Total Revenue [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customers accounted | Customer | 0 | 2 | ||
Customer Concentration Risk [Member] | Total Revenue [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
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% | |||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customers accounted | Customer | 2 | 2 | ||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 16.00% | 44.00% | ||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer Two [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.00% | 15.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Jan. 31, 2020 | |
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 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Jan. 31, 2020USD ($) |
Fair Value Measurements Disclosure [Line Items] | |
Marketable securities fair value, mature between one and two years | $ 781,000 |
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, 2020 | Jan. 31, 2019 |
Marketable securities: | ||
Marketable securities | $ 4,617 | $ 10,359 |
U.S. Treasury Notes and Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 3,360 | 7,072 |
U.S. Agency Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 992 | |
Corporate Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 1,257 | 2,295 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Cash equivalents | 1,408 | 2,887 |
Marketable securities: | ||
Total | 6,025 | 13,246 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Notes and Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 3,360 | 7,072 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 992 | |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 1,257 | 2,295 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 1,408 | 2,724 |
Marketable securities: | ||
Total | 4,768 | 9,796 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Notes and Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 3,360 | 7,072 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 163 | |
Marketable securities: | ||
Total | 1,257 | 3,450 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Agency Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 992 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | $ 1,257 | $ 2,295 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Marketable Securities by Security Type (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 4,564 | $ 10,364 |
Gross Unrealized Gains | 53 | 17 |
Gross Unrealized Losses | (22) | |
Fair Value | 4,617 | 10,359 |
U.S. Treasury Notes and Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 3,310 | 7,055 |
Gross Unrealized Gains | 50 | 17 |
Fair Value | 3,360 | 7,072 |
U.S. Agency Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,001 | |
Gross Unrealized Losses | (9) | |
Fair Value | 992 | |
Corporate Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,254 | 2,308 |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (13) | |
Fair Value | $ 1,257 | $ 2,295 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Xstream A/S [Member] $ in Thousands | Feb. 06, 2019USD ($) |
Business Acquisition [Line Items] | |
Percentage of equity interest acquired | 100.00% |
Payments to acquire business, paid in shares | $ 874 |
Payments to acquire business | 4,552 |
Business combination, total transaction value | $ 5,426 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Purchase Price Allocation Recorded (Detail) - USD ($) $ in Thousands | Feb. 06, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Estimated fair value of assets acquired and liabilities assumed: | ||||
Goodwill | $ 9,775 | $ 8,753 | $ 25,579 | |
Xstream A/S [Member] | ||||
Estimated fair value of consideration: | ||||
Cash | $ 4,552 | |||
Stock consideration | 874 | |||
Total purchase price | 5,426 | |||
Estimated fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 714 | |||
Other current assets | 927 | |||
Other long-term assets | 152 | |||
Finite-life intangible assets | 3,569 | |||
Goodwill | 1,300 | |||
Current liabilities | (1,236) | |||
Allocated purchase price | $ 5,426 |
Acquisitions - Schedule of Esti
Acquisitions - Schedule of Estimated Fair Values and Useful Lives of Identifiable Intangible Assets Acquired (Detail) - Xstream A/S [Member] $ in Thousands | Feb. 06, 2019USD ($) |
Acquired Finite Lived Intangible Assets [Line Items] | |
Fair Value | $ 3,569 |
Customer Contracts [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Fair Value | $ 2,205 |
Existing Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Fair Value | $ 1,364 |
Consolidated Balance Sheet De_3
Consolidated Balance Sheet Detail - Schedule of Inventory (Detail) $ in Thousands | Jan. 31, 2019USD ($) |
Inventory Disclosure [Abstract] | |
Components and assemblies | $ 763 |
Finished products | 161 |
Total inventory | $ 924 |
Consolidated Balance Sheet De_4
Consolidated Balance Sheet Detail - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | $ 11,177 | $ 20,990 |
Less: Accumulated depreciation and amortization | (10,623) | (13,798) |
Total property and equipment, net | 554 | 7,192 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 3,500 | 3,467 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 2,780 | |
Computer Equipment, Software and Demonstration Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 9,695 | 12,316 |
Service and Spare Components [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 1,158 | 1,158 |
Office Furniture and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 170 | 738 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | $ 154 | $ 531 |
Consolidated Balance Sheet De_5
Consolidated Balance Sheet Detail - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Balance Sheet Related Disclosures [Line Items] | ||||
Impairment charge | $ 0 | |||
Carrying value | $ 11,177 | $ 11,177 | $ 20,990 | |
Loss on sale of fixed assets | 5,423 | |||
Property and Equipment [Member] | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Depreciation expense | 900 | 1,300 | ||
Buildings [Member] | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Impairment charge | 1,200 | |||
Carrying value | 3,500 | $ 3,500 | $ 3,467 | |
Buildings [Member] | Massachusetts [Member] | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Proceeds from sale of building, net of disposal costs | 500 | |||
Loss on sale of fixed assets | $ 5,400 |
Consolidated Balance Sheet De_6
Consolidated Balance Sheet Detail - Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee compensation and benefits | $ 3,236 | $ 1,866 |
Accrued professional fees | 928 | 1,521 |
Sales tax and VAT payable | 317 | 1,502 |
Accrued restructuring | 744 | 653 |
Accrued third party hardware costs | 1,169 | |
Accrued other | 1,592 | 2,220 |
Total accrued expenses | $ 7,986 | $ 7,762 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Change in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, beginning balance | $ 8,753 | $ 25,579 | |
Cumulative translation adjustment | (278) | (1,324) | |
Loss on Impairment | $ 0 | (15,502) | |
Goodwill, ending balance | 9,775 | $ 8,753 | |
Xstream A/S [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill arising from the Xstream acquisition | $ 1,300 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Goodwill And Intangible Assets [Line Items] | ||||
Loss on Impairment | $ 0 | $ 15,502 | ||
Long lived assets Impairment charge | $ 0 | |||
Goodwill before impairment charge | 24,300 | |||
Goodwill | $ 9,775 | 8,753 | $ 25,579 | |
Accumulated goodwill impairment charges | 54,800 | 54,800 | ||
Building carrying value, Ending balance | 11,177 | 20,990 | ||
Intangible assets, Beginning balance | 300 | |||
Impairment of Intangible Assets | 300 | |||
Intangible assets, Ending balance | 0 | 300 | ||
Amortization expense | 1,163 | 896 | ||
Computer Software, Intangible Asset | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Net book value | 0 | 0 | ||
Cost of Revenue [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Amortization expense | 28 | |||
Service [Member] | Cost of Revenue [Member] | Computer Software, Intangible Asset | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Amortization expense | 0 | 700 | ||
Buildings [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Long lived assets Impairment charge | 1,200 | |||
Building carrying value, Beginning balance | 4,700 | |||
Building impairment Charges | 1,200 | |||
Building carrying value, Ending balance | $ 3,500 | $ 3,467 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Gross | $ 3,569 |
Accumulated Amortization | 1,163 |
Cumulative Translation Adjustment | (106) |
Intangible assets, net | 2,300 |
Acquired customer contracts | |
Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Gross | 2,205 |
Accumulated Amortization | 718 |
Cumulative Translation Adjustment | (66) |
Intangible assets, net | 1,421 |
Acquired existing technology | |
Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Gross | 1,364 |
Accumulated Amortization | 445 |
Cumulative Translation Adjustment | (40) |
Intangible assets, net | $ 879 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets -Schedule of Finite-Life Intangible Assets, Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | $ 1,163 | $ 896 |
Cost of Revenue [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | 28 | |
Selling and Marketing [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | 608 | 687 |
Research and Development [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | $ 555 | $ 181 |
Severance and Restructuring C_3
Severance and Restructuring Costs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance and restructuring costs | $ 3,523 | $ 2,381 |
Total restructuring charges incurred | 3,367 | 1,608 |
2019 Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and restructuring costs | 1,600 | |
Total restructuring charges incurred | 3,400 | |
Former Employees [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance charges | $ 200 | $ 800 |
Severance and Restructuring C_4
Severance and Restructuring Costs - Activity in Accrued Restructuring Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance at the beginning of the period | $ 653 | $ 225 |
Restructuring charges incurred | 3,367 | 1,608 |
Cash payments | (3,142) | (1,172) |
Other charges | (134) | (8) |
Accrual balance at the ending of the period | 744 | 653 |
Employee-Related Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance at the beginning of the period | 653 | 61 |
Restructuring charges incurred | 2,995 | 1,565 |
Cash payments | (2,877) | (965) |
Other charges | (27) | (8) |
Accrual balance at the ending of the period | 744 | 653 |
Closure of Leased Facilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance at the beginning of the period | 135 | |
Restructuring charges incurred | 113 | 7 |
Cash payments | (6) | (142) |
Other charges | (107) | |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance at the beginning of the period | 29 | |
Restructuring charges incurred | 259 | 36 |
Cash payments | $ (259) | $ (65) |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Oct. 31, 2020 | Feb. 01, 2019 | |
Lessee Lease Description [Line Items] | ||||
Operating lease right-of-use assets | $ 4,860 | $ 1,700 | ||
Operating lease liability | 5,070 | $ 1,700 | ||
Rent payments | 900 | |||
Lease cost | $ 933 | $ 1,200 | ||
Scenario Forecast [Member] | Netherlands [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Reduction in lease commitments in fiscal 2021 | $ 100 | |||
Scenario Forecast [Member] | Ireland [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Reduction in lease commitments in fiscal 2022 | $ 100 |
Operating Leases - Schedule of
Operating Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 906 | |
Short term lease cost | 27 | |
Total lease cost | $ 933 | $ 1,200 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Detail) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 906 |
Right-of-use assets obtained in exchange for lease obligations | |
Operating leases | $ 5,600 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Feb. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 4,860 | $ 1,700 |
Current portion, operating lease liabilities | 722 | |
Operating lease liabilities, long-term | 4,348 | |
Total operating lease liabilities | $ 5,070 | $ 1,700 |
Weighted average remaining lease term (years) | 5 years | |
Weighted average incremental borrowing rate | 5.00% |
Operating Leases - Schedule o_4
Operating Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Feb. 01, 2019 |
Leases [Abstract] | ||
2021 | $ 965 | |
2022 | 1,052 | |
2023 | 1,036 | |
2024 | 1,184 | |
2025 | 1,201 | |
Thereafter | 59 | |
Total lease payments | 5,497 | |
Less interest | 427 | |
Operating lease liability | $ 5,070 | $ 1,700 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 04, 2019 | Feb. 28, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2020 | Aug. 08, 2019 | Jan. 31, 2017 | Jan. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||||||
Preferred stock, shares issued | 0 | 0 | |||||||
Expected dividend yield | 0.00% | 0.00% | |||||||
Options outstanding | 2,768,466 | 4,124,202 | 2,768,466 | ||||||
Options granted | 1,555,000 | ||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $ 1.94 | $ 0.86 | |||||||
Rights Agreement [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Preferred shares purchase rights, declared date as dividend | Mar. 4, 2019 | ||||||||
Preferred shares purchase rights for each common stock | 1 | ||||||||
Preferred shares purchase rights, record date as dividend | Mar. 15, 2019 | ||||||||
Maximum [Member] | Rights Agreement [Member] | Seachange International, Inc [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Ownership percentage | 25.00% | ||||||||
Deferred Stock Units [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of stock units granted | 744,931 | 156,250 | |||||||
Market Based Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Options granted | 0 | ||||||||
Market Based Options [Member] | Former CEO [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Options outstanding | 800,000 | 800,000 | |||||||
Fair value of options outstanding | $ 2,100,000 | ||||||||
Service period required to be fulfilled | 3 years | ||||||||
Reversal of stock-based compensation expense | $ 500,000 | ||||||||
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 | $ 1,000,000 | $ 1,000,000 | |||||||
Share based compensation arrangement by share based payment award expected weighted average recognition period | 1 year 4 months 13 days | ||||||||
Restricted Stock Units [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of stock units granted | 128,961 | 389,500 | |||||||
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 | $ 1,700,000 | $ 1,700,000 | |||||||
Share based compensation arrangement by share based payment award expected weighted average recognition period | 2 years 4 months 2 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 | 9,300,000 | |||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 2,719,297 | 2,719,297 | |||||||
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 | ||||||||
2015 Employee Stock Purchase Plan [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 1,080,726 | 1,080,726 | |||||||
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 | ||||||||
Discount percentage from market price of stock | 85.00% | ||||||||
Shares purchased under ESPP | 14,057 | 12,794 | |||||||
2015 Employee Stock Purchase Plan [Member] | Maximum [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 1,150,000 | 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 | 0 | 210,000 | |||||||
Long Term Incentive Program | 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 | ||||||||
Long Term Incentive Program | 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 | ||||||||
Series A Participating Preferred Stock [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Preferred stock, shares designated | $ 1,000,000 | $ 1,000,000 | |||||||
Series A Participating Preferred Stock [Member] | Rights Agreement [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Preferred shares, dividend payment terms | Each Right entitles the registered holder, under certain circumstances, to purchase from us one one-hundredth of a share of Series A Participating Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a price of $8.00 per one one-hundredth of a Preferred Share represented by a Right (the “Purchase Price”), subject to adjustment. | ||||||||
Preferred stock, par value | $ 0.01 | ||||||||
Preferred stock, purchase price | 8 | ||||||||
Preferred stock, redemption price per share | $ 0.0001 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value of Stock Options Granted (Detail) | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 1.80% | 2.40% |
Expected volatility | 50.50% | 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 ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Equity [Abstract] | ||
Shares, Outstanding at beginning of period | 4,124,202 | |
Shares, Granted | 1,555,000 | |
Shares, Exercised | (195,461) | |
Shares, Forfeited | (2,715,275) | |
Shares, Outstanding at end of period | 2,768,466 | 4,124,202 |
Shares, Vested and expected to vest at end of period | 2,552,241 | |
Shares, Options exercisable at end of period | 677,220 | |
Weighted Average Exercise Price, Outstanding at beginning of period | $ 3.28 | |
Weighted Average Exercise Price, Granted | 1.94 | |
Weighted Average Exercise Price, Exercised | 3.04 | |
Weighted Average Exercise Price, Forfeited | 2.72 | |
Weighted Average Exercise Price, Outstanding at end of period | 2.14 | $ 3.28 |
Weighted Average Exercise Price, Vested and expected to vest at end of period | 2.09 | |
Weighted Average Exercise Price, Options exercisable at end of period | $ 2.67 | |
Weighted Average Remaining Contractual Term, Outstanding at beginning of period | 8 years 10 days | 6 years 11 months 16 days |
Weighted Average Remaining Contractual Term, Vested and expected to vest at end of period | 8 years 6 months 7 days | |
Weighted Average Remaining Contractual Term, Options exercisable at end of period | 6 years 2 months 4 days | |
Aggregate Intrinsic Value, Outstanding | $ 32,000 | |
Aggregate Intrinsic Value, Outstanding | 6,430,232 | $ 32,000 |
Aggregate Intrinsic Value, Vested and expected to vest at end of period | 6,018,110 | |
Aggregate Intrinsic Value, Options exercisable at end of period | $ 1,271,367 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Unit Activity (Detail) | 12 Months Ended |
Jan. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested Grant-Date Fair Value at beginning of period | $ / shares | $ 3 |
Granted Grant-Date Fair Value | $ / shares | 2.13 |
Vested Grant-Date Fair Value | $ / shares | 3.96 |
Forfeited Grant-Date Fair Value | $ / shares | 2.27 |
Unvested Grant-Date Fair value at end of period | $ / shares | $ 2.30 |
Restricted Stock Units Deferred Stock Units and Performance Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested Number of Shares at beginning of period | shares | 1,695,996 |
Number of Shares,Granted | shares | 873,892 |
Number of Shares,Vested | shares | (608,200) |
Number of Shares,Forfeited | shares | (816,735) |
Unvested Number of Shares at end of period | shares | 1,144,953 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,151 | $ 2,939 |
Cost of Revenue [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 4 | |
Research and Development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 302 | 186 |
Selling and Marketing [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 230 | 373 |
General and Administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 615 | $ 2,380 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) | Jun. 06, 2019USD ($) |
Maximum [Member] | |
Class Of Stock [Line Items] | |
Stock repurchase program, authorized amount | $ 5,000,000 |
Stock Repurchase Program - Summ
Stock Repurchase Program - Summary of Share Repurchase Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($)$ / sharesshares | |
Equity [Abstract] | |
Shares repurchased | shares | 100,000 |
Average cost per share | $ / shares | $ 1.42 |
Value of shares repurchased | $ | $ 142 |
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, 2020 | Jan. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 67,154 | $ 62,402 |
Product [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 39,914 | 20,655 |
Professional Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,222 | 13,908 |
Maintenance [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 21,018 | $ 27,839 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) $ in Millions | Jan. 31, 2020USD ($) |
Revenue From Contract With Customer [Abstract] | |
Transaction price allocated to performance obligations | $ 31.9 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 67,154 | $ 62,402 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 40,072 | $ 30,002 |
North America [Member] | Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
For the Fiscal Years Ended January 31, | 60.00% | 48.00% |
Europe and Middle East [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 15,829 | $ 21,990 |
Europe and Middle East [Member] | Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
For the Fiscal Years Ended January 31, | 24.00% | 35.00% |
Latin America [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 9,639 | $ 9,068 |
Latin America [Member] | Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
For the Fiscal Years Ended January 31, | 14.00% | 15.00% |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 1,614 | $ 1,342 |
Asia Pacific [Member] | Customer Concentration Risk [Member] | Total Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
For the Fiscal Years Ended January 31, | 2.00% | 2.00% |
Geographic Information - Sche_2
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, 2020 | Jan. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 67,154 | $ 62,402 |
United States Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 31,707 | $ 23,582 |
Total Revenue [Member] | Customer Concentration Risk [Member] | United States Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
% of total revenue | 47.00% | 38.00% |
Geographic Information - Long-L
Geographic Information - Long-Lived Assets by Geographic Locations (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 17,683 | $ 7,642 |
North America [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 13,293 | $ 7,148 |
Long-lived assets, Percentage | 75.00% | 93.00% |
Europe and Middle East [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 4,359 | $ 446 |
Long-lived assets, Percentage | 25.00% | 6.00% |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets by geographic location | $ 31 | $ 48 |
Long-lived assets, Percentage | 0.00% | 1.00% |
Income Taxes - Components of Lo
Income Taxes - Components of Loss from Operations before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (3,314) | $ (16,087) |
Foreign | (5,559) | (23,933) |
Loss before income taxes | $ (8,873) | $ (40,020) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) from Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Current: | ||
State | $ 20 | $ 5 |
Foreign | 210 | (1,882) |
Total | 230 | (1,877) |
Deferred: | ||
Foreign | (182) | (141) |
Total | (182) | (141) |
Income tax provision (benefit) | $ 48 | $ (2,018) |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) for Continuing Operations Computed Using Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Statutory U.S. federal tax rate | $ (1,863) | $ (8,404) |
State taxes, net of federal tax benefit | 20 | 5 |
Losses not benefitted | (3,207) | 3,464 |
Non-deductible stock compensation expense | 326 | 267 |
Other non-deductible items | 406 | 347 |
Innovative technology and development incentive | (298) | (317) |
Foreign tax rate differential | 447 | (388) |
Tax gain on restructuring activities | 4,196 | |
Goodwill impairment | 3,647 | |
Current fiscal year impact of FIN 48 | 21 | (639) |
Income tax provision (benefit) | $ 48 | $ (2,018) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Taxes Disclosure [Line Items] | |||
Corporate federal income tax rate | 35.00% | 21.00% | |
Tax impact related to GILTI | $ 0 | ||
Deferred tax assets, operating loss carry forwards, domestic | 108,900,000 | ||
Deferred tax assets, operating loss carry forwards, state and local | 68,500,000 | ||
Deferred tax assets, operating loss carry forwards, foreign | $ 9,800,000 | ||
Operating loss carry forwards, expiry beginning year | 2020 | ||
Deferred tax assets, tax credit carry forwards, foreign | $ 2,200,000 | ||
Tax credit carry forward with an unlimited carryforward period | 200,000 | ||
Valuation allowance | 38,248,000 | $ 41,979,000 | |
Valuation allowance increased (decreased) | (3,700,000) | 3,700,000 | |
Unrecognized tax benefits which would reduce income tax expense if recognized | 100,000 | ||
Total gross interest accrued | 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, 2020 | Jan. 31, 2019 |
Deferred tax assets: | ||
Accruals and reserves | $ 545 | $ 1,518 |
Deferred revenue | 274 | 760 |
Stock-based compensation expense | 503 | 1,373 |
U.S. federal, state and foreign tax credits | 7,929 | 7,949 |
Property and equipment | 119 | 278 |
Intangible assets | 54 | |
Loss carryforwards | 29,373 | 29,909 |
Deferred tax assets | 38,743 | 41,841 |
Less: Valuation allowance | (38,248) | (41,979) |
Deferred tax liabilities | 495 | (138) |
Deferred tax liabilities: | ||
Other | 46 | 46 |
Intangible assets | $ 449 | |
Total net deferred tax liabilities | $ (184) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Balance of gross unrecognized tax benefits, beginning of period | $ 4,318 | $ 4,856 |
Decrease due to expiration of statute of limitation | (477) | |
Effect of currency translation | (12) | (61) |
Balance of gross unrecognized tax benefits, end of period | $ 4,306 | $ 4,318 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Retirement Savings Plan [Member] | ||
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Defined contribution plan, cost recognized | $ 0.4 | $ 0.5 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Loss Per Share (Detail) - shares shares in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 1,351 | 4,094 |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 1,290 | 3,245 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 51 | 264 |
Deferred Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 10 | 18 |
Performance Stock Units (PSUs) [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive potentially outstanding common shares | 567 |