OneSpan (OSPN) 10-Q 5 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 01, 2020
Document And Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	OneSpan Inc.
Entity File Number	000-24389
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-4169320
Entity Address, Address Line One	121 West Wacker Drive, Suite 2050
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60601
City Area Code	312
Local Phone Number	766-4001
Title of 12(b) Security	Common Shares
Trading Symbol	OSPN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,634,029
Entity Central Index Key	0001044777
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash and equivalents	$ 85,931	$ 84,282
Short term investments	26,811	25,511
Accounts receivable, net of allowances of $3,837 in 2020 and $2,524 in 2019	54,475	62,405
Inventories, net	14,029	19,819
Prepaid expenses	6,439	6,198
Contract assets	6,609	5,240
Other current assets	7,831	6,346
Total current assets	202,125	209,801
Property and equipment, net	12,060	11,454
Operating lease right-of-use assets	11,508	10,580
Goodwill	94,159	94,612
Intangible assets, net of accumulated amortization	28,743	36,209
Deferred income taxes	8,158	7,863
Contract assets - non-current	2,329	3,355
Other assets	10,451	8,668
Total assets	369,533	382,542
Current liabilities
Accounts payable	5,300	10,835
Deferred revenue	36,607	30,338
Accrued wages and payroll taxes	12,631	15,415
Short-term income taxes payable	2,459	7,410
Other accrued expenses	8,292	8,786
Deferred compensation	1,350	1,028
Total current liabilities	66,639	73,812
Long-term deferred revenue	12,644	15,259
Long-term lease liability	12,523	11,299
Other long-term liabilities	8,227	8,297
Long-term income taxes payable	5,905	6,958
Deferred income taxes	4,379	4,623
Total liabilities	110,317	120,248
Stockholders' equity
Preferred stock: 500 shares authorized, none issued and outstanding at December 31, 2020 and 2019
Common stock: $.001 par value per share, 75,000 shares authorized; 40,356 and 40,207 issued and outstanding at September 30, 2020 and December 31, 2019, respectively	40	40
Additional paid-in capital	97,378	96,109
Accumulated income	175,488	179,440
Accumulated other comprehensive loss	(13,690)	(13,295)
Total stockholders' equity	259,216	262,294
Total liabilities and stockholders' equity	$ 369,533	$ 382,542

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts	$ 3,837	$ 2,524
Preferred stock, shares authorized	500	500
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	40,356	40,207
Common stock, shares outstanding	40,356	40,207

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue
Total revenue	$ 51,439	$ 79,691	$ 162,763	$ 182,953
Cost of goods sold
Total cost of goods sold	15,478	26,669	49,773	60,588
Gross profit	35,961	53,022	112,990	122,365
Operating costs
Sales and marketing	14,576	14,156	44,129	44,579
Research and development	10,643	9,956	31,178	32,428
General and administrative	10,737	9,490	33,851	29,540
Amortization of intangible assets	2,360	2,335	7,049	7,051
Total operating costs	38,316	35,937	116,207	113,598
Operating income (loss)	(2,355)	17,085	(3,217)	8,767
Interest income, net	56	228	389	432
Other income (expense), net	716	(1,611)	887	(1,711)
Income (loss) before income taxes	(1,583)	15,702	(1,941)	7,488
Provision for income taxes	95	3,855	1,758	4,208
Net income (loss)	$ (1,678)	$ 11,847	$ (3,699)	$ 3,280
Net income (loss) per share
Basic (in dollars per share)	$ (0.04)	$ 0.30	$ (0.09)	$ 0.08
Diluted (in dollars per share)	$ (0.04)	$ 0.30	$ (0.09)	$ 0.08
Weighted average common shares outstanding
Basic (in shares)	40,033	40,062	40,050	40,037
Diluted (in shares)	40,033	40,129	40,050	40,099
Product and license
Revenue
Total revenue	$ 30,249	$ 61,215	$ 103,893	$ 132,675
Cost of goods sold
Total cost of goods sold	10,064	22,199	33,378	46,966
Services and other
Revenue
Total revenue	21,190	18,476	58,870	50,278
Cost of goods sold
Total cost of goods sold	$ 5,414	$ 4,470	$ 16,395	$ 13,622

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net income (loss)	$ (1,678)	$ 11,847	$ (3,699)	$ 3,280
Other comprehensive loss
Cumulative translation adjustment, net of tax	3,455	(3,022)	(377)	(3,450)
Pension adjustment, net of tax	(6)	(12)	(18)	(40)
Comprehensive income (loss)	$ 1,771	$ 8,813	$ (4,094)	$ (210)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Income	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2018	$ 40	$ 93,310	$ 171,576	$ (13,287)	$ 251,639
Balance (in shares) at Dec. 31, 2018	40,225
Change in Stockholders' Equity
Net income (loss)			(6,056)		(6,056)
Foreign currency translation adjustment, net of tax				870	870
Restricted stock awards		552			552
Restricted stock awards, Shares	(10)
Tax payments for stock issuances		(218)			(218)
Pension adjustment, net of tax				(16)	(16)
Balance at Mar. 31, 2019	$ 40	93,644	165,520	(12,433)	246,771
Balance (in shares) at Mar. 31, 2019	40,215
Balance at Dec. 31, 2018	$ 40	93,310	171,576	(13,287)	251,639
Balance (in shares) at Dec. 31, 2018	40,225
Change in Stockholders' Equity
Net income (loss)					3,280
Balance at Sep. 30, 2019	$ 40	94,694	174,856	(16,777)	252,813
Balance (in shares) at Sep. 30, 2019	40,193
Balance at Mar. 31, 2019	$ 40	93,644	165,520	(12,433)	246,771
Balance (in shares) at Mar. 31, 2019	40,215
Change in Stockholders' Equity
Net income (loss)			(2,511)		(2,511)
Foreign currency translation adjustment, net of tax				(1,298)	(1,298)
Restricted stock awards		677			677
Restricted stock awards, Shares	117
Tax payments for stock issuances		(49)			(49)
Tax payments for stock issuances, Shares	(4)
Pension adjustment, net of tax				(12)	(12)
Balance at Jun. 30, 2019	$ 40	94,272	163,009	(13,743)	243,578
Balance (in shares) at Jun. 30, 2019	40,328
Change in Stockholders' Equity
Net income (loss)			11,847		11,847
Foreign currency translation adjustment, net of tax				(3,022)	(3,022)
Restricted stock awards		(549)			(549)
Restricted stock awards, Shares	10
Tax payments for stock issuances		(127)			(127)
Tax payments for stock issuances, Shares	(145)
Pension adjustment, net of tax				(12)	(12)
Balance at Sep. 30, 2019	$ 40	94,694	174,856	(16,777)	252,813
Balance (in shares) at Sep. 30, 2019	40,193
Balance at Dec. 31, 2019	$ 40	96,109	179,440	(13,295)	262,294
Balance (in shares) at Dec. 31, 2019	40,207
Change in Stockholders' Equity
Cumulative impact of change in accounting principles, net of tax			(253)		(253)
Net income (loss)			4		4
Foreign currency translation adjustment, net of tax				(4,278)	(4,278)
Restricted stock awards		1,350			1,350
Restricted stock awards, Shares	168
Tax payments for stock issuances		(293)			(293)
Tax payments for stock issuances, Shares	(61)
Pension adjustment, net of tax				(6)	(6)
Balance at Mar. 31, 2020	$ 40	97,166	179,191	(17,579)	258,818
Balance (in shares) at Mar. 31, 2020	40,314
Balance at Dec. 31, 2019	$ 40	96,109	179,440	(13,295)	262,294
Balance (in shares) at Dec. 31, 2019	40,207
Change in Stockholders' Equity
Net income (loss)					(3,699)
Balance at Sep. 30, 2020	$ 40	97,378	175,488	(13,690)	259,216
Balance (in shares) at Sep. 30, 2020	40,356
Balance at Mar. 31, 2020	$ 40	97,166	179,191	(17,579)	258,818
Balance (in shares) at Mar. 31, 2020	40,314
Change in Stockholders' Equity
Net income (loss)			(2,025)		(2,025)
Foreign currency translation adjustment, net of tax				446	446
Restricted stock awards		860			860
Restricted stock awards, Shares	19
Tax payments for stock issuances		(886)			(886)
Tax payments for stock issuances, Shares	(4)
Pension adjustment, net of tax				(6)	(6)
Balance at Jun. 30, 2020	$ 40	97,140	177,166	(17,139)	257,207
Balance (in shares) at Jun. 30, 2020	40,329
Change in Stockholders' Equity
Net income (loss)			(1,678)		(1,678)
Foreign currency translation adjustment, net of tax				3,455	3,455
Restricted stock awards		1,022			1,022
Restricted stock awards, Shares	55
Tax payments for stock issuances		(784)			(784)
Tax payments for stock issuances, Shares	(28)
Pension adjustment, net of tax				(6)	(6)
Balance at Sep. 30, 2020	$ 40	$ 97,378	$ 175,488	$ (13,690)	$ 259,216
Balance (in shares) at Sep. 30, 2020	40,356

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income (loss)		$ (3,699)	$ 3,280
Adjustments to reconcile net income (loss) from operations to net cash provided by (used in) operations:
Depreciation and amortization of intangible assets		9,193	8,579
Loss on disposal of assets		75
Deferred tax benefit		(356)	(508)
Stock-based compensation		3,232	1,778
Changes in operating assets and liabilities:
Accounts receivable, net		8,589	(18,988)
Inventories, net		5,790	(4,549)
Contract assets		(379)	540
Accounts payable		(5,551)	5,895
Income taxes payable		(5,985)	(2,742)
Accrued expenses		(3,694)	(2,351)
Deferred compensation		322	(47)
Deferred revenue		3,268	(2,318)
Other assets and liabilities		(3,376)	(2,231)
Net cash used in operating activities		7,429	(13,662)
Cash flows from investing activities:
Purchase of short term investments		(23,295)	(24,663)
Maturities of short term investments		21,980	21,250
Additions to property and equipment		(2,710)	(4,196)
Other		(98)
Net cash used in investing activities		(4,123)	(7,609)
Cash flows from financing activities:
Tax payments for restricted stock issuances		(1,963)	(394)
Net cash used in financing activities		(1,963)	(394)
Effect of exchange rate changes on cash		306	(154)
Net increase (decrease) in cash		1,649	(21,819)
Cash, cash equivalents, and restricted cash, beginning of period		85,129	77,555
Cash, cash equivalents, and restricted cash, end of period	[1]	$ 86,778	$ 55,736
[1]	The following table provides a reconciliation of cash, cash equivalents and restricted cash shown above to amounts reported within the unaudited condensed consolidated balance sheet as of September 30, 2020 and December 31, 2019 and amounts previously reported within the unaudited condensed consolidated balance sheet in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 (in thousands):

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020		Dec. 31, 2019	Sep. 30, 2019		Dec. 31, 2018
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 85,931		$ 84,282	$ 54,889
Restricted cash included in other non-current assets	847		847	847
Cash, cash equivalents and restricted cash	$ 86,778	[1]	$ 85,129	$ 55,736	[1]	$ 77,555
[1]	The following table provides a reconciliation of cash, cash equivalents and restricted cash shown above to amounts reported within the unaudited condensed consolidated balance sheet as of September 30, 2020 and December 31, 2019 and amounts previously reported within the unaudited condensed consolidated balance sheet in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 (in thousands):

Description of the Company and

Description of the Company and Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Description of the Company and Basis of Presentation
Description of the Company and Basis of Presentation	Note 1 – Description of the Company and Basis of Presentation Description of the Company OneSpan Inc. and its wholly owned subsidiaries design, develop, market and support hardware and software security systems that manage and secure access to information assets. OneSpan has operations in Austria, Australia, Belgium, Brazil, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K), and the United States (U.S.). ​ In accordance with ASC 280, Segment Reporting, our operations are reported as a single operating segment. The chief operating decision maker is the Chief Executive Officer who reviews the statement of operations of the Company on a consolidated basis, makes decisions and manages the operations of the Company as a single operating segment. ​ Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of OneSpan and its subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the results of the interim periods presented. All significant intercompany accounts and transactions have been eliminated. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020, particularly in light of the novel coronavirus (COVID-19) pandemic and its effects on domestic and global economies. To limit the spread of COVID-19, governments have imposed, and may continue to impose, among other things, travel and business operation restrictions and stay-at-home orders and social distancing guidelines, causing some businesses to adjust, reduce or suspend operating activities. These disruptions and restrictions could adversely affect our operating results due to, among other things, reduced demand for our services and solutions as a result of our customers having to adjust, reduce or suspend operating activities. Beginning in the Summer of 2020 and continuing through the third quarter ended September 30, 2020, we have experienced softened demand for certain of our products and services due to, we believe, global economic uncertainty connected with the continued seriousness of the COVID-19 pandemic. ​ For additional information, see Part II, Item 1A – Risk Factors of this Form 10-Q for additional information regarding the potential impact of COVID-19 on the Company. ​ Revision of Previously Issued Financial Statements We have revised amounts reported in previously issued financial statements for the periods presented in this Quarterly Report on Form 10-Q related to immaterial errors. The errors relate to certain contracts with customers involving term-based software licenses and related maintenance and support services. The net contract assets that originated from a portion of these contracts in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue in prior periods. ​ We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2019 and 2018, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. ​ The following tables present the effects of the aforementioned revisions on our condensed consolidated balance sheet as of December 31, 2019, our unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2019, our unaudited condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2019, our unaudited condensed consolidated statement of stockholders’ equity for the three and nine months ended September 30, 2019, our unaudited condensed consolidated statement of stockholders’ equity for the three months ended March 31, 2020, and our unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2019 (in thousands). ​ Condensed Consolidated Balance Sheet ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 in thousands As Previously Reported Adjustments ​ As Revised Contract assets ​ $ 7,058 ​ $ (1,818) ​ $ 5,240 Total current assets ​ ​ 211,619 ​ ​ (1,818) ​ ​ 209,801 Contract assets - non-current ​ ​ 3,565 ​ ​ (210) ​ ​ 3,355 Total assets ​ ​ 384,570 ​ ​ (2,028) ​ ​ 382,542 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term income taxes payable ​ ​ 7,711 ​ ​ (301) ​ ​ 7,410 Total current liabilities ​ ​ 74,113 ​ ​ (301) ​ ​ 73,812 Long-term deferred revenue ​ ​ 15,259 ​ ​ — ​ ​ 15,259 Long-term income taxes payable ​ ​ 6,958 ​ ​ — ​ ​ 6,958 Total liabilities ​ ​ 120,549 ​ ​ (301) ​ ​ 120,248 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated income ​ ​ 181,167 ​ ​ (1,727) ​ ​ 179,440 Accumulated other comprehensive loss ​ ​ ​ ​ ​ — ​ ​ ​ Total stockholders' equity ​ ​ 264,021 ​ ​ (1,727) ​ ​ 262,294 Total liabilities and stockholders' equity ​ ​ 384,570 ​ ​ (2,028) ​ ​ 382,542 ​ Condensed Consolidated Statements of Operations (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ended September 30, 2019 ​ Nine Months ended September 30, 2019 ​ As Previously Reported Adjustments ​ As Revised As Previously Reported Adjustments ​ As Revised Revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product and license ​ $ 61,181 ​ $ 34 ​ $ 61,215 ​ $ 133,159 ​ $ (484) ​ $ 132,675 Services and other ​ 18,544 ​ ​ (68) ​ 18,476 ​ 50,408 ​ ​ (130) ​ 50,278 Total revenue ​ 79,725 ​ ​ (34) ​ 79,691 ​ 183,567 ​ ​ (614) ​ 182,953 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Profit ​ 53,056 ​ ​ (34) ​ 53,022 ​ 122,979 ​ ​ (614) ​ 122,365 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income ​ 17,119 ​ ​ (34) ​ 17,085 ​ 9,381 ​ ​ (614) ​ 8,767 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes ​ 15,736 ​ ​ (34) ​ 15,702 ​ 8,102 ​ ​ (614) ​ 7,488 Provision for income taxes ​ 3,864 ​ ​ (9) ​ 3,855 ​ 4,363 ​ ​ (155) ​ 4,208 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income ​ ​ 11,872 ​ ​ (25) ​ ​ 11,847 ​ ​ 3,739 ​ ​ (459) ​ ​ 3,280 ​ ​ Condensed Consolidated Statements of Comprehensive Loss (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ended September 30, 2019 ​ Nine Months ended September 30, 2019 ​ ​ As Previously Reported Adjustments ​ As Revised As Previously Reported Adjustments ​ As Revised Net income ​ $ 11,872 ​ $ (25) ​ $ 11,847 ​ $ 3,739 ​ $ (459) ​ $ 3,280 Comprehensive income (loss) ​ ​ 8,838 ​ ​ (25) ​ ​ 8,813 ​ ​ 249 ​ ​ (459) ​ ​ (210) ​ Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Stockholders' Equity in thousands As Previously Reported Adjustments ​ As Revised Balance at December 31, 2018 ​ $ 252,441 ​ $ (802) ​ $ 251,639 Net income (loss) ​ ​ (5,671) ​ ​ (385) ​ ​ (6,056) Balance at March 31, 2019 ​ ​ 247,958 ​ ​ (1,187) ​ ​ 246,771 Net income (loss) ​ ​ (2,461) ​ ​ (50) ​ ​ (2,511) Balance at June 30, 2019 ​ ​ 244,815 ​ ​ (1,237) ​ ​ 243,578 Net income (loss) ​ ​ 11,872 ​ ​ (25) ​ ​ 11,847 Balance at September 30, 2019 ​ ​ 254,075 ​ ​ (1,262) ​ ​ 252,813 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2019 ​ $ 264,021 ​ $ (1,727) ​ $ 262,294 Net income (loss) ​ ​ 98 ​ ​ (94) ​ ​ 4 Balance at March 31, 2020 ​ ​ 260,639 ​ ​ (1,821) ​ ​ 258,818 ​ Condensed Consolidated Statements of Cash Flows (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months ended September 30, 2019 in thousands ​ As Previously Reported Adjustments ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ Net income ​ $ 3,739 ​ $ (459) ​ $ 3,280 Changes in operating assets and liabilities: ​ ​ ​ ​ Contract assets ​ (74) ​ 614 ​ 540 Income taxes payable ​ ​ (2,587) ​ ​ (155) ​ ​ (2,742) Net cash used in operating activities ​ (13,662) ​ — ​ (13,662) ​ For the three months ended March 31, 2020, the impacts of the adjustments resulted in a decrease of $0.1 million to income before taxes, and a decrease of $0.1 million to net income, compared to the amounts previously reported. ​ Principles of Consolidation ​ The consolidated financial statements include the accounts of OneSpan Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. ​ Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Foreign Currency Translation and Transactions The financial position and results of the operations of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. Dollars using current exchange rates as of the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates are charged or credited to other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations in other income (expense), net. Foreign exchange transaction gains aggregated $0.4 million for the three months ended September 30, 2020, and foreign exchange transaction losses aggregate $1.9 million for the three months ended September 30, 2019. For the nine months ended September 30, 2020, foreign exchange loss aggregated $0.1 million, and foreign exchange transaction losses aggregated $2.6 million for the nine months ended September 30, 2019. The financial position and results of our operations in Singapore, Switzerland, and Canada are measured in U.S. Dollars. For these subsidiaries, gains and losses that result from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Except for certain changes which resulted from the adoption of ASU 2016-13, there have been no changes to the significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 16, 2020 that have had a material impact on the Company’s condensed consolidated financial statements and related notes. ​ Cash, Cash Equivalents and Restricted Cash. We are in a lease agreement that required a letter of credit in the amount of $0.8 million to secure the obligation. The restricted cash related to this letter of credit is recorded in other non-current assets on the Condensed Consolidated Balance Sheet at September 30, 2020 and December 31, 2019. ​ Short Term Investments ​ The Company’s short term investments are in debt securities which consist of U.S treasury bills and notes, U.S. government agency notes, corporate notes, and high quality commercial paper with maturities at acquisition of more than three months and less than twelve months The Company classifies its investments in debt securities as available-for-sale. The Company adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments ​ Accounts Receivable, net of Allowance for Credit Losses ​ The Company adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , on January 1, 2020. As a result of the adoption, the Company amended its accounting policies for the allowance for credit losses. In accordance with ASU No. 2016-13, the Company evaluates its allowance based on expected losses rather than incurred losses, which is known as the current expected credit loss (“CECL”) model. The allowance is determined using the loss rate approach and is measured on a collective (pool) basis when similar risk characteristics exist. Where financial instruments do not share risk characteristics, they are evaluated on an individual basis. The allowance is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. ​ Equity Method Investment ​ We apply the equity method of accounting to our investment in Promon AS (Promon), because we exercise significant influence, but not controlling interest, in the investee. Promon is a technology company headquartered in Norway that specializes in mobile app security, whose solutions focus largely on Runtime Application Self-Protection (RASP). We exercise significant influence over Promon as a result of our 17% ownership interest in Promon, our representation on Promon’s Board of Directors, and the significance to Promon of our business activities with them. We integrate Promon’s RASP technology into our software solution, which are licensed to our customers. Under the equity method of accounting, the Company’s proportionate share of the net earnings (losses) of Promon is reported in other income (expense), net in our condensed consolidated Statements of Operations. The impact of the proportionate share of net earnings (losses) were immaterial for the three and nine months ended September 30, 2020 and 2019 as were the relative size of Promon’s assets and operations in relation to the Company’s. The carrying value of our equity method investment is reported in other noncurrent assets in the condensed consolidated Balance Sheets and is reported originally at cost and adjusted each period for the Company’s share of the investee’s earnings (losses) and dividends paid, if any. The Company also assesses the investment for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company did not record any impairment charges during the nine month periods ended September 30, 2020 and 2019. The Company recorded $0.2 million and $1.2 million in costs of sales during the three months ended September 30, 2020 and September 30, 2019, respectively for license fees owed to Promon for use of their software and technology, and recorded $1.6 million and $2.4 million for the nine months ended September 30, 2020 and 2019, respectively. The Company owed Promon $1.5 million as of September 30, 2020, which is included in accounts payable and accrued liabilities. ​ Recently Issued Accounting Pronouncements In September 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) Accounts receivable ​ In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment ​ In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement . ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted for removed or modified disclosures, and delayed adoption of the additional disclosures until their effective date. ​ In August 2018, the FASB issued ASU 2018-15, C ustomer's Accounting for Fees Paid in a Cloud Computing Arrangement ​ In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans ​ In December 2019, the FASB issued ASU 2019-12, Simplification for Accounting for Income Taxes ​ In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topics 321, 323 and 815 ​ In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Statements. ​ In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting ​ From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, our management believes that the issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. ​

Revenue

Revenue	9 Months Ended
	Sep. 30, 2020
Revenue
Revenue	Note 3 – Revenue ​ We recognize revenue in accordance with ASC 606 “Revenue from Contracts with Customers” Disaggregation of Revenues ​ The following tables present our revenues disaggregated by major products and services, geographical region and timing of revenue recognition. ​ Revenue by major products (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ 2020 2019 2020 2019 Hardware products ​ ​ $ 21,687 ​ $ 42,027 ​ $ 65,613 ​ $ 95,356 Software licenses ​ ​ ​ 8,562 ​ ​ 19,188 ​ ​ 38,280 ​ ​ 37,319 Subscription ​ ​ ​ 7,446 ​ ​ 5,556 ​ ​ 19,286 ​ ​ 16,163 Professional services ​ ​ ​ 1,353 ​ ​ 2,338 ​ ​ 4,100 ​ ​ 3,995 Maintenance, support and other ​ ​ ​ 12,391 ​ ​ 10,582 ​ ​ 35,484 ​ ​ 30,120 Total Revenue ​ ​ $ 51,439 ​ $ 79,691 ​ $ 162,763 ​ $ 182,953 ​ Revenue by location of customer for the three months ended September 30, 2020 and 2019 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EMEA Americas APAC Total ​ Total Revenue: ​ ​ ​ ​ ​ ​ 2020 ​ $ 26,684 ​ $ 12,305 ​ $ 12,450 ​ $ 51,439 ​ 2019 ​ $ 48,694 ​ $ 15,605 ​ $ 15,392 ​ $ 79,691 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of Total: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ 52 % 24 % 24 % 100 % 2019 ​ 61 % 20 % 19 % 100 % ​ Revenue by location of customer for the nine months ended September 30, 2020 and 2019 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EMEA Americas APAC Total Total Revenue: ​ ​ ​ ​ ​ 2020 ​ $ 88,624 ​ $ 38,570 ​ $ 35,569 ​ $ 162,763 ​ 2019 ​ $ 107,554 ​ $ 42,762 ​ $ 32,637 ​ $ 182,953 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of Total: ​ ​ ​ ​ ​ 2020 ​ 54 % 24 % 22 % 100 % 2019 ​ 59 % 23 % 18 % 100 % ​ Timing of revenue recognition (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2020 2019 ​ 2020 2019 Products and Licenses transferred at a point in time $ 30,249 ​ $ 61,215 ​ $ 103,893 ​ $ 132,675 Services transferred over time ​ 21,190 ​ ​ 18,476 ​ ​ 58,870 ​ ​ 50,278 Total Revenue $ 51,439 ​ $ 79,691 ​ $ 162,763 ​ $ 182,953 ​ Contract balances ​ The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ 2020 ​ 2019 Receivables, inclusive of trade and unbilled ​ $ 54,475 ​ $ 62,405 Contract Assets (current and non-current) ​ $ 8,938 ​ $ 8,595 Contract Liabilities (Deferred Revenue current and non-current) ​ $ 49,251 ​ $ 45,597 ​ Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to billing occurs, which is normally over 3 - 5 years . The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time. ​ As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year ​ Revenue recognized during the nine months ended September 30, 2020 included $29.2 million that was included on the December 31, 2019 balance sheet in contract liabilities. Deferred revenue increased in the same period due to timing of annual renewals. ​ Transaction price allocated to the remaining performance obligations ​ The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands ​ 2020 ​ 2021 ​ 2022 ​ Beyond 2022 ​ Total Future revenue related to current unsatisfied performance obligations ​ $ 3,418 ​ $ 11,820 ​ $ 8,825 ​ $ 12,686 ​ $ 36,749 ​ The Company applies practical expedients and does not one year ​ Costs of obtaining a contract ​ The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. The Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of benefit based on the transfer of goods or services that we have determined to be up to seven years . The Amortization is reflected in Sales and Marketing in the Statements of Operations. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors, including customer attrition. Commissions are earned upon invoicing to the customer. For contracts with multiple year payment terms, as the commissions that are payable after year 1 are payable based on continued employment, they are expensed when incurred . ​ Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in Sales and Marketing expense in the condensed consolidated statements of operations. ​ The following tables provide information related to the capitalized costs and amortization recognized in the current and prior periods: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands ​ ​ ​ September 30, 2020 ​ ​ December 31, 2019 Capitalized costs to obtain contracts, current ​ ​ $ 1,054 ​ $ 676 Capitalized costs to obtain contracts, non-current ​ ​ $ 4,871 ​ $ 3,222 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ ​ Nine months ended September 30, in thousands ​ ​ ​ 2020 ​ ​ 2019 ​ ​ 2020 ​ ​ 2019 Amortization of capitalized costs to obtain contracts ​ ​ $ 251 ​ $ 110 ​ $ 620 ​ $ 329 Impairments of capitalized costs to obtain contracts ​ ​ $ - ​ $ - ​ $ - ​ $ - ​

Inventories, net

Inventories, net	9 Months Ended
	Sep. 30, 2020
Inventories, net
Inventories, net	Note 4 – Inventories, net Inventories, net, consisting principally of hardware and component parts, are stated at the lower of cost or net realizable value. Cost is determined using the FIFO method. Inventories, net are comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 ​ ​ (in thousands) Component parts ​ $ 6,360 ​ $ 7,429 Work-in-process and finished goods ​ 7,669 ​ 12,390 Total ​ $ 14,029 ​ $ 19,819 ​

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2020
Goodwill
Goodwill	Note 5 – Goodwill Goodwill activity for the three months ended September 30, 2020 consisted of the following: ​ ​ ​ ​ ​ in thousands ​ ​ ​ Net balance at December 31, 2019 $ 94,612 Net foreign currency translation ​ (453) Net balance at September 30, 2020 ​ $ 94,159 ​ ​ ​ ​ ​ No impairment of goodwill was recorded during the nine months ended September 30, 2020 or September 30, 2019.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2020
Intangible Assets
Intangible Assets	Note 6 – Intangible Assets Intangible asset activity for the nine months ended September 30, 2020 is detailed in the following table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands Acquired Technology Customer Relationships Other Total Intangible Assets Net balance at December 31, 2019 ​ $ 5,454 ​ $ 26,884 ​ $ 3,871 ​ $ 36,209 Additions ​ 43 ​ ​ — ​ ​ 55 ​ 98 Disposals ​ ​ — ​ ​ — ​ ​ (6) ​ ​ (6) Net foreign currency translation ​ (91) ​ ​ (418) ​ ​ — ​ (509) Amortization expense ​ (2,576) ​ ​ (2,708) ​ ​ (1,765) ​ (7,049) Net balance at September 30, 2020 ​ $ 2,830 ​ $ 23,758 ​ $ 2,155 ​ $ 28,743 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 balance at cost ​ $ 42,739 ​ $ 39,207 ​ $ 13,726 ​ $ 95,672 Accumulated amortization ​ (39,909) ​ (15,449) ​ (11,571) ​ (66,929) Net balance at September 30, 2020 ​ $ 2,830 ​ $ 23,758 ​ $ 2,155 ​ $ 28,743 ​ Certain intangible assets are denominated in functional currencies besides the U.S. dollar and are subject to currency fluctuations. No impairment of intangible assets was recorded during the nine months ended September 30, 2020 or September 30, 2019.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2020
Property and Equipment
Property and Equipment	Note 7 – Property and Equipment The major classes of property and equipment are as follows: ​ ​ ​ ​ ​ ​ ​ ​ in thousands September 30, 2020 December 31, 2019 Office equipment and software ​ $ 14,921 ​ $ 14,595 Leasehold improvements ​ ​ 10,657 ​ ​ 9,417 Furniture and fixtures ​ 3,935 ​ 3,717 Total ​ 29,513 ​ 27,729 Accumulated depreciation ​ (17,453) ​ (16,275) Property and equipment, net ​ $ 12,060 ​ $ 11,454 ​ Depreciation expense was $0.7 and $2.1 million for the three and nine months ended September 30, 2020, respectively, compared to $0.5 million and $1.5 million for the three and nine months ended September 30, 2019, respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Fair Value Measurements	Note 8 – Fair Value Measurements The fair values of cash equivalents, receivables, net, and accounts payable approximate their carrying amounts due to their short duration. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing base upon its own market assumptions. ​ The Company classifies its investments in debt securities as available-for-sale. As described in Note 2- Summary of Significant Accounting Policies, the January 1, 2020 adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments, amended our accounting for available-for-sale debt securities. We review available-for-sale det securities for impairments related to losses and other factors each quarter. The unrealized gains and losses on the available-for-sale debt securities were not material as of September 30, 2020 and December 31, 2019. ​ The estimated fair value of our financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in ASC 820, Fair Value Measurements ​ ● Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived primarily from or corroborated by observable market data. ● Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. ​ The following tables summarize assets that are measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at Reporting Date Using in thousands ​ ​ September 30, 2020 ​ Quoted Prices in Active Markets for Identical Assets (Level 1) ​ Significant Other Observable Inputs (Level 2) ​ Significant Unobservable Inputs (Level 3) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury Notes ​ $ 4,500 ​ - $ 4,500 ​ - Corporate Notes / Bonds ​ $ 10,711 ​ - $ 10,711 ​ - Commercial Paper ​ $ 2,599 ​ - $ 2,599 ​ - U.S. Treasury Bills ​ $ 5,257 ​ - $ 5,257 ​ - U.S. Government Agencies ​ $ 3,744 ​ - $ 3,744 ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at Reporting Date Using in thousands ​ ​ December 31, 2019 ​ Quoted Prices in Active Markets for Identical Assets (Level 1) ​ Significant Other Observable Inputs (Level 2) ​ Significant Unobservable Inputs (Level 3) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury Notes ​ $ 9,225 ​ - $ 9,225 ​ - Corporate Notes / Bonds ​ $ 8,169 ​ - $ 8,169 ​ - Commercial Paper ​ $ 3,482 ​ - $ 3,482 ​ - U.S. Treasury Bills ​ $ 2,385 ​ - $ 2,385 ​ - U.S. Government Agencies ​ $ 2,249 ​ - $ 2,249 ​ - ​

Allowance for credit losses

Allowance for credit losses	9 Months Ended
	Sep. 30, 2020
Allowance for credit losses
Allowance for credit losses	Note 9 – Allowance for credit losses ​ As described in Note 2 - Summary of Significant Accounting Policies, the January 1, 2020 adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments, ​ The changes in the allowance for credit losses during the nine months ended September 30, 2020 were as follows: ​ ​ ​ ​ ​ in thousands ​ ​ ​ Balance at December 31, 2019 ​ $ 2,524 Impact of ASU 2016-13 adoption ​ ​ 288 Balance at January 1, 2020 ​ ​ 2,812 Provision ​ ​ 1,510 Write-offs ​ ​ (488) Net foreign currency translation ​ ​ 3 Balance at September 30, 2020 ​ $ 3,837 ​ A higher allowance for credit losses was recorded during the nine months ended September 30, 2020 primarily due to the adverse impact the COVID-19 pandemic has had on factors that affect our estimate of future credit losses.

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	Note 10 – Leases Operating lease cost details for the three and nine months ended September 30, 2020 and 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 ​ ​ (in thousands) ​ (in thousands) Building rent ​ $ 808 ​ $ 955 ​ $ 2,264 ​ $ 2,676 Automobile rentals ​ 426 ​ 603 ​ 1,137 ​ 1,113 Total net operating lease costs ​ $ 1,234 ​ $ 1,558 ​ $ 3,401 ​ $ 3,789 ​ At September 30, 2020, the weighted average remaining lease term for our operating leases is 7.0 years. The weighted average discount rate for our operating leases is 5%. ​ During the nine months ended September 30, 2020, there were $3.0 million of operating cash payments for lease liabilities, and $3.2 million of right-of use assets obtained in exchange for new lease liabilities. ​ Maturities of our operating leases are as follows: ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ ​ ​ (in $ thousands) 2020 (remaining 3 months) ​ $ 661 2021 ​ ​ 3,413 2022 ​ ​ 3,010 2023 ​ ​ 2,429 2024 ​ ​ 1,635 Later years ​ ​ 7,277 Less imputed interest ​ ​ (3,291) Total lease liabilities ​ $ 15,134 ​

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Taxes
Income Taxes	Note 11 – Income Taxes For the three and nine months ended September 30, 2020, the Company utilized the discrete effective tax rate method, as allowed by ASC 740-270-30-18, “Income Taxes—Interim Reporting,” to calculate its interim income tax provision. The discrete method is applied when the application of the estimate annual effective tax rate yields an estimate that is not reliable and the actual effective rate for the year-to-date is the best estimate of the annual effective tax rate. rate. Our global effective tax rate is higher than the U.S. statutory tax rate of 21% primarily due to losses in jurisdictions for which a valuation allowance is required. Our ultimate tax expense will depend on the mix of earnings in various jurisdictions. Income taxes of $0.2 million and $8.0 million were paid during the three and nine months ended September 30, 2020, respectively. ​ At December 31, 2019, we had deferred tax assets of $24.9 million resulting from foreign and state NOL carryforwards of $16.6 million and other foreign deductible carryforwards of $8.3 million. At December 31, 2019, we had a valuation allowance of $17.3 million against deferred tax assets related to certain carryforwards. ​ Certain non-U.S. operations have incurred net operating losses (NOLs), which are currently subject to a valuation allowance. These NOLs may become deductible to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we will reduce the tax valuation allowances related to these NOLs, which will result in a reduction of our income tax expense and our effective tax rate in the period. ​ On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. Among other provision, the law provides relief to U.S. federal corporate taxpayers through temporary adjustments to net operating loss rules, changes to limitations on interest expense deductibility, the acceleration of available refunds for minimum tax credit carryforwards, and depreciation method changes. We do not expect the provisions of the legislation to have a significant impact on our effective tax rate nor the income tax payable and deferred income tax positions of the Company. ​

Long-Term Compensation Plan and

Long-Term Compensation Plan and Stock Based Compensation	9 Months Ended
	Sep. 30, 2020
Long-Term Compensation Plan and Stock Based Compensation
Long-Term Compensation Plan and Stock Based Compensation	Note 12 – Long-Term Compensation Plan and Stock Based Compensation (share counts in thousands) ​ We awarded 321 restricted stock units during the nine months ended September 30, 2020, subject to time-based vesting. The fair value of the unissued time-based restricted stock unit grants was $5.7 million at the dates of grant and the grants are being amortized over the vesting periods of one ​ We awarded restricted stock unit grants during the nine months ended September 30, 2020, subject to the achievement of market and service conditions, which allow for up to 88 shares to be earned if the market conditions are fully achieved. The fair value of these awards was $1.6 million at the dates of grant and the awards are being amortized over the vesting period of three years. ​ We awarded restricted stock units subject to the achievement of service and future performance criteria during the nine months ended September 30, 2020, which allow for up to 198 shares to be earned if the performance criteria are fully achieved. The fair value of these awards was $4.1 million at the dates of grant. The Company currently believes that none of these shares will be earned, and the compensation costs recorded through the six months ended June 30, 2020 for these unvested shares issued with performance criteria that are no longer considered probable of achievement have been reversed during the three months ended September 30, 2020. ​ The Company currently believes that certain restricted stock units subject to the achievement of future performance criteria, awarded during the twelve months ended December 31, 2019 and 2018, will not be earned. The compensation costs recorded for the 8 and 106 unvested shares issued during the twelve months ended December 31, 2019 and 2018, respectively, with performance criteria that are no longer considered probable of achievement have been reversed during the three months ended September 30, 2020. ​ The following table details long-term compensation plan and stock-based compensation expense for the three and nine months ended September 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 ​ in thousands ​ (in thousands) ​ (in thousands) ​ Restricted stock ​ $ 1,021 ​ $ 549 ​ $ 3,231 ​ $ 1,778 ​ Long-term compensation plan ​ 260 ​ 280 ​ 930 ​ 1,538 ​ Total compensation ​ $ 1,281 ​ $ 829 ​ $ 4,161 ​ $ 3,316 ​ ​

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2020
Earnings per Share
Earnings per Share	Note 13 – Earnings per Share (share counts in thousands) Basic earnings per share is based on the weighted average number of shares outstanding and excludes the dilutive effect of common stock equivalents. Diluted earnings per share is based on the weighted average number of shares outstanding and includes the dilutive effect of common stock equivalents to the extent they are not anti-dilutive. Because the Company is in a net loss position for the three and nine months ended September 30, 2020, diluted net loss per share for these periods excludes the effects of common stock equivalents, which are anti-dilutive. For the three and nine months ended September 30, 2019, the anti-dilutive effect of our securities is immaterial. The details of the earnings per share calculations for the three and nine months ended September 30, 2020 and 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, in thousands, except per share data 2020 2019 2020 2019 ​ Net income (loss) ​ $ (1,678) ​ $ 11,847 ​ $ (3,699) ​ $ 3,280 ​ Weighted average common shares outstanding: ​ ​ ​ ​ ​ Basic ​ 40,033 ​ 40,062 ​ 40,050 ​ 40,037 ​ Incremental shares with dilutive effect: ​ ​ ​ ​ ​ ​ ​ Restricted stock awards ​ — ​ 67 ​ — ​ 62 ​ Diluted ​ 40,033 ​ 40,129 ​ 40,050 ​ 40,099 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per share: ​ ​ ​ ​ ​ Basic ​ $ (0.04) ​ $ 0.30 ​ $ (0.09) ​ $ 0.08 ​ Diluted ​ $ (0.04) ​ $ 0.30 ​ $ (0.09) ​ $ 0.08 ​ ​

Legal Proceedings and Contingen

Legal Proceedings and Contingencies	9 Months Ended
	Sep. 30, 2020
Legal Proceedings and Contingencies
Legal Proceedings and Contingencies	​ Note 14 – Legal Proceedings and Contingencies We are a party to or have intellectual property subject to litigation and other proceedings that arise in the ordinary course of our business. These types of matters could result in fines, penalties, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our financial results in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. Although we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, U.S. GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made. We follow a process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. We include various types of indemnification clauses in our agreements. These indemnifications may include, but are not limited to, infringement claims related to our intellectual property, direct damages and consequential damages. The type and amount of such indemnifications vary substantially based on our assessment of risk and reward associated with each agreement. We believe the estimated fair value of these indemnification clauses is minimal, and we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. We have no liabilities recorded for these clauses as of September 30, 2020. We have been involved in an ongoing dispute with a German company, Onespin solutions GmbH, regarding the co-existence of, or alleged infringement with, its trademark in certain jurisdictions for “ONESPIN” and our trademark in certain jurisdictions for “ONESPAN”. Onespin sells integrated circuit integrity verification solutions for use in the system on chip software development process flow. Subsequent to the end of the third quarter we reached an immaterial settlement with OneSpin on these matters. While certain administrative steps and filings will occur pursuant to the settlement, we consider this matter to now be closed. ​ A complaint was filed on August 20, 2020 against OneSpan and certain of its officers, asserting claims for purported violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and SEC Rule 10b-5 promulgated thereunder, based on certain alleged material misstatements and omissions. The case is captioned Almendariz v. OneSpan Inc., et al., No. 1:20-cv-04906 (N.D. Ill.) (the “Securities Class Action”). Specifically, the plaintiff in the Securities Class Action alleges, among other things, that certain statements about OneSpan’s business were misleading because of defendants’ failure to disclose that OneSpan purportedly had inadequate internal procedures and controls over financial reporting and related disclosures; and OneSpan purportedly downplayed the negative impacts of immaterial errors in its financial statements. ​ A complaint, related in subject matter to the Securities Class Action, was filed on October 23, 2020 against certain of OneSpan’s officers and directors, and names OneSpan as a nominal defendant. The case is captioned Klein v. Boroditzky, et al., No. 1:20-cv-06310 (N.D. Ill.) (the “Derivative Action” and, collectively with the Securities Class Action, the “Litigation”). The plaintiff asserts claims for breach of fiduciary duty, abuse of control and corporate waste, as well as a claim for contribution under Sections 10(b) and 21D of the Exchange Act, based on the same alleged wrongdoing pled in the Securities Class Action. We believe that the claims in the Litigation are meritless and intend to defend against them vigorously. ​ From time to time, we have been involved in litigation and claims incidental to the conduct of our business, such as compensation claims from current or former employees in Europe. We expect that to continue. Excluding matters specifically disclosed above, we are not a party to any lawsuit or proceeding that, in management’s opinion, is likely to have a material adverse effect on its business, financial condition or results of operations.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Description of the Company	Description of the Company OneSpan Inc. and its wholly owned subsidiaries design, develop, market and support hardware and software security systems that manage and secure access to information assets. OneSpan has operations in Austria, Australia, Belgium, Brazil, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K), and the United States (U.S.). ​ In accordance with ASC 280, Segment Reporting, our operations are reported as a single operating segment. The chief operating decision maker is the Chief Executive Officer who reviews the statement of operations of the Company on a consolidated basis, makes decisions and manages the operations of the Company as a single operating segment.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of OneSpan and its subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the results of the interim periods presented. All significant intercompany accounts and transactions have been eliminated. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020, particularly in light of the novel coronavirus (COVID-19) pandemic and its effects on domestic and global economies. To limit the spread of COVID-19, governments have imposed, and may continue to impose, among other things, travel and business operation restrictions and stay-at-home orders and social distancing guidelines, causing some businesses to adjust, reduce or suspend operating activities. These disruptions and restrictions could adversely affect our operating results due to, among other things, reduced demand for our services and solutions as a result of our customers having to adjust, reduce or suspend operating activities. Beginning in the Summer of 2020 and continuing through the third quarter ended September 30, 2020, we have experienced softened demand for certain of our products and services due to, we believe, global economic uncertainty connected with the continued seriousness of the COVID-19 pandemic. ​ For additional information, see Part II, Item 1A – Risk Factors of this Form 10-Q for additional information regarding the potential impact of COVID-19 on the Company.
Revision of Previously Issued Financial Statements	Revision of Previously Issued Financial Statements We have revised amounts reported in previously issued financial statements for the periods presented in this Quarterly Report on Form 10-Q related to immaterial errors. The errors relate to certain contracts with customers involving term-based software licenses and related maintenance and support services. The net contract assets that originated from a portion of these contracts in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue in prior periods. ​ We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2019 and 2018, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. ​ The following tables present the effects of the aforementioned revisions on our condensed consolidated balance sheet as of December 31, 2019, our unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2019, our unaudited condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2019, our unaudited condensed consolidated statement of stockholders’ equity for the three and nine months ended September 30, 2019, our unaudited condensed consolidated statement of stockholders’ equity for the three months ended March 31, 2020, and our unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2019 (in thousands). ​ Condensed Consolidated Balance Sheet ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 in thousands As Previously Reported Adjustments ​ As Revised Contract assets ​ $ 7,058 ​ $ (1,818) ​ $ 5,240 Total current assets ​ ​ 211,619 ​ ​ (1,818) ​ ​ 209,801 Contract assets - non-current ​ ​ 3,565 ​ ​ (210) ​ ​ 3,355 Total assets ​ ​ 384,570 ​ ​ (2,028) ​ ​ 382,542 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term income taxes payable ​ ​ 7,711 ​ ​ (301) ​ ​ 7,410 Total current liabilities ​ ​ 74,113 ​ ​ (301) ​ ​ 73,812 Long-term deferred revenue ​ ​ 15,259 ​ ​ — ​ ​ 15,259 Long-term income taxes payable ​ ​ 6,958 ​ ​ — ​ ​ 6,958 Total liabilities ​ ​ 120,549 ​ ​ (301) ​ ​ 120,248 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated income ​ ​ 181,167 ​ ​ (1,727) ​ ​ 179,440 Accumulated other comprehensive loss ​ ​ ​ ​ ​ — ​ ​ ​ Total stockholders' equity ​ ​ 264,021 ​ ​ (1,727) ​ ​ 262,294 Total liabilities and stockholders' equity ​ ​ 384,570 ​ ​ (2,028) ​ ​ 382,542 ​ Condensed Consolidated Statements of Operations (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ended September 30, 2019 ​ Nine Months ended September 30, 2019 ​ As Previously Reported Adjustments ​ As Revised As Previously Reported Adjustments ​ As Revised Revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product and license ​ $ 61,181 ​ $ 34 ​ $ 61,215 ​ $ 133,159 ​ $ (484) ​ $ 132,675 Services and other ​ 18,544 ​ ​ (68) ​ 18,476 ​ 50,408 ​ ​ (130) ​ 50,278 Total revenue ​ 79,725 ​ ​ (34) ​ 79,691 ​ 183,567 ​ ​ (614) ​ 182,953 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Profit ​ 53,056 ​ ​ (34) ​ 53,022 ​ 122,979 ​ ​ (614) ​ 122,365 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income ​ 17,119 ​ ​ (34) ​ 17,085 ​ 9,381 ​ ​ (614) ​ 8,767 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes ​ 15,736 ​ ​ (34) ​ 15,702 ​ 8,102 ​ ​ (614) ​ 7,488 Provision for income taxes ​ 3,864 ​ ​ (9) ​ 3,855 ​ 4,363 ​ ​ (155) ​ 4,208 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income ​ ​ 11,872 ​ ​ (25) ​ ​ 11,847 ​ ​ 3,739 ​ ​ (459) ​ ​ 3,280 ​ ​ Condensed Consolidated Statements of Comprehensive Loss (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ended September 30, 2019 ​ Nine Months ended September 30, 2019 ​ ​ As Previously Reported Adjustments ​ As Revised As Previously Reported Adjustments ​ As Revised Net income ​ $ 11,872 ​ $ (25) ​ $ 11,847 ​ $ 3,739 ​ $ (459) ​ $ 3,280 Comprehensive income (loss) ​ ​ 8,838 ​ ​ (25) ​ ​ 8,813 ​ ​ 249 ​ ​ (459) ​ ​ (210) ​ Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Stockholders' Equity in thousands As Previously Reported Adjustments ​ As Revised Balance at December 31, 2018 ​ $ 252,441 ​ $ (802) ​ $ 251,639 Net income (loss) ​ ​ (5,671) ​ ​ (385) ​ ​ (6,056) Balance at March 31, 2019 ​ ​ 247,958 ​ ​ (1,187) ​ ​ 246,771 Net income (loss) ​ ​ (2,461) ​ ​ (50) ​ ​ (2,511) Balance at June 30, 2019 ​ ​ 244,815 ​ ​ (1,237) ​ ​ 243,578 Net income (loss) ​ ​ 11,872 ​ ​ (25) ​ ​ 11,847 Balance at September 30, 2019 ​ ​ 254,075 ​ ​ (1,262) ​ ​ 252,813 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2019 ​ $ 264,021 ​ $ (1,727) ​ $ 262,294 Net income (loss) ​ ​ 98 ​ ​ (94) ​ ​ 4 Balance at March 31, 2020 ​ ​ 260,639 ​ ​ (1,821) ​ ​ 258,818 ​ Condensed Consolidated Statements of Cash Flows (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months ended September 30, 2019 in thousands ​ As Previously Reported Adjustments ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ Net income ​ $ 3,739 ​ $ (459) ​ $ 3,280 Changes in operating assets and liabilities: ​ ​ ​ ​ Contract assets ​ (74) ​ 614 ​ 540 Income taxes payable ​ ​ (2,587) ​ ​ (155) ​ ​ (2,742) Net cash used in operating activities ​ (13,662) ​ — ​ (13,662) ​ For the three months ended March 31, 2020, the impacts of the adjustments resulted in a decrease of $0.1 million to income before taxes, and a decrease of $0.1 million to net income, compared to the amounts previously reported.
Principles of Consolidation	Principles of Consolidation ​ The consolidated financial statements include the accounts of OneSpan Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation.
Estimates and Assumptions	​ Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The financial position and results of the operations of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. Dollars using current exchange rates as of the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates are charged or credited to other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations in other income (expense), net. Foreign exchange transaction gains aggregated $0.4 million for the three months ended September 30, 2020, and foreign exchange transaction losses aggregate $1.9 million for the three months ended September 30, 2019. For the nine months ended September 30, 2020, foreign exchange loss aggregated $0.1 million, and foreign exchange transaction losses aggregated $2.6 million for the nine months ended September 30, 2019. The financial position and results of our operations in Singapore, Switzerland, and Canada are measured in U.S. Dollars. For these subsidiaries, gains and losses that result from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash. We are in a lease agreement that required a letter of credit in the amount of $0.8 million to secure the obligation. The restricted cash related to this letter of credit is recorded in other non-current assets on the Condensed Consolidated Balance Sheet at September 30, 2020 and December 31, 2019.
Short Term Investments	Short Term Investments ​ The Company’s short term investments are in debt securities which consist of U.S treasury bills and notes, U.S. government agency notes, corporate notes, and high quality commercial paper with maturities at acquisition of more than three months and less than twelve months The Company classifies its investments in debt securities as available-for-sale. The Company adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments
Accounts Receivable, net of Allowance for Credit Losses	​ Accounts Receivable, net of Allowance for Credit Losses ​ The Company adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , on January 1, 2020. As a result of the adoption, the Company amended its accounting policies for the allowance for credit losses. In accordance with ASU No. 2016-13, the Company evaluates its allowance based on expected losses rather than incurred losses, which is known as the current expected credit loss (“CECL”) model. The allowance is determined using the loss rate approach and is measured on a collective (pool) basis when similar risk characteristics exist. Where financial instruments do not share risk characteristics, they are evaluated on an individual basis. The allowance is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
Equity Method Investment	Equity Method Investment ​ We apply the equity method of accounting to our investment in Promon AS (Promon), because we exercise significant influence, but not controlling interest, in the investee. Promon is a technology company headquartered in Norway that specializes in mobile app security, whose solutions focus largely on Runtime Application Self-Protection (RASP). We exercise significant influence over Promon as a result of our 17% ownership interest in Promon, our representation on Promon’s Board of Directors, and the significance to Promon of our business activities with them. We integrate Promon’s RASP technology into our software solution, which are licensed to our customers. Under the equity method of accounting, the Company’s proportionate share of the net earnings (losses) of Promon is reported in other income (expense), net in our condensed consolidated Statements of Operations. The impact of the proportionate share of net earnings (losses) were immaterial for the three and nine months ended September 30, 2020 and 2019 as were the relative size of Promon’s assets and operations in relation to the Company’s. The carrying value of our equity method investment is reported in other noncurrent assets in the condensed consolidated Balance Sheets and is reported originally at cost and adjusted each period for the Company’s share of the investee’s earnings (losses) and dividends paid, if any. The Company also assesses the investment for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company did not record any impairment charges during the nine month periods ended September 30, 2020 and 2019. The Company recorded $0.2 million and $1.2 million in costs of sales during the three months ended September 30, 2020 and September 30, 2019, respectively for license fees owed to Promon for use of their software and technology, and recorded $1.6 million and $2.4 million for the nine months ended September 30, 2020 and 2019, respectively. The Company owed Promon $1.5 million as of September 30, 2020, which is included in accounts payable and accrued liabilities. ​
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In September 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) Accounts receivable ​ In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment ​ In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement . ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted for removed or modified disclosures, and delayed adoption of the additional disclosures until their effective date. ​ In August 2018, the FASB issued ASU 2018-15, C ustomer's Accounting for Fees Paid in a Cloud Computing Arrangement ​ In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans ​ In December 2019, the FASB issued ASU 2019-12, Simplification for Accounting for Income Taxes ​ In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topics 321, 323 and 815 ​ In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Statements. ​ In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting ​ From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, our management believes that the issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption.

Description of the Company an_2

Description of the Company and Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2020
Description of the Company and Basis of Presentation
Revised Consolidated Statements	Condensed Consolidated Balance Sheet ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 in thousands As Previously Reported Adjustments ​ As Revised Contract assets ​ $ 7,058 ​ $ (1,818) ​ $ 5,240 Total current assets ​ ​ 211,619 ​ ​ (1,818) ​ ​ 209,801 Contract assets - non-current ​ ​ 3,565 ​ ​ (210) ​ ​ 3,355 Total assets ​ ​ 384,570 ​ ​ (2,028) ​ ​ 382,542 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term income taxes payable ​ ​ 7,711 ​ ​ (301) ​ ​ 7,410 Total current liabilities ​ ​ 74,113 ​ ​ (301) ​ ​ 73,812 Long-term deferred revenue ​ ​ 15,259 ​ ​ — ​ ​ 15,259 Long-term income taxes payable ​ ​ 6,958 ​ ​ — ​ ​ 6,958 Total liabilities ​ ​ 120,549 ​ ​ (301) ​ ​ 120,248 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated income ​ ​ 181,167 ​ ​ (1,727) ​ ​ 179,440 Accumulated other comprehensive loss ​ ​ ​ ​ ​ — ​ ​ ​ Total stockholders' equity ​ ​ 264,021 ​ ​ (1,727) ​ ​ 262,294 Total liabilities and stockholders' equity ​ ​ 384,570 ​ ​ (2,028) ​ ​ 382,542 ​ Condensed Consolidated Statements of Operations (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ended September 30, 2019 ​ Nine Months ended September 30, 2019 ​ As Previously Reported Adjustments ​ As Revised As Previously Reported Adjustments ​ As Revised Revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product and license ​ $ 61,181 ​ $ 34 ​ $ 61,215 ​ $ 133,159 ​ $ (484) ​ $ 132,675 Services and other ​ 18,544 ​ ​ (68) ​ 18,476 ​ 50,408 ​ ​ (130) ​ 50,278 Total revenue ​ 79,725 ​ ​ (34) ​ 79,691 ​ 183,567 ​ ​ (614) ​ 182,953 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Profit ​ 53,056 ​ ​ (34) ​ 53,022 ​ 122,979 ​ ​ (614) ​ 122,365 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income ​ 17,119 ​ ​ (34) ​ 17,085 ​ 9,381 ​ ​ (614) ​ 8,767 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes ​ 15,736 ​ ​ (34) ​ 15,702 ​ 8,102 ​ ​ (614) ​ 7,488 Provision for income taxes ​ 3,864 ​ ​ (9) ​ 3,855 ​ 4,363 ​ ​ (155) ​ 4,208 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income ​ ​ 11,872 ​ ​ (25) ​ ​ 11,847 ​ ​ 3,739 ​ ​ (459) ​ ​ 3,280 ​ ​ Condensed Consolidated Statements of Comprehensive Loss (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ended September 30, 2019 ​ Nine Months ended September 30, 2019 ​ ​ As Previously Reported Adjustments ​ As Revised As Previously Reported Adjustments ​ As Revised Net income ​ $ 11,872 ​ $ (25) ​ $ 11,847 ​ $ 3,739 ​ $ (459) ​ $ 3,280 Comprehensive income (loss) ​ ​ 8,838 ​ ​ (25) ​ ​ 8,813 ​ ​ 249 ​ ​ (459) ​ ​ (210) ​ Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Stockholders' Equity in thousands As Previously Reported Adjustments ​ As Revised Balance at December 31, 2018 ​ $ 252,441 ​ $ (802) ​ $ 251,639 Net income (loss) ​ ​ (5,671) ​ ​ (385) ​ ​ (6,056) Balance at March 31, 2019 ​ ​ 247,958 ​ ​ (1,187) ​ ​ 246,771 Net income (loss) ​ ​ (2,461) ​ ​ (50) ​ ​ (2,511) Balance at June 30, 2019 ​ ​ 244,815 ​ ​ (1,237) ​ ​ 243,578 Net income (loss) ​ ​ 11,872 ​ ​ (25) ​ ​ 11,847 Balance at September 30, 2019 ​ ​ 254,075 ​ ​ (1,262) ​ ​ 252,813 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2019 ​ $ 264,021 ​ $ (1,727) ​ $ 262,294 Net income (loss) ​ ​ 98 ​ ​ (94) ​ ​ 4 Balance at March 31, 2020 ​ ​ 260,639 ​ ​ (1,821) ​ ​ 258,818 ​ Condensed Consolidated Statements of Cash Flows (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months ended September 30, 2019 in thousands ​ As Previously Reported Adjustments ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ Net income ​ $ 3,739 ​ $ (459) ​ $ 3,280 Changes in operating assets and liabilities: ​ ​ ​ ​ Contract assets ​ (74) ​ 614 ​ 540 Income taxes payable ​ ​ (2,587) ​ ​ (155) ​ ​ (2,742) Net cash used in operating activities ​ (13,662) ​ — ​ (13,662) ​

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue
Revenues disaggregated by geography, major product line and timing of revenue recognition	Revenue by major products (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ 2020 2019 2020 2019 Hardware products ​ ​ $ 21,687 ​ $ 42,027 ​ $ 65,613 ​ $ 95,356 Software licenses ​ ​ ​ 8,562 ​ ​ 19,188 ​ ​ 38,280 ​ ​ 37,319 Subscription ​ ​ ​ 7,446 ​ ​ 5,556 ​ ​ 19,286 ​ ​ 16,163 Professional services ​ ​ ​ 1,353 ​ ​ 2,338 ​ ​ 4,100 ​ ​ 3,995 Maintenance, support and other ​ ​ ​ 12,391 ​ ​ 10,582 ​ ​ 35,484 ​ ​ 30,120 Total Revenue ​ ​ $ 51,439 ​ $ 79,691 ​ $ 162,763 ​ $ 182,953 ​ Revenue by location of customer for the three months ended September 30, 2020 and 2019 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EMEA Americas APAC Total ​ Total Revenue: ​ ​ ​ ​ ​ ​ 2020 ​ $ 26,684 ​ $ 12,305 ​ $ 12,450 ​ $ 51,439 ​ 2019 ​ $ 48,694 ​ $ 15,605 ​ $ 15,392 ​ $ 79,691 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of Total: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ 52 % 24 % 24 % 100 % 2019 ​ 61 % 20 % 19 % 100 % ​ Revenue by location of customer for the nine months ended September 30, 2020 and 2019 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EMEA Americas APAC Total Total Revenue: ​ ​ ​ ​ ​ 2020 ​ $ 88,624 ​ $ 38,570 ​ $ 35,569 ​ $ 162,763 ​ 2019 ​ $ 107,554 ​ $ 42,762 ​ $ 32,637 ​ $ 182,953 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of Total: ​ ​ ​ ​ ​ 2020 ​ 54 % 24 % 22 % 100 % 2019 ​ 59 % 23 % 18 % 100 % ​ Timing of revenue recognition (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2020 2019 ​ 2020 2019 Products and Licenses transferred at a point in time $ 30,249 ​ $ 61,215 ​ $ 103,893 ​ $ 132,675 Services transferred over time ​ 21,190 ​ ​ 18,476 ​ ​ 58,870 ​ ​ 50,278 Total Revenue $ 51,439 ​ $ 79,691 ​ $ 162,763 ​ $ 182,953
Schedule of changes in contract assets and contract liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ 2020 ​ 2019 Receivables, inclusive of trade and unbilled ​ $ 54,475 ​ $ 62,405 Contract Assets (current and non-current) ​ $ 8,938 ​ $ 8,595 Contract Liabilities (Deferred Revenue current and non-current) ​ $ 49,251 ​ $ 45,597
Schedule of estimated revenue expected to be recognized in the future	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands ​ 2020 ​ 2021 ​ 2022 ​ Beyond 2022 ​ Total Future revenue related to current unsatisfied performance obligations ​ $ 3,418 ​ $ 11,820 ​ $ 8,825 ​ $ 12,686 ​ $ 36,749
Schedule related to the capitalized costs and amortization	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands ​ ​ ​ September 30, 2020 ​ ​ December 31, 2019 Capitalized costs to obtain contracts, current ​ ​ $ 1,054 ​ $ 676 Capitalized costs to obtain contracts, non-current ​ ​ $ 4,871 ​ $ 3,222 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ ​ Nine months ended September 30, in thousands ​ ​ ​ 2020 ​ ​ 2019 ​ ​ 2020 ​ ​ 2019 Amortization of capitalized costs to obtain contracts ​ ​ $ 251 ​ $ 110 ​ $ 620 ​ $ 329 Impairments of capitalized costs to obtain contracts ​ ​ $ - ​ $ - ​ $ - ​ $ -

Inventories, net (Tables)

Inventories, net (Tables)	9 Months Ended
	Sep. 30, 2020
Inventories, net
Summary of Inventories, net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 ​ ​ (in thousands) Component parts ​ $ 6,360 ​ $ 7,429 Work-in-process and finished goods ​ 7,669 ​ 12,390 Total ​ $ 14,029 ​ $ 19,819

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill
Schedule of Goodwill Activity	​ ​ ​ ​ ​ in thousands ​ ​ ​ Net balance at December 31, 2019 $ 94,612 Net foreign currency translation ​ (453) Net balance at September 30, 2020 ​ $ 94,159 ​ ​ ​ ​

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Intangible Assets
Schedule of intangible asset activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands Acquired Technology Customer Relationships Other Total Intangible Assets Net balance at December 31, 2019 ​ $ 5,454 ​ $ 26,884 ​ $ 3,871 ​ $ 36,209 Additions ​ 43 ​ ​ — ​ ​ 55 ​ 98 Disposals ​ ​ — ​ ​ — ​ ​ (6) ​ ​ (6) Net foreign currency translation ​ (91) ​ ​ (418) ​ ​ — ​ (509) Amortization expense ​ (2,576) ​ ​ (2,708) ​ ​ (1,765) ​ (7,049) Net balance at September 30, 2020 ​ $ 2,830 ​ $ 23,758 ​ $ 2,155 ​ $ 28,743 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 balance at cost ​ $ 42,739 ​ $ 39,207 ​ $ 13,726 ​ $ 95,672 Accumulated amortization ​ (39,909) ​ (15,449) ​ (11,571) ​ (66,929) Net balance at September 30, 2020 ​ $ 2,830 ​ $ 23,758 ​ $ 2,155 ​ $ 28,743

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
Property and Equipment
Schedule of major classes of property and equipment	​ ​ ​ ​ ​ ​ ​ ​ in thousands September 30, 2020 December 31, 2019 Office equipment and software ​ $ 14,921 ​ $ 14,595 Leasehold improvements ​ ​ 10,657 ​ ​ 9,417 Furniture and fixtures ​ 3,935 ​ 3,717 Total ​ 29,513 ​ 27,729 Accumulated depreciation ​ (17,453) ​ (16,275) Property and equipment, net ​ $ 12,060 ​ $ 11,454

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Schedule of assets that are measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at Reporting Date Using in thousands ​ ​ September 30, 2020 ​ Quoted Prices in Active Markets for Identical Assets (Level 1) ​ Significant Other Observable Inputs (Level 2) ​ Significant Unobservable Inputs (Level 3) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury Notes ​ $ 4,500 ​ - $ 4,500 ​ - Corporate Notes / Bonds ​ $ 10,711 ​ - $ 10,711 ​ - Commercial Paper ​ $ 2,599 ​ - $ 2,599 ​ - U.S. Treasury Bills ​ $ 5,257 ​ - $ 5,257 ​ - U.S. Government Agencies ​ $ 3,744 ​ - $ 3,744 ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at Reporting Date Using in thousands ​ ​ December 31, 2019 ​ Quoted Prices in Active Markets for Identical Assets (Level 1) ​ Significant Other Observable Inputs (Level 2) ​ Significant Unobservable Inputs (Level 3) Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury Notes ​ $ 9,225 ​ - $ 9,225 ​ - Corporate Notes / Bonds ​ $ 8,169 ​ - $ 8,169 ​ - Commercial Paper ​ $ 3,482 ​ - $ 3,482 ​ - U.S. Treasury Bills ​ $ 2,385 ​ - $ 2,385 ​ - U.S. Government Agencies ​ $ 2,249 ​ - $ 2,249 ​ -

Allowance for credit losses (Ta

Allowance for credit losses (Tables)	9 Months Ended
	Sep. 30, 2020
Allowance for credit losses
Schedule of changes in the allowance for doubtful accounts	​ ​ ​ ​ ​ in thousands ​ ​ ​ Balance at December 31, 2019 ​ $ 2,524 Impact of ASU 2016-13 adoption ​ ​ 288 Balance at January 1, 2020 ​ ​ 2,812 Provision ​ ​ 1,510 Write-offs ​ ​ (488) Net foreign currency translation ​ ​ 3 Balance at September 30, 2020 ​ $ 3,837

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Schedule of operating lease costs	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 ​ ​ (in thousands) ​ (in thousands) Building rent ​ $ 808 ​ $ 955 ​ $ 2,264 ​ $ 2,676 Automobile rentals ​ 426 ​ 603 ​ 1,137 ​ 1,113 Total net operating lease costs ​ $ 1,234 ​ $ 1,558 ​ $ 3,401 ​ $ 3,789
Schedule of maturities of operating leases	​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ ​ ​ (in $ thousands) 2020 (remaining 3 months) ​ $ 661 2021 ​ ​ 3,413 2022 ​ ​ 3,010 2023 ​ ​ 2,429 2024 ​ ​ 1,635 Later years ​ ​ 7,277 Less imputed interest ​ ​ (3,291) Total lease liabilities ​ $ 15,134

Long-Term Compensation Plan a_2

Long-Term Compensation Plan and Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Long-Term Compensation Plan and Stock Based Compensation
Summary of compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 ​ in thousands ​ (in thousands) ​ (in thousands) ​ Restricted stock ​ $ 1,021 ​ $ 549 ​ $ 3,231 ​ $ 1,778 ​ Long-term compensation plan ​ 260 ​ 280 ​ 930 ​ 1,538 ​ Total compensation ​ $ 1,281 ​ $ 829 ​ $ 4,161 ​ $ 3,316 ​

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings per Share
Details of Earnings Per Share Calculations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, in thousands, except per share data 2020 2019 2020 2019 ​ Net income (loss) ​ $ (1,678) ​ $ 11,847 ​ $ (3,699) ​ $ 3,280 ​ Weighted average common shares outstanding: ​ ​ ​ ​ ​ Basic ​ 40,033 ​ 40,062 ​ 40,050 ​ 40,037 ​ Incremental shares with dilutive effect: ​ ​ ​ ​ ​ ​ ​ Restricted stock awards ​ — ​ 67 ​ — ​ 62 ​ Diluted ​ 40,033 ​ 40,129 ​ 40,050 ​ 40,099 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per share: ​ ​ ​ ​ ​ Basic ​ $ (0.04) ​ $ 0.30 ​ $ (0.09) ​ $ 0.08 ​ Diluted ​ $ (0.04) ​ $ 0.30 ​ $ (0.09) ​ $ 0.08 ​

Description of the Company an_3

Description of the Company and Basis of Presentation (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 10, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income (loss) before taxes	$ (1,583)			$ 15,702			$ (1,941)	$ 7,488
Net income (loss)	(1,678)	$ (2,025)	$ 4	11,847	$ (2,511)	$ (6,056)	(3,699)	3,280
Gain (loss) from foreign currency transactions	$ 400			1,900			$ 100	2,600
Amount the company can repurchase									$ 50,000
Number of shares repurchased under the program	0						0
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income (loss) before taxes			(100)	(34)				(614)
Net income (loss)			$ (94)	$ (25)	$ (50)	$ (385)		$ (459)

Description of the Company an_4

Description of the Company and Basis of Presentation - Revised Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Pro forma Balance Sheet:
Contract assets	$ 6,609	$ 5,240
Total current assets	202,125	209,801
Contract assets - non-current	2,329	3,355
Total assets	369,533	382,542
Short-term income taxes payable	2,459	7,410
Total current liabilities	66,639	73,812
Long-term deferred revenue	12,644	15,259
Long-term income taxes payable	5,905	6,958
Total liabilities	110,317	120,248
Accumulated income	175,488	179,440
Accumulated other comprehensive income (loss)	(13,690)	(13,295)
Total stockholders' equity	259,216	262,294
Total liabilities and stockholders' equity	$ 369,533	382,542
As Previously Reported
Pro forma Balance Sheet:
Contract assets		7,058
Total current assets		211,619
Contract assets - non-current		3,565
Total assets		384,570
Short-term income taxes payable		7,711
Total current liabilities		74,113
Long-term deferred revenue		15,259
Long-term income taxes payable		6,958
Total liabilities		120,549
Accumulated income		181,167
Total stockholders' equity		264,021
Total liabilities and stockholders' equity		384,570
Adjustment
Pro forma Balance Sheet:
Contract assets		(1,818)
Total current assets		(1,818)
Contract assets - non-current		(210)
Total assets		(2,028)
Short-term income taxes payable		(301)
Total current liabilities		(301)
Total liabilities		(301)
Accumulated income		(1,727)
Total stockholders' equity		(1,727)
Total liabilities and stockholders' equity		$ (2,028)

Description of the Company an_5

Description of the Company and Basis of Presentation - Revised Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	$ 51,439			$ 79,691			$ 162,763	$ 182,953
Gross profit	35,961			53,022			112,990	122,365
Operating income	(2,355)			17,085			(3,217)	8,767
Income before taxes	(1,583)			15,702			(1,941)	7,488
Provision for income taxes	95			3,855			1,758	4,208
Net income	(1,678)	$ (2,025)	$ 4	11,847	$ (2,511)	$ (6,056)	(3,699)	3,280
Product and license
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	30,249			61,215			103,893	132,675
Services and other
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	$ 21,190			18,476			$ 58,870	50,278
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue				79,725				183,567
Gross profit				53,056				122,979
Operating income				17,119				9,381
Income before taxes				15,736				8,102
Provision for income taxes				3,864				4,363
Net income			98	11,872	(2,461)	(5,671)		3,739
As Previously Reported | Product and license
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue				61,181				133,159
As Previously Reported | Services and other
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue				18,544				50,408
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue				(34)				(614)
Gross profit				(34)				(614)
Operating income				(34)				(614)
Income before taxes			(100)	(34)				(614)
Provision for income taxes				(9)				(155)
Net income			$ (94)	(25)	$ (50)	$ (385)		(459)
Adjustment | Product and license
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue				34				(484)
Adjustment | Services and other
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue				$ (68)				$ (130)

Description of the Company an_6

Description of the Company and Basis of Presentation - Revised Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Revision of Previously Issued Financial Statements
Net income	$ (1,678)	$ (2,025)	$ 4	$ 11,847	$ (2,511)	$ (6,056)	$ (3,699)	$ 3,280
Other comprehensive loss
Comprehensive income (loss)	$ 1,771			8,813			$ (4,094)	(210)
As Previously Reported
Revision of Previously Issued Financial Statements
Net income			98	11,872	(2,461)	(5,671)		3,739
Other comprehensive loss
Comprehensive income (loss)				8,838				249
Adjustment
Revision of Previously Issued Financial Statements
Net income			$ (94)	(25)	$ (50)	$ (385)		(459)
Other comprehensive loss
Comprehensive income (loss)				$ (25)				$ (459)

Description of the Company an_7

Description of the Company and Basis of Presentation - Revised Total Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Change in Stockholders' Equity
Balance	$ 257,207	$ 258,818	$ 262,294	$ 243,578	$ 246,771	$ 251,639	$ 262,294	$ 251,639
Net income	(1,678)	(2,025)	4	11,847	(2,511)	(6,056)	(3,699)	3,280
Balance	$ 259,216	257,207	258,818	252,813	243,578	246,771	259,216	252,813
As Previously Reported
Change in Stockholders' Equity
Balance		260,639	264,021	244,815	247,958	252,441	264,021	252,441
Net income			98	11,872	(2,461)	(5,671)		3,739
Balance			260,639	254,075	244,815	247,958		254,075
Adjustment
Change in Stockholders' Equity
Balance		$ (1,821)	(1,727)	(1,237)	(1,187)	(802)	$ (1,727)	(802)
Net income			(94)	(25)	(50)	(385)		(459)
Balance			$ (1,821)	$ (1,262)	$ (1,237)	$ (1,187)		$ (1,262)

Description of the Company an_8

Description of the Company and Basis of Presentation - Revised Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ (1,678)	$ (2,025)	$ 4	$ 11,847	$ (2,511)	$ (6,056)	$ (3,699)	$ 3,280
Changes in operating assets and liabilities:
Contract assets							(379)	540
Income taxes payable							(5,985)	(2,742)
Deferred revenue							3,268	(2,318)
Net cash used in operating activities							$ 7,429	(13,662)
As Previously Reported
Cash flows from operating activities:
Net income			98	11,872	(2,461)	(5,671)		3,739
Changes in operating assets and liabilities:
Contract assets								(74)
Income taxes payable								(2,587)
Net cash used in operating activities								(13,662)
Adjustment
Cash flows from operating activities:
Net income			$ (94)	$ (25)	$ (50)	$ (385)		(459)
Changes in operating assets and liabilities:
Contract assets								614
Income taxes payable								$ (155)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Cash and Cash Equivalents
Restricted cash	$ 847	$ 847	$ 847	$ 847	$ 847
Equity Method Investment
Impairment charges			0	0
Cost of Goods and Services Sold	$ 15,478	$ 26,669	$ 49,773	60,588
Cost, Product and Service [Extensible List]	us-gaap:LicenseAndServiceMember	us-gaap:LicenseAndServiceMember
Promon
Equity Method Investment
Ownership percentage	17.00%		17.00%
Cost of Goods and Services Sold	$ 200	$ 1,200	$ 1,600	$ 2,400
Amount owed included in accounts payable and accrued liabilities	$ 1,500		$ 1,500
Letter of Credit
Cash and Cash Equivalents
Restricted Cash, Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent		Other Assets, Noncurrent		Other Assets, Noncurrent
Restricted cash	$ 800		$ 800

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jan. 01, 2020	Dec. 31, 2019
Adoption of new accounting pronouncements
Accounts receivable, net of allowance	$ 54,475		$ 62,405
Accumulated other comprehensive loss	$ (13,690)		$ (13,295)
ASU 2016-01 | Adjustment
Adoption of new accounting pronouncements
Accounts receivable, net of allowance		$ (300)
Accumulated other comprehensive loss		$ (300)

Revenue - Disaggregation of rev

Revenue - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue
Revenue	$ 51,439	$ 79,691	$ 162,763	$ 182,953
Percent of Total	100.00%	100.00%	100.00%	100.00%
Products and Licenses transferred at a point in time
Revenue
Revenue	$ 30,249	$ 61,215	$ 103,893	$ 132,675
Services transferred over time
Revenue
Revenue	21,190	18,476	58,870	50,278
EMEA
Revenue
Revenue	$ 26,684	$ 48,694	$ 88,624	$ 107,554
Percent of Total	52.00%	61.00%	54.00%	59.00%
Americas
Revenue
Revenue	$ 12,305	$ 15,605	$ 38,570	$ 42,762
Percent of Total	24.00%	20.00%	24.00%	23.00%
APAC
Revenue
Revenue	$ 12,450	$ 15,392	$ 35,569	$ 32,637
Percent of Total	24.00%	19.00%	22.00%	18.00%
Hardware products
Revenue
Revenue	$ 21,687	$ 42,027	$ 65,613	$ 95,356
Software licenses
Revenue
Revenue	8,562	19,188	38,280	37,319
Subscription
Revenue
Revenue	7,446	5,556	19,286	16,163
Professional services
Revenue
Revenue	1,353	2,338	4,100	3,995
Maintenance, support and other
Revenue
Revenue	$ 12,391	$ 10,582	$ 35,484	$ 30,120

Revenue - Contract balances (De

Revenue - Contract balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Contract balances
Revenue recognized that was included in the balance sheet	$ 29,200
Contract Assets (current and non-current)	8,938	$ 8,595
Contract Liabilities (Deferred Revenue current and non-current)	$ 49,251	$ 45,597
Revenue, Practical Expedient, Financing Component [true/false]	true
Minimum
Contract balances
The amount of time contract assets are transferred to receivables	3 years
Maximum
Contract balances
The amount of time contract assets are transferred to receivables	5 years

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Revenue
Future revenue related to current unsatisfied performance obligations	$ 36,749
Remaining performance obligations	true
Original expected durations	true
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true/false]	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Future revenue related to current unsatisfied performance obligations	$ 3,418
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Future revenue related to current unsatisfied performance obligations	$ 11,820
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Future revenue related to current unsatisfied performance obligations	$ 8,825
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	9 months
Future revenue related to current unsatisfied performance obligations	$ 12,686

Revenue - Capitalized Costs and

Revenue - Capitalized Costs and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Revenue
Amortization period	7 years		7 years
Capitalized costs to obtain contracts, current	$ 1,054		$ 1,054		$ 676
Capitalized costs to obtain contracts, non-current	4,871		4,871		$ 3,222
Amortization of capitalized costs to obtain contracts	$ 251	$ 110	$ 620	$ 329

Inventories, net - Summary of I

Inventories, net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories, net
Component parts	$ 6,360	$ 7,429
Work-in-process and finished goods	7,669	12,390
Total	$ 14,029	$ 19,819

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Goodwill
Net balance at beginning of period	$ 94,612
Net foreign currency translation	(453)
Net balance at end of period	94,159
Goodwill impairment	$ 0	$ 0

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020
Intangible asset activity
Net balance			$ 36,209
Additions			98
Disposals-Other			(6)
Net foreign currency translation			(509)
Amortization expense	$ (2,360)	$ (2,335)	(7,049)	$ (7,051)
Net balance	28,743		28,743
Intangible assets, net
Balance at cost					$ 95,672
Accumulated amortization					(66,929)
Ending Balance	28,743		36,209		28,743
Impairment charges			0	$ 0
Acquired Technology
Intangible asset activity
Net balance			5,454
Additions			43
Net foreign currency translation			(91)
Amortization expense			(2,576)
Net balance	2,830		2,830
Intangible assets, net
Balance at cost					42,739
Accumulated amortization					(39,909)
Ending Balance	2,830		2,830		2,830
Customer relationships
Intangible asset activity
Net balance			26,884
Net foreign currency translation			(418)
Amortization expense			(2,708)
Net balance	23,758		23,758
Intangible assets, net
Balance at cost					39,207
Accumulated amortization					(15,449)
Ending Balance	23,758		23,758		23,758
Other
Intangible asset activity
Net balance			3,871
Additions			55
Disposals-Other			(6)
Amortization expense			(1,765)
Net balance	2,155		2,155
Intangible assets, net
Balance at cost					13,726
Accumulated amortization					(11,571)
Ending Balance	$ 2,155		$ 2,155		$ 2,155

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total	$ 29,513		$ 29,513		$ 27,729
Accumulated depreciation	(17,453)		(17,453)		(16,275)
Property and equipment, net	12,060		12,060		11,454
Depreciation expense	700	$ 500	2,100	$ 1,500
Office equipment and software
Property, Plant and Equipment [Line Items]
Total	14,921		14,921		14,595
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Total	10,657		10,657		9,417
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	$ 3,935		$ 3,935		$ 3,717

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
U.S. Treasury Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 4,500	$ 9,225
U.S. Treasury Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	4,500	9,225
Corporate Notes / Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10,711	8,169
Corporate Notes / Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10,711	8,169
Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	2,599	3,482
Commercial Paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	2,599	3,482
U.S. Treasury Bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	5,257	2,385
U.S. Treasury Bills | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	5,257	2,385
U.S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	3,744	2,249
U.S. Government Agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 3,744	$ 2,249

Allowance for credit losses (De

Allowance for credit losses (Details) - USD ($) $ in Thousands	Jan. 01, 2020	Sep. 30, 2020
Changes in the allowance for credit losses
Write-offs		$ (488)
Ending Balance	$ 2,524
Impact of ASU 2016-13 adoption
Changes in the allowance for credit losses
Provision	288	1,510
Net foreign currency translation		3
Ending Balance	$ 2,812	$ 3,837

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating lease cost	$ 1,234	$ 1,558	$ 3,401	$ 3,789
Other information related to operating leases
Cash payments to settle a lease liability reported in cash flows			3,000
Right-of-use assets obtained in exchange for new lease liabilities			$ 3,200
Weighted-average discount rate	5.00%		5.00%
Weighted average remaining lease term	7 years		7 years
Building
Operating lease cost	$ 808	955	$ 2,264	2,676
Automobile
Operating lease cost	$ 426	$ 603	$ 1,137	$ 1,113

Leases - Maturities of our oper

Leases - Maturities of our operating leases (Details) $ in Thousands	Sep. 30, 2020USD ($)
Maturities of operating leases
2020 (remaining 3 months)	$ 661
2021	3,413
2022	3,010
2023	2,429
2024	1,635
Later years	7,277
Less imputed interest	(3,291)
Total lease liabilities	$ 15,134

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Taxes
Provision for income taxes	$ 95	$ 3,855	$ 1,758	$ 4,208
Statutory tax rate			21.00%
Income taxes paid	$ 200		$ 8,000
Deferred tax assets, foreign and state NOL carryforwards					$ 24,900
Foreign and state, net operating loss (NOL) carryforwards					16,600
Other foreign deductible carryforwards					8,300
Deferred tax assets, valuation allowance					$ 17,300

Long-Term Compensation Plan a_3

Long-Term Compensation Plan and Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended					9 Months Ended	12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Plan information
Restricted stock awards	$ 1,022	$ 860	$ 1,350	$ 677	$ 552
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria
Plan information
Stock based compensation awards issued shares						321
Restricted stock awards						$ 5,700
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria | Minimum
Plan information
Vesting period (in years)						1 year
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria | Maximum
Plan information
Vesting period (in years)						4 years
2019 Omnibus Incentive Plan | Restricted Stock, subject to future performance criteria
Plan information
Stock based compensation awards issued shares						198	8	106
Restricted stock awards						$ 4,100
2019 Omnibus Incentive Plan | Restricted Stock, subject to market conditions
Plan information
Stock based compensation awards issued shares						88,000,000
Restricted stock awards						$ 1,600
Vesting period (in years)						3 years

Long-Term Compensation Plan a_4

Long-Term Compensation Plan and Stock Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Compensation expense
Restricted stock	$ 1,021	$ 549	$ 3,231	$ 1,778
Long-term compensation plan	260	280	930	1,538
Total Compensation	$ 1,281	$ 829	$ 4,161	$ 3,316

Earnings per Share - Details of

Earnings per Share - Details of Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings per Share
Net income	$ (1,678)	$ (2,025)	$ 4	$ 11,847	$ (2,511)	$ (6,056)	$ (3,699)	$ 3,280
Weighted average common shares outstanding:
Basic (in shares)	40,033			40,062			40,050	40,037
Incremental shares with dilutive effect:
Restricted stock awards (in shares)				67				62
Diluted (in shares)	40,033			40,129			40,050	40,099
Basic (in dollars per share)	$ (0.04)			$ 0.30			$ (0.09)	$ 0.08
Diluted (in dollars per share)	$ (0.04)			$ 0.30			$ (0.09)	$ 0.08