Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 31, 2017 | Aug. 31, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | QAD INC | |
Entity Central Index Key | 1,036,188 | |
Trading Symbol | qada | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 16,003,497 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 3,213,126 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Assets | ||
Cash and equivalents | $ 149,202 | $ 145,082 |
Accounts receivable, net of allowances of $2,207 and $2,205 at July 31, 2017 and January 31, 2017, respectively | 42,397 | 69,441 |
Other current assets | 14,500 | 15,351 |
Total current assets | 206,099 | 229,874 |
Property and equipment, net | 30,520 | 30,872 |
Capitalized software costs, net | 800 | 732 |
Goodwill | 10,872 | 10,558 |
Deferred tax assets, net | 7,286 | 6,166 |
Other assets, net | 1,961 | 2,688 |
Total assets | 257,538 | 280,890 |
Liabilities and Stockholders’ Equity | ||
Current portion of long-term debt | 456 | 446 |
Accounts payable | 9,128 | 11,316 |
Deferred revenue | 89,661 | 104,125 |
Other current liabilities | 30,451 | 33,636 |
Total current liabilities | 129,696 | 149,523 |
Long-term debt | 13,540 | 13,767 |
Other liabilities | 4,672 | 4,914 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; none issued or outstanding | ||
Additional paid-in capital | 196,950 | 197,594 |
Treasury stock, at cost (932,024 shares and 1,125,552 shares at July 31, 2017 and January 31, 2017, respectively) | (12,947) | (15,170) |
Accumulated deficit | (67,534) | (61,127) |
Accumulated other comprehensive loss | (6,859) | (8,631) |
Total stockholders’ equity | 109,630 | 112,686 |
Total liabilities and stockholders’ equity | 257,538 | 280,890 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock value | 16 | 16 |
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock value | $ 4 | $ 4 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Accounts receivable, net of allowance | $ 2,207 | $ 2,205 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 932,024 | 1,125,552 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 71,000,000 | 71,000,000 |
Common stock, shares issued (in shares) | 16,605,215 | 16,605,215 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Common stock, shares issued (in shares) | 3,537,380 | 3,537,380 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenue: | ||||
Subscription | $ 17,420 | $ 12,317 | $ 32,763 | $ 23,809 |
License | 6,743 | 6,416 | 12,008 | 10,363 |
Maintenance and other | 31,971 | 33,266 | 63,877 | 66,102 |
Professional services | 19,824 | 17,779 | 38,692 | 34,901 |
Total revenue | 75,958 | 69,778 | 147,340 | 135,175 |
Costs of revenue: | ||||
Subscription | 7,428 | 6,740 | 15,148 | 12,940 |
License | 828 | 765 | 1,513 | 1,490 |
Maintenance and other | 7,840 | 7,742 | 15,534 | 15,511 |
Professional services | 20,598 | 17,557 | 39,365 | 35,001 |
Total cost of revenue | 36,694 | 32,804 | 71,560 | 64,942 |
Gross profit | 39,264 | 36,974 | 75,780 | 70,233 |
Operating expenses: | ||||
Sales and marketing | 17,697 | 17,294 | 35,284 | 34,232 |
Research and development | 11,689 | 11,069 | 23,221 | 22,212 |
General and administrative | 9,224 | 8,483 | 17,817 | 16,489 |
Amortization of intangibles from acquisitions | 111 | 166 | 274 | 331 |
Total operating expenses | 38,721 | 37,012 | 76,596 | 73,264 |
Operating income (loss) | 543 | (38) | (816) | (3,031) |
Other (income) expense: | ||||
Interest income | (493) | (159) | (661) | (331) |
Interest expense | 157 | 161 | 313 | 335 |
Other (income) expense, net | 1,208 | (433) | 1,812 | 437 |
Total other (income) expense | 872 | (431) | 1,464 | 441 |
(Loss) income before income taxes | (329) | 393 | (2,280) | (3,472) |
Income tax expense (benefit) | 832 | (575) | 1,452 | (1,648) |
Net (loss) income | (1,161) | 968 | (3,732) | (1,824) |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment | 1,132 | (246) | 1,772 | 360 |
Total comprehensive (loss) income | $ (29) | $ 722 | $ (1,960) | $ (1,464) |
Common Class A [Member] | ||||
Basic net (loss) income per share | ||||
Basic net (loss) income per share (in dollars per share) | $ (0.06) | $ 0.05 | $ (0.20) | $ (0.10) |
Diluted net (loss) income per share | ||||
Diluted net (loss) income per share (in dollars per share) | $ (0.06) | $ 0.05 | $ (0.20) | $ (0.10) |
Other (income) expense: | ||||
Net (loss) income | $ (994) | $ 828 | $ (3,193) | $ (1,556) |
Common Class B [Member] | ||||
Basic net (loss) income per share | ||||
Basic net (loss) income per share (in dollars per share) | $ (0.05) | $ 0.04 | $ (0.17) | $ (0.08) |
Diluted net (loss) income per share | ||||
Diluted net (loss) income per share (in dollars per share) | $ (0.05) | $ 0.04 | $ (0.17) | $ (0.08) |
Other (income) expense: | ||||
Net (loss) income | $ (167) | $ 140 | $ (539) | $ (268) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (3,732) | $ (1,824) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 2,971 | 3,003 |
Loss on disposal of equipment | 12 | 4 |
Provision for doubtful accounts and sales adjustments | 187 | |
Stock compensation expense | 4,360 | 3,701 |
Change in fair value of derivative instrument | 3 | 212 |
Changes in assets and liabilities: | ||
Accounts receivable | 28,110 | 20,412 |
Other assets | 895 | (2,910) |
Accounts payable | (2,580) | (3,518) |
Deferred revenue | (17,987) | (13,015) |
Other liabilities | (4,601) | (4,045) |
Net cash provided by operating activities | 7,638 | 2,020 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (1,571) | (1,682) |
Capitalized software costs | (480) | (62) |
Net cash used in investing activities | (2,051) | (1,744) |
Cash flows from financing activities: | ||
Repayments of debt | (222) | (233) |
Tax payments related to stock awards | (2,781) | (1,584) |
Cash dividends paid | (2,675) | (2,642) |
Net cash used in financing activities | (5,678) | (4,459) |
Effect of exchange rates on cash and equivalents | 4,211 | 1,160 |
Net increase (decrease) in cash and equivalents | 4,120 | (3,023) |
Cash and equivalents at beginning of period | 145,082 | 137,731 |
Cash and equivalents at end of period | $ 149,202 | $ 134,708 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Recent Accounting Pronouncements | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Basis of Presentation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements fairly present the financial information contained therein. These statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10 10 X. not 10 January 31, 2017. three six July 31, 2017 not January 31, 2018. Recent Accounting Pronouncements With the exception of those discussed below, there have been no six July 31, 2017, Accounting Standards Adopted The Company adopted ASU 2016 09 718, Improvements to Employee Share-Based Payment Accounting third 2017. February 1, 2016, six July 31, 2016, six July 31, 2016. Accounting Standards Not In May 2014, 2014 09, Revenue from Contracts with Customers five August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 2014 09 one 2014 09 2019 not first 2019, The Company anticipates this standard might have a material impact on its consolidated financial statements. The Company has assigned internal resources and has hired third may Due to the complexity of some contracts, the actual revenue recognition treatment required under the new standard for these arrangements may five seven While the Company continues to assess the potential impacts and disclosure requirements of the new standard, the Company cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements. In February 2016, 2016 02, Leases (Topic 842 2016 02 2016 02 first 2020 2016 02 2016 02. In October 2016, 2016 16, Income Taxes: Intra-Entity Transfers of Assets Other than Inventory 2016 16 February 1, 2018. In January 2017, 2017 04, Intangibles—Goodwill and Other (Topic 350 2 zero 2 February 1, 2020. not 2017 04 In January 2017, 2017 01, Business Combinations: Clarifying the Definition of a Business, February 1, 2018. 2017 01 |
Note 2 - Computation of Net (Lo
Note 2 - Computation of Net (Loss) Per Share | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 2. The following table sets forth the computation of basic and diluted net (loss) income per share: Three Months Ended Six Months Ended July 31, July 31, 201 7 201 6 201 7 201 6 (in thousands, except per share data) (in thousands, except per share data) Net (loss) income $ (1,161 ) $ 968 $ (3,732 ) $ (1,824 ) Less: Dividends declared (1,344 ) (1,326 ) (2,675 ) (2,642 ) Undistributed net loss $ (2,505 ) $ (358 ) $ (6,407 ) $ (4,466 ) Net ( loss ) income per share – Class A Common Stock Dividends declared $ 1,151 $ 1,134 $ 2,290 $ 2,257 Allocation of undistributed net loss (2,145 ) (306 ) (5,483 ) (3,813 ) Net (loss) income attributable to Class A common stock $ (994 ) $ 828 $ (3,193 ) $ (1,556 ) Weighted average shares of Class A common stock outstanding— basic 15,914 15,694 15,863 15,644 Weighted average potential shares of Class A common stock — 586 — — Weighted average shares of Class A common stock and potential common shares outstanding— diluted 15,914 16,280 15,863 15,644 Basic net (loss) income per Class A common share $ (0.06 ) $ 0.05 $ (0.20 ) $ (0.10 ) Diluted net (loss) income per Class A common share $ (0.06 ) $ 0.05 $ (0.20 ) $ (0.10 ) Net (loss) income per share – Class B Common Stock Dividends declared $ 193 $ 192 $ 385 $ 385 Allocation of undistributed net loss (360 ) (52 ) (924 ) (653 ) Net (loss) income attributable to Class B common stock $ (167 ) $ 140 $ (539 ) $ (268 ) Weighted average shares of Class B common stock outstanding— basic 3,212 3,205 3,211 3,204 Weighted average potential shares of Class B common stock — 70 — — Weighted average shares of Class B common stock and potential common shares outstanding— diluted 3,212 3,275 3,211 3,204 Basic net (loss) income per Class B common share $ (0.05 ) $ 0.04 $ (0.17 ) $ (0.08 ) Diluted net (loss) income per Class B common share $ (0.05 ) $ 0.04 $ (0.17 ) $ (0.08 ) Potential common shares consist of the shares issuable upon the release of restricted stock units (“RSUs”) and the exercise of stock options and stock appreciation rights (“SARs”). The Company’s unvested RSUs and unexercised SARs are not not The following table sets forth the number of potential common shares not Three Months Ended Six Months Ended July 31, July 31, 201 7 201 6 201 7 201 6 (in thousands) (in thousands) Class A 3,219 1,027 3,129 2,883 Class B 384 151 387 361 |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 3. When determining fair value, the Company uses a three not The following table sets forth the financial assets and liabilities, measured at fair value, as of July 31, 2017 January 31, 2017: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Money market mutual funds as of July 31, 2017 (a) $ 121,084 Money market mutual funds as of January 31, 2017 (a) $ 116,043 Liability related to the interest rate swap as of July 31, 2017 (b) $ (193 ) Liability related to the interest rate swap as of January 31, 2017 (b) $ (190 ) ___________________________ (a) Money market mutual funds are recorded at fair value based upon quoted market prices. (b) The liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves. Money market mutual funds are classified as part of “Cash and equivalents” in the accompanying Condensed Consolidated Balance Sheets. The amount of cash and equivalents deposited with commercial banks was $28 $29 July 31, 2017 January 31, 2017, The Company’s note payable bears a variable market interest rate commensurate with the Company’s credit standing. Therefore, the carrying amount outstanding under the note payable reasonably approximates fair value based on Level 2 There have been no six July 31, 2017. Derivative Instruments The Company entered into an interest rate swap in May 2012 one 6 The fair values of the derivative instrument at July 31, 2017 January 31, 2017 (Liability) Derivative Fair Value Balance Sheet Location July 31, 201 7 January 31, 201 7 Derivative instrument: Interest rate swap Other liabilities $ (193 ) $ (190 ) Total $ (193 ) $ (190 ) The change in fair value of the interest rate swap recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss for the six July 31, 2017 2016 3,000 212,000 |
Note 4 - Capitalized Software C
Note 4 - Capitalized Software Costs | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Capitalized Software Costs [Text Block] | 4. Capitalized software costs and accumulated amortization at July 31, 2017 January 31, 2017 July 31, 2017 January 31, 2017 (in thousands) Capitalized software costs: Acquired software technology $ 3,458 $ 3,458 Capitalized software development costs 1,069 748 4,527 4,206 Less accumulated amortization (3,727 ) (3,474 ) Capitalized software costs, net $ 800 $ 732 Acquired software technology costs relate to technology purchased as a result of the Company’s fiscal 2013 It is the Company’s policy to write off capitalized software development costs once fully amortized. Accordingly, during the first six 2018, $0.2 Amortization of capitalized software costs was $0.4 $0.5 six July 31, 2017 2016 The following table summarizes the estimated amortization expense relating to the Company’s capitalized software costs as of July 31, 2017: Fiscal Years (in thousands) 2018 remaining $ 424 2019 197 2020 144 2021 35 $ 800 |
Note 5 - Goodwill and Intangibl
Note 5 - Goodwill and Intangible Assets | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Goodwill The changes in the carrying amount of goodwill for the six July 31, 2017 Gross Carrying Amount Accumulated Impairment Goodwill, Net (in thousands) Balance at January 31, 2017 $ 26,166 $ (15,608 ) $ 10,558 Impact of foreign currency translation 314 - 314 Balance at July 31, 2017 $ 26,480 $ (15,608 ) $ 10,872 The Company performed its annual goodwill impairment review during the fourth 2017. November 30, 2016. no 2017. No six July 31, 2017 Intangible Assets July 31, 2017 January 31, 2017 (in thousands) Amortizable intangible assets Customer relationships (1) $ 1,500 $ 2,721 Trade name 349 515 1,849 3,236 Less: accumulated amortization (1,707 ) (2,821 ) Net amortizable intangible assets $ 142 $ 415 ______________________ ( 1 Customer relationships include the impact of foreign currency translation. The Company’s intangible assets are related to the DynaSys and CEBOS acquisitions completed in fiscal 2013. July 31, 2017, second 2018, $1.5 Amortization of intangible assets was $0.3 six July 31 2017 2016. July 31, 2017 $142,000 2018. |
Note 6 - Debt
Note 6 - Debt | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6. July 31, 2017 January 31, 2017 (in thousands) Note payable $ 14,047 $ 14,269 Less current maturities (456 ) (446 ) Less loan origination costs, net (51 ) (56 ) Long-term debt $ 13,540 $ 13,767 Note Payable Effective May 30, 2012 “2012 2012 $16.1 one 2.25%. 1.23% July 31, 2017. 2012 June 2022 2012 $16.1 4.31% 2012 2012 $88,100 one $11.7 July 31, 2017 $14.0 |
Note 7 - Accumulated Other Comp
Note 7 - Accumulated Other Comprehensive Loss | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Accumulated Other Comprehensive Income (Loss) [Text Block] | 7. The components of accumulated other comprehensive loss, net of taxes, were as follows: Foreign Currency Translation Adjustments (in thousands) Balance as of January 31, 2017 $ (8,631 ) Other comprehensive income before reclassifications 1,772 Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive income 1,772 Balance as of July 31, 2017 $ (6,859 ) During the first six 2018 no |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. In determining the provision for income taxes for the second 2018, 2018, second 2017, The Company recorded income tax expense (benefit) of $0.8 0.6 second 2018 2017, 253% second 2018 146% second 2018. The Company recorded income tax expense (benefit) of $1.5 1.6 first six 2018 2017, 64% first six 2018 47% first six 2018. The gross amount of unrecognized tax benefits was $1.7 July 31, 2017, $1.0 2013 11. twelve The Company’s policy is to recognize interest and penalties, if any, related to unrecognized tax benefits as a component of income tax expense. As of July 31, 2017, $0.2 The Company files U.S. federal, state, and foreign tax returns that are subject to audit by various tax authorities. The Company is currently under audit in: ● India for fiscal years ended March 31, 2010, 2013 2014 ● Iowa for fiscal year ended January 31, 2014 During fiscal 2018, no ● India for fiscal years ended March 31, 1998, 1999 2015 |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. Dividends The following table sets forth the dividends that were declared by the Company during the first six 2018: Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount 6/13/2017 6/27/2017 7/6/2017 $ 0.072 $ 0.06 $ 1,344,000 4/11/2017 4/25/2017 5/2/2017 $ 0.072 $ 0.06 $ 1,331,000 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. The Company’s equity awards consist of RSUs and SARs. For a description of the Company’s stock-based compensation plans, see Note 5 10 January 31, 2017. Stock-Based Compensation The following table sets forth reported stock-based compensation expense for the three six July 31, 2017 2016: Three Months Ended July 31, Six Months Ended July 31, 201 7 201 6 201 7 201 6 (in thousands) (in thousands) Cost of subscription $ 36 $ 27 $ 61 $ 49 Cost of maintenance and other revenue 95 73 172 140 Cost of professional services 274 212 494 385 Sales and marketing 368 321 685 598 Research and development 304 249 557 486 General and administrative 1,515 1,211 2,391 2,043 Total stock-based compensation expense $ 2,592 $ 2,093 $ 4,360 $ 3,701 RSU Information The estimated fair value of RSUs was calculated based on the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends foregone during the vesting period. The following table summarizes the activity for RSUs for the six July 31, 2017: RSUs Weighted Average Grant Date Fair Value (in thousands) Outstanding at January 31, 2017 623 $ 20.56 Granted 293 30.66 Released (1) (235 ) 20.48 Forfeited (8 ) 20.17 Outstanding at July 31, 2017 673 $ 24.98 _________________________ ( 1 The number of RSUs released includes shares withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. The Company withholds a portion of the released shares as consideration for the Company’s payment of applicable employee income taxes. During the three July 31, 2017, 70,000 $2.2 six July 31, 2017, 72,000 $2.3 Total unrecognized compensation cost related to RSUs was approximately $15.8 July 31, 2017. 3.1 SAR Information The weighted average assumptions used to value SARs granted in the six July 31, 2017 2016 Six Months Ended July 31 , 201 7 201 6 Expected life in years (1) 5.50 5.25 Risk free interest rate (2) 1.82 % 1.16 % Volatility (3) 33 % 36 % Dividend rate (4) 0.91 % 1.51 % ____________________________ ( 1 The expected life of SARs granted under the stock-based compensation plans is based on historical vested SAR exercise and post-vest forfeiture patterns and includes an estimate of the expected term for SARs that were fully vested and outstanding. ( 2 The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of SARs in effect at the time of grant. ( 3 The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of the Company’s common stock for a period equivalent to the expected life of the SARs, which it believes is representative of the expected volatility over the expected life of the SARs. ( 4 The Company expects to continue paying quarterly dividends at the same rate as the six July 31, 2017. The following table summarizes the activity for outstanding SARs for the six July 31, 2017: SARs (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2017 2,793 $ 15.51 Granted 380 31.65 Exercised (73 ) 10.70 Expired (1 ) 9.09 Forfeited — — Outstanding at July 31, 2017 3,099 $ 17.60 4.4 $ 40,378 Vested and exercisable at July 31, 2017 2,146 $ 14.11 3.3 $ 35,187 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the aggregate difference between the closing stock price of the Company’s common stock based on the last trading day as of July 31, 2017, July 31, 2017. six July 31, 2017 $1.4 three six July 31, 2017 $9.59. three six July 31, 2016 $5.43. The number of SARs exercised includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. During the three July 31, 2017, 12,000 $0.4 six July 31, 2017, 16,000 $0.5 At July 31, 2017, $7.2 3.0 |
Note 11 - Deferred Revenues
Note 11 - Deferred Revenues | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Deferred Revenue Disclosure [Text Block] | 11. Deferred revenues consisted of the following: July 31, 2017 January 31, 2017 (in thousands) Deferred maintenance $ 63,037 $ 78,923 Deferred subscription 22,804 20,389 Deferred professional services 2,657 2,550 Deferred license 888 1,740 Deferred other revenue 275 523 Deferred revenues, current 89,661 104,125 Deferred revenues, non-current (in Other liabilities) 2,118 2,353 Total deferred revenues $ 91,779 $ 106,478 Deferred maintenance and subscription represent billings and customer payments made in advance for support and subscription contracts. Support and subscription are billed in advance with corresponding revenues being recognized ratably over the support and subscription periods. Support is typically billed annually while subscription is billed quarterly or annually. Deferred license results from undelivered products or specified enhancements, customer specific acceptance provisions and software license transactions that cannot be segmented from undelivered consulting or other services. Deferred professional services revenues represent both prepayments for professional services where revenues for these services are generally recognized as the Company completes the performance obligations for the prepaid services and services already provided but deferred due to software revenue recognition rules. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. Indemnifications The Company sells software licenses and services to its customers under written agreements. Each agreement contains the relevant terms of the contractual arrangement with the customer and generally includes certain provisions for indemnifying the customer against losses, expenses and liabilities from damages that may third The Company believes its internal development processes and other policies and practices limit its exposure related to the indemnification provisions of the agreements. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the agreements, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. Legal Actions The Company is subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not |
Note 13 - Business Segment Info
Note 13 - Business Segment Information | 6 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 13. The Company markets its products and services worldwide, primarily to companies in the manufacturing industry, including automotive, consumer products, food and beverage, high technology, industrial products and life sciences industries. The Company sells and licenses its products through its direct sales force in four third one Subscription, license and maintenance revenues are allocated to the region where the end user is located. Professional services revenue is assigned based on the region where the services are delivered. Three Months Ended July 31, Six Months Ended July 31, 201 7 201 6 201 7 201 6 (in thousands) (in thousands) Revenue: North America (1) $ 35,156 $ 32,815 $ 68,526 $ 62,334 EMEA 22,227 19,835 43,108 39,627 Asia Pacific 12,967 12,137 25,133 23,817 Latin America 5,608 4,991 10,573 9,397 $ 75,958 $ 69,778 $ 147,340 $ 135,175 ____________________________ ( 1 Sales into Canada accounted for 1% three six July 31, 2017 2% three six July 31, 2016. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements fairly present the financial information contained therein. These statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10 10 X. not 10 January 31, 2017. three six July 31, 2017 not January 31, 2018. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements With the exception of those discussed below, there have been no six July 31, 2017, Accounting Standards Adopted The Company adopted ASU 2016 09 718, Improvements to Employee Share-Based Payment Accounting third 2017. February 1, 2016, six July 31, 2016, six July 31, 2016. Accounting Standards Not In May 2014, 2014 09, Revenue from Contracts with Customers five August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 2014 09 one 2014 09 2019 not first 2019, The Company anticipates this standard might have a material impact on its consolidated financial statements. The Company has assigned internal resources and has hired third may Due to the complexity of some contracts, the actual revenue recognition treatment required under the new standard for these arrangements may five seven While the Company continues to assess the potential impacts and disclosure requirements of the new standard, the Company cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements. In February 2016, 2016 02, Leases (Topic 842 2016 02 2016 02 first 2020 2016 02 2016 02. In October 2016, 2016 16, Income Taxes: Intra-Entity Transfers of Assets Other than Inventory 2016 16 February 1, 2018. In January 2017, 2017 04, Intangibles—Goodwill and Other (Topic 350 2 zero 2 February 1, 2020. not 2017 04 In January 2017, 2017 01, Business Combinations: Clarifying the Definition of a Business, February 1, 2018. 2017 01 |
Note 2 - Computation of Net (20
Note 2 - Computation of Net (Loss) Per Share (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended July 31, July 31, 201 7 201 6 201 7 201 6 (in thousands, except per share data) (in thousands, except per share data) Net (loss) income $ (1,161 ) $ 968 $ (3,732 ) $ (1,824 ) Less: Dividends declared (1,344 ) (1,326 ) (2,675 ) (2,642 ) Undistributed net loss $ (2,505 ) $ (358 ) $ (6,407 ) $ (4,466 ) Net ( loss ) income per share – Class A Common Stock Dividends declared $ 1,151 $ 1,134 $ 2,290 $ 2,257 Allocation of undistributed net loss (2,145 ) (306 ) (5,483 ) (3,813 ) Net (loss) income attributable to Class A common stock $ (994 ) $ 828 $ (3,193 ) $ (1,556 ) Weighted average shares of Class A common stock outstanding— basic 15,914 15,694 15,863 15,644 Weighted average potential shares of Class A common stock — 586 — — Weighted average shares of Class A common stock and potential common shares outstanding— diluted 15,914 16,280 15,863 15,644 Basic net (loss) income per Class A common share $ (0.06 ) $ 0.05 $ (0.20 ) $ (0.10 ) Diluted net (loss) income per Class A common share $ (0.06 ) $ 0.05 $ (0.20 ) $ (0.10 ) Net (loss) income per share – Class B Common Stock Dividends declared $ 193 $ 192 $ 385 $ 385 Allocation of undistributed net loss (360 ) (52 ) (924 ) (653 ) Net (loss) income attributable to Class B common stock $ (167 ) $ 140 $ (539 ) $ (268 ) Weighted average shares of Class B common stock outstanding— basic 3,212 3,205 3,211 3,204 Weighted average potential shares of Class B common stock — 70 — — Weighted average shares of Class B common stock and potential common shares outstanding— diluted 3,212 3,275 3,211 3,204 Basic net (loss) income per Class B common share $ (0.05 ) $ 0.04 $ (0.17 ) $ (0.08 ) Diluted net (loss) income per Class B common share $ (0.05 ) $ 0.04 $ (0.17 ) $ (0.08 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended Six Months Ended July 31, July 31, 201 7 201 6 201 7 201 6 (in thousands) (in thousands) Class A 3,219 1,027 3,129 2,883 Class B 384 151 387 361 |
Note 3 - Fair Value Measureme21
Note 3 - Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Money market mutual funds as of July 31, 2017 (a) $ 121,084 Money market mutual funds as of January 31, 2017 (a) $ 116,043 Liability related to the interest rate swap as of July 31, 2017 (b) $ (193 ) Liability related to the interest rate swap as of January 31, 2017 (b) $ (190 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | (Liability) Derivative Fair Value Balance Sheet Location July 31, 201 7 January 31, 201 7 Derivative instrument: Interest rate swap Other liabilities $ (193 ) $ (190 ) Total $ (193 ) $ (190 ) |
Note 4 - Capitalized Software22
Note 4 - Capitalized Software Costs (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Capitalized Software Costs [Table Text Block] | July 31, 2017 January 31, 2017 (in thousands) Capitalized software costs: Acquired software technology $ 3,458 $ 3,458 Capitalized software development costs 1,069 748 4,527 4,206 Less accumulated amortization (3,727 ) (3,474 ) Capitalized software costs, net $ 800 $ 732 |
Schedule of Capitalized Software Costs Amortization Expense [Table Text Block] | Fiscal Years (in thousands) 2018 remaining $ 424 2019 197 2020 144 2021 35 $ 800 |
Note 5 - Goodwill and Intangi23
Note 5 - Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount Accumulated Impairment Goodwill, Net (in thousands) Balance at January 31, 2017 $ 26,166 $ (15,608 ) $ 10,558 Impact of foreign currency translation 314 - 314 Balance at July 31, 2017 $ 26,480 $ (15,608 ) $ 10,872 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | July 31, 2017 January 31, 2017 (in thousands) Amortizable intangible assets Customer relationships (1) $ 1,500 $ 2,721 Trade name 349 515 1,849 3,236 Less: accumulated amortization (1,707 ) (2,821 ) Net amortizable intangible assets $ 142 $ 415 |
Note 6 - Debt (Tables)
Note 6 - Debt (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | July 31, 2017 January 31, 2017 (in thousands) Note payable $ 14,047 $ 14,269 Less current maturities (456 ) (446 ) Less loan origination costs, net (51 ) (56 ) Long-term debt $ 13,540 $ 13,767 |
Note 7 - Accumulated Other Co25
Note 7 - Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments (in thousands) Balance as of January 31, 2017 $ (8,631 ) Other comprehensive income before reclassifications 1,772 Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive income 1,772 Balance as of July 31, 2017 $ (6,859 ) |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Dividends Declared [Table Text Block] | Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount 6/13/2017 6/27/2017 7/6/2017 $ 0.072 $ 0.06 $ 1,344,000 4/11/2017 4/25/2017 5/2/2017 $ 0.072 $ 0.06 $ 1,331,000 |
Note 10 - Stock-based Compens27
Note 10 - Stock-based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended July 31, Six Months Ended July 31, 201 7 201 6 201 7 201 6 (in thousands) (in thousands) Cost of subscription $ 36 $ 27 $ 61 $ 49 Cost of maintenance and other revenue 95 73 172 140 Cost of professional services 274 212 494 385 Sales and marketing 368 321 685 598 Research and development 304 249 557 486 General and administrative 1,515 1,211 2,391 2,043 Total stock-based compensation expense $ 2,592 $ 2,093 $ 4,360 $ 3,701 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | RSUs Weighted Average Grant Date Fair Value (in thousands) Outstanding at January 31, 2017 623 $ 20.56 Granted 293 30.66 Released (1) (235 ) 20.48 Forfeited (8 ) 20.17 Outstanding at July 31, 2017 673 $ 24.98 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended July 31 , 201 7 201 6 Expected life in years (1) 5.50 5.25 Risk free interest rate (2) 1.82 % 1.16 % Volatility (3) 33 % 36 % Dividend rate (4) 0.91 % 1.51 % |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | SARs (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2017 2,793 $ 15.51 Granted 380 31.65 Exercised (73 ) 10.70 Expired (1 ) 9.09 Forfeited — — Outstanding at July 31, 2017 3,099 $ 17.60 4.4 $ 40,378 Vested and exercisable at July 31, 2017 2,146 $ 14.11 3.3 $ 35,187 |
Note 11 - Deferred Revenues (Ta
Note 11 - Deferred Revenues (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | July 31, 2017 January 31, 2017 (in thousands) Deferred maintenance $ 63,037 $ 78,923 Deferred subscription 22,804 20,389 Deferred professional services 2,657 2,550 Deferred license 888 1,740 Deferred other revenue 275 523 Deferred revenues, current 89,661 104,125 Deferred revenues, non-current (in Other liabilities) 2,118 2,353 Total deferred revenues $ 91,779 $ 106,478 |
Note 13 - Business Segment In29
Note 13 - Business Segment Information (Tables) | 6 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended July 31, Six Months Ended July 31, 201 7 201 6 201 7 201 6 (in thousands) (in thousands) Revenue: North America (1) $ 35,156 $ 32,815 $ 68,526 $ 62,334 EMEA 22,227 19,835 43,108 39,627 Asia Pacific 12,967 12,137 25,133 23,817 Latin America 5,608 4,991 10,573 9,397 $ 75,958 $ 69,778 $ 147,340 $ 135,175 |
Note 1 - Basis of Presentatio30
Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Details Textual) | 6 Months Ended |
Jul. 31, 2017 | |
Minimum [Member] | |
Deferred Costs of Contracts, Expected Amortization Period | 5 years |
Maximum [Member] | |
Deferred Costs of Contracts, Expected Amortization Period | 7 years |
Note 2 - Computation of Net Los
Note 2 - Computation of Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Dividends declared | $ (1,344) | $ (1,326) | $ (2,675) | $ (2,642) |
Net (loss) income per share | ||||
Dividends declared | 1,344 | 1,326 | 2,675 | 2,642 |
Undistributed net loss | (2,505) | (358) | (6,407) | (4,466) |
Net (loss) income | (1,161) | 968 | (3,732) | (1,824) |
Common Class A [Member] | ||||
Dividends declared | $ (1,151) | $ (1,134) | $ (2,290) | $ (2,257) |
Net (loss) income per share | ||||
Basic net (loss) income per common share (in dollars per share) | $ (0.06) | $ 0.05 | $ (0.20) | $ (0.10) |
Diluted net (loss) income per common share (in dollars per share) | $ (0.06) | $ 0.05 | $ (0.20) | $ (0.10) |
Dividends declared | $ 1,151 | $ 1,134 | $ 2,290 | $ 2,257 |
Undistributed net loss | (2,145) | (306) | (5,483) | (3,813) |
Net (loss) income | $ (994) | $ 828 | $ (3,193) | $ (1,556) |
Weighted average shares of common stock outstanding—basic (in shares) | 15,914 | 15,694 | 15,863 | 15,644 |
Weighted average potential shares of common stock (in shares) | 586 | |||
Weighted average shares of common stock and potential common shares outstanding—diluted (in shares) | 15,914 | 16,280 | 15,863 | 15,644 |
Common Class B [Member] | ||||
Dividends declared | $ (193) | $ (192) | $ (385) | $ (385) |
Net (loss) income per share | ||||
Basic net (loss) income per common share (in dollars per share) | $ (0.05) | $ 0.04 | $ (0.17) | $ (0.08) |
Diluted net (loss) income per common share (in dollars per share) | $ (0.05) | $ 0.04 | $ (0.17) | $ (0.08) |
Dividends declared | $ 193 | $ 192 | $ 385 | $ 385 |
Undistributed net loss | (360) | (52) | (924) | (653) |
Net (loss) income | $ (167) | $ 140 | $ (539) | $ (268) |
Weighted average shares of common stock outstanding—basic (in shares) | 3,212 | 3,205 | 3,211 | 3,204 |
Weighted average potential shares of common stock (in shares) | 70 | |||
Weighted average shares of common stock and potential common shares outstanding—diluted (in shares) | 3,212 | 3,275 | 3,211 | 3,204 |
Note 2 - Computation of Net L32
Note 2 - Computation of Net Loss Per Share - Anti-dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Common Class A [Member] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 3,219 | 1,027 | 3,129 | 2,883 |
Common Class B [Member] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 384 | 151 | 387 | 361 |
Note 3 - Fair Value Measureme33
Note 3 - Fair Value Measurements (Details Textual) - USD ($) | 6 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Cash and Cash Equivalents, at Carrying Value | $ 149,202,000 | $ 134,708,000 | $ 145,082,000 | $ 137,731,000 |
Interest Rate Swap [Member] | ||||
Derivative, Gain (Loss) on Derivative, Net | (3,000) | $ (212,000) | ||
Reported Value Measurement [Member] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 28,000,000 | $ 29,000,000 |
Note 3 - Fair Value Measureme34
Note 3 - Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 | |
Liability related to the interest rate swap | $ (193) | $ (190) | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Money market mutual funds | [1] | 121,084 | 116,043 |
Liability related to the interest rate swap | [2] | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Money market mutual funds | [1] | ||
Liability related to the interest rate swap | [2] | $ (193) | $ (190) |
[1] | Money market mutual funds are recorded at fair value based upon quoted market prices. | ||
[2] | The liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves. |
Note 3 - Fair Value Measureme35
Note 3 - Fair Value Measurements - Fair Values of the Derivative Instrument (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Derivative instrument: | ||
Fair value of derivative instrument | $ (193) | $ (190) |
Interest Rate Swap [Member] | Other Liabilities [Member] | ||
Derivative instrument: | ||
Fair value of derivative instrument | $ (193) | $ (190) |
Note 4 - Capitalized Software36
Note 4 - Capitalized Software Costs (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Capitalized Computer Software Write-Downs | $ 0.2 | |
Capitalized Computer Software, Amortization | $ 0.4 | $ 0.5 |
Note 4 - Capitalized Software37
Note 4 - Capitalized Software Costs - Capitalized Software Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Capitalized software costs: | ||
Acquired software technology | $ 3,458 | $ 3,458 |
Capitalized software development costs | 1,069 | 748 |
Total capitalized software costs | 4,527 | 4,206 |
Less accumulated amortization | (3,727) | (3,474) |
Capitalized software costs, net | $ 800 | $ 732 |
Note 4 - Capitalized Software38
Note 4 - Capitalized Software Costs - Estimated Amortization Expense (Details) - USD ($) | Jul. 31, 2017 | Jan. 31, 2017 |
2018 remaining | $ 142,000 | |
Total | 142,000 | $ 415,000 |
Computer Software, Intangible Asset [Member] | ||
2018 remaining | 424,000 | |
2,019 | 197,000 | |
2,020 | 144,000 | |
2,021 | 35,000 | |
Total | $ 800,000 |
Note 5 - Goodwill and Intangi39
Note 5 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Jan. 31, 2017 | |
Goodwill, Impairment Loss | $ 0 | ||||
Write off of Amortizable Intangible Assets | $ 1,500,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 142,000 | $ 142,000 | |||
Amortization of Intangible Assets | $ 111,000 | $ 166,000 | $ 274,000 | $ 331,000 |
Note 5 - Goodwill and Intangi40
Note 5 - Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2017USD ($) | |
Beginning balance, gross | $ 26,166 |
Impact of foreign currency translation, gross | 314 |
Ending balance, gross | 26,480 |
Accumulated impairment | (15,608) |
Impact of foreign currency translation, accumulated impairment | |
Accumulated impairment | (15,608) |
Beginning balance, net | 10,558 |
Impact of foreign currency translation, net | 314 |
Ending balance, net | $ 10,872 |
Note 5 - Goodwill and Intangi41
Note 5 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 | |
Amortizable intangible assets | |||
Amortizable intangible assets, gross | $ 1,849 | $ 3,236 | |
Less: accumulated amortization | (1,707) | (2,821) | |
Total | 142 | 415 | |
Customer Relationships [Member] | |||
Amortizable intangible assets | |||
Amortizable intangible assets, gross | [1] | 1,500 | 2,721 |
Trade Names [Member] | |||
Amortizable intangible assets | |||
Amortizable intangible assets, gross | $ 349 | $ 515 | |
[1] | Customer relationships include the impact of foreign currency translation. |
Note 6 - Debt (Details Textual)
Note 6 - Debt (Details Textual) - USD ($) | May 30, 2012 | Jul. 31, 2017 |
2012 Mortgage [Member] | Quad Ortega Hill LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.23% | |
2012 Mortgage [Member] | Rabobank N.A [Member] | Quad Ortega Hill LLC [Member] | ||
Debt Instrument, Face Amount | $ 16,100,000 | |
Debt Instrument, Periodic Payment | 88,100 | |
Final Principal Payment | 11,700,000 | |
2012 Mortgage [Member] | Rabobank N.A [Member] | Quad Ortega Hill LLC [Member] | Swap [Member] | ||
Derivative Liability, Notional Amount | $ 16,100,000 | |
Derivative, Fixed Interest Rate | 4.31% | |
2012 Mortgage [Member] | Rabobank N.A [Member] | Quad Ortega Hill LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
Unsecured Credit Agreement [Member] | Rabobank N.A [Member] | ||
Loans Payable to Bank | $ 14,000,000 |
Note 6 - Debt - Summary of Debt
Note 6 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Note payable | $ 14,047 | $ 14,269 |
Less current maturities | (456) | (446) |
Less loan origination costs, net | (51) | (56) |
Long-term debt | $ 13,540 | $ 13,767 |
Note 7 - Accumulated Other Co44
Note 7 - Accumulated Other Comprehensive Loss (Details Textual) $ in Thousands | 6 Months Ended |
Jul. 31, 2017USD ($) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 |
Note 7 - Accumulated Other Co45
Note 7 - Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2017USD ($) | |
Balance | $ 112,686 |
Balance | 109,630 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | (8,631) |
Other comprehensive income before reclassifications | 1,772 |
Amounts reclassified from accumulated other comprehensive loss | |
Net current period other comprehensive income | 1,772 |
Balance | $ (6,859) |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Tax Expense (Benefit) | $ 832 | $ (575) | $ 1,452 | $ (1,648) |
Effective Income Tax Rate Reconciliation, Percent | (253.00%) | (146.00%) | (64.00%) | 47.00% |
Unrecognized Tax Benefits | $ 1,700 | $ 1,700 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | (1,000) | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 200 | $ 200 |
Note 9 - Stockholders' Equity -
Note 9 - Stockholders' Equity - Dividends (Details) | 6 Months Ended |
Jul. 31, 2017USD ($)$ / shares | |
Dividends Declaration Date One [Member] | |
Amount | $ | $ 1,344,000 |
Record Date | Jun. 27, 2017 |
Payable | Jul. 6, 2017 |
Dividends Declaration Date One [Member] | Common Class A [Member] | |
Dividend Per Share (in dollars per share) | $ 0.072 |
Dividends Declaration Date One [Member] | Common Class B [Member] | |
Dividend Per Share (in dollars per share) | $ 0.06 |
Dividends Declaration Date Two [Member] | |
Amount | $ | $ 1,331,000 |
Record Date | Apr. 25, 2017 |
Payable | May 2, 2017 |
Dividends Declaration Date Two [Member] | Common Class A [Member] | |
Dividend Per Share (in dollars per share) | $ 0.072 |
Dividends Declaration Date Two [Member] | Common Class B [Member] | |
Dividend Per Share (in dollars per share) | $ 0.06 |
Note 10 - Stock-based Compens48
Note 10 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Restricted Stock Units (RSUs) [Member] | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 70,000 | 72,000 | ||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 2.2 | $ 2.3 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 15.8 | $ 15.8 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 36 days | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.59 | $ 5.43 | $ 9.59 | $ 5.43 |
Shares Paid for Tax Withholding for Share Based Compensation | 12,000 | 16,000 | ||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 0.4 | $ 0.5 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 7.2 | $ 7.2 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1.4 |
Note 10 - Stock-based Compens49
Note 10 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Allocated stock-based compensation expense | $ 2,592 | $ 2,093 | $ 4,360 | $ 3,701 |
Cost of Subscription [Member] | ||||
Allocated stock-based compensation expense | 36 | 27 | 61 | 49 |
Cost of Maintenance and Other Revenue [Member] | ||||
Allocated stock-based compensation expense | 95 | 73 | 172 | 140 |
Cost of Professional Services [Member] | ||||
Allocated stock-based compensation expense | 274 | 212 | 494 | 385 |
Selling and Marketing Expense [Member] | ||||
Allocated stock-based compensation expense | 368 | 321 | 685 | 598 |
Research and Development Expense [Member] | ||||
Allocated stock-based compensation expense | 304 | 249 | 557 | 486 |
General and Administrative Expense [Member] | ||||
Allocated stock-based compensation expense | $ 1,515 | $ 1,211 | $ 2,391 | $ 2,043 |
Note 10 - Stock-based Compens50
Note 10 - Stock-based Compensation - RSUs Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 6 Months Ended | |
Jul. 31, 2017$ / sharesshares | ||
Outstanding at January 31, 2017 (in shares) | shares | 623 | |
Outstanding at January 31, 2017 (in dollars per share) | $ / shares | $ 20.56 | |
Granted (in shares) | shares | 293 | |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 30.66 | |
Released (in shares) | shares | (235) | [1] |
Released, weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.48 | [1] |
Outstanding at July 31, 2017 (in dollars per share) | $ / shares | $ 24.98 | |
Forfeited (in shares) | shares | (8) | |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.17 | |
Outstanding at July 31, 2017 (in shares) | shares | 673 | |
[1] | The number of RSUs released includes shares withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. |
Note 10 - Stock-based Compens51
Note 10 - Stock-based Compensation - Weighted Average Assumption to Value SARs (Details) - Stock Appreciation Rights (SARs) [Member] | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | ||
Expected life in years (1) (Year) | [1] | 5 years 182 days | 5 years 91 days |
Risk free interest rate (2) | [2] | 1.82% | 1.16% |
Volatility (3) | [3] | 33.00% | 36.00% |
Dividend rate (4) | [4] | 0.91% | 1.51% |
[1] | The expected life of SARs granted under the stock-based compensation plans is based on historical vested SAR exercise and post-vest forfeiture patterns and includes an estimate of the expected term for SARs that were fully vested and outstanding. | ||
[2] | The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of SARs in effect at the time of grant. | ||
[3] | The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of the Company’s common stock for a period equivalent to the expected life of the SARs, which it believes is representative of the expected volatility over the expected life of the SARs. | ||
[4] | The Company expects to continue paying quarterly dividends at the same rate as the six months ending on July 31, 2017. |
Note 10 - Stock-based Compens52
Note 10 - Stock-based Compensation - Options/SARs Activity (Details) - Options/SARs [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jul. 31, 2017USD ($)$ / sharesshares | |
Outstanding (in shares) | shares | 2,793 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 15.51 |
Granted (in shares) | shares | 380 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 31.65 |
Exercised (in shares) | shares | (73) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 10.70 |
Expired (in shares) | shares | (1) |
Expired, weighted average exercise price (in dollars per share) | $ / shares | $ 9.09 |
Forfeited (in shares) | shares | |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | |
Outstanding (in shares) | shares | 3,099 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 17.60 |
Outstanding at July 31, 2017 (Year) | 4 years 146 days |
Outstanding at July 31, 2017 | $ | $ 40,378 |
Vested and exercisable (in shares) | shares | 2,146 |
Vested and exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 14.11 |
Vested and exercisable, weighted average remaining contractual term (Year) | 3 years 109 days |
Vested and exercisable, aggregate intrinsic value | $ | $ 35,187 |
Note 11 - Deferred Revenues - S
Note 11 - Deferred Revenues - Summary of Deferred Revenues (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jan. 31, 2017 |
Deferred revenue | $ 89,661 | $ 104,125 |
Deferred revenues, non-current (in Other liabilities) | 2,118 | 2,353 |
Total deferred revenues | 91,779 | 106,478 |
Software Service, Support and Maintenance Arrangement [Member] | ||
Deferred revenue | 63,037 | 78,923 |
Subscription Arrangement [Member] | ||
Deferred revenue | 22,804 | 20,389 |
Nonsoftware Service, Support and Maintenance Arrangement [Member] | ||
Deferred revenue | 2,657 | 2,550 |
Software License Arrangement [Member] | ||
Deferred revenue | 888 | 1,740 |
Deferred Other Revenue [Member] | ||
Deferred revenue | $ 275 | $ 523 |
Note 13 - Business Segment In54
Note 13 - Business Segment Information (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Number of Geographic Locations | 4 | |||
Number of Operating Segments | 1 | |||
Geographic Concentration Risk [Member] | North America Revenue [Member] | CANADA | ||||
Concentration Risk, Percentage | 1.00% | 2.00% | 1.00% | 2.00% |
Note 13 - Business Segment In55
Note 13 - Business Segment Information - Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Revenue | $ 75,958 | $ 69,778 | $ 147,340 | $ 135,175 | |
Reportable Geographical Components [Member] | North America [Member] | |||||
Revenue | [1] | 35,156 | 32,815 | 68,526 | 62,334 |
Reportable Geographical Components [Member] | EMEA [Member] | |||||
Revenue | 22,227 | 19,835 | 43,108 | 39,627 | |
Reportable Geographical Components [Member] | Asia Pacific [Member] | |||||
Revenue | 12,967 | 12,137 | 25,133 | 23,817 | |
Reportable Geographical Components [Member] | Latin America [Member] | |||||
Revenue | $ 5,608 | $ 4,991 | $ 10,573 | $ 9,397 | |
[1] | Sales into Canada accounted for 1% of North America total revenue in the three and six months ended July 31, 2017 and for 2% of North America total revenue in the three and six months ended July 31, 2016. |