8x8 (EGHT) 10-Q 26 Jan 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Dec. 31, 2014	Jan. 21, 2015
Document And Entity Information
Entity Registrant Name	8X8 INC /DE/
Entity Central Index Key	1023731
Document Type	10-Q
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-28
Is Entity a Well-known Seasoned Issuer?	Yes
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		89,867,601
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Mar. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$52,598	$59,159
Short-term investments	135,291	47,181
Accounts receivable, net	7,233	5,503
Inventory	532	811
Deferred cost of goods sold	411	263
Deferred tax asset	1,731	2,065
Other current assets	2,521	1,951
Total current assets	200,317	116,933
Long-term investments	0	72,021
Property and equipment, net	10,179	7,711
Intangible assets, net	13,032	15,095
Goodwill	37,497	38,461
Non-current deferred tax asset	45,686	47,797
Other assets	1,307	1,185
Total assets	308,018	299,203
Current liabilities:
Accounts payable	7,272	6,789
Accrued compensation	6,612	4,583
Accrued warranty	423	660
Accrued taxes	2,879	2,323
Deferred revenue	1,491	1,857
Other accrued liabilities	1,375	1,909
Total current liabilities	20,052	18,121
Non-current liabilities	1,425	1,619
Non-current deferred revenue	760	1,285
Total liabilities	22,237	21,025
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock	90	88
Additional paid-in capital	391,766	384,325
Accumulated other comprehensive gain (loss)	-1,153	430
Accumulated deficit	-104,922	-106,665
Total stockholders' equity	285,781	278,178
Total liabilities and stockholders' equity	$308,018	$299,203

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Condensed Consolidated Statements Of Income
Service revenue	$37,802	$29,737	$108,199	$84,062
Product revenue	3,570	3,008	10,684	8,749
Total revenue	41,372	32,745	118,883	92,811
Operating expenses:
Cost of service revenue	7,544	5,584	22,046	15,579
Cost of product revenue	3,959	4,041	11,690	11,171
Research and development	3,868	3,325	10,770	8,301
Sales and marketing	20,559	16,051	59,159	42,868
General and administrative	4,617	5,547	12,388	11,444
Gain on patent sale	0	0	-1,000	0
Total operating expenses	40,547	34,548	115,053	89,363
Income (loss) from operations	825	-1,803	3,830	3,448
Other income, net	246	586	623	602
Income (loss) from continuing operations before provision (benefit) for income taxes	1,071	-1,217	4,453	4,050
Provision (benefit) for income taxes	627	-1,306	2,710	481
Income from continuing operations	444	89	1,743	3,569
Income from discontinued operations, net of income tax provision	0	0	0	301
Gain on disposal of discontinued operations, net of income tax provision of $463	0	0	0	589
Net income	$444	$89	$1,743	$4,459
Income per share - continuing operations:
Basic	$0.01	$0	$0.02	$0.05
Diluted	$0.01	$0	$0.02	$0.05
Income per share - discontinued operations:
Basic	$0	$0	$0	$0.01
Diluted	$0	$0	$0	$0.01
Net income per share:
Basic	$0.01	$0	$0.02	$0.06
Diluted	$0.01	$0	$0.02	$0.06
Weighted average number of shares:
Basic	89,594	79,742	89,107	75,071
Diluted	91,974	83,182	91,752	78,389

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Condensed Consolidated Statements Of Income
Discontinued Operation, Tax Effect of Income from Disposal of Discontinued Operations	$0	$0	$0	$463

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$444	$89	$1,743	$4,459
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on investments	-122	-8	-87	-63
Foreign currency translation adjustment	-1,005	326	-1,496	326
Comprehensive income (loss)	($683)	$407	$160	$4,722

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$1,743	$4,459
Adjustments to reconcile net income to net cash provided by operating activites:
Depreciation	2,513	1,888
Amortization of intangible assets	1,687	1,074
Amortization of capitalized software	255	92
Net accretion of discount and amortization of premium on marketable securities	659	0
Gain on disposal of discontinued operations	0	-589
Gain on escrow settlement	0	-565
Stock-based compensation	6,489	5,245
Deferred income tax provision	2,444	87
Other	268	490
Changes in assets and liabilities:
Accounts receivable, net	-2,062	-1,104
Inventory	235	-245
Other current and non-current assets	-505	-570
Deferred cost of goods sold	-179	211
Accounts payable	-736	-1,290
Accrued compensation	2,044	1,217
Accrued warranty	-237	182
Accrued taxes and fees	561	62
Deferred revenue	-840	757
Other current and non-current liabilities	-564	172
Net cash provided by operating activities	13,775	11,573
Cash flows from investing activities:
Purchases of property and equipment	-4,523	-2,081
Cost of capitalized software	-456	-590
Acquisition of business, net of cash acquired	0	-18,474
Proceeds from disposition of discontinued operations, net of transaction costs	0	3,000
Proceeds from maturity of investments	31,400	0
Sales of investments - available for sale	29,580	0
Purchases of investments - available for sale	-77,821	0
Net cash used in investing activities	-21,820	-18,145
Cash flows from financing activities:
Capital lease payments	-115	-26
Repurchase of common stock	-1,723	-320
Proceeds from issuance of common stock, net of issuance costs	0	125,758
Proceeds from issuance of common stock under employee stock plans	2,666	2,959
Net cash provided by financing activities	828	128,371
Effect of exchange rate changes on cash	656	10
Net (decrease) increase in cash and cash equivalents	-6,561	121,809
Cash and cash equivalents at the beginning of the period	59,159	50,305
Cash and cash equivalents at the end of the period	52,598	172,114
Supplemental cash flow information
Income taxes paid	181	479
Interest paid	$25	$4

DESCRIPTION_OF_THE_BUSINESS_No

DESCRIPTION OF THE BUSINESS - Note 1	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
DESCRIPTION OF THE BUSINESS - Note 1	1. DESCRIPTION OF THE BUSINESS
	THE COMPANY
	8x8, Inc. ("8x8" or the "Company") develops and markets a comprehensive portfolio of cloud-based communications and collaboration solutions that include hosted cloud telephony, unified communications, contact center, video conferencing and virtual desktop software and services. These unified communications and collaboration services are offered from the Internet cloud via a software-as-a-service subscription. The Company also provides cloud-based computing services. As of December 31, 2014, the Company had approximately 41,100 business customers.
	The Company was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996. The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the condensed consolidated financial statements refers to the fiscal year ending March 31 of the calendar year indicated (for example, fiscal 2015 refers to the fiscal year ending March 31, 2015).

BASIS_OF_PRESENTATION_Note_2

BASIS OF PRESENTATION - Note 2	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
BASIS OF PRESENTATION - Note 2	2. BASIS OF PRESENTATION
	The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2014. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.
	The March 31, 2014 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements and does not include all of the disclosures required by U.S. generally accepted accounting principles. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2014 and notes thereto included in the Company's fiscal 2014 Annual Report on Form 10-K.
	The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.
	Service and Product Revenue
	The Company recognizes service revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, price is fixed or determinable and collectability is reasonably assured. The Company defers recognition of service revenues in instances when cash receipts are received before services are delivered and recognizes deferred revenues ratably as services are provided.
	The Company recognizes revenue from product sales for which there are no related services to be rendered upon shipment to customers provided that persuasive evidence of an arrangement exists, the price is fixed, title has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements, and there are no remaining significant obligations. Gross outbound shipping and handling charges are recorded as revenue, and the related costs are included in cost of goods sold. Reserves for returns and allowances for customer sales are recorded at the time of shipment. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 985-605, Software - Revenue Recognition, the Company records shipments to distributors, retailers, and resellers, where the right of return exists, as deferred revenue. The Company defers recognition of revenue on sales to distributors, retailers, and resellers until products are resold to the customer.
	The Company records revenue net of any sales-related taxes that are billed to its customers. The Company believes this approach results in consolidated financial statements that are more easily understood by users.
	Under the terms of the Company's typical subscription agreement, new customers can terminate their service within 30 days of order placement and receive a full refund of fees previously paid. The Company has determined that it has sufficient history of subscriber conduct to make a reasonable estimate of cancellations within the 30-day trial period. Therefore, the Company recognizes new subscriber revenue in the month in which the new order was shipped, net of an allowance for expected cancellations.
	Multiple Element Arrangements
	ASC 605-25, Multiple Element Arrangements - Revenue Recognition, requires that revenue arrangements with multiple deliverables be divided into separate units of accounting if the deliverables in the arrangement meet specific criteria.  The provisioning of the 8x8 cloud service with the accompanying 8x8 IP telephone constitutes a revenue arrangement with multiple deliverables.  For arrangements with multiple deliverables, the Company allocates the arrangement consideration to all units of accounting based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the relative selling price to be used for allocating arrangement consideration to units of accounting as follows: (i) vendor-specific objective evidence of fair value ("VSOE"), (ii) third-party evidence of selling price ("TPE"), and (iii) best estimate of the selling price ("BESP").
	VSOE generally exists only when the Company sells the deliverable separately, on more than a limited basis, at prices within a relatively narrow range.  When VSOE cannot be established, the Company attempts to establish the selling price of deliverables based on relevant TPE. TPE is determined based on manufacturers’ prices for similar deliverables when sold separately, when possible. When the Company is unable to establish selling price using VSOE or TPE, it uses a BESP for the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. The Company determines BESP for a product or service by considering multiple factors including, but not limited to:
	the price list established by its management which is typically based on general pricing practices and targeted gross margin of products and services sold; and
	analysis of pricing history of new arrangements, including multiple element and stand-alone transactions.
	In accordance with the guidance of ASC 605-25, when the Company enters into revenue arrangements with multiple deliverables the Company allocates arrangement consideration, including activation fees, among the 8x8 IP telephones and subscriber services based on their relative selling prices. Arrangement consideration allocated to the IP telephones that is fixed or determinable and that is not contingent on future performance or deliverables is recognized as product revenues during the period of the sale less the allowance for estimated returns during the 30-day trial period. Arrangement consideration allocated to subscriber services telephones that is fixed or determinable and that is not contingent on future performance or deliverables is recognized ratably as service revenues as the related services are provided, which is generally over the initial contract term.
	Deferred Cost of Goods Sold
	Deferred cost of goods sold represents the cost of products sold for which the end customer or distributor has a right of return. The cost of the products sold is recognized contemporaneously with the recognition of revenue, when the subscriber has accepted the service.
	Cash, Cash Equivalents and Investments
	The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Management determines the appropriate categorization of its investments at the time of purchase and reevaluates the classification at each reporting date. The cost of the Company's investments is determined based upon specific identification.
	The Company's investments are comprised of mutual funds, commercial paper, corporate debt, municipal securities, asset backed securities, mortgage backed securities, international government securities, certificates of deposit and money market funds. At December 31, 2014 and March 31, 2014, all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive loss and disclosed as a separate component of consolidated stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of "other income, net" in the consolidated statements of income and are computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of a major financial institution.
	Available-for-sale investments were (in thousands):
							Gross			Gross
				Amortized			Unrealized			Unrealized			Estimated
	As of December 31, 2014			Costs			Gain			Loss			Fair Value
	Money market funds		$	16,821		$	-		$	-		$	16,821
	Fixed income
	Mutual funds			2,000			-			-129			1,871
	Commercial paper			22,948			4			-			22,952
	Corporate debt			71,890			47			-22			71,915
	Municipal securities			5,435			3			-7			5,431
	Asset backed securities			23,598			2			-6			23,594
	Mortgage backed securities			6,583			-			-56			6,527
	International government securities			800			2			-			802
	Certificates of deposit			2,200			-			-1			2,199
	Total available-for-sale investments		$	152,275		$	58		$	-221		$	152,112
	Reported as (in thousands):
	Cash and cash equivalents											$	16,821
	Short-term investments												135,291
	Total											$	152,112
	Contractual maturities of mutual funds, commercial paper, corporate debt, municipal securities, asset backed securities, mortgage backed securities, international government securities, certificates of deposit and money market funds as of December 31, 2014 are set forth below (in thousands):
	Due within one year		$	120,291
	Due after one year			31,821
	Total		$	152,112
							Gross			Gross
				Amortized			Unrealized			Unrealized			Estimated
	As of March 31, 2014			Costs			Gain			Loss			Fair Value
	Money market funds		$	32,611		$	-		$	-		$	32,611
	Fixed income
	Mutual funds			1,964			-			-55			1,909
	Commercial paper			30,374			5			-			30,379
	Corporate debt			63,621			35			-39			63,617
	Municipal securities			5,435			5			-1			5,439
	Asset backed securities			17,049			6			-1			17,054
	International government securities			800			4			-			804
	Total available-for-sale investments		$	151,854		$	55		$	-96		$	151,813
	Reported as (in thousands):
	Cash and cash equivalents											$	32,611
	Short-term investments												47,181
	Long-term investments												72,021
	Total											$	151,813
	Contractual maturities of mutual funds, commercial paper, corporate debt, municipal securities, asset backed securities, international government securities and money market funds as of March 31, 2014 are set forth below (in thousands):
	Due within one year		$	79,792
	Due after one year			72,021
	Total		$	151,813
Intangible Assets
Amortization expense for the customer relationship intangible asset is included in sales and marketing expenses. Amortization expense for technology is included in cost of service revenue. The carrying values of intangible assets were as follows (in thousands):
		31-Dec-14									31-Mar-14
		Gross									Gross
		Carrying			Accumulated			Net Carrying			Carrying			Accumulated			Net Carrying
		Amount			Amortization			Amount			Amount			Amortization			Amount
Technology	$	8,242		$	-2,699		$	5,543		$	8,242		$	-2,080		$	6,162
Customer relationships		9,686			-3,154			6,532			9,686			-1,710			7,976
Trade names/domains		957			-			957			957			-			957
Total acquired identifiable
intangible assets	$	18,885		$	-5,853		$	13,032		$	18,885		$	-3,790		$	15,095
At December 31, 2014, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands):
			Amount
Remaining 2015		$	550
2016			2,198
2017			2,191
2018			1,943
2019			1,697
Thereafter			3,496
Total		$	12,075
Research, Development and Software Costs
The Company accounts for software to be sold or otherwise marketed in accordance with ASC 985-20 - Costs of Software to be Sold, Leased or Marketed, which requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. The Company defines establishment of technological feasibility as the completion of a working model. Software development costs for software to be sold or otherwise marketed incurred prior to the establishment of technological feasibility are included in research and development and are expensed as incurred. Software development costs incurred subsequent to the establishment of technological feasibility through the period of general market availability of the product are capitalized, if material.
In the first nine months of fiscal 2015, the Company expensed all research and development costs in accordance with ASC 985-20. At December 31, 2014 and March 31, 2014, total capitalized software development costs included in other long-term assets was approximately $1.5 million and $1.0 million, respectively, and accumulated amortization costs related to capitalized software was approximately $0.4 million and $0.1 million, respectively.
In the first nine months of fiscal 2014, the Company capitalized $0.6 million in accordance with ASC 985-20.
The Company accounts for computer software developed or obtained for internal use in accordance with ASC 350-40 - Internal Use Software, which requires capitalization of certain software development costs incurred during the application development stage. In the first nine months of fiscal 2015, the Company capitalized $1.1 million in accordance with ASC 350-40, of which $0.6 million is classified as property and equipment and $0.5 million is classified as long-term assets. No such costs were capitalized in the first nine months of fiscal 2014.
Foreign Currency Translation
The Company has determined that the functional currency of its UK foreign subsidiary is the subsidiary's local currency, the British Pound Sterling ("GBP"), which the Company believes most appropriately reflects the current economic facts and circumstances of the UK subsidiary's operations. The assets and liabilities of the subsidiary are translated at the applicable exchange rate as of the end of the balance sheet period and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholders’ equity in the consolidated balance sheets.
Stock Purchase Right/Restricted Stock Unit and Option Activity
Stock purchase right activity for the nine months ended December 31, 2014 is summarized as follows:
					Weighted			Weighted
					Average			Average
					Grant-Date			Remaining
		Number of			Fair Market			Contractual
		Shares			Value			Term (in Years)
Balance at March 31, 2014		489,627		$	4.83			1.93
Granted		31,432			7.88
Vested		-202,575			3.96
Forfeited		-69,864			5.36
Balance at December 31, 2014		248,620		$	5.77			1.68
Restricted stock unit and performance stock unit activity for the nine months ended December 31, 2014 is summarized as follows:
								Weighted
					Weighted			Average
					Average			Remaining
		Number of			Purchase			Contractual
		Shares			Price			Term (in Years)
Balance at March 31, 2014		1,134,856		$	-			2.00
Granted		1,849,300
Vested		-166,758
Forfeited		-141,600
Balance at December 31, 2014		2,675,798		$	-			2.06
Stock option activity and shares available for grant for all equity incentive plans for the nine months ended December 31, 2014 is summarized as follows:
					Shares			Weighted
		Shares			Subject to			Average
		Available			Options			Exercise Price
		for Grant			Outstanding			Per Share
Balance at March 31, 2014		1,613,943			6,002,382		$	4.14
Additional shares authorized for grant		8,000,000
Granted - options (1)		-1,295,906			992,764			7.09
Stock purchase rights/restricted stock unit (2)		-1,880,732			-			-
Exercised		-			-1,041,982			1.60
Canceled/forfeited - options		392,076			-392,076			5.74
Canceled/forfeited - restricted stock unit		142,910			-
Balance at December 31, 2014		6,972,291			5,561,088		$	5.03
-1	As reflected in the preceding table, for each share awarded as a stock option under the 2012 Amended and Restated Equity Incentive Plan, an equivalent of 1.5 shares were deducted from the shares available for grant balance.
-2	The reduction to shares available for grant includes awards granted of 1,880,732 shares.
The following table summarizes stock options outstanding and exercisable at December 31, 2014:
		Options Outstanding										Options Exercisable
					Weighted		Weighted								Weighted
					Average		Average								Average
					Exercise		Remaining			Aggregate					Exercise			Aggregate
Range of					Price		Contractual			Intrinsic					Price			Intrinsic
Exercise Price		Shares			Per Share		Life (Years)			Value		Shares			Per Share			Value
$0.55 - $1.26		1,204,815		$	1.10		2.83		$	9,702,578		1,204,815		$	1.10		$	9,702,578
$1.27 - $2.58		1,118,397		$	1.61		1.62			8,444,013		1,113,189		$	1.61			8,407,885
$2.81 - $6.86		1,700,263		$	6.03		8.05			5,326,085		658,248		$	5.35			2,505,175
$7.52 - $9.74		1,387,613		$	9.29		8.76			346,598		368,942		$	9.63			1,866
$10.97 - $11.26		150,000		$	11.11		9.02			-		21,875		$	10.97			-
		5,561,088							$	23,819,274		3,367,069					$	20,617,504
Stock-based Compensation Expense
The Company accounts for its employee stock options, stock purchase rights, restricted stock units including restricted performance stock units granted under the 1996 Stock Plan, 1996 Director Option Plan, the 2006 Stock Plan, the 2003 Contactual Plan, the 2012 Equity Incentive Plan, the 2013 New Employee Inducement Incentive Plan and stock purchase rights under the 1996 Employee Stock Purchase Plan (collectively "Equity Compensation Plans") under the provisions of ASC 718 - Stock Compensation. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant), net of estimated forfeitures.
To value option grants, stock purchase rights and restricted stock units under the Equity Compensation Plans for stock-based compensation, the Company used the Black-Scholes option valuation model. Fair value determined using the Black-Scholes option valuation model varies based on assumptions used for the expected stock prices volatility, expected life, risk-free interest rates and future dividend payments. For the three and nine months ended December 31, 2014 and 2013, the Company used the historical volatility of its stock over a period equal to the expected life of the options. The expected life assumptions represent the weighted-average period stock-based awards are expecting to remain outstanding. These expected life assumptions were established through the review of historical exercise behavior of stock-based award grants with similar vesting periods. The risk-free interest rate is based on the closing market bid yields on actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the expected term of the option. The dividend yield assumption is based on the Company's history and expectation of future dividend payout. Compensation expense for stock-based payment awards is recognized using the straight-line single-option method and includes the impact of estimated forfeitures.
The Company has issued restricted performance stock units to a group of executives with vesting that is contingent on both market performance and continued service. For the market-based restricted performance stock units issued during the nine months ended December 31, 2014:
the number of shares of the Company's stock to be received at vesting if applicable service requirements are also met will range from 0% to 100% of the target amount based total shareholder return ("TSR"), which compares the performance of the price per share of the Company's common stock with the NASDAQ Composite Index ("Index") for the three performance periods ending March 31, 2016, March 31, 2017 and March 31, 2018, in the following manner: where in each such measurement period, (1) if the performance return on the price per share of the Company's common stock exceeds the performance return on the NASDAQ Composite Index, (which shall be determined by subtracting the percentage return on the NASDAQ Composite Index from the percentage return on the price per share of the Common Stock), then all of the TSR Performance Shares for such measurement period will be deemed earned and will vest; (2) if the performance return on the price per share of Common Stock is more than 50% lower than the performance return on the NASDAQ Composite Index, then none of the TSR Performance Shares for such measurement period will be deemed earned and will vest; and (3) if the performance return on the price per share of Common Stock is between 0% and 50% lower than the performance return on the NASDAQ Composite Index, then the number of TSR Performance Shares deemed earned and vesting for such measurement period will be reduced by 2% for each 1% by which the performance return on the NASDAQ Composite Index exceeds the performance return on the Common Stock, and
the number of shares of the Company's stock to be received at vesting will range from 0% or 100% of the target amount based on four tranches, with each tranche vesting at the later of (a) the satisfaction of the applicable service-based vesting requirement for that tranche, and (b) on the first date that the average stock price of the Company's common stock for a consecutive 30 trading day period exceeds 150% of the grant date stock price. The minimum service vesting requirement for each tranche is as follows:
Tranche 1: One year following the date of the grant
Tranche 2: Two years following the date of the grant
Tranche 3: Three years following the date of the grant
Tranche 4: Four years following the date of the grant
To value these market-based restricted performance stock units under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant.  Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the NASDAQ Composite Index, risk free interest rates, and future dividend payments.  For the nine months ended December 31, 2014, the Company used the historical volatility and correlation of our stock and the Index over a period equal to the remaining performance period as of the grant date. The risk-free interest rate was based on the closing market bid yields on actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the remaining performance period as of the grant date. The dividend yield assumption was based on our history and expectation of future dividend payout.  Compensation expense for restricted stock units with performance and market conditions is recognized over the requisite service period using the straight-line method on a tranche by tranche basis and includes the impact of estimated forfeitures.
As of December 31, 2014, unamortized stock-based compensation expense related to unvested stock awards was approximately $24.7 million, which is expected to be recognized over a weighted average period of 2.93 years.
The following table summarizes the assumptions used to compute reported stock-based compensation to employees and directors for the three and nine months ended December 31, 2014 and 2013:
			Three Months Ended						Nine Months Ended
			December 31,						December 31,
			2014			2013			2014			2013
Expected volatility			61%			63%			61%			64%
Expected dividend yield			-			-			-			-
Risk-free interest rate			1.71%			1.62%			1.71%			1.86%
Weighted average expected option term			6.10 years			5.59 years			6.00 years			6.00 years
Weighted average fair value of options granted		$	4.02		$	5.64		$	4.01		$	5.64
In accordance with ASC 718 - Stock Compensation, the Company recorded $2.4 million and $2.1 million in compensation expense relative to stock-based awards for the three months ended December 31, 2014 and 2013, and $5.8 million and $4.8 million for the nine months ended December 31, 2014 and 2013, respectively.
Employee Stock Purchase Plan
Under the Company's Employee Stock Purchase Plan, or ESPP, eligible employees can participate and purchase common stock semi-annually through payroll deductions at a price equal to 85% of the fair market value of the common stock at the beginning of each one year offering period or the end of the applicable six month purchase period within that offering period, whichever is lower. The contribution amount may not exceed 10% of an employee's base compensation, including commissions but not including bonuses and overtime. The Company accounts for the ESPP as a compensatory plan and recorded compensation expense of $0.2 million and $0.1 million for the three months ended December 31, 2014 and 2013, and $0.7 million and $0.4 million for the nine months ended December 31, 2014 and 2013, respectively, in accordance with ASC 718.
The estimated fair value of ESPP options granted under the Employee Stock Purchase Plan was estimated at the date of grant using Black-Scholes pricing model with the following weighted average assumptions:
			Three Months Ended						Nine Months Ended
			December 31,						December 31,
			2014			2013			2014			2013
Expected volatility			-			-			46%			38%
Expected dividend yield			-			-			-			-
Risk-free interest rate			-			-			0.90%			0.11%
Weighted average expected ESPP option term			-			-			0.75 years			0.75 years
Weighted average fair value of
ESPP options granted		$	-		$	-		$	2.46		$	2.6
As of December 31, 2014, there were approximately $0.2 million of total unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.5 years.
ASC 718 requires the benefits of tax deductions in excess of recognized compensation costs to be reported as a financing cash flow, rather than as an operating cash flow. The future realization of tax benefits related to stock-based compensation is dependent upon the timing of employee exercises and future taxable income, among other factors. The Company did not realize any tax benefit from the stock-based compensation charges incurred during the three and nine months ended December 31, 2014 and 2013, respectively.
The following table summarizes the classification of stock-based compensation expense related to employee stock awards and employee stock purchases under ASC 718 among the Company's operating functions for the three and nine months ended December 31, 2014 and 2013 which was recorded as follows (in thousands):
			Three Months Ended						Nine Months Ended
			December 31,						December 31,
			2014			2013			2014			2013
Cost of service revenue		$	201		$	101		$	476		$	237
Cost of product revenue			-			-			-			-
Research and development			420			339			1,049			634
Sales and marketing			966			660			2,620			1,400
General and administrative			1,047			2,132			2,344			2,974
Total stock-based compensation expense related to employee
stock awards and employee stock purchases, pre-tax			2,634			3,232			6,489			5,245
Tax benefit			-			-			-			-
Stock-based compensation expense related to employee
stock awards and employee stock purchases, net of tax		$	2,634		$	3,232		$	6,489		$	5,245
Recent Accounting Pronouncements
In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the IASB has issued IFRS 15, Revenue from Contracts with Customers. The issuance of these documents completes the joint effort by the FASB and the IASB to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and IFRS. The new guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance.   For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  Early application is not permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation-Stock Compensation, as it relates to such awards. ASU 2014-12 is effective for us in our first quarter of fiscal 2017 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effect of applying ASU 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
In November 2014, the FASB issued ASU 2014-17, Pushdown Accounting. This ASU provides companies with the option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity.  The election to apply pushdown accounting can be made either in the period in which the change of control occurred, or in a subsequent period.  If the election is made in a subsequent period, it would be considered a change in accounting principle and treated in accordance with Topic 250, Accounting Changes and Error Corrections.  This ASU is effective as of November 18, 2014.  The adoption did not have a material impact on the Company's results of operations, cash flows or financial position.

FAIR_VALUE_MEASURMENT_Note_3

FAIR VALUE MEASURMENT - Note 3	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
FAIR VALUE MEASURMENT - Note 3	3. FAIR VALUE MEASUREMENT
	The following tables present the Company's fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands):
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable		Balance at
			Identical Assets		Inputs		Inputs		December 31,
	31-Dec-14		(Level 1)		(Level 2)		(Level 3)		2014
	Cash equivalents:
	Money market funds	$	16,821		-	$	-	$	16,821
	Short-term investments:
	Money market funds		1,871		-		-		1,871
	Commercial paper		-		22,952		-		22,952
	Corporate debt		-		71,915		-		71,915
	Municipal securities		-		5,431		-		5,431
	Asset backed securities		-		23,594		-		23,594
	Mortgage backed securities		-		6,527		-		6,527
	International government securities		-		802		-		802
	Certificates of deposit		-		2,199		-		2,199
	Total	$	18,692	$	133,420	$	-	$	152,112
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable		Balance at
			Identical Assets		Inputs		Inputs		March 31,
	31-Mar-14		(Level 1)		(Level 2)		(Level 3)		2014
	Cash equivalents:
	Money market funds	$	32,611	$	-	$	-	$	32,611
	Short-term investments:
	Mutual funds		1,909		-		-		1,909
	Commercial paper		-		30,379		-		30,379
	Corporate debt		-		14,893		-		14,893
	Long-term investments:
	Corporate debt		-		48,724		-		48,724
	Municipal securities		-		5,439		-		5,439
	Asset backed securities		-		17,054		-		17,054
	International government securities		-		804		-		804
	Total	$	34,520	$	117,293	$	-	$	151,813

BALANCE_SHEET_DETAIL_Note_4

BALANCE SHEET DETAIL - Note 4	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
BALANCE SHEET DETAIL - Note 4	4. BALANCE SHEET DETAIL
			December 31,		March 31,
			2014		2014
	Inventory (in thousands):
	Work-in-process	$	11	$	23
	Finished goods		521		788
		$	532	$	811

NET_INCOME_PER_SHARE_Note_5

NET INCOME PER SHARE - Note 5	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NET INCOME PER SHARE - Note 5	5. NET INCOME PER SHARE
	Basic net income per share is computed by dividing net income available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include shares issuable upon exercise of outstanding stock options and under the ESPP.
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
			(in thousands, except per share amounts)
	Numerator:
	Income from continuing operations	$	444	$	89	$	1,743	$	3,569
	Income from discontinued operations, net of income tax provision		-		-		-		890
	Net income available to common stockholders		444		89		1,743		4,459
	Denominator:
	Common shares		89,594		79,742		89,107		75,071
	Denominator for basic calculation		89,594		79,742		89,107		75,071
	Employee stock options		1,963		2,982		2,210		2,938
	Stock awards		417		458		435		380
	Denominator for diluted calculation		91,974		83,182		91,752		78,389
	Income per share - continuing operations
	Basic	$	0.01	$	0.00	$	0.02	$	0.05
	Diluted	$	0.01	$	0.00	$	0.02	$	0.05
	Income per share - discontinued operations
	Basic	$	0.00	$	0.00	$	0.00	$	0.01
	Diluted	$	0.00	$	0.00	$	0.00	$	0.01
	Net income per share
	Basic	$	0.01	$	0.00	$	0.02	$	0.06
	Diluted	$	0.01	$	0.00	$	0.02	$	0.06
	The following shares attributable to outstanding stock options and stock purchase rights were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands):
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
	Employee stock options		2,106		1,266		1,634		550
	Stock purchase rights		370		18		59		190
	Total anti-dilutive employee stock-based securities		2,476		1,284		1,693		740

INCOME_TAXES_Note_6

INCOME TAXES - Note 6	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
INCOME TAXES - Note 6	6. INCOME TAXES
	For the three and nine months ended December 31, 2014, the Company recorded a provision for income taxes of $0.6 million and $2.7 million which was primarily attributable to income from continuing operations. For the three months ended December 31, 2013, the Company recorded a benefit for income taxes of $1.3 million. For the nine months ended December 31, 2013, the Company recorded a provision for income taxes of $0.5 million which was primarily attributable to income from continuing operations ($0.7 million), income from discontinued operations ($0.2 million), and gain on disposal of discontinued operations ($0.5 million), reduced by a tax benefit for an adjustment to credit carryforwards ($0.9 million).
	The effective tax rate is calculated by dividing the income tax provision by net income before income tax expense.
	At March 31, 2014, there were $2.2 million of unrecognized tax benefits that, if recognized, would have affected the effective tax rate.  The Company does not believe that there has been any significant change in the unrecognized tax benefits in the nine-month period ended December 31, 2014, and does not expect the remaining unrecognized tax benefit to change materially in the next 12 months. To the extent that the remaining unrecognized tax benefits are ultimately recognized, they will have an impact on the effective tax rate in future periods.
	The Company is subject to taxation in the U.S., California and various other states and foreign jurisdictions in which it has or had a subsidiary or branch operations or it is collecting sales tax. All tax returns from fiscal 1995 to fiscal 2014 may be subject to examination by the Internal Revenue Service, California and various other states. As of January 21, 2014, there were no active federal or state income tax audits. Returns filed in foreign jurisdictions may be subject to examination for the fiscal years 2010 to 2014.

SEGMENT_REPORTING_Note_7

SEGMENT REPORTING - Note 7	9 Months Ended
	Dec. 31, 2014
Segment Reporting [Abstract]
SEGMENT REPORTING - Note 7	7. SEGMENT REPORTING
	ASC 280 - Segment Reporting establishes annual and interim reporting standards for an enterprise's business segments and related disclosures about its products, services, geographic areas and major customers. Under ASC 280, the method for determining what information to report is based upon the way management organizes the operating segments within the Company for making operating decisions and assessing financial performance. The Company has determined that it has only one reportable segment. The Company's chief operating decision makers, the Chief Executive Officer, Chief Financial Officer and Chief Technology Officer, evaluate performance of the Company and make decisions regarding allocation of resources based on total Company results.
	No customer represented greater than 10% of the Company's total revenues for the three and nine months ended December 31, 2014 or 2013. The Company's revenue distribution by geographic region (based upon the destination of shipments and the customer's service address) was as follows:
			Three Months Ended			Nine Months Ended
			December 31,			December 31,
			2014		2013	2014	2013
	Americas (principally US)		92%		96%	92%	98%
	Europe		7%		3%	7%	1%
	Asia Pacific		1%		1%	1%	1%
			100%		100%	100%	100%
	Geographic area data is based upon the location of the property and equipment and is as follows (in thousands):
			December 31,		March 31,
			2014		2014
	Americas	$	8,114	$	6,305
	Europe		1,518		1,087
	Asia Pacific		547		319
	Total	$	10,179	$	7,711

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES - Note 8	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
COMMITMENTS AND CONTINGENCIES - Note 8	8. COMMITMENTS AND CONTINGENCIES
	Guarantees
	Indemnifications
	In the normal course of business, the Company indemnifies other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters. Under these arrangements, the Company typically agrees to hold the other party harmless against losses arising from a breach of representations or covenants, intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors.
	It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit.
	Product Warranties
	The Company accrues for the estimated costs that may be incurred under its product warranties upon revenue recognition. Changes in the Company's product warranty liability, which is included in cost of product revenue in the condensed consolidated statements of income, were as follows (in thousands):
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
	Balance at beginning of period	$	538	$	552	$	660	$	452
	Accruals for warranties		54		274		123		744
	Settlements		-86		-192		-277		-562
	Changes in estimate		-83		-		-83		-
	Balance at end of period	$	423	$	634	$	423	$	634
	Minimum Third Party Customer Support Commitments
	In the third quarter of fiscal 2010, the Company amended a contract with one of its third party customer support vendors containing a minimum monthly commitment of approximately $0.4 million. The agreement requires a 150-day notice to terminate. The total remaining obligation as of December 31, 2014 under the amended contract is $2.2 million.
	Minimum Third Party Network Service Provider Commitments
	The Company entered into contracts with multiple vendors for third party network services that expire on various dates in fiscal 2015 through 2018. At December 31, 2014, future minimum annual payments under these third party network service contracts were as follows (in thousands):
	Year ending March 31:
	Remaining 2015			$	747
	2016				3,014
	2017				2,452
	2018				891
	Total minimum payments			$	7,104
	Legal Proceedings
	From time to time, the Company may become involved in various legal claims and litigation that arise in the normal course of its operations. While the results of such claims and litigation cannot be predicted with certainty, the Company is not currently aware of any such matters that it believes would have a material adverse effect on its financial position, results of operations or cash flows.
	On February 22, 2011, the Company was named a defendant in a lawsuit, Bear Creek Technologies, Inc. v. 8x8, Inc. et al., along with 20 other defendants. On August 17, 2011, the suit was dismissed without prejudice as to the Company under Rule 21 of the Federal Rules of Civil Procedure. On August 17, 2011, Bear Creek Technologies, Inc. refiled its suit against the Company in the United States District Court for the District of Delaware. Further, on November 28, 2012, the U.S. Patent & Trademark Office initiated a Reexamination proceeding with a Reexamination Declaration explaining that there is a substantial new question of patentability, based on four separate grounds and affecting each claim of the patent which is the basis for the complaint filed against us.  On March 26, 2013, the USPTO issued a first Office Action in the Reexamination, with all claims of the '722 patent being rejected on each of the four separate grounds raised in the Request for Reexamination.  On July 10, 2013, the Company filed an informational pleading in support of and joining a motion to stay the proceeding in the District Court; the District Court granted the motion on July 17, 2013, based on the possibility that at least one of the USPTO rejections will be upheld and considering the USPTO's conclusion that Bear Creek's patent suffers from a defective claim for priority.  On March 24, 2014, the USPTO issued another Office Action in which the rejections of the claims were maintained.  On August 15, 2014, the USPTO issued a Right of Appeal Notice, as the USPTO maintained all rejections of the patent claims.  On September 15, 2014, Bear Creek Technologies, Inc. filed a Notice of Appeal of this decision with the Patent Trial and Appeal Board. The case is currently on appeal. The Company believes that it has meritorious defenses to these claims and is presenting a vigorous defense, but we cannot estimate potential liability in this case at this early stage of litigation.
	On March 31, 2014, the Company was named as a defendant in a lawsuit, CallWave Communications LLC v. 8x8, Inc.  CallWave Communications also sued Fonality Inc. on March 31, 2014, and previously had sued other companies including Verizon, Google, T-Mobile, and AT&T. The Company answered the complaint and filed counterclaims in response thereto. We cannot estimate potential liability in this case at this early stage of the litigation.
	On December 31, 2014, the Company was named as a defendant in a lawsuit, Adaptive Data, LLC v. 8x8, Inc.  Adaptive Data, LLC also sued another 36 other defendants on December 31, 2014 and another 16 defendants on January 5, 2015 regarding the same patents asserted in our case. Service of process has not yet been effected on the Company.
	State and Municipal Taxes
	From time to time, the Company has received inquiries from a number of state and municipal taxing agencies with respect to the remittance of taxes. The Company collects or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company.

PATENT_SALE_Note_9

PATENT SALE - Note 9	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
PATENT SALE - Note 9	9. PATENT SALE
	On June 22, 2012, the Company entered into a patent purchase agreement and sold a family of patents to a third party for $12.0 million plus a future payment of up to a maximum of $3.0 million based on future license agreements entered into by the third party purchaser. In August 2014, the Company collected and recognized a gain of $1.0 million attributable to a license agreement obtained by the third party purchaser. As of December 31, 2014, there remained a maximum of $1.0 million of potential future payments under the agreement based on future license agreements obtained by the third party purchaser. Under the terms and conditions of the patent purchase agreement, the Company has retained certain limited rights to continue to use the patents. The patent purchase agreement contains representations and warranties customary for transactions of this type.

GAIN_ON_SETTLEMENT_OF_ESCROW_C

GAIN ON SETTLEMENT OF ESCROW CLAIM - Note 10	9 Months Ended
	Dec. 31, 2014
Other Income and Expenses [Abstract]
GAIN ON SETTLEMENT OF ESCROW CLAIM - Note 10	10. GAIN ON SETTLEMENT OF ESCROW CLAIM
	In December 2013, the Company settled an escrow claim for indemnification with the sellers of Contactual, Inc. Under the terms of the settlement, the Company recorded a gain of $0.6 million. The settlement proceeds have been recognized in other income, net. Upon receipt of the cash or shares, the remaining escrow account balance was released to the sellers.

DISCONTINUED_OPERATIONS_Note_1

DISCONTINUED OPERATIONS - Note 11	9 Months Ended
	Dec. 31, 2014
Discontinued Operations - Note 11
DISCONTINUED OPERATIONS - Note 11	11. DISCONTINUED OPERATIONS
	On September 30, 2013, the Company completed the sale of its dedicated server hosting business to IRC Company, Inc. ("IRC") and, as a result, no longer provides dedicated server hosting services. In the transaction, IRC purchased 100% of the stock of Central Host, Inc., which had been wholly owned by the Company and all of the assets specific to the dedicated server hosting business.
	The Company sold its dedicated server hosting business for total consideration of $3.0 million in cash, which the Company received on October 1, 2013.
	The dedicated server hosting business has been reported as discontinued operations. The results of operations of these discontinued operations is as follows (in thousands):
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
	Revenue	$	-	$	-	$	-	$	1,430
	Operating expense		-		-		-		922
	Income before income taxes		-		-		-		508
	Provision for income taxes		-		-		-		207
	Income from discontinued operations		-		-		-		301
	Gain on disposal of discontinued operations,
	net of income tax provision of $463		-		-		-		589

STOCK_REPURCHASES_Note_12

STOCK REPURCHASES - Note 12	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
STOCK REPURCHASES - Note 12	12. STOCK REPURCHASES
	In July 2014, the Company's board of directors authorized the Company to purchase up to $15.0 million of its common stock from time to time until July 22, 2015 (the "Repurchase Plan"). Share repurchases, if any, will be funded with available cash. Repurchases under the Repurchase Plan may be made through open market purchases at prevailing market prices or in privately negotiated transactions. The timing, volume and nature of share repurchases are subject to market prices and conditions, applicable securities laws and other factors, and are at the discretion of the Company's management. Share repurchases under the Repurchase Plan may be commenced, suspended or discontinued at any time. The remaining authorized repurchase amount at December 31, 2014 was approximately $13.4 million. The activity under the Repurchase Plan for the three months ended December 31, 2014 is summarized as follows:
				Weighted
		Shares		Average Price		Amount
		Repurchased		Per Share		Repurchased
	Repurchase of common stock	216,965	$	7.48	$	1,627,210
	Balance at December 31, 2014	216,965	$	7.48	$	1,627,210

Summary_of_Significant_Account

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
Company	THE COMPANY
	8x8, Inc. ("8x8" or the "Company") develops and markets a comprehensive portfolio of cloud-based communications and collaboration solutions that include hosted cloud telephony, unified communications, contact center, video conferencing and virtual desktop software and services. These unified communications and collaboration services are offered from the Internet cloud via a software-as-a-service subscription. The Company also provides cloud-based computing services. As of September 30, 2014, the Company had approximately 40,400 business customers.
	The Company was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996.
Fiscal Period	The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the condensed consolidated financial statements refers to the fiscal year ending March 31 of the calendar year indicated (for example, fiscal 2015 refers to the fiscal year ending March 31, 2015).
Basis of Presentation	The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2014. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.
	The March 31, 2014 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements and does not include all of the disclosures required by U.S. generally accepted accounting principles. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2014 and notes thereto included in the Company's fiscal 2014 Annual Report on Form 10-K.
	The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.
Service Revenue	The Company recognizes service revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, price is fixed or determinable and collectability is reasonably assured. The Company defers recognition of service revenues in instances when cash receipts are received before services are delivered and recognizes deferred revenues ratably as services are provided.
Product Revenue	The Company recognizes revenue from product sales for which there are no related services to be rendered upon shipment to customers provided that persuasive evidence of an arrangement exists, the price is fixed, title has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements, and there are no remaining significant obligations. Gross outbound shipping and handling charges are recorded as revenue, and the related costs are included in cost of goods sold. Reserves for returns and allowances for customer sales are recorded at the time of shipment. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 985-605, Software - Revenue Recognition, the Company records shipments to distributors, retailers, and resellers, where the right of return exists, as deferred revenue. The Company defers recognition of revenue on sales to distributors, retailers, and resellers until products are resold to the customer.
	The Company records revenue net of any sales-related taxes that are billed to its customers. The Company believes this approach results in consolidated financial statements that are more easily understood by users.
	Under the terms of the Company's typical subscription agreement, new customers can terminate their service within 30 days of order placement and receive a full refund of fees previously paid. The Company has determined that it has sufficient history of subscriber conduct to make a reasonable estimate of cancellations within the 30-day trial period. Therefore, the Company recognizes new subscriber revenue in the month in which the new order was shipped, net of an allowance for expected cancellations.
Revenue Recognition for Multiple Element Arrangements	Multiple Element Arrangements
	ASC 605-25, Multiple Element Arrangements - Revenue Recognition, requires that revenue arrangements with multiple deliverables be divided into separate units of accounting if the deliverables in the arrangement meet specific criteria.  The provisioning of the 8x8 cloud service with the accompanying 8x8 IP telephone constitutes a revenue arrangement with multiple deliverables.  For arrangements with multiple deliverables, the Company allocates the arrangement consideration to all units of accounting based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the relative selling price to be used for allocating arrangement consideration to units of accounting as follows: (i) vendor-specific objective evidence of fair value ("VSOE"), (ii) third-party evidence of selling price ("TPE"), and (iii) best estimate of the selling price ("BESP").
	VSOE generally exists only when the Company sells the deliverable separately, on more than a limited basis, at prices within a relatively narrow range.  When VSOE cannot be established, the Company attempts to establish the selling price of deliverables based on relevant TPE. TPE is determined based on manufacturers’ prices for similar deliverables when sold separately, when possible. When the Company is unable to establish selling price using VSOE or TPE, it uses a BESP for the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. The Company determines BESP for a product or service by considering multiple factors including, but not limited to:
	the price list established by its management which is typically based on general pricing practices and targeted gross margin of products and services sold; and
	analysis of pricing history of new arrangements, including multiple element and stand-alone transactions.
	In accordance with the guidance of ASC 605-25, when the Company enters into revenue arrangements with multiple deliverables the Company allocates arrangement consideration, including activation fees, among the 8x8 IP telephones and subscriber services based on their relative selling prices. Arrangement consideration allocated to the IP telephones that is fixed or determinable and that is not contingent on future performance or deliverables is recognized as product revenues during the period of the sale less the allowance for estimated returns during the 30-day trial period. Arrangement consideration allocated to subscriber services telephones that is fixed or determinable and that is not contingent on future performance or deliverables is recognized ratably as service revenues as the related services are provided, which is generally over the initial contract term.
Deferred Cost of Goods Sold	Deferred Cost of Goods Sold
	Deferred cost of goods sold represents the cost of products sold for which the end customer or distributor has a right of return. The cost of the products sold is recognized contemporaneously with the recognition of revenue, when the subscriber has accepted the service.
Cash and Equivalents	Cash, Cash Equivalents and Investments
	The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Management determines the appropriate categorization of its investments at the time of purchase and reevaluates the classification at each reporting date. The cost of the Company's investments is determined based upon specific identification.
	The Company's investments are comprised of mutual funds, commercial paper, corporate debt, municipal securities, asset backed securities, mortgage backed securities, international government securities, certificates of deposit and money market funds. At December 31, 2014 and March 31, 2014, all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive loss and disclosed as a separate component of consolidated stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of "other income, net" in the consolidated statements of income and are computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of a major financial institution.
Investments	Investments
	The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Management determines the appropriate categorization of its investments at the time of purchase and reevaluates the classification at each reporting date. The cost of the Company's investments is determined based upon specific identification.
	The Company's investments are comprised of mutual funds, commercial paper, corporate debt, municipal securities, asset backed securities, mortgage backed securities, international government securities, certificates of deposit and money market funds. At December 31, 2014 and March 31, 2014, all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive loss and disclosed as a separate component of consolidated stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of "other income, net" in the consolidated statements of income and are computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of a major financial institution.
Intangible Assets	Intangible Assets
	Amortization expense for the customer relationship intangible asset is included in sales and marketing expenses. Amortization expense for technology is included in cost of service revenue.
Research, Development and Software Costs	Research, Development and Software Costs
	The Company accounts for software to be sold or otherwise marketed in accordance with ASC 985-20 - Costs of Software to be Sold, Leased or Marketed, which requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. The Company defines establishment of technological feasibility as the completion of a working model. Software development costs for software to be sold or otherwise marketed incurred prior to the establishment of technological feasibility are included in research and development and are expensed as incurred. Software development costs incurred subsequent to the establishment of technological feasibility through the period of general market availability of the product are capitalized, if material.
	In the first nine months of fiscal 2015, the Company expensed all research and development costs in accordance with ASC 985-20. At December 31, 2014 and March 31, 2014, total capitalized software development costs included in other long-term assets was approximately $1.0 million for both periods, and accumulated amortization costs related to capitalized software was approximately $0.4 million and $0.1 million, respectively.
	In the first nine months of fiscal 2014, the Company capitalized $0.6 million in accordance with ASC 985-20.
	The Company accounts for computer software developed or obtained for internal use in accordance with ASC 350-40 - Internal Use Software, which requires capitalization of certain software development costs incurred during the application development stage. In the first nine months of fiscal 2015, the Company capitalized $1.1 million in accordance with ASC 350-40, of which $0.6 million is classified as property and equipment and $0.5 million is classified as long-term assets. No such costs were capitalized in the first nine months of fiscal 2014.
Foreign Currency Translation	Foreign Currency Translation
	The Company has determined that the functional currency of its UK foreign subsidiary is the subsidiary's local currency, the British Pound Sterling ("GBP"), which the Company believes most appropriately reflects the current economic facts and circumstances of the UK subsidiary's operations. The assets and liabilities of the subsidiary are translated at the applicable exchange rate as of the end of the balance sheet period and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholders' equity in the consolidated balance sheets.
Accounting for Stock-Based Compensation	Stock-based Compensation Expense
	The Company accounts for its employee stock options, stock purchase rights, restricted stock units including restricted performance stock units granted under the 1996 Stock Plan, 1996 Director Option Plan, the 2006 Stock Plan, the 2003 Contactual Plan, the 2012 Equity Incentive Plan, the 2013 New Employee Inducement Incentive Plan and stock purchase rights under the 1996 Employee Stock Purchase Plan (collectively "Equity Compensation Plans") under the provisions of ASC 718 - Stock Compensation. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant), net of estimated forfeitures.
	To value option grants, stock purchase rights and restricted stock units under the Equity Compensation Plans for stock-based compensation, the Company used the Black-Scholes option valuation model. Fair value determined using the Black-Scholes option valuation model varies based on assumptions used for the expected stock prices volatility, expected life, risk-free interest rates and future dividend payments. For the three and nine months ended December 31, 2014 and 2013, the Company used the historical volatility of its stock over a period equal to the expected life of the options. The expected life assumptions represent the weighted-average period stock-based awards are expecting to remain outstanding. These expected life assumptions were established through the review of historical exercise behavior of stock-based award grants with similar vesting periods. The risk-free interest rate is based on the closing market bid yields on actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the expected term of the option. The dividend yield assumption is based on the Company's history and expectation of future dividend payout. Compensation expense for stock-based payment awards is recognized using the straight-line single-option method and includes the impact of estimated forfeitures.
	The Company has issued restricted performance stock units to a group of executives with vesting that is contingent on both market performance and continued service. For the market-based restricted performance stock units issued during the nine months ended December 31, 2014:
	the number of shares of the Company's stock to be received at vesting if applicable service requirements are also met will range from 0% to 100% of the target amount based total shareholder return ("TSR"), which compares the performance of the price per share of the Company's common stock with the NASDAQ Composite Index ("Index") for the three performance periods ending March 31, 2016, March 31, 2017 and March 31, 2018, in the following manner: where in each such measurement period, (1) if the performance return on the price per share of the Company's common stock exceeds the performance return on the NASDAQ Composite Index, (which shall be determined by subtracting the percentage return on the NASDAQ Composite Index from the percentage return on the price per share of the Common Stock), then all of the TSR Performance Shares for such measurement period will be deemed earned and will vest; (2) if the performance return on the price per share of Common Stock is more than 50% lower than the performance return on the NASDAQ Composite Index, then none of the TSR Performance Shares for such measurement period will be deemed earned and will vest; and (3) if the performance return on the price per share of Common Stock is between 0% and 50% lower than the performance return on the NASDAQ Composite Index, then the number of TSR Performance Shares deemed earned and vesting for such measurement period will be reduced by 2% for each 1% by which the performance return on the NASDAQ Composite Index exceeds the performance return on the Common Stock, and
	the number of shares of the Company's stock to be received at vesting will range from 0% or 100% of the target amount based on four tranches, with each tranche vesting at the later of (a) the satisfaction of the applicable service-based vesting requirement for that tranche, and (b) on the first date that the average stock price of the Company's common stock for a consecutive 30 trading day period exceeds 150% of the grant date stock price. The minimum service vesting requirement for each tranche is as follows:
	Tranche 1: One year following the date of the grant
	Tranche 2: Two years following the date of the grant
	Tranche 3: Three years following the date of the grant
	Tranche 4: Four years following the date of the grant
	To value these market-based restricted performance stock units under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant.  Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the NASDAQ Composite Index, risk free interest rates, and future dividend payments.  For the nine months ended December 31, 2014, the Company used the historical volatility and correlation of our stock and the Index over a period equal to the remaining performance period as of the grant date. The risk-free interest rate was based on the closing market bid yields on actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the remaining performance period as of the grant date. The dividend yield assumption was based on our history and expectation of future dividend payout.  Compensation expense for restricted stock units with performance and market conditions is recognized over the requisite service period using the straight-line method on a tranche by tranche basis and includes the impact of estimated forfeitures.
Employee Stock Purchase Plan	Employee Stock Purchase Plan
	Under the Company's Employee Stock Purchase Plan, or ESPP, eligible employees can participate and purchase common stock semi-annually through payroll deductions at a price equal to 85% of the fair market value of the common stock at the beginning of each one year offering period or the end of the applicable six month purchase period within that offering period, whichever is lower. The contribution amount may not exceed 10% of an employee's base compensation, including commissions but not including bonuses and overtime. The Company accounts for the ESPP as a compensatory plan and recorded compensation expense of $0.2 million and $0.1 million for the three months ended December 31, 2014 and 2013, and $0.7 million and $0.4 million for the nine months ended December 31, 2014 and 2013, respectively, in accordance with ASC 718.
	ASC 718 requires the benefits of tax deductions in excess of recognized compensation costs to be reported as a financing cash flow, rather than as an operating cash flow. The future realization of tax benefits related to stock-based compensation is dependent upon the timing of employee exercises and future taxable income, among other factors. The Company did not realize any tax benefit from the stock-based compensation charges incurred during the three and nine months ended December 31, 2014 and 2013, respectively.
Net Income Per Share	NET INCOME PER SHARE
	Basic net income per share is computed by dividing net income available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include shares issuable upon exercise of outstanding stock options and under the ESPP.
Segment Reporting	ASC 280 - Segment Reporting establishes annual and interim reporting standards for an enterprise's business segments and related disclosures about its products, services, geographic areas and major customers. Under ASC 280, the method for determining what information to report is based upon the way management organizes the operating segments within the Company for making operating decisions and assessing financial performance. The Company has determined that it has only one reportable segment. The Company's chief operating decision makers, the Chief Executive Officer, Chief Financial Officer and Chief Technology Officer, evaluate performance of the Company and make decisions regarding allocation of resources based on total Company results.
Indemnifications	Indemnifications
	In the normal course of business, the Company indemnifies other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters. Under these arrangements, the Company typically agrees to hold the other party harmless against losses arising from a breach of representations or covenants, intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors.
	It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit.
Product Warranties	Product Warranties
	The Company accrues for the estimated costs that may be incurred under its product warranties upon revenue recognition.
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the IASB has issued IFRS 15, Revenue from Contracts with Customers. The issuance of these documents completes the joint effort by the FASB and the IASB to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and IFRS. The new guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance.   For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  Early application is not permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
	In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation-Stock Compensation, as it relates to such awards. ASU 2014-12 is effective for us in our first quarter of fiscal 2017 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effect of applying ASU 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
	In November 2014, the FASB issued ASU 2014-17, Pushdown Accounting. This ASU provides companies with the option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity.  The election to apply pushdown accounting can be made either in the period in which the change of control occurred, or in a subsequent period.  If the election is made in a subsequent period, it would be considered a change in accounting principle and treated in accordance with Topic 250, Accounting Changes and Error Corrections.  This ASU is effective as of November 18, 2014.  The adoption will not have a material impact on the Company's results of operations, cash flows or financial position.

Cash_Cash_Equivalents_and_Inve

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Dec. 31, 2014
Cash Cash Equivalents And Investments Tables
Cash and Cash Equivalents (Tables)	Available-for-sale investments were (in thousands):
					Gross		Gross
			Amortized		Unrealized		Unrealized		Estimated
	As of December 31, 2014		Costs		Gain		Loss		Fair Value
	Money market funds	$	16,821	$	-	$	-	$	16,821
	Fixed income
	Mutual funds		2,000		-		-129		1,871
	Commercial paper		22,948		4		-		22,952
	Corporate debt		71,890		47		-22		71,915
	Municipal securities		5,435		3		-7		5,431
	Asset backed securities		23,598		2		-6		23,594
	Mortgage backed securities		6,583		-		-56		6,527
	International government securities		800		2		-		802
	Certificates of deposit		2,200		-		-1		2,199
	Total available-for-sale investments	$	152,275	$	58	$	-221	$	152,112
	Reported as (in thousands):
	Cash and cash equivalents							$	16,821
	Short-term investments								135,291
	Total							$	152,112
	Contractual maturities of mutual funds, commercial paper, corporate debt, municipal securities, asset backed securities, mortgage backed securities, international government securities, certificates of deposit and money market funds as of December 31, 2014 are set forth below (in thousands):
	Due within one year	$	120,291
	Due after one year		31,821
	Total	$	152,112
					Gross		Gross
			Amortized		Unrealized		Unrealized		Estimated
	As of March 31, 2014		Costs		Gain		Loss		Fair Value
	Money market funds	$	32,611	$	-	$	-	$	32,611
	Fixed income
	Mutual funds		1,964		-		-55		1,909
	Commercial paper		30,374		5		-		30,379
	Corporate debt		63,621		35		-39		63,617
	Municipal securities		5,435		5		-1		5,439
	Asset backed securities		17,049		6		-1		17,054
	International government securities		800		4		-		804
	Total available-for-sale investments	$	151,854	$	55	$	-96	$	151,813
	Reported as (in thousands):
	Cash and cash equivalents							$	32,611
	Short-term investments								47,181
	Long-term investments								72,021
	Total							$	151,813
	Contractual maturities of mutual funds, commercial paper, corporate debt, municipal securities, asset backed securities, international government securities and money market funds as of March 31, 2014 are set forth below (in thousands):
	Due within one year	$	79,792
	Due after one year		72,021
	Total	$	151,813

Intangible_Assets_Tables

Intangible Assets (Tables)	9 Months Ended
	Dec. 31, 2014
Intangible Assets Tables
Carrying values of intangible assets	The carrying values of intangible assets were as follows (in thousands):
			31-Dec-14							31-Mar-14
			Gross							Gross
			Carrying			Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
			Amount			Amortization		Amount		Amount		Amortization		Amount
	Technology	$	8,242		$	-2,699	$	5,543	$	8,242	$	-2,080	$	6,162
	Customer relationships		9,686			-3,154		6,532		9,686		-1,710		7,976
	Trade names/domains		957			-		957		957		-		957
	Total acquired identifiable
	intangible assets	$	18,885		$	-5,853	$	13,032	$	18,885	$	-3,790	$	15,095
Finite-lived intangible assets - future amortization expense	At December 31, 2014, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands):
				Amount
	Remaining 2015		$	550
	2016			2,198
	2017			2,191
	2018			1,943
	2019			1,697
	Thereafter			3,496
	Total		$	12,075

StockBased_Compensation_And_Em

Stock-Based Compensation And Employee Purchase Plans (Tables)	9 Months Ended
	Dec. 31, 2014
Employee Stock Purchase Plan
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The estimated fair value of ESPP options granted under the Employee Stock Purchase Plan was estimated at the date of grant using Black-Scholes pricing model with the following weighted average assumptions:
				Three Months Ended						Nine Months Ended
				December 31,						December 31,
				2014			2013			2014		2013
	Expected volatility			-			-			46%		38%
	Expected dividend yield			-			-			-		-
	Risk-free interest rate			-			-			0.90%		0.11%
	Weighted average expected ESPP option term			-			-			0.75 years		0.75 years
	Weighted average fair value of
	ESPP options granted		$	-		$	-		$	2.46	$	2.6
Stock Options
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award	Stock option activity and shares available for grant for all equity incentive plans for the nine months ended December 31, 2014 is summarized as follows:
						Shares			Weighted
			Shares			Subject to			Average
			Available			Options			Exercise Price
			for Grant			Outstanding			Per Share
	Balance at March 31, 2014		1,613,943			6,002,382		$	4.14
	Additional shares authorized for grant		8,000,000
	Granted - options (1)		-1,295,906			992,764			7.09
	Stock purchase rights/restricted stock unit (2)		-1,880,732			-			-
	Exercised		-			-1,041,982			1.60
	Canceled/forfeited - options		392,076			-392,076			5.74
	Canceled/forfeited - restricted stock unit		142,910			-
	Balance at December 31, 2014		6,972,291			5,561,088		$	5.03
	-1	As reflected in the preceding table, for each share awarded as a stock option under the 2012 Amended and Restated Equity Incentive Plan, an equivalent of 1.5 shares were deducted from the shares available for grant balance.
	-2	The reduction to shares available for grant includes awards granted of 1,880,732 shares.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following table summarizes the assumptions used to compute reported stock-based compensation to employees and directors for the three and nine months ended December 31, 2014 and 2013:
				Three Months Ended						Nine Months Ended
				December 31,						December 31,
				2014			2013			2014		2013
	Expected volatility			61%			63%			61%		64%
	Expected dividend yield			-			-			-		-
	Risk-free interest rate			1.71%			1.62%			1.71%		1.86%
	Weighted average expected option term			6.10 years			5.59 years			6.00 years		6.00 years
	Weighted average fair value of options granted		$	4.02		$	5.64		$	4.01	$	5.64
Stock Purchase Rights
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award	Stock purchase right activity for the nine months ended December 31, 2014 is summarized as follows:
						Weighted			Weighted
						Average			Average
						Grant-Date			Remaining
			Number of			Fair Market			Contractual
			Shares			Value			Term (in Years)
	Balance at March 31, 2014		489,627		$	4.83			1.93
	Granted		31,432			7.88
	Vested		-202,575			3.96
	Forfeited		-69,864			5.36
	Balance at December 31, 2014		248,620		$	5.77			1.68
Restricted Stock Units
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award	Restricted stock unit and performance stock unit activity for the nine months ended December 31, 2014 is summarized as follows:
									Weighted
						Weighted			Average
						Average			Remaining
			Number of			Purchase			Contractual
			Shares			Price			Term (in Years)
	Balance at March 31, 2014		1,134,856		$	-			2.00
	Granted		1,849,300
	Vested		-166,758
	Forfeited		-141,600
	Balance at December 31, 2014		2,675,798		$	-			2.06

Stock_Options_Outstanding_And_

Stock Options Outstanding And Exercisable (Tables)	9 Months Ended
	Dec. 31, 2014
Stock Options Outstanding And Exercisable Tables
Summary Of Outstanding And Exercisable Stock Options	The following table summarizes stock options outstanding and exercisable at December 31, 2014:
		Options Outstanding						Options Exercisable
				Weighted	Weighted					Weighted
				Average	Average					Average
				Exercise	Remaining		Aggregate			Exercise		Aggregate
	Range of			Price	Contractual		Intrinsic			Price		Intrinsic
	Exercise Price	Shares		Per Share	Life (Years)		Value	Shares		Per Share		Value
	$0.55 - $1.26	1,204,815	$	1.10	2.83	$	9,702,578	1,204,815	$	1.10	$	9,702,578
	$1.27 - $2.58	1,118,397	$	1.61	1.62		8,444,013	1,113,189	$	1.61		8,407,885
	$2.81 - $6.86	1,700,263	$	6.03	8.05		5,326,085	658,248	$	5.35		2,505,175
	$7.52 - $9.74	1,387,613	$	9.29	8.76		346,598	368,942	$	9.63		1,866
	$10.97 - $11.26	150,000	$	11.11	9.02		-	21,875	$	10.97		-
		5,561,088				$	23,819,274	3,367,069			$	20,617,504

Distribution_of_StockBased_Com

Distribution of Stock-Based Compensation Plan Expense (Tables)	9 Months Ended
	Dec. 31, 2014
Distribution Of Stock-based Compensation Plan Expense Tables
Schedule Of Stock-Based Compensation Expense By Statement Of Operations Line Item	The following table summarizes the classification of stock-based compensation expense related to employee stock awards and employee stock purchases under ASC 718 among the Company's operating functions for the three and nine months ended December 31, 2014 and 2013 which was recorded as follows (in thousands):
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
	Cost of service revenue	$	201	$	101	$	476	$	237
	Cost of product revenue		-		-		-		-
	Research and development		420		339		1,049		634
	Sales and marketing		966		660		2,620		1,400
	General and administrative		1,047		2,132		2,344		2,974
	Total stock-based compensation expense related to employee
	stock awards and employee stock purchases, pre-tax		2,634		3,232		6,489		5,245
	Tax benefit		-		-		-		-
	Stock-based compensation expense related to employee
	stock awards and employee stock purchases, net of tax	$	2,634	$	3,232	$	6,489	$	5,245

Fair_Value_Measurement_Tables

Fair Value Measurement (Tables)	9 Months Ended
	Dec. 31, 2014
Fair Value Measurement Tables
Fair Value Measurement (Tables)	The following tables present the Company's fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands):
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable		Balance at
			Identical Assets		Inputs		Inputs		December 31,
	31-Dec-14		(Level 1)		(Level 2)		(Level 3)		2014
	Cash equivalents:
	Money market funds	$	16,821		-	$	-	$	16,821
	Short-term investments:
	Money market funds		1,871		-		-		1,871
	Commercial paper		-		22,952		-		22,952
	Corporate debt		-		71,915		-		71,915
	Municipal securities		-		5,431		-		5,431
	Asset backed securities		-		23,594		-		23,594
	Mortgage backed securities		-		6,527		-		6,527
	International government securities		-		802		-		802
	Certificates of deposit		-		2,199		-		2,199
	Total	$	18,692	$	133,420	$	-	$	152,112
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable		Balance at
			Identical Assets		Inputs		Inputs		March 31,
	31-Mar-14		(Level 1)		(Level 2)		(Level 3)		2014
	Cash equivalents:
	Money market funds	$	32,611	$	-	$	-	$	32,611
	Short-term investments:
	Mutual funds		1,909		-		-		1,909
	Commercial paper		-		30,379		-		30,379
	Corporate debt		-		14,893		-		14,893
	Long-term investments:
	Corporate debt		-		48,724		-		48,724
	Municipal securities		-		5,439		-		5,439
	Asset backed securities		-		17,054		-		17,054
	International government securities		-		804		-		804
	Total	$	34,520	$	117,293	$	-	$	151,813

Inventory_Tables

Inventory (Tables)	9 Months Ended
	Dec. 31, 2014
Inventory Tables
Inventory (Tables)	Inventory was comprised of the following:
			December 31,		March 31,
			2014		2014
	Inventory (in thousands):
	Work-in-process	$	11	$	23
	Finished goods		521		788
		$	532	$	811

Net_Income_Per_Share_Tables

Net Income Per Share (Tables)	9 Months Ended
	Dec. 31, 2014
Net Income Per Share Tables
Net Income Per Share
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
			(in thousands, except per share amounts)
	Numerator:
	Income from continuing operations	$	444	$	89	$	1,743	$	3,569
	Income from discontinued operations, net of income tax provision		-		-		-		890
	Net income available to common stockholders		444		89		1,743		4,459
	Denominator:
	Common shares		89,594		79,742		89,107		75,071
	Denominator for basic calculation		89,594		79,742		89,107		75,071
	Employee stock options		1,963		2,982		2,210		2,938
	Stock awards		417		458		435		380
	Denominator for diluted calculation		91,974		83,182		91,752		78,389
	Income per share - continuing operations
	Basic	$	0.01	$	0.00	$	0.02	$	0.05
	Diluted	$	0.01	$	0.00	$	0.02	$	0.05
	Income per share - discontinued operations
	Basic	$	0.00	$	0.00	$	0.00	$	0.01
	Diluted	$	0.00	$	0.00	$	0.00	$	0.01
	Net income per share
	Basic	$	0.01	$	0.00	$	0.02	$	0.06
	Diluted	$	0.01	$	0.00	$	0.02	$	0.06
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following shares attributable to outstanding stock options and stock purchase rights were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands):
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
	Employee stock options		2,106		1,266		1,634		550
	Stock purchase rights		370		18		59		190
	Total anti-dilutive employee stock-based securities		2,476		1,284		1,693		740

Segment_Information_Tables

Segment Information (Tables)	9 Months Ended
	Dec. 31, 2014
Segment Information Tables
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	The Company's revenue distribution by geographic region (based upon the destination of shipments and the customer's service address) was as follows:
			Three Months Ended			Nine Months Ended
			December 31,			December 31,
			2014		2013	2014	2013
	Americas (principally US)		92%		96%	92%	98%
	Europe		7%		3%	7%	1%
	Asia Pacific		1%		1%	1%	1%
			100%		100%	100%	100%
	Geographic area data is based upon the location of the property and equipment and is as follows (in thousands):
			December 31,		March 31,
			2014		2014
	Americas	$	8,114	$	6,305
	Europe		1,518		1,087
	Asia Pacific		547		319
	Total	$	10,179	$	7,711

Recovered_Sheet1

Commitments And Contingencies (Tables)	9 Months Ended
	Dec. 31, 2014
Commitments And Contingencies Tables
Product warranties	Changes in the Company's product warranty liability, which is included in cost of product revenue in the condensed consolidated statements of income, were as follows (in thousands):
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
	Balance at beginning of period	$	538	$	552	$	660	$	452
	Accruals for warranties		54		274		123		744
	Settlements		-86		-192		-277		-562
	Changes in estimate		-83		-		-83		-
	Balance at end of period	$	423	$	634	$	423	$	634
Minimum third party network service provider commitments	At December 31, 2014, future minimum annual payments under these third party network service contracts were as follows (in thousands):
	Year ending March 31:
	Remaining 2015			$	747
	2016				3,014
	2017				2,452
	2018				891
	Total minimum payments			$	7,104

Discontinued_Operations_Tables

Discontinued Operations (Tables)	9 Months Ended
	Dec. 31, 2014
Discontinued Operations Tables
Schedule of Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures	The results of operations of these discontinued operations is as follows (in thousands):
			Three Months Ended				Nine Months Ended
			December 31,				December 31,
			2014		2013		2014		2013
	Revenue	$	-	$	-	$	-	$	1,430
	Operating expense		-		-		-		922
	Income before income taxes		-		-		-		508
	Provision for income taxes		-		-		-		207
	Income from discontinued operations		-		-		-		301
	Gain on disposal of discontinued operations,
	net of income tax provision of $463		-		-		-		589

Treasury_Stock_Tables

Treasury Stock (Tables)	9 Months Ended
	Dec. 31, 2014
Treasury Stock Tables
Class of Treasury Stock [Table Text Block]	The activity under the Repurchase Plan for the three months ended December 31, 2014 is summarized as follows:
				Weighted
		Shares		Average Price		Amount
		Repurchased		Per Share		Repurchased
	Repurchase of common stock	216,965	$	7.48	$	1,627,210
	Balance at December 31, 2014	216,965	$	7.48	$	1,627,210

Description_of_the_Business_Na

Description of the Business (Narrative) (Details)	9 Months Ended
	Dec. 31, 2014
Description Of Business Narrative Details
Approximate number of business customers	41,100
Year Founded	1987
Entity Incorporation, Date of Incorporation	31-Dec-96
Entity Incorporation, State Country Name	Delaware
Fiscal Year End Date	-28

Basis_of_Presentation_Cash_Cas

Basis of Presentation (Cash Cash Equivalents and Short-term Investments) (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Mar. 31, 2014
Amortized Cost Basis	$152,275	$151,854
Available-for-sale Securities, Gross Unrealized Gain	58	55
Gross Unrealized Losses	-221	-96
Total available-for-sale investments, estimated fair value	152,112	151,813
Reported as:
Cash equivalents	16,821	32,611
Short-term investments	135,291	47,181
Long-term investments	0	72,021
Contractual maturities of investments:
Investments due within one year	120,291	79,792
Investments due after one year	31,821	72,021
Money Market Funds
Amortized Cost Basis	16,821	32,611
Available-for-sale Securities, Gross Unrealized Gain	0	0
Gross Unrealized Losses	0	0
Total available-for-sale investments, estimated fair value	16,821	32,611
Mutual Funds
Amortized Cost Basis	2,000	1,964
Available-for-sale Securities, Gross Unrealized Gain	0	0
Gross Unrealized Losses	-129	-55
Total available-for-sale investments, estimated fair value	1,871	1,909
Commercial Paper
Amortized Cost Basis	22,948	30,374
Available-for-sale Securities, Gross Unrealized Gain	4	5
Gross Unrealized Losses	0	0
Total available-for-sale investments, estimated fair value	22,952	30,379
Corporate Debt
Amortized Cost Basis	71,890	63,621
Available-for-sale Securities, Gross Unrealized Gain	47	35
Gross Unrealized Losses	-22	-39
Total available-for-sale investments, estimated fair value	71,915	63,617
Municipal Securities
Amortized Cost Basis	5,435	5,435
Available-for-sale Securities, Gross Unrealized Gain	3	5
Gross Unrealized Losses	-7	-1
Total available-for-sale investments, estimated fair value	5,431	5,439
Asset Backed Securities
Amortized Cost Basis	23,598	17,049
Available-for-sale Securities, Gross Unrealized Gain	2	6
Gross Unrealized Losses	-6	-1
Total available-for-sale investments, estimated fair value	23,594	17,054
Mortgage Backed Securities
Amortized Cost Basis	6,583
Available-for-sale Securities, Gross Unrealized Gain	0
Gross Unrealized Losses	-56
Total available-for-sale investments, estimated fair value	6,527
Internatinal Government Securities
Amortized Cost Basis	800	800
Available-for-sale Securities, Gross Unrealized Gain	2	4
Gross Unrealized Losses	0	0
Total available-for-sale investments, estimated fair value	802	804
Certificates of Deposit
Amortized Cost Basis	2,200
Available-for-sale Securities, Gross Unrealized Gain	0
Gross Unrealized Losses	-1
Total available-for-sale investments, estimated fair value	$2,199

Basis_of_Presentation_Service_

Basis of Presentation (Service and Product Revenue) (Narrative) (Details)	Dec. 31, 2014
Basis Of Presentation Service And Product Revenue Narrative Details
Trial period offered with all new services, days	30

Basis_of_Presentation_Goodwill

Basis of Presentation (Goodwill And Other Intangibles Schedule Of Intangibles) (Details) (USD $)	Dec. 31, 2014	Mar. 31, 2014
In Thousands, unless otherwise specified
Gross Carrying Amount	$18,885	$18,885
Accumulated Amortization	-5,853	-3,790
Net Carrying Amount	13,032	15,095
Technology
Gross Carrying Amount	8,242	8,242
Accumulated Amortization	-2,699	-2,080
Net Carrying Amount	5,543	6,162
Customer relationships
Gross Carrying Amount	9,686	9,686
Accumulated Amortization	-3,154	-1,710
Net Carrying Amount	6,532	7,976
Trade names domains
Gross Carrying Amount	957	957
Accumulated Amortization	0	0
Net Carrying Amount	$957	$957

Basis_of_Presentation_Goodwill1

Basis of Presentation (Goodwill And Other Intangibles Schedule Of Future Amortization Of Intangibles) (Details) (USD $)	Dec. 31, 2014
In Thousands, unless otherwise specified
Basis Of Presentation Goodwill And Other Intangibles Schedule Of Future Amortization Of Intangibles Details
Remaining 2015	$550
2016	2,198
2017	2,191
2018	1,943
2019	1,697
Thereafter	3,496
Total	$12,075

Basis_of_Presentation_Software

Basis of Presentation (Software Development Costs) (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2014	Mar. 31, 2014
Software Development Costs
Software costs capitalized during the period	$0.60
Total capitalized software costs	1.5	1
Accumulated software costs amortization	0.4	0.1
Software Development
Software costs capitalized during the period	1.1
Property and equipment	0.6
Long-term assets charged to other assets	$0.50

Basis_of_Presentation_Schedule

Basis of Presentation (Schedule Of Stock Purchase Right Activity) (Details) (USD $)	9 Months Ended
	Dec. 31, 2014
Basis Of Presentation Schedule Of Stock Purchase Right Activity Details
Balance at March 31, 2014	489,627
Granted	31,432
Vested	-202,575
Forfeited	-69,864
Balance at December 31, 2014	248,620
Weighted-average grant date fair market value, March 31, 2014	$4.83
Weighted-average grant date fair market value of restricted stock rights granted	$7.88
Weighted-average grant date fair market value, vested during period	$3.96
Weighted-average grant date fair market value, forfeited during period	$5.36
Weighted-average grant date fair market value, December 31, 2014	$5.77
Weighted-average remaining contractual term, in years, March 31, 2014	1 year 339 days
Weighted-average remaining contractual term, in years, December 31, 2014	1 year 248 days

Basis_of_Presentation_Schedule1

Basis of Presentation (Schedule Of Restricted Stock Unit and Performance Stock Unit Activity) (Details)	9 Months Ended
	Dec. 31, 2014	Mar. 31, 2014
Basis Of Presentation Schedule Of Restricted Stock Unit And Performance Stock Unit Activity Details
Balance at March 31, 2014	1,134,856
Granted	1,849,300
Vested	-166,758
Forfeited	-141,600
Balance at December 31, 2014	2,675,798
RSU Weighted-average remaining contractual term, in years		2
RSU Weighted-average remaining contractual term, in years, end of period	2.06

Basis_of_Presentation_Schedule2

Basis of Presentation (Schedule Of Option Activity) (Details) (USD $)	9 Months Ended
	Dec. 31, 2014
Basis Of Presentation Schedule Of Option Activity Details
Balance at March 31, 2014	6,002,382
Granted - options	992,764
Exercised	-1,041,982
Cancelled/forfeited	-392,076
Balance at December 31, 2014	5,561,088
Shares available for grant at March 31, 2014	1,613,943
Additional shares authorized for grant	8,000,000
Granted options, shares available for grant (1)	-1,295,906	[1]
Stock purchase rights/restricted stock unit (2)	-1,880,732	[2]
Exercised	0
Cancelled/forfeited shares available for grant	392,076
Cancelled/forfeited - restricted stock units	142,910
Shares available for grant, at December 31, 2014	6,972,291
Weighted-average exercise price of options outstanding, at March 31, 2014	$4.14
Weighted-average exercise price of options granted during period	$7.09
Weighted-average exercise price of stock purchases rights during period	$0
Weighted-average exercise price of options exercised during the period	$1.60
Weighted-average exercise price of options forfeited, cancelled or expired during the period	$5.74
Weighted-average exercise price of canceled / forfeited - restricted stock unit during period	$0
Weighted-average exercise price of options outstanding at December 31, 2014	$5.03
[1]	(1) As reflected in the preceding table, for each share awarded as a stock option under the 2012 Amended and Restated Equity Incentive Plan, an equivalent of 1.5 shares were deducted from the shares available for grant balance.
[2]	(2) The reduction to shares available for grant includes awards granted of 1,880,732 shares

Basis_of_Presentation_Summary_

Basis of Presentation (Summary Of Stock Options Outstanding And Exercisable) (Details) (USD $)	9 Months Ended
	Dec. 31, 2014	Mar. 31, 2014
Options Outstanding, Number of Shares	5,561,088	6,002,382
Options Outstanding, Weighted-Average Exercise Price Per Share	$5.03	$4.14
$0.55 - $1.26
Range of Exercise Prices, Minimum	$0.55
Range of Exercise Prices, Maximum	$1.26
Options Outstanding, Number of Shares	1,204,815
Options Outstanding, Weighted-Average Exercise Price Per Share	$1.10
Options Outstanding, Weighted-Average Remaining Contractual Term (in years)	2 years 303 days
Options Outstanding, Aggregate Intrinsic Value	$9,702,578
Options Exercisable, Number of Shares	1,204,815
Options Exercisable, Weighted-Average Exercise Price Per Share	$1.10
Options Exercisable, Aggregate Intrinsic Value	9,702,578
$1.27 - $2.58
Range of Exercise Prices, Minimum	$1.27
Range of Exercise Prices, Maximum	$2.58
Options Outstanding, Number of Shares	1,118,397
Options Outstanding, Weighted-Average Exercise Price Per Share	$1.61
Options Outstanding, Weighted-Average Remaining Contractual Term (in years)	1 year 226 days
Options Outstanding, Aggregate Intrinsic Value	8,444,013
Options Exercisable, Number of Shares	1,113,189
Options Exercisable, Weighted-Average Exercise Price Per Share	$1.61
Options Exercisable, Aggregate Intrinsic Value	8,407,885
$2.81 - $6.86
Range of Exercise Prices, Minimum	$2.81
Range of Exercise Prices, Maximum	$6.86
Options Outstanding, Number of Shares	1,700,263
Options Outstanding, Weighted-Average Exercise Price Per Share	$6.03
Options Outstanding, Weighted-Average Remaining Contractual Term (in years)	8 years 18 days
Options Outstanding, Aggregate Intrinsic Value	5,326,085
Options Exercisable, Number of Shares	658,248
Options Exercisable, Weighted-Average Exercise Price Per Share	$5.35
Options Exercisable, Aggregate Intrinsic Value	2,505,175
$7.52 - $9.74
Range of Exercise Prices, Minimum	$7.52
Range of Exercise Prices, Maximum	$9.74
Options Outstanding, Number of Shares	1,387,613
Options Outstanding, Weighted-Average Exercise Price Per Share	$9.29
Options Outstanding, Weighted-Average Remaining Contractual Term (in years)	8 years 277 days
Options Outstanding, Aggregate Intrinsic Value	346,598
Options Exercisable, Number of Shares	368,942
Options Exercisable, Weighted-Average Exercise Price Per Share	$9.63
Options Exercisable, Aggregate Intrinsic Value	1,866
$10.97 - $11.26
Range of Exercise Prices, Minimum	$10.97
Range of Exercise Prices, Maximum	$11.26
Options Outstanding, Number of Shares	150,000
Options Outstanding, Weighted-Average Exercise Price Per Share	$11.11
Options Outstanding, Weighted-Average Remaining Contractual Term (in years)	9 years 7 days
Options Outstanding, Aggregate Intrinsic Value	0
Options Exercisable, Number of Shares	21,875
Options Exercisable, Weighted-Average Exercise Price Per Share	$10.97
Options Exercisable, Aggregate Intrinsic Value	0
$0.55 - $11.26
Range of Exercise Prices, Minimum	$0.55
Range of Exercise Prices, Maximum	$11.26
Options Outstanding, Number of Shares	5,561,088
Options Outstanding, Aggregate Intrinsic Value	23,819,274
Options Exercisable, Number of Shares	3,367,069
Options Exercisable, Aggregate Intrinsic Value	$20,617,504

Stock_Plans_Assumptions_Used_I

Stock Plans (Assumptions Used In Black-Scholes Model) (Details) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Option Grants and Stock Purchase Rights
Expected volatility	61.00%	63.00%	61.00%	64.00%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	1.71%	1.62%	1.71%	1.86%
Weighted average expected ESPP option term, in years	6 years 37 days	5 years 212 days	6 years	6 years
Weighted average fair value of ESPP options granted, per share	$4.02	$5.64	$4.01	$5.64
Employee Stock Purchase Plan Rights
Expected volatility	0.00%	0.00%	46.00%	38.00%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	0.00%	0.00%	0.90%	0.11%
Weighted average expected ESPP option term, in years			0 years 9 months 0 days	0 years 9 months 0 days
Weighted average fair value of ESPP options granted, per share	$0	$0	$2.46	$2.60

Basis_of_Presentation_Schedule3

Basis of Presentation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	$2,634	$3,232	$6,489	$5,245
Tax benefit	0	0	0	0
Stock-based employee compensation expense related to employee stock options and employee stock purchases, net of tax	2,634	3,232	6,489	5,245
Cost of service revenue
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	201	101	476	237
Cost of product revenue
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	0	0	0	0
Research and development
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	420	339	1,049	634
Sales and marketing
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	966	660	2,620	1,400
General and administrative
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax	$1,047	$2,132	$2,344	$2,974

Basis_of_Presentation_Stock_Op

Basis of Presentation (Stock Option Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Stock-based compensation expense			$6,489,000	$5,245,000
Stock-Based Awards
Unamortized stock-based compensation expense related to unvested stock awards	24,700,000		24,700,000
Weighted average period of recognition for unrecognized compensation costs (in years)			2 years 339 days
Tax benefit attributable to stock options exercised			0	0
Stock-based compensation expense	2,400,000	2,100,000	5,800,000	4,800,000
Employee Stock Purchase Plan
Unamortized stock-based compensation expense related to unvested stock awards	200,000		200,000
Weighted average period of recognition for unrecognized compensation costs (in years)			0 years 6 months
Tax benefit attributable to stock options exercised			0	0
Percentage of market value price of common stock under Employee Stock Purchase Plan	85.00%		85.00%
Maximum contribution percentage amount of employee's base compensation	10.00%		10.00%
Stock-based compensation expense	$200,000	$100,000	$700,000	$400,000

Fair_Value_Measurement_Details

Fair Value Measurement (Details) (USD $)	Dec. 31, 2014	Mar. 31, 2014
In Thousands, unless otherwise specified
Cash equivalents:
Money market funds	$16,821	$32,611
Short-term investments:
Mutual funds	1,871	1,909
Commercial paper	22,952	30,379
Corporate debt	71,915	14,893
Certificates of deposit	2,199	0
Long-term investments:
Corporate debt	0	48,724
Municipal securities	5,431	5,439
Asset backed securities	23,594	17,054
Mortgage backed securities	6,527	0
International government securities	802	804
Total	152,112	151,813
Quoted Prices in Active Markets for Identical Assets (Level 1)
Cash equivalents:
Money market funds	16,821	32,611
Short-term investments:
Mutual funds	1,871	1,909
Commercial paper	0	0
Corporate debt	0	0
Certificates of deposit	0	0
Long-term investments:
Corporate debt	0	0
Municipal securities	0	0
Asset backed securities	0	0
Mortgage backed securities	0	0
International government securities	0	0
Total	18,692	34,520
Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	0	0
Short-term investments:
Mutual funds	0	0
Commercial paper	22,952	30,379
Corporate debt	71,915	14,893
Certificates of deposit	2,199	0
Long-term investments:
Corporate debt	0	48,724
Municipal securities	5,431	5,439
Asset backed securities	23,594	17,054
Mortgage backed securities	6,527	0
International government securities	802	804
Total	133,420	117,293
Significant Unobservable Inputs (Level 3)
Cash equivalents:
Money market funds	0	0
Short-term investments:
Mutual funds	0	0
Commercial paper	0	0
Corporate debt	0	0
Certificates of deposit	0	0
Long-term investments:
Corporate debt	0	0
Municipal securities	0	0
Asset backed securities	0	0
Mortgage backed securities	0	0
International government securities	0	0
Total	$0	$0

Balance_Sheet_Detail_Inventory

Balance Sheet Detail (Inventory Components) (Details) (USD $)	Dec. 31, 2014	Mar. 31, 2014
In Thousands, unless otherwise specified
Balance Sheet Detail Inventory Components Details
Work-in-process	$11	$23
Finished goods	521	788
Inventory, net	$532	$811

Net_Income_Per_Share_Details

Net Income Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Net Income Per Share Details
Income from continuing operations	$444	$89	$1,743	$3,569
Income from discontinued operations, net of income tax provision	0	0	0	890
Net income available to common stockholders	$444	$89	$1,743	$4,459
Common shares	89,594	79,742	89,107	75,071
Denominator for basic calculation	89,594	79,742	89,107	75,071
Employee stock options	1,963	2,982	2,210	2,938
Stock awards	417	458	435	380
Denominator for diluted calculation	91,974	83,182	91,752	78,389
Income per share - continuing operations:
Basic	$0.01	$0	$0.02	$0.05
Diluted	$0.01	$0	$0.02	$0.05
Income per share - discontinued operations:
Basic	$0	$0	$0	$0.01
Diluted	$0	$0	$0	$0.01
Net income per share:
Basic	$0.01	$0	$0.02	$0.06
Diluted	$0.01	$0	$0.02	$0.06

Net_Income_Per_Share_Options_a

Net Income Per Share (Options and Rights Excluded) (Details)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Anti-dilutive shares	2,476	1,284	1,693	740
Employee stock options
Anti-dilutive shares	2,106	1,266	1,634	550
Stock purchase rights
Anti-dilutive shares	370	18	59	190

Income_Taxes_Narrative_Details

Income Taxes (Narrative) (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2014	Mar. 31, 2014
Income Taxes Narrative Details
Unrecognized tax benefits	$2.20	$2.20
Open Tax Year	1995

Segment_Reporting_Revenue_and_

Segment Reporting Revenue and Property and Equipment by Geographic Area (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2014
Geographic Areas, Revenue from External Customers	100%	100%	100%	100%
Number of customers at more than 10% of revenue	0	0	0	0
Geographic Areas, Long-Lived Assets	$10,179		$10,179		$7,711
Americas
Geographic Areas, Revenue from External Customers	92%	96%	92%	98%
Geographic Areas, Long-Lived Assets	8,114		8,114		6,305
Europe
Geographic Areas, Revenue from External Customers	7%	3%	7%	1%
Geographic Areas, Long-Lived Assets	1,518		1,518		1,087
Asia Pacific
Geographic Areas, Revenue from External Customers	1%	1%	1%	1%
Geographic Areas, Long-Lived Assets	$547		$547		$319

Recovered_Sheet2

Commitments and Contingencies (Product Warranties) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Commitments And Contingencies Product Warranties Details
Balance at beginning of period	$538	$552	$660	$452
Accruals for warranties	54	274	123	744
Settlements	-86	-192	-277	-562
Changes in estimate	-83	0	-83	0
Balance at end of period	$423	$634	$423	$634

Commitments_and_Contingencies_1

Commitments and Contingencies (Service Provider Contracts) (Details) (USD $)	Dec. 31, 2014
In Thousands, unless otherwise specified
Commitments And Contingencies Service Provider Contracts Details
Remaining 2015	$747
2016	3,014
2017	2,452
2018	891
Total minimum payments	$7,104

Commitments_and_Contingencies_2

Commitments and Contingencies (CustomerSupport Commitments) (Narrative) (Details) (USD $)	Dec. 31, 2014
Commitments And Contingencies Customersupport Commitments Narrative Details
Third party customer support vendor minimum monthly commitment	$400,000
Third party customer support vendor maximum obligation	$2,200,000
Advance termination notice required, days	150

Patent_Sale_Narrative_Details

Patent Sale (Narrative) (Details) (USD $)	1 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2014
Patent Sale Narrative Details
Sale of patents	$12
Future maximum patent license collection	$3	$1

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Results of Operations
Revenue	$0	$0	$0	$1,430
Operating expense	0	0	0	922
Income before income taxes	0	0	0	508
Provision for income taxes	0	0	0	207
Income from discontinued operations	0	0	0	301
Gain on disposal of discontinued operations. net of income tax provision of $463k	0	0	0	589
Income tax provision on gain on disposal	$0	$0	$0	$463

Repurchases_of_Common_Shares_i

Repurchases of Common Shares in Open Market (Detail) (USD $)	3 Months Ended	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2014
Repurchases Of Common Shares In Open Market Detail
Number of Shares	216,965	216,965
Stock Repurchased And Retired During Period Weighted Average Price	$7.48	$7.48
Amount	$1,627,210	$1,627,210