Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 31, 2019 | Nov. 30, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | QAD INC | |
Entity Central Index Key | 0001036188 | |
Trading Symbol | qada | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 17,029,822 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 3,321,002 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Assets | ||
Cash and equivalents | $ 133,815 | $ 139,413 |
Short-term investments | 1,200 | |
Accounts receivable, net of allowances of $3,169 and $2,901 at October 31, 2019 and January 31, 2019, respectively | 39,748 | 81,577 |
Prepaid expenses and other current assets, net | 22,999 | 22,150 |
Total current assets | 196,562 | 244,340 |
Property and equipment, net of accumulated depreciation and amortization of $38,400 and $39,173 at October 31, 2019 and January 31, 2019, respectively | 28,628 | 29,621 |
Lease right-of-use assets | 17,067 | |
Capitalized software costs, net | 1,909 | 1,598 |
Goodwill | 12,391 | 12,423 |
Deferred tax assets, net | 5,864 | 16,172 |
Other assets, net | 12,646 | 13,020 |
Total assets | 275,067 | 317,174 |
Liabilities and Stockholders’ Equity | ||
Current portion of long-term debt | 498 | 487 |
Lease liabilities | 4,668 | |
Accounts payable | 5,679 | 9,902 |
Deferred revenue | 81,893 | 115,253 |
Other current liabilities | 33,802 | 40,348 |
Total current liabilities | 126,540 | 165,990 |
Long-term debt | 12,466 | 12,836 |
Long-term lease liabilities | 13,128 | |
Other liabilities | 5,859 | 5,101 |
Total liabilities | 157,993 | 183,927 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; none issued or outstanding | ||
Additional paid-in capital | 197,421 | 196,723 |
Treasury stock, at cost (216,378 Class B shares at October 31, 2019 and 241,667 Class A shares and 273,474 Class B shares at January 31, 2019) | (3,225) | (7,350) |
Accumulated deficit | (69,204) | (48,485) |
Accumulated other comprehensive loss | (7,939) | (7,661) |
Total stockholders’ equity | 117,074 | 133,247 |
Total liabilities and stockholders’ equity | 275,067 | 317,174 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock | 17 | 16 |
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock | $ 4 | $ 4 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Accounts receivable, net of allowance | $ 3,169 | $ 2,901 |
Accumulated depreciation and amortization | $ 38,400 | $ 39,173 |
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 |
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) | 17,029,822 | 16,605,215 |
Treasury stock (in shares) | 241,667 | |
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 |
Treasury stock (in shares) | 216,378 | 273,474 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Revenue: | ||||
Revenues | $ 77,807,000 | $ 79,577,000 | $ 232,220,000 | $ 250,310,000 |
Costs of revenue: | ||||
Costs of revenues | 33,717,000 | 37,361,000 | 106,683,000 | 118,864,000 |
Gross profit | 44,090,000 | 42,216,000 | 125,537,000 | 131,446,000 |
Operating expenses: | ||||
Sales and marketing | 19,771,000 | 18,447,000 | 60,853,000 | 57,895,000 |
Research and development | 13,622,000 | 13,155,000 | 41,479,000 | 40,674,000 |
General and administrative | 9,234,000 | 8,095,000 | 29,044,000 | 26,823,000 |
Amortization of intangibles from acquisitions | 67,000 | 45,000 | 200,000 | 45,000 |
Total operating expenses | 42,694,000 | 39,742,000 | 131,576,000 | 125,437,000 |
Operating income (loss) | 1,396,000 | 2,474,000 | (6,039,000) | 6,009,000 |
Other (income) expense: | ||||
Interest income | (695,000) | (646,000) | (2,208,000) | (1,913,000) |
Interest expense | 176,000 | 177,000 | 477,000 | 488,000 |
Other (income) expense, net | 386,000 | (636,000) | 60,000 | (1,309,000) |
Total other (income), net | (133,000) | (1,105,000) | (1,671,000) | (2,734,000) |
Income (loss) before income taxes | 1,529,000 | 3,579,000 | (4,368,000) | 8,743,000 |
Income tax expense | 1,404,000 | 597,000 | 11,991,000 | 3,251,000 |
Net income (loss) | 125,000 | 2,982,000 | (16,359,000) | 5,492,000 |
Diluted net income (loss) per share | ||||
Net income (loss) | 125,000 | 2,982,000 | (16,359,000) | 5,492,000 |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustment | (313,000) | (1,174,000) | (278,000) | (2,010,000) |
Total comprehensive (loss) income | (188,000) | 1,808,000 | (16,637,000) | 3,482,000 |
Common Class A [Member] | ||||
Other (income) expense: | ||||
Net income (loss) | $ 107,000 | $ 2,557,000 | $ (14,045,000) | $ 4,707,000 |
Basic net income (loss) per share | ||||
Basic net (loss) income per share (in dollars per share) | $ 0.01 | $ 0.16 | $ (0.85) | $ 0.29 |
Diluted net income (loss) per share | ||||
Diluted net (loss) income per share (in dollars per share) | $ 0.01 | $ 0.14 | $ (0.85) | $ 0.26 |
Net income (loss) | $ 107,000 | $ 2,557,000 | $ (14,045,000) | $ 4,707,000 |
Common Class B [Member] | ||||
Other (income) expense: | ||||
Net income (loss) | $ 18,000 | $ 425,000 | $ (2,314,000) | $ 785,000 |
Basic net income (loss) per share | ||||
Basic net (loss) income per share (in dollars per share) | $ 0.01 | $ 0.13 | $ (0.71) | $ 0.24 |
Diluted net income (loss) per share | ||||
Diluted net (loss) income per share (in dollars per share) | $ 0.01 | $ 0.12 | $ (0.71) | $ 0.23 |
Net income (loss) | $ 18,000 | $ 425,000 | $ (2,314,000) | $ 785,000 |
Subscription and Circulation [Member] | ||||
Revenue: | ||||
Revenues | 27,328,000 | 23,863,000 | 78,522,000 | 67,813,000 |
Costs of revenue: | ||||
Costs of revenues | 9,540,000 | 8,686,000 | 28,860,000 | 25,248,000 |
License [Member] | ||||
Revenue: | ||||
Revenues | 3,295,000 | 4,631,000 | 11,277,000 | 16,458,000 |
Costs of revenue: | ||||
Costs of revenues | 510,000 | 534,000 | 1,655,000 | 1,772,000 |
Maintenance [Member] | ||||
Revenue: | ||||
Revenues | 29,699,000 | 30,401,000 | 89,184,000 | 92,458,000 |
Costs of revenue: | ||||
Costs of revenues | 7,291,000 | 7,716,000 | 22,353,000 | 23,355,000 |
Professional Services [Member] | ||||
Revenue: | ||||
Revenues | 17,485,000 | 20,682,000 | 53,237,000 | 73,581,000 |
Costs of revenue: | ||||
Costs of revenues | $ 16,376,000 | $ 20,425,000 | $ 53,815,000 | $ 68,489,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Common Class A [Member] | Common Class B [Member] | Total |
Balance (in shares) at Jan. 31, 2018 | 16,605 | 3,537 | (892) | ||||||
Balance at Jan. 31, 2018 | $ 16 | $ 4 | $ (12,461) | $ 200,456 | $ (75,559) | $ (6,828) | $ 105,628 | ||
Net income (loss) | 5,492 | $ 4,707 | $ 785 | 5,492 | |||||
Foreign currency translation adjustments | (2,010) | (2,010) | |||||||
Stock award exercises (in shares) | 194 | ||||||||
Stock award exercises | $ 3,401 | (7,819) | (4,418) | ||||||
Stock compensation expense | 7,618 | 7,618 | |||||||
Dividends declared ($0.216 and $0.18 per Class A and Class B share, respectively) | (4,105) | (4,105) | |||||||
Restricted stock (in shares) | 181 | ||||||||
Restricted stock | $ 1,676 | (5,963) | (4,287) | ||||||
Adjusted balance at Jan. 31, 2018 | $ 16 | $ 4 | $ (12,461) | 200,456 | (53,434) | (6,828) | 127,753 | ||
Balance (in shares) at Oct. 31, 2018 | 16,605 | 3,537 | (517) | ||||||
Balance at Oct. 31, 2018 | $ 16 | $ 4 | $ (7,384) | 194,292 | (52,047) | (8,838) | 126,043 | ||
Cumulative effect of the adoption of ASC | 22,125 | 22,125 | |||||||
Balance (in shares) at Jan. 31, 2019 | 16,605 | 3,537 | (515) | ||||||
Balance at Jan. 31, 2019 | $ 16 | $ 4 | $ (7,350) | 196,723 | (48,485) | (7,661) | 133,247 | ||
Net income (loss) | (16,359) | $ (14,045) | $ (2,314) | (16,359) | |||||
Foreign currency translation adjustments | (278) | (278) | |||||||
Stock award exercises (in shares) | 421 | 126 | |||||||
Stock award exercises | $ 1 | $ 1,943 | (2,164) | (220) | |||||
Stock compensation expense | 8,396 | 8,396 | |||||||
Dividends declared ($0.216 and $0.18 per Class A and Class B share, respectively) | (4,187) | (4,187) | |||||||
Restricted stock (in shares) | 4 | 173 | |||||||
Restricted stock | $ 2,182 | (5,534) | (3,352) | ||||||
Balance (in shares) at Oct. 31, 2019 | 17,030 | 3,537 | (216) | ||||||
Balance at Oct. 31, 2019 | $ 17 | $ 4 | $ (3,225) | 197,421 | (69,204) | (7,939) | 117,074 | ||
Cumulative effect of the adoption of ASC | $ (173) | $ (173) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - Retained Earnings [Member] - $ / shares | 9 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Common Class A [Member] | ||
Dividends declared, per share (in dollars per share) | $ 0.216 | $ 0.216 |
Common Class B [Member] | ||
Dividends declared, per share (in dollars per share) | $ 0.18 | $ 0.18 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (16,359) | $ 5,492 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,745 | 4,100 |
Amortization of costs capitalized to obtain revenue contracts | 3,301 | 3,107 |
Non-cash lease expense | 4,460 | |
Net change in valuation allowance for deferred tax assets | 14,376 | 3,760 |
Other deferred income taxes | (2) | (824) |
Loss on disposal of equipment | 51 | 26 |
Provision for doubtful accounts and sales adjustments | 656 | 926 |
Stock compensation expense | 8,396 | 7,618 |
Change in fair value of derivative instrument | 352 | (198) |
Other, net | 71 | |
Changes in assets and liabilities: | ||
Accounts receivable | 40,342 | 33,923 |
Costs capitalized to obtain revenue contracts | (3,489) | (2,510) |
Lease liabilities | (4,577) | |
Prepaid expenses and other assets | (3,767) | 688 |
Accounts payable | (4,048) | (3,503) |
Deferred revenue | (31,422) | (30,977) |
Other liabilities | (5,385) | (6,511) |
Net cash provided by operating activities | 7,701 | 15,117 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (4,251) | (3,225) |
Acquisition of business, net of cash acquired | (2,655) | |
Purchase of short-term investments | (1,200) | |
Proceeds from sale of short-term investments | 2,400 | |
Capitalized software costs | (963) | (778) |
Net cash used in investing activities | (4,014) | (6,658) |
Cash flows from financing activities: | ||
Repayments of debt | (389) | (350) |
Tax payments related to stock awards | (3,572) | (8,705) |
Cash dividends paid | (4,187) | (4,105) |
Net cash used in financing activities | (8,148) | (13,160) |
Effect of exchange rates on cash and equivalents | (1,137) | (4,242) |
Net decrease in cash and equivalents | (5,598) | (8,943) |
Cash and equivalents at beginning of period | 139,413 | 147,023 |
Cash and equivalents at end of period | 133,815 | 138,080 |
Supplemental disclosure of cash flow information: | ||
Interest | 464 | 458 |
Income taxes, net of refunds | $ 2,974 | $ 2,558 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Oct. 31, 2019 | |
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 in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10 10 X. not 10 January 31, 2019. nine October 31, 2019 not January 31, 2020. The Company’s accounting policies are set forth in detail in Note 1 10 January 31, 2019 Assets Held for Sale During the second 2020, 12 $1.7 October 31, 2019. Recent Accounting Pronouncements Except as discussed below, there have been no nine October 31, 2019, Recent Accounting Pronouncements Adopted In February 2016, 2016 02, Leases (Topic 842 2016 02, February 1, 2019, 840, not The Company elected the package of practical expedients not not Adoption of the new standard resulted in the recording of a non-cash transitional adjustment to ROU lease assets and lease liabilities of approximately $13.1 $13.9 February 1, 2019. 2016 02 not Recent Accounting Pronouncements Not In August 2018, 2018 15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350 40 350 40, 2018 15 December 15, 2019, In January 2017, 2017 04, Intangibles—Goodwill and Other (Topic 350 ): Simplifying the Test for Goodwill Impairment, 2 zero 2 2017 04 February 1, 2020. not 2017 04 In June 2016, 2016 13, Financial Instruments-Credit Losses (Topic 326 2016 13 2016 13 December 15, 2019, first 2016 13 first 2021. |
Note 2 - Revenue
Note 2 - Revenue | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. REVENUE QAD offers its software using the same underlying technology via two not The Company generates revenue through sales of licenses and maintenance provided to its on-premises customers and through subscriptions of its cloud-based software. QAD offers professional services to both its on-premises and cloud customers to assist them with the design, testing and implementation of its software. The Company determines revenue recognition through the following steps: - Identification of the contract, or contracts, with a customer; - Identification of the performance obligations in the contract; - Determination of the transaction price; - Allocation of the transaction price to the performance obligations in the contract; and - Recognition of revenue when, or as, the Company satisfies a performance obligation. Revenue is presented net of sales, value-added and other taxes collected from customers and remitted to government authorities. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under ASU 2014 09 Revenue from Contracts with Customers (Topic 606 The Company’s contracts which contain multiple performance obligations generally consist of the initial purchase of subscription or licenses and a professional services engagement. License purchases generally have multiple performance obligations as customers purchase maintenance in addition to the licenses. The Company’s single performance obligation arrangements are typically maintenance renewals, subscription renewals and services engagements. For contracts with multiple performance obligations where the contracted price differs from the stand-alone selling price ("SSP") for any distinct good or service, the Company may Judgment is required to determine the SSP for each distinct performance obligation. In instances where SSP is not not may first Subscription Subscription revenue is recognized ratably over the initial subscription period committed to by the customer commencing when the cloud environment is made available to the customer. The initial subscription period is typically 12 60 30 Software Licenses Transfer of control for software is considered to have occurred upon electronic delivery of the license key that provides immediate availability of the product to the customer. The Company’s typical payment terms tend to vary by region but its standard payment terms are within 30 90 Maintenance Revenue from support services and product updates, referred to as maintenance revenue, is recognized ratably over the term of the maintenance period, which in most instances is one 30 Professional Services Revenue from professional services is typically comprised of implementation, development, training or other consulting services. Consulting services are generally sold on a time-and-materials or fixed fee basis and can include services ranging from software installation to data conversion and building non-complex interfaces to allow the software to operate in integrated environments. The Company recognizes revenue for time-and-materials arrangements as the services are performed. In fixed fee arrangements, revenue is recognized as services are performed as measured by costs incurred to date, compared to total estimated costs to complete the services project. Management applies judgment when estimating project status and the costs necessary to complete the services projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Services are generally invoiced upon milestones in the contract or upon consumption of the hourly resources and payments are typically due 30 Indirect Sales Channels The Company executes arrangements through indirect sales channels via sales agents and distributors who are authorized to market its software products to end users. In arrangements with sales agents, QAD contracts directly with the customer and sales agents are compensated on a commission basis. Distributor arrangements are those in which the resellers are authorized to market and distribute the Company’s software products to end users in specified territories and the distributor bears the risk of collection from the end user customer. The Company recognizes revenue from transactions with distributors when the distributor submits a signed agreement and transfer of control has occurred to the distributor in accordance with the five not Disaggregated Revenue The Company disaggregates revenue from contracts with customers by geography and by the customers’ industry within manufacturing, as it believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company’s revenue by geography is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) North America $ 38,302 $ 39,870 $ 112,798 $ 119,183 EMEA 22,233 22,549 66,860 74,542 Asia Pacific 11,776 12,348 35,413 37,773 Latin America 5,496 4,810 17,149 18,812 Total revenue $ 77,807 $ 79,577 $ 232,220 $ 250,310 The Company’s revenue by industry is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Automotive $ 28,071 $ 31,035 $ 84,105 $ 102,760 Consumer products and food and beverage 11,244 12,732 35,351 40,049 High technology and industrial products 26,612 23,873 78,549 74,231 Life sciences and other 11,880 11,937 34,215 33,270 Total revenue $ 77,807 $ 79,577 $ 232,220 $ 250,310 Management Judgments Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 may may Revenue is recognized over time for the Company’s subscription, maintenance and fixed fee professional services that are separate performance obligations. For the Company’s professional services, revenue is recognized over time, generally using costs incurred or hours expended to measure progress. Judgment is required in estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization, specification variances and testing requirement changes. If a group of agreements are entered at or near the same time and so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be combined as one Contract Balances The timing of revenue recognition may not not The contract assets indicated below are presented as other current and non-current assets in the Condensed Consolidated Balance Sheets. These assets primarily relate to professional services and subscription and consist of the Company’s rights to consideration for goods or services transferred but not October 31, 2019. The Company’s contract balances are as follows: October 31, 2019 January 31, 2019 (in thousands) Contract assets, short-term (in Prepaid expenses and other current assets, net) $ 3,215 $ 2,058 Contract assets, long-term (in Other assets, net) 589 - Total contract assets $ 3,804 $ 2,058 Deferred revenue, short-term $ 81,893 $ 115,253 Deferred revenue, long-term (in Other liabilities) 1,929 1,465 Total deferred revenue $ 83,822 $ 116,718 During the nine October 31, 2019, $105.0 Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted but unsatisfied performance obligations were approximately $232.3 October 31, 2019, $144.2 twelve not not Deferred Revenue The Company typically invoices its customers for subscription and maintenance in advance on a quarterly or annual basis, with payment due at the start of the subscription or maintenance term. Unpaid invoice amounts for non-cancelable services starting in future periods are included in accounts receivable and deferred revenue. The portion of deferred revenue that QAD anticipates will be recognized after the succeeding twelve Deferred revenues consisted of the following: October 31, 2019 January 31, 2019 (in thousands) Deferred maintenance $ 47,125 $ 77,037 Deferred subscription 32,798 34,020 Deferred professional services 1,730 2,146 Deferred license 85 1,713 Deferred other revenue 155 337 Deferred revenues, current 81,893 115,253 Deferred revenues, non-current (in Other liabilities) 1,929 1,465 Total deferred revenues $ 83,822 $ 116,718 Practical Expedients and Exemptions There are several practical expedients and exemptions allowed under Topic 606 ● The Company does not one ● The Company generally expenses sales commissions and sales agent fees when incurred when the amortization period would have been one ● The Company calculates contract acquisition costs based on a portfolio of contracts with similar characteristics instead of a contract by contract analysis. ● The Company does not Costs to Obtain and Fulfill a Contract The Company’s incremental direct costs of obtaining a contract consist of sales commissions and sales agent fees which are deferred and amortized ratably over the term of economic benefit which the Company has determined to be five October 31, 2019 January 31, 2019, $11.2 $11.0 three nine October 31, 2019, $1.0 $2.9 three nine October 31, 2018, $0.9 $2.7 Costs to fulfill a contract, which are incurred upon initiation of certain services contracts and are related to initial customer setup, are included in other current assets and long-term assets in the Company’s Condensed Consolidated Balance Sheets. At October 31, 2019 January 31, 2019 $1.4 $1.5 five three nine October 31, 2019, $0.1 $0.4 three nine October 31, 2018, $0.1 $0.4 Recoverability of these costs is subject to various business risks. Quarterly, the Company compares the carrying value of these assets with the undiscounted future cash flows expected to be generated by them to determine if there is impairment. If impaired, these assets are reduced to an estimated fair value on a discounted cash flow basis. No nine October 31, 2019 October 31, 2018. |
Note 3 - Computation of Net Inc
Note 3 - Computation of Net Income (Loss) Per Share | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3. COMPUTATION OF NET INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended October 31, October 31, 2019 2018 2019 2018 (in thousands, except per share data) (in thousands, except per share data) Net income (loss) $ 125 $ 2,982 $ (16,359 ) $ 5,492 Less: Dividends declared (1,426 ) (1,374 ) (4,187 ) (4,105 ) Undistributed net (loss) income $ (1,301 ) $ 1,608 $ (20,546 ) $ 1,387 Net income (loss) per share – Class A Common Stock Dividends declared $ 1,226 $ 1,178 $ 3,596 $ 3,518 Allocation of undistributed net (loss) income (1,119 ) 1,379 (17,641 ) 1,189 Net income (loss) attributable to Class A common stock $ 107 $ 2,557 $ (14,045 ) $ 4,707 Weighted average shares of Class A common stock outstanding— basic 16,918 16,358 16,586 16,235 Weighted average potential shares of Class A common stock 877 1,590 — 1,676 Weighted average shares of Class A common stock and potential common shares outstanding— diluted 17,795 17,948 16,586 17,911 Basic net income (loss) per Class A common share $ 0.01 $ 0.16 $ (0.85 ) $ 0.29 Diluted net income (loss) per Class A common share $ 0.01 $ 0.14 $ (0.85 ) $ 0.26 Net income (loss) per share – Class B Common Stock Dividends declared $ 200 $ 196 $ 591 $ 587 Allocation of undistributed net (loss) income (182 ) 229 (2,905 ) 198 Net income (loss) attributable to Class B common stock $ 18 $ 425 $ (2,314 ) $ 785 Weighted average shares of Class B common stock outstanding— basic 3,308 3,264 3,279 3,253 Weighted average potential shares of Class B common stock 90 169 — 176 Weighted average shares of Class B common stock and potential common shares outstanding— diluted 3,398 3,433 3,279 3,429 Basic net income (loss) per Class B common share $ 0.01 $ 0.13 $ (0.71 ) $ 0.24 Diluted net income (loss) per Class B common share $ 0.01 $ 0.12 $ (0.71 ) $ 0.23 Potential common shares consist of the shares issuable upon the release of restricted stock units (“RSUs”) and performance-based stock units (“PSUs”) and the exercise of stock appreciation rights (“SARs”). The Company’s unvested RSUs and PSUs, 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, 2019 2018 2019 2018 (in thousands) (in thousands) Class A 368 241 2,695 285 Class B — — 244 — |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 4. FAIR VALUE MEASUREMENTS When determining fair value, the Company uses a three not • Level 1 • Level 2 The following table sets forth the financial assets and liability, measured at fair value, as of October 31, 2019 January 31, 2019: Fair value measurement at reporting date using Quoted Prices Significant Significant (in thousands) Money market mutual funds as of October 31, 2019 $ 107,905 Money market mutual funds as of January 31, 2019 $ 107,855 Short-term investments as of October 31, 2019 $ - Short-term investments as of January 31, 2019 $ 1,200 Liability related to the interest rate swap as of October 31, 2019 $ (216 ) Asset related to the interest rate swap as of January 31, 2019 $ 136 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 $25.9 $31.6 October 31, 2019 January 31, 2019, 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, 2019. Derivative Instruments The Company entered into an interest rate swap in May 2012 one 7 The fair values of the derivative instrument at October 31, 2019 January 31, 2019 Liability / Asset Fair Value Balance Sheet October 31, January 31, Derivative instrument: Interest rate swap (Other liabilities) / Other assets, net $ (216 ) $ 136 Total $ (216 ) $ 136 The change in fair value of the interest rate swap recognized in the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income was $( 101,000 352,000 three nine October 31, 2019, $46,000 $198,000 three nine October 31, 2018, |
Note 5 - Capitalized Software C
Note 5 - Capitalized Software Costs | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Capitalized Software Costs [Text Block] | 5. CAPITALIZED SOFTWARE COSTS Capitalized software costs and accumulated amortization at October 31, 2019 January 31, 2019 October 31, 2019 January 31, 2019 (in thousands) Capitalized software costs: Capitalized software development costs $ 3,108 $ 2,314 Acquired software technology 135 135 3,243 2,449 Less accumulated amortization (1,334 ) (851 ) Capitalized software costs, net $ 1,909 $ 1,598 The Company’s capitalized software development costs relate to translations and localizations of QAD Adaptive Applications. Acquired software technology costs relate to acquired technology purchased during the second 2019. It is the Company’s policy to write off capitalized software development costs once fully amortized. Accordingly, during the first nine 2020, $0.2 Amortization of capitalized software costs was $0.2 $0.7 three nine October 31, 2019, $0.2 $0.4 three nine October 31, 2018, The following table summarizes the estimated amortization expense relating to the Company’s capitalized software costs as of October 31, 2019: Fiscal Years (in thousands) 2020 remaining $ 262 2021 893 2022 549 2023 191 Thereafter 14 $ 1,909 |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the nine October 31, 2019 Gross Carrying Amount Accumulated Impairment Goodwill, Net (in thousands) Balance at January 31, 2019 $ 28,031 $ (15,608 ) $ 12,423 Impact of foreign currency translation (32 ) - (32 ) Balance at October 31, 2019 $ 27,999 $ (15,608 ) $ 12,391 The Company performed its annual goodwill impairment review during the fourth 2019. November 30, 2018. no 2019. No nine October 31, 2019 Intangible Assets October 31, 2019 January 31, 2019 (in thousands) Amortizable intangible assets: Customer relationships $ 1,348 $ 1,348 Less accumulated amortization (318 ) (115 ) Amortizable intangible assets, net $ 1,030 $ 1,233 The Company’s intangible assets as of October 31, 2019 second third 2019. five Amortization of intangibles from acquisitions was $67,000 $200,000 third first nine 2020, $45,000 third nine October 31, 2018. October 31, 2019: Fiscal Years (in thousands) 2020 remaining $ 67 2021 270 2022 270 2023 270 Thereafter 153 $ 1,030 |
Note 7 - Debt
Note 7 - Debt | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. DEBT October 31, 2019 January 31, 2019 (in thousands) Note payable $ 12,991 $ 13,358 Less current maturities (498 ) (487 ) Less loan origination costs, net (27 ) (35 ) Long-term debt $ 12,466 $ 12,836 Note Payable Effective May 30, 2012, “2012 2012 $16.1 one 2.25%. 1.88% October 31, 2019. 2012 June 2022 2012 $16.1 4.31% 2012 2012 $88,100 one $11.7 October 31, 2019 $13.0 |
Note 8 - Leases
Note 8 - Leases | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 8. LEASES The Company leases certain office space, office equipment and autos with remaining lease terms from one twelve not one ten The Company treats a contract as a lease when the contract conveys the right to use a physically distinct asset for a period of time in exchange for consideration, the Company directs the use of the asset and the Company obtains substantially all the economic benefits of the asset. These leases are recorded as right-of-use (“ROU”) assets and lease obligation liabilities for leases with terms greater than 12 not February 1, 2019 The Company reviews the impairment of ROU assets consistent with the approach applied for the Company’s other long-lived assets. The Company reviews the recoverability of long-lived assets when events or changes in circumstances occur that indicate the carrying value of the asset may not The Company has applied the practical expedient available for lessees in which lease and non-lease components are accounted for as a single lease component for all asset classes. The Company also elected the practical expedient to exclude short-term leases (leases with original terms of 12 A majority of the Company’s leases are operating and lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Variable payments change due to facts or circumstances occurring after the commencement date, other than the passage of time, and do not not Supplemental balance sheet information related to leases was as follows (in thousands): October 31, 2019 Assets Operating $ 16,899 Finance 168 Total lease assets, net $ 17,067 Liabilities Current Operating $ 4,602 Finance 66 Noncurrent Operating 13,051 Finance 77 Total lease liabilities $ 17,796 The components of lease cost were as follows (in thousands): Three Months Ended Nine Months Ended October 31, 2019 October 31, 2019 Operating lease cost $ 1,495 $ 4,460 Finance lease cost 21 35 Variable lease cost 354 1,123 Short-term lease cost 44 184 Net lease cost $ 1,914 $ 5,802 Lease term and discount rate were as follows: October 31, 2019 Weighted-average remaining lease term (in years) All leases 5.6 Weighted-average discount rate All leases 6.14 % Supplemental disclosures of cash flow information related to leases were as follows (in thousands): Nine Months Ended October 31, 2019 Cash flows related to lease liabilities Operating cash flows related to operating leases $ (4,577 ) ) Financing cash flows related to finance leases (28 ) Total cash flows related to lease liabilities $ (4,605 ) Non-cash items Leased assets obtained in exchange for new operating lease liabilities $ 7,673 Leased assets obtained in exchange for new finance lease liabilities 200 Total non-cash items $ 7,873 Maturities of lease liabilities were as follows as of October 31, 2019 ( Operating Leases Within 1 year $ 5.6 2 years 4.0 3 years 2.9 4 years 2.3 5 years 2.0 Thereafter 4.5 Total lease payments $ 21.3 Less: Imputed interest (3.5 ) Present value of lease liabilities $ 17.8 As of January 31, 2019 840, five 2020 $ 5.6 2021 4.6 2022 2.8 2023 1.8 2024 1.5 Thereafter 2.8 Total $ 19.1 The Company is a lessor for certain office space owned by the Company and leased to others under non-cancelable leases with initial terms ranging from three one three one no no three nine October 31, 2019 $0.2 $0.7 |
Note 9 - Accumulated Other Comp
Note 9 - Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Accumulated Other Comprehensive Income (Loss) [Text Block] | 9. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss, net of taxes, were as follows: Foreign Currency Translation Adjustments (in thousands) Balance as of January 31, 2019 $ (7,661 ) Other comprehensive loss before reclassifications (278 ) Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive loss (278 ) Balance as of October 31, 2019 $ (7,939 ) |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10. INCOME TAXES In determining the quarterly provision for income taxes, the Company calculated income tax expense based on actual quarterly results in the third 2020, 2020 first nine 2020 The Company recorded income tax expense of $1.4 $0.6 third 2020 2019, 92% third 2020 17% third 2020 2020 2019 2019 $0.8 third 2020 second 2020. not The Company recorded income tax expense of $12.0 $3.3 first nine 2020 2019, 275% first nine 2020 37% first nine 2020 2019. $10.8 When calculating QAD’s income tax expense for the first nine 2020 2019, December 22, 2017. June 14, 2019 third 2020, not The Company has elected to treat the deferred taxes related to GILTI provisions as a current-period expense when incurred (the “period cost method”). The gross amount of unrecognized tax benefits was $1.2 October 31, 2019, $1 2013 11 Income Taxes (Topic 740 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, 2019, $0.1 The Company reviews its net deferred tax assets by entity on a quarterly basis to determine whether a valuation allowance is necessary based on the more-likely-than- not third 2020, A valuation allowance has been established for select foreign jurisdictions along with U.S. federal and state deferred tax assets. The following table discloses the Company’s valuation allowance by entity (in millions): Jurisdiction October 31, 2019 January 31, 2019 U.S. federal and state $ 29.0 $ 24.7 Irish Principal 11.2 - Brazil 5.4 5.2 Germany 2.7 2.9 Hong Kong 0.6 1.2 South Africa 0.2 - Belgium - 0.9 Total valuation allowance $ 49.1 $ 34.9 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 ● Netherlands for fiscal year ended January 31, 2016 ● Germany for fiscal years ended January 31, 2015, 2016 2017 During the fiscal year 2020, no ● Tennessee for fiscal years ended January 31, 2014, 2015, 2016 2017 ● India for fiscal year ended March 31, 2014 ● Switzerland for fiscal years ended January 31, 2014, 2015, 2016, 2017 2018 ● Thailand for fiscal year ended January 31, 2017 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 11. STOCKHOLDERS’ EQUITY Dividends The following table sets forth the dividends that were declared by the Company during the first nine 2020: Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount (in thousands) 9/4/2019 9/18/2019 9/25/2019 $ 0.072 $ 0.06 $ 1,426 6/24/2019 7/10/2019 7/17/2019 $ 0.072 $ 0.06 $ 1,387 4/9/2019 4/23/2019 5/3/2019 $ 0.072 $ 0.06 $ 1,374 |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 12. STOCK-BASED COMPENSATION The Company’s equity awards consist of RSUs, PSUs and SARs. For a description of the Company’s stock-based compensation plans, see Note 6 10 January 31, 2019. Performance Stock Units (“PSUs”) In June 2019, 2016 1/3 three 0% 200% no Stock-Based Compensation The following table sets forth reported stock-based compensation expense for the three nine October 31, 2019 2018: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Cost of subscription $ 84 $ 65 $ 226 $ 182 Cost of maintenance and other revenue 143 148 396 358 Cost of professional services 404 353 1,085 906 Sales and marketing 607 611 1,562 1,547 Research and development 492 442 1,360 1,170 General and administrative 1,174 529 3,767 3,455 Total stock-based compensation expense $ 2,904 $ 2,148 $ 8,396 $ 7,618 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, 2019: RSUs Weighted Average Grant Date Fair Value (in thousands) Outstanding at January 31, 2019 663 $ 36.64 Granted 261 39.74 Released (1) (256 ) 32.31 Forfeited (35 ) 37.90 Outstanding at October 31, 2019 633 $ 39.61 ( 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, 2019, 300 $11,000. nine October 31, 2019, 80,000 $3.4 Total unrecognized compensation cost related to RSUs was approximately $21.6 October 31, 2019. 2.9 PSU Information The estimated fair value of PSUs 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 PSUs for the nine October 31, 2019: PSUs Weighted Average Grant Date Fair Value (in thousands) Outstanding at January 31, 2019 — $ — Granted 93 39.82 Released — — Forfeited — — Outstanding at October 31, 2019 93 $ 39.82 Total unrecognized compensation cost related to PSUs was approximately $1.9 October 31, 2019. 1.7 SAR Information The following table summarizes the activity for outstanding SARs for the nine October 31, 2019: SARs (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2019 2,533 $ 20.81 Granted — — Exercised (1,028 ) 17.04 Expired — — Forfeited — — Outstanding at October 31, 2019 1,505 $ 23.39 3.2 $ 34,508 Vested and exercisable at October 31, 2019 1,220 $ 19.42 2.6 $ 31,855 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, 2019, October 31, 2019. nine October 31, 2019 $20.6 The number of SARs exercised includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. During the three October 31, 2019, 1,000 $66,000. nine October 31, 2019, 5,000 $0.2 At October 31, 2019, $3.0 2.3 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 13. 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 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 14 - Business Segment Info
Note 14 - Business Segment Information | 9 Months Ended |
Oct. 31, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 14. 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 606, not 280, Segment Reporting not one Subscription, license and maintenance revenues are generally assigned to the region where a majority of end users are 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, 2019 2018 2019 2018 (in thousands) (in thousands) Revenue: North America (1) $ 38,302 $ 39,870 $ 112,798 $ 119,183 EMEA 22,233 22,549 66,860 74,542 Asia Pacific 11,776 12,348 35,413 37,773 Latin America 5,496 4,810 17,149 18,812 $ 77,807 $ 79,577 $ 232,220 $ 250,310 ( 1 Sales into Canada accounted for 2% three nine October 31, 2019, 2% three nine October 31, 2018. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2019 | |
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 in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10 10 X. not 10 January 31, 2019. nine October 31, 2019 not January 31, 2020. The Company’s accounting policies are set forth in detail in Note 1 10 January 31, 2019 |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Assets Held for Sale During the second 2020, 12 $1.7 October 31, 2019. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Except as discussed below, there have been no nine October 31, 2019, Recent Accounting Pronouncements Adopted In February 2016, 2016 02, Leases (Topic 842 2016 02, February 1, 2019, 840, not The Company elected the package of practical expedients not not Adoption of the new standard resulted in the recording of a non-cash transitional adjustment to ROU lease assets and lease liabilities of approximately $13.1 $13.9 February 1, 2019. 2016 02 not Recent Accounting Pronouncements Not In August 2018, 2018 15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350 40 350 40, 2018 15 December 15, 2019, In January 2017, 2017 04, Intangibles—Goodwill and Other (Topic 350 ): Simplifying the Test for Goodwill Impairment, 2 zero 2 2017 04 February 1, 2020. not 2017 04 In June 2016, 2016 13, Financial Instruments-Credit Losses (Topic 326 2016 13 2016 13 December 15, 2019, first 2016 13 first 2021. |
Note 2 - Revenue (Tables)
Note 2 - Revenue (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) North America $ 38,302 $ 39,870 $ 112,798 $ 119,183 EMEA 22,233 22,549 66,860 74,542 Asia Pacific 11,776 12,348 35,413 37,773 Latin America 5,496 4,810 17,149 18,812 Total revenue $ 77,807 $ 79,577 $ 232,220 $ 250,310 Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Automotive $ 28,071 $ 31,035 $ 84,105 $ 102,760 Consumer products and food and beverage 11,244 12,732 35,351 40,049 High technology and industrial products 26,612 23,873 78,549 74,231 Life sciences and other 11,880 11,937 34,215 33,270 Total revenue $ 77,807 $ 79,577 $ 232,220 $ 250,310 |
Contract with Customer, Asset and Liability [Table Text Block] | October 31, 2019 January 31, 2019 (in thousands) Contract assets, short-term (in Prepaid expenses and other current assets, net) $ 3,215 $ 2,058 Contract assets, long-term (in Other assets, net) 589 - Total contract assets $ 3,804 $ 2,058 Deferred revenue, short-term $ 81,893 $ 115,253 Deferred revenue, long-term (in Other liabilities) 1,929 1,465 Total deferred revenue $ 83,822 $ 116,718 October 31, 2019 January 31, 2019 (in thousands) Deferred maintenance $ 47,125 $ 77,037 Deferred subscription 32,798 34,020 Deferred professional services 1,730 2,146 Deferred license 85 1,713 Deferred other revenue 155 337 Deferred revenues, current 81,893 115,253 Deferred revenues, non-current (in Other liabilities) 1,929 1,465 Total deferred revenues $ 83,822 $ 116,718 |
Note 3 - Computation of Net I_2
Note 3 - Computation of Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended October 31, October 31, 2019 2018 2019 2018 (in thousands, except per share data) (in thousands, except per share data) Net income (loss) $ 125 $ 2,982 $ (16,359 ) $ 5,492 Less: Dividends declared (1,426 ) (1,374 ) (4,187 ) (4,105 ) Undistributed net (loss) income $ (1,301 ) $ 1,608 $ (20,546 ) $ 1,387 Net income (loss) per share – Class A Common Stock Dividends declared $ 1,226 $ 1,178 $ 3,596 $ 3,518 Allocation of undistributed net (loss) income (1,119 ) 1,379 (17,641 ) 1,189 Net income (loss) attributable to Class A common stock $ 107 $ 2,557 $ (14,045 ) $ 4,707 Weighted average shares of Class A common stock outstanding— basic 16,918 16,358 16,586 16,235 Weighted average potential shares of Class A common stock 877 1,590 — 1,676 Weighted average shares of Class A common stock and potential common shares outstanding— diluted 17,795 17,948 16,586 17,911 Basic net income (loss) per Class A common share $ 0.01 $ 0.16 $ (0.85 ) $ 0.29 Diluted net income (loss) per Class A common share $ 0.01 $ 0.14 $ (0.85 ) $ 0.26 Net income (loss) per share – Class B Common Stock Dividends declared $ 200 $ 196 $ 591 $ 587 Allocation of undistributed net (loss) income (182 ) 229 (2,905 ) 198 Net income (loss) attributable to Class B common stock $ 18 $ 425 $ (2,314 ) $ 785 Weighted average shares of Class B common stock outstanding— basic 3,308 3,264 3,279 3,253 Weighted average potential shares of Class B common stock 90 169 — 176 Weighted average shares of Class B common stock and potential common shares outstanding— diluted 3,398 3,433 3,279 3,429 Basic net income (loss) per Class B common share $ 0.01 $ 0.13 $ (0.71 ) $ 0.24 Diluted net income (loss) per Class B common share $ 0.01 $ 0.12 $ (0.71 ) $ 0.23 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended Nine Months Ended October 31, October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Class A 368 241 2,695 285 Class B — — 244 — |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair value measurement at reporting date using Quoted Prices Significant Significant (in thousands) Money market mutual funds as of October 31, 2019 $ 107,905 Money market mutual funds as of January 31, 2019 $ 107,855 Short-term investments as of October 31, 2019 $ - Short-term investments as of January 31, 2019 $ 1,200 Liability related to the interest rate swap as of October 31, 2019 $ (216 ) Asset related to the interest rate swap as of January 31, 2019 $ 136 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Liability / Asset Fair Value Balance Sheet October 31, January 31, Derivative instrument: Interest rate swap (Other liabilities) / Other assets, net $ (216 ) $ 136 Total $ (216 ) $ 136 |
Note 5 - Capitalized Software_2
Note 5 - Capitalized Software Costs (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Capitalized Software Costs [Table Text Block] | October 31, 2019 January 31, 2019 (in thousands) Capitalized software costs: Capitalized software development costs $ 3,108 $ 2,314 Acquired software technology 135 135 3,243 2,449 Less accumulated amortization (1,334 ) (851 ) Capitalized software costs, net $ 1,909 $ 1,598 |
Schedule of Capitalized Software Costs Amortization Expense [Table Text Block] | Fiscal Years (in thousands) 2020 remaining $ 262 2021 893 2022 549 2023 191 Thereafter 14 $ 1,909 |
Note 6 - Goodwill and Intangi_2
Note 6 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount Accumulated Impairment Goodwill, Net (in thousands) Balance at January 31, 2019 $ 28,031 $ (15,608 ) $ 12,423 Impact of foreign currency translation (32 ) - (32 ) Balance at October 31, 2019 $ 27,999 $ (15,608 ) $ 12,391 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | October 31, 2019 January 31, 2019 (in thousands) Amortizable intangible assets: Customer relationships $ 1,348 $ 1,348 Less accumulated amortization (318 ) (115 ) Amortizable intangible assets, net $ 1,030 $ 1,233 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Years (in thousands) 2020 remaining $ 67 2021 270 2022 270 2023 270 Thereafter 153 $ 1,030 |
Note 7 - Debt (Tables)
Note 7 - Debt (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | October 31, 2019 January 31, 2019 (in thousands) Note payable $ 12,991 $ 13,358 Less current maturities (498 ) (487 ) Less loan origination costs, net (27 ) (35 ) Long-term debt $ 12,466 $ 12,836 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Lessee, Operating Lease, Assets and Liabilities [Table Text Block] | October 31, 2019 Assets Operating $ 16,899 Finance 168 Total lease assets, net $ 17,067 Liabilities Current Operating $ 4,602 Finance 66 Noncurrent Operating 13,051 Finance 77 Total lease liabilities $ 17,796 |
Lease, Cost [Table Text Block] | Three Months Ended Nine Months Ended October 31, 2019 October 31, 2019 Operating lease cost $ 1,495 $ 4,460 Finance lease cost 21 35 Variable lease cost 354 1,123 Short-term lease cost 44 184 Net lease cost $ 1,914 $ 5,802 |
Lessee, Weighted Average Lease Term and Discount Rate [Table Text Block] | October 31, 2019 Weighted-average remaining lease term (in years) All leases 5.6 Weighted-average discount rate All leases 6.14 % |
Lessee, Operating Leases, Supplemental Cash Flow Disclosure [Table Text Block] | Nine Months Ended October 31, 2019 Cash flows related to lease liabilities Operating cash flows related to operating leases $ (4,577 ) ) Financing cash flows related to finance leases (28 ) Total cash flows related to lease liabilities $ (4,605 ) Non-cash items Leased assets obtained in exchange for new operating lease liabilities $ 7,673 Leased assets obtained in exchange for new finance lease liabilities 200 Total non-cash items $ 7,873 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Operating Leases Within 1 year $ 5.6 2 years 4.0 3 years 2.9 4 years 2.3 5 years 2.0 Thereafter 4.5 Total lease payments $ 21.3 Less: Imputed interest (3.5 ) Present value of lease liabilities $ 17.8 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2020 $ 5.6 2021 4.6 2022 2.8 2023 1.8 2024 1.5 Thereafter 2.8 Total $ 19.1 |
Note 9 - Accumulated Other Co_2
Note 9 - Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments (in thousands) Balance as of January 31, 2019 $ (7,661 ) Other comprehensive loss before reclassifications (278 ) Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive loss (278 ) Balance as of October 31, 2019 $ (7,939 ) |
Note 10 - Income Taxes (Tables)
Note 10 - Income Taxes (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Jurisdiction October 31, 2019 January 31, 2019 U.S. federal and state $ 29.0 $ 24.7 Irish Principal 11.2 - Brazil 5.4 5.2 Germany 2.7 2.9 Hong Kong 0.6 1.2 South Africa 0.2 - Belgium - 0.9 Total valuation allowance $ 49.1 $ 34.9 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Dividends Declared [Table Text Block] | Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount (in thousands) 9/4/2019 9/18/2019 9/25/2019 $ 0.072 $ 0.06 $ 1,426 6/24/2019 7/10/2019 7/17/2019 $ 0.072 $ 0.06 $ 1,387 4/9/2019 4/23/2019 5/3/2019 $ 0.072 $ 0.06 $ 1,374 |
Note 12 - Stock-based Compens_2
Note 12 - Stock-based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Cost of subscription $ 84 $ 65 $ 226 $ 182 Cost of maintenance and other revenue 143 148 396 358 Cost of professional services 404 353 1,085 906 Sales and marketing 607 611 1,562 1,547 Research and development 492 442 1,360 1,170 General and administrative 1,174 529 3,767 3,455 Total stock-based compensation expense $ 2,904 $ 2,148 $ 8,396 $ 7,618 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | RSUs Weighted Average Grant Date Fair Value (in thousands) Outstanding at January 31, 2019 663 $ 36.64 Granted 261 39.74 Released (1) (256 ) 32.31 Forfeited (35 ) 37.90 Outstanding at October 31, 2019 633 $ 39.61 PSUs Weighted Average Grant Date Fair Value (in thousands) Outstanding at January 31, 2019 — $ — Granted 93 39.82 Released — — Forfeited — — Outstanding at October 31, 2019 93 $ 39.82 |
Share-based Payment Arrangement, Option and Stock Appreciation Rights, 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, 2019 2,533 $ 20.81 Granted — — Exercised (1,028 ) 17.04 Expired — — Forfeited — — Outstanding at October 31, 2019 1,505 $ 23.39 3.2 $ 34,508 Vested and exercisable at October 31, 2019 1,220 $ 19.42 2.6 $ 31,855 |
Note 14 - Business Segment In_2
Note 14 - Business Segment Information (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
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, 2019 2018 2019 2018 (in thousands) (in thousands) Revenue: North America (1) $ 38,302 $ 39,870 $ 112,798 $ 119,183 EMEA 22,233 22,549 66,860 74,542 Asia Pacific 11,776 12,348 35,413 37,773 Latin America 5,496 4,810 17,149 18,812 $ 77,807 $ 79,577 $ 232,220 $ 250,310 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands | Oct. 31, 2019 | Feb. 01, 2019 |
Operating Lease, Right-of-Use Asset | $ 16,899 | |
Operating Lease, Liability, Total | 17,800 | |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Right-of-Use Asset | $ 13,100 | |
Operating Lease, Liability, Total | $ 13,900 | |
Other Current Assets [Member] | Building Held for Sale [Member] | ||
Assets Held-for-sale, Not Part of Disposal Group, Total | $ 1,700 |
Note 2 - Revenue 1 (Details Tex
Note 2 - Revenue 1 (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Jan. 31, 2019 | |
Contract with Customer, Liability, Revenue Recognized | $ 105,000 | ||||
Revenue, Remaining Performance Obligation, Amount | $ 232,300 | 232,300 | |||
Capitalized Contract Cost, Amortization | 3,301 | $ 3,107 | |||
Capitalized Contract Cost, Impairment Loss | $ 0 | 0 | |||
Direct Costs of Obtaining Contract [Member] | |||||
Capitalized Contract Cost, Amortization Period | 5 years | 5 years | |||
Capitalized Contract Cost, Net, Total | $ 11,200 | $ 11,200 | $ 11,000 | ||
Direct Costs of Obtaining Contract [Member] | Selling and Marketing Expense [Member] | |||||
Capitalized Contract Cost, Amortization | $ 1,000 | $ 900 | $ 2,900 | 2,700 | |
Costs to Fulfill Contract [Member] | |||||
Capitalized Contract Cost, Amortization Period | 5 years | 5 years | |||
Capitalized Contract Cost, Net, Total | $ 1,400 | $ 1,400 | $ 1,500 | ||
Costs to Fulfill Contract [Member] | Cost of Sales [Member] | |||||
Capitalized Contract Cost, Amortization | $ 100 | $ 100 | $ 400 | $ 400 |
Note 2 - Revenue 2 (Details Tex
Note 2 - Revenue 2 (Details Textual) $ in Thousands | Oct. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 232,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-01 | |
Revenue, Remaining Performance Obligation, Amount | $ 144,200 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Note 2 - Revenue - Disaggregati
Note 2 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Revenues | $ 77,807 | $ 79,577 | $ 232,220 | $ 250,310 |
Automotive [Member] | ||||
Revenues | 28,071 | 31,035 | 84,105 | 102,760 |
Consumer Products and Food and Beverage [Member] | ||||
Revenues | 11,244 | 12,732 | 35,351 | 40,049 |
High Technology and Industrial Products [Member] | ||||
Revenues | 26,612 | 23,873 | 78,549 | 74,231 |
Life Sciences and Other [Member] | ||||
Revenues | 11,880 | 11,937 | 34,215 | 33,270 |
North America [Member] | ||||
Revenues | 38,302 | 39,870 | 112,798 | 119,183 |
EMEA [Member] | ||||
Revenues | 22,233 | 22,549 | 66,860 | 74,542 |
Asia Pacific [Member] | ||||
Revenues | 11,776 | 12,348 | 35,413 | 37,773 |
Latin America [Member] | ||||
Revenues | $ 5,496 | $ 4,810 | $ 17,149 | $ 18,812 |
Note 2 - Revenue - Contract Bal
Note 2 - Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Contract assets, short-term (in Prepaid expenses and other current assets, net) | $ 3,215 | $ 2,058 |
Contract assets, long-term (in Other assets, net) | 589 | |
Total contract assets | 3,804 | 2,058 |
Deferred revenue, short-term | 81,893 | 115,253 |
Deferred revenue, long-term (in Other liabilities) | 1,929 | 1,465 |
Total deferred revenue | 83,822 | 116,718 |
Maintenance [Member] | ||
Deferred revenue, short-term | 47,125 | 77,037 |
Subscription and Circulation [Member] | ||
Deferred revenue, short-term | 32,798 | 34,020 |
Professional Services [Member] | ||
Deferred revenue, short-term | 1,730 | 2,146 |
License [Member] | ||
Deferred revenue, short-term | 85 | 1,713 |
Product and Service, Other [Member] | ||
Deferred revenue, short-term | $ 155 | $ 337 |
Note 3 - Computation of Net I_3
Note 3 - Computation of Net Income (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 | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Net (loss) income | $ 125 | $ 2,982 | $ (16,359) | $ 5,492 |
Dividends declared | (1,426) | (1,374) | (4,187) | (4,105) |
Undistributed net (loss) income | (1,301) | 1,608 | (20,546) | 1,387 |
Net (loss) income per share | ||||
Dividends declared | 1,426 | 1,374 | 4,187 | 4,105 |
Undistributed net (loss) income | (1,301) | 1,608 | (20,546) | 1,387 |
Net (loss) income | 125 | 2,982 | (16,359) | 5,492 |
Common Class A [Member] | ||||
Net (loss) income | 107 | 2,557 | (14,045) | 4,707 |
Dividends declared | (1,226) | (1,178) | (3,596) | (3,518) |
Undistributed net (loss) income | (1,119) | 1,379 | (17,641) | 1,189 |
Net (loss) income per share | ||||
Dividends declared | 1,226 | 1,178 | 3,596 | 3,518 |
Undistributed net (loss) income | (1,119) | 1,379 | (17,641) | 1,189 |
Net (loss) income | $ 107 | $ 2,557 | $ (14,045) | $ 4,707 |
Weighted average shares of common stock outstanding—basic (in shares) | 16,918 | 16,358 | 16,586 | 16,235 |
Weighted average potential shares of common stock (in shares) | 877 | 1,590 | 1,676 | |
Weighted average shares of common stock and potential common shares outstanding—diluted (in shares) | 17,795 | 17,948 | 16,586 | 17,911 |
Basic net (loss) income per common share (in dollars per share) | $ 0.01 | $ 0.16 | $ (0.85) | $ 0.29 |
Diluted net (loss) income per common share (in dollars per share) | $ 0.01 | $ 0.14 | $ (0.85) | $ 0.26 |
Common Class B [Member] | ||||
Net (loss) income | $ 18 | $ 425 | $ (2,314) | $ 785 |
Dividends declared | (200) | (196) | (591) | (587) |
Undistributed net (loss) income | (182) | 229 | (2,905) | 198 |
Net (loss) income per share | ||||
Dividends declared | 200 | 196 | 591 | 587 |
Undistributed net (loss) income | (182) | 229 | (2,905) | 198 |
Net (loss) income | $ 18 | $ 425 | $ (2,314) | $ 785 |
Weighted average shares of common stock outstanding—basic (in shares) | 3,308 | 3,264 | 3,279 | 3,253 |
Weighted average potential shares of common stock (in shares) | 90 | 169 | 176 | |
Weighted average shares of common stock and potential common shares outstanding—diluted (in shares) | 3,398 | 3,433 | 3,279 | 3,429 |
Basic net (loss) income per common share (in dollars per share) | $ 0.01 | $ 0.13 | $ (0.71) | $ 0.24 |
Diluted net (loss) income per common share (in dollars per share) | $ 0.01 | $ 0.12 | $ (0.71) | $ 0.23 |
Note 3 - Computation of Net I_4
Note 3 - Computation of Net Income (Loss) Per Share - Anti-dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Common Class A [Member] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 368 | 241 | 2,695 | 285 |
Common Class B [Member] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 244 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 133,815,000 | $ 138,080,000 | $ 133,815,000 | $ 138,080,000 | $ 139,413,000 | $ 147,023,000 |
Interest Rate Swap [Member] | ||||||
Derivative, Gain (Loss) on Derivative, Net, Total | (101,000) | $ 46,000 | (352,000) | $ 198,000 | ||
Reported Value Measurement [Member] | ||||||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 25,900,000 | $ 25,900,000 | $ 31,600,000 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Short-term investments | $ 1,200 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | 107,905 | 107,855 |
Short-term investments | 1,200 | |
Liability related to the interest rate swap | ||
Asset related to the interest rate swap | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Money market mutual funds | ||
Short-term investments | ||
Liability related to the interest rate swap | $ (216) | |
Asset related to the interest rate swap | $ 136 |
Note 4 - Fair Value Measureme_5
Note 4 - Fair Value Measurements - Fair Values of the Derivative Instrument (Details) - Fair Value, Inputs, Level 2 [Member] - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Liability related to the interest rate swap | $ (216) | |
Asset related to the interest rate swap | $ 136 | |
Interest Rate Swap [Member] | Other Noncurrent Assets [Member] | ||
Liability related to the interest rate swap | $ (216) | |
Interest Rate Swap [Member] | Other Noncurrent Liabilities [Member] | ||
Asset related to the interest rate swap | $ 136 |
Note 5 - Capitalized Software_3
Note 5 - Capitalized Software Costs (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Capitalized Computer Software Write-Downs | $ 0.2 | |||
Capitalized Computer Software, Amortization | $ 0.2 | $ 0.2 | $ 0.7 | $ 0.4 |
Note 5 - Capitalized Software_4
Note 5 - Capitalized Software Costs - Capitalized Software Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Capitalized software development costs | $ 3,108 | $ 2,314 |
Acquired software technology | 135 | 135 |
Capitalized software costs, Gross | 3,243 | 2,449 |
Less accumulated amortization | (1,334) | (851) |
Capitalized software costs, net | $ 1,909 | $ 1,598 |
Note 5 - Capitalized Software_5
Note 5 - Capitalized Software Costs - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
2020 remaining | $ 262 | |
2021 | 893 | |
2022 | 549 | |
2023 | 191 | |
Thereafter | 14 | |
Total | $ 1,909 | $ 1,598 |
Note 6 - Goodwill and Intangi_3
Note 6 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Amortization of Intangible Assets, Total | $ 67,000 | $ 45,000 | $ 200,000 | $ 45,000 |
Note 6 - Goodwill and Intangi_4
Note 6 - Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2019USD ($) | |
Beginning balance, gross | $ 28,031 |
Impact of foreign currency translation, gross | (32) |
Ending balance, gross | 27,999 |
Accumulated impairment | (15,608) |
Impact of foreign currency translation, accumulated impairment | |
Accumulated impairment | (15,608) |
Beginning balance, net | 12,423 |
Ending balance, net | $ 12,391 |
Note 6 - Goodwill and Intangi_5
Note 6 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Customer relationships | $ 1,348 | $ 1,348 |
Less accumulated amortization | (318) | (115) |
Net amortizable intangible assets | $ 1,030 | $ 1,233 |
Note 6 - Goodwill and Intangi_6
Note 6 - Goodwill and Intangible Assets - Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
2020 remaining | $ 67 | |
2021 | 270 | |
2022 | 270 | |
2023 | 270 | |
Thereafter | 153 | |
Net amortizable intangible assets | $ 1,030 | $ 1,233 |
Note 7 - Debt (Details Textual)
Note 7 - Debt (Details Textual) - Rabobank N.A [Member] - USD ($) | May 30, 2012 | Oct. 31, 2019 |
2012 Mortgage [Member] | Quad Ortega Hill LLC [Member] | ||
Debt Instrument, Face Amount | $ 16,100,000 | |
Debt Instrument, Periodic Payment, Total | 88,100 | |
Final Principal Payment | 11,700,000 | |
2012 Mortgage [Member] | Quad Ortega Hill LLC [Member] | Swap [Member] | ||
Derivative Liability, Notional Amount | $ 16,100,000 | |
Derivative, Fixed Interest Rate | 4.31% | |
2012 Mortgage [Member] | Quad Ortega Hill LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | 1.88% |
Unsecured Credit Agreement [Member] | ||
Loans Payable to Bank, Total | $ 13,000,000 |
Note 7 - Debt - Summary of Debt
Note 7 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Note payable | $ 12,991 | $ 13,358 |
Less current maturities | (498) | (487) |
Less loan origination costs, net | (27) | (35) |
Long-term debt | $ 12,466 | $ 12,836 |
Note 8 - Leases (Details Textua
Note 8 - Leases (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2019USD ($) | Oct. 31, 2019USD ($) | |
Operating Lease, Lease Income, Total | $ 0.2 | $ 0.7 |
Minimum [Member] | ||
Lessee, Operating Lease, Renewal Term | 1 year | 1 year |
Lessor, Operating Lease, Renewal Term | 3 years | 3 years |
Maximum [Member] | ||
Lessee, Operating Lease, Renewal Term | 10 years | 10 years |
Lessor, Operating Lease, Renewal Term | 1 year | 1 year |
Office Space, Equipment, and Automobiles [Member] | Minimum [Member] | ||
Operating Lease, Remaining Term | 1 year | |
Office Space, Equipment, and Automobiles [Member] | Maximum [Member] | ||
Operating Lease, Remaining Term | 12 years | |
Assets Leased to Others [Member] | Minimum [Member] | ||
Lessor, Operating Lease, Term of Contract | 3 years | 3 years |
Assets Leased to Others [Member] | Maximum [Member] | ||
Lessor, Operating Lease, Term of Contract | 1 year | 1 year |
Note 8 - Leases - Balance Sheet
Note 8 - Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Operating Lease, Right-of-Use Asset | $ 16,899 | |
Finance | 168 | |
Total lease assets, net | 17,067 | |
Operating | 4,602 | |
Finance | 66 | |
Operating | 13,051 | |
Finance | 77 | |
Total lease liabilities | $ 17,796 |
Note 8 - Leases - Lease Cost (D
Note 8 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 31, 2019 | Oct. 31, 2019 | |
Operating lease cost | $ 1,495 | $ 4,460 |
Finance lease cost | 21 | 35 |
Variable lease cost | 354 | 1,123 |
Short-term lease cost | 44 | 184 |
Net lease cost | $ 1,914 | $ 5,802 |
Note 8 - Leases - Lease Term an
Note 8 - Leases - Lease Term and Discount Rate (Details) | Oct. 31, 2019 |
Weighted-average remaining lease term (Year) | 5 years 219 days |
Weighted-average discount rate | 6.14% |
Note 8 - Leases - Supplemental
Note 8 - Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2019USD ($) | |
Operating cash flows related to operating leases | $ (4,577) |
Financing cash flows related to finance leases | (28) |
Total cash flows related to lease liabilities | (4,605) |
Leased assets obtained in exchange for new operating lease liabilities | 7,673 |
Leased assets obtained in exchange for new finance lease liabilities | 200 |
Total non-cash items | $ 7,873 |
Note 8 - Leases - Maturities of
Note 8 - Leases - Maturities of Lease Liabilities (Details) $ in Millions | Oct. 31, 2019USD ($) |
Within 1 year | $ 5.6 |
2 years | 4 |
3 years | 2.9 |
4 years | 2.3 |
5 years | 2 |
Thereafter | 4.5 |
Total lease payments | 21.3 |
Less: Imputed interest | (3.5) |
Present value of lease liabilities | $ 17.8 |
Note 8 - Leases - Future Minimu
Note 8 - Leases - Future Minimum Lease Payments (Details) $ in Millions | Jan. 31, 2019USD ($) |
2020 | $ 5.6 |
2021 | 4.6 |
2022 | 2.8 |
2023 | 1.8 |
2024 | 1.5 |
Thereafter | 2.8 |
Total | $ 19.1 |
Note 9 - Accumulated Other Co_3
Note 9 - Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2019USD ($) | |
Balance | $ 133,247 |
Balance | 117,074 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | (7,661) |
Other comprehensive loss before reclassifications | (278) |
Amounts reclassified from accumulated other comprehensive loss | |
Net current period other comprehensive loss | (278) |
Balance | $ (7,939) |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Expense (Benefit), Total | $ 1,404 | $ 597 | $ 11,991 | $ 3,251 |
Effective Income Tax Rate Reconciliation, Percent, Total | 92.00% | 17.00% | (275.00%) | 37.00% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 800 | $ 10,800 | ||
Unrecognized Tax Benefits, Ending Balance | $ 1,200 | 1,200 | ||
Unrecognized Tax Benefits, Period Increase (Decrease), Total | 1,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 100 | $ 100 | ||
Foreign Tax Authority [Member] | Ministry of Finance, India [Member] | ||||
Income Tax Examination, Year under Examination | 2010 2013 2018 | |||
Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | ||||
Income Tax Examination, Year under Examination | 2015 2016 2017 | |||
Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | ||||
Income Tax Examination, Year under Examination | 2016 |
Note 10 - Income Taxes - Valuat
Note 10 - Income Taxes - Valuation Allowance (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Jan. 31, 2019 |
Valuation Allowance | $ 49.1 | $ 34.9 |
Federal and State Tax Authority [Member] | ||
Valuation Allowance | 29 | 24.7 |
Foreign Tax Authority [Member] | Revenue Commissioners, Ireland [Member] | ||
Valuation Allowance | 11.2 | |
Foreign Tax Authority [Member] | Secretariat of the Federal Revenue Bureau of Brazil [Member] | ||
Valuation Allowance | 5.4 | 5.2 |
Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | ||
Valuation Allowance | 2.7 | 2.9 |
Foreign Tax Authority [Member] | Inland Revenue, Hong Kong [Member] | ||
Valuation Allowance | 0.6 | 1.2 |
Foreign Tax Authority [Member] | Income Tax Authority, South Africa [Member] | ||
Valuation Allowance | 0.2 | |
Foreign Tax Authority [Member] | Administration of the Treasury, Belgium [Member] | ||
Valuation Allowance | $ 0.9 |
Note 11 - Stockholders' Equit_2
Note 11 - Stockholders' Equity - Dividends (Details) - USD ($) | Sep. 04, 2019 | Jun. 24, 2019 | Apr. 09, 2019 | Oct. 31, 2019 | Oct. 31, 2018 |
Record Date | Sep. 18, 2019 | Jul. 10, 2019 | Apr. 23, 2019 | ||
Payable | Sep. 25, 2019 | Jul. 17, 2019 | May 3, 2019 | ||
Amount | $ 1,426 | $ 1,387,000 | $ 1,374,000 | $ 4,187,000 | $ 4,105,000 |
Common Class A [Member] | |||||
Dividend Per Share (in dollars per share) | $ 0.072 | $ 0.072 | $ 0.072 | ||
Common Class B [Member] | |||||
Dividend Per Share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 |
Note 12 - Stock-based Compens_3
Note 12 - Stock-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Jun. 30, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | |
Performance Shares [Member] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,900,000 | $ 1,900,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 255 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 300 | 80,000 | |
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 11,000 | $ 3,400,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 21,600,000 | $ 21,600,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 328 days | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 1,000 | 5,000 | |
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 66,000 | $ 200,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 3,000,000 | $ 3,000,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 109 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 20,600,000 | ||
Minimum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Target Award Vesting Rights, Percentage | 0.00% | ||
Maximum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Target Award Vesting Rights, Percentage | 200.00% |
Note 12 - Stock-based Compens_4
Note 12 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Allocated stock-based compensation expense | $ 2,904 | $ 2,148 | $ 8,396 | $ 7,618 |
Cost of Subscription [Member] | ||||
Allocated stock-based compensation expense | 84 | 65 | 226 | 182 |
Cost of Maintenance and Other Revenue [Member] | ||||
Allocated stock-based compensation expense | 143 | 148 | 396 | 358 |
Cost of Professional Services [Member] | ||||
Allocated stock-based compensation expense | 404 | 353 | 1,085 | 906 |
Selling and Marketing Expense [Member] | ||||
Allocated stock-based compensation expense | 607 | 611 | 1,562 | 1,547 |
Research and Development Expense [Member] | ||||
Allocated stock-based compensation expense | 492 | 442 | 1,360 | 1,170 |
General and Administrative Expense [Member] | ||||
Allocated stock-based compensation expense | $ 1,174 | $ 529 | $ 3,767 | $ 3,455 |
Note 12 - Stock-based Compens_5
Note 12 - Stock-based Compensation - RSUs Activity (Details) shares in Thousands | 9 Months Ended | |
Oct. 31, 2019$ / sharesshares | ||
Restricted Stock Units (RSUs) [Member] | ||
Outstanding (in shares) | 663 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 36.64 | |
Granted (in shares) | 261 | |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 39.74 | |
Released (in shares) | (256) | [1] |
Released, weighted average grant date fair value (in dollars per share) | $ / shares | $ 32.31 | [1] |
Forfeited (in shares) | (35) | |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 37.90 | |
Outstanding (in shares) | 633 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 39.61 | |
Granted (in shares) | 261 | |
Performance Shares [Member] | ||
Outstanding (in shares) | ||
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | ||
Granted (in shares) | 93 | |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 39.82 | |
Released (in shares) | ||
Released, weighted average grant date fair value (in dollars per share) | $ / shares | ||
Forfeited (in shares) | ||
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | ||
Outstanding (in shares) | 93 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 39.82 | |
Granted (in shares) | 93 | |
[1] | The number of RSUs released includes shares withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. |
Note 12 - Stock-based Compens_6
Note 12 - Stock-based Compensation - SARs Activity (Details) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Oct. 31, 2019USD ($)$ / sharesshares | |
Outstanding (in shares) | shares | 2,533 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 20.81 |
Granted (in shares) | shares | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | |
Exercised (in shares) | shares | (1,028) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 17.04 |
Expired (in shares) | shares | |
Expired, weighted average exercise price (in dollars per share) | $ / shares | |
Forfeited (in shares) | shares | |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | |
Outstanding (in shares) | shares | 1,505 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 23.39 |
Outstanding, weighted average remaining contractual term (Year) | 3 years 73 days |
Outstanding, aggregate intrinsic value | $ | $ 34,508 |
Vested and exercisable at October 31, 2019 (in shares) | shares | 1,220 |
Vested and exercisable at October 31, 2019 (in dollars per share) | $ / shares | $ 19.42 |
Vested and exercisable, weighted average remaining contractual term (Year) | 2 years 219 days |
Vested and exercisable, aggregate intrinsic value | $ | $ 31,855 |
Note 14 - Business Segment In_3
Note 14 - Business Segment Information (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
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 14 - Business Segment In_4
Note 14 - Business Segment Information - Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Revenues | $ 77,807 | $ 79,577 | $ 232,220 | $ 250,310 | |
North America [Member] | |||||
Revenues | 38,302 | 39,870 | 112,798 | 119,183 | |
EMEA [Member] | |||||
Revenues | 22,233 | 22,549 | 66,860 | 74,542 | |
Asia Pacific [Member] | |||||
Revenues | 11,776 | 12,348 | 35,413 | 37,773 | |
Latin America [Member] | |||||
Revenues | 5,496 | 4,810 | 17,149 | 18,812 | |
Reportable Geographical Components [Member] | North America [Member] | |||||
Revenues | [1] | 38,302 | 39,870 | 112,798 | 119,183 |
Reportable Geographical Components [Member] | EMEA [Member] | |||||
Revenues | 22,233 | 22,549 | 66,860 | 74,542 | |
Reportable Geographical Components [Member] | Asia Pacific [Member] | |||||
Revenues | 11,776 | 12,348 | 35,413 | 37,773 | |
Reportable Geographical Components [Member] | Latin America [Member] | |||||
Revenues | $ 5,496 | $ 4,810 | $ 17,149 | $ 18,812 | |
[1] | Sales into Canada accounted for 2% of North America total revenue in the three and nine months ended October 31, 2019, and for 2% of North America total revenue in the three and nine months ended October 31, 2018. |