OneSpan (OSPN) 10-Q 3 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Document And Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2022
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	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,020,902
Entity Central Index Key	0001044777
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and equivalents	$ 83,645	$ 63,380
Short term investments	36,302	35,108
Accounts receivable, net of allowances of $2,292 in 2022 and $1,419 in 2021	35,704	56,612
Inventories, net	10,388	10,345
Prepaid expenses	7,656	7,594
Contract assets	5,410	4,694
Other current assets	9,591	9,356
Total current assets	188,696	187,089
Property and equipment, net	10,253	10,757
Operating lease right-of-use assets	8,849	9,197
Goodwill	94,586	96,174
Intangible assets, net of accumulated amortization	19,728	21,270
Deferred income taxes	3,679	3,786
Contract assets - non-current	318	195
Other assets	9,802	13,803
Total assets	335,911	342,271
Current liabilities
Accounts payable	7,231	8,204
Deferred revenue	50,988	54,617
Accrued wages and payroll taxes	14,109	16,607
Short-term income taxes payable	735	1,103
Other accrued expenses	7,297	7,668
Deferred compensation	80	877
Total current liabilities	80,440	89,076
Long-term deferred revenue	7,326	9,125
Long-term lease liabilities	9,932	10,180
Other long-term liabilities	7,554	7,770
Long-term income taxes payable	5,054	5,054
Deferred income taxes	2,010	1,286
Total liabilities	112,316	122,491
Stockholders' equity
Preferred stock: 500 shares authorized, none issued and outstanding at March 31, 2022 and December 31, 2021
Common stock: $.001 par value per share, 75,000 shares authorized; 40,613 and 40,593 shares issued; 40,001 and 40,001 shares outstanding at March 31, 2022 and December 31, 2021, respectively	40	40
Additional paid-in capital	100,975	100,250
Treasury stock, at cost, 592 and 592 shares outstanding at March 31, 2022 and December 31, 2021, respectively	(12,501)	(12,501)
Retained earnings	148,387	143,173
Accumulated other comprehensive loss	(13,306)	(11,182)
Total stockholders' equity	223,595	219,780
Total liabilities and stockholders' equity	$ 335,911	$ 342,271

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts	$ 2,292	$ 1,419
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	40,613,000	40,593,000
Common stock, shares outstanding	40,021,000	40,001,000
Treasury stock, at cost	592	592

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue
Total revenue	$ 52,447	$ 50,775
Cost of goods sold
Costs of good sold	15,769	16,533
Gross profit	36,678	34,242
Operating costs
Sales and marketing	15,895	17,168
Research and development	13,749	12,244
General and administrative	14,895	12,551
Amortization of Intangible Assets	1,382	1,573
Total operating costs	45,921	43,536
Operating loss	(9,243)	(9,294)
Interest income, (expense), net	(17)	4
Other income (expense), net	15,647	(362)
Income (loss) before income taxes	6,387	(9,652)
Provision (benefit) for income taxes	1,173	(501)
Net income (loss)	$ 5,214	$ (9,151)
Net income (loss) per share
Basic	$ 0.13	$ (0.23)
Diluted	$ 0.13	$ (0.23)
Weighted average common shares outstanding
Basic	39,577	39,996
Diluted	39,687	39,996
Product and license
Revenue
Total revenue	$ 29,485	$ 28,445
Cost of goods sold
Costs of good sold	9,079	10,752
Services and other
Revenue
Total revenue	22,962	22,330
Cost of goods sold
Costs of good sold	$ 6,690	$ 5,781

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net income (loss)	$ 5,214	$ (9,151)
Other comprehensive loss
Cumulative translation adjustment, net of tax	(2,020)	(919)
Pension adjustment, net of tax	(25)
Unrealized gains (loss) on available-for-sale securities	(79)	(15)
Comprehensive income (loss)	$ 3,090	$ (10,085)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Treasury - Common Stock	Additional Paid-in Capital [Member]	Accumulated Income [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2020	$ 40	$ (5,030)	$ 98,819	$ 173,731	$ (10,220)	$ 257,340
Balance (in shares) at Dec. 31, 2020	40,103	250
Net income (loss)				(9,151)		(9,151)
Foreign currency translation adjustment, net of tax				22	(919)	(897)
Restricted stock awards			1,342			1,342
Restricted stock awards, Shares	248
Tax payments for stock issuances			(2,139)			(2,139)
Tax payments for stock issuances, Shares	(86)
Unrealized gains (loss) on available-for-sale securities					(15)	(15)
Balance at Mar. 31, 2021	$ 40	$ (5,030)	98,022	164,602	(11,154)	246,480
Balance (in shares) at Mar. 31, 2021	40,265	250
Balance at Dec. 31, 2021	$ 40	$ (12,501)	100,250	143,173	(11,182)	219,780
Balance (in shares) at Dec. 31, 2021	40,001	592
Net income (loss)				5,214		5,214
Foreign currency translation adjustment, net of tax					(2,020)	(2,020)
Restricted stock awards			1,360			1,360
Restricted stock awards, Shares	(34)
Tax payments for stock issuances			(635)			(635)
Tax payments for stock issuances, Shares	(14)
Unrealized gains (loss) on available-for-sale securities					(79)	(79)
Pension adjustment, net of tax					(25)	(25)
Balance at Mar. 31, 2022	$ 40	$ (12,501)	$ 100,975	$ 148,387	$ (13,306)	$ 223,595
Balance (in shares) at Mar. 31, 2022	40,021	592

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income (loss) from operations		$ 5,214	$ (9,151)
Adjustments to reconcile net loss from operations to net cash provided by (used in) operations:
Depreciation and amortization of intangible assets		2,097	2,310
Loss on disposal of assets		1	22
Gain on sale of equity-method investment		(14,810)
Deferred tax benefit		794	(732)
Stock-based compensation		1,360	1,342
Changes in operating assets and liabilities:
Accounts receivable		19,893	8,554
Allowance for doubtful accounts		666	34
Inventories, net		(260)	1,748
Contract assets		(904)	2,346
Accounts payable		(941)	140
Income taxes payable		(332)	(1,634)
Accrued expenses		(2,723)	3,090
Deferred compensation		(797)	(1,527)
Deferred revenue		(5,156)	322
Other assets and liabilities		(442)	(3,281)
Net cash provided by operating activities		3,660	3,583
Cash flows from investing activities:
Purchase of short term investments		(15,812)	(25,234)
Maturities of short term investments		14,500	7,565
Additions to property and equipment		(272)	(755)
Additions to intangible assets		(7)	(16)
Sale of equity-method investment		(18,874)
Net cash provided by (used in) investing activities		17,283	(18,440)
Cash flows from financing activities:
Tax payments for restricted stock issuances		(635)	(2,139)
Net cash used in financing activities		(635)	(2,139)
Effect of exchange rate changes on cash		(45)	(558)
Net increase (decrease) in cash		20,263	(17,554)
Cash, cash equivalents, and restricted cash, beginning of period		64,228	89,241
Cash, cash equivalents, and restricted cash, end of period	[1]	84,491	71,687
Supplemental cash flow disclosures:
Restricted Cash		$ 800	$ 900
[1]	End of period cash, cash equivalents, and restricted cash includes $0.8 million and $0.9 million of restricted cash at March 31, 2022 and March 31, 2021, respectively.

Description of the Company and

Description of the Company and Basis of Presentation	3 Months Ended
	Mar. 31, 2022
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, 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, 2021. 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 intercompany accounts and transactions have been eliminated. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ended December 31, 2022, particularly in light of the novel coronavirus (COVID-19) pandemic and its effects on domestic and global economies. ​ We continue to actively address the effects of the COVID-19 pandemic and its impact globally. During the three months ended March 31, 2022, we experienced lengthened sales cycles and supply chain constraints in connection with the COVID-19 pandemic. In prior periods, we also experienced reduced demand for certain of our hardware products and software solutions. While we hope that the negative consequences on our business associated with the COVID-19 pandemic will subside, we cannot predict the impact with certainty. ​ Revision of Previously Issued Financial Statements ​ 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, 2021 and 2020, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021. ​ The following table presents the effects of the aforementioned revisions on our unaudited condensed consolidated statement of operations for the three months ended March 31, 2022. ​ Condensed Consolidated Statement of Operations (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2021 in thousands As Previously Reported Adjustments ​ As Revised Cost of goods sold ​ ​ ​ ​ ​ ​ ​ ​ ​ Product and license ​ $ 9,541 ​ $ 1,211 ​ $ 10,752 Total cost of goods sold ​ 15,322 ​ ​ 1,211 ​ 16,533 ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ 35,453 ​ ​ (1,211) ​ ​ 34,242 ​ ​ ​ ​ ​ ​ ​ ​ Operating costs ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales and marketing ​ 18,379 ​ ​ (1,211) ​ 17,168 Total operating costs ​ 44,747 ​ ​ (1,211) ​ 43,536 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 losses aggregated $0.4 million for the three months ended March 31, 2022. Foreign exchange transaction losses aggregated $0.7 million for the three months ended March 31, 2021. 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	3 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies 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, 2021, filed with the SEC on February 22, 2022 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 lease agreements that require letters of credit to secure the obligations. The restricted cash related to these letters of credit is recorded in other non-current assets on the Condensed Consolidated Balance Sheet in the amounts of $0.8 million and $0.8 million at March 31, 2022 and December 31, 2021, respectively. ​ Sale of Equity Method Investment ​ On January 31, 2022, we sold our equity interest in Promon AS (Promon) for $18.9 million, and recorded the gain on sale of $14.8 million in other income (expense) on the Condensed Consolidated Statement of Operations during the three months ended March 31, 2022. 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 intend to continue to purchase and integrate Promon’s RASP technology into our customer software solutions. ​ Recently Issued Accounting Pronouncements 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	3 Months Ended
	Mar. 31, 2022
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 March 31, ​ ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ Hardware products ​ ​ $ 15,352 ​ $ 17,668 Software licenses ​ ​ ​ 14,133 ​ ​ 10,777 Subscription ​ ​ ​ 10,117 ​ ​ 8,405 Professional services ​ ​ ​ 900 ​ ​ 1,402 Maintenance, support, and other ​ ​ ​ 11,945 ​ ​ 12,523 Total Revenue ​ ​ $ 52,447 ​ $ 50,775 ​ Revenue by location of customer for the three months ended March 31, 2022 and 2021 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EMEA Americas APAC Total Total Revenue: ​ ​ ​ ​ ​ 2022 ​ $ 24,876 ​ $ 17,249 ​ $ 10,322 ​ $ 52,447 ​ 2021 ​ $ 26,989 ​ $ 16,528 ​ $ 7,258 ​ $ 50,775 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of Total: ​ ​ ​ ​ ​ 2022 ​ 47 % 33 % 20 % 100 % 2021 ​ 53 % 33 % 14 % 100 % ​ Timing of revenue recognition (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Three Months ended March 31, ​ 2022 2021 Products and Licenses transferred at a point in time $ 29,485 ​ $ 28,445 Services transferred over time ​ 22,962 ​ ​ 22,330 Total Revenue $ 52,447 ​ $ 50,775 ​ Contract balances (in thousands) ​ The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, in thousands ​ 2022 ​ 2021 Receivables, inclusive of trade and unbilled ​ $ 35,704 ​ $ 56,612 Contract Assets (current and non-current) ​ $ 5,728 ​ $ 4,889 Contract Liabilities (Deferred Revenue current and non-current) ​ $ 58,314 ​ $ 63,742 ​ 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 three months ended March 31, 2022 included $18.9 million that was included on the December 31, 2021 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 ​ 2022 ​ 2023 ​ 2024 ​ Beyond 2024 ​ Total Future revenue related to current unsatisfied performance obligations ​ $ 26,140 ​ $ 18,421 ​ $ 9,547 ​ $ 5,581 ​ $ 59,689 ​ 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 period: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands ​ ​ ​ March 31, 2022 ​ ​ December 31, 2021 ​ Capitalized costs to obtain contracts, current ​ ​ $ 2,246 ​ $ 2,134 ​ Capitalized costs to obtain contracts, non-current ​ ​ $ 8,781 ​ $ 8,675 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ in thousands ​ ​ ​ 2022 ​ ​ 2021 ​ Amortization of capitalized costs to obtain contracts ​ ​ $ 541 ​ $ 310 ​ Impairments of capitalized costs to obtain contracts ​ ​ $ - ​ $ - ​ ​

Inventories, net

Inventories, net	3 Months Ended
	Mar. 31, 2022
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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2022 2021 ​ ​ (in thousands) Component parts ​ $ 4,263 ​ $ 3,841 Work-in-process and finished goods ​ 6,125 ​ 6,504 Total ​ $ 10,388 ​ $ 10,345 ​

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2022
Goodwill
Goodwill	Note 5 – Goodwill Goodwill activity for the three months ended March 31, 2022 consisted of the following: ​ ​ ​ ​ ​ in thousands ​ ​ ​ Net balance at December 31, 2021 $ 96,174 Net foreign currency translation ​ (1,588) Net balance at March 31, 2022 ​ $ 94,586 ​ No impairment of goodwill was recorded during the three months ended March 31, 2022 or March 31, 2021.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2022
Intangible Assets
Intangible Assets	Note 6 – Intangible Assets Intangible asset activity for the three months ended March 31, 2022 is detailed in the following table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands Acquired Technology Customer Relationships Other Total Intangible Assets Net balance at December 31, 2021 ​ $ 753 ​ $ 19,161 ​ $ 1,356 ​ $ 21,270 Additions ​ 3 ​ ​ — ​ ​ 6 ​ 9 Net foreign currency translation ​ (11) ​ ​ (155) ​ ​ (3) ​ (169) Amortization expense ​ (376) ​ ​ (988) ​ ​ (18) ​ (1,382) Net balance at March 31, 2022 ​ $ 369 ​ $ 18,018 ​ $ 1,341 ​ $ 19,728 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 balance at cost ​ $ 42,903 ​ $ 39,455 ​ $ 13,542 ​ $ 95,900 Accumulated amortization ​ (42,534) ​ (21,437) ​ (12,201) ​ (76,172) Net balance at March 31, 2022 ​ $ 369 ​ $ 18,018 ​ $ 1,341 ​ $ 19,728 ​ 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 three months ended March 31, 2022 or March 31, 2021.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2022
Property and Equipment
Property and Equipment	Note 7 – Property and Equipment The major classes of property and equipment are as follows: ​ ​ ​ ​ ​ ​ ​ ​ in thousands March 31, 2022 December 31, 2021 Office equipment and software ​ $ 14,502 ​ $ 14,327 Leasehold improvements ​ ​ 10,236 ​ ​ 10,296 Furniture and fixtures ​ 4,198 ​ 4,223 Total ​ 28,936 ​ 28,846 Accumulated depreciation ​ (18,683) ​ (18,089) Property and equipment, net ​ $ 10,253 ​ $ 10,757 ​ Depreciation expense was $0.7 million and $0.7 million and for the three months ended March 31, 2022 and March 31, 2021, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
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. In accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments , we review available-for-sale debt securities for impairments related to losses and other factors each quarter. Unrealized gains and losses are recorded to other comprehensive income. The unrealized gains and losses on the available-for-sale debt securities were not material as of March 31, 2022 and December 31, 2021. ​ 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 March 31, 2022 and December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at Reporting Date Using in thousands ​ ​ March 31, 2022 ​ 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 ​ $ 4,010 ​ - $ 4,010 ​ - Corporate Notes / Bonds ​ $ 9,378 ​ - $ 9,378 ​ - Commercial Paper ​ $ 9,959 ​ - $ 9,959 ​ - U.S. Treasury Bills ​ $ 12,955 ​ - $ 12,955 ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at Reporting Date Using in thousands ​ ​ December 31, 2021 ​ 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 ​ $ 4,038 ​ - $ 4,038 ​ - Corporate Notes / Bonds ​ $ 9,585 ​ - $ 9,585 ​ - Commercial Paper ​ $ 8,996 ​ - $ 8,996 ​ - U.S. Treasury Bills ​ $ 9,990 ​ - $ 9,990 ​ - U.S. Government Agencies ​ $ 2,499 ​ - $ 2,499 ​ - ​

Allowance for credit losses

Allowance for credit losses	3 Months Ended
	Mar. 31, 2022
Allowance for credit losses
Allowance for credit losses	Note 9 – Allowance for credit losses ​ The changes in the allowance for credit losses during the three months ended March 31, 2022 were as follows: ​ ​ ​ ​ ​ in thousands ​ ​ ​ Balance at December 31, 2021 ​ $ 1,419 Provision ​ ​ 875 Write-offs ​ ​ 19 Net foreign currency translation ​ ​ (21) Balance at March 31, 2022 ​ $ 2,292 ​

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Note 10 – Leases Operating lease cost details for the three months ended March 31, 2022 and 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ ​ March 31, ​ ​ 2022 2021 ​ ​ ​ (in thousands) ​ Building rent ​ $ 575 ​ $ 570 ​ Automobile rentals ​ ​ 220 ​ ​ 333 ​ Total net operating lease costs ​ $ 795 ​ $ 903 ​ ​ At March 31, 2022, the weighted average remaining lease term for our operating leases is 6.3 years. The weighted average discount rate for our operating leases is 5%. ​ During the three months ended March 31, 2022, there were $0.9 million of operating cash payments for lease liabilities, and $0.4 million of right-of use assets obtained in exchange for new lease liabilities. ​ Maturities of our operating leases are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2022 ​ ​ ​ ​ ​ (in $ thousands) ​ ​ ​ 2022 ​ $ 2,216 ​ ​ ​ 2023 ​ ​ 2,627 ​ ​ ​ 2024 ​ ​ 1,885 ​ ​ ​ 2025 ​ ​ 1,776 ​ ​ ​ 2026 ​ ​ 1,714 ​ ​ ​ Later years ​ ​ 4,391 ​ ​ ​ Less imputed interest ​ ​ (2,333) ​ ​ ​ Total lease liabilities ​ $ 12,276 ​ ​ ​ ​

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Taxes
Income Taxes	Note 11 – Income Taxes Our estimated annual effective tax rate for 2022 before discrete items and excluding entities with a valuation allowance is expected to be approximately 23%. Our global effective tax rate is higher than the U.S. statutory tax rate of 21% primarily due to nondeductible expenses. ​ Management assesses the need for a valuation allowance on a regular basis, weighing all positive and negative evidence to determine whether a deferred tax asset will be fully or partially realized. In evaluating the realizability of deferred tax assets, significant pieces of negative evidence such as 3-year cumulative losses are considered. Management also reviews reversal patterns of temporary differences to determine if the Company would have sufficient taxable income due to the reversal of temporary differences to support the realization of deferred tax assets. ​ Certain 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 operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate, or decreasing our effective tax rate when reporting a loss. 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. ​ At December 31, 2021, we had deferred tax assets of $43.7 million resulting from US, foreign and state NOL carryforwards of $148.6 million and other foreign deductible carryforwards of $97.5 million. At December 31, 2021, we had a valuation allowance of $31.3 million against deferred tax assets related to certain carryforwards. ​

Long-Term Compensation Plan and

Long-Term Compensation Plan and Stock Based	3 Months Ended
	Mar. 31, 2022
Long-Term Compensation Plan and Stock Based
Stock Compensation Plans	Note 12 – Long-Term Compensation Plan and Stock Based Compensation (share counts in thousands) Omnibus Incentive Plan, we award restricted stock units subject to time-based vesting, restricted stock units which are subject to the achievement of future performance criteria and restricted stock units that are subject to the achievement of market conditions. Other long-term incentive plan compensation expense includes cash incentives. ​ We awarded 183 restricted stock units during the three months ended March 31, 2022, subject to time-based vesting. The fair value of the unissued time-based restricted stock unit grants was $3.0 million at the dates of grant and the grants are being amortized over the vesting periods of one ​ We awarded restricted stock units subject to the achievement of service and future performance criteria during the three months ended March 31, 2022, which allow for up to 46 shares to be earned if the performance criteria are fully achieved. The fair value of these awards was $0.8 million at the dates of grant and the awards are being amortized over the vesting period of three years. The Company currently believes that all of these shares are expected to be earned. ​ During the period ended March 31, 2022, other long-term incentive plan compensation accruals were reversed for certain employees who were severed from the Company. The reversal of the accrued long-term incentive plan compensation for the severed employees offset the expense for the period. The following table details long-term compensation plan and stock-based compensation expense for the three months ended March 31, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2022 2021 in thousands ​ (in thousands) Stock-based compensation ​ $ 1,360 ​ $ 1,342 Other long-term incentive plan compensation ​ (136) ​ 200 Total compensation ​ $ 1,224 ​ $ 1,542 ​

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2022
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. For the three months ended March 31, 2022, the anti-dilutive effect of our securities is immaterial. Because the Company is in a net loss position for the three months ended March 31, 2021, diluted net loss per share for this period excludes the effects of common stock equivalents, which are anti-dilutive. The details of the earnings per share calculations for the three months ended March 31, 2022 and 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, in thousands, except per share data 2022 2021 Net loss ​ $ 5,214 ​ $ (9,151) Weighted average common shares outstanding: ​ ​ Basic ​ 39,577 ​ 39,996 Incremental shares with dilutive effect: ​ ​ ​ Restricted stock awards ​ 110 ​ — Diluted ​ 39,687 ​ 39,996 ​ ​ ​ ​ ​ ​ ​ Net loss per share: ​ ​ Basic ​ $ 0.13 ​ $ (0.23) Diluted ​ $ 0.13 ​ $ (0.23) ​

Legal Proceedings and Contingen

Legal Proceedings and Contingencies	3 Months Ended
	Mar. 31, 2022
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 customer 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 ​ 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 or commercial disputes with vendors. 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.

Restructuring Plan

Restructuring Plan	3 Months Ended
	Mar. 31, 2022
Restructuring Plan
Restructuring Plan	Note 15 – Restructuring Plan ​ As part of the first phase of the Plan, we reduced headcount by eliminating positions in certain areas of the Company. The Company incurred severance and related benefits costs, which are recorded in the sales and marketing, research and development, and general and administrative expense financial statement line items in the condensed consolidated income statement for the three months ended March 31, 2022, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ March 31, ​ ​ 2022 in thousands ​ ​ ​ Operating costs ​ ​ ​ ​ ​ Sales and marketing ​ $ 895 ​ Research and development ​ ​ 1,652 ​ General and administrative ​ 112 ​ Total restructuring related expenses ​ $ 2,659 ​ ​ There are $1.6 million of restructuring related expenses recorded in Accrued Wages and Payroll Expenses on the Company’s condensed consolidated Balance Sheet at March 31, 2022. ​ The Company expects to finalize additional details regarding future phases of the multi-year strategic plan during the three months ended June 30, 2022.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
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, 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.
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.
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, 2021. 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 intercompany accounts and transactions have been eliminated. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ended December 31, 2022, particularly in light of the novel coronavirus (COVID-19) pandemic and its effects on domestic and global economies. ​ We continue to actively address the effects of the COVID-19 pandemic and its impact globally. During the three months ended March 31, 2022, we experienced lengthened sales cycles and supply chain constraints in connection with the COVID-19 pandemic. In prior periods, we also experienced reduced demand for certain of our hardware products and software solutions. While we hope that the negative consequences on our business associated with the COVID-19 pandemic will subside, we cannot predict the impact with certainty. ​
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.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash We are in lease agreements that require letters of credit to secure the obligations. The restricted cash related to these letters of credit is recorded in other non-current assets on the Condensed Consolidated Balance Sheet in the amounts of $0.8 million and $0.8 million at March 31, 2022 and December 31, 2021, respectively.
Sale of Equity Method Investment	Sale of Equity Method Investment ​ On January 31, 2022, we sold our equity interest in Promon AS (Promon) for $18.9 million, and recorded the gain on sale of $14.8 million in other income (expense) on the Condensed Consolidated Statement of Operations during the three months ended March 31, 2022. 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 intend to continue to purchase and integrate Promon’s RASP technology into our customer software solutions. ​
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 losses aggregated $0.4 million for the three months ended March 31, 2022. Foreign exchange transaction losses aggregated $0.7 million for the three months ended March 31, 2021. 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.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements 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.
Revision of Previously Issued Financial Statements	Revision of Previously Issued Financial Statements ​ 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, 2021 and 2020, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021. ​ The following table presents the effects of the aforementioned revisions on our unaudited condensed consolidated statement of operations for the three months ended March 31, 2022. ​ Condensed Consolidated Statement of Operations (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2021 in thousands As Previously Reported Adjustments ​ As Revised Cost of goods sold ​ ​ ​ ​ ​ ​ ​ ​ ​ Product and license ​ $ 9,541 ​ $ 1,211 ​ $ 10,752 Total cost of goods sold ​ 15,322 ​ ​ 1,211 ​ 16,533 ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ ​ 35,453 ​ ​ (1,211) ​ ​ 34,242 ​ ​ ​ ​ ​ ​ ​ ​ Operating costs ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales and marketing ​ 18,379 ​ ​ (1,211) ​ 17,168 Total operating costs ​ 44,747 ​ ​ (1,211) ​ 43,536 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue
Revenues disaggregated by geography, major product line and timing of revenue recognition	Revenue by major products (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ Hardware products ​ ​ $ 15,352 ​ $ 17,668 Software licenses ​ ​ ​ 14,133 ​ ​ 10,777 Subscription ​ ​ ​ 10,117 ​ ​ 8,405 Professional services ​ ​ ​ 900 ​ ​ 1,402 Maintenance, support, and other ​ ​ ​ 11,945 ​ ​ 12,523 Total Revenue ​ ​ $ 52,447 ​ $ 50,775 ​ Revenue by location of customer for the three months ended March 31, 2022 and 2021 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EMEA Americas APAC Total Total Revenue: ​ ​ ​ ​ ​ 2022 ​ $ 24,876 ​ $ 17,249 ​ $ 10,322 ​ $ 52,447 ​ 2021 ​ $ 26,989 ​ $ 16,528 ​ $ 7,258 ​ $ 50,775 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of Total: ​ ​ ​ ​ ​ 2022 ​ 47 % 33 % 20 % 100 % 2021 ​ 53 % 33 % 14 % 100 % ​ Timing of revenue recognition (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Three Months ended March 31, ​ 2022 2021 Products and Licenses transferred at a point in time $ 29,485 ​ $ 28,445 Services transferred over time ​ 22,962 ​ ​ 22,330 Total Revenue $ 52,447 ​ $ 50,775
Schedule of changes in contract assets and contract liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, in thousands ​ 2022 ​ 2021 Receivables, inclusive of trade and unbilled ​ $ 35,704 ​ $ 56,612 Contract Assets (current and non-current) ​ $ 5,728 ​ $ 4,889 Contract Liabilities (Deferred Revenue current and non-current) ​ $ 58,314 ​ $ 63,742
Schedule of estimated revenue expected to be recognized in the future	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands ​ 2022 ​ 2023 ​ 2024 ​ Beyond 2024 ​ Total Future revenue related to current unsatisfied performance obligations ​ $ 26,140 ​ $ 18,421 ​ $ 9,547 ​ $ 5,581 ​ $ 59,689
Schedule of information related to the capitalized costs and amortization recognized in the current and prior period	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands ​ ​ ​ March 31, 2022 ​ ​ December 31, 2021 ​ Capitalized costs to obtain contracts, current ​ ​ $ 2,246 ​ $ 2,134 ​ Capitalized costs to obtain contracts, non-current ​ ​ $ 8,781 ​ $ 8,675 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ in thousands ​ ​ ​ 2022 ​ ​ 2021 ​ Amortization of capitalized costs to obtain contracts ​ ​ $ 541 ​ $ 310 ​ Impairments of capitalized costs to obtain contracts ​ ​ $ - ​ $ - ​

Inventories, net (Tables)

Inventories, net (Tables)	3 Months Ended
	Mar. 31, 2022
Inventories, net
Summary of Inventories, net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2022 2021 ​ ​ (in thousands) Component parts ​ $ 4,263 ​ $ 3,841 Work-in-process and finished goods ​ 6,125 ​ 6,504 Total ​ $ 10,388 ​ $ 10,345

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill
Schedule of Goodwill Activity	​ ​ ​ ​ ​ in thousands ​ ​ ​ Net balance at December 31, 2021 $ 96,174 Net foreign currency translation ​ (1,588) Net balance at March 31, 2022 ​ $ 94,586

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2022
Intangible Assets
Schedule of intangible asset activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in thousands Acquired Technology Customer Relationships Other Total Intangible Assets Net balance at December 31, 2021 ​ $ 753 ​ $ 19,161 ​ $ 1,356 ​ $ 21,270 Additions ​ 3 ​ ​ — ​ ​ 6 ​ 9 Net foreign currency translation ​ (11) ​ ​ (155) ​ ​ (3) ​ (169) Amortization expense ​ (376) ​ ​ (988) ​ ​ (18) ​ (1,382) Net balance at March 31, 2022 ​ $ 369 ​ $ 18,018 ​ $ 1,341 ​ $ 19,728 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 balance at cost ​ $ 42,903 ​ $ 39,455 ​ $ 13,542 ​ $ 95,900 Accumulated amortization ​ (42,534) ​ (21,437) ​ (12,201) ​ (76,172) Net balance at March 31, 2022 ​ $ 369 ​ $ 18,018 ​ $ 1,341 ​ $ 19,728

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2022
Property and Equipment
Schedule of major classes of property and equipment	​ ​ ​ ​ ​ ​ ​ ​ in thousands March 31, 2022 December 31, 2021 Office equipment and software ​ $ 14,502 ​ $ 14,327 Leasehold improvements ​ ​ 10,236 ​ ​ 10,296 Furniture and fixtures ​ 4,198 ​ 4,223 Total ​ 28,936 ​ 28,846 Accumulated depreciation ​ (18,683) ​ (18,089) Property and equipment, net ​ $ 10,253 ​ $ 10,757

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
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 ​ ​ March 31, 2022 ​ 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 ​ $ 4,010 ​ - $ 4,010 ​ - Corporate Notes / Bonds ​ $ 9,378 ​ - $ 9,378 ​ - Commercial Paper ​ $ 9,959 ​ - $ 9,959 ​ - U.S. Treasury Bills ​ $ 12,955 ​ - $ 12,955 ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at Reporting Date Using in thousands ​ ​ December 31, 2021 ​ 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 ​ $ 4,038 ​ - $ 4,038 ​ - Corporate Notes / Bonds ​ $ 9,585 ​ - $ 9,585 ​ - Commercial Paper ​ $ 8,996 ​ - $ 8,996 ​ - U.S. Treasury Bills ​ $ 9,990 ​ - $ 9,990 ​ - U.S. Government Agencies ​ $ 2,499 ​ - $ 2,499 ​ -

Allowance for credit losses (Ta

Allowance for credit losses (Tables)	3 Months Ended
	Mar. 31, 2022
Allowance for credit losses
Schedule change in the allowance for credit losses	​ ​ ​ ​ ​ in thousands ​ ​ ​ Balance at December 31, 2021 ​ $ 1,419 Provision ​ ​ 875 Write-offs ​ ​ 19 Net foreign currency translation ​ ​ (21) Balance at March 31, 2022 ​ $ 2,292

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Schedule of supplemental consolidated balance sheet information related to our operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ ​ March 31, ​ ​ 2022 2021 ​ ​ ​ (in thousands) ​ Building rent ​ $ 575 ​ $ 570 ​ Automobile rentals ​ ​ 220 ​ ​ 333 ​ Total net operating lease costs ​ $ 795 ​ $ 903 ​
Schedule of maturities of operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2022 ​ ​ ​ ​ ​ (in $ thousands) ​ ​ ​ 2022 ​ $ 2,216 ​ ​ ​ 2023 ​ ​ 2,627 ​ ​ ​ 2024 ​ ​ 1,885 ​ ​ ​ 2025 ​ ​ 1,776 ​ ​ ​ 2026 ​ ​ 1,714 ​ ​ ​ Later years ​ ​ 4,391 ​ ​ ​ Less imputed interest ​ ​ (2,333) ​ ​ ​ Total lease liabilities ​ $ 12,276 ​ ​ ​

Long-Term Compensation Plan a_2

Long-Term Compensation Plan and Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Long-Term Compensation Plan and Stock Based
Summary of compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2022 2021 in thousands ​ (in thousands) Stock-based compensation ​ $ 1,360 ​ $ 1,342 Other long-term incentive plan compensation ​ (136) ​ 200 Total compensation ​ $ 1,224 ​ $ 1,542

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings per Share
Details of Earnings Per Share Calculations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, in thousands, except per share data 2022 2021 Net loss ​ $ 5,214 ​ $ (9,151) Weighted average common shares outstanding: ​ ​ Basic ​ 39,577 ​ 39,996 Incremental shares with dilutive effect: ​ ​ ​ Restricted stock awards ​ 110 ​ — Diluted ​ 39,687 ​ 39,996 ​ ​ ​ ​ ​ ​ ​ Net loss per share: ​ ​ Basic ​ $ 0.13 ​ $ (0.23) Diluted ​ $ 0.13 ​ $ (0.23)

Restructuring Plan (Tables)

Restructuring Plan (Tables)	3 Months Ended
	Mar. 31, 2022
Restructuring Plan
Schedule of severance and related benefits costs	​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ March 31, ​ ​ 2022 in thousands ​ ​ ​ Operating costs ​ ​ ​ ​ ​ Sales and marketing ​ $ 895 ​ Research and development ​ ​ 1,652 ​ General and administrative ​ 112 ​ Total restructuring related expenses ​ $ 2,659

Description of the Company an_2

Description of the Company and Basis of Presentation - Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Pro forma Income Statement:
Costs of good sold	$ 15,769	$ 16,533
Gross profit	36,678	34,242
Sales and marketing	15,895	17,168
Total operating costs	45,921	43,536
Product and license
Pro forma Income Statement:
Costs of good sold	$ 9,079	10,752
As Previously Reported [Member]
Pro forma Income Statement:
Costs of good sold		15,322
Gross profit		35,453
Sales and marketing		18,379
Total operating costs		44,747
As Previously Reported [Member] | Product and license
Pro forma Income Statement:
Costs of good sold		9,541
Adjustment [Member]
Pro forma Income Statement:
Costs of good sold		1,211
Gross profit		(1,211)
Sales and marketing		(1,211)
Total operating costs		(1,211)
Adjustment [Member] | Product and license
Pro forma Income Statement:
Costs of good sold		$ 1,211

Description of the Company an_3

Description of the Company and Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Description of the Company and Basis of Presentation
Gain (loss) from foreign currency transactions	$ 0.4	$ 0.7

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Summary of Significant Accounting Policies
Restricted Cash, Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent	Other Assets, Noncurrent	Other Assets, Noncurrent
Restricted Cash	$ 0.8	$ 0.8	$ 0.9

Summary of Significant Accoun_4

Summary of Significant Accounting policies - Equity Method Investments (Details) - Investment In Promon A - USD ($) $ in Millions	Jan. 31, 2022	Jan. 30, 2022
Equity Method Investments
Equity Method Investment, Amount Sold	$ 18.9
Equity Method Investment, Realized Gain (Loss) on Disposal, Statement of Income [Extensible Enumeration]	Other Nonoperating Income (Expense)
Equity Method Investment, Realized Gain (Loss) on Disposal	$ 14.8
Ownership percentage		17.00%

Revenue - Disaggregation of rev

Revenue - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue
Revenue	$ 52,447	$ 50,775
Percent of Total	100.00%	100.00%
Products and Licenses transferred at a point in time
Revenue
Revenue	$ 29,485	$ 28,445
Services transferred over time
Revenue
Revenue	22,962	22,330
Europe, Middle East, Africa (EMEA) [Member]
Revenue
Revenue	$ 24,876	$ 26,989
Percent of Total	47.00%	53.00%
Americas
Revenue
Revenue	$ 17,249	$ 16,528
Percent of Total	33.00%	33.00%
Asia Pacific [Member]
Revenue
Revenue	$ 10,322	$ 7,258
Percent of Total	20.00%	14.00%
Hardware products
Revenue
Revenue	$ 15,352	$ 17,668
Software licenses
Revenue
Revenue	14,133	10,777
Subscription
Revenue
Revenue	10,117	8,405
Professional services
Revenue
Revenue	900	1,402
Maintenance, support and other
Revenue
Revenue	$ 11,945	$ 12,523

Revenue - Contract balances (De

Revenue - Contract balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Contract balances
Revenue recognized that was included in the balance sheet	$ 18,900
Receivables, inclusive of trade and unbilled	35,704	$ 56,612
Contract Assets (current and non-current)	5,728	4,889
Contract Liabilities (Deferred Revenue current and non-current)	$ 58,314	$ 63,742
Revenue, Practical Expedient, Financing Component [true/false]	true
Minimum [Member]
Contract balances
The amount of time contract assets are transferred to receivables	3 years
Maximum [Member]
Contract balances
The amount of time contract assets are transferred to receivables	5 years

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Revenue
Future revenue related to current unsatisfied performance obligations	$ 59,689
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]: 2022-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	9 months
Future revenue related to current unsatisfied performance obligations	$ 26,140
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Future revenue related to current unsatisfied performance obligations	$ 18,421
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Future revenue related to current unsatisfied performance obligations	$ 9,547
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Future revenue related to current unsatisfied performance obligations	$ 5,581

Revenue - Capitalized Costs and

Revenue - Capitalized Costs and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue
Amortization period	7 years
Capitalized costs to obtain contracts, current	$ 2,246	$ 2,134
Capitalized costs to obtain contracts, non-current	8,781	8,675
Amortization of capitalized costs to obtain contracts	$ 541	$ 310

Inventories, net - Summary of I

Inventories, net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventories, net
Component parts	$ 4,263	$ 3,841
Work-in-process and finished goods	6,125	6,504
Total	$ 10,388	$ 10,345

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill
Net balance at beginning of period	$ 96,174
Net foreign currency translation	(1,588)
Net balance at end of period	94,586
Goodwill impairment	$ 0	$ 0

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Intangible asset activity
Net balance	$ 21,270
Additions	9
Net foreign currency translation	(169)
Amortization expense	(1,382)	$ (1,573)
Net balance	19,728
Intangible assets, net
Balance at cost	95,900
Accumulated amortization	(76,172)
Total intangible assets	19,728
Impairment charges	0	$ 0
Acquired Technology
Intangible asset activity
Net balance	753
Additions	3
Net foreign currency translation	(11)
Amortization expense	(376)
Net balance	369
Intangible assets, net
Balance at cost	42,903
Accumulated amortization	(42,534)
Total intangible assets	369
Customer Relationships
Intangible asset activity
Net balance	19,161
Net foreign currency translation	(155)
Amortization expense	(988)
Net balance	18,018
Intangible assets, net
Balance at cost	39,455
Accumulated amortization	(21,437)
Total intangible assets	18,018
Other
Intangible asset activity
Net balance	1,356
Additions	6
Net foreign currency translation	(3)
Amortization expense	(18)
Net balance	1,341
Intangible assets, net
Balance at cost	13,542
Accumulated amortization	(12,201)
Total intangible assets	$ 1,341

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total	$ 28,936		$ 28,846
Accumulated depreciation	(18,683)		(18,089)
Property and equipment, net	10,253		10,757
Depreciation expense	700	$ 700
Office equipment and software
Property, Plant and Equipment [Line Items]
Total	14,502		14,327
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Total	10,236		10,296
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	$ 4,198		$ 4,223

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
U.S. Treasury Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 4,010	$ 4,038
U.S. Treasury Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	4,010	4,038
Corporate Notes / Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	9,378	9,585
Corporate Notes / Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	9,378	9,585
Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	9,959	8,996
Commercial Paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	9,959	8,996
U.S. Treasury Bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	12,955	9,990
U.S. Treasury Bills | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 12,955	9,990
U.S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		2,499
U.S. Government Agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 2,499

Allowance for credit losses (De

Allowance for credit losses (Details) - Impact of ASU 2016-13 adoption $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Changes in the allowance for credit losses
Beginning Balance	$ 1,419
Provision	875
Write-offs	19
Net foreign currency translation	(21)
Ending Balance	$ 2,292

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating lease cost	$ 795	$ 903
Other information related to operating leases
Cash payments to settle a lease liability reported in cash flows	900
Right-of-use assets obtained in exchange for new lease liabilities	$ 400
Weighted-average discount rate	5.00%
Weighted average remaining lease term	6 years 3 months 18 days
Building
Operating lease cost	$ 575	570
Automobile
Operating lease cost	$ 220	$ 333

Leases - Maturities of our oper

Leases - Maturities of our operating leases (Details) $ in Thousands	Mar. 31, 2022USD ($)
Maturities of operating leases
2022	$ 2,216
2023	2,627
2024	1,885
2025	1,776
2026	1,714
Later years	4,391
Less imputed interest	(2,333)
Total lease liabilities	$ 12,276

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Dec. 31, 2021USD ($)
Income Taxes
Deferred tax assets, foreign and state NOL carryforwards	$ 43.7
Foreign and state, net operating loss (NOL) carryforwards	148.6
Other foreign deductible carryforwards	97.5
Deferred tax assets, valuation allowance	$ 31.3

Long-Term Compensation Plan a_3

Long-Term Compensation Plan and Stock Based Compensation (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)shares
Restricted Stock [Member]
Plan information
Stock based compensation awards issued shares | shares	183
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria
Plan information
Restricted stock awards | $	$ 3
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria | Minimum [Member]
Plan information
Vesting period (in years)	1 year
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria | Maximum [Member]
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 | shares	46
Restricted stock awards | $	$ 0.8
2019 Omnibus Incentive Plan | Restricted Stock, subject to future performance criteria | Maximum [Member]
Plan information
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
	Mar. 31, 2022	Mar. 31, 2021
Compensation expense
Stock-based compensation	$ 1,360	$ 1,342
Other long-term compensation plan	(136)	200
Total Compensation	$ 1,224	$ 1,542

Earnings per Share - Details of

Earnings per Share - Details of Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings per Share
Net income (loss)	$ 5,214	$ (9,151)
Weighted average common shares outstanding:
Basic	39,577	39,996
Incremental shares with dilutive effect:
Restricted stock awards (in shares)	110
Diluted (in shares)	39,687	39,996
Basic	$ 0.13	$ (0.23)
Diluted	$ 0.13	$ (0.23)

Legal Proceedings and Conting_2

Legal Proceedings and Contingencies - Rent expense and purchase obligations (Details) $ in Thousands	Mar. 31, 2022USD ($)
Legal Proceedings and Contingencies
Liabilities accrued	$ 0

Restructuring Plan - Operating

Restructuring Plan - Operating costs (Details) $ in Thousands	Mar. 31, 2022USD ($)
Restructuring Plan
Total restructuring related expenses	$ 2,659
Sales and marketing
Restructuring Plan
Total restructuring related expenses	895
Research and development
Restructuring Plan
Total restructuring related expenses	1,652
General and administrative
Restructuring Plan
Total restructuring related expenses	$ 112

Restructuring Plan (Detail)

Restructuring Plan (Detail) $ in Thousands	Mar. 31, 2022USD ($)
Restructuring Plan
Amount of restructuring related expenses	$ 2,659