Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 31, 2017 | Nov. 30, 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 | Oct. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 3,217,111 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 16,028,335 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Assets | ||
Cash and equivalents | $ 140,027 | $ 145,082 |
Accounts receivable, net of allowances of $1,793 and $2,205 at October 31, 2017 and January 31, 2017, respectively | 50,753 | 69,441 |
Other current assets | 13,641 | 15,351 |
Total current assets | 204,421 | 229,874 |
Property and equipment, net | 30,293 | 30,872 |
Capitalized software costs, net | 956 | 732 |
Goodwill | 10,820 | 10,558 |
Deferred tax assets, net | 7,159 | 6,166 |
Other assets, net | 1,938 | 2,688 |
Total assets | 255,587 | 280,890 |
Liabilities and Stockholders’ Equity | ||
Current portion of long-term debt | 461 | 446 |
Accounts payable | 10,647 | 11,316 |
Deferred revenue | 83,117 | 104,125 |
Other current liabilities | 33,889 | 33,636 |
Total current liabilities | 128,114 | 149,523 |
Long-term debt | 13,427 | 13,767 |
Other liabilities | 4,817 | 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 | 198,391 | 197,594 |
Treasury stock, at cost (899,115 shares and 1,125,552 shares at October 31, 2017 and January 31, 2017, respectively) | (12,539) | (15,170) |
Accumulated deficit | (69,041) | (61,127) |
Accumulated other comprehensive loss | (7,602) | (8,631) |
Total stockholders’ equity | 109,229 | 112,686 |
Total liabilities and stockholders’ equity | 255,587 | 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 | Oct. 31, 2017 | Jan. 31, 2017 |
Accounts receivable, net of allowance | $ 1,793 | $ 2,205 |
Treasury stock (in shares) | 899,115 | 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 | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenue: | ||||
Subscription | $ 17,190 | $ 13,678 | $ 49,953 | $ 37,487 |
License | 6,628 | 4,323 | 18,636 | 14,686 |
Maintenance and other | 32,407 | 32,552 | 96,284 | 98,654 |
Professional services | 20,700 | 18,981 | 59,392 | 53,882 |
Total revenue | 76,925 | 69,534 | 224,265 | 204,709 |
Costs of revenue: | ||||
Subscription | 7,605 | 7,145 | 22,753 | 20,085 |
License | 690 | 582 | 2,203 | 2,072 |
Maintenance and other | 7,840 | 7,480 | 23,374 | 22,991 |
Professional services | 21,911 | 17,850 | 61,276 | 52,851 |
Total cost of revenue | 38,046 | 33,057 | 109,606 | 97,999 |
Gross profit | 38,879 | 36,477 | 114,659 | 106,710 |
Operating expenses: | ||||
Sales and marketing | 17,697 | 15,312 | 52,981 | 49,544 |
Research and development | 12,111 | 10,807 | 35,332 | 33,019 |
General and administrative | 8,556 | 7,934 | 26,373 | 24,423 |
Amortization of intangibles from acquisitions | 85 | 165 | 359 | 496 |
Total operating expenses | 38,449 | 34,218 | 115,045 | 107,482 |
Operating income (loss) | 430 | 2,259 | (386) | (772) |
Other (income) expense: | ||||
Interest income | (440) | (184) | (1,101) | (515) |
Interest expense | 195 | 168 | 508 | 503 |
Other (income) expense, net | (413) | (413) | 1,399 | 24 |
Total other (income) expense | (658) | (429) | 806 | 12 |
Income (loss) before income taxes | 1,088 | 2,688 | (1,192) | (784) |
Income tax expense (benefit) | 1,249 | 1,155 | 2,701 | (493) |
Net (loss) income | (161) | 1,533 | (3,893) | (291) |
Diluted net (loss) income per share | ||||
Net (loss) income | (161) | 1,533 | (3,893) | (291) |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment | (743) | (20) | 1,029 | 341 |
Total comprehensive (loss) income | (904) | 1,513 | (2,864) | 50 |
Common Class A [Member] | ||||
Other (income) expense: | ||||
Net (loss) income | $ (139) | $ 1,311 | $ (3,332) | $ (245) |
Basic net (loss) income per share | ||||
Basic net (loss) income per share (in dollars per share) | $ (0.01) | $ 0.08 | $ (0.21) | $ (0.02) |
Diluted net (loss) income per share | ||||
Diluted net (loss) income per share (in dollars per share) | $ (0.01) | $ 0.08 | $ (0.21) | $ (0.02) |
Net (loss) income | $ (139) | $ 1,311 | $ (3,332) | $ (245) |
Common Class B [Member] | ||||
Other (income) expense: | ||||
Net (loss) income | $ (22) | $ 222 | $ (561) | $ (46) |
Basic net (loss) income per share | ||||
Basic net (loss) income per share (in dollars per share) | $ (0.01) | $ 0.07 | $ (0.17) | $ (0.01) |
Diluted net (loss) income per share | ||||
Diluted net (loss) income per share (in dollars per share) | $ (0.01) | $ 0.07 | $ (0.17) | $ (0.01) |
Net (loss) income | $ (22) | $ 222 | $ (561) | $ (46) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (3,893) | $ (291) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 4,401 | 4,530 |
Loss on disposal of equipment | 52 | 10 |
Provision for doubtful accounts and sales adjustments | 675 | 157 |
Stock compensation expense | 6,671 | 5,521 |
Change in fair value of derivative instrument | (103) | (31) |
Changes in assets and liabilities: | ||
Accounts receivable | 19,085 | 26,494 |
Other assets | 1,640 | (1,692) |
Accounts payable | (981) | (3,098) |
Deferred revenue | (23,839) | (23,743) |
Other liabilities | (864) | (2,386) |
Net cash provided by operating activities | 2,844 | 5,471 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,587) | (2,166) |
Capitalized software costs | (809) | (109) |
Net cash used in investing activities | (3,396) | (2,275) |
Cash flows from financing activities: | ||
Repayments of debt | (333) | (326) |
Tax payments related to stock awards | (3,243) | (1,726) |
Cash dividends paid | (4,021) | (3,970) |
Net cash used in financing activities | (7,597) | (6,022) |
Effect of exchange rates on cash and equivalents | 3,094 | 784 |
Net decrease in cash and equivalents | (5,055) | (2,042) |
Cash and equivalents at beginning of period | 145,082 | 137,731 |
Cash and equivalents at end of period | $ 140,027 | $ 135,689 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS 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. ’s opinion, all necessary adjustments, consisting of normal, recurring and non-recurring adjustments, have been included in the accompanying Condensed Consolidated Financial Statements to present fairly the financial position and operating results of QAD Inc. (“QAD” or the “Company”). The Condensed Consolidated Financial Statements do not 10 January 31, 2017. three nine October 31, 2017 not January 31, 2018. Recent Accounting Pronouncements With the exception of those discussed below, there have been no nine October 31, 2017, In May 2014, 2014 09, Revenue from Contracts with Customers five August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 , to defer the effective date of ASU 2014 09 one 2014 09 2019. first 2019, The Company anticipates this standard will have a material impact on its consolidated financial statements. Due to the complexity of some contracts, the actual revenue recognition treatment required under the new standard for these arrangement s may third may not The Company is evaluating the impact of the standard on recognition of costs related to obtaining customer contracts, primarily with respect to sales commissions, sales bonuses and sales agent fees. The Company is anticipating it will record a material adjustment related to the accounting of costs to fulfill a contract because the commission and sales bonuses accounting under the new standard is significantly different than the Company's current policy of expensing commissions and sales bonuses upfront. The new standard will require the Company to defer direct and incremental commission costs to obtain new subscription and maintenance contracts and amortize those costs over the expected period of benefit. We are still evaluating the period of benefit but expect it to be approximately five . 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) Income Per Share | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 2. COMPUTATION OF NET (LOSS) INCOME PER SHARE The following table sets forth the computation of basic and diluted net (loss) income per share: Three Months Ended Nine Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands, except per share data) (in thousands, except per share data) Net (loss) income $ (161 ) $ 1,533 $ (3,893 ) $ (291 ) Less: Dividends declared (1,345 ) (1,328 ) (4,021 ) (3,970 ) Undistributed net (loss) income $ (1,506 ) $ 205 $ (7,914 ) $ (4,261 ) Net (loss) income per share – Class A Common Stock Dividends declared $ 1,152 $ 1,136 $ 3,442 $ 3,393 Allocation of undistributed net (loss) income (1,291 ) 175 (6,774 ) (3,638 ) Net (loss) income attributable to Class A common stock $ (139 ) $ 1,311 $ (3,332 ) $ (245 ) Weighted average shares of Class A common stock outstanding — basic 16,011 15,773 15,913 15,687 Weighted average potential shares of Class A common stock — 829 — — Weighted average shares of Class A common stock and potential common shares outstanding — diluted 16,011 16,602 15,913 15,687 Basic net (loss) income per Class A common share $ (0.01 ) $ 0.08 $ (0.21 ) $ (0.02 ) Diluted net (loss) income per Class A common share $ (0.01 ) $ 0.08 $ (0.21 ) $ (0.02 ) Net (loss) income per share – Class B Common Stock Dividends declared $ 193 $ 192 $ 579 $ 577 Allocation of undistributed net (loss) income (215 ) 30 (1,140 ) (623 ) Net (loss) income attributable to Class B common stock $ (22 ) $ 222 $ (561 ) $ (46 ) Weighted average shares of Class B common stock outstanding — basic 3,214 3,206 3,212 3,205 Weighted average potential shares of Class B common stock — 95 — — Weighted average shares of Class B common stock and potential common shares outstanding — diluted 3,214 3,301 3,212 3,205 Basic net (loss) income per Class B common share $ (0.01 ) $ 0.07 $ (0.17 ) $ (0.01 ) Diluted net (loss) income per Class B common share $ (0.01 ) $ 0.07 $ (0.17 ) $ (0.01 ) 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 Nine Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands) (in thousands) Class A 3,366 1,135 3,209 2,961 Class B 378 180 384 373 |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 3. FAIR VALUE MEASUREMENTS 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 October 31, 2017 January 31, 2017: Quoted Prices in Active Markets for Identical Assets (Level 1) Signi ficant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Money market mutual funds as of October 31, 2017 (a) $ 114,859 Money market mutual funds as of January 31, 2017 (a) $ 116,043 Liability related to the interest rate swap as of October 31, 2017 (b) $ (87 ) 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 $25 $29 October 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 nine October 31, 2017. Derivative Instruments The Company entered into an interest rate swap in May 2012 one 6 a liability in the Condensed Consolidated Balance Sheets and the change in fair value is reported in “Other (income) expense” in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The fair value of the interest rate swap is estimated as the net present value of projected cash flows based upon forward interest rates at the balance sheet date. The fair values of the derivative instrument at October 31, 2017 January 31, 2017 (Liability) Derivative Fair Value Balance Sheet Location October 31, 2017 January 31, 2017 Derivative instrument: Interest rate swap Other liabilities $ (87 ) $ (190 ) Total $ (87 ) $ (190 ) The change in fair value of the interest rate swap recognized in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the nine October 31, 2017 2016 $103,000 $31,000 , respectively. |
Note 4 - Capitalized Software C
Note 4 - Capitalized Software Costs | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Capitalized Software Costs [Text Block] | 4. Capitalized software costs and accumulated amortization at October 31, 2017 January 31, 2017 October 31, 2017 January 31, 2017 (in thousands) Capitalized software costs: Acquired software technology $ 1,466 $ 3,458 Capitalized software development costs 1,324 748 2,790 4,206 Less accumulated amortization (1,834 ) (3,474 ) Capitalized software costs, net $ 956 $ 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 nine 2018, $2.2 Amortization of capitalized software costs was $ 0.6 $0.7 nine October 31, 2017 2016 The following table summarizes the estimated amortization expense relating to the Company ’s capitalized software costs as of October 31, 2017: Fiscal Years (in thousands) 2018 remaining $ 190 2019 347 2020 294 2021 125 $ 956 |
Note 5 - Goodwill and Intangibl
Note 5 - Goodwill and Intangible Assets | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the nine October 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 262 - 262 Balance at October 31, 2017 $ 26,428 $ (15,608 ) $ 10,820 The Company performed its annual goodwill impairment review during the fourth 2017. ’s market capitalization to its net assets as of the test date, November 30, 2016. no 2017. No nine October 31, 2017 Intangible Assets October 31, 2017 January 31, 2017 (in thousands) Amortizable intangible assets Customer relationships (1) $ 1,500 $ 2,721 Trade name 183 515 1,683 3,236 Less: accumulated amortization (1,627 ) (2,821 ) Net amortizable intangible assets $ 56 $ 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. October 31, 2017, first nine 2018, $1.6 Amortization of intangible assets was $0.4 $0.5 nine October 31 2017 2016, $56,000 2018 . |
Note 6 - Debt
Note 6 - Debt | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6. DEBT October 31, 2017 January 31, 2017 (in thousands) Note payable $ 13,936 $ 14,269 Less current maturities (461 ) (446 ) Less loan origination costs, net (48 ) (56 ) Long-term debt $ 13,427 $ 13,767 Note Payable Effective May 30, 2012 by the Company, entered into a variable rate credit agreement (the “2012 2012 $16.1 one 2.25%. 1.24% October 31, 2017. 2012 June 2022 2012 $16.1 4.31% 2012 2012 $88,100 one $11.7 October 31, 2017 $13.9 |
Note 7 - Accumulated Other Comp
Note 7 - Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 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 1,029 Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive income 1,029 Balance as of October 31, 2017 $ (7,602 ) During the first nine 2018 no |
Note 8 - Income Taxes
Note 8 - Income Taxes | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. INCOME TAXES In determining the provision for income taxes for the third 2018, 2018, third 2017, The Company recorded income tax expense of $ 1.2 third 2018 2017. increased to 115% third 2018 43% third 2018 . The Company recorded income tax expense (benefit) of $ 2.7 0.5 first nine 2018 2017, The Company’s effective tax rate was ( 227% first nine 2018 63% first nine 2018 . The gross amount of unrecognized tax benefits was $1.7 October 31, 2017, $0.9 ing required under ASU 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 October 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 ● Kentucky for fiscal year ended January 31, 2016 ● Netherlands for fiscal year ended January 31, 2016 During fiscal 2018, ts with a small or no ● India for fiscal years ended March 31, 1998, 1999 2015 ● China for calendar years ended December 31, 2015 2016 |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. STOCKHOLDERS’ EQUITY Dividends The following table sets forth the dividends that were declared by the Company during the first nine 2018: Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount 9/12/2017 9/26/2017 10/3/2017 $ 0.072 $ 0.06 $ 1,346,000 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 | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. STOCK-BASED COMPENSATION 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 nine October 31, 2017 2016: Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 (in thousands) (in thousands) Cost of subscription $ 37 $ 32 $ 98 $ 81 Cost of maintenance and other revenue 107 80 279 219 Cost of professional services 309 232 803 618 Sales and marketing 421 306 1,106 904 Research and development 338 262 895 748 General and administrative 1,099 908 3,490 2,951 Total stock-based compensation expense $ 2,311 $ 1,820 $ 6,671 $ 5,521 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 nine October 31, 2017: RSUs Weighted Average Grant Date Fair Value (in thousands) Outstanding at January 31, 2017 623 $ 20.56 Granted 294 30.68 Released (1) (245 ) 20.44 Forfeited (10 ) 20.99 Outstanding at October 31, 2017 662 $ 25.07 _________________________ ( 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 October 31, 2017, 2,000 $62,000. nine October 31, 2017, 74,000 $2.4 Total unrecognized compensation cost related to RSUs was approximately $14.2 October 31, 2017. 2.9 SAR Information The weighted average assumptions used to value SARs granted in the nine October 31, 2017 2016 Nine Months Ended October 31, 2017 2016 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 co nsistent 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 nine October 31, 2017. The following table summarizes the activity for outstanding SARs for the nine October 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 (127 ) 10.54 Expired (10 ) 9.75 Forfeited — — Outstanding at October 31, 2017 3,036 $ 17.75 4.2 $ 56,056 Vested and exercisable at October 31, 2017 2,085 $ 14.23 3.1 $ 45,683 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 October 31, 2017, October 31, 2017. nine October 31, 2017 $2.7 nine October 31, 2017 2016 $9.59 $5.43, No three October 31, 2017 2016. The number of SARs exercised includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. During the three October 31, 2017, 12,000 $0.4 nine October 31, 2017, 28,000 $0.9 At October 31, 2017, $6.4 2.8 |
Note 11 - Deferred Revenues
Note 11 - Deferred Revenues | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Deferred Revenue Disclosure [Text Block] | 11. Deferred revenues consisted of the following: October 31, 2017 January 31, 2017 (in thousands) Deferred maintenance $ 52,705 $ 78,923 Deferred subscription 25,535 20,389 Deferred professional services 3,547 2,550 Deferred license 1,035 1,740 Deferred other revenue 295 523 Deferred revenues, current 83,117 104,125 Deferred revenues, non-current (in Other liabilities) 2,326 2,353 Total deferred revenues $ 85,443 $ 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 | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. COMMITMENTS AND CONTINGENCIES 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 ’s software is found to infringe upon certain intellectual property rights of a 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 ’s consolidated results of operations, financial position or liquidity. |
Note 13 - Business Segment Info
Note 13 - Business Segment Information | 9 Months Ended |
Oct. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 13. BUSINESS SEGMENT INFORMATION 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 ’s Chief Operating Decision Maker, the Chief Executive Officer, reviews the consolidated results within 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 October 31, Nine Months Ended October 31, 2017 2016 2017 2016 (in thousands) (in thousands) Revenue: North America (1) $ 37,319 $ 33,413 $ 105,845 $ 95,747 EMEA 21,439 19,334 64,547 58,961 Asia Pacific 12,550 11,932 37,683 35,749 Latin America 5,617 4,855 16,190 14,252 $ 76,925 $ 69,534 $ 224,265 $ 204,709 ____________________________ ( 1 Sales into Canada accounted for 2% three nine October 31, 2017 2016. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 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. ’s opinion, all necessary adjustments, consisting of normal, recurring and non-recurring adjustments, have been included in the accompanying Condensed Consolidated Financial Statements to present fairly the financial position and operating results of QAD Inc. (“QAD” or the “Company”). The Condensed Consolidated Financial Statements do not 10 January 31, 2017. three nine October 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 nine October 31, 2017, In May 2014, 2014 09, Revenue from Contracts with Customers five August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 , to defer the effective date of ASU 2014 09 one 2014 09 2019. first 2019, The Company anticipates this standard will have a material impact on its consolidated financial statements. Due to the complexity of some contracts, the actual revenue recognition treatment required under the new standard for these arrangement s may third may not The Company is evaluating the impact of the standard on recognition of costs related to obtaining customer contracts, primarily with respect to sales commissions, sales bonuses and sales agent fees. The Company is anticipating it will record a material adjustment related to the accounting of costs to fulfill a contract because the commission and sales bonuses accounting under the new standard is significantly different than the Company's current policy of expensing commissions and sales bonuses upfront. The new standard will require the Company to defer direct and incremental commission costs to obtain new subscription and maintenance contracts and amortize those costs over the expected period of benefit. We are still evaluating the period of benefit but expect it to be approximately five . 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) Income Per Share (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands, except per share data) (in thousands, except per share data) Net (loss) income $ (161 ) $ 1,533 $ (3,893 ) $ (291 ) Less: Dividends declared (1,345 ) (1,328 ) (4,021 ) (3,970 ) Undistributed net (loss) income $ (1,506 ) $ 205 $ (7,914 ) $ (4,261 ) Net (loss) income per share – Class A Common Stock Dividends declared $ 1,152 $ 1,136 $ 3,442 $ 3,393 Allocation of undistributed net (loss) income (1,291 ) 175 (6,774 ) (3,638 ) Net (loss) income attributable to Class A common stock $ (139 ) $ 1,311 $ (3,332 ) $ (245 ) Weighted average shares of Class A common stock outstanding — basic 16,011 15,773 15,913 15,687 Weighted average potential shares of Class A common stock — 829 — — Weighted average shares of Class A common stock and potential common shares outstanding — diluted 16,011 16,602 15,913 15,687 Basic net (loss) income per Class A common share $ (0.01 ) $ 0.08 $ (0.21 ) $ (0.02 ) Diluted net (loss) income per Class A common share $ (0.01 ) $ 0.08 $ (0.21 ) $ (0.02 ) Net (loss) income per share – Class B Common Stock Dividends declared $ 193 $ 192 $ 579 $ 577 Allocation of undistributed net (loss) income (215 ) 30 (1,140 ) (623 ) Net (loss) income attributable to Class B common stock $ (22 ) $ 222 $ (561 ) $ (46 ) Weighted average shares of Class B common stock outstanding — basic 3,214 3,206 3,212 3,205 Weighted average potential shares of Class B common stock — 95 — — Weighted average shares of Class B common stock and potential common shares outstanding — diluted 3,214 3,301 3,212 3,205 Basic net (loss) income per Class B common share $ (0.01 ) $ 0.07 $ (0.17 ) $ (0.01 ) Diluted net (loss) income per Class B common share $ (0.01 ) $ 0.07 $ (0.17 ) $ (0.01 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended Nine Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands) (in thousands) Class A 3,366 1,135 3,209 2,961 Class B 378 180 384 373 |
Note 3 - Fair Value Measureme21
Note 3 - Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Quoted Prices in Active Markets for Identical Assets (Level 1) Signi ficant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Money market mutual funds as of October 31, 2017 (a) $ 114,859 Money market mutual funds as of January 31, 2017 (a) $ 116,043 Liability related to the interest rate swap as of October 31, 2017 (b) $ (87 ) 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 October 31, 2017 January 31, 2017 Derivative instrument: Interest rate swap Other liabilities $ (87 ) $ (190 ) Total $ (87 ) $ (190 ) |
Note 4 - Capitalized Software22
Note 4 - Capitalized Software Costs (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Notes Tables | |
Schedule of Capitalized Software Costs [Table Text Block] | October 31, 2017 January 31, 2017 (in thousands) Capitalized software costs: Acquired software technology $ 1,466 $ 3,458 Capitalized software development costs 1,324 748 2,790 4,206 Less accumulated amortization (1,834 ) (3,474 ) Capitalized software costs, net $ 956 $ 732 |
Schedule of Capitalized Software Costs Amortization Expense [Table Text Block] | Fiscal Years (in thousands) 2018 remaining $ 190 2019 347 2020 294 2021 125 $ 956 |
Note 5 - Goodwill and Intangi23
Note 5 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Oct. 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 262 - 262 Balance at October 31, 2017 $ 26,428 $ (15,608 ) $ 10,820 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | October 31, 2017 January 31, 2017 (in thousands) Amortizable intangible assets Customer relationships (1) $ 1,500 $ 2,721 Trade name 183 515 1,683 3,236 Less: accumulated amortization (1,627 ) (2,821 ) Net amortizable intangible assets $ 56 $ 415 |
Note 6 - Debt (Tables)
Note 6 - Debt (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | October 31, 2017 January 31, 2017 (in thousands) Note payable $ 13,936 $ 14,269 Less current maturities (461 ) (446 ) Less loan origination costs, net (48 ) (56 ) Long-term debt $ 13,427 $ 13,767 |
Note 7 - Accumulated Other Co25
Note 7 - Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 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 1,029 Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive income 1,029 Balance as of October 31, 2017 $ (7,602 ) |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Notes Tables | |
Dividends Declared [Table Text Block] | Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount 9/12/2017 9/26/2017 10/3/2017 $ 0.072 $ 0.06 $ 1,346,000 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) | 9 Months Ended |
Oct. 31, 2017 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 (in thousands) (in thousands) Cost of subscription $ 37 $ 32 $ 98 $ 81 Cost of maintenance and other revenue 107 80 279 219 Cost of professional services 309 232 803 618 Sales and marketing 421 306 1,106 904 Research and development 338 262 895 748 General and administrative 1,099 908 3,490 2,951 Total stock-based compensation expense $ 2,311 $ 1,820 $ 6,671 $ 5,521 |
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 294 30.68 Released (1) (245 ) 20.44 Forfeited (10 ) 20.99 Outstanding at October 31, 2017 662 $ 25.07 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine Months Ended October 31, 2017 2016 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 (127 ) 10.54 Expired (10 ) 9.75 Forfeited — — Outstanding at October 31, 2017 3,036 $ 17.75 4.2 $ 56,056 Vested and exercisable at October 31, 2017 2,085 $ 14.23 3.1 $ 45,683 |
Note 11 - Deferred Revenues (Ta
Note 11 - Deferred Revenues (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Notes Tables | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | October 31, 2017 January 31, 2017 (in thousands) Deferred maintenance $ 52,705 $ 78,923 Deferred subscription 25,535 20,389 Deferred professional services 3,547 2,550 Deferred license 1,035 1,740 Deferred other revenue 295 523 Deferred revenues, current 83,117 104,125 Deferred revenues, non-current (in Other liabilities) 2,326 2,353 Total deferred revenues $ 85,443 $ 106,478 |
Note 13 - Business Segment In29
Note 13 - Business Segment Information (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Notes Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 (in thousands) (in thousands) Revenue: North America (1) $ 37,319 $ 33,413 $ 105,845 $ 95,747 EMEA 21,439 19,334 64,547 58,961 Asia Pacific 12,550 11,932 37,683 35,749 Latin America 5,617 4,855 16,190 14,252 $ 76,925 $ 69,534 $ 224,265 $ 204,709 |
Note 1 - Basis of Presentatio30
Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Details Textual) | 9 Months Ended |
Oct. 31, 2017 | |
Minimum [Member] | |
Deferred Costs of Contracts, Expected Amortization Period | 5 years |
Note 2 - Computation of Net (31
Note 2 - Computation of Net (Loss) Income Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Net (loss) income | $ (161) | $ 1,533 | $ (3,893) | $ (291) |
Dividends declared | (1,345) | (1,328) | (4,021) | (3,970) |
Undistributed net (loss) income | (1,506) | 205 | (7,914) | (4,261) |
Net (loss) income per share | ||||
Dividends declared | 1,345 | 1,328 | 4,021 | 3,970 |
Undistributed net (loss) income | (1,506) | 205 | (7,914) | (4,261) |
Net (loss) income | (161) | 1,533 | (3,893) | (291) |
Common Class A [Member] | ||||
Net (loss) income | (139) | 1,311 | (3,332) | (245) |
Dividends declared | (1,152) | (1,136) | (3,442) | (3,393) |
Undistributed net (loss) income | (1,291) | 175 | (6,774) | (3,638) |
Net (loss) income per share | ||||
Dividends declared | 1,152 | 1,136 | 3,442 | 3,393 |
Undistributed net (loss) income | (1,291) | 175 | (6,774) | (3,638) |
Net (loss) income | $ (139) | $ 1,311 | $ (3,332) | $ (245) |
Weighted average shares of common stock outstanding—basic (in shares) | 16,011 | 15,773 | 15,913 | 15,687 |
Weighted average potential shares of common stock (in shares) | 829 | |||
Weighted average shares of common stock and potential common shares outstanding—diluted (in shares) | 16,011 | 16,602 | 15,913 | 15,687 |
Basic net (loss) income per common share (in dollars per share) | $ (0.01) | $ 0.08 | $ (0.21) | $ (0.02) |
Diluted net (loss) income per common share (in dollars per share) | $ (0.01) | $ 0.08 | $ (0.21) | $ (0.02) |
Common Class B [Member] | ||||
Net (loss) income | $ (22) | $ 222 | $ (561) | $ (46) |
Dividends declared | (193) | (192) | (579) | (577) |
Undistributed net (loss) income | (215) | 30 | (1,140) | (623) |
Net (loss) income per share | ||||
Dividends declared | 193 | 192 | 579 | 577 |
Undistributed net (loss) income | (215) | 30 | (1,140) | (623) |
Net (loss) income | $ (22) | $ 222 | $ (561) | $ (46) |
Weighted average shares of common stock outstanding—basic (in shares) | 3,214 | 3,206 | 3,212 | 3,205 |
Weighted average potential shares of common stock (in shares) | 95 | |||
Weighted average shares of common stock and potential common shares outstanding—diluted (in shares) | 3,214 | 3,301 | 3,212 | 3,205 |
Basic net (loss) income per common share (in dollars per share) | $ (0.01) | $ 0.07 | $ (0.17) | $ (0.01) |
Diluted net (loss) income per common share (in dollars per share) | $ (0.01) | $ 0.07 | $ (0.17) | $ (0.01) |
Note 2 - Computation of Net (32
Note 2 - Computation of Net (Loss) Income Per Share - Anti-dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Common Class A [Member] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 3,366 | 1,135 | 3,209 | 2,961 |
Common Class B [Member] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 378 | 180 | 384 | 373 |
Note 3 - Fair Value Measureme33
Note 3 - Fair Value Measurements (Details Textual) - USD ($) | 9 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Cash and Cash Equivalents, at Carrying Value | $ 140,027,000 | $ 135,689,000 | $ 145,082,000 | $ 137,731,000 |
Interest Rate Swap [Member] | ||||
Derivative, Gain (Loss) on Derivative, Net | (103,000) | $ (31,000) | ||
Reported Value Measurement [Member] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 25,000,000 | $ 29,000,000 |
Note 3 - Fair Value Measureme34
Note 3 - Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 | |
Liability related to the interest rate swap | $ (87) | $ (190) | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Money market mutual funds | [1] | 114,859 | 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] | $ (87) | $ (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 | Oct. 31, 2017 | Jan. 31, 2017 |
Derivative instrument: | ||
Fair value of derivative instrument | $ (87) | $ (190) |
Interest Rate Swap [Member] | Other Liabilities [Member] | ||
Derivative instrument: | ||
Fair value of derivative instrument | $ (87) | $ (190) |
Note 4 - Capitalized Software36
Note 4 - Capitalized Software Costs (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Capitalized Computer Software Write-Downs | $ 2.2 | |
Capitalized Computer Software, Amortization | $ 0.6 | $ 0.7 |
Note 4 - Capitalized Software37
Note 4 - Capitalized Software Costs - Capitalized Software Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Capitalized software costs: | ||
Acquired software technology | $ 1,466 | $ 3,458 |
Capitalized software development costs | 1,324 | 748 |
Total capitalized software costs | 2,790 | 4,206 |
Less accumulated amortization | (1,834) | (3,474) |
Capitalized software costs, net | $ 956 | $ 732 |
Note 4 - Capitalized Software38
Note 4 - Capitalized Software Costs - Estimated Amortization Expense (Details) - USD ($) | Oct. 31, 2017 | Jan. 31, 2017 |
2018 remaining | $ 56,000 | |
Total | 56,000 | $ 415,000 |
Computer Software, Intangible Asset [Member] | ||
2018 remaining | 190,000 | |
2,019 | 347,000 | |
2,020 | 294,000 | |
2,021 | 125,000 | |
Total | $ 956,000 |
Note 5 - Goodwill and Intangi39
Note 5 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Goodwill, Impairment Loss | $ 0 | ||||
Write off of Amortizable Intangible Assets | $ 1,600,000 | ||||
Amortization of Intangible Assets | $ 85,000 | $ 165,000 | 359,000 | $ 496,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 56,000 | $ 56,000 |
Note 5 - Goodwill and Intangi40
Note 5 - Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2017USD ($) | |
Beginning balance, gross | $ 26,166 |
Impact of foreign currency translation, gross | 262 |
Ending balance, gross | 26,428 |
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 | 262 |
Ending balance, net | $ 10,820 |
Note 5 - Goodwill and Intangi41
Note 5 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 | |
Amortizable intangible assets | |||
Amortizable intangible assets, gross | $ 1,683 | $ 3,236 | |
Less: accumulated amortization | (1,627) | (2,821) | |
Total | 56 | 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 | $ 183 | $ 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 | Oct. 31, 2017 |
2012 Mortgage [Member] | Quad Ortega Hill LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.24% | |
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 | $ 13,900,000 |
Note 6 - Debt - Summary of Debt
Note 6 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Note payable | $ 13,936 | $ 14,269 |
Less current maturities | (461) | (446) |
Less loan origination costs, net | (48) | (56) |
Long-term debt | $ 13,427 | $ 13,767 |
Note 7 - Accumulated Other Co44
Note 7 - Accumulated Other Comprehensive Loss (Details Textual) $ in Thousands | 9 Months Ended |
Oct. 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 | 9 Months Ended |
Oct. 31, 2017USD ($) | |
Balance | $ 112,686 |
Balance | 109,229 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | (8,631) |
Other comprehensive income before reclassifications | 1,029 |
Amounts reclassified from accumulated other comprehensive loss | |
Net current period other comprehensive income | 1,029 |
Balance | $ (7,602) |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income Tax Expense (Benefit) | $ 1,249 | $ 1,155 | $ 2,701 | $ (493) |
Effective Income Tax Rate Reconciliation, Percent | 115.00% | 43.00% | (227.00%) | 63.00% |
Unrecognized Tax Benefits | $ 1,700 | $ 1,700 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 200 | $ 200 |
Note 9 - Stockholders' Equity -
Note 9 - Stockholders' Equity - Dividends (Details) | 9 Months Ended |
Oct. 31, 2017USD ($)$ / shares | |
Dividends Declaration Date One [Member] | |
Record Date | Sep. 26, 2017 |
Payable | Oct. 3, 2017 |
Amount | $ | $ 1,346,000 |
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] | |
Record Date | Jun. 27, 2017 |
Payable | Jul. 6, 2017 |
Amount | $ | $ 1,344,000 |
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 |
Dividend Declaration Date Three [Member] | |
Record Date | Apr. 25, 2017 |
Payable | May 2, 2017 |
Amount | $ | $ 1,331,000 |
Dividend Declaration Date Three [Member] | Common Class A [Member] | |
Dividend Per Share (in dollars per share) | $ 0.072 |
Dividend Declaration Date Three [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 ($) | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | |
Restricted Stock Units (RSUs) [Member] | |||
Shares Paid for Tax Withholding for Share Based Compensation | 2,000 | 74,000 | |
Adjustments Related to Tax Withholding for Share-based Compensation | $ 62,000 | $ 2,400,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 14,200,000 | $ 14,200,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 328 days | ||
Stock Appreciation Rights (SARs) [Member] | |||
Shares Paid for Tax Withholding for Share Based Compensation | 12,000 | 28,000 | |
Adjustments Related to Tax Withholding for Share-based Compensation | $ 400,000 | $ 900,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 6,400,000 | $ 6,400,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 292 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 2,700,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | $ 9.59 | $ 5.43 |
Note 10 - Stock-based Compens49
Note 10 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Allocated stock-based compensation expense | $ 2,311 | $ 1,820 | $ 6,671 | $ 5,521 |
Cost of Subscription [Member] | ||||
Allocated stock-based compensation expense | 37 | 32 | 98 | 81 |
Cost of Maintenance and Other Revenue [Member] | ||||
Allocated stock-based compensation expense | 107 | 80 | 279 | 219 |
Cost of Professional Services [Member] | ||||
Allocated stock-based compensation expense | 309 | 232 | 803 | 618 |
Selling and Marketing Expense [Member] | ||||
Allocated stock-based compensation expense | 421 | 306 | 1,106 | 904 |
Research and Development Expense [Member] | ||||
Allocated stock-based compensation expense | 338 | 262 | 895 | 748 |
General and Administrative Expense [Member] | ||||
Allocated stock-based compensation expense | $ 1,099 | $ 908 | $ 3,490 | $ 2,951 |
Note 10 - Stock-based Compens50
Note 10 - Stock-based Compensation - RSUs Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended | |
Oct. 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 | 294 | |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 30.68 | |
Released (in shares) | shares | (245) | [1] |
Released, weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.44 | [1] |
Forfeited (in shares) | shares | (10) | |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.99 | |
Outstanding at October 31, 2017 (in shares) | shares | 662 | |
Outstanding at October 31, 2017 (in dollars per share) | $ / shares | $ 25.07 | |
[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] | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 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 nine months ending on October 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 | 9 Months Ended |
Oct. 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 | (127) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 10.54 |
Expired (in shares) | shares | (10) |
Expired, weighted average exercise price (in dollars per share) | $ / shares | $ 9.75 |
Forfeited (in shares) | shares | |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | |
Outstanding (in shares) | shares | 3,036 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 17.75 |
Outstanding at October 31, 2017 (Year) | 4 years 73 days |
Outstanding at October 31, 2017 | $ | $ 56,056 |
Vested and exercisable (in shares) | shares | 2,085 |
Vested and exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 14.23 |
Vested and exercisable, weighted average remaining contractual term (Year) | 3 years 36 days |
Vested and exercisable, aggregate intrinsic value | $ | $ 45,683 |
Note 11 - Deferred Revenues - S
Note 11 - Deferred Revenues - Summary of Deferred Revenues (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Deferred revenue | $ 83,117 | $ 104,125 |
Deferred revenues, non-current (in Other liabilities) | 2,326 | 2,353 |
Total deferred revenues | 85,443 | 106,478 |
Software Service, Support and Maintenance Arrangement [Member] | ||
Deferred revenue | 52,705 | 78,923 |
Subscription Arrangement [Member] | ||
Deferred revenue | 25,535 | 20,389 |
Nonsoftware Service, Support and Maintenance Arrangement [Member] | ||
Deferred revenue | 3,547 | 2,550 |
Software License Arrangement [Member] | ||
Deferred revenue | 1,035 | 1,740 |
Deferred Other Revenue [Member] | ||
Deferred revenue | $ 295 | $ 523 |
Note 13 - Business Segment In54
Note 13 - Business Segment Information (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Number of Geographic Locations | 4 | |||
Number of Operating Segments | 1 | |||
Geographic Concentration Risk [Member] | North America Revenue [Member] | CANADA | ||||
Concentration Risk, Percentage | 2.00% | 2.00% | 2.00% | 2.00% |
Note 13 - Business Segment In55
Note 13 - Business Segment Information - Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | ||
Revenue | $ 76,925 | $ 69,534 | $ 224,265 | $ 204,709 | |
Reportable Geographical Components [Member] | North America [Member] | |||||
Revenue | [1] | 37,319 | 33,413 | 105,845 | 95,747 |
Reportable Geographical Components [Member] | EMEA [Member] | |||||
Revenue | 21,439 | 19,334 | 64,547 | 58,961 | |
Reportable Geographical Components [Member] | Asia Pacific [Member] | |||||
Revenue | 12,550 | 11,932 | 37,683 | 35,749 | |
Reportable Geographical Components [Member] | Latin America [Member] | |||||
Revenue | $ 5,617 | $ 4,855 | $ 16,190 | $ 14,252 | |
[1] | Sales into Canada accounted for 1% of North America total revenue in the three and nine months ended October 31, 2017 and for 2% of North America total revenue in the three and nine months ended October 31, 2016. |