Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 20, 2015 | Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EPAY | ||
Entity Registrant Name | BOTTOMLINE TECHNOLOGIES INC /DE/ | ||
Entity Central Index Key | 1,073,349 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 41,176,243 | ||
Entity Public Float | $ 984,453,507 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 121,163 | $ 167,673 |
Marketable securities | 23,225 | 23,805 |
Accounts receivable net of allowances for doubtful accounts of $924 at June 30, 2015 and $862 at June 30, 2014 | 65,140 | 61,064 |
Deferred tax assets | 5,388 | 13,904 |
Prepaid expenses and other current assets | 14,325 | 14,334 |
Total current assets | 229,241 | 280,780 |
Property and equipment, net | 47,579 | 35,901 |
Goodwill | 215,360 | 208,991 |
Intangible assets, net | 185,290 | 163,504 |
Other assets | 11,014 | 11,167 |
Total assets | 688,484 | 700,343 |
Current liabilities: | ||
Accounts payable | 11,623 | 16,283 |
Accrued expenses | 24,436 | 25,542 |
Deferred revenue | 70,383 | 66,571 |
Total current liabilities | 106,442 | 108,396 |
Convertible senior notes | 159,760 | 148,795 |
Deferred revenue, non current | 17,624 | 15,997 |
Deferred income taxes | 35,542 | 23,537 |
Other liabilities | 20,578 | 16,192 |
Total liabilities | $ 339,946 | $ 312,917 |
Stockholders' equity | ||
Preferred Stock, $.001 par value: Authorized shares-4,000; issued and outstanding shares-none | ||
Common Stock, $.001 par value: Authorized shares-100,000; issued shares-40,337 at June 30, 2015 and 39,224 at June 30, 2014; outstanding shares-38,105 at June 30, 2015 and 37,477 at June 30, 2014 | $ 40 | $ 39 |
Additional paid-in-capital | 560,083 | 530,377 |
Accumulated other comprehensive income (loss) | (13,511) | 6,816 |
Treasury Stock: 2,232 shares at June 30, 2015 and 1,747 shares at June 30, 2014, at cost | (34,167) | (20,579) |
Accumulated deficit | (163,907) | (129,227) |
Total stockholders' equity | 348,538 | 387,426 |
Total liabilities and stockholders' equity | $ 688,484 | $ 700,343 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances for doubtful accounts and returns | $ 924 | $ 862 |
Preferred Stock, $.001 par value | $ 0.001 | $ 0.001 |
Preferred Stock, Authorized shares | 4,000,000 | 4,000,000 |
Preferred Stock, Issued shares | 0 | 0 |
Preferred Stock, Outstanding shares | 0 | 0 |
Common Stock, $.001 par value | $ 0.001 | $ 0.001 |
Common Stock, Authorized shares | 100,000,000 | 100,000,000 |
Common Stock, Issued shares | 40,337,000 | 39,224,000 |
Common Stock, Outstanding shares | 38,105,000 | 37,477,000 |
Treasury stock, shares | 2,232,000 | 1,747,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues: | |||
Subscriptions and transactions | $ 171,361 | $ 141,103 | $ 118,016 |
Software licenses | 21,907 | 20,769 | 22,546 |
Service and maintenance | 130,183 | 131,531 | 106,389 |
Other | 7,438 | 7,182 | 7,823 |
Total revenues | 330,889 | 300,585 | 254,774 |
Cost of revenues: | |||
Subscriptions and transactions | 79,397 | 69,220 | 64,101 |
Software licenses | 1,583 | 1,602 | 2,399 |
Service and maintenance | 53,094 | 54,463 | 46,788 |
Other | 5,367 | 5,383 | 5,998 |
Total cost of revenues | 139,441 | 130,668 | 119,286 |
Gross profit | 191,448 | 169,917 | 135,488 |
Operating expenses: | |||
Sales and marketing | 80,151 | 72,707 | 62,825 |
Product development and engineering | 47,185 | 39,725 | 32,974 |
General and administrative | 34,492 | 33,721 | 27,076 |
Amortization of intangible assets | 30,383 | 26,242 | 19,549 |
Total operating expenses | 192,211 | 172,395 | 142,424 |
Loss from operations | (763) | (2,478) | (6,936) |
Loss on derivative instruments, net | (4,435) | ||
Interest income | 499 | 667 | 629 |
Interest expense | (14,765) | (14,222) | (7,550) |
Other expense, net | (1,287) | (989) | (1) |
Other income (expense), net | (15,553) | (14,544) | (11,357) |
Loss before income taxes | (16,316) | (17,022) | (18,293) |
Income tax provision (benefit) | 18,364 | 2,082 | (3,898) |
Net loss | $ (34,680) | $ (19,104) | $ (14,395) |
Basic and diluted net loss per share: | $ (0.92) | $ (0.52) | $ (0.41) |
Shares used in computing basic and diluted net loss per share: | 37,806 | 36,834 | 35,444 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on available for sale securities | $ (10) | $ 24 | $ (3) |
Minimum pension liability adjustments | (3,032) | 272 | |
Foreign currency translation adjustments | (17,285) | 16,980 | (3,893) |
Other comprehensive income (loss), net of tax: | (20,327) | 17,276 | (3,896) |
Comprehensive loss | $ (55,007) | $ (1,828) | $ (18,291) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] |
Beginning balance at Jun. 30, 2012 | $ 314,186 | $ 37 | $ 438,732 | $ (6,564) | $ (22,291) | $ (95,728) |
Beginning balances, shares at Jun. 30, 2012 | 36,672 | 1,931 | ||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 5,657 | 4,320 | $ 1,337 | |||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options, shares | 361 | (113) | ||||
Vesting of restricted stock awards | $ 1 | (1) | ||||
Vesting of restricted stock awards, shares | 870 | |||||
Stock compensation expense | 18,031 | 18,031 | ||||
Repurchase of common stock to be held in treasury | (934) | $ (934) | ||||
Repurchase of common stock to be held in treasury, shares | 40 | |||||
Tax benefit associated with non qualified stock option exercises and forfeitures | 50 | 50 | ||||
Derivative settlement, net of tax | 9,445 | 9,445 | ||||
Sale of warrants | 28,730 | 28,730 | ||||
Equity issuance costs | (125) | (125) | ||||
Net loss | (14,395) | (14,395) | ||||
Unrealized loss on available for sale securities, net of tax | (3) | (3) | ||||
Foreign currency translation adjustment | (3,893) | (3,893) | ||||
Ending balance at Jun. 30, 2013 | 356,749 | $ 38 | 499,182 | (10,460) | $ (21,888) | (110,123) |
Ending balance, shares at Jun. 30, 2013 | 37,903 | 1,858 | ||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 5,105 | 3,796 | $ 1,309 | |||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options, shares | 255 | (111) | ||||
Vesting of restricted stock awards | $ 1 | (1) | ||||
Vesting of restricted stock awards, shares | 952 | |||||
Stock compensation expense | 22,821 | 22,821 | ||||
Capitalized stock compensation expense | 48 | 48 | ||||
Issuance of common stock in connection with acquisitions | 3,746 | 3,746 | ||||
Issuance of common stock in connection with acquisitions, shares | 114 | |||||
Tax benefit associated with non qualified stock option exercises and forfeitures | 560 | 560 | ||||
Fair value of equity awards assumed in acquisition | 225 | 225 | ||||
Minimum pension liability adjustments, net of tax | 272 | 272 | ||||
Net loss | (19,104) | (19,104) | ||||
Unrealized loss on available for sale securities, net of tax | 24 | 24 | ||||
Foreign currency translation adjustment | 16,980 | 16,980 | ||||
Ending balance at Jun. 30, 2014 | 387,426 | $ 39 | 530,377 | 6,816 | $ (20,579) | (129,227) |
Ending balance, shares at Jun. 30, 2014 | 39,224 | 1,747 | ||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 4,091 | 2,638 | $ 1,453 | |||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options, shares | 136 | (109) | ||||
Vesting of restricted stock awards | $ 1 | (1) | ||||
Vesting of restricted stock awards, shares | 977 | 0 | ||||
Stock compensation expense | 27,025 | 27,025 | ||||
Amortization of previously capitalized stock compensation expense | (48) | (48) | ||||
Repurchase of common stock to be held in treasury | (15,041) | $ (15,041) | ||||
Repurchase of common stock to be held in treasury, shares | 0 | 594 | ||||
Tax benefit associated with non qualified stock option exercises and forfeitures | 92 | 92 | ||||
Minimum pension liability adjustments, net of tax | (3,032) | (3,032) | ||||
Net loss | (34,680) | (34,680) | ||||
Unrealized loss on available for sale securities, net of tax | (10) | (10) | ||||
Foreign currency translation adjustment | (17,285) | (17,285) | ||||
Ending balance at Jun. 30, 2015 | $ 348,538 | $ 40 | $ 560,083 | $ (13,511) | $ (34,167) | $ (163,907) |
Ending balance, shares at Jun. 30, 2015 | 40,337 | 2,232 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating activities: | |||
Net loss | $ (34,680) | $ (19,104) | $ (14,395) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Amortization of intangible assets | 30,383 | 26,242 | 19,549 |
Stock compensation expense | 27,025 | 22,821 | 18,031 |
Depreciation and amortization of property and equipment | 10,507 | 8,250 | 6,861 |
Deferred income tax benefit | 12,173 | (5,781) | (8,729) |
Provision for allowances on accounts receivable | 248 | 214 | 300 |
Excess tax benefits associated with stock compensation | (133) | (560) | (99) |
Amortization of debt issuance costs | 1,184 | 1,184 | 654 |
Amortization of debt discount | 10,965 | 10,213 | 5,326 |
Amortization of premium on investments | 388 | 366 | |
Loss on derivative instruments, net | 4,435 | ||
Loss on disposal of equipment | 4 | 54 | 87 |
Loss on foreign exchange | (2) | 35 | 21 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (310) | (5,690) | 2,195 |
Prepaid expenses and other current assets | 180 | (1,853) | 471 |
Other assets | 222 | (898) | 930 |
Accounts payable | (3,193) | 1,535 | (93) |
Accrued expenses | (1,333) | (2,253) | (2,290) |
Deferred revenue | 7,561 | 14,915 | 7,541 |
Other liabilities | 1,511 | 2,531 | 781 |
Net cash provided by operating activities | 62,700 | 52,221 | 41,576 |
Investing activities: | |||
Acquisition of businesses, net of cash acquired | (68,017) | (153,491) | (30,323) |
Purchase of cost-method investment | (3,000) | ||
Purchases of held-to-maturity securities | (96) | (78) | (62) |
Proceeds from sales of held-to-maturity securities | 96 | 55 | 62 |
Purchase of available-for-sale securities | (15,185) | (28,453) | (9,477) |
Proceeds from sales of available-for-sale securities | 15,347 | 13,873 | |
Purchases of property and equipment, net | (23,297) | (12,652) | (10,106) |
Proceeds from disposal of property and equipment | 113 | 56 | |
Net cash used in investing activities | (91,152) | (180,633) | (52,850) |
Financing activities: | |||
Proceeds from issuance of convertible senior notes | 189,750 | ||
Debt issuance costs | (5,882) | ||
Proceeds from issuance of warrants, net of issue costs | 25,776 | ||
Purchase of convertible note hedges | (42,390) | ||
Repurchase of common stock | (15,041) | (934) | |
Proceeds from exercise of stock options and employee stock purchase plan | 4,091 | 5,105 | 5,657 |
Excess tax benefits associated with stock compensation | 133 | 560 | 99 |
Capital lease payments | (95) | ||
Net cash (used in) provided by financing activities | (10,817) | 5,665 | 171,981 |
Effect of exchange rate changes on cash | (7,241) | 6,868 | (1,956) |
Decrease in cash and cash equivalents | (46,510) | (115,879) | 158,751 |
Cash and cash equivalents at beginning of period | 167,673 | 283,552 | 124,801 |
Cash and cash equivalents at end of period | 121,163 | 167,673 | 283,552 |
Supplemental disclosure of cash flow information: | |||
Interest, net of amounts capitalized | 2,854 | 2,792 | 1,347 |
Income taxes | $ 7,507 | 5,023 | $ 5,215 |
Non-cash investing and financing activities: | |||
Issuance of common stock in connection with acquisition of business | $ 3,746 |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts Allowance for Doubtful Accounts | 12 Months Ended |
Jun. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts Allowance for Doubtful Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS ALLOWANCE FOR DOUBTFUL ACCOUNTS Years Ended June 30, 2015, 2014 and 2013 Activity Year Ended Balance at (Charged to Additions and Deductions (2) Balance at (in thousands) June 30, 2015 $ 862 248 79 265 $ 924 June 30, 2014 $ 769 214 53 174 $ 862 June 30, 2013 $ 586 300 62 179 $ 769 (1) Additions primarily represent increases to the allowance for doubtful accounts balance as a result of the impact of increases in foreign currency exchange rates. (2) Deductions are principally write-offs as well as the impact of decreases in foreign currency exchange rates. |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | 1. Organization and Nature of Business Bottomline Technologies (de), Inc. is a Delaware corporation that powers mission-critical business transactions. We help our customers optimize financially-oriented operations and build deeper customer and partner relationships by providing a trusted and easy-to-use set of cloud-based digital banking, fraud prevention, payment, financial document, insurance and healthcare solutions. We offer hosted or Software as a Service (SaaS) solutions, as well as software designed to run on-site at the customer’s location. Our products and services are sold to customers operating in many different industries throughout the world, but principally in the US, UK and continental Europe regions. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Principles of Consolidation The consolidated financial statements include our accounts and the accounts of our subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates include, but are not limited to, revenue recognition (particularly revenue recognition associated with contracts accounted for on a percentage of completion basis), allowances for doubtful accounts, recoverability of deferred tax assets, determining the fair value associated with acquired assets and liabilities including deferred revenue, intangible asset and goodwill impairment, pension benefit obligations and certain other of our accrued liabilities. Actual results could differ from those estimates. Foreign Currency Translation We have international subsidiaries in Europe, in the Asia-Pacific region and in Canada, whose functional currencies are either the British Pound Sterling, Swiss Franc or European Euro (in respect of our European subsidiaries), the Australian Dollar (in respect of our Asia Pacific subsidiary) or the Canadian Dollar (in respect of our Canadian subsidiary). Assets and liabilities of all of our international subsidiaries have been translated into US dollars at year-end exchange rates, and results of operations and cash flows have been translated at the average exchange rates in effect during the year. Gains or losses resulting from foreign currency translation are included as a component of accumulated other comprehensive income or loss. Foreign currency transaction gains and losses are included in results of operations as incurred and are not significant to our overall operations. Cash and Cash Equivalents We consider all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The carrying value of these instruments approximates their fair value. At June 30, 2015, our cash equivalents consisted of demand deposit accounts and money market funds. Marketable Securities All marketable securities must be classified as one of the following: held to maturity, available for sale, or trading. At June 30, 2015 we held $23.2 million of marketable securities which consisted primarily of US treasury notes, residential mortgage-backed securities, and U.S. corporate debt securities. Our held to maturity investments, all of which mature within one year, are recorded at amortized cost and interest income is recognized in earnings when earned. The cost of securities sold is determined based on the specific identification method. At June 30, 2015 and 2014 the amortized cost of our held-to-maturity investments approximated their fair value. Our securities classified as available for sale are recorded at fair value, with all unrealized gains or losses recorded as a component of other comprehensive income or (loss). At June 30, 2015 and 2014, $12.7 million and $13.2 million, respectively, of our available for sale securities had maturities of less than one year and the remaining $10.4 million and $10.5 million, respectively, had maturities of between one and five years. The cost of securities sold is determined based on the specific identification method. At June 30, 2015 and 2014, our net unrealized loss associated with our investment securities was not significant. At June 30, 2015, the difference between the fair value of our available for sale securities and their amortized cost was not significant. The table below presents information regarding our marketable securities by major security type as of June 30, 2015 and 2014. June 30, 2015 June 30, 2014 Held to Available Total Held to Available Total (in thousands) Marketable securities: Corporate and other debt securities 65 23,160 23,225 80 23,725 23,805 Total marketable securities $ 65 $ 23,160 $ 23,225 $ 80 $ 23,725 $ 23,805 All of our available for sale marketable securities are included in current assets as we do not have the positive intent to hold these investments until maturity. The following table presents the aggregate fair values and gross unrealized losses for those available for sale investments that were in an unrealized loss position as of June 30, 2015, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: As of June 30, 2015 Less than 12 Months Fair Unrealized Loss (in thousands) Residential Mortgage Backed $ 2,011 5 U.S. Corporate 5,404 5 $ 7,415 10 Other Investments We have certain other investments accounted for at cost, as we do not have the ability to exercise significant influence over the investees. The carrying value of these investments was $3.4 million and $3.3 million as of June 30, 2015 and June 30, 2014, respectively, and they are reported as a component of our other assets. The investments are evaluated periodically for indicators of impairment and impairment losses, to the extent occurring, would be recorded as an operating expense in the period incurred. At June 30, 2015, we reviewed the carrying value of these investments and concluded that they were not impaired. Concentration of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist of cash and cash equivalents and accounts receivable. We had approximately $109.3 million of cash and cash equivalents invested with seven financial institutions at June 30, 2015. Balances of cash and cash equivalents are typically in excess of any insurance, such as FDIC coverage, that may protect our deposits. Our accounts receivable are reported in our consolidated balance sheets net of allowances for uncollectible accounts. We believe that the concentration of credit risk with respect to accounts receivable is limited due to the large number of companies and diverse industries comprising our customer base. On-going credit evaluations are performed, generally with a focus on new customers or customers with whom we have had no prior collections history, and collateral is generally not required. We maintain reserves for potential losses based on customer specific situations as well as our historic experience and such losses, in the aggregate, have not exceeded our expectations. There were no customers that, individually, accounted for more than 10% of our consolidated accounts receivable balance at June 30, 2015 or 2014. For the fiscal years ended June 30, 2015, 2014, and 2013, we had no customer that accounted for 10% or greater of our consolidated revenues. Financial Instruments The fair value of our financial instruments, which include cash and cash equivalents, marketable securities, accounts receivable and accounts payable and our convertible senior notes are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of perceived risk. The fair value of these financial instruments is discussed in Note 3—Fair Values of Assets and Liabilities. Accounts Receivable Accounts receivable include unbilled receivables of approximately $4.9 million and $1.5 million at June 30, 2015 and 2014, respectively. Unbilled receivables at June 30, 2015 arose partially from our January 2015 acquisition of Intellinx, Ltd. Unbilled receivables include revenues recognized on long-term contracts for which billings have not yet been presented to the customers, based on the contractually stipulated billing requirements. Inventory Inventory, all of which is categorized as finished goods, is stated at the lower of our cost of purchase (first-in, first-out method) or market. Property and Equipment Property and equipment are stated at cost, net of accumulated amortization and depreciation. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows: Property, equipment, furniture, fixtures and vehicles 3-7 years Software 3-5 years Technical equipment 3-5 years Building (Reading, England) 50 years Leasehold improvements Remaining lease term, inclusive of expected renewal periods Periodically, based on specific transactions, we may assign a life outside of the general range of useful lives noted here if a particular asset’s estimated period of use falls outside of the normal range. Goodwill and Other Intangible Assets We initially record goodwill and other intangible assets at their estimated fair values, and we review these assets periodically for impairment. Goodwill represents the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed in a business combination and is tested at least annually for impairment; historically during our fourth quarter. Our specifically identifiable intangible assets, which consist principally of customer related assets and core technology, are reported net of accumulated amortization and are amortized over their estimated useful lives at amortization rates that are proportional to each asset’s estimated economic benefit. We review the carrying value of these intangible assets annually, or more frequently if indicators of impairment are present. In performing our review of the recoverability of goodwill and other intangible assets we consider several factors, including whether there have been significant changes in legal factors or the overall business climate that could affect the underlying value of an asset. We also consider whether there is an expectation that the asset will be sold or disposed of before the end of its originally estimated useful life. In the case of goodwill, we must estimate the fair value of the reporting unit to which the goodwill is assigned. If as a result of examining any of these factors we conclude that the carrying value of goodwill or any other intangible asset exceeds its estimated fair value, we will recognize an impairment charge and reduce the carrying value of the asset to its estimated fair value. Advertising Costs We expense advertising costs as incurred. Advertising costs were $1.3 million, $1.0 million, and $0.6 million for the years ended June 30, 2015, 2014 and 2013, respectively. Shipping and Handling Costs We expense all shipping, handling and delivery costs in the period incurred, generally as a component of equipment and supplies cost of revenues. Commissions Expense We record commissions as a component of sales and marketing expense when earned by the respective salesperson. Excluding certain arrangements within our Digital Banking segment, for which commissions are earned as revenue is recorded over the period of project performance, substantially all software commissions are earned in the month in which a customer order is received. Commissions associated with professional services are typically earned in the month that services are rendered. Commissions associated with post-contract customer support arrangements and subscription-based arrangements are typically earned when the customer is billed for the underlying contractual period, or in the period the order is received. Commissions are normally paid within thirty days of the month in which they are earned. Research and Development Expenditures We expense research and development costs in the period incurred. Debt Issuance Costs We incurred certain third party costs in connection with our issuance of the convertible notes (the Notes), as defined in Note 10, principally related to underwriting and legal fees. These costs are included as part of other assets on our consolidated balance sheets and are being amortized to interest expense ratably over the five-year term of the Notes. Income Taxes and Income Tax Uncertainties We recognize deferred tax assets and deferred tax liabilities based on differences in the financial reporting and tax basis of the underlying assets or liabilities, measured at tax rates that are expected to be in effect when the differences reverse. A valuation allowance to reduce the carrying value of deferred tax assets is recorded if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As discussed in Note 16, we recorded a valuation allowance against a portion of our US deferred tax assets during the year ended June 30, 2015. In respect of income tax uncertainties, we perform a two-step analysis for all tax positions. The first step involves an evaluation of the underlying tax position based solely on technical merits (such as tax law) and the second step involves measuring the tax position based on the probability of it being sustained in the event of a tax examination. We recognize tax benefits at the largest amount that we deem more likely than not will be realized upon ultimate settlement of any tax uncertainty. Tax positions that fail to qualify for recognition are recognized in the period in which the more-likely-than-not standard has been reached, when the tax positions are resolved with the respective taxing authority or when the statute of limitations for tax examination has expired. We record any interest or penalties accruing in respect of uncertain tax positions as a component of income tax expense. Share-Based Compensation We recognize expense for the estimated fair value of our share-based compensation. The expense associated with share-based payment awards is recognized on a straight-line basis over the award’s vesting period. Capitalized Software Costs Capitalization of software development costs, other than software developed for internal use which is discussed below, begins upon the establishment of technological feasibility. The establishment of technological feasibility and the ongoing assessment of recoverability of capitalized software development costs requires considerable judgment by us with respect to certain external factors, including, but not limited to, technological feasibility, anticipated future gross revenues, estimated economic life, and changes in software and hardware technologies. For the years ended June 30, 2015, 2014 and 2013, there were no material costs capitalized since substantially all development costs were incurred prior to attaining technological feasibility. We capitalize certain costs associated with internal use software, including software that we use to provide our hosted solutions, during the application development stage. We expense costs associated with preliminary project phase activities, training, maintenance and any post-implementation period costs as incurred. For the years ended June 30, 2015, 2014 and 2013 we capitalized $10.7 million, $4.4 million and $1.5 million, respectively, of internal use software development costs. The substantial majority of these costs were costs associated with our SaaS based technology platforms. Capitalized internal use software costs are amortized over estimated useful lives ranging from 2 to 7 years once the related project has been completed and deployed for customer use. For the fiscal years ended June 30, 2015, 2014 and 2013 we expensed $1.3 million $0.4 million and $0.1 million of capitalized internal use software costs. At June 30, 2015, 2014 and 2013 the net carrying value of capitalized internal use software was $14.9 million, $5.6 million and $1.6 million, respectively. Revenue Recognition Software Arrangements We recognize revenue on our software license arrangements when four basic criteria are met: persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed and determinable and collectability is probable. We consider a fully executed agreement or a customer purchase order to be persuasive evidence of an arrangement. Delivery is deemed to have occurred upon transfer of the product to the customer or the completion of services rendered. We consider the arrangement fee to be fixed and determinable if it is not subject to adjustment and if the customer has not been granted extended payment terms. Excluding our long term contract arrangements where revenue is recorded on a percentage of completion basis, extended payment terms are deemed to be present when any portion of the software license fee is due in excess of 90 days after the date of product delivery. In arrangements that contain extended payment terms, software revenue is recorded as customer payments become contractually due, assuming all other revenue recognition criteria have been met. We consider the arrangement fee to be probable of collection if our internal credit analysis indicates that the customer will be able to pay contractual amounts as they become due. Our software arrangements often contain multiple revenue elements, such as software licenses, professional services and post-contract customer support. For multiple element software arrangements which qualify for separate element treatment, revenue is recognized for each element when each of the four basic criteria is met which, excluding post-contract customer support, is typically upon delivery. Revenue for post-contract customer support agreements is recognized ratably over the term of the agreement, which is generally one year. Revenue is allocated to each element, excluding the software license, based on vendor specific objective evidence (VSOE). VSOE is limited to the price charged when the element is sold separately or, for an element not yet being sold separately, the price established by management having the relevant authority. We do not have VSOE for our software licenses since they are seldom sold separately. Accordingly, revenue is allocated to the software license using the residual value method. Under the residual value method, revenue equal to VSOE of each undelivered element is recognized upon delivery of that element. Any remaining arrangement fee is then allocated to the software license. This has the effect of allocating any sales discount inherent in the arrangement to the software license fee. Certain of our software arrangements require significant customization and modification and involve extended implementation periods. These arrangements do not qualify for separate element revenue recognition treatment as described above, and instead must be accounted for under contract accounting. Under contract accounting, companies must select from two generally accepted methods of accounting: the completed contract method and the percentage of completion method. The completed contract method recognizes revenue and costs upon contract completion, and all project costs and revenues are reported as deferred items in the balance sheet until that time. The percentage of completion method recognizes revenue and costs on a contract over time, as the work progresses. We use the percentage of completion method of accounting for our long-term contracts, as we believe that we can make reasonably reliable estimates of progress toward completion. Progress is measured based on labor hours, as measured at the end of each reporting period, as a percentage of total expected labor hours. Accordingly, the revenue we record in any reporting period for arrangements accounted for on a percentage of completion basis is dependent upon our estimates of the remaining labor hours that will be incurred in fulfilling our contractual obligations. Our estimates at the end of any reporting period could prove to be materially different from final project results, as determined only at subsequent stages of project completion. To mitigate this risk, we solicit the input of our project professional staff on a monthly basis, as well as at the end of each financial reporting period, for purposes of evaluating cumulative labor hours incurred and verifying the estimated remaining effort to completion; this ensures that our estimates are always based on the most current projections available. Non-Software Arrangements For arrangements governed by general revenue recognition literature, such as with our SaaS offerings or equipment and supplies only sales, we recognize revenue when four basic criteria are met. These criteria are similar to those governing software transactions: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the arrangement fee is fixed or determinable and collectability is reasonably assured. For our SaaS offerings, revenue is generally recognized on a subscription or transaction basis over the period of performance. For arrangements consisting of multiple elements, revenue is allocated to each element based on a selling price hierarchy. The selling price of each element is based on VSOE if available, third-party evidence (TPE) if VSOE is not available or estimated selling price (ESP) if neither VSOE nor TPE are available. The residual method of allocation in a non-software arrangement is not permitted and, instead, arrangement consideration is allocated at the inception of the arrangement to all deliverables using the relative selling price method. The relative selling price method allocates any discount in the arrangement proportionately to each deliverable based on the proportion of each deliverable’s selling price to the total arrangement fee. We are typically unable to establish TPE, which is based on the selling price charged by unrelated third-party vendors for similar deliverables when they are sold separately, as we are generally unable to obtain sufficient information on actual vendor selling prices to substantiate TPE. The objective of ESP is to estimate the price at which we would transact if the deliverable were sold separately rather than as part of a multiple element arrangement. Our determination of ESP considers several factors including actual selling prices for similar transactions, gross margin expectations and our ongoing pricing strategy. We formally analyze our ESP determinations on at least an annual basis. Whether a deliverable represents a separate unit of accounting, thus resulting in discrete revenue recognition as the revenue recognition criteria for that deliverable are met, is dependent on whether the deliverable has value to the customer on a standalone basis. A deliverable has standalone value if it is sold separately by us or any other vendor or if the deliverable could be resold by the customer. Additionally, in an arrangement that includes a general right of return related to delivered items, delivery or performance of any undelivered items must be considered probable and substantially within our control. We periodically charge up-front fees related to installation and integration services in connection with certain of our SaaS offerings. These fees typically do not have stand-alone value and are deferred and recognized as revenue ratably over the estimated customer relationship period (generally five to ten years). The revenue recognition period associated with these fees normally commences upon customer implementation. Contract origination costs and incremental direct costs are expensed as incurred. Arrangements Including Both Software and Non-Software Deliverables Periodically we will enter an arrangement that contains both software and non-software deliverables. In such a transaction, the arrangement consideration is allocated to the software deliverables and non-software deliverables as a group, using the relative selling prices of each of the deliverables, by following the aforementioned selling price hierarchy. After this allocation is completed, the arrangement consideration allocated to the software deliverables is further allocated using the residual value method described above. Regardless of the allocation methodology or the nature of the deliverables, we limit the amount of revenue that can be recognized for delivered items to the amount that is not contingent on future deliverables or subject to customer specific return or refund rights. Earnings per Share We report both basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted average number of shares of common stock outstanding and excludes the dilutive effect of warrants, stock options or any other type of convertible securities. Diluted earnings per share is calculated based on the weighted average number of shares of common stock outstanding and the dilutive effect of stock options, warrants and other types of convertible securities are included in the calculation. Dilutive securities are excluded from the diluted earnings per share calculation if their effect is anti-dilutive. Comprehensive Income or Loss Comprehensive income or loss includes all changes in equity during a period from non-owner sources, such as net income or loss, foreign currency translation adjustments, certain pension adjustments and unrealized gains and losses on available for sale securities. Recent Accounting Pronouncements: In June 2013, the Emerging Issues Task Force (EITF) reached final consensus on the presentation of an unrecognized tax benefit when a net operating loss carryforward or tax credit carryforward exists. This topic addressed the balance sheet presentation of a liability for an unrecognized tax benefit when settlement of the liability with the taxing authority would otherwise reduce a deferred tax asset for a net operating loss or tax credit carryforward under the provisions of the tax law. The EITF affirmed that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss or other tax credit carryforward when settlement in this manner is permissible under the tax law. This standard is applicable for annual periods beginning after December 31, 2013, and for interim periods within those annual periods. We adopted this standard prospectively effective July 1, 2014, resulting in a reduction of $2.3 million to non-current deferred tax assets and non-current other liabilities in our consolidated balance sheet. This did not have an impact on our consolidated statements of comprehensive income (loss) or cash flows. In May 2014, the Financial Accounting Standards Board (FASB) issued an accounting standard update which provides for new revenue recognition guidance, superseding nearly all existing revenue recognition guidance. The core principle of the new guidance is to recognize revenue when promised goods or services are transferred to customers, in an amount that reflects the consideration to which the vendor expects to receive for those goods or services. The new standard is expected to require more judgment and estimates within the revenue recognition process than required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to separate performance obligations. The new standard is also expected to significantly increase the financial statement disclosure related to revenue recognition. This standard is currently effective for us in our first quarter of our 2019 fiscal year (July 1, 2018) using one of two methods of adoption: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients as defined within the standard; or (ii) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application inclusive of certain additional disclosures. We are continuing to evaluate the expected impact of this standard on our consolidated financial statements and we have not yet selected a method of adoption. While our assessment of the impact of this standard is not complete, we currently believe that the most significant impact will be in two specific areas: • Under the new standard, the absence of VSOE in certain software license arrangements will no longer result in strict revenue deferral, as instead fair value will be assigned to arrangement elements based on a fair value hierarchy no longer dependent on the presence of VSOE. Absent a change in how we license our products, we believe that this will result in greater up-front recognition of software revenue for certain of our license arrangements. • Under the new standard, certain expenses we incur will require deferral and recognition over the period in which revenue is recognized, subject to certain exceptions. We believe that this may result in the deferral of certain implementation and commission costs associated with our SaaS offerings which would then be recognized as expense over a multi-year period; such costs are expensed directly as incurred today. However, we are unable to quantify the impact of these outcomes at this time, nor can we ensure that our continuing analysis and interpretation of the standard will result in this financial reporting outcome. In April 2015, the FASB issued an accounting standard update which requires that debt issuance costs be presented in the balance sheet as a direct reduction to the carrying value of the debt. This standard is effective for us on July 1, 2016 (the first quarter of our 2017 fiscal year) with early application permitted. Upon adoption of this standard, deferred debt issuance costs will be reclassified from non-current assets and shown as a reduction to the debt carrying value in our consolidated balance sheet. Deferred debt issuance costs were approximately $2.9 million at June 30, 2015. The adoption of this standard will be applied retrospectively and will not have an impact on our consolidated statement of comprehensive income (loss) or cash flows. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | 3. Fair Values of Assets and Liabilities We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the assumptions that market participants would use in pricing an asset or liability (the inputs) are based on a tiered fair value hierarchy consisting of three levels, as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar instruments in active markets or for similar markets that are not active. Level 3: Unobservable inputs for which there is little or no market data and which require us to develop our own assumptions about how market participants would price the asset or liability. Valuation techniques for assets and liabilities include methodologies such as the market approach, the income approach or the cost approach, and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are only utilized to the extent that observable inputs are not available or cost-effective to obtain. At June 30, 2015 and 2014, our assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2015 June 30, 2014 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds (cash and cash equivalents) $ 2,068 $ — $ — $ 2,068 $ 10,718 $ — $ — $ 10,718 Available for sale securities Debt U.S. Corporate 10,561 — — 10,561 13,119 — — 13,119 Residential mortgage-backed 7,733 — — 7,733 5,537 — — 5,537 Government—U.S. 4,866 — — 4,866 5,069 — — 5,069 Total available for sale securities $ 23,160 $ — $ — $ 23,160 $ 23,725 $ — $ — $ 23,725 Fair Value of Financial Instruments We have certain other financial instruments which consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and the convertible senior notes (the Notes) more fully described in Note 10. Fair value information for each of these instruments is as follows: • Cash and cash equivalents, accounts receivable and accounts payable fair value approximates their carrying values, due to the short-term nature of these instruments. • Marketable securities classified as held to maturity are recorded at amortized cost, which at June 30, 2015, and June 30, 2014, approximated their fair value. • Marketable securities classified as available for sale are recorded at fair value. Unrealized gains and losses are included as a component of other accumulated comprehensive loss in shareholders’ equity, net of tax. We use the specific identification method to determine any realized gains or losses from the sale of our marketable securities classified as available for sale. • The carrying value of assets ($1.8 million) related to deposits we have made to fund future requirements associated with Israeli severance arrangements approximated their fair value at June 30, 2015. • We hold certain cost method equity investments in non-publicly traded securities aggregating $3.4 million and $3.3 million at June 30, 2015 and June 30, 2014, respectively, which are included in other assets. These investments are generally carried at cost less any write-downs for other-than-temporary impairment charges. To determine the fair value of these investments, we use all available financial information related to the entities, including information based on recent or pending third-party equity investments in these entities. In certain instances, a cost method investment’s fair value is not estimated as there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment and to do so would be impractical. • The Notes were recorded at $133.3 million upon issuance, which reflected their principal value less the fair value of the embedded conversion option (Conversion Feature). The carrying value of the Notes, $159.8 million at June 30, 2015, will be accreted over the remaining term to maturity to the principal value of $189.8 million. The fair value of the Notes (inclusive of the Conversion Feature) was approximately $206.6 million as of June 30, 2015. We estimated the fair value of the Notes by reference to quoted market prices; however the Notes have only a limited trading volume and as such this fair value estimate is not necessarily the value at which the Notes could be retired or transferred. |
Product and Business Acquisitio
Product and Business Acquisitions | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Product and Business Acquisitions | 4. Product and Business Acquisitions 2015 Acquisition Activity During the year ended June 30, 2015, we completed three business acquisitions for aggregate purchase consideration of $70.9 million. Details of each acquisition follow below. Intellinx On January 12, 2015, we acquired all of the outstanding share capital of Intellinx Ltd. (Intellinx), an Israeli corporation. Intellinx provides comprehensive cyber fraud and risk management solutions. As purchase consideration we paid approximately $66.7 million in cash ($6.8 million of which will be held in escrow as a source for the satisfaction of indemnification obligations owed to us) and 774,000 shares of our common stock. The common stock component of the purchase consideration was issued to certain former equity holders of Intellinx who became employees of Bottomline upon the closing of the acquisition. The common stock is subject to a vesting schedule tied to continued employment; as such we will record share-based payment expense over the underlying stock vesting period which ranges from four to five years. Absent indemnification claims, the portion of the cash purchase consideration held in escrow will be reduced by 50% nine months from the acquisition date, with any remaining escrow balance released to the selling stockholders of Intellinx fifteen months from the acquisition date. In the preliminary allocation of the purchase price we recognized $13.3 million of goodwill which is not deductible for income tax purposes. The goodwill arose principally due to the recognition of certain deferred tax liabilities in purchase accounting and the assembled workforce of Intellinx. The Intellinx goodwill was allocated to our Payments and Transactional Documents operating segment. Identifiable intangible assets of $55.9 million are being amortized over a weighted average useful life of twelve years. The intangible assets consisting of core technology, customer related assets and other intangible assets are being amortized over weighted average lives of thirteen years, thirteen years and five years, respectively. At June 30, 2015 we were still finalizing our estimates of fair value for certain tangible and intangible assets acquired and liabilities assumed in the Intellinx acquisition. Accordingly, the purchase price allocation that follows is preliminary and subject to change as we finalize our fair value estimates. The preliminary allocation of the Intellinx acquisition purchase price as of June 30, 2015 is as follows: (in thousands) Current assets $ 9,770 Property and equipment 299 Other assets 2,187 Customer related intangible assets 2,285 Core technology 52,711 Other intangible assets 937 Goodwill 13,325 Current liabilities (4,217 ) Other liabilities (10,647 ) Total purchase price $ 66,650 For the year ended June 30, 2015, revenues attributable to the Intellinx acquisition represented less than 1% of our consolidated revenues. Intellinx’ pre-tax loss for the year ended June 30, 2015 was approximately $6.6 million and was inclusive of $2.2 million of intangible asset amortization and $1.7 million of stock compensation expense. Arian On November 21, 2014, we acquired UK-based Arian Software Limited (Arian) for a cash payment of £2.3 million (approximately $3.5 million based on exchange rates in effect at the acquisition date) and 60,000 shares of our common stock. The common stock component of the purchase consideration was issued to certain equity holders of Arian who became Bottomline employees. The common stock is subject to a vesting schedule tied to continued employment; as such we will record share-based payment expense over the underlying stock vesting period of four years. Arian provides technology used in our financial messaging business. In the allocation of the purchase price we recognized $2.4 million of goodwill which is not deductible for income tax purposes and which arose principally due to anticipated future benefits arising from the acquisition. Identifiable intangible assets of $1.5 million, consisting of acquired technology and certain customer related intangible assets, are being amortized over estimated useful lives of twelve years and nine years, respectively. Arian’s operating results have been included in the results of the Hosted Solutions segment from the date of the acquisition forward and did not have a material impact on our revenue or earnings for the year ended June 30, 2015. Litco On July 9, 2014, we acquired substantially all of the assets and assumed certain liabilities of Litco Systems Inc. (Litco) for $0.7 million in cash and 4,999 shares of our common stock valued at $0.2 million. The common stock was subject to a vesting schedule tied to continued services to be rendered by Litco’s principal equity holder post-acquisition; as such we will record share-based payment expense over the underlying stock vesting period. Litco is a long-time reseller and integration partner of our document automation products, principally in the Canadian marketplace. Customer related intangible assets are being amortized over an estimated useful life of six years. Litco’s operating results have been included in the results of the Payments and Transactional Documents segment from the date of the acquisition forward and did not have a material impact on our revenue or earnings for the year ended June 30, 2015. Acquisition expenses of approximately $2.1 million were expensed during the year ended June 30, 2015 related to the Intellinx, Arian and Litco acquisitions, principally as a component of general and administrative expense. 2014 Acquisition Activity During the year ended June 30, 2014, we completed four business acquisitions for aggregate purchase consideration of $170.4 million. Details of each acquisition follow below. Andera On April 3, 2014, we acquired Andera, Inc. (Andera) for purchase consideration of $42.8 million in cash. We also issued 102,158 shares of our common stock to certain equity holders of Andera. These shares have vesting conditions tied to continuing employment, and, as such, the shares are compensatory and we will recognize share-based payment expense over the underlying vesting period. The accounting purchase price also includes $0.2 million related to unvested Andera stock options that we assumed in the acquisition. This amount reflects the fair value of the underlying awards that relate to pre-acquisition service periods. The allocation of the Andera acquisition purchase price which was finalized during the year ending June 30, 2015 is as follows: (in thousands) Current assets $ 2,150 Property and equipment 1,226 Customer related intangible assets 13,749 Core technology 7,429 Other intangible assets 623 Goodwill 25,941 Current liabilities (4,565 ) Other liabilities (3,573 ) Total purchase price $ 42,980 Rationalwave On January 29, 2014, we acquired Rationalwave Analytics, Inc. (Rationalwave), an early stage predictive analytics technology company, for a cash payment of $1.2 million and 113,731 shares of our common stock which was valued at approximately $3.7 million as of the acquisition date. We also issued 92,151 shares of our common stock to key Rationalwave equity holders joining us as employees. These shares of stock have vesting conditions tied to continuing employment and, as such, these shares are compensatory and we will recognize share-based payment expense over the underlying stock vesting period. In the allocation of the purchase price we recognized $3.9 million of goodwill which arose partially due to the recognition of certain deferred tax liabilities in purchase accounting and anticipated future benefits arising from the acquisition. The goodwill is not deductible for income tax purposes. Identifiable intangible technology assets of $1.5 million are being amortized over an estimated useful life of five years. We use the Rationalwave technology within various technology solutions we offer to our customers and as such the goodwill was allocated to multiple operating segments. Simplex On September 4, 2013, we acquired all of the remaining equity of Simplex, a UK-based corporation for a cash payment of £3.4 million (approximately $5.4 million based on exchange rates in effect at the acquisition date). The acquisition of Simplex was a business combination achieved in stages as we initially held, through our acquisition of Sterci which is discussed below, a non-controlling interest in Simplex prior to our acquiring control on September 4, 2013. The accounting purchase price for Simplex of $15.2 million includes the acquisition date fair value of our non-controlling interest in Simplex of $5.6 million, plus the cash consideration paid on September 4, 2013, for the controlling interest in Simplex of $5.4 million. The accounting purchase price also includes the settlement of a preexisting relationship, specifically amounts due from Simplex, of $4.2 million. In the purchase price allocation, our prior non-controlling interest in Simplex was initially included in the purchase price allocation of Sterci at fair value and was then reallocated to the Simplex assets acquired and liabilities assumed upon obtaining control of Simplex. We recognized $11.8 million of goodwill which is not deductible for income tax purposes, which arose primarily due to the recognition of certain deferred tax liabilities in purchase accounting, the assembled workforce of Simplex and synergies we expect to receive by leveraging Simplex with our existing financial messaging solutions. Simplex’s operating results have been included in our operating results from the date of the acquisition forward as a component of the Hosted Solutions segment and all of the goodwill was allocated to this segment. Identifiable intangible assets aggregating $4.5 million include customer related assets and other intangible assets and are being amortized over estimated useful lives of fifteen and four years, respectively. Sterci On August 20, 2013, we acquired Sterci, a Swiss corporation for a cash payment of 111.0 million Swiss Francs (approximately $121.0 million based on exchange rates in effect at the acquisition date). We recognized $48.7 million of goodwill which arose primarily due to the recognition of certain deferred tax and pension liabilities in purchase accounting, the assembled workforce of Sterci and synergies that we expect to receive from the expansion of our financial messaging solutions. The goodwill is not deductible for income tax purposes. Sterci also owned a non-controlling interest in Simplex which had an acquisition date fair value of $5.6 million. Sterci’s operating results have been included in our operating results from the date of the acquisition forward as a component of the Hosted Solutions segment and all of the Sterci goodwill was allocated to this segment. Identifiable intangible assets aggregating $72.0 million are being amortized over a weighted average useful life of eleven years. The identifiable intangible assets include customer related assets, core technology and other intangible assets (trade names) and are being amortized over estimated weighted average useful lives of thirteen, eight and eleven years, respectively. Sterci and Simplex are leading providers of financial messaging solutions utilizing the SWIFT global messaging network on behalf of more than 350 customers across 20 different countries. The Sterci and Simplex acquisitions, combined with our existing financial messaging business, created a new global center of excellence in financial messaging, providing solutions for banks, financial institutions and corporations around the world. In addition, please refer to our product and business acquisition disclosures included in the 2014 Annual Report on Form 10-K as filed with the SEC on August 28, 2014. The valuation of acquired intangible assets for our acquisitions was estimated by performing projections of discounted cash flow, whereby estimated revenues and costs associated with each intangible asset are used to derive expected cash flow which is discounted to present value at discount rates commensurate with perceived risk. The valuation and projection process is inherently subjective and relies on significant unobservable inputs (Level 3 inputs). The valuation assumptions also take into consideration our estimates of contract renewal, technology attrition and revenue projections. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consist of the following: June 30, 2015 2014 (in thousands) Land $ 298 $ 324 Building and Improvements 14,997 12,834 Furniture and fixtures 6,198 4,992 Technical equipment 42,351 36,212 Software 40,967 29,677 Motor Vehicles 93 73 104,904 84,112 Less: Accumulated depreciation and amortization 57,325 48,211 $ 47,579 $ 35,901 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets The increase in goodwill and our other intangible assets during 2015 was due principally to our current year acquisitions. The following tables set forth the information for intangible assets subject to amortization and for intangible assets not subject to amortization: As of June 30, 2015 Gross Carrying Accumulated Net Carrying Weighted Average (in thousands) (in years) Amortized intangible assets: Customer related $ 200,957 $ (101,219 ) $ 99,738 10.4 Core technology 131,069 (55,374 ) 75,695 10.2 Other intangible assets 20,790 (10,933 ) 9,857 6.4 Total $ 352,816 $ (167,526 ) $ 185,290 Unamortized intangible assets: Goodwill 215,360 Total intangible assets $ 400,650 As of June 30, 2014 Gross Carrying Accumulated Net Carrying Weighted Average (in thousands) (in years) Amortized intangible assets: Customer related $ 206,294 $ (88,184 ) $ 118,110 11.8 Core technology 78,991 (45,552 ) 33,439 6.8 Other intangible assets 20,220 (8,265 ) 11,955 7.2 Total $ 305,505 $ (142,001 ) $ 163,504 Unamortized intangible assets: Goodwill 208,991 Total intangible assets $ 372,495 Estimated amortization expense for fiscal year 2016 and subsequent fiscal years is as follows: (in thousands) 2016 $ 29,204 2017 24,582 2018 20,547 2019 18,822 2020 16,922 2021 and thereafter 74,708 The following table represents a rollforward of our goodwill balances, by reportable segment, as follows: Payments and Hosted Digital (in thousands) Balance at June 30, 2013 $ 66,862 $ 33,881 $ 8,453 Goodwill acquired during the period 954 62,647 27,394 Impact of foreign currency translation 2,716 6,084 — Balance at June 30, 2014 70,532 102,612 35,847 Goodwill acquired during the period 13,325 2,363 — Purchase accounting adjustments — (745 ) 33 Impact of foreign currency translation (2,238 ) (6,369 ) — Balance at June 30, 2015 $ 81,619 $ 97,861 $ 35,880 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consist of the following: June 30, 2015 2014 (in thousands) Employee compensation and benefits $ 13,751 $ 12,055 Accrued income taxes payable 2,433 6,362 Sales and value added taxes 1,963 1,932 Professional fees 1,105 1,808 Accrued interest 237 237 Accrued royalties 352 218 Other 4,595 2,930 $ 24,436 $ 25,542 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | 8. Restructuring Costs During fiscal year 2015, in response to recent acquisitions and business events, we realigned our workforce and recorded pre-tax restructuring expenses associated with severance related benefits of approximately $1.3 million. Restructuring charges recorded in fiscal 2015 were expensed as follows: (in thousands) Subscriptions and transactions cost of sales $ 149 Service and maintenance cost of sales 171 Sales and marketing 438 Product development and engineering 212 General and administrative 327 $ 1,297 At June 30, 2015, our remaining liability for severance related benefits was as follows: (in thousands) Accrued severance benefits at June 30, 2014 $ 473 Additions charged to expense in 2015 1,297 Payments charged against the accrual (1,717 ) Accrued severance benefits at June 30, 2015 $ 53 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Leases We lease our principal office facility in Portsmouth, NH under a non-cancelable operating lease expiring in 2027. In addition, we have two five year options to further extend the term of this lease. Rent expense is fixed for the base term of the lease. We are also required to pay certain incremental operating costs above the base rent. We lease office space in certain other cities worldwide under operating leases that expire at various dates. In addition to the base rent, we are typically also responsible for a portion of the operating expenses associated with these facilities. Where operating leases contain rent escalation clauses or certain types of landlord concessions, the financial effect of these items are included in the determination of the straight-line expense over the lease term. Rent expense, net of sublease income, for the fiscal years ended June 30, 2015, 2014 and 2013 was $6.9 million, $5.4 million and $4.6 million, respectively. Sublease income for the fiscal years ended June 30, 2015, 2014 and 2013 was insignificant. Future minimum annual rental commitments under our facilities, equipment, and vehicle leases at June 30, 2015 are as follows: (in thousands) 2016 $ 5,386 2017 5,014 2018 4,523 2019 4,246 2020 3,685 2021 and thereafter 11,946 $ 34,800 Long Term Service Arrangements We have entered into service agreements with initial minimum commitments ranging between one and five years that expire between the fiscal years 2016 and 2020, primarily for software licenses, hosting services and disaster recovery services. In addition to the base terms, we have certain options to extend the terms of the service agreements. Payments are fixed for the initial terms and are subject to increase in the event that we elect to extend the service. Future minimum annual commitments under our long term service arrangements as of June 30, 2015 are as follows: (in thousands) 2016 $ 7,372 2017 3,472 2018 1,764 2019 314 2020 78 $ 13,000 Legal Matters We are, from time to time, a party to other legal proceedings and claims that arise out of the ordinary course of our business. We do not believe that there are claims or proceedings pending against us for which the ultimate resolution would have a material effect on, or require disclosure in, our financial statements. |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | 10. Convertible Senior Notes On December 12, 2012, we issued $189.8 million aggregate principal amount of our 1.50% Convertible Senior Notes maturing on December 1, 2017 (the Notes), inclusive of the underwriters’ exercise in full of their over-allotment option of $24.8 million. Cash interest at a rate of 1.50% per year began to accrue on December 12, 2012 and is payable semi-annually on June 1 and December 1 of each year beginning on June 1, 2013. We received net proceeds from the offering of approximately $167.3 million after adjusting for debt issue costs, including the underwriting discount, and the net cash used to purchase the Note Hedges and sell the Warrants which are discussed below. The Notes were issued under an indenture dated December 12, 2012 (the “Base Indenture”) by and between us and The Bank of New York Mellon Trust Company, N.A., as Trustee and a First Supplemental Indenture dated December 12, 2012 (the “First Supplemental Indenture”) by and between us and the Trustee (the Base Indenture and the First Supplemental Indenture are collectively referred to as the “Indenture”). There are no financial or operating covenants relating to the Notes. The Notes are senior unsecured obligations of ours and rank senior in right of payment to any future unsecured indebtedness that is expressly subordinated in right of payment to the Notes, and equal in right of payment to any of our existing and future unsecured indebtedness that is not subordinated. The Notes are effectively junior in right of payment to any of our secured indebtedness (to the extent of the value of assets securing such indebtedness) and structurally junior to all existing and future indebtedness and other liabilities, including trade payables, of our subsidiaries. Prior to this offering, neither we nor our subsidiaries had any outstanding indebtedness for borrowed money. The Indenture does not limit the amount of debt that we or our subsidiaries may incur. The Notes are not guaranteed by us or any of our subsidiaries. Holders may convert their Notes at their option, prior to the close of business on the business day immediately preceding June 1, 2017, in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on March 31, 2013 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the convertible notes for each trading day of the measurement period was less than 98% of the product of the last reported sales price of our common stock and the conversion rate on each trading day; or • upon the occurrence of specified corporate events, including a merger or a sale of all or substantially all of our assets. On or after June 1, 2017 until the close of business on the second scheduled trading day immediately preceding the maturity date of December 1, 2017, holders may convert their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. The conversion rate for the Notes is initially 33.3042 shares per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $30.03 per share of our common stock). The conversion rate is subject to customary adjustment for certain events as described in the Indenture. At the time we issued the Notes and prior to January 17, 2013, we did not have a sufficient number of available authorized shares of our common stock to enable us to settle, with shares of our common stock, the maximum obligations we may have under the Conversion Feature of the Notes. Therefore the Notes required, prior to us receiving an approval from our shareholders to increase the authorized shares of our common stock to an amount that would allow us to settle the maximum potential obligations under the Conversion Feature in shares, that we settle any such obligation in cash. Accordingly, the Conversion Feature was initially recorded as a derivative liability, measured at fair value, in our balance sheet. On January 17, 2013, our shareholders approved a proposal to amend our Amended and Restated Certificate of Incorporation to increase our authorized shares from 50,000,000 to 100,000,000 shares which is a sufficient number of shares to enable us to settle the entire maximum potential obligation under the Conversion Feature in shares, should we so elect. Accordingly, as of January 17, 2013 the Conversion Feature met the stockholders’ equity classification requirements and was re-measured at fair value as of that date, with the change in fair value reflected in earnings, and was reclassified from a liability to stockholders’ equity, net of taxes. The principal balance of the Notes is always required to be settled in cash. However, we are permitted at our election to settle any conversion obligation in excess of the principal portion in cash, shares of our common stock, or a combination of cash and shares of our common stock. We may not redeem the Notes prior to their maturity date. If we undergo a fundamental change, (as described in the Indenture), subject to certain conditions, holders may require us to repurchase for cash all or part of their Notes in principal amounts of $1,000 or an integral multiple thereof. The fundamental change repurchase price will be equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Indenture contains customary events of default with respect to the Notes and provides that upon certain events of default occurring and continuing the Trustee may, and the Trustee at the request of such holders of at least 25% in principal amount of the convertible notes shall, declare 100% of the principal of and accrued and unpaid interest, if any, on the Notes to be due and payable. In case of certain events of bankruptcy, insolvency or reorganization, involving us or a significant subsidiary, 100% of the principal of and accrued and unpaid interest on the Notes will automatically become due and payable. Upon such a declaration of acceleration, such principal and accrued and unpaid interest, if any, will be due and payable immediately. Under limited circumstances, we may be required to pay contingent interest on the Notes as a result of failure to comply with the reporting obligations in the Indenture or failure to file required Securities and Exchange Commission documents and reports. When applicable, the contingent interest payable per $1,000 principal amount is 0.25% per annum over the applicable term as provided under the Indenture. The contingent interest features of the Notes are embedded derivative instruments. The estimated fair value of the contingent interest features of the Notes was zero at issuance and at June 30, 2015, as the likelihood of any liability being incurred under these provisions was deemed remote and, to the extent occurring, the time period during which a contingent interest charge would apply is projected to be short. The Notes were recorded upon issuance using a residual method of valuation, meaning since the Conversion Feature was initially a derivative instrument recorded at fair value we allocated debt proceeds to the Conversion Feature based on the fair value of that instrument and the residual proceeds were allocated to the Notes. The carrying amount of the Notes will be accreted to the principal amount over the remaining term to maturity and we will record a corresponding charge to interest expense. The net carrying amount of the convertible notes at June 30, 2015 was as follows: (in thousands) Principal amount $ 189,750 Unamortized discount (29,990 ) Net carrying value $ 159,760 We incurred certain third party costs in connection with our issuance of the Notes, principally related to underwriting and legal fees, which are being amortized to interest expense ratably over the five-year term of the Notes. The following table sets forth total interest expense related to the convertible notes: Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) Contractual interest expense (cash) $ 2,846 $ 2,846 $ 1,573 Amortization of debt discount (non-cash) 10,965 10,213 5,326 Amortization of debt issue costs (non-cash) 1,184 1,184 654 $ 14,995 $ 14,243 $ 7,553 Effective interest rate of the liability component 7.28 % 6.88 % 6.60 % Note Hedges In December 2012, we entered into privately negotiated transactions to purchase hedge instruments (the Note Hedges), covering approximately 6.3 million shares of our common stock. The Note Hedges are subject to anti-dilution provisions substantially similar to those of the Notes, have a strike price that corresponds to the conversion price of the Notes, are exercisable by us upon any conversion under the Notes and expire on December 1, 2017. The Note Hedges are generally expected to reduce the potential dilution to our common stock (or, in the event the Conversion Feature is settled in cash, to reduce our cash payment obligation) in the event that at the time of conversion our stock price exceeds the conversion price under the Notes. The cost of the Note Hedges, $42.3 million, is expected to be tax deductible as an original issue discount over the life of the Notes, as the Notes and the Note Hedges represent an integrated debt instrument for tax purposes. The Note Hedges did not initially satisfy the accounting requirements necessary for classification within stockholders’ equity, as upon issuance and prior to January 17, 2013 any transaction under the Note Hedges was required to be settled in cash. Accordingly, the Note Hedges were initially recorded as a derivative asset, measured at fair value, in our balance sheet. As of January 17, 2013, the Note Hedges met the stockholders’ equity classification requirements as we had an adequate level of authorized shares to permit us to settle the Note Hedges in shares of our common stock. Accordingly, on January 17, 2013 we re-measured the Note Hedges at fair value, with the change in fair value reflected in earnings, and this amount was reclassified from an asset to stockholders’ equity, net of tax. The Note Hedges are transactions that are separate from the terms of the Notes and the Warrants (discussed below) and holders of the Notes and the Warrants have no rights with respect to the Note Hedges. Warrants In December 2012, we received aggregate proceeds of $25.8 million, net of issue costs, from the sale of warrants (the Warrants), for the purchase of up to 6.3 million shares of our common stock, subject to antidilution adjustments, at a strike price of $40.04 per share. The Warrants are exercisable in equal tranches over a period of 150 days beginning on March 1, 2018 and ending on October 18, 2018. The Warrants are also derivative instruments. A portion of the Warrants met the stockholders’ equity classification requirements upon issuance and, as such, were recorded in equity as of that date. Certain of the Warrants, however, did not satisfy the requirements necessary for classification within stockholders’ equity as, for the period of December 6, 2012 through December 12, 2012 we would have been required under certain circumstances to settle obligations with the counterparty to those Warrants in cash. Accordingly for this period the Warrants for which cash settlement might have been required were recorded as a derivative liability. The requirement to potentially cash settle a portion of the Warrants expired on December 12, 2012, and we did not incur any actual cash payment obligation during that period. On December 12, 2012 we re-measured the fair value of those Warrants that were initially recorded as a derivative liability and recorded a $2.8 million loss related to a change in fair value. Since as of December 12, 2012 we met the stockholders’ equity classification requirements, the fair value of the Warrants were reclassified to stockholders’ equity as of that date. The Warrants are transactions that are separate from the terms of the Notes and the Note Hedges, and holders of the Notes and Note Hedges have no rights with respect to the Warrants. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 11. Derivative Instruments Our derivative instruments for the fiscal year ended June 30, 2015 consisted of the Note Hedges, Conversion Feature and Warrants as discussed in Note 10. As of June 30, 2015 each of these instruments continued to meet the classification requirements for inclusion within stockholders’ equity and as such they were not subject to fair value re-measurement. We are required, for the remaining term of the Notes, to assess whether we continue to meet the stockholders’ equity classification requirements. If in any future period we failed to satisfy those requirements we would be required to reclassify the derivative instruments out of stockholders’ equity, to either assets or liabilities depending on their nature, and record those instruments at fair value with changes in fair value reflected in earnings. The gain (loss) as a result of changes in the fair value of our derivative instruments for the fiscal year ended June 30, 2013 is as follows: (in thousands) Fair Value at Fair Value Fair Value at Gain/(loss) on Note Hedges $ 42,390 $ 50,086 (1) n/a $ 7,696 Conversion Feature 56,495 65,796 (1) n/a (9,301 ) Warrants 12,950 15,780 (2) n/a (2,830 ) Net loss on derivative instruments $ (4,435 ) (1) The requirements for stockholders’ equity classification for the Note Hedges and Conversion Feature were met as of January 17, 2013 and, as of that date, we re-measured the fair value of these instruments and reclassified those amounts to stockholders’ equity. The fair values and resulting gain or loss are based on re-measurement at January 17, 2013. (2) The conditions that gave rise to the potential cash settlement of a portion of the Warrants expired on December 12, 2012 and, as of that date, we re-measured the fair value of these instruments and reclassified that amount to stockholders’ equity. The fair value and resulting loss is based on re-measurement at December 12, 2012. |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 12 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement and Other Employee Benefits | 12. Postretirement and Other Employee Benefits Defined Contribution Pension Plans We have a 401(k) Plan (the Plan), whereby eligible US employees may contribute up to 60% of their eligible compensation, subject to limitations established by the Internal Revenue Code. We may contribute a discretionary matching contribution annually equal to 50% of each such participant’s deferred compensation up to the first 5% of their annual eligible compensation. We charged approximately $1.8 million, $1.6 million and $1.4 million to expense in the fiscal years ended June 30, 2015, 2014 and 2013, respectively, associated with our matching contribution for those years. We have a Group Personal Pension Plan (GPPP) for employees in the UK, whereby eligible employees may contribute a portion of their compensation, subject to their age and other limitations established by HM Revenue & Customs. We contribute 3% of the employee’s annual compensation as long as the individual contributes a minimum of 1% of their annual compensation to the plan. We charged approximately $1.2 million, $1.0 million and $1.0 million to expense in the fiscal years ended June 30, 2015, 2014 and 2013, respectively, under the GPPP. We have a GPPP related to European employees from our Sterci acquisition and governed by local regulatory requirements. For fiscal years ended June 30, 2015 and 2014 we contributed approximately $1.4 million and $1.2 million, respectively, under the GPPP. We are required by Australian government regulation to pay a certain percentage, currently 9%, of gross salary to a compliant Superannuation Fund for the benefit of our Australian employees. We charged approximately $0.2 million to expense in the fiscal years ended June 30, 2015, 2014 and 2013, respectively, reflecting our contribution to the Superannuation Fund. We have a retirement contribution plan with respect to our employees in Israel (Israel plan) under which we contribute 5% of each eligible employee’s annual compensation. Employees are entitled to amounts accumulated in the Israel plan upon reaching retirement age. We charged approximately $0.2 million to expense in the fiscal year 2015 related to the Israel plan. Defined Benefit Pension Plan We sponsor a defined benefit pension plan for our Swiss-based employees (the Swiss pension plan) that is governed by local regulatory requirements. As of June 30, 2015, we had 109 employees, which is approximately 7% of our workforce, covered under the Swiss pension plan. The Swiss pension plan is governed by the Swiss Federal Law on Occupational Retirements, Survivors’ and Disability Pension plans. We use a third party pension fund, Profond, to administer this plan. We charged approximately $1.9 million and $2.0 million to expense in the fiscal years ended June 30, 2015 and June 30, 2014, respectively, related to this plan. The annual measurement dated for our pension benefits is June 30. During fiscal year 2014, Profond decreased the pension benefit conversion rates over a five year period from a maximum of 7.2% to 6.8%, which reduced the projected benefit at retirement for all employees. This event qualified as a plan amendment and the prior service credit arising from this amendment was recorded as a component of accumulated other comprehensive income (loss) for the year ended June 30, 2014. In fiscal year 2016 we expect to recognize approximately $0.1 million as a reduction of our overall net periodic benefit cost related to this plan amendment. The accumulated benefit obligation (ABO) represents the obligations of a pension plan for past service as of the measurement date, which is the present value of benefits earned to date based on current compensation levels. The Swiss pension plan ABO as of June 30, 2015 was $38.3 million. The projected benefit obligation (PBO) is the ABO adjusted to reflect the impact of future compensation levels. The following table represents the PBO, change in plan assets, funded status and amounts recognized in our consolidated balance sheets at June 30, 2015 and 2014: Pension Benefits 2015 2014 (In thousands) Change in benefit obligation: Projected benefit obligation at beginning of year $ 36,413 $ 30,548 Service cost 2,300 2,170 Interest cost 673 594 Actuarial loss 3,647 1,635 Plan participant contributions 872 830 Benefits paid, net of transfers into plan (939 ) 644 Plan change — (1,180 ) Effect of foreign currency exchange rate changes (1,830 ) 1,172 Projected benefit obligation at end of year $ 41,136 $ 36,413 Change in plan assets: Fair value of plan assets at beginning of year $ 26,575 $ 21,020 Actual return on plan assets 801 1,595 Employer contribution 1,820 1,669 Plan participant contributions 872 830 Benefits paid, net of transfers into plan (939 ) 644 Effect of foreign currency exchange rate changes (1,353 ) 817 Fair value of plan assets at end of year $ 27,776 $ 26,575 Pension liability at end of fiscal year $ (13,360 ) $ (9,838 ) Accumulated other comprehensive loss consists of the following: Net prior service credit $ 1,025 $ 1,180 Net actuarial loss (4,659 ) (809 ) Accumulated other comprehensive loss, before income tax $ (3,634 ) $ 371 For the year ended, June 30, 2015, we reclassified approximately $0.1 million of net prior service credit as a component of net periodic benefit cost from accumulated other comprehensive loss. The net unfunded balance of our defined benefit pension plan is recorded as a non-current liability and all unrecognized gains or losses, net of tax, are recorded as a component of other comprehensive income (loss) within stockholders’ equity at June 30, 2015. Assumptions: Pension Benefits 2015 2014 Weighted-average assumptions used to determine net benefit costs: Discount rate 2.00 % 2.25 % Expected return on plan assets 4.00 % 4.00 % Rate of compensation increase 2.00 % 2.00 % Weighted-average assumptions used to determine benefit obligations at year end: Discount rate 1.25 % 2.00 % Expected return on plan assets 3.00 % 4.00 % Rate of compensation increase 1.75 % 2.00 % The expected return on plan assets is determined by adjusting the market value of assets to reflect the investment gains and losses from prior years. We amortize gains and losses in our net periodic benefit cost which result from actual experience different from that assumed and from changes in assumptions. If, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the projected benefit obligation and the market related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefits under the plan. The fair value of plan assets for the Swiss pension plan was $27.8 million at June 30, 2015. As is customary with Swiss pension plans, the plan assets are invested in a collective fund with multiple employers through a Swiss insurance company. We do not have rights to the individual assets of the plan nor do we have investment authority over the assets of the plan. The collective fund maintains a variety of investment positions primarily in equity securities and highly rated debt securities. The valuation of the collective fund assets as a whole is a Level 3 measurement; however the individual investments of the fund are generally Level 1 (equity securities), Level 2 (fixed income) and Level 3 (real estate) investments. We determine the fair value of the plan assets based on information provided by the collective fund, through review of the collective fund’s annual financial statements, and we further consider whether there are other indicators that the investment balances reported by the fund could be impaired. We concluded that no such impairment indicators were present at June 30, 2015. The pension plan 2015 actual asset allocation as compared to Profond’s target asset allocations are as follows: Actual Target Asset Category: Cash and cash equivalents 7 % 5 % Equity Securities 51 % 50 % Fixed Income 22 % 28 % Real Estate 18 % 15 % Other 2 % 2 % As of June 30, 2015, the estimated future benefit payments (inclusive of any future service) were as follows: (In thousands) Total 2016 $ 1,200 2017 1,211 2018 1,470 2019 1,671 2020 1,502 2021-25 9,513 Net periodic pension costs for the Swiss pension plan include the following components: 2015 2014 (In thousands) Components of net periodic (income) cost Service cost $ 2,300 $ 2,170 Interest cost 673 594 Net prior service cost credit (93 ) — Expected return on plan assets (1,003 ) (769 ) Net periodic cost $ 1,877 $ 1,995 We expect to make a contribution of approximately $1.7 million to our pension plan in 2016, which is the legal funding regulation minimum for the Swiss pension plan. Israeli Severance Pay We provide severance payments based on Israeli law and certain other circumstances to employees of our Israeli subsidiary. We establish a liability for severance pay based on the most recent monthly salary of each employee multiplied by the respective number of years of employment, over the period of employment. We make monthly deposits designed to fund a portion of the overall severance liability and those deposits are recorded as an asset in our consolidated balance sheet. In the event of a separation, the employee receives the balance in deposited funds with any remaining severance liability balance paid by us. As of June 30, 2015, our severance liability (classified in other liabilities within our consolidated balance sheet) was $1.9 million and our severance deposit (classified as other assets within the consolidated balance sheet) was $1.8 million. We charged approximately $0.3 million to expense in the fiscal year 2015 related to this severance plan. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | 13. Share-Based Payments We recognize expense for the estimated fair value of all share-based payments to employees on a straight-line basis over the award vesting period. For the fiscal years ended June 30, 2015, 2014, and 2013, we recorded expense of approximately $27.0 million, $22.8 million and $18.0 million, respectively, in connection with our share-based payment awards. For the fiscal years ended June 30, 2015, 2014 and 2013, we recognized tax benefits of $9.1 million, $8.3 million and $6.7 million, respectively, related to the expense recorded in connection with our share-based payment awards. Share-Based Compensation Plans Employee Stock Purchase Plan On November 16, 2000, we adopted the 2000 Employee Stock Purchase Plan, which was amended on November 18, 2004 and November 18, 2010 (2000 Stock Purchase Plan), and which provides for the issuance of up to a total of 4,000,000 shares of common stock to participating employees. At the end of each designated purchase period, which occurs every six months on March 31 and September 30, employees can elect to purchase shares of our common stock with contributions of between 1% and 10% of their base pay, accumulated via payroll deductions, at an amount equal to 85% of the lower of the fair market value of the common stock on the first day of each 24-month offering period or the last day of the applicable six-month purchase period. Our employee stock purchase plan has several complex features that make determining fair value on the grant date impracticable. Accordingly, we measure the fair value of these awards at intrinsic value (the value of our common stock less the employee purchase price) at the end of each reporting period. For the fiscal year ended June 30, 2015, we recorded compensation cost of approximately $0.5 million associated with our employee stock purchase plan. As a result of employee stock purchases in fiscal year 2015 we issued approximately 109,000 shares of our common stock. The aggregate intrinsic value of shares issued under the employee stock plan during fiscal year 2015 was $0.5 million. At June 30, 2015, based on employee withholdings and our common stock price at that date, approximately 31,000 shares of common stock, with an approximate intrinsic value of $0.1 million would have been eligible for issuance were June 30, 2015 to have been a designated stock purchase date. Stock Incentive Plans 2009 Stock Incentive Plan On November 19, 2009, we adopted the 2009 Stock Incentive Plan (the 2009 Plan), which provides for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. Stock option awards under this plan have a 10-year maximum contractual term and must be issued at an exercise price of not less than 100% of the fair market value of the common stock at the date of grant. The 2009 Plan is administered by the Board of Directors, which has the authority to determine to whom options may be granted, the period of exercise and what other restrictions, if any, should apply. Vesting for awards granted to date under the 2009 Plan is principally over four years from the date of the grant, with 25% of the award vesting after one year and 6.25% of the award vesting each quarter thereafter. We initially reserved 2,750,000 shares of our common stock for issuance under the 2009 Plan, plus additional shares equal to the number of shares subject to outstanding awards under our prior plans which expire, terminate or are otherwise surrendered, cancelled, forfeited, or repurchased by us. On November 14, 2013 and November 20, 2014, we adopted amendments to our 2009 Stock Incentive Plan to increase the number of shares of common stock authorized for issuance under the 2009 Plan by an additional 2,400,000 and 1,500,000 shares, respectively. The plan remained unchanged in all other respects. Valuation and Related Activity Compensation cost associated with stock options represented approximately $0.2 million of the total share-based payment expense recorded for the fiscal year ended June 30, 2015. The stock options were valued using a Black Scholes method of valuation and the resulting fair value is recorded as compensation cost on a straight line basis over the option vesting period. There were no stock option grants during the fiscal year ended June 30, 2015, 2014, or 2013. During the fiscal year ended June 30, 2014, in connection with our acquisition of Andera, we assumed unvested options held by employees of Andera and converted those options into options to purchase Bottomline stock. A summary of stock option and restricted stock activity for fiscal year 2015 is as follows; in respect of shares available for grant, the shares are available for issuance by us as either a stock option or as a restricted stock award: Non-vested Stock Stock Options Shares Number Weighted Number Weighted Weighted Aggregate (in thousands, except per share data) Awards outstanding at June 30, 2014 3,923 1,968 $ 26.85 405 $ 10.76 3.8 $ 7,759 Plan amendment 1,500 Awards granted (1) (1,450 ) 1,133 $ 27.05 — $ — Shares vested (895 ) $ 26.27 Stock options exercised (136 ) $ 11.74 Awards forfeited (1) 120 (102 ) $ 27.61 (3 ) $ 7.09 Awards expired (2 ) $ 11.09 Awards outstanding at June 30, 2015 4,093 2,104 $ 27.17 264 $ 10.28 3.7 $ 4,623 Stock options exercisable at June 30, 2015 255 $ 10.41 3.5 $ 4,433 (1) The 2009 Plan has a fungible share pool in which restricted stock awards are counted against the plan (or replenished within the plan, in respect of award forfeitures) as 1.28 shares for each one share of Common Stock subject to such restricted stock award. The total intrinsic value of options exercised during the fiscal years ended June 30, 2015, 2014 and 2013 was approximately $2.0 million, $5.5 million and $5.6 million, respectively. The total fair value of stock options that vested during the fiscal years ended June 30, 2015, 2014 and 2013 was approximately $0.2 million, $0.3 million and $0.8 million, respectively. As of June 30, 2015, there was approximately $0.1 million of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over a weighted average period of 0.9 years. The majority of our restricted stock awards vest over a four year period on a vesting schedule similar to our employee stock options; however, certain restricted stock awards vest over either a two or five year period and restricted stock awards granted to our non-employee directors upon his or her election to the Board of Directors and annually thereafter vest after a one year period. Restricted stock awards are valued based on the closing price of our common stock on the date of grant, and compensation cost is recorded on a straight line basis over the share vesting period. The total fair value of restricted stock awards that vested during the fiscal years ended June 30, 2015, 2014 and 2013 was approximately $26.4 million, $30.1 million and $20.8 million, respectively. We recorded expense of approximately $26.3 million associated with our restricted stock awards for the fiscal year ended June 30, 2015. As of June 30, 2015, there was approximately $69.8 million of unrecognized compensation cost related to restricted stock awards that will be recognized as expense over a weighted average period of 1.7 years. Excluding the impact of shares issued as purchase consideration with forfeiture provision, approximately 0.9 million shares of restricted stock awards vested during the year ended June 30, 2015. Stock Issued in Acquisitions Retention of key personnel in businesses we acquire is critical to us because it helps to ensure that we maximize the value of companies we acquire, which we believe is vitally important to our stockholders. Accordingly, in order to maximize the retention of key employees, we attach forfeiture provisions to the shares we issue to acquire certain businesses. This has the effect of requiring key employees to stay in our employment, post-acquisition, in order to earn the full value of the stock we issue. These shares are issued as purchase consideration, but as a result of the forfeiture provisions we attach they are categorized as compensatory awards under US GAAP. The forfeiture provisions on these shares typically lapse over a four or five year period. During the fiscal year ended June 30, 2015, we issued 774,000, 60,000 and 4,999 shares of our common stock as purchase consideration in our acquisitions of Intellinx, Arian and Litco, respectively. The shares were issued to certain equity holders of the acquired companies, all of whom joined us as employees or were otherwise required to render post-acquisition services in order to vest in the shares. Shares issued as purchase consideration with forfeiture provisions activity for the year ended June 30, 2015 are reflected in the table below. These shares were not issued out of our shareholder approved stock plans and do not represent grants or awards of shares from those plans. Non-vested Stock Number Weighted Purchase consideration shares with forfeiture provisions outstanding at June 30, 2014 181 $ 34.03 Purchase consideration shares with forfeiture provisions 839 $ 22.74 Lapse of forfeiture provisions (82 ) $ 30.91 Shares forfeited (32 ) $ 35.06 Purchase consideration shares with forfeiture provisions outstanding at June 30, 2015 906 $ 23.82 |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 14. Net Income per Share The following table sets forth the computation of basic and diluted net income per share: Fiscal Year Ended June 30, 2015 2014 2013 (in thousands except per share data) Numerator—basic and diluted: Net loss $ (34,680 ) $ (19,104 ) $ (14,395 ) Denominator: Shares used in computing basic and diluted net loss per share attributable to common stockholders 37,806 36,834 35,444 Basic and diluted net loss per share attributable to common stockholders $ (0.92 ) $ (0.52 ) $ (0.41 ) At June 30, 2015, 2014 and 2013, approximately 2.9 million, 2.6 million and 2.9 million shares of unvested restricted stock and stock options were excluded from the calculation of diluted earnings per share, respectively, as their effect on the calculation would have been anti-dilutive. As more fully discussed in Note 10, in December 2012 we issued convertible notes maturing in December 2017. We intend, upon conversion or maturity of the Notes, to satisfy any conversion premium by issuing shares of our common stock. We have also issued warrants for up to 6.3 million shares of our common stock at an exercise price of $40.04 per share. For the years ended June 30, 2015, 2014 and 2013, shares potentially issuable upon conversion or maturity of the Notes or upon exercise of the warrants were excluded from our earnings per share calculations as their effect would have been anti-dilutive. |
Operations by Industry Segments
Operations by Industry Segments and Geographic Area | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Operations by Industry Segments and Geographic Area | 15. Operations by Industry Segments and Geographic Area Operating segments are the components of our business for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our operating segments are organized principally by the type of product or service offered and by geography. During fiscal year 2015, we changed the method of allocating certain general and administrative expenses to our operating segments. To ensure a consistent presentation of the measurement of segment revenues and profit or loss, these changes are reflected for all periods presented. Similar operating segments have been aggregated into three reportable segments as follows: Payments and Transactional Documents. Hosted Solutions. Digital Banking. Periodically a sales person in one operating segment will sell products and services that are typically sold within a different operating segment. In such cases, the transaction is generally recorded by the operating segment to which the sales person is assigned. Accordingly, segment results can include the results of transactions that have been allocated to a specific segment based on the contributing sales resources, rather than the nature of the product or service. Conversely, a transaction can be recorded by the operating segment primarily responsible for delivery to the customer, even if the sales person is assigned to a different operating segment. Our chief operating decision maker assesses segment performance based on a variety of factors that normally include segment revenue and a segment measure of profit or loss. Each segment’s measure of profit or loss is on a pre-tax basis and excludes stock compensation expense, acquisition and integration related expenses (including acquisition related contingent consideration), amortization of intangible assets, restructuring related charges, non-cash pension expenses, certain non-cash items related to our convertible notes, charges related to reserves established or released against our deferred tax assets and other non-core or non-recurring gains and losses that arise from time. There are no inter-segment sales; accordingly, the measure of segment revenue and profit or loss reflects only revenues from external customers. The costs of certain corporate level expenses, primarily general and administrative expenses, are allocated to our operating segments based on a percentage of the segment’s revenues. We do not track or assign our assets by operating segment. We have presented segment information for the years ended June 30, 2015, 2014 and 2013 according to the segment descriptions above. Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) Segment revenue: Payments and Transactional Documents $ 127,527 $ 125,456 $ 120,590 Hosted Solutions 126,178 107,360 67,504 Digital Banking 77,184 67,769 66,680 $ 330,889 $ 300,585 $ 254,774 Segment measure of profit: Payments and Transactional Documents $ 33,140 $ 37,461 $ 35,143 Hosted Solutions 15,329 8,344 4,577 Digital Banking 12,440 7,045 2,930 Total measure of segment profit $ 60,909 $ 52,850 $ 42,650 A reconciliation of the measure of segment profit to our GAAP loss before the provision for income taxes, is as follows: Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) Total measure of segment profit $ 60,909 $ 52,850 $ 42,650 Less: Amortization of intangible assets (30,383 ) (26,242 ) (19,549 ) Share-based compensation expense (27,025 ) (22,821 ) (18,031 ) Acquisition and integration related expenses (2,835 ) (4,563 ) (10,827 ) Restructuring expense (1,297 ) (1,371 ) (1,179 ) Non-cash pension expense (56 ) (331 ) — Loss on derivative instruments, net — — (4,435 ) Other non-core expenses (76 ) — — Other expense, net (15,553 ) (14,544 ) (6,922 ) Loss before income taxes $ (16,316 ) $ (17,022 ) $ (18,293 ) The following depreciation expense amounts are included in the segment measure of profit (loss): Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) Depreciation expense: Payments and Transactional Documents $ 2,730 $ 2,231 $ 1,944 Hosted Solutions 5,134 3,950 2,772 Digital Banking 2,643 2,069 2,145 Total depreciation expense $ 10,507 $ 8,250 $ 6,861 We have presented geographic information about our revenues below. This presentation allocates revenue based on the point of sale, not the location of the customer. Accordingly, we derive revenues from geographic locations based on the location of the customer that would vary from the geographic areas listed here; particularly in respect of financial institution customers located in Australia and Canada for which the point of sale was the United States. Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) North America $ 193,286 $ 171,641 $ 167,368 United Kingdom 93,735 96,719 79,774 Continental Europe 38,053 29,047 4,311 Asia-Pacific and Middle East 5,815 3,178 3,321 Total revenues from unaffiliated customers $ 330,889 $ 300,585 $ 254,774 Long-lived assets, excluding deferred tax assets and intangible assets, which are based on geographical location, were as follows: Fiscal Year Ended June 30, 2015 2014 (in thousands) Long-lived assets: North America $ 45,350 $ 36,856 United Kingdom 8,573 6,611 Continental Europe 2,390 3,224 Asia-Pacific and Middle East 2,280 157 Total long-lived assets $ 58,593 $ 46,848 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes Provision for Income Taxes We file US federal income tax returns and returns in various state, local and foreign jurisdictions. Generally, we are no longer subject to US federal, state and local, or foreign income tax examinations by tax authorities for years before 2001. Currently, we are not under examination relating to tax returns that have been previously filed. We permanently reinvest the earnings, if any, of our international subsidiaries and therefore we do not provide for US income taxes that could result from the distribution of those earnings to the US parent. If any such earnings were ultimately distributed to the US in the form of dividends or otherwise, or if the shares of our international subsidiaries were sold or transferred, we would likely be subject to additional US income taxes, net of the impact of any available foreign tax credits. It is not practicable to estimate the amount of unrecognized deferred US taxes on these undistributed earnings. Our provision for (benefit from) income taxes consists of the following: Year Ended June 30, 2015 2014 2013 (in thousands) Current: Federal $ 1,433 $ 1,464 $ (173 ) State 188 80 21 Foreign 4,570 6,319 4,983 6,191 7,863 4,831 Deferred: Federal 14,720 42 (5,315 ) State 1,154 (1,180 ) (1,338 ) Foreign (3,701 ) (4,643 ) (2,076 ) 12,173 (5,781 ) (8,729 ) $ 18,364 $ 2,082 $ (3,898 ) Our income tax expense (benefit) includes a tax benefit of $0.2 million, $0.1 million and $0.1 million in fiscal years 2015, 2014 and 2013, respectively, relating to a reduction in our unrecognized tax benefits upon the expiration of certain statutes of limitations. We recorded an increase to additional paid-in capital of $0.1 million during fiscal year 2015 for excess tax benefits from vesting of restricted stock awards and from non-qualified stock option exercises that reduced currently payable income taxes. We recorded an increase to other comprehensive income of $1.0 million during fiscal year 2015 for an increase in our deferred tax asset related to our Swiss pension. Net income (loss) before income taxes by geographic area is as follows: Year Ended June 30, 2015 2014 2013 (in thousands) United States $ (18,277 ) $ (25,310 ) $ (29,129 ) United Kingdom 16,728 19,035 10,651 Continental Europe (7,608 ) (10,936 ) (352 ) Asia-Pacific and Middle East (7,159 ) 189 537 $ (16,316 ) $ (17,022 ) $ (18,293 ) A reconciliation of the federal statutory rate to the effective income tax rate is as follows (certain prior year amounts in the reconciliation have been reclassified to conform to the fiscal year 2015 presentation): Year Ended June 30, 2015 2014 2013 Tax expense (benefit) at federal statutory rate (35.0 )% (35.0 )% (35.0 )% State taxes, net of federal benefit (5.2 ) (7.3 ) (7.4 ) Change in valuation allowance 98.6 1.2 0.6 Foreign branch operations, net of foreign tax deductions 33.1 42.3 17.8 Changes in uncertain tax positions 13.0 12.7 3.9 Non-deductible executive compensation 5.3 5.1 2.4 Non-deductible share-based payments 3.6 2.3 1.2 Non-deductible acquisition costs 3.0 6.6 5.0 Non-deductible other expenses 1.8 1.4 1.4 Non-deductible interest 0.0 5.3 0.0 Convertible debt 0.0 0.0 5.5 Changes in tax laws or rates (1.8 ) (3.4 ) (2.1 ) Research and development credit (2.7 ) (2.5 ) (5.2 ) Tax rate differential on foreign earnings (4.2 ) (16.4 ) (8.5 ) Other 3.1 (0.1 ) (0.9 ) 112.6 % 12.2 % (21.3 )% The excess of our effective tax rate over statutory tax rates was primarily due to the increase of our US valuation allowance in fiscal year 2015 as well as our inability to utilize certain foreign tax credits as a reduction to foreign income that is included in our US tax return. This has the effect of taxing certain income twice, resulting in a higher overall tax rate. Deferred Tax Assets and Liabilities We recognize deferred tax assets and liabilities based on the differences between their financial reporting and tax basis by applying tax rates that are expected to be in effect when the differences reverse. Significant components of our deferred income taxes are as follows: June 30, 2015 2014 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 14,512 $ 19,364 Deferred revenue 9,528 6,954 Stock compensation 5,956 5,823 Research and development and other credits 5,279 4,592 Accrued pension 3,212 2,365 Various accrued expenses 2,627 2,345 Property and equipment 251 463 Allowances and reserves 235 235 Other 56 50 Total deferred tax assets 41,656 42,191 Valuation allowance (23,584 ) (7,923 ) Deferred tax assets, net of valuation allowance 18,072 34,268 Deferred tax liabilities: Intangible assets (38,137 ) (36,171 ) Property and equipment (6,848 ) (3,324 ) Convertible debt (3,040 ) (4,126 ) Other (201 ) (61 ) Total deferred tax liabilities (48,226 ) (43,682 ) Net deferred tax liabilities $ (30,154 ) $ (9,414 ) At June 30, 2015, we had US net operating loss carryforwards of $71.6 million, which expire at various times through fiscal year 2035. Included within this amount is approximately $54.4 million of excess tax deductions associated with restricted stock awards that have vested and with non-qualified stock options that have been exercised. When these excess tax benefits actually result in a reduction to currently payable income taxes, the benefit will be recorded as an increase to additional paid-in capital. Approximately $45.6 million of the aforementioned excess tax benefits have not been reflected as a component of our deferred tax assets at June 30, 2015, as these amounts are recognized for financial reporting purposes only when they actually reduce currently payable income taxes. We also had foreign net operating loss carryforwards (primarily in Europe) of $13.3 million which have no statutory expiration date and $0.5 million that will expire at various times through fiscal year 2035, respectively. Included within this amount is approximately $0.7 million of excess tax deductions associated with restricted stock awards that have vested. When these excess tax benefits actually result in a reduction to currently payable income taxes, the benefit will be recorded as an increase to additional paid-in capital. These excess tax benefits have not been reflected as a component of our deferred tax assets at June 30, 2015, as these amounts are recognized for financial reporting purposes only when they actually reduce currently payable income taxes. We utilized approximately $9.0 million of net operating losses in 2015, consisting of $8.4 million utilized in the US and $0.6 million utilized in our foreign operations, predominately in Europe. We have approximately $4.5 million of research and development tax credit carryforwards available, which expire at various points through fiscal year 2035. Our research and development tax credit carryforwards were increased by $0.3 million resulting from the enactment in the US of the Tax Increase Prevention Act of 2014, which retroactively extended the US research and development credit for one year beginning January 1, 2014. Our operating losses and tax credit carryforwards may be subject to limitations under provisions of the Internal Revenue Code. Valuation Allowance We record a deferred tax asset if we believe that it is more likely than not that we will realize a future tax benefit. Ultimate realization of any deferred tax asset is dependent on our ability to generate sufficient future taxable income in the appropriate tax jurisdiction before the expiration of carryforward periods, if any. Our assessment of deferred tax asset recoverability considers many different factors including historical and projected operating results, the reversal of existing deferred tax liabilities that provide a source of future taxable income, the impact of current tax planning strategies and the availability of future tax planning strategies. We establish a valuation allowance against any deferred tax asset for which we are unable to conclude that recoverability is more likely than not. This is inherently judgmental, since we are required to assess many different factors and evaluate as much objective evidence as we can in reaching an overall conclusion. The particularly sensitive component of our evaluation is our projection of future operating results since this relies heavily on our estimates of future revenue and expense levels by tax jurisdiction. At June 30, 2015 we have recorded a $23.6 million valuation allowance against certain deferred tax assets given the uncertainty of recoverability of these amounts. The valuation allowance increased by $15.7 million in fiscal year 2015 from fiscal year 2014 primarily due to an increase to the US valuation allowance which is discussed further below. Approximately $3.2 million of the valuation allowance will be reversed through additional paid-in capital if realized, as it relates to excess tax benefits arising from non-qualified stock option exercises occurring prior to our adoption of the expense recognition criteria for share-based payments. In making our assessment of US deferred tax asset recoverability at June 30, 2015, we considered our historical financial results, our projected future financial results, the planned reversal of existing deferred tax liabilities and the impact of certain tax planning actions that were largely completed during the quarter ended June 30, 2015. Based on our analysis we noted both positive and negative factors relative to our ability to support realization of certain US deferred tax assets. However, based on the weighting of all the evidence, including the near term effect on our US income projections of investments we are making in our product and systems infrastructure and the longer term effect of the continued migration of certain taxable income, via the ownership of rights to certain intangible assets into tax jurisdictions other than the US, we concluded that it was more likely than not that a portion of our US deferred tax assets may not be recovered. As a result, we increased our valuation allowance and recorded income tax expense in the amount of $16.0 million. The establishment of a valuation allowance has no effect on our ability to use the underlying deferred tax assets to reduce cash tax payments in the future to the extent that we generate US taxable income. Uncertain Tax Positions As of June 30, 2015, we had approximately $6.3 million of total gross unrecognized tax benefits, of which approximately $1.5 million represented the amount of unrecognized tax benefits that, if recognized, would favorably affect our effective income tax rate in future periods. Approximately $2.5 million of the gross unrecognized tax benefits resulted in reductions to the deferred tax asset relating to net operating losses and to the valuation allowance, and approximately $2.3 million of the gross unrecognized tax benefits resulted in a reduction to tax credit carryforwards and other deferred tax assets. We currently anticipate that our unrecognized tax benefits will decrease within the next twelve months by approximately $0.3 million, as a result of the expiration of certain statutes of limitations associated with intercompany transactions subject to tax in multiple jurisdictions. A summary of the changes in the gross amount of unrecognized tax benefits is shown below: (in thousands) Balance at July 1, 2012 $ 958 Additions related to current year tax positions 854 Additions related to prior year tax positions 129 Reductions due to lapse of statute of limitations (77 ) Reductions due to settlements (21 ) Foreign currency translation (14 ) Balance at June 30, 2013 1,829 Additions related to current year tax positions 2,265 Additions related to prior year tax positions 11 Reductions due to lapse of statute of limitations (72 ) Foreign currency translation 52 Balance at June 30, 2014 4,085 Additions related to current year tax positions 2,392 Additions related to prior year tax positions 145 Reductions due to lapse of statute of limitations (213 ) Foreign currency translation (104 ) Balance at June 30, 2015 $ 6,305 We recognize interest and penalties related to uncertain tax positions as a component of income tax expense. To the extent that the accrued interest and penalties do not ultimately become payable, the amounts accrued will be derecognized and reflected as an income tax benefit in the period that such a determination is made. Our accrued interest and penalties related to uncertain tax positions as of June 30, 2015 and 2014, and recorded in each of the annual periods ending June 30, 2015, 2014, and 2013, were not significant. |
Guarantees
Guarantees | 12 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Guarantees | 17. Guarantees We generally offer a standard warranty on our products and services, specifying that our software products will perform in accordance with published product specifications and that any professional services will conform with applicable specifications and industry standards. Further, we offer, as an element of our standard licensing arrangements, an indemnification clause that protects the licensee against liability and damages, including legal defense costs arising from claims of patent, copyright, trademark or other similar infringements by our software products. To date, we have not had any significant warranty or indemnification claims against our products. At June 30, 2015 and 2014, warranty accruals were not significant. Certain of our arrangements with customers include clauses whereby we may be subject to penalties for failure to meet certain service level requirements; however, we have not incurred any related material penalties to date. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 18. Quarterly Financial Data (unaudited) The following table contains selected quarterly financial data for the fiscal years ended June 30, 2014 and 2015. The quarterly earnings per share information is computed separately for each period. Therefore, the sum of the quarterly per share amounts may differ from the total year per share amounts. For the quarters ended September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, (in thousands, except per share data) Revenues $ 67,249 $ 73,405 $ 78,252 $ 81,679 $ 81,343 $ 82,225 $ 81,951 $ 85,370 Gross profit 37,794 41,001 44,661 46,461 47,030 48,112 47,038 49,268 Net loss $ (6,048 ) $ (7,265 ) $ (4,310 ) $ (1,481 ) $ (3,268 ) $ (1,962 ) $ (7,830 ) $ (21,620 ) Basic and diluted net loss per share $ (0.17 ) $ (0.20 ) $ (0.12 ) $ (0.04 ) $ (0.09 ) $ (0.05 ) $ (0.21 ) $ (0.57 ) Shares used in computing basic and diluted net loss per share 36,214 36,667 37,081 37,374 37,647 37,759 37,762 38,056 (1) Net income and the resulting basic and diluted net loss per share amounts reflect the impact of income tax expense of $16,034 recorded during the quarter ended June 30, 2015 in connection with the recognition of a deferred tax asset valuation allowance. |
Significant Accounting Polici26
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and the accounts of our subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates include, but are not limited to, revenue recognition (particularly revenue recognition associated with contracts accounted for on a percentage of completion basis), allowances for doubtful accounts, recoverability of deferred tax assets, determining the fair value associated with acquired assets and liabilities including deferred revenue, intangible asset and goodwill impairment, pension benefit obligations and certain other of our accrued liabilities. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation We have international subsidiaries in Europe, in the Asia-Pacific region and in Canada, whose functional currencies are either the British Pound Sterling, Swiss Franc or European Euro (in respect of our European subsidiaries), the Australian Dollar (in respect of our Asia Pacific subsidiary) or the Canadian Dollar (in respect of our Canadian subsidiary). Assets and liabilities of all of our international subsidiaries have been translated into US dollars at year-end exchange rates, and results of operations and cash flows have been translated at the average exchange rates in effect during the year. Gains or losses resulting from foreign currency translation are included as a component of accumulated other comprehensive income or loss. Foreign currency transaction gains and losses are included in results of operations as incurred and are not significant to our overall operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The carrying value of these instruments approximates their fair value. At June 30, 2015 our cash equivalents consisted of demand deposit accounts and money market funds. |
Marketable Securities | Marketable Securities All marketable securities must be classified as one of the following: held to maturity, available for sale, or trading. At June 30, 2015 we held $23.2 million of marketable securities which consisted primarily of US treasury notes, residential mortgage-backed securities, and U.S. corporate debt securities. Our held to maturity investments, all of which mature within one year, are recorded at amortized cost and interest income is recognized in earnings when earned. The cost of securities sold is determined based on the specific identification method. At June 30, 2015 and 2014 the amortized cost of our held-to-maturity investments approximated their fair value. Our securities classified as available for sale are recorded at fair value, with all unrealized gains or losses recorded as a component of other comprehensive income or (loss). At June 30, 2015 and 2014, $12.7 million and $13.2 million, respectively, of our available for sale securities had maturities of less than one year and the remaining $10.4 million and $10.5 million, respectively, had maturities of between one and five years. The cost of securities sold is determined based on the specific identification method. At June 30, 2015 and 2014, our net unrealized loss associated with our investment securities was not significant. At June 30, 2015, the difference between the fair value of our available for sale securities and their amortized cost was not significant. The table below presents information regarding our marketable securities by major security type as of June 30, 2015 and 2014. June 30, 2015 June 30, 2014 Held to Available Total Held to Available Total (in thousands) Marketable securities: Corporate and other debt securities 65 23,160 23,225 80 23,725 23,805 Total marketable securities $ 65 $ 23,160 $ 23,225 $ 80 $ 23,725 $ 23,805 All of our available for sale marketable securities are included in current assets as we do not have the positive intent to hold these investments until maturity. The following table presents the aggregate fair values and gross unrealized losses for those available for sale investments that were in an unrealized loss position as of June 30, 2015, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: As of June 30, 2015 Less than 12 Months Fair Unrealized Loss (in thousands) Residential Mortgage Backed $ 2,011 5 U.S. Corporate 5,404 5 $ 7,415 10 |
Other Investments | Other Investments We have certain other investments accounted for at cost, as we do not have the ability to exercise significant influence over the investees. The carrying value of these investments was $3.4 million and $3.3 million as of June 30, 2015 and June 30, 2014, respectively, and they are reported as a component of our other assets. The investments are evaluated periodically for indicators of impairment and impairment losses, to the extent occurring, would be recorded as an operating expense in the period incurred. At June 30, 2015, we reviewed the carrying value of these investments and concluded that they were not impaired. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist of cash and cash equivalents and accounts receivable. We had approximately $109.3 million of cash and cash equivalents invested with seven financial institutions at June 30, 2015. Balances of cash and cash equivalents are typically in excess of any insurance, such as FDIC coverage, that may protect our deposits. Our accounts receivable are reported in our consolidated balance sheets net of allowances for uncollectible accounts. We believe that the concentration of credit risk with respect to accounts receivable is limited due to the large number of companies and diverse industries comprising our customer base. On-going credit evaluations are performed, generally with a focus on new customers or customers with whom we have had no prior collections history, and collateral is generally not required. We maintain reserves for potential losses based on customer specific situations as well as our historic experience and such losses, in the aggregate, have not exceeded our expectations. There were no customers that, individually, accounted for more than 10% of our consolidated accounts receivable balance at June 30, 2015 or 2014. For the fiscal years ended June 30, 2015, 2014, and 2013, we had no customer that accounted for 10% or greater of our consolidated revenues. |
Financial Instruments | Financial Instruments The fair value of our financial instruments, which include cash and cash equivalents, marketable securities, accounts receivable and accounts payable and our convertible senior notes are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of perceived risk. The fair value of these financial instruments is discussed in Note 3 – Fair Values of Assets and Liabilities. |
Accounts Receivable | Accounts Receivable Accounts receivable include unbilled receivables of approximately $4.9 million and $1.5 million at June 30, 2015 and 2014, respectively. Unbilled receivables at June 30, 2015 arose partially from our January 2015 acquisition of Intellinx, Ltd. Unbilled receivables include revenues recognized on long-term contracts for which billings have not yet been presented to the customers, based on the contractually stipulated billing requirements. |
Inventory | Inventory Inventory, all of which is categorized as finished goods, is stated at the lower of our cost of purchase (first-in, first-out method) or market. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated amortization and depreciation. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows: Property, equipment, furniture, fixtures and vehicles 3-7 years Software 3-5 years Technical equipment 3-5 years Building (Reading, England) 50 years Leasehold improvements Remaining lease term, inclusive of expected renewal periods Periodically, based on specific transactions, we may assign a life outside of the general range of useful lives noted here if a particular asset’s estimated period of use falls outside of the normal range. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We initially record goodwill and other intangible assets at their estimated fair values, and we review these assets periodically for impairment. Goodwill represents the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed in a business combination and is tested at least annually for impairment; historically during our fourth quarter. Our specifically identifiable intangible assets, which consist principally of customer related assets and core technology, are reported net of accumulated amortization and are amortized over their estimated useful lives at amortization rates that are proportional to each asset’s estimated economic benefit. We review the carrying value of these intangible assets annually, or more frequently if indicators of impairment are present. In performing our review of the recoverability of goodwill and other intangible assets we consider several factors, including whether there have been significant changes in legal factors or the overall business climate that could affect the underlying value of an asset. We also consider whether there is an expectation that the asset will be sold or disposed of before the end of its originally estimated useful life. In the case of goodwill, we must estimate the fair value of the reporting unit to which the goodwill is assigned. If as a result of examining any of these factors we conclude that the carrying value of goodwill or any other intangible asset exceeds its estimated fair value, we will recognize an impairment charge and reduce the carrying value of the asset to its estimated fair value. |
Advertising Costs | Advertising Costs We expense advertising costs as incurred. Advertising costs were $1.3 million, $1.0 million, and $0.6 million for the years ended June 30, 2015, 2014 and 2013, respectively. |
Shipping and Handling Costs | Shipping and Handling Costs We expense all shipping, handling and delivery costs in the period incurred, generally as a component of equipment and supplies cost of revenues. |
Commissions Expense | Commissions Expense We record commissions as a component of sales and marketing expense when earned by the respective salesperson. Excluding certain arrangements within our Digital Banking segment, for which commissions are earned as revenue is recorded over the period of project performance, substantially all software commissions are earned in the month in which a customer order is received. Commissions associated with professional services are typically earned in the month that services are rendered. Commissions associated with post-contract customer support arrangements and subscription-based arrangements are typically earned when the customer is billed for the underlying contractual period, or in the period the order is received. Commissions are normally paid within thirty days of the month in which they are earned. |
Research and Development Expenditures | Research and Development Expenditures We expense research and development costs in the period incurred. |
Debt Issuance Costs | Debt Issuance Costs We incurred certain third party costs in connection with our issuance of the convertible notes (the Notes), as defined in Note 10, principally related to underwriting and legal fees. These costs are included as part of other assets on our consolidated balance sheets and are being amortized to interest expense ratably over the five-year term of the Notes. |
Income Taxes and Income Tax Uncertainties | Income Taxes and Income Tax Uncertainties We recognize deferred tax assets and deferred tax liabilities based on differences in the financial reporting and tax basis of the underlying assets or liabilities, measured at tax rates that are expected to be in effect when the differences reverse. A valuation allowance to reduce the carrying value of deferred tax assets is recorded if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As discussed in Note 16, we recorded a valuation allowance against a portion of our US deferred tax assets during the year ended June 30, 2015. In respect of income tax uncertainties, we perform a two-step analysis for all tax positions. The first step involves an evaluation of the underlying tax position based solely on technical merits (such as tax law) and the second step involves measuring the tax position based on the probability of it being sustained in the event of a tax examination. We recognize tax benefits at the largest amount that we deem more likely than not will be realized upon ultimate settlement of any tax uncertainty. Tax positions that fail to qualify for recognition are recognized in the period in which the more-likely-than-not standard has been reached, when the tax positions are resolved with the respective taxing authority or when the statute of limitations for tax examination has expired. We record any interest or penalties accruing in respect of uncertain tax positions as a component of income tax expense. |
Share Based Compensation | Share Based Compensation We recognize expense for the estimated fair value of our share-based compensation. The expense associated with share based payment awards is recognized on a straight-line basis over the award’s vesting period. |
Capitalized Software Costs | Capitalized Software Costs Capitalization of software development costs, other than software developed for internal use which is discussed below, begins upon the establishment of technological feasibility. The establishment of technological feasibility and the ongoing assessment of recoverability of capitalized software development costs requires considerable judgment by us with respect to certain external factors, including, but not limited to, technological feasibility, anticipated future gross revenues, estimated economic life, and changes in software and hardware technologies. For the years ended June 30, 2015, 2014 and 2013, there were no material costs capitalized since substantially all development costs were incurred prior to attaining technological feasibility. We capitalize certain costs associated with internal use software, including software that we use to provide our hosted solutions, during the application development stage. We expense costs associated with preliminary project phase activities, training, maintenance and any post-implementation period costs as incurred. For the years ended June 30, 2015, 2014 and 2013 we capitalized $10.7 million, $4.4 million and $1.5 million, respectively, of internal use software development costs. The substantial majority of these costs were costs associated with our SaaS based technology platforms. Capitalized internal use software costs are amortized over estimated useful lives ranging from 2 to 7 years once the related project has been completed and deployed for customer use. For the fiscal years ended June 30, 2015, 2014 and 2013 we expensed $1.3 million $0.4 million and $0.1 million of capitalized internal use software costs. At June 30, 2015, 2014 and 2013 the net carrying value of capitalized internal use software was $14.9 million, $5.6 million and $1.6 million, respectively. |
Revenue Recognition | Revenue Recognition Software Arrangements We recognize revenue on our software license arrangements when four basic criteria are met: persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed and determinable and collectability is probable. We consider a fully executed agreement or a customer purchase order to be persuasive evidence of an arrangement. Delivery is deemed to have occurred upon transfer of the product to the customer or the completion of services rendered. We consider the arrangement fee to be fixed and determinable if it is not subject to adjustment and if the customer has not been granted extended payment terms. Excluding our long term contract arrangements where revenue is recorded on a percentage of completion basis, extended payment terms are deemed to be present when any portion of the software license fee is due in excess of 90 days after the date of product delivery. In arrangements that contain extended payment terms, software revenue is recorded as customer payments become contractually due, assuming all other revenue recognition criteria have been met. We consider the arrangement fee to be probable of collection if our internal credit analysis indicates that the customer will be able to pay contractual amounts as they become due. Our software arrangements often contain multiple revenue elements, such as software licenses, professional services and post-contract customer support. For multiple element software arrangements which qualify for separate element treatment, revenue is recognized for each element when each of the four basic criteria is met which, excluding post-contract customer support, is typically upon delivery. Revenue for post-contract customer support agreements is recognized ratably over the term of the agreement, which is generally one year. Revenue is allocated to each element, excluding the software license, based on vendor specific objective evidence (VSOE). VSOE is limited to the price charged when the element is sold separately or, for an element not yet being sold separately, the price established by management having the relevant authority. We do not have VSOE for our software licenses since they are seldom sold separately. Accordingly, revenue is allocated to the software license using the residual value method. Under the residual value method, revenue equal to VSOE of each undelivered element is recognized upon delivery of that element. Any remaining arrangement fee is then allocated to the software license. This has the effect of allocating any sales discount inherent in the arrangement to the software license fee. Certain of our software arrangements require significant customization and modification and involve extended implementation periods. These arrangements do not qualify for separate element revenue recognition treatment as described above, and instead must be accounted for under contract accounting. Under contract accounting, companies must select from two generally accepted methods of accounting: the completed contract method and the percentage of completion method. The completed contract method recognizes revenue and costs upon contract completion, and all project costs and revenues are reported as deferred items in the balance sheet until that time. The percentage of completion method recognizes revenue and costs on a contract over time, as the work progresses. We use the percentage of completion method of accounting for our long-term contracts, as we believe that we can make reasonably reliable estimates of progress toward completion. Progress is measured based on labor hours, as measured at the end of each reporting period, as a percentage of total expected labor hours. Accordingly, the revenue we record in any reporting period for arrangements accounted for on a percentage of completion basis is dependent upon our estimates of the remaining labor hours that will be incurred in fulfilling our contractual obligations. Our estimates at the end of any reporting period could prove to be materially different from final project results, as determined only at subsequent stages of project completion. To mitigate this risk, we solicit the input of our project professional staff on a monthly basis, as well as at the end of each financial reporting period, for purposes of evaluating cumulative labor hours incurred and verifying the estimated remaining effort to completion; this ensures that our estimates are always based on the most current projections available. Non-Software Arrangements For arrangements governed by general revenue recognition literature, such as with our SaaS offerings or equipment and supplies only sales, we recognize revenue when four basic criteria are met. These criteria are similar to those governing software transactions: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the arrangement fee is fixed or determinable and collectability is reasonably assured. For our SaaS offerings, revenue is generally recognized on a subscription or transaction basis over the period of performance. For arrangements consisting of multiple elements, revenue is allocated to each element based on a selling price hierarchy. The selling price of each element is based on VSOE if available, third-party evidence (TPE) if VSOE is not available or estimated selling price (ESP) if neither VSOE nor TPE are available. The residual method of allocation in a non-software arrangement is not permitted and, instead, arrangement consideration is allocated at the inception of the arrangement to all deliverables using the relative selling price method. The relative selling price method allocates any discount in the arrangement proportionately to each deliverable based on the proportion of each deliverable’s selling price to the total arrangement fee. We are typically unable to establish TPE, which is based on the selling price charged by unrelated third-party vendors for similar deliverables when they are sold separately, as we are generally unable to obtain sufficient information on actual vendor selling prices to substantiate TPE. The objective of ESP is to estimate the price at which we would transact if the deliverable were sold separately rather than as part of a multiple element arrangement. Our determination of ESP considers several factors including actual selling prices for similar transactions, gross margin expectations and our ongoing pricing strategy. We formally analyze our ESP determinations on at least an annual basis. Whether a deliverable represents a separate unit of accounting, thus resulting in discrete revenue recognition as the revenue recognition criteria for that deliverable are met, is dependent on whether the deliverable has value to the customer on a standalone basis. A deliverable has standalone value if it is sold separately by us or any other vendor or if the deliverable could be resold by the customer. Additionally, in an arrangement that includes a general right of return related to delivered items, delivery or performance of any undelivered items must be considered probable and substantially within our control. We periodically charge up-front fees related to installation and integration services in connection with certain of our SaaS offerings. These fees typically do not have stand-alone value and are deferred and recognized as revenue ratably over the estimated customer relationship period (generally five to ten years). The revenue recognition period associated with these fees normally commences upon customer implementation. Contract origination costs and incremental direct costs are expensed as incurred. Arrangements Including Both Software and Non-Software Deliverables Periodically we will enter an arrangement that contains both software and non-software deliverables. In such a transaction, the arrangement consideration is allocated to the software deliverables and non-software deliverables as a group, using the relative selling prices of each of the deliverables, by following the aforementioned selling price hierarchy. After this allocation is completed, the arrangement consideration allocated to the software deliverables is further allocated using the residual value method described above. Regardless of the allocation methodology or the nature of the deliverables, we limit the amount of revenue that can be recognized for delivered items to the amount that is not contingent on future deliverables or subject to customer specific return or refund rights. |
Earnings per Share | Earnings per Share We report both basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted average number of shares of common stock outstanding and excludes the dilutive effect of warrants, stock options or any other type of convertible securities. Diluted earnings per share is calculated based on the weighted average number of shares of common stock outstanding and the dilutive effect of stock options, warrants and other types of convertible securities are included in the calculation. Dilutive securities are excluded from the diluted earnings per share calculation if their effect is anti-dilutive. |
Comprehensive Income or Loss | Comprehensive Income or Loss Comprehensive income or loss includes all changes in equity during a period from non-owner sources, such as net income or loss, foreign currency translation adjustments, certain pension adjustments and unrealized gains and losses on available for sale securities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In June 2013, the Emerging Issues Task Force (EITF) reached final consensus on the presentation of an unrecognized tax benefit when a net operating loss carryforward or tax credit carryforward exists. This topic addressed the balance sheet presentation of a liability for an unrecognized tax benefit when settlement of the liability with the taxing authority would otherwise reduce a deferred tax asset for a net operating loss or tax credit carryforward under the provisions of the tax law. The EITF affirmed that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss or other tax credit carryforward when settlement in this manner is permissible under the tax law. This standard is applicable for annual periods beginning after December 31, 2013, and for interim periods within those annual periods. We adopted this standard prospectively effective July 1, 2014, resulting in a reduction of $2.3 million to non-current deferred tax assets and non-current other liabilities in our consolidated balance sheet. This did not have an impact on our consolidated statements of comprehensive income (loss) or cash flows. In May 2014, the Financial Accounting Standards Board (FASB) issued an accounting standard update which provides for new revenue recognition guidance, superseding nearly all existing revenue recognition guidance. The core principle of the new guidance is to recognize revenue when promised goods or services are transferred to customers, in an amount that reflects the consideration to which the vendor expects to receive for those goods or services. The new standard is expected to require more judgment and estimates within the revenue recognition process than required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to separate performance obligations. The new standard is also expected to significantly increase the financial statement disclosure related to revenue recognition. This standard is currently effective for us in our first quarter of our 2019 fiscal year (July 1, 2018) using one of two methods of adoption: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients as defined within the standard; or (ii) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application inclusive of certain additional disclosures. We are continuing to evaluate the expected impact of this standard on our consolidated financial statements and we have not yet selected a method of adoption. While our assessment of the impact of this standard is not complete, we currently believe that the most significant impact will be in two specific areas: • Under the new standard, the absence of VSOE in certain software license arrangements will no longer result in strict revenue deferral, as instead fair value will be assigned to arrangement elements based on a fair value hierarchy no longer dependent on the presence of VSOE. Absent a change in how we license our products, we believe that this will result in greater up-front recognition of software revenue for certain of our license arrangements. • Under the new standard, certain expenses we incur will require deferral and recognition over the period in which revenue is recognized, subject to certain exceptions. We believe that this may result in the deferral of certain implementation and commission costs associated with our SaaS offerings which would then be recognized as expense over a multi-year period; such costs are expensed directly as incurred today. However, we are unable to quantify the impact of these outcomes at this time, nor can we ensure that our continuing analysis and interpretation of the standard will result in this financial reporting outcome. In April 2015, the FASB issued an accounting standard update which requires that debt issuance costs be presented in the balance sheet as a direct reduction to the carrying value of the debt. This standard is effective for us on July 1, 2016 (the first quarter of our 2017 fiscal year) with early application permitted. Upon adoption of this standard, deferred debt issuance costs will be reclassified from non-current assets and shown as a reduction to the debt carrying value in our consolidated balance sheet. Deferred debt issuance costs were approximately $2.9 million at June 30, 2015. The adoption of this standard will be applied retrospectively and will not have an impact on our consolidated statement of comprehensive income (loss) or cash flows. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We have certain other financial instruments which consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and the convertible senior notes (the Notes) more fully described in Note 10. Fair value information for each of these instruments is as follows: • Cash and cash equivalents, accounts receivable and accounts payable fair value approximates their carrying values, due to the short-term nature of these instruments. • Marketable securities classified as held to maturity are recorded at amortized cost, which at June 30, 2015, and June 30, 2014, approximated their fair value. • Marketable securities classified as available for sale are recorded at fair value. Unrealized gains and losses are included as a component of other accumulated comprehensive loss in shareholders’ equity, net of tax. We use the specific identification method to determine any realized gains or losses from the sale of our marketable securities classified as available for sale. • The carrying value of insurance policy deposits related to the Israeli severance approximated there fair value at June 30, 2015. • The Notes were recorded at $133.3 million upon issuance, which reflected their principal value less the fair value of the embedded conversion option (Conversion Feature). The carrying value of the Notes, $159.8 million at June 30, 2015, will be accreted over the remaining term to maturity to the principal value of $189.8 million. The fair value of the Notes (inclusive of the Conversion Feature) was approximately $206.6 million as of June 30, 2015. We estimated the fair value of the Notes by reference to quoted market prices; however the Notes have only a limited trading volume and as such this fair value estimate is not necessarily the value at which the Notes could be retired or transferred. |
Significant Accounting Polici27
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Marketable Securities by Major Security Type | The table below presents information regarding our marketable securities by major security type as of June 30, 2015 and 2014. June 30, 2015 June 30, 2014 Held to Available Total Held to Available Total (in thousands) Marketable securities: Corporate and other debt securities 65 23,160 23,225 80 23,725 23,805 Total marketable securities $ 65 $ 23,160 $ 23,225 $ 80 $ 23,725 $ 23,805 |
Summary of Gross Unrealized Losses and Fair Values of Available for Sale Investments | The following table presents the aggregate fair values and gross unrealized losses for those available for sale investments that were in an unrealized loss position as of June 30, 2015, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: As of June 30, 2015 Less than 12 Months Fair Value Unrealized Loss (in thousands) Residential Mortgage Backed $ 2,011 5 U.S. Corporate 5,404 5 $ 7,415 10 |
Depreciation Recorded Over Estimated Useful Lives of Assets | Property and equipment are stated at cost, net of accumulated amortization and depreciation. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows: Property, equipment, furniture, fixtures and vehicles 3-7 years Software 3-5 years Technical equipment 3-5 years Building (Reading, England) 50 years Leasehold improvements Remaining lease term, inclusive of expected renewal periods |
Fair Values of Assets and Lia28
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | At June 30, 2015 and 2014, our assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2015 June 30, 2014 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds (cash and cash equivalents) $ 2,068 $ — $ — $ 2,068 $ 10,718 $ — $ — $ 10,718 Available for sale securities Debt U.S. Corporate 10,561 — — 10,561 13,119 — — 13,119 Residential mortgage-backed 7,733 — — 7,733 5,537 — — 5,537 Government—U.S. 4,866 — — 4,866 5,069 — — 5,069 Total available for sale securities $ 23,160 $ — $ — $ 23,160 $ 23,725 $ — $ — $ 23,725 |
Product and Business Acquisit29
Product and Business Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Intellinx [Member] | |
Allocation of Purchase Price | The preliminary allocation of the Intellinx acquisition purchase price as of June 30, 2015 is as follows: (in thousands) Current assets $ 9,770 Property and equipment 299 Other assets 2,187 Customer related intangible assets 2,285 Core technology 52,711 Other intangible assets 937 Goodwill 13,325 Current liabilities (4,217 ) Other liabilities (10,647 ) Total purchase price $ 66,650 |
Andera [Member] | |
Allocation of Purchase Price | The allocation of the Andera acquisition purchase price which was finalized during the year ending June 30, 2015 is as follows: (in thousands) Current assets $ 2,150 Property and equipment 1,226 Customer related intangible assets 13,749 Core technology 7,429 Other intangible assets 623 Goodwill 25,941 Current liabilities (4,565 ) Other liabilities (3,573 ) Total purchase price $ 42,980 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: June 30, 2015 2014 (in thousands) Land $ 298 $ 324 Building and Improvements 14,997 12,834 Furniture and fixtures 6,198 4,992 Technical equipment 42,351 36,212 Software 40,967 29,677 Motor Vehicles 93 73 104,904 84,112 Less: Accumulated depreciation and amortization 57,325 48,211 $ 47,579 $ 35,901 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization and for Intangible Assets Not Subject to Amortization | The following tables set forth the information for intangible assets subject to amortization and for intangible assets not subject to amortization: As of June 30, 2015 Gross Carrying Accumulated Net Carrying Weighted Average (in thousands) (in years) Amortized intangible assets: Customer related $ 200,957 $ (101,219 ) $ 99,738 10.4 Core technology 131,069 (55,374 ) 75,695 10.2 Other intangible assets 20,790 (10,933 ) 9,857 6.4 Total $ 352,816 $ (167,526 ) $ 185,290 Unamortized intangible assets: Goodwill 215,360 Total intangible assets $ 400,650 As of June 30, 2014 Gross Carrying Accumulated Net Carrying Weighted Average (in thousands) (in years) Amortized intangible assets: Customer related $ 206,294 $ (88,184 ) $ 118,110 11.8 Core technology 78,991 (45,552 ) 33,439 6.8 Other intangible assets 20,220 (8,265 ) 11,955 7.2 Total $ 305,505 $ (142,001 ) $ 163,504 Unamortized intangible assets: Goodwill 208,991 Total intangible assets $ 372,495 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for fiscal year 2016 and subsequent fiscal years is as follows: (in thousands) 2016 $ 29,204 2017 24,582 2018 20,547 2019 18,822 2020 16,922 2021 and thereafter 74,708 |
Schedule of Roll Forward of Goodwill Balances, by Reportable Segment | The following table represents a rollforward of our goodwill balances, by reportable segment, as follows: Payments and Hosted Digital (in thousands) Balance at June 30, 2013 $ 66,862 $ 33,881 $ 8,453 Goodwill acquired during the period 954 62,647 27,394 Impact of foreign currency translation 2,716 6,084 — Balance at June 30, 2014 70,532 102,612 35,847 Goodwill acquired during the period 13,325 2,363 — Purchase accounting adjustments — (745 ) 33 Impact of foreign currency translation (2,238 ) (6,369 ) — Balance at June 30, 2015 $ 81,619 $ 97,861 $ 35,880 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following: June 30, 2015 2014 (in thousands) Employee compensation and benefits $ 13,751 $ 12,055 Accrued income taxes payable 2,433 6,362 Sales and value added taxes 1,963 1,932 Professional fees 1,105 1,808 Accrued interest 237 237 Accrued royalties 352 218 Other 4,595 2,930 $ 24,436 $ 25,542 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | Restructuring charges recorded in fiscal 2015 were expensed as follows: (in thousands) Subscriptions and transactions cost of sales $ 149 Service and maintenance cost of sales 171 Sales and marketing 438 Product development and engineering 212 General and administrative 327 $ 1,297 |
Schedule of Remaining Liability for Severance Related Benefits | At June 30, 2015, our remaining liability for severance related benefits was as follows: (in thousands) Accrued severance benefits at June 30, 2014 $ 473 Additions charged to expense in 2015 1,297 Payments charged against the accrual (1,717 ) Accrued severance benefits at June 30, 2015 $ 53 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Annual Rental Commitments | Future minimum annual rental commitments under our facilities, equipment, and vehicle leases at June 30, 2015 are as follows: (in thousands) 2016 $ 5,386 2017 5,014 2018 4,523 2019 4,246 2020 3,685 2021 and thereafter 11,946 $ 34,800 |
Future Minimum Annual Commitments Under Long Term Service Arrangements | Future minimum annual commitments under our long term service arrangements as of June 30, 2015 are as follows: (in thousands) 2016 $ 7,372 2017 3,472 2018 1,764 2019 314 2020 78 $ 13,000 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Net Carrying Amount of Convertible Notes | The net carrying amount of the convertible notes at June 30, 2015 was as follows: (in thousands) Principal amount $ 189,750 Unamortized discount (29,990 ) Net carrying value $ 159,760 |
Total Interest Expense Related to Convertible Notes | The following table sets forth total interest expense related to the convertible notes: Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) Contractual interest expense (cash) $ 2,846 $ 2,846 $ 1,573 Amortization of debt discount (non-cash) 10,965 10,213 5,326 Amortization of debt issue costs (non-cash) 1,184 1,184 654 $ 14,995 $ 14,243 $ 7,553 Effective interest rate of the liability component 7.28 % 6.88 % 6.60 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Loss on Changes in Fair Value and Provides Rollforward of Activity from Inception | The gain (loss) as a result of changes in the fair value of our derivative instruments for the fiscal year ended June 30, 2013 is as follows: (in thousands) Fair Value at Fair Value Fair Value at Gain/(loss) on Note Hedges $ 42,390 $ 50,086 (1) n/a $ 7,696 Conversion Feature 56,495 65,796 (1) n/a (9,301 ) Warrants 12,950 15,780 (2) n/a (2,830 ) Net loss on derivative instruments $ (4,435 ) (1) The requirements for stockholders’ equity classification for the Note Hedges and Conversion Feature were met as of January 17, 2013 and, as of that date, we re-measured the fair value of these instruments and reclassified those amounts to stockholders’ equity. The fair values and resulting gain or loss are based on re-measurement at January 17, 2013. (2) The conditions that gave rise to the potential cash settlement of a portion of the Warrants expired on December 12, 2012 and, as of that date, we re-measured the fair value of these instruments and reclassified that amount to stockholders’ equity. The fair value and resulting loss is based on re-measurement at December 12, 2012. |
Postretirement and Other Empl37
Postretirement and Other Employee Benefits (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of PBO, Change in Plan Assets, Funded Status and Amounts Recognized in Consolidated Balance Sheet | The following table represents the PBO, change in plan assets, funded status and amounts recognized in our consolidated balance sheets at June 30, 2015 and 2014: Pension Benefits 2015 2014 (In thousands) Change in benefit obligation: Projected benefit obligation at beginning of year $ 36,413 $ 30,548 Service cost 2,300 2,170 Interest cost 673 594 Actuarial loss 3,647 1,635 Plan participant contributions 872 830 Benefits paid, net of transfers into plan (939 ) 644 Plan change — (1,180 ) Effect of foreign currency exchange rate changes (1,830 ) 1,172 Projected benefit obligation at end of year $ 41,136 $ 36,413 Change in plan assets: Fair value of plan assets at beginning of year $ 26,575 $ 21,020 Actual return on plan assets 801 1,595 Employer contribution 1,820 1,669 Plan participant contributions 872 830 Benefits paid, net of transfers into plan (939 ) 644 Effect of foreign currency exchange rate changes (1,353 ) 817 Fair value of plan assets at end of year $ 27,776 $ 26,575 Pension liability at end of fiscal year $ (13,360 ) $ (9,838 ) Accumulated other comprehensive loss consists of the following: Net prior service credit $ 1,025 $ 1,180 Net actuarial loss (4,659 ) (809 ) Accumulated other comprehensive loss, before income tax $ (3,634 ) $ 371 |
Summary of Weighted-Average Assumptions Used to Determine Net Benefit Costs and Benefit Obligations | Assumptions: Pension Benefits 2015 2014 Weighted-average assumptions used to determine net benefit costs: Discount rate 2.00 % 2.25 % Expected return on plan assets 4.00 % 4.00 % Rate of compensation increase 2.00 % 2.00 % Weighted-average assumptions used to determine benefit obligations at year end: Discount rate 1.25 % 2.00 % Expected return on plan assets 3.00 % 4.00 % Rate of compensation increase 1.75 % 2.00 % |
Summary of Pension Plan 2014 Actual Asset Allocation as Compared to Profond's Target Asset Allocations | The pension plan 2015 actual asset allocation as compared to Profond’s target asset allocations are as follows: Actual Target Asset Category: Cash and cash equivalents 7 % 5 % Equity Securities 51 % 50 % Fixed Income 22 % 28 % Real Estate 18 % 15 % Other 2 % 2 % |
Summary of Estimated Future Benefit Payments | As of June 30, 2015, the estimated future benefit payments (inclusive of any future service) were as follows: Total (In thousands) 2016 $ 1,200 2017 1,211 2018 1,470 2019 1,671 2020 1,502 2021-25 9,513 |
Components of Net Periodic Pension Costs for the Swiss Pension Plan | Net periodic pension costs for the Swiss pension plan include the following components: 2015 2014 (In thousands) Components of net periodic (income) cost Service cost $ 2,300 $ 2,170 Interest cost 673 594 Net prior service cost credit (93 ) — Expected return on plan assets (1,003 ) (769 ) Net periodic cost $ 1,877 $ 1,995 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option and Restricted Stock Activity | A summary of stock option and restricted stock activity for fiscal year 2015 is as follows; in respect of shares available for grant, the shares are available for issuance by us as either a stock option or as a restricted stock award: Non-vested Stock Stock Options Shares Number Weighted Number Weighted Weighted Aggregate (in thousands, except per share data) Awards outstanding at June 30, 2014 3,923 1,968 $ 26.85 405 $ 10.76 3.8 $ 7,759 Plan amendment 1,500 Awards granted (1) (1,450 ) 1,133 $ 27.05 — $ — Shares vested (895 ) $ 26.27 Stock options exercised (136 ) $ 11.74 Awards forfeited (1) 120 (102 ) $ 27.61 (3 ) $ 7.09 Awards expired (2 ) $ 11.09 Awards outstanding at June 30, 2015 4,093 2,104 $ 27.17 264 $ 10.28 3.7 $ 4,623 Stock options exercisable at June 30, 2015 255 $ 10.41 3.5 $ 4,433 (1) The 2009 Plan has a fungible share pool in which restricted stock awards are counted against the plan (or replenished within the plan, in respect of award forfeitures) as 1.28 shares for each one share of Common Stock subject to such restricted stock award. |
Schedule of Shares Issued as Purchase Consideration with Forfeiture Provisions | Shares issued as purchase consideration with forfeiture provisions activity for the year ended June 30, 2015 are reflected in the table below. These shares were not issued out of our shareholder approved stock plans and do not represent grants or awards of shares from those plans. Non-vested Stock Number Weighted Purchase consideration shares with forfeiture provisions outstanding at June 30, 2014 181 $ 34.03 Purchase consideration shares with forfeiture provisions 839 $ 22.74 Lapse of forfeiture provisions (82 ) $ 30.91 Shares forfeited (32 ) $ 35.06 Purchase consideration shares with forfeiture provisions outstanding at June 30, 2015 906 $ 23.82 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income per Share | The following table sets forth the computation of basic and diluted net income per share: Fiscal Year Ended June 30, 2015 2014 2013 (in thousands except per share data) Numerator-basic and diluted: Net loss $ (34,680 ) $ (19,104 ) $ (14,395 ) Denominator: Shares used in computing basic and diluted net loss per share attributable to common stockholders 37,806 36,834 35,444 Basic and diluted net loss per share attributable to common stockholders $ (0.92 ) $ (0.52 ) $ (0.41 ) |
Operations by Industry Segmen40
Operations by Industry Segments and Geographic Area (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | We have presented segment information for the years ended June 30, 2015, 2014 and 2013 according to the segment descriptions above. Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) Segment revenue: Payments and Transactional Documents $ 127,527 $ 125,456 $ 120,590 Hosted Solutions 126,178 107,360 67,504 Digital Banking 77,184 67,769 66,680 $ 330,889 $ 300,585 $ 254,774 Segment measure of profit: Payments and Transactional Documents $ 33,140 $ 37,461 $ 35,143 Hosted Solutions 15,329 8,344 4,577 Digital Banking 12,440 7,045 2,930 Total measure of segment profit $ 60,909 $ 52,850 $ 42,650 |
Reconciliation of Measure of Segment Profit to GAAP Loss before Provision for Income Taxes | A reconciliation of the measure of segment profit to our GAAP loss before the provision for income taxes, is as follows: Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) Total measure of segment profit $ 60,909 $ 52,850 $ 42,650 Less: Amortization of intangible assets (30,383 ) (26,242 ) (19,549 ) Share-based compensation expense (27,025 ) (22,821 ) (18,031 ) Acquisition and integration related expenses (2,835 ) (4,563 ) (10,827 ) Restructuring expense (1,297 ) (1,371 ) (1,179 ) Non-cash pension expense (56 ) (331 ) — Loss on derivative instruments, net — — (4,435 ) Other non-core expenses (76 ) — — Other expense, net (15,553 ) (14,544 ) (6,922 ) Loss before income taxes $ (16,316 ) $ (17,022 ) $ (18,293 ) |
Schedule of Segment Depreciation Expense Included in Segment Measure of Profit (Loss) | The following depreciation expense amounts are included in the segment measure of profit (loss): Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) Depreciation expense: Payments and Transactional Documents $ 2,730 $ 2,231 $ 1,944 Hosted Solutions 5,134 3,950 2,772 Digital Banking 2,643 2,069 2,145 Total depreciation expense $ 10,507 $ 8,250 $ 6,861 |
Schedule of Revenue Based on Point of Sale | We have presented geographic information about our revenues below. This presentation allocates revenue based on the point of sale, not the location of the customer. Accordingly, we derive revenues from geographic locations based on the location of the customer that would vary from the geographic areas listed here; particularly in respect of financial institution customers located in Australia and Canada for which the point of sale was the United States. Fiscal Year Ended June 30, 2015 2014 2013 (in thousands) North America $ 193,286 $ 171,641 $ 167,368 United Kingdom 93,735 96,719 79,774 Continental Europe 38,053 29,047 4,311 Asia-Pacific and Middle East 5,815 3,178 3,321 Total revenues from unaffiliated customers $ 330,889 $ 300,585 $ 254,774 |
Schedule of Long-Lived Assets, Excluding Deferred Tax Assets and Intangible Assets, Based on Geographic Designation | Long-lived assets, excluding deferred tax assets and intangible assets, which are based on geographical location, were as follows: Fiscal Year Ended 2015 2014 (in thousands) Long-lived assets: North America $ 45,350 $ 36,856 United Kingdom 8,573 6,611 Continental Europe 2,390 3,224 Asia-Pacific and Middle East 2,280 157 Total long-lived assets $ 58,593 $ 46,848 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for (Benefit from) Income Taxes | Our provision for (benefit from) income taxes consists of the following: Year Ended June 30, 2015 2014 2013 (in thousands) Current: Federal $ 1,433 $ 1,464 $ (173 ) State 188 80 21 Foreign 4,570 6,319 4,983 6,191 7,863 4,831 Deferred: Federal 14,720 42 (5,315 ) State 1,154 (1,180 ) (1,338 ) Foreign (3,701 ) (4,643 ) (2,076 ) 12,173 (5,781 ) (8,729 ) $ 18,364 $ 2,082 $ (3,898 ) |
Schedule of Net Income (Loss) Before Income Taxes by Geographic Area | Net income (loss) before income taxes by geographic area is as follows: Year Ended June 30, 2015 2014 2013 (in thousands) United States $ (18,277 ) $ (25,310 ) $ (29,129 ) United Kingdom 16,728 19,035 10,651 Continental Europe (7,608 ) (10,936 ) (352 ) Asia-Pacific and Middle East (7,159 ) 189 537 $ (16,316 ) $ (17,022 ) $ (18,293 ) |
Schedule of Reconciliation of Federal Statutory Rate to Effective Income Tax Rate | A reconciliation of the federal statutory rate to the effective income tax rate is as follows (certain prior year amounts in the reconciliation have been reclassified to conform to the fiscal year 2015 presentation): Year Ended June 30, 2015 2014 2013 Tax expense (benefit) at federal statutory rate (35.0 )% (35.0 )% (35.0 )% State taxes, net of federal benefit (5.2 ) (7.3 ) (7.4 ) Change in valuation allowance 98.6 1.2 0.6 Foreign branch operations, net of foreign tax deductions 33.1 42.3 17.8 Changes in uncertain tax positions 13.0 12.7 3.9 Non-deductible executive compensation 5.3 5.1 2.4 Non-deductible share-based payments 3.6 2.3 1.2 Non-deductible acquisition costs 3.0 6.6 5.0 Non-deductible other expenses 1.8 1.4 1.4 Non-deductible interest 0.0 5.3 0.0 Convertible debt 0.0 0.0 5.5 Changes in tax laws or rates (1.8 ) (3.4 ) (2.1 ) Research and development credit (2.7 ) (2.5 ) (5.2 ) Tax rate differential on foreign earnings (4.2 ) (16.4 ) (8.5 ) Other 3.1 (0.1 ) (0.9 ) 112.6 % 12.2 % (21.3 )% |
Schedule of Deferred Tax Assets and Liabilities | We recognize deferred tax assets and liabilities based on the differences between their financial reporting and tax basis by applying tax rates that are expected to be in effect when the differences reverse. Significant components of our deferred income taxes are as follows: June 30, 2015 2014 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 14,512 $ 19,364 Deferred revenue 9,528 6,954 Stock compensation 5,956 5,823 Research and development and other credits 5,279 4,592 Accrued pension 3,212 2,365 Various accrued expenses 2,627 2,345 Property and equipment 251 463 Allowances and reserves 235 235 Other 56 50 Total deferred tax assets 41,656 42,191 Valuation allowance (23,584 ) (7,923 ) Deferred tax assets, net of valuation allowance 18,072 34,268 Deferred tax liabilities: Intangible assets (38,137 ) (36,171 ) Property and equipment (6,848 ) (3,324 ) Convertible debt (3,040 ) (4,126 ) Other (201 ) (61 ) Total deferred tax liabilities (48,226 ) (43,682 ) Net deferred tax liabilities $ (30,154 ) $ (9,414 ) |
Summary of Changes in Gross Amount of Unrecognized Tax Benefits | A summary of the changes in the gross amount of unrecognized tax benefits is shown below: (in thousands) Balance at July 1, 2012 $ 958 Additions related to current year tax positions 854 Additions related to prior year tax positions 129 Reductions due to lapse of statute of limitations (77 ) Reductions due to settlements (21 ) Foreign currency translation (14 ) Balance at June 30, 2013 1,829 Additions related to current year tax positions 2,265 Additions related to prior year tax positions 11 Reductions due to lapse of statute of limitations (72 ) Foreign currency translation 52 Balance at June 30, 2014 4,085 Additions related to current year tax positions 2,392 Additions related to prior year tax positions 145 Reductions due to lapse of statute of limitations (213 ) Foreign currency translation (104 ) Balance at June 30, 2015 $ 6,305 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | The following table contains selected quarterly financial data for the fiscal years ended June 30, 2014 and 2015. The quarterly earnings per share information is computed separately for each period. Therefore, the sum of the quarterly per share amounts may differ from the total year per share amounts. For the quarters ended September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, (in thousands, except per share data) Revenues $ 67,249 $ 73,405 $ 78,252 $ 81,679 $ 81,343 $ 82,225 $ 81,951 $ 85,370 Gross profit 37,794 41,001 44,661 46,461 47,030 48,112 47,038 49,268 Net loss $ (6,048 ) $ (7,265 ) $ (4,310 ) $ (1,481 ) $ (3,268 ) $ (1,962 ) $ (7,830 ) $ (21,620 ) Basic and diluted net loss per share $ (0.17 ) $ (0.20 ) $ (0.12 ) $ (0.04 ) $ (0.09 ) $ (0.05 ) $ (0.21 ) $ (0.57 ) Shares used in computing basic and diluted net loss per share 36,214 36,667 37,081 37,374 37,647 37,759 37,762 38,056 (1) Net income and the resulting basic and diluted net loss per share amounts reflect the impact of income tax expense of $16,034 recorded during the quarter ended June 30, 2015 in connection with the recognition of a deferred tax asset valuation allowance. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts Allowance for Doubtful Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 862 | $ 769 | $ 586 |
(Charged to Revenue, Costs and Expenses) | 248 | 214 | 300 |
Additions and Recoveries | 79 | 53 | 62 |
Deductions | 265 | 174 | 179 |
Balance at End of Year | $ 924 | $ 862 | $ 769 |
Significant Accounting Polici44
Significant Accounting Policies - Additional Information (Detail) | Jul. 01, 2014USD ($) | Jun. 30, 2015USD ($)Financial_InstitutionCustomer | Jun. 30, 2014USD ($)Customer | Jun. 30, 2013USD ($)Customer |
Significant Accounting Policies [Line Items] | ||||
Maturity of highly liquid investments | ||||
Marketable securities | $ 23,225,000 | $ 23,805,000 | ||
Securities available for sale | 12,700,000 | 13,200,000 | ||
Remaining securities available for sale | 10,400,000 | 10,500,000 | ||
Carrying value of investments | 3,400,000 | 3,300,000 | ||
Cash and cash equivalents, marketable securities | $ 109,300,000 | |||
Number of financial institutions | Financial_Institution | 7 | |||
Unbilled receivables | $ 4,900,000 | 1,500,000 | ||
Advertising costs | $ 1,300,000 | 1,000,000 | $ 600,000 | |
Number of days with in which commissions paid | 30 days | |||
Capitalized internal use software development costs | $ 10,700,000 | 4,400,000 | 1,500,000 | |
Net carrying value of capitalized internal use software | $ 14,900,000 | 5,600,000 | 1,600,000 | |
Extended payment terms classification, minimum time in excess of product delivery date | 90 days | |||
Term of agreement, in year | 1 year | |||
Reduction in non-current deferred tax assets and other liabilities | $ 2,300,000 | |||
Deferred debt issuance cost | $ 2,900,000 | |||
Convertible Senior Notes [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Security Maturity | 5 years | |||
Internal Use Software Development [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalized internal use software development costs | $ 0 | 0 | 0 | |
Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Expense of capitalized internal use software costs | $ 1,300,000 | $ 400,000 | $ 100,000 | |
Available-for-sale Securities [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Security Maturity Range | ||||
Customer Concentration Risk [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customers that accounted for more than 10% of accounts receivable | Customer | 0 | 0 | ||
Number of customers that accounted for more than 10% of consolidated revenues | Customer | 0 | 0 | 0 | |
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated customer relationship period | 5 years | |||
Minimum [Member] | Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalize software cost estimated useful life | 2 years | |||
Minimum [Member] | Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalize software cost estimated useful life | 3 years | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated customer relationship period | 10 years | |||
Maximum [Member] | Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalize software cost estimated useful life | 7 years | |||
Maximum [Member] | Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalize software cost estimated useful life | 5 years | |||
Maximum [Member] | Available-for-sale Securities [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Security Maturity | 1 year | |||
Maximum [Member] | Held-to-maturity Securities [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Security Maturity | 1 year |
Significant Accounting Polici45
Significant Accounting Policies - Marketable Securities by Major Security Type (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Marketable Securities [Line Items] | ||
Held to Maturity | $ 65 | $ 80 |
Available for Sale | 23,160 | 23,725 |
Total | 23,225 | 23,805 |
Corporate and Other Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Held to Maturity | 65 | 80 |
Available for Sale | 23,160 | 23,725 |
Total | $ 23,225 | $ 23,805 |
Significant Accounting Polici46
Significant Accounting Policies - Summary of Gross Unrealized Losses and Fair Values of Available for Sale Investments (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Fair Value | $ 7,415 |
Less than 12 Months, Unrealized Loss | 10 |
Residential Mortgage-Backed [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Fair Value | 2,011 |
Less than 12 Months, Unrealized Loss | 5 |
U.S. Corporate [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Fair Value | 5,404 |
Less than 12 Months, Unrealized Loss | $ 5 |
Significant Accounting Polici47
Significant Accounting Policies - Depreciation Recorded Over Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Jun. 30, 2015 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 50 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Remaining lease term, inclusive of expected renewal periods |
Minimum [Member] | Property, Equipment, Furniture, Fixtures and Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Minimum [Member] | Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Minimum [Member] | Technical Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Maximum [Member] | Property, Equipment, Furniture, Fixtures and Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 7 years |
Maximum [Member] | Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Maximum [Member] | Technical Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Fair Values of Assets and Lia48
Fair Values of Assets and Liabilities - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale securities | $ 23,160 | $ 23,725 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds (cash and cash equivalents) | 2,068 | 10,718 |
Total available for sale securities | 23,160 | 23,725 |
Recurring [Member] | U.S. Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale securities | 10,561 | 13,119 |
Recurring [Member] | Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale securities | 7,733 | 5,537 |
Recurring [Member] | Government - U.S. [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale securities | 4,866 | 5,069 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds (cash and cash equivalents) | 2,068 | 10,718 |
Total available for sale securities | 23,160 | 23,725 |
Recurring [Member] | Level 1 [Member] | U.S. Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale securities | 10,561 | 13,119 |
Recurring [Member] | Level 1 [Member] | Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale securities | 7,733 | 5,537 |
Recurring [Member] | Level 1 [Member] | Government - U.S. [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale securities | $ 4,866 | $ 5,069 |
Fair Values of Assets and Lia49
Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 12, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments in non-publicly traded securities | $ 3,400 | $ 3,300 | |
Issuance of convertible notes | 133,300 | ||
Carrying value of convertible senior notes | 159,760 | $ 148,795 | |
Estimated fair value of convertible debt | 206,600 | ||
Israeli Severance Arrangements [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of assets related to deposits | 1,800 | ||
1.50% Convertible Senior Notes Maturing on December 1, 2017 [Member] | Convertible Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible senior notes issued | $ 189,750 | $ 189,800 |
Product and Business Acquisit50
Product and Business Acquisitions - Additional Information (Detail) $ in Thousands, £ in Millions, SFr in Millions | Jan. 12, 2015USD ($)shares | Nov. 21, 2014USD ($)shares | Nov. 21, 2014GBP (£)shares | Jul. 09, 2014USD ($)shares | Apr. 03, 2014USD ($)shares | Jan. 29, 2014USD ($)shares | Sep. 04, 2013USD ($) | Sep. 04, 2013GBP (£) | Aug. 20, 2013USD ($) | Aug. 20, 2013CHF (SFr) | Jun. 30, 2015USD ($)Entity | Jun. 30, 2014USD ($)CountryEntityCustomer | Jun. 30, 2013USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Number of business acquisitions | Entity | 3 | 4 | |||||||||||
Business acquisitions aggregate purchase consideration | $ 70,900 | $ 170,400 | |||||||||||
Business acquisition, goodwill | 215,360 | 208,991 | |||||||||||
Pre-tax loss | (16,316) | (17,022) | $ (18,293) | ||||||||||
Amortization of intangible assets | 30,383 | 26,242 | 19,549 | ||||||||||
Stock compensation expense | 27,025 | $ 22,821 | $ 18,031 | ||||||||||
Number of customers global messaging network | Customer | 350 | ||||||||||||
Number of countries global messaging network | Country | 20 | ||||||||||||
Sterci [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition of business, cash paid | $ 121,000 | SFr 111 | |||||||||||
Business acquisition, goodwill | 48,700 | ||||||||||||
Business acquisition, identifiable intangible assets | $ 72,000 | ||||||||||||
Intangible asset amortized estimated useful life | 11 years | 11 years | |||||||||||
Business acquisition date | Aug. 20, 2013 | ||||||||||||
Non-controlling interest had acquisition date fair value | $ 5,600 | ||||||||||||
Sterci [Member] | Customer Related Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible asset amortized estimated useful life | 13 years | 13 years | |||||||||||
Sterci [Member] | Core Technology [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible asset amortized estimated useful life | 8 years | 8 years | |||||||||||
Sterci [Member] | Other Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible asset amortized estimated useful life | 11 years | 11 years | |||||||||||
Intellinx [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisitions aggregate purchase consideration | 66,650 | ||||||||||||
Acquisition of business, cash paid | $ 66,700 | ||||||||||||
Cash purchase consideration held in escrow | $ 6,800 | ||||||||||||
Share issued as consideration | shares | 774,000 | ||||||||||||
Reduced percentage of cash purchase consideration held in escrow | 50.00% | ||||||||||||
Business acquisition, goodwill | $ 13,325 | 13,325 | |||||||||||
Business acquisition, identifiable intangible assets | $ 55,900 | ||||||||||||
Intangible asset amortized estimated useful life | 12 years | ||||||||||||
Pre-tax loss | 6,600 | ||||||||||||
Amortization of intangible assets | 2,200 | ||||||||||||
Stock compensation expense | $ 1,700 | ||||||||||||
Intellinx [Member] | Minimum [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Stock vesting period | 4 years | ||||||||||||
Intellinx [Member] | Maximum [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Stock vesting period | 5 years | ||||||||||||
Revenues Percentage | 1.00% | ||||||||||||
Intellinx [Member] | Customer Related Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisition, identifiable intangible assets | $ 2,285 | ||||||||||||
Intangible asset amortized estimated useful life | 13 years | ||||||||||||
Intellinx [Member] | Core Technology [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisition, identifiable intangible assets | 52,711 | ||||||||||||
Intangible asset amortized estimated useful life | 13 years | ||||||||||||
Intellinx [Member] | Other Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisition, identifiable intangible assets | 937 | ||||||||||||
Intangible asset amortized estimated useful life | 5 years | ||||||||||||
Simplex [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition of business, cash paid | $ 5,400 | £ 3.4 | |||||||||||
Business acquisition, goodwill | 11,800 | ||||||||||||
Business acquisition, identifiable intangible assets | 4,500 | ||||||||||||
Business acquisition date | Sep. 4, 2013 | ||||||||||||
Accounting purchase price for Simplex | 15,200 | ||||||||||||
Fair value of non-controlling interest | 5,600 | ||||||||||||
Additional consideration paid | 5,400 | ||||||||||||
Settlement of preexisting relationship specifically amounts due from Simplex | $ 4,200 | ||||||||||||
Simplex [Member] | Customer Related Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible asset amortized estimated useful life | 15 years | 15 years | |||||||||||
Simplex [Member] | Other Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible asset amortized estimated useful life | 4 years | 4 years | |||||||||||
Arian [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition of business, cash paid | $ 3,500 | £ 2.3 | |||||||||||
Share issued as consideration | shares | 60,000 | 60,000 | |||||||||||
Stock vesting period | 4 years | 4 years | |||||||||||
Business acquisition, goodwill | $ 2,400 | ||||||||||||
Business acquisition, identifiable intangible assets | $ 1,500 | ||||||||||||
Arian [Member] | Customer Related Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible asset amortized estimated useful life | 9 years | 9 years | |||||||||||
Arian [Member] | Core Technology [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible asset amortized estimated useful life | 12 years | 12 years | |||||||||||
Litco [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition of business, cash paid | $ 700 | ||||||||||||
Share issued as consideration | shares | 4,999 | ||||||||||||
Intangible asset amortized estimated useful life | 6 years | ||||||||||||
Business acquisitions shares issued, value | $ 200 | ||||||||||||
Litco [Member] | General and Administrative Expense [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition expenses | 2,100 | ||||||||||||
Andera [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisitions aggregate purchase consideration | $ 200 | 42,980 | |||||||||||
Acquisition of business, cash paid | $ 42,800 | ||||||||||||
Share issued as consideration | shares | 102,158 | ||||||||||||
Business acquisition, goodwill | 25,941 | ||||||||||||
Andera [Member] | Customer Related Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisition, identifiable intangible assets | 13,749 | ||||||||||||
Andera [Member] | Core Technology [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisition, identifiable intangible assets | 7,429 | ||||||||||||
Andera [Member] | Other Intangible Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisition, identifiable intangible assets | $ 623 | ||||||||||||
Rationalwave [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisitions aggregate purchase consideration | $ 3,700 | ||||||||||||
Acquisition of business, cash paid | $ 1,200 | ||||||||||||
Share issued as consideration | shares | 113,731 | ||||||||||||
Business acquisition, goodwill | $ 3,900 | ||||||||||||
Rationalwave [Member] | Equity Holders Joining as Employees [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Share issued as consideration | shares | 92,151 | ||||||||||||
Rationalwave [Member] | Core Technology [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business acquisition, identifiable intangible assets | $ 1,500 | ||||||||||||
Intangible asset amortized estimated useful life | 5 years |
Product and Business Acquisit51
Product and Business Acquisitions - Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jan. 12, 2015 | Jun. 30, 2014 | Apr. 03, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 215,360 | $ 208,991 | ||
Total purchase price | 70,900 | $ 170,400 | ||
Andera [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | 2,150 | |||
Property and equipment | 1,226 | |||
Goodwill | 25,941 | |||
Current liabilities | (4,565) | |||
Other liabilities | (3,573) | |||
Total purchase price | 42,980 | $ 200 | ||
Andera [Member] | Customer Related Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 13,749 | |||
Andera [Member] | Core Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 7,429 | |||
Andera [Member] | Other Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 623 | |||
Intellinx [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | 9,770 | |||
Property and equipment | 299 | |||
Other assets | 2,187 | |||
Intangible assets | $ 55,900 | |||
Goodwill | 13,325 | $ 13,325 | ||
Current liabilities | (4,217) | |||
Other liabilities | (10,647) | |||
Total purchase price | 66,650 | |||
Intellinx [Member] | Customer Related Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 2,285 | |||
Intellinx [Member] | Core Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 52,711 | |||
Intellinx [Member] | Other Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 937 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 298 | $ 324 |
Building and Improvements | 14,997 | 12,834 |
Furniture and fixtures | 6,198 | 4,992 |
Technical equipment | 42,351 | 36,212 |
Software | 40,967 | 29,677 |
Motor Vehicles | 93 | 73 |
Property, Plant and Equipment, Gross | 104,904 | 84,112 |
Less: Accumulated depreciation and amortization | 57,325 | 48,211 |
Property, Plant and Equipment, Net | $ 47,579 | $ 35,901 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Schedule of Intangible Assets Subject to Amortization and for Intangible Assets Not Subject to Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 352,816 | $ 305,505 |
Accumulated Amortization | (167,526) | (142,001) |
Net Carrying Value | 185,290 | 163,504 |
Goodwill | 215,360 | 208,991 |
Total intangible assets | 400,650 | 372,495 |
Customer Related [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 200,957 | 206,294 |
Accumulated Amortization | (101,219) | (88,184) |
Net Carrying Value | $ 99,738 | $ 118,110 |
Weighted Average Remaining Life | 10 years 4 months 24 days | 11 years 9 months 18 days |
Core Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 131,069 | $ 78,991 |
Accumulated Amortization | (55,374) | (45,552) |
Net Carrying Value | $ 75,695 | $ 33,439 |
Weighted Average Remaining Life | 10 years 2 months 12 days | 6 years 9 months 18 days |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 20,790 | $ 20,220 |
Accumulated Amortization | (10,933) | (8,265) |
Net Carrying Value | $ 9,857 | $ 11,955 |
Weighted Average Remaining Life | 6 years 4 months 24 days | 7 years 2 months 12 days |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 29,204 |
2,017 | 24,582 |
2,018 | 20,547 |
2,019 | 18,822 |
2,020 | 16,922 |
2021 and thereafter | $ 74,708 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Schedule of Roll Forward of Goodwill Balances, by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 208,991 | |
Ending Balance | 215,360 | $ 208,991 |
Payments and Transactional Documents [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 70,532 | 66,862 |
Goodwill acquired during the period | 13,325 | 954 |
Impact of foreign currency translation | (2,238) | 2,716 |
Ending Balance | 81,619 | 70,532 |
Hosted Solutions [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 102,612 | 33,881 |
Goodwill acquired during the period | 2,363 | 62,647 |
Purchase accounting adjustments | (745) | |
Impact of foreign currency translation | (6,369) | 6,084 |
Ending Balance | 97,861 | 102,612 |
Digital Banking [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 35,847 | 8,453 |
Goodwill acquired during the period | 27,394 | |
Purchase accounting adjustments | 33 | |
Ending Balance | $ 35,880 | $ 35,847 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Payables and Accruals [Abstract] | ||
Employee compensation and benefits | $ 13,751 | $ 12,055 |
Accrued income taxes payable | 2,433 | 6,362 |
Sales and value added taxes | 1,963 | 1,932 |
Professional fees | 1,105 | 1,808 |
Accrued interest | 237 | 237 |
Accrued royalties | 352 | 218 |
Other | 4,595 | 2,930 |
Accrued expenses | $ 24,436 | $ 25,542 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring costs | $ 1,297 |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Restructuring Charges (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 1,297 |
Subscriptions and Transactions Cost of Sales [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 149 |
Service and Maintenance Cost of Sales [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 171 |
Sales and Marketing [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 438 |
Product Development and Engineering [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 212 |
General and Administrative Expense [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 327 |
Restructuring Costs - Schedul59
Restructuring Costs - Schedule of Remaining Liability for Severance Related Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Beginning Balance | $ 473 |
Additions charged to expense in 2015 | 1,297 |
Payments charged against the accrual | (1,717) |
Ending Balance | $ 53 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015USD ($)Lease | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Contingencies And Commitments [Line Items] | |||
Non-cancelable operating lease expiration year | 2,027 | ||
Consumer price multiplier minimum increase in rent expense | 5 | ||
Number of lease options | Lease | 2 | ||
Rent expense, net of sublease income | $ 6.9 | $ 5.4 | $ 4.6 |
Expire in 2016 [Member] | |||
Contingencies And Commitments [Line Items] | |||
Service agreements with minimum commitments period range | 1 year | ||
Expire in 2020 [Member] | |||
Contingencies And Commitments [Line Items] | |||
Service agreements with minimum commitments period range | 5 years |
Commitments and Contingencies61
Commitments and Contingencies - Schedule of Future Minimum Annual Rental Commitments (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 5,386 |
2,017 | 5,014 |
2,018 | 4,523 |
2,019 | 4,246 |
2,020 | 3,685 |
2021 and thereafter | 11,946 |
Operating leases, future minimum payments due | $ 34,800 |
Commitments and Contingencies62
Commitments and Contingencies - Future Minimum Annual Commitments Under Long Term Service Arrangements (Detail) - Long Term Service Arrangements [Member] $ in Thousands | Jun. 30, 2014USD ($) |
Leases Future Minimum Payments [Line Items] | |
2,016 | $ 7,372 |
2,017 | 3,472 |
2,018 | 1,764 |
2,019 | 314 |
2,020 | 78 |
Total future minimum annual commitments | $ 13,000 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) - USD ($) | Dec. 12, 2012 | Dec. 31, 2012 | Jun. 30, 2015 | Jun. 30, 2013 | Jun. 30, 2014 | Jan. 17, 2013 |
Debt Instrument [Line Items] | ||||||
Common Stock, Authorized shares | 100,000,000 | 100,000,000 | ||||
Proceeds from issuance of warrants, net of issue costs | $ 25,776,000 | |||||
Warrant expiration period | 150 days | |||||
Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Common Stock, Authorized shares | 50,000,000 | |||||
Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Common Stock, Authorized shares | 100,000,000 | |||||
1.50% Convertible Senior Notes Maturing on December 1, 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible notes conversion amount in multiples | $ 1,000 | |||||
Percentage of common stock conversion price | 130.00% | |||||
Initial conversion rate per $1,000 principal amount | 33.3042 | |||||
Initial conversion price per share | $ 30.03 | |||||
Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible Senior Notes, term | 5 years | |||||
Convertible Senior Notes [Member] | 1.50% Convertible Senior Notes Maturing on December 1, 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount of Convertible Senior Notes | $ 189,800,000 | $ 189,750,000 | ||||
Interest rate on Convertible Senior Notes | 1.50% | |||||
Maturity date of Convertible Senior Notes | Dec. 1, 2017 | |||||
Underwriters' exercise in full of over-allotment option | $ 24,800,000 | |||||
Net proceeds from offering after adjusting for expenses, commissions and discounts | $ 167,300,000 | |||||
Consecutive trading days | 30 days | |||||
Common stock minimum trading days | 20 days | |||||
Conditions for conversion of notes | During the five business day period after any five consecutive trading day period (the "measurement period") in which the trading price per $1,000 principal amount of the convertible notes for each trading day of the measurement period was less than 98% of the product of the last reported sales price of our common stock and the conversion rate on each trading day | |||||
Last day conversion rate | 98.00% | |||||
Percentage of repurchase price equal to principal amount of notes to be repurchased | 100.00% | |||||
Redemption percentage of principal amount of notes outstanding by notice | 25.00% | |||||
Redemption percentage of principal amount of notes outstanding at request by holders with accrued and unpaid interest | 100.00% | |||||
Certain events of bankruptcy, insolvency or reorganization, redemption percentage of principal amount of notes outstanding with accrued and unpaid interest | 100.00% | |||||
Notes Principal amount | $ 1,000 | |||||
Interest rate per annum | 0.25% | |||||
Estimated fair value of the contingent interest feature of the notes | $ 0 | |||||
Convertible Senior Notes, term | 5 years | |||||
Hedging of common stock | 6,300,000 | |||||
Cost of the Note Hedges | $ 42,300,000 | |||||
Proceeds from issuance of warrants, net of issue costs | $ 25,800,000 | |||||
Purchase of common stock | 6,300,000 | |||||
Common stock, strike price per share | $ 40.04 | |||||
Loss related to a change in fair value | $ 2,800,000 | |||||
Warrants [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrants exercisable beginning | Mar. 1, 2018 | |||||
Warrants exercisable ending | Oct. 18, 2018 |
Convertible Senior Notes - Net
Convertible Senior Notes - Net Carrying Amount of Convertible Notes (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 12, 2012 |
Debt Instrument [Line Items] | ||
Net carrying value | $ 159,760 | |
1.50% Convertible Senior Notes Maturing on December 1, 2017 [Member] | Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 189,750 | $ 189,800 |
Unamortized discount | $ (29,990) |
Convertible Senior Notes - Tota
Convertible Senior Notes - Total Interest Expense Related to Convertible Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Debt Instrument [Line Items] | |||
Amortization of debt discount (non-cash) | $ 10,965 | $ 10,213 | $ 5,326 |
Amortization of debt issue costs (non-cash) | 1,184 | 1,184 | 654 |
Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense (cash) | 2,846 | 2,846 | 1,573 |
Amortization of debt discount (non-cash) | 10,965 | 10,213 | 5,326 |
Amortization of debt issue costs (non-cash) | 1,184 | 1,184 | 624 |
Total interest expense | $ 14,995 | $ 14,243 | $ 7,553 |
Effective interest rate of the liability component | 7.28% | 6.88% | 6.60% |
Derivative Instruments - Summar
Derivative Instruments - Summary of Loss on Changes in Fair Value and Provides Rollforward of Activity from Inception (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2012 | |
Derivative [Line Items] | ||
Gain/(loss) on derivative instruments | $ (4,435) | |
Note Hedges [Member] | ||
Derivative [Line Items] | ||
Derivative instruments, Fair value, Asset | $ 42,390 | |
Fair Value upon reclassification to equity, Asset | 50,086 | |
Gain/(loss) on derivative instruments | 7,696 | |
Conversion Feature [Member] | ||
Derivative [Line Items] | ||
Derivative instruments, Fair value, Liability | 56,495 | |
Fair Value upon reclassification to equity, Liability | 65,796 | |
Gain/(loss) on derivative instruments | (9,301) | |
Warrants [Member] | ||
Derivative [Line Items] | ||
Derivative instruments, Fair value, Liability | $ 12,950 | |
Fair Value upon reclassification to equity | 15,780 | |
Gain/(loss) on derivative instruments | $ (2,830) |
Postretirement and Other Empl67
Postretirement and Other Employee Benefits - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($)Employees | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension plan contribution | $ 1,820 | $ 1,669 | ||
Annual measurement date | June 30 | |||
Net prior service credit | $ 100 | |||
Projected benefit obligation percentage | 10.00% | |||
Fair value of plan assets | $ 27,776 | $ 26,575 | $ 21,020 | |
Israel Employees Severance Pay [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Severance costs expense | 300 | |||
Israel Employees Severance Pay [Member] | Other liabilities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Severance liability | 1,900 | |||
Israel Employees Severance Pay [Member] | Other assets [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Severance deposit | 1,800 | |||
Range One [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Decrease in pension benefit conversion rate | 7.20% | |||
Range Two [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Decrease in pension benefit conversion rate | 6.80% | |||
Scenario, forecast [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net periodic cost | $ 100 | |||
Swiss Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expenses charged | $ 1,900 | $ 2,000 | ||
Number of employees covered under pension plan | Employees | 109 | |||
Employees covered under pension plan, percent | 7.00% | |||
Employers' contribution to pension plan | $ 1,700 | |||
401 (k) [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of eligible compensation by employees | 60.00% | |||
Percentage of employee's annual compensation contribution | 50.00% | |||
Percentage of participant's deferred compensation | 5.00% | |||
Expenses charged | $ 1,800 | 1,600 | 1,400 | |
Group Personal Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of employee's annual compensation contribution | 3.00% | |||
Employee's annual compensation minimum percentage | 1.00% | |||
Expenses charged | $ 1,200 | 1,000 | 1,000 | |
Pension plan contribution | $ 1,400 | 1,200 | ||
Superannuation Fund [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of employee's annual compensation contribution | 9.00% | |||
Expenses charged | $ 200 | $ 200 | $ 200 | |
Sterci pension plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Accumulated benefit obligation | 38,300 | |||
Swiss Pension Fund Foundation [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | $ 27,800 | |||
Israel Pension [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of employee's annual compensation contribution | 5.00% | |||
Expenses charged | $ 200 |
Postretirement and Other Empl68
Postretirement and Other Employee Benefits - Schedule of PBO, Change in Plan Assets, Funded Status and Amounts Recognized in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Change in benefit obligation: | ||
Projected benefit obligation at beginning of year | $ 36,413 | $ 30,548 |
Service cost | 2,300 | 2,170 |
Interest cost | 673 | 594 |
Actuarial loss | 3,647 | 1,635 |
Plan participant contributions | 872 | 830 |
Benefits paid, net of transfers into plan | (939) | 644 |
Plan change | (1,180) | |
Effect of foreign currency exchange rate changes | (1,830) | 1,172 |
Projected benefit obligation at end of year | 41,136 | 36,413 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 26,575 | 21,020 |
Actual return on plan assets | 801 | 1,595 |
Employer contribution | 1,820 | 1,669 |
Plan participant contributions | 872 | 830 |
Benefits paid, net of transfers into plan | (939) | 644 |
Effect of foreign currency exchange rate changes | (1,353) | 817 |
Fair value of plan assets at end of year | 27,776 | 26,575 |
Pension liability at end of fiscal year | (13,360) | (9,838) |
Accumulated other comprehensive loss consists of the following | ||
Net prior service credit | 1,025 | 1,180 |
Net actuarial loss | (4,659) | (809) |
Accumulated other comprehensive loss, before income tax | $ (3,634) | $ 371 |
Postretirement and Other Empl69
Postretirement and Other Employee Benefits - Summary of Weighted-Average Assumptions Used to Determine Net Benefit Costs and Benefit Obligations (Detail) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Weighted-average assumptions used to determine net benefit costs: | ||
Discount rate | 2.00% | 2.25% |
Expected return on plan assets | 4.00% | 4.00% |
Rate of compensation increase | 2.00% | 2.00% |
Weighted-average assumptions used to determine benefit obligations at year end: | ||
Discount rate | 1.25% | 2.00% |
Expected return on plan assets | 3.00% | 4.00% |
Rate of compensation increase | 1.75% | 2.00% |
Postretirement and Other Empl70
Postretirement and Other Employee Benefits - Summary of Pension Plan 2014 Actual Asset Allocation as Compared to Profond's Target Asset Allocations (Detail) - Jun. 30, 2015 | Total |
Cash and Cash Equivalents [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual allocations of pension plans | 7.00% |
Target allocations of pension plans for 2015 | 5.00% |
Equity Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual allocations of pension plans | 51.00% |
Target allocations of pension plans for 2015 | 50.00% |
Fixed Income [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual allocations of pension plans | 22.00% |
Target allocations of pension plans for 2015 | 28.00% |
Real Estate [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual allocations of pension plans | 18.00% |
Target allocations of pension plans for 2015 | 15.00% |
Other [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual allocations of pension plans | 2.00% |
Target allocations of pension plans for 2015 | 2.00% |
Postretirement and Other Empl71
Postretirement and Other Employee Benefits - Summary of Estimated Future Benefit Payments (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Postemployment Benefits [Abstract] | |
2,016 | $ 1,200 |
2,017 | 1,211 |
2,018 | 1,470 |
2,019 | 1,671 |
2,020 | 1,502 |
2021-25 | $ 9,513 |
Postretirement and Other Empl72
Postretirement and Other Employee Benefits - Components of Net Periodic Pension Costs for the Swiss Pension Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Components of net periodic (income) cost | ||
Service cost | $ 2,300 | $ 2,170 |
Interest cost | 673 | 594 |
Swiss Pension Plan [Member] | ||
Components of net periodic (income) cost | ||
Service cost | 2,300 | 2,170 |
Interest cost | 673 | 594 |
Net prior service cost credit | (93) | |
Expected return on plan assets | (1,003) | (769) |
Net periodic cost | $ 1,877 | $ 1,995 |
Share Based Payments - Addition
Share Based Payments - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 12, 2015 | Nov. 21, 2014 | Nov. 20, 2014 | Nov. 14, 2013 | Nov. 19, 2009 | Nov. 16, 2000 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock compensation expense | $ 27,025 | $ 22,821 | $ 18,031 | ||||||
Share-based payment awards tax benefits | $ 9,100 | 8,300 | 6,700 | ||||||
Minimum percentage limit of base pay for employees for purchasing shares | 1.00% | ||||||||
Maximum percentage limit of base pay for employees for purchasing shares | 10.00% | ||||||||
Lower of fair market value of the common stock | 85.00% | ||||||||
Offering period | 24 months | ||||||||
Purchase period | 6 months | ||||||||
Employee stock purchases common stock issued | 109,000 | ||||||||
Aggregate intrinsic value of shares issued under employee stock plan | $ 500 | ||||||||
Intrinsic value eligible for issuance | $ 100 | ||||||||
Reserved common stock for issuance | 1,450,000 | ||||||||
Total intrinsic value of options exercised | $ 2,000 | 5,500 | 5,600 | ||||||
Total fair value of stock options that vested | 200 | 300 | 800 | ||||||
Unrecognized compensation cost related to stock option awards | $ 100 | ||||||||
Unrecognized compensation cost weighted average period | 10 months 24 days | ||||||||
Restricted stock awards vested | 895,000 | ||||||||
Intellinx [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock compensation expense | $ 1,700 | ||||||||
Shares issued as a part of acquisition | 774,000 | ||||||||
Intellinx [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock vesting period | 5 years | ||||||||
Intellinx [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock vesting period | 4 years | ||||||||
Arian [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock vesting period | 4 years | ||||||||
Shares issued as a part of acquisition | 60,000 | ||||||||
Litco [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued as a part of acquisition | 4,999 | ||||||||
Valuation and Related Activity [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock compensation expense | $ 200 | ||||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock compensation expense | $ 26,300 | ||||||||
Stock vesting period | 4 years | ||||||||
Unrecognized compensation cost weighted average period | 1 year 8 months 12 days | ||||||||
Total fair value of restricted stock awards vested | $ 26,400 | $ 30,100 | $ 20,800 | ||||||
Unrecognized compensation cost related to restricted stock awards | $ 69,800 | ||||||||
Restricted stock awards vested | 900,000 | ||||||||
Restricted Stock [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock vesting period | 5 years | ||||||||
Restricted Stock [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock vesting period | 2 years | ||||||||
Non- Employee Directors Vest [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock vesting period | 1 year | ||||||||
Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock compensation expense | $ 500 | ||||||||
Employee Stock Purchase Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issuance of shares common stock to participating employees | 4,000,000 | ||||||||
Common stock, shares | 31,000 | ||||||||
2009 Stock Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Lower of fair market value of the common stock | 100.00% | ||||||||
Stock vesting period | 4 years | ||||||||
Percentage of vesting for awards granted | 25.00% | ||||||||
Award vesting percentage | 6.25% | ||||||||
Reserved common stock for issuance | 2,750,000 | ||||||||
Number of additional shares authorized for issuance | 1,500,000 | 2,400,000 | |||||||
2009 Stock Incentive Plan [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock option awards contractual term | 10 years |
Share Based Payments - Summary
Share Based Payments - Summary of Stock Option and Restricted Stock Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Awards outstanding at June 30, 2014 | 3,923 | |
Plan amendment | 1,500 | |
Awards granted | (1,450) | |
Awards forfeited | 120 | |
Awards expired | 0 | |
Awards outstanding at June 30, 2015 | 4,093 | 3,923 |
Awards outstanding at June 30, 2014 | 1,968 | |
Awards granted | 1,133 | |
Shares vested | (895) | |
Awards forfeited | (102) | |
Awards outstanding at June 30, 2015 | 2,104 | 1,968 |
Weighted Average Grant Date Fair Value | ||
Awards outstanding at June 30, 2014 | $ 26.85 | |
Awards granted | 27.05 | |
Shares vested | 26.27 | |
Awards forfeited | 27.61 | |
Awards outstanding at June 30, 2015 | $ 27.17 | $ 26.85 |
Awards outstanding at June 30, 2014 | 405 | |
Awards granted | 0 | |
Stock options exercised | (136) | |
Awards forfeited | (3) | |
Awards expired | (2) | |
Awards outstanding at June 30, 2015 | 264 | 405 |
Stock options exercisable at June 30, 2015 | 255 | |
Weighted Average Exercise Price | ||
Awards outstanding at June 30, 2014 | $ 10.76 | |
Awards granted | 0 | |
Stock options exercised | 11.74 | |
Awards forfeited | 7.09 | |
Awards expired | 11.09 | |
Awards outstanding at June 30, 2015 | 10.28 | $ 10.76 |
Stock options exercisable at June 30, 2015 | $ 10.41 | |
Weighted Average Remaining Contractual Term | ||
Awards outstanding | 3 years 8 months 12 days | 3 years 9 months 18 days |
Stock options exercisable | 3 years 6 months | |
Aggregate Intrinsic Value | ||
Awards outstanding at June 30, 2014 | $ 7,759 | |
Awards outstanding at June 30, 2015 | 4,623 | $ 7,759 |
Stock options exercisable at June 30, 2015 | $ 4,433 |
Share Based Payments - Summar75
Share Based Payments - Summary of Stock Option and Restricted Stock Activity (Parenthetical) (Detail) | 12 Months Ended |
Jun. 30, 2015shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock subject to such restricted stock award | 1.28 |
Share Based Payments - Schedule
Share Based Payments - Schedule of Shares Issued as Purchase Consideration with Forfeiture Provisions (Detail) - 12 months ended Jun. 30, 2015 - $ / shares shares in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding at June 30, 2014 | 1,968 |
Number of Shares, Purchase consideration shares with forfeiture provisions | 1,133 |
Number of Shares, Lapse of forfeiture provisions | (895) |
Number of Shares, Shares forfeited | (102) |
Awards outstanding at June 30, 2015 | 2,104 |
Awards outstanding at June 30, 2014 | $ 26.85 |
Weighted Average Grant Date Fair Value, Purchase consideration shares with forfeiture provisions | 27.05 |
Weighted Average Grant Date Fair Value, Shares forfeited | 27.61 |
Awards outstanding at June 30, 2015 | $ 27.17 |
Equity Acquisition Activity [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding at June 30, 2014 | 181 |
Number of Shares, Purchase consideration shares with forfeiture provisions | 839 |
Number of Shares, Lapse of forfeiture provisions | (82) |
Number of Shares, Shares forfeited | (32) |
Awards outstanding at June 30, 2015 | 906 |
Awards outstanding at June 30, 2014 | $ 34.03 |
Weighted Average Grant Date Fair Value, Purchase consideration shares with forfeiture provisions | 22.74 |
Weighted Average Grant Date Fair Value, Lapse of forfeiture provisions | 30.91 |
Weighted Average Grant Date Fair Value, Shares forfeited | 35.06 |
Awards outstanding at June 30, 2015 | $ 23.82 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Computation of Basic and Diluted Net Income per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Numerator-basic and diluted: | |||||||||||
Net loss | $ (21,620) | $ (7,830) | $ (1,962) | $ (3,268) | $ (1,481) | $ (4,310) | $ (7,265) | $ (6,048) | $ (34,680) | $ (19,104) | $ (14,395) |
Denominator: | |||||||||||
Shares used in computing basic and diluted net loss per share attributable to common stockholders | 38,056 | 37,762 | 37,759 | 37,647 | 37,374 | 37,081 | 36,667 | 36,214 | 37,806 | 36,834 | 35,444 |
Basic and diluted net loss per share attributable to common stockholders | $ (0.57) | $ (0.21) | $ (0.05) | $ (0.09) | $ (0.04) | $ (0.12) | $ (0.20) | $ (0.17) | $ (0.92) | $ (0.52) | $ (0.41) |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive securities excluded from calculation of diluted earnings per share | 2.9 | 2.6 | 2.9 |
Number of shares purchased through issue of warrants | 6.3 | ||
Common stock exercise price | $ 40.04 |
Operations by Industry Segmen79
Operations by Industry Segments and Geographic Area - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Operations by Industry Segmen80
Operations by Industry Segments and Geographic Area - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment revenue: | |||||||||||
Segment revenue | $ 85,370 | $ 81,951 | $ 82,225 | $ 81,343 | $ 81,679 | $ 78,252 | $ 73,405 | $ 67,249 | $ 330,889 | $ 300,585 | $ 254,774 |
Segment measure of profit: | |||||||||||
Total measure of segment profit | 60,909 | 52,850 | 42,650 | ||||||||
Payments and Transactional Documents [Member] | |||||||||||
Segment revenue: | |||||||||||
Segment revenue | 127,527 | 125,456 | 120,590 | ||||||||
Segment measure of profit: | |||||||||||
Total measure of segment profit | 33,140 | 37,461 | 35,143 | ||||||||
Hosted Solutions [Member] | |||||||||||
Segment revenue: | |||||||||||
Segment revenue | 126,178 | 107,360 | 67,504 | ||||||||
Segment measure of profit: | |||||||||||
Total measure of segment profit | 15,329 | 8,344 | 4,577 | ||||||||
Digital Banking [Member] | |||||||||||
Segment revenue: | |||||||||||
Segment revenue | 77,184 | 67,769 | 66,680 | ||||||||
Segment measure of profit: | |||||||||||
Total measure of segment profit | $ 12,440 | $ 7,045 | $ 2,930 |
Operations by Industry Segmen81
Operations by Industry Segments and Geographic Area - Reconciliation of Measure of Segment Profit to GAAP Income before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total measure of segment profit | $ 60,909 | $ 52,850 | $ 42,650 |
Less: | |||
Amortization of intangible assets | (30,383) | (26,242) | (19,549) |
Share-based compensation expense | (27,025) | (22,821) | (18,031) |
Restructuring expense | (1,297) | ||
Loss on derivative instruments, net | (4,435) | ||
Other expense, net | (15,553) | (14,544) | (11,357) |
Loss before income taxes | (16,316) | (17,022) | (18,293) |
Operating Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total measure of segment profit | 60,909 | 52,850 | 42,650 |
Segment Reconciling Items [Member] | |||
Less: | |||
Amortization of intangible assets | (30,383) | (26,242) | (19,549) |
Share-based compensation expense | (27,025) | (22,821) | (18,031) |
Acquisition and integration related expenses | (2,835) | (4,563) | (10,827) |
Restructuring expense | (1,297) | (1,371) | (1,179) |
Non-cash pension expense | (56) | (331) | |
Loss on derivative instruments, net | (4,435) | ||
Other non-core expenses | (76) | ||
Other expense, net | $ (15,553) | $ (14,544) | $ (6,922) |
Operations by Industry Segmen82
Operations by Industry Segments and Geographic Area - Schedule of Segment Depreciation Expense Included in Segment Measure of Profit (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Depreciation expense: | |||
Depreciation expense | $ 10,507 | $ 8,250 | $ 6,861 |
Payments and Transactional Documents [Member] | |||
Depreciation expense: | |||
Depreciation expense | 2,730 | 2,231 | 1,944 |
Hosted Solutions [Member] | |||
Depreciation expense: | |||
Depreciation expense | 5,134 | 3,950 | 2,772 |
Digital Banking [Member] | |||
Depreciation expense: | |||
Depreciation expense | $ 2,643 | $ 2,069 | $ 2,145 |
Operations by Industry Segmen83
Operations by Industry Segments and Geographic Area - Schedule of Revenue Based on Point of Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from unaffiliated customers | $ 85,370 | $ 81,951 | $ 82,225 | $ 81,343 | $ 81,679 | $ 78,252 | $ 73,405 | $ 67,249 | $ 330,889 | $ 300,585 | $ 254,774 |
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from unaffiliated customers | 193,286 | 171,641 | 167,368 | ||||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from unaffiliated customers | 93,735 | 96,719 | 79,774 | ||||||||
Continental Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from unaffiliated customers | 38,053 | 29,047 | 4,311 | ||||||||
Asia-Pacific and Middle East [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from unaffiliated customers | $ 5,815 | $ 3,178 | $ 3,321 |
Operations by Industry Segmen84
Operations by Industry Segments and Geographic Area - Schedule of Long-Lived Assets, Excluding Deferred Tax Assets and Intangible Assets, Based on Geographic Designation (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Long-lived assets | ||
Long-lived assets | $ 58,593 | $ 46,848 |
North America [Member] | ||
Long-lived assets | ||
Long-lived assets | 45,350 | 36,856 |
United Kingdom [Member] | ||
Long-lived assets | ||
Long-lived assets | 8,573 | 6,611 |
Continental Europe [Member] | ||
Long-lived assets | ||
Long-lived assets | 2,390 | 3,224 |
Asia-Pacific and Middle East [Member] | ||
Long-lived assets | ||
Long-lived assets | $ 2,280 | $ 157 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Current: | |||
Federal | $ 1,433 | $ 1,464 | $ (173) |
State | 188 | 80 | 21 |
Foreign | 4,570 | 6,319 | 4,983 |
Provision for (benefit from) income taxes, Current | 6,191 | 7,863 | 4,831 |
Deferred: | |||
Federal | 14,720 | 42 | (5,315) |
State | 1,154 | (1,180) | (1,338) |
Foreign | (3,701) | (4,643) | (2,076) |
Provision for (benefit from) income taxes, Deferred | 12,173 | (5,781) | (8,729) |
Provision for (benefit from) income taxes | $ 18,364 | $ 2,082 | $ (3,898) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) net | $ 213 | $ 72 | $ 77 | ||
Increase to additional paid-in capital | 100 | ||||
Net operating loss carryforwards | $ 500 | 500 | |||
Excess tax deductions | 45,600 | 45,600 | |||
Net operating losses utilized | 9,000 | ||||
Research and development tax credit carryforwards | 4,500 | 4,500 | |||
Increase in research and development tax credit carryforwards resulting from enactment | 300 | ||||
Valuation allowance against certain deferred tax assets | 23,584 | 23,584 | 7,923 | ||
Increase in valuation allowance | 16,034 | 15,700 | |||
Valuation allowance reversed through additional paid in capital | 3,200 | 3,200 | |||
Income tax expense | 18,364 | 2,082 | (3,898) | ||
Gross unrecognized tax benefits | 6,305 | 6,305 | $ 4,085 | $ 1,829 | $ 958 |
Unrecognized tax benefits that, if recognized, would favorably affect effective income tax rate in future periods | 1,500 | 1,500 | |||
Reduction to valuation allowance | 2,500 | ||||
Reduction to tax credit carryforwards | 2,300 | 2,300 | |||
Unrecognized tax benefits decrease as a result of the expiration of certain statutes | 300 | ||||
Swiss Pension Plan [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Increase in other comprehensive income | 1,000 | ||||
United States [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | 71,600 | 71,600 | |||
Excess tax deductions associated with non-qualified stock options | 54,400 | ||||
Net operating losses utilized | 8,400 | ||||
Continental Europe [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | $ 13,300 | 13,300 | |||
Excess tax deductions associated with non-qualified stock options | 700 | ||||
Net operating losses utilized | $ 600 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Income (Loss) Before Income Taxes By Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Contingency [Line Items] | |||
Loss before income taxes | $ (16,316) | $ (17,022) | $ (18,293) |
United States [Member] | |||
Income Tax Contingency [Line Items] | |||
Loss before income taxes | (18,277) | (25,310) | (29,129) |
United Kingdom [Member] | |||
Income Tax Contingency [Line Items] | |||
Loss before income taxes | 16,728 | 19,035 | 10,651 |
Continental Europe [Member] | |||
Income Tax Contingency [Line Items] | |||
Loss before income taxes | (7,608) | (10,936) | (352) |
Asia-Pacific and Middle East [Member] | |||
Income Tax Contingency [Line Items] | |||
Loss before income taxes | $ (7,159) | $ 189 | $ 537 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Federal Statutory Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Tax expense (benefit) at federal statutory rate | (35.00%) | (35.00%) | (35.00%) |
State taxes, net of federal benefit | (5.20%) | (7.30%) | (7.40%) |
Change in valuation allowance | 98.60% | 1.20% | 0.60% |
Foreign branch operations, net of foreign tax deductions | 33.10% | 42.30% | 17.80% |
Changes in uncertain tax positions | 13.00% | 12.70% | 3.90% |
Non-deductible executive compensation | 5.30% | 5.10% | 2.40% |
Non-deductible share-based payments | 3.60% | 2.30% | 1.20% |
Non-deductible acquisition costs | 3.00% | 6.60% | 5.00% |
Non-deductible other expenses | 1.80% | 1.40% | 1.40% |
Non-deductible interest | 0.00% | 5.30% | 0.00% |
Convertible debt | 0.00% | 0.00% | 5.50% |
Changes in tax laws or rates | (1.80%) | (3.40%) | (2.10%) |
Research and development credit | (2.70%) | (2.50%) | (5.20%) |
Tax rate differential on foreign earnings | (4.20%) | (16.40%) | (8.50%) |
Other | 3.10% | (0.10%) | (0.90%) |
Effective income tax rate, continuing operations | 112.60% | 12.20% | (21.30%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 14,512 | $ 19,364 |
Deferred revenue | 9,528 | 6,954 |
Stock compensation | 5,956 | 5,823 |
Research and development and other credits | 5,279 | 4,592 |
Accrued pension | 3,212 | 2,365 |
Various accrued expenses | 2,627 | 2,345 |
Property and equipment | 251 | 463 |
Allowances and reserves | 235 | 235 |
Other | 56 | 50 |
Total deferred tax assets | 41,656 | 42,191 |
Valuation allowance | (23,584) | (7,923) |
Deferred tax assets, net of valuation allowance | 18,072 | 34,268 |
Deferred tax liabilities: | ||
Intangible assets | (38,137) | (36,171) |
Property and equipment | (6,848) | (3,324) |
Convertible debt | (3,040) | (4,126) |
Other | (201) | (61) |
Total deferred tax liabilities | (48,226) | (43,682) |
Net deferred tax liabilities | $ (30,154) | $ (9,414) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Gross Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance | $ 4,085 | $ 1,829 | $ 958 |
Additions related to current year tax positions | 2,392 | 2,265 | 854 |
Additions related to prior year tax positions | 145 | 11 | 129 |
Reductions due to lapse of statute of limitations | (213) | (72) | (77) |
Reductions due to settlements | (21) | ||
Foreign currency translation | (104) | 52 | (14) |
Balance | $ 6,305 | $ 4,085 | $ 1,829 |
Quarterly Financial Data - Sche
Quarterly Financial Data - Schedule of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 85,370 | $ 81,951 | $ 82,225 | $ 81,343 | $ 81,679 | $ 78,252 | $ 73,405 | $ 67,249 | $ 330,889 | $ 300,585 | $ 254,774 |
Gross profit | 49,268 | 47,038 | 48,112 | 47,030 | 46,461 | 44,661 | 41,001 | 37,794 | 191,448 | 169,917 | 135,488 |
Net loss | $ (21,620) | $ (7,830) | $ (1,962) | $ (3,268) | $ (1,481) | $ (4,310) | $ (7,265) | $ (6,048) | $ (34,680) | $ (19,104) | $ (14,395) |
Basic and diluted net loss per share | $ (0.57) | $ (0.21) | $ (0.05) | $ (0.09) | $ (0.04) | $ (0.12) | $ (0.20) | $ (0.17) | $ (0.92) | $ (0.52) | $ (0.41) |
Shares used in computing basic and diluted net loss per share | 38,056 | 37,762 | 37,759 | 37,647 | 37,374 | 37,081 | 36,667 | 36,214 | 37,806 | 36,834 | 35,444 |
Quarterly Financial Data - Sc92
Quarterly Financial Data - Schedule of Selected Quarterly Financial Data (Parenthetical) (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Quarterly Financial Information Disclosure [Abstract] | ||
Valuation allowance deferred tax assets | $ 16,034 | $ 15,700 |