Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,501,303 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 123,790 | $ 97,174 |
Marketable securities | 17,150 | 35,209 |
Accounts receivable net of allowances for doubtful accounts of $866 at March 31, 2017 and $982 at June 30, 2016 | 62,333 | 61,773 |
Deferred tax assets | 6,244 | |
Prepaid expenses and other current assets | 17,678 | 16,141 |
Total current assets | 220,951 | 216,541 |
Property and equipment, net | 53,909 | 51,029 |
Goodwill | 190,436 | 202,028 |
Intangible assets, net | 145,795 | 164,930 |
Other assets | 17,945 | 16,682 |
Total assets | 629,036 | 651,210 |
Current liabilities: | ||
Accounts payable | 9,268 | 10,218 |
Accrued expenses | 26,210 | 27,512 |
Deferred revenue | 77,384 | 74,332 |
Convertible senior notes | 180,141 | |
Total current liabilities | 293,003 | 112,062 |
Convertible senior notes | 169,857 | |
Deferred revenue, non-current | 20,795 | 19,086 |
Deferred income taxes | 15,008 | 28,147 |
Other liabilities | 27,186 | 27,271 |
Total liabilities | 355,992 | 356,423 |
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-42,489 at March 31, 2017 and 41,602 at June 30, 2016; outstanding shares-38,135 at March 31, 2017 and 37,770 at June 30, 2016 | 42 | 42 |
Additional paid-in-capital | 616,119 | 591,800 |
Accumulated other comprehensive loss | (43,955) | (37,668) |
Treasury stock: 4,354 shares at March 31, 2017 and 3,832 shares at June 30, 2016, at cost | (88,129) | (75,832) |
Accumulated deficit | (211,033) | (183,555) |
Total stockholders' equity | 273,044 | 294,787 |
Total liabilities and stockholders' equity | $ 629,036 | $ 651,210 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances for doubtful accounts and returns | $ 866 | $ 982 |
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 | 42,489,000 | 41,602,000 |
Common Stock, Outstanding shares | 38,135,000 | 37,770,000 |
Treasury stock, shares | 4,354,000 | 3,832,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||||
Subscriptions and transactions | $ 55,851 | $ 49,488 | $ 163,627 | $ 144,317 |
Software licenses | 2,735 | 5,777 | 8,348 | 15,754 |
Service and maintenance | 26,344 | 29,100 | 79,937 | 89,797 |
Other | 1,169 | 1,868 | 3,999 | 5,294 |
Total revenues | 86,099 | 86,233 | 255,911 | 255,162 |
Cost of revenues: | ||||
Subscriptions and transactions | 25,867 | 22,461 | 74,535 | 64,568 |
Software licenses | 265 | 165 | 589 | 741 |
Service and maintenance | 12,607 | 13,276 | 39,308 | 39,545 |
Other | 835 | 1,317 | 2,891 | 3,807 |
Total cost of revenues | 39,574 | 37,219 | 117,323 | 108,661 |
Gross profit | 46,525 | 49,014 | 138,588 | 146,501 |
Operating expenses: | ||||
Sales and marketing | 18,976 | 20,419 | 57,176 | 62,854 |
Product development and engineering | 13,057 | 11,934 | 39,074 | 34,959 |
General and administrative | 10,863 | 9,790 | 35,339 | 28,035 |
Amortization of intangible assets | 6,006 | 7,226 | 18,381 | 21,720 |
Goodwill impairment charge | 7,529 | |||
Total operating expenses | 48,902 | 49,369 | 157,499 | 147,568 |
Loss from operations | (2,377) | (355) | (18,911) | (1,067) |
Other expense, net | (4,479) | (3,882) | (12,596) | (11,409) |
Loss before income taxes | (6,856) | (4,237) | (31,507) | (12,476) |
Income tax provision (benefit) | (232) | (7) | (4,029) | 1,246 |
Net loss | $ (6,624) | $ (4,230) | $ (27,478) | $ (13,722) |
Basic and diluted net loss per share: | $ (0.17) | $ (0.11) | $ (0.73) | $ (0.36) |
Shares used in computing basic and diluted net loss per share: | 37,965 | 38,101 | 37,891 | 37,959 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on available for sale securities | $ 2 | $ 77 | $ (104) | $ 9 |
Minimum pension liability adjustments | (16) | (124) | 609 | 55 |
Foreign currency translation adjustments | 2,667 | 1,829 | (6,792) | (8,699) |
Other comprehensive income (loss), net of tax: | 2,653 | 1,782 | (6,287) | (8,635) |
Comprehensive loss | $ (3,971) | $ (2,448) | $ (33,765) | $ (22,357) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net loss | $ (27,478) | $ (13,722) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Amortization of acquired intangible assets | 18,381 | 21,720 |
Stock compensation expense | 24,209 | 23,094 |
Depreciation and amortization | 12,925 | 9,789 |
Goodwill impairment charge | 7,529 | |
Deferred income tax benefit | (6,374) | (3,335) |
Provision for allowances on accounts receivable | 51 | 342 |
Excess tax benefits associated with stock compensation | (102) | (134) |
Amortization of debt issuance costs | 1,022 | 888 |
Amortization of debt discount | 9,396 | 8,751 |
Amortization of premium on investments | 184 | 226 |
Loss on disposal of equipment | 89 | 2 |
Write down of fixed assets | 17 | |
(Gain) loss on foreign exchange | (187) | 77 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,497) | 1,623 |
Prepaid expenses and other current assets | (1,756) | (1,574) |
Other assets | 719 | (4,370) |
Accounts payable | (616) | 230 |
Accrued expenses | 1,984 | (924) |
Deferred revenue | 6,220 | 9,599 |
Other liabilities | 1,138 | 367 |
Net cash provided by operating activities | 45,837 | 52,666 |
Investing activities: | ||
Acquisition of businesses and assets, net of cash acquired | (1,263) | |
Purchases of cost-method investments | (4,010) | |
Purchases of held-to-maturity securities | (105) | |
Proceeds from sales of held-to-maturity securities | 105 | |
Purchase of available-for-sale securities | (13,600) | (20,424) |
Proceeds from sales of available-for-sale securities | 31,374 | 10,036 |
Capital expenditures including capitalization of software costs | (20,296) | (20,776) |
Proceeds from disposal of property and equipment | 7 | |
Net cash used in investing activities | (2,522) | (36,430) |
Financing activities: | ||
Repurchase of common stock | (14,971) | (23,938) |
Debt issuance costs related to credit facility | (2,163) | |
Proceeds from exercise of stock options and employee stock purchase plan | 2,774 | 3,261 |
Excess tax benefits associated with stock compensation | 102 | 134 |
Net cash used in financing activities | (14,258) | (20,543) |
Effect of exchange rate changes on cash | (2,441) | (1,423) |
Increase (decrease) in cash and cash equivalents | 26,616 | (5,730) |
Cash and cash equivalents at beginning of period | 97,174 | 121,163 |
Cash and cash equivalents at end of period | $ 123,790 | $ 115,433 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1—Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Bottomline Technologies (de), Inc. (referred to below as we, us, our or Bottomline) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q S-X. 10-K |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2—Recent Accounting Pronouncements Recently Adopted Pronouncements Development Stage Entities: re-assess re-assessment, Going Concern: Cloud Computing Arrangements: Debt Issuance Costs - Classification: non-current Deferred Taxes - Classification: Revenue Recognition: We are continuing to evaluate the expected impact of this standard on our consolidated financial statements and currently plan to adopt the standard using the modified retrospective method. While our assessment of the impact of this standard is not complete, we currently believe that the most significant impact will be in certain areas: • Under the new standard, vendor specific objective evidence (VSOE) will no longer be required to determine the fair value of elements in arrangement. As a result, the absence of VSOE in certain software arrangements will no longer result in strict revenue deferral. Absent a change in how we license our products, we believe that this will result in greater up-front • 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 will result in the deferral of certain fulfillment 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. • Under the new standard, costs to obtain a contract, including sales commissions, will be capitalized and amortized on a basis that is consistent with the transfer of goods and services to its customer. We anticipate that this will result in the deferral of certain commission related costs that, today, are expensed as incurred. • Significantly enhanced financial statement disclosures related to revenue, including information related to the allocation of transaction price across undelivered performance obligations. 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 these financial reporting outcomes. Financial Instruments - Classification and Measurement: Leases: right-of-use Share-Based Compensation: non-recoverable). Financial Instruments - Credit Losses: Statement of Cash Flows: Income Taxes: non-inventory Consolidation: Business Combinations: Goodwill Impairment: Defined Benefit Plan Expenses: non-operating non-operating |
Fair Value
Fair Value | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 3—Fair Value 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 March 31, 2017 and June 30, 2016, our assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2017 June 30, 2016 Fair Value Measurements Using Input Fair Value Measurements Using Input (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds (cash and cash equivalents) $ 327 $ — $ — $ 327 $ 117 $ — $ — $ 117 Available for sale securities Debt US Corporate $ 6,812 $ — $ — $ 6,812 $ 9,580 $ — $ — $ 9,580 Residential mortgage-backed 4,226 — — 4,226 9,604 — — 9,604 Government - US 6,046 — — 6,046 15,962 — — 15,962 Total available for sale securities $ 17,084 $ — $ — $ 17,084 $ 35,146 $ — $ — $ 35,146 Fair Value of Financial Instruments We have certain financial instruments which consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and our 1.5% Convertible Senior Notes maturing on December 1, 2017 (the Notes) as more fully described in Note 10 Indebtedness • 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 March 31, 2017 and June 30, 2016, approximated fair value. • Marketable securities classified as available for sale are recorded at fair value. Unrealized gains and losses are included as a component of accumulated other comprehensive loss in stockholders’ 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 related to deposits we have made to fund future requirements associated with Israeli severance arrangements was $1.5 million and $1.4 million at March 31, 2017 and June 30, 2016, respectively, which approximated their fair value. • We have certain other investments accounted for at cost. The carrying value of these investments was $7.7 million at both March 31, 2017 and June 30, 2016 and are reported as a component of our other assets. These investments are recorded 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 including information based on recent or pending third-party equity investments in these entities. In certain instances, a cost method investment’s fair value may not be estimated if there are no identified events or changes in circumstances that would indicate 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 (net of debt issuance costs) of the Notes, $180.1 million at March 31, 2017, will be accreted over the remaining term to maturity to their principal value of $189.8 million. The fair value of the Notes (inclusive of the Conversion Feature) was approximately $191.7 million as of March 31, 2017. We estimated the fair value of the Notes by reference to quoted market prices (Level 1); 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. Marketable Securities The table below presents information regarding our marketable securities by major security type as of March 31, 2017 and June 30, 2016. March 31, 2017 June 30, 2016 Held to Available for Total Held to Available for Total (in thousands) Marketable securities: Corporate and other debt securities $ 66 $ 17,084 $ 17,150 $ 63 $ 35,146 $ 35,209 Total marketable securities $ 66 $ 17,084 $ 17,150 $ 63 $ 35,146 $ 35,209 The following table summarizes the estimated fair value of our investments in available for sale marketable securities classified by the contractual maturity date of the securities. March 31, 2017 (in thousands) Due within 1 year $ 8,243 Due in 1 year through 5 years 8,841 Total $ 17,084 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 and view these investments as available to fund current operations. At March 31, 2017, the difference between the fair value of our available for sale securities and their amortized cost was not significant. 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 March 31, 2017, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: At March 31, 2017 Less than 12 Months Fair Value Unrealized Loss (in thousands) US Corporate $ 5,165 $ (7 ) Residential mortgage-backed 3,495 (11 ) Government—US 3,486 (16 ) Total $ 12,146 $ (34 ) |
Other Investments
Other Investments | 9 Months Ended |
Mar. 31, 2017 | |
Schedule of Investments [Abstract] | |
Other Investments | Note 4—Other Investments In December 2015, we made a $3.5 million investment in preferred stock of a privately held, early-stage technology company. We have the ability to exercise significant influence over this company; however, we have no ability to exert control. Investments in common stock or in-substance In-substance in-substance We concluded that this company is a variable interest entity (VIE) as it lacks sufficient equity to finance its activities. However, we also concluded that we are not the primary beneficiary of the VIE as we do not have the power to exert control or direct the activities that most significantly impact the VIE’s economic performance. As we have determined we are not the primary beneficiary, consolidation of the VIE is not required. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 5—Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands, except per share amounts) Numerator - basic and diluted: Net loss $ (6,624 ) $ (4,230 ) $ (27,478 ) $ (13,722 ) Denominator: Shares used in computing basic and diluted net loss per share attributable to common stockholders 37,965 38,101 37,891 37,959 Basic and diluted net loss per share attributable to common stockholders $ (0.17 ) $ (0.11 ) $ (0.73 ) $ (0.36 ) For the three and nine months ended March 31, 2017, approximately 2.7 million and 3.0 million shares, respectively, of unvested restricted stock and stock options were excluded from the calculation of diluted earnings per share as their effect on the calculation would have been anti-dilutive. For the three and nine months ended March 31, 2016, approximately 3.0 million and 3.1 million shares, respectively, of unvested restricted stock and stock options were excluded from the calculation of diluted earnings per share as their effect on the calculation would have been anti-dilutive. As more fully discussed in Note 10 Indebtedness |
Operations by Segments and Geog
Operations by Segments and Geographic Areas | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operations by Segments and Geographic Areas | Note 6—Operations by Segments and Geographic Areas Segment Information 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 the fiscal year ended June 30, 2016 (fiscal year 2016), we re-examined Similar operating segments have been aggregated into four reportable segments as follows: Payments and Transactional Documents. Hosted Solutions. Paymode-X). Digital Banking. Other non-invasively 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 non-core non-core non-recurring We do not track or assign our assets by operating segment. Segment information for the three and nine months ended March 31, 2017 and 2016 according to the segment descriptions above, is as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Segment revenue: Payments and Transactional Documents $ 24,107 $ 28,753 $ 73,768 $ 85,139 Hosted Solutions 39,248 34,281 112,837 103,038 Digital Banking 18,294 17,773 55,944 52,047 Other 4,450 5,426 13,362 14,938 Total segment revenue $ 86,099 $ 86,233 $ 255,911 $ 255,162 Segment measure of profit (loss): Payments and Transactional Documents $ 7,451 $ 8,700 $ 22,644 $ 24,852 Hosted Solutions 7,116 5,461 19,347 18,317 Digital Banking 388 1,512 1,456 4,630 Other (570 ) 285 (1,928 ) (597 ) Total measure of segment profit $ 14,385 $ 15,958 $ 41,519 $ 47,202 A reconciliation of the measure of segment profit to GAAP loss before income taxes is as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Total measure of segment profit $ 14,385 $ 15,958 $ 41,519 $ 47,202 Less: Amortization of acquired intangible assets (6,006 ) (7,226 ) (18,381 ) (21,720 ) Goodwill impairment charge — — (7,529 ) — Stock-based compensation expense (7,354 ) (7,628 ) (24,209 ) (23,094 ) Acquisition and integration related expenses (501 ) (305 ) (2,272 ) (574 ) Restructuring expenses (561 ) (48 ) (561 ) (922 ) Minimum pension liability and related adjustments (264 ) (66 ) (805 ) (140 ) Global ERP system implementation costs (2,076 ) (1,040 ) (6,673 ) (1,819 ) Other expense, net (4,479 ) (3,882 ) (12,596 ) (11,409 ) Loss before income taxes $ (6,856 ) $ (4,237 ) $ (31,507 ) $ (12,476 ) The following depreciation and amortization expense amounts are included in the segment measure of profit: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Depreciation and other amortization expense: Payments and Transactional Documents $ 803 $ 722 $ 2,357 $ 2,129 Hosted Solutions 2,274 1,540 5,974 4,429 Digital Banking 1,498 1,074 4,304 2,879 Other 109 128 290 352 Total depreciation and other amortization expense $ 4,684 $ 3,464 $ 12,925 $ 9,789 Geographic Information 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 for which the point of sale was North America. Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) North America $ 54,073 $ 49,328 $ 160,785 $ 147,290 United Kingdom 20,096 24,592 60,240 72,226 Continental Europe 9,475 9,728 28,009 28,863 Asia-Pacific and Middle East 2,455 2,585 6,877 6,783 Total revenues from unaffiliated customers $ 86,099 $ 86,233 $ 255,911 $ 255,162 Long-lived assets, excluding deferred tax assets and intangible assets, which are based on geographical location, were as follows: At March 31, At June 30, 2017 2016 (in thousands) Long-lived assets: North America $ 59,642 $ 55,208 United Kingdom 8,212 8,499 Continental Europe 1,933 1,924 Asia-Pacific and Middle East 2,067 2,080 Total long-lived assets $ 71,854 $ 67,711 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7—Income Taxes The income tax expense we record in any interim period is based on our estimated effective tax rate for the fiscal year for those tax jurisdictions in which we can reliably estimate our effective tax rate. The calculation of our estimated effective tax rate requires an estimate of pre-tax pre-tax year-to-date We recorded an income tax benefit of $0.2 million and $7,000 for the three months ended March 31, 2017 and 2016, respectively. The income tax benefit for the three months ended March 31, 2017 was principally due to a tax benefit associated with our Swiss and Israeli operations, offset by tax expense associated with our US and UK operations. Our US operations include income tax expense for goodwill that is deductible for tax purposes but not amortized for financial reporting purposes. The income tax benefit for the three months ended March 31, 2016 was principally due to a tax benefit associated with our Swiss and Israeli operations, which was offset in part by tax expense associated with our US and UK operations. We recorded an income tax benefit of $4.0 million and income tax expense of $1.2 million for the nine months ended March 31, 2017 and 2016, respectively. The income tax benefit for the nine months ended March 31, 2017 was primarily due to a discrete tax benefit in Switzerland of $4.5 million related to the impairment of its investment in Intellinx Ltd. We also recorded a tax benefit associated with our Swiss and Israeli operations and a discrete tax benefit of approximately $0.1 million from the enactment of legislation that decreased UK income tax rates. The income tax benefit was offset in part by tax expense associated with our US and UK operations. The US income tax expense was principally due to an increase in deferred tax liabilities for goodwill that is deductible for tax purposes but not amortized for financial reporting purposes. The income tax expense for the nine months ended March 31, 2016 was principally due to tax expense associated with our US and UK operations, which was offset in part by a tax benefit associated with our Swiss and Israeli operations and by a discrete tax benefit from the enactment of legislation that decreased UK income tax rates. 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. 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. The process of assessing deferred tax asset recoverability is inherently judgmental, and 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 March 31, 2017 we have recorded a $35.8 million valuation allowance against certain deferred tax assets given the uncertainty of recoverability of these amounts. In November 2016, the Internal Revenue Service commenced an audit on our US federal tax return for the fiscal year ended June 30, 2015, a process that we anticipate will take several quarters to complete. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 8—Goodwill and Other Intangible Assets We perform an impairment test of goodwill during the fourth quarter of each fiscal year or whenever indicators of potential impairment arise. We had identified our Intellinx reporting unit as being at heightened risk of impairment in prior periods and based on our most recent impairment testing, during the fourth quarter of fiscal year 2016, the excess of fair value over the carrying value of our Intellinx reporting unit was 14%. Our Intellinx reporting unit is a component of our Other reportable segment. In the second quarter of fiscal year 2017, based on continued shortfalls of revenue against our revenue projections, we performed the first step of the goodwill impairment test for the Intellinx reporting unit and determined the fair value was lower than its respective carrying value. Accordingly, we performed the second step of the goodwill impairment test which compares the estimated fair value of a reporting unit’s goodwill to its carrying value. As a result of this test, we recorded a non-cash, In calculating the goodwill impairment charge recorded during the second quarter of fiscal year 2017, we completed a discounted cash flow model associated with our Intellinx business, including the amount and timing of future expected cash flows, tax attributes, a terminal value growth rate and an appropriate market-participant, risk-adjusted, weighted average cost of capital in each case using estimates that we considered to be reasonable and appropriate. Prior to performing the goodwill impairment test, we performed a test of recoverability for the finite lived intangible assets related to our Intellinx reporting unit, including the core technology intangible asset. The test of recoverability for these assets is based on an undiscounted cash flow model. Based on that analysis, we concluded these assets were not impaired. The following tables set forth the information for intangible assets subject to amortization and for intangible assets not subject to amortization. As of March 31, 2017 Gross Carrying Accumulated Net Carrying Value Weighted Average (in thousands) (in years) Amortized intangible assets: Customer related $ 186,977 $ (117,503 ) $ 69,474 8.9 Core technology 129,373 (71,092 ) 58,281 9.0 Other intangible assets 20,323 (15,025 ) 5,298 6.2 Capitalized software development costs 15,549 (2,807 ) 12,742 5.3 Total $ 352,222 $ (206,427 ) $ 145,795 Unamortized intangible assets: Goodwill 190,436 Total intangible assets $ 336,231 As of June 30, 2016 Gross Carrying Accumulated Net Carrying Value Weighted Average (in thousands) (in years) Amortized intangible assets: Customer related $ 190,549 $ (110,356 ) $ 80,193 9.6 Core technology 130,434 (64,591 ) 65,843 9.5 Other intangible assets 20,469 (13,320 ) 7,149 6.1 Capitalized software development costs 12,993 (1,248 ) 11,745 6.0 Total $ 354,445 $ (189,515 ) $ 164,930 Unamortized intangible assets: Goodwill 202,028 Total intangible assets $ 366,958 Estimated amortization expense for fiscal year 2017 and subsequent fiscal years for acquired intangible assets is as follows: (in thousands) 2017 $ 24,205 2018 20,271 2019 18,352 2020 16,292 2021 14,760 2022 and thereafter 57,554 Estimated amortization expense for fiscal year 2017 and subsequent fiscal years for capitalized software development costs using a straight-line methodology is stated below. Each period we evaluate whether amortization expense using a ratio of revenue in the period to total expected revenue over the product’s expected useful life would result in greater amortization than as calculated under a straight-line methodology and, if that were to occur, amortization in that period would be accelerated accordingly. (in thousands) 2017 $ 2,140 2018 2,331 2019 2,331 2020 2,331 2021 2,331 2022 and thereafter 2,331 The following table represents a rollforward of our goodwill balances, by reportable segment, as follows: Payments and Hosted Solutions Digital Banking Other Total (in thousands) Balance at June 30, 2016 $ 60,852 $ 89,573 $ 35,880 $ 15,723 $ 202,028 Goodwill impairment — — — (7,529 ) (7,529 ) Impact of foreign currency translation (1,156 ) (2,907 ) — — (4,063 ) Balance at March 31, 2017 $ 59,696 $ 86,666 $ 35,880 $ 8,194 $ 190,436 There can be no assurance that there will not be impairment charges in future periods as a result of future impairment reviews. To the extent that future impairment charges occur it would likely have a material impact on our financial results. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9—Commitments and Contingencies During fiscal year 2016, we agreed to indemnify a customer against costs it may incur as a result of a lawsuit filed against them for alleged patent infringement related to certain technology licensed from us, which we license and resell from an outside supplier. We in turn received indemnification from the outside supplier. Bottomline was not named as a party to this lawsuit. In September 2016, we were notified by the supplier that the litigation had been resolved. We were not a party to the settlement, and neither we nor our customer incurred any monetary or other damages in connection therewith. We are, from time to time, a party to legal proceedings and claims that arise out of the ordinary course of our business. We are not currently a party to any material legal proceedings. During the three months ended March 31, 2017, we recorded restructuring expenses associated with severance related benefits of $0.6 million, primarily within our subscriptions and transactions cost of revenues and sales and marketing expense lines, which will be substantially paid by the end of fiscal year 2017. |
Indebtedness
Indebtedness | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | Note 10—Indebtedness Credit Agreement On December 9, 2016, we (as borrower) and certain of our existing and future domestic material restricted subsidiaries (the Guarantors) entered into a credit agreement (the Credit Agreement) with Bank of America, N.A. and certain other lenders (the Lenders). Subject to the terms and conditions set forth in the Credit Agreement, the Lenders have provided us with a five-year revolving credit facility in the amount of up to $300 million (the Credit Facility). Under the Credit Agreement, we also have the right to request an increase of the aggregate commitments under the Credit Facility by up to $150 million without the consent of any Lenders not participating in such increase, subject to specified conditions. The proceeds of the Credit Facility may be used for lawful corporate purposes of Bottomline and its subsidiaries, including acquisitions, share buybacks, capital expenditures, the repayment or refinancing of indebtedness, redemption of the Notes and general corporate purposes. The Credit Facility is available for the issuance of up to $20 million of letters of credit and up to $20 million of swing line loans. The Credit Facility will terminate on December 8, 2021. Loans outstanding under the Credit Facility will bear interest, at our option, at either (i) a Eurodollar rate plus a margin of between 1.50% and 2.25% (which is initially 1.75%) based on the Consolidated Net Leverage Ratio (as defined in the Credit Agreement), or (ii) a base rate plus a margin of between 0.50% and 1.25% (which is initially 0.75%) based on the Consolidated Net Leverage Ratio. Loans under the Credit Agreement may be prepaid at par and commitments under the Credit Agreement may be reduced at any time, in whole or in part, without premium or penalty (except for LIBOR breakage costs). The Credit Facility is guaranteed by the Guarantors and is secured by substantially all of our domestic assets and those of the Guarantors, including a pledge of all of the shares of capital stock of the Guarantors and 65% of the shares of the capital stock of our first-tier foreign subsidiaries or those of any Guarantor, in each case subject to certain exceptions as set forth in the Credit Agreement. The collateral does not include, among other things, any real property or the capital stock or any assets of any unrestricted subsidiary. The Credit Agreement contains customary representations, warranties and covenants, including, but not limited to, material adverse events, specified restrictions on indebtedness, liens, investments, acquisitions, sales of assets, dividends and other restricted payments, and transactions with affiliates. We are required to comply with (a) a maximum consolidated net leverage ratio of 3.75 to 1.00, stepping down to 3.50 to 1.00 for the quarter ending June 30, 2018; (b) a minimum consolidated interest coverage ratio of 3.00 to 1.00; and (c) a minimum liquidity requirement at all times that the Notes are outstanding. The Credit Agreement also contains customary events of default and related cure provisions. In the case of a continuing event of default, the administrative agent would be entitled to exercise various remedies on behalf of the Lenders, including the acceleration of any outstanding loans. Convertible Senior Notes On December 12, 2012, we issued $189.8 million aggregate principal amount of 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 and 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. 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 March 31, 2017, 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 Notes at March 31, 2017 was as follows: (in thousands) Principal amount $ 189,750 Unamortized discount (8,820 ) Unamortized debt issuance costs (789 ) Net carrying value $ 180,141 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 Notes: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) (in thousands) Contractual interest expense (cash) $ 711 $ 712 $ 2,135 $ 2,135 Amortization of debt discount (non-cash) 3,188 2,969 9,396 8,751 Amortization of debt issue costs (non-cash) 296 296 888 888 $ 4,195 $ 3,977 $ 12,419 $ 11,774 Effective interest rate of the liability component 8.22 % 7.76 % 8.10 % 7.65 % 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 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 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 | 9 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 11—Derivative Instruments Our derivative instruments for the quarter ended March 31, 2017 consisted of the Note Hedges, Conversion Feature and Warrants as discussed in Note 10 Indebtedness re-measurement. |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement and Other Employee Benefits | Note 12—Postretirement and Other Employee Benefits Defined Benefit Pension Plan We sponsor a retirement plan for our Swiss-based employees that is governed by local regulatory requirements. This plan includes certain minimum benefit guarantees that, under US GAAP, require defined benefit plan accounting. Net periodic pension costs for the Swiss pension plan include the following components: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Components of net periodic cost Service cost $ 729 $ 562 $ 2,211 $ 1,703 Interest cost 31 119 94 362 Prior service credit (22 ) (22 ) (67 ) (67 ) Net actuarial loss 160 17 486 52 Expected return on plan assets (218 ) (198 ) (661 ) (601 ) Net periodic cost $ 680 $ 478 $ 2,063 $ 1,449 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Bottomline Technologies (de), Inc. (referred to below as we, us, our or Bottomline) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q S-X. 10-K |
Recently Adopted Pronouncements | Recently Adopted Pronouncements Development Stage Entities: re-assess re-assessment, Going Concern: Cloud Computing Arrangements: Debt Issuance Costs - Classification: non-current Deferred Taxes - Classification: |
Accounting Pronouncements to be Adopted | Accounting Pronouncements to be Adopted Revenue Recognition: We are continuing to evaluate the expected impact of this standard on our consolidated financial statements and currently plan to adopt the standard using the modified retrospective method. While our assessment of the impact of this standard is not complete, we currently believe that the most significant impact will be in certain areas: • Under the new standard, vendor specific objective evidence (VSOE) will no longer be required to determine the fair value of elements in arrangement. As a result, the absence of VSOE in certain software arrangements will no longer result in strict revenue deferral. Absent a change in how we license our products, we believe that this will result in greater up-front • 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 will result in the deferral of certain fulfillment 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. • Under the new standard, costs to obtain a contract, including sales commissions, will be capitalized and amortized on a basis that is consistent with the transfer of goods and services to its customer. We anticipate that this will result in the deferral of certain commission related costs that, today, are expensed as incurred. • Significantly enhanced financial statement disclosures related to revenue, including information related to the allocation of transaction price across undelivered performance obligations. 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 these financial reporting outcomes. Financial Instruments - Classification and Measurement: Leases: right-of-use Share-Based Compensation: non-recoverable). Financial Instruments - Credit Losses: Statement of Cash Flows: Income Taxes: non-inventory Consolidation: Business Combinations: Goodwill Impairment: Defined Benefit Plan Expenses: non-operating non-operating |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We have certain financial instruments which consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and our 1.5% Convertible Senior Notes maturing on December 1, 2017 (the Notes) as more fully described in Note 10 Indebtedness • 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 March 31, 2017 and June 30, 2016, approximated fair value. • Marketable securities classified as available for sale are recorded at fair value. Unrealized gains and losses are included as a component of accumulated other comprehensive loss in stockholders’ 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 related to deposits we have made to fund future requirements associated with Israeli severance arrangements was $1.5 million and $1.4 million at March 31, 2017 and June 30, 2016, respectively, which approximated their fair value. • We have certain other investments accounted for at cost. The carrying value of these investments was $7.7 million at both March 31, 2017 and June 30, 2016 and are reported as a component of our other assets. These investments are recorded 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 including information based on recent or pending third-party equity investments in these entities. In certain instances, a cost method investment’s fair value may not be estimated if there are no identified events or changes in circumstances that would indicate 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 (net of debt issuance costs) of the Notes, $180.1 million at March 31, 2017, will be accreted over the remaining term to maturity to their principal value of $189.8 million. The fair value of the Notes (inclusive of the Conversion Feature) was approximately $191.7 million as of March 31, 2017. We estimated the fair value of the Notes by reference to quoted market prices (Level 1); 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. |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | At March 31, 2017 and June 30, 2016, our assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2017 June 30, 2016 Fair Value Measurements Using Input Fair Value Measurements Using Input (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market funds (cash and cash equivalents) $ 327 $ — $ — $ 327 $ 117 $ — $ — $ 117 Available for sale securities Debt US Corporate $ 6,812 $ — $ — $ 6,812 $ 9,580 $ — $ — $ 9,580 Residential mortgage-backed 4,226 — — 4,226 9,604 — — 9,604 Government - US 6,046 — — 6,046 15,962 — — 15,962 Total available for sale securities $ 17,084 $ — $ — $ 17,084 $ 35,146 $ — $ — $ 35,146 |
Marketable Securities by Major Security Type | The table below presents information regarding our marketable securities by major security type as of March 31, 2017 and June 30, 2016. March 31, 2017 June 30, 2016 Held to Available for Total Held to Available for Total (in thousands) Marketable securities: Corporate and other debt securities $ 66 $ 17,084 $ 17,150 $ 63 $ 35,146 $ 35,209 Total marketable securities $ 66 $ 17,084 $ 17,150 $ 63 $ 35,146 $ 35,209 |
Estimated Fair Value of Our Investments in Available for Sale Marketable Securities Classified | The following table summarizes the estimated fair value of our investments in available for sale marketable securities classified by the contractual maturity date of the securities. March 31, 2017 (in thousands) Due within 1 year $ 8,243 Due in 1 year through 5 years 8,841 Total $ 17,084 |
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 March 31, 2017, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: At March 31, 2017 Less than 12 Months Fair Value Unrealized Loss (in thousands) US Corporate $ 5,165 $ (7 ) Residential mortgage-backed 3,495 (11 ) Government—US 3,486 (16 ) Total $ 12,146 $ (34 ) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands, except per share amounts) Numerator - basic and diluted: Net loss $ (6,624 ) $ (4,230 ) $ (27,478 ) $ (13,722 ) Denominator: Shares used in computing basic and diluted net loss per share attributable to common stockholders 37,965 38,101 37,891 37,959 Basic and diluted net loss per share attributable to common stockholders $ (0.17 ) $ (0.11 ) $ (0.73 ) $ (0.36 ) |
Operations by Segments and Ge21
Operations by Segments and Geographic Areas (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Segment information for the three and nine months ended March 31, 2017 and 2016 according to the segment descriptions above, is as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Segment revenue: Payments and Transactional Documents $ 24,107 $ 28,753 $ 73,768 $ 85,139 Hosted Solutions 39,248 34,281 112,837 103,038 Digital Banking 18,294 17,773 55,944 52,047 Other 4,450 5,426 13,362 14,938 Total segment revenue $ 86,099 $ 86,233 $ 255,911 $ 255,162 Segment measure of profit (loss): Payments and Transactional Documents $ 7,451 $ 8,700 $ 22,644 $ 24,852 Hosted Solutions 7,116 5,461 19,347 18,317 Digital Banking 388 1,512 1,456 4,630 Other (570 ) 285 (1,928 ) (597 ) Total measure of segment profit $ 14,385 $ 15,958 $ 41,519 $ 47,202 |
Reconciliation of Measure of Segment Profit to GAAP Loss Before Income Taxes | A reconciliation of the measure of segment profit to GAAP loss before income taxes is as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Total measure of segment profit $ 14,385 $ 15,958 $ 41,519 $ 47,202 Less: Amortization of acquired intangible assets (6,006 ) (7,226 ) (18,381 ) (21,720 ) Goodwill impairment charge — — (7,529 ) — Stock-based compensation expense (7,354 ) (7,628 ) (24,209 ) (23,094 ) Acquisition and integration related expenses (501 ) (305 ) (2,272 ) (574 ) Restructuring expenses (561 ) (48 ) (561 ) (922 ) Minimum pension liability and related adjustments (264 ) (66 ) (805 ) (140 ) Global ERP system implementation costs (2,076 ) (1,040 ) (6,673 ) (1,819 ) Other expense, net (4,479 ) (3,882 ) (12,596 ) (11,409 ) Loss before income taxes $ (6,856 ) $ (4,237 ) $ (31,507 ) $ (12,476 ) |
Schedule of Segment Depreciation and Amortization Expense Included in Segment Measure of Profit | The following depreciation and amortization expense amounts are included in the segment measure of profit: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Depreciation and other amortization expense: Payments and Transactional Documents $ 803 $ 722 $ 2,357 $ 2,129 Hosted Solutions 2,274 1,540 5,974 4,429 Digital Banking 1,498 1,074 4,304 2,879 Other 109 128 290 352 Total depreciation and other amortization expense $ 4,684 $ 3,464 $ 12,925 $ 9,789 |
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 for which the point of sale was North America. Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) North America $ 54,073 $ 49,328 $ 160,785 $ 147,290 United Kingdom 20,096 24,592 60,240 72,226 Continental Europe 9,475 9,728 28,009 28,863 Asia-Pacific and Middle East 2,455 2,585 6,877 6,783 Total revenues from unaffiliated customers $ 86,099 $ 86,233 $ 255,911 $ 255,162 |
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: At March 31, At June 30, 2017 2016 (in thousands) Long-lived assets: North America $ 59,642 $ 55,208 United Kingdom 8,212 8,499 Continental Europe 1,933 1,924 Asia-Pacific and Middle East 2,067 2,080 Total long-lived assets $ 71,854 $ 67,711 |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 Gross Carrying Accumulated Net Carrying Value Weighted Average (in thousands) (in years) Amortized intangible assets: Customer related $ 186,977 $ (117,503 ) $ 69,474 8.9 Core technology 129,373 (71,092 ) 58,281 9.0 Other intangible assets 20,323 (15,025 ) 5,298 6.2 Capitalized software development costs 15,549 (2,807 ) 12,742 5.3 Total $ 352,222 $ (206,427 ) $ 145,795 Unamortized intangible assets: Goodwill 190,436 Total intangible assets $ 336,231 As of June 30, 2016 Gross Carrying Accumulated Net Carrying Value Weighted Average (in thousands) (in years) Amortized intangible assets: Customer related $ 190,549 $ (110,356 ) $ 80,193 9.6 Core technology 130,434 (64,591 ) 65,843 9.5 Other intangible assets 20,469 (13,320 ) 7,149 6.1 Capitalized software development costs 12,993 (1,248 ) 11,745 6.0 Total $ 354,445 $ (189,515 ) $ 164,930 Unamortized intangible assets: Goodwill 202,028 Total intangible assets $ 366,958 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for fiscal year 2017 and subsequent fiscal years for acquired intangible assets is as follows: (in thousands) 2017 $ 24,205 2018 20,271 2019 18,352 2020 16,292 2021 14,760 2022 and thereafter 57,554 |
Schedule of Rollforward of Goodwill Balances, by Reportable Segment | The following table represents a rollforward of our goodwill balances, by reportable segment, as follows: Payments and Hosted Solutions Digital Banking Other Total (in thousands) Balance at June 30, 2016 $ 60,852 $ 89,573 $ 35,880 $ 15,723 $ 202,028 Goodwill impairment — — — (7,529 ) (7,529 ) Impact of foreign currency translation (1,156 ) (2,907 ) — — (4,063 ) Balance at March 31, 2017 $ 59,696 $ 86,666 $ 35,880 $ 8,194 $ 190,436 |
Software Developed Other Than For Internal Use [Member] | |
Schedule of Estimated Amortization Expense | Estimated amortization expense for fiscal year 2017 and subsequent fiscal years for capitalized software development costs using a straight-line methodology is stated below. (in thousands) 2017 $ 2,140 2018 2,331 2019 2,331 2020 2,331 2021 2,331 2022 and thereafter 2,331 |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Net Carrying Amount of Notes | The net carrying amount of the Notes at March 31, 2017 was as follows (in thousands) Principal amount $ 189,750 Unamortized discount (8,820 ) Unamortized debt issuance costs (789 ) Net carrying value $ 180,141 |
Total Interest Expense Related to Notes | The following table sets forth total interest expense related to the Notes: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) (in thousands) Contractual interest expense (cash) $ 711 $ 712 $ 2,135 $ 2,135 Amortization of debt discount (non-cash) 3,188 2,969 9,396 8,751 Amortization of debt issue costs (non-cash) 296 296 888 888 $ 4,195 $ 3,977 $ 12,419 $ 11,774 Effective interest rate of the liability component 8.22 % 7.76 % 8.10 % 7.65 % |
Postretirement and Other Empl24
Postretirement and Other Employee Benefits (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Costs for the Swiss Pension Plan | Net periodic pension costs for the Swiss pension plan include the following components: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in thousands) Components of net periodic cost Service cost $ 729 $ 562 $ 2,211 $ 1,703 Interest cost 31 119 94 362 Prior service credit (22 ) (22 ) (67 ) (67 ) Net actuarial loss 160 17 486 52 Expected return on plan assets (218 ) (198 ) (661 ) (601 ) Net periodic cost $ 680 $ 478 $ 2,063 $ 1,449 |
Recent Accounting Pronounceme25
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred debt issuance cost | $ 800 | $ 1,700 |
Deferred tax assets | 6,244 | |
Deferred income taxes | $ 15,008 | 28,147 |
Adjustments for New Accounting Principle, Early Adoption [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred tax assets | (6,200) | |
Deferred income taxes | $ (6,200) |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities, current | $ 17,084 | $ 35,146 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds (cash and cash equivalents) | 327 | 117 |
Total available for sale debt securities, current | 17,084 | 35,146 |
Fair Value, Measurements, Recurring [Member] | US Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 6,812 | 9,580 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 4,226 | 9,604 |
Fair Value, Measurements, Recurring [Member] | Government - US [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 6,046 | 15,962 |
Fair Value, Measurements, 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) | 327 | 117 |
Total available for sale debt securities, current | 17,084 | 35,146 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | US Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 6,812 | 9,580 |
Fair Value, Measurements, 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 debt securities | 4,226 | 9,604 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Government - US [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | $ 6,046 | $ 15,962 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2016 | Dec. 12, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate on Convertible Senior Notes | 1.50% | ||
Certain other investments accounted for at cost | $ 7,700 | $ 7,700 | |
Issuance of convertible notes | $ 133,300 | ||
Carrying value of convertible senior notes | 180,141 | ||
Estimated fair value of convertible debt | 191,700 | ||
Israeli Severance Arrangements [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of assets related to deposits | $ 1,500 | $ 1,400 | |
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] | |||
Interest rate on Convertible Senior Notes | 1.50% | ||
Maturity date of Convertible Senior Notes | Dec. 1, 2017 | ||
Convertible senior notes issued | $ 189,750 |
Fair Value - Marketable Securit
Fair Value - Marketable Securities by Major Security Type (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Marketable Securities [Line Items] | ||
Held to Maturity | $ 66 | $ 63 |
Available for Sale | 17,084 | 35,146 |
Total | 17,150 | 35,209 |
Corporate and Other Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Held to Maturity | 66 | 63 |
Available for Sale | 17,084 | 35,146 |
Total | $ 17,150 | $ 35,209 |
Fair Value - Estimated Fair Val
Fair Value - Estimated Fair Value of Our Investments in Available for Sale Marketable Securities Classified (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value Disclosures [Abstract] | ||
Due within 1 year | $ 8,243 | |
Due in 1 year through 5 years | 8,841 | |
Total | $ 17,084 | $ 35,146 |
Fair Value - Summary of Gross U
Fair Value - Summary of Gross Unrealized Losses and Fair Values of Available for Sale Investments (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Unrealized Loss | $ (34) |
Less than 12 Months, Fair Value | 12,146 |
US Corporate [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Unrealized Loss | (7) |
Less than 12 Months, Fair Value | 5,165 |
Residential Mortgage-Backed [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Unrealized Loss | (11) |
Less than 12 Months, Fair Value | 3,495 |
Government - US [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Unrealized Loss | (16) |
Less than 12 Months, Fair Value | $ 3,486 |
Other Investments - Additional
Other Investments - Additional Information (Detail) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) | Mar. 31, 2017 | Dec. 31, 2015 |
Other Assets [Member] | ||
Schedule of Investments [Line Items] | ||
Variable interest entity investment, maximum loss exposure | $ 3,500,000 | |
Preferred Stock [Member] | ||
Schedule of Investments [Line Items] | ||
Investments in a privately held company | $ 3,500,000 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator - basic and diluted: | ||||
Net loss | $ (6,624) | $ (4,230) | $ (27,478) | $ (13,722) |
Denominator: | ||||
Shares used in computing basic and diluted net loss per share attributable to common stockholders | 37,965 | 38,101 | 37,891 | 37,959 |
Basic and diluted net loss per share attributable to common stockholders | $ (0.17) | $ (0.11) | $ (0.73) | $ (0.36) |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share | 2,700,000 | 3,000,000 | 3,000,000 | 3,100,000 |
Number of shares purchased through issue of warrants | 6,300,000 | 6,300,000 | ||
Common stock exercise price | $ 40.04 | $ 40.04 |
Operations by Segments and Ge34
Operations by Segments and Geographic Areas - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Operations by Segments and Ge35
Operations by Segments and Geographic Areas - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment revenue: | ||||
Total segment revenue | $ 86,099 | $ 86,233 | $ 255,911 | $ 255,162 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | (2,377) | (355) | (18,911) | (1,067) |
Operating Segments [Member] | ||||
Segment measure of profit (loss): | ||||
Total measure of segment profit | 14,385 | 15,958 | 41,519 | 47,202 |
Payments and Transactional Documents [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 24,107 | 28,753 | 73,768 | 85,139 |
Payments and Transactional Documents [Member] | Operating Segments [Member] | ||||
Segment measure of profit (loss): | ||||
Total measure of segment profit | 7,451 | 8,700 | 22,644 | 24,852 |
Hosted Solutions [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 39,248 | 34,281 | 112,837 | 103,038 |
Hosted Solutions [Member] | Operating Segments [Member] | ||||
Segment measure of profit (loss): | ||||
Total measure of segment profit | 7,116 | 5,461 | 19,347 | 18,317 |
Digital Banking [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 18,294 | 17,773 | 55,944 | 52,047 |
Digital Banking [Member] | Operating Segments [Member] | ||||
Segment measure of profit (loss): | ||||
Total measure of segment profit | 388 | 1,512 | 1,456 | 4,630 |
Other [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 4,450 | 5,426 | 13,362 | 14,938 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | $ (570) | $ 285 | $ (1,928) | $ (597) |
Operations by Segments and Ge36
Operations by Segments and Geographic Areas - Reconciliation of Measure of Segment Profit to GAAP Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total measure of segment profit | $ (2,377) | $ (355) | $ (18,911) | $ (1,067) |
Less: | ||||
Amortization of acquired intangible assets | (6,006) | (7,226) | (18,381) | (21,720) |
Goodwill impairment charge | (7,529) | |||
Stock-based compensation expense | (24,209) | (23,094) | ||
Restructuring expenses | (600) | |||
Other expense, net | (4,479) | (3,882) | (12,596) | (11,409) |
Loss before income taxes | (6,856) | (4,237) | (31,507) | (12,476) |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total measure of segment profit | 14,385 | 15,958 | 41,519 | 47,202 |
Segment Reconciling Items [Member] | ||||
Less: | ||||
Amortization of acquired intangible assets | (6,006) | (7,226) | (18,381) | (21,720) |
Goodwill impairment charge | (7,529) | |||
Stock-based compensation expense | (7,354) | (7,628) | (24,209) | (23,094) |
Acquisition and integration related expenses | (501) | (305) | (2,272) | (574) |
Restructuring expenses | (561) | (48) | (561) | (922) |
Minimum pension liability and related adjustments | (264) | (66) | (805) | (140) |
Global ERP system implementation costs | (2,076) | (1,040) | (6,673) | (1,819) |
Other expense, net | $ (4,479) | $ (3,882) | $ (12,596) | $ (11,409) |
Operations by Segments and Ge37
Operations by Segments and Geographic Areas - Schedule of Segment Depreciation and Amortization Expense Included in Segment Measure of Profit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | $ 4,684 | $ 3,464 | $ 12,925 | $ 9,789 |
Payments and Transactional Documents [Member] | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 803 | 722 | 2,357 | 2,129 |
Hosted Solutions [Member] | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 2,274 | 1,540 | 5,974 | 4,429 |
Digital Banking [Member] | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 1,498 | 1,074 | 4,304 | 2,879 |
Other [Member] | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | $ 109 | $ 128 | $ 290 | $ 352 |
Operations by Segments and Ge38
Operations by Segments and Geographic Areas - Schedule of Revenue Based on Point of Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | $ 86,099 | $ 86,233 | $ 255,911 | $ 255,162 |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | 54,073 | 49,328 | 160,785 | 147,290 |
United Kingdom [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | 20,096 | 24,592 | 60,240 | 72,226 |
Continental Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | 9,475 | 9,728 | 28,009 | 28,863 |
Asia-Pacific and Middle East [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | $ 2,455 | $ 2,585 | $ 6,877 | $ 6,783 |
Operations by Industry Segments
Operations by Industry Segments and Geographic Areas - Schedule of Long-Lived Assets, Excluding Deferred Tax Assets and Intangible Assets, Based on Geographic Designation (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Long-lived assets | ||
Long-lived assets | $ 71,854 | $ 67,711 |
North America [Member] | ||
Long-lived assets | ||
Long-lived assets | 59,642 | 55,208 |
United Kingdom [Member] | ||
Long-lived assets | ||
Long-lived assets | 8,212 | 8,499 |
Continental Europe [Member] | ||
Long-lived assets | ||
Long-lived assets | 1,933 | 1,924 |
Asia-Pacific and Middle East [Member] | ||
Long-lived assets | ||
Long-lived assets | $ 2,067 | $ 2,080 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Contingency [Line Items] | ||||
Income tax (benefit) expense | $ (232) | $ (7) | $ (4,029) | $ 1,246 |
Unrecognized tax benefits decrease as a result of the expiration of certain statutes | 300 | |||
Valuation allowance against certain deferred tax assets | $ 35,800 | 35,800 | ||
United Kingdom [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Discrete tax benefit | $ 100 | |||
Switzerland [Member] | Intellinx Ltd [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Discrete income tax benefit from impairment | $ 4,500 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill impairment charge | $ 7,529 | |
Intellinx Ltd [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Percentage of excess fair value over carrying value | 14.00% |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Schedule of Intangible Assets Subject to Amortization and for Intangible Assets Not Subject to Amortization (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 352,222 | $ 354,445 |
Accumulated Amortization | (206,427) | (189,515) |
Net Carrying Value | 145,795 | 164,930 |
Goodwill | 190,436 | 202,028 |
Total intangible assets | 336,231 | 366,958 |
Customer Related [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 186,977 | 190,549 |
Accumulated Amortization | (117,503) | (110,356) |
Net Carrying Value | $ 69,474 | $ 80,193 |
Weighted Average Remaining Life | 8 years 10 months 24 days | 9 years 7 months 6 days |
Core Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 129,373 | $ 130,434 |
Accumulated Amortization | (71,092) | (64,591) |
Net Carrying Value | $ 58,281 | $ 65,843 |
Weighted Average Remaining Life | 9 years | 9 years 6 months |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 20,323 | $ 20,469 |
Accumulated Amortization | (15,025) | (13,320) |
Net Carrying Value | $ 5,298 | $ 7,149 |
Weighted Average Remaining Life | 6 years 2 months 12 days | 6 years 1 month 6 days |
Software Developed Other Than For Internal Use [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 15,549 | $ 12,993 |
Accumulated Amortization | (2,807) | (1,248) |
Net Carrying Value | $ 12,742 | $ 11,745 |
Weighted Average Remaining Life | 5 years 3 months 18 days | 6 years |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 24,205 |
2,018 | 20,271 |
2,019 | 18,352 |
2,020 | 16,292 |
2,021 | 14,760 |
2022 and thereafter | 57,554 |
Software Developed Other Than For Internal Use [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | 2,140 |
2,018 | 2,331 |
2,019 | 2,331 |
2,020 | 2,331 |
2,021 | 2,331 |
2022 and thereafter | $ 2,331 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Schedule of Rollforward of Goodwill Balances, by Reportable Segment (Detail) $ in Thousands | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 202,028 |
Goodwill impairment | (7,529) |
Impact of foreign currency translation | (4,063) |
Ending Balance | 190,436 |
Payments and Transactional Documents [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 60,852 |
Impact of foreign currency translation | (1,156) |
Ending Balance | 59,696 |
Hosted Solutions [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 89,573 |
Impact of foreign currency translation | (2,907) |
Ending Balance | 86,666 |
Digital Banking [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 35,880 |
Ending Balance | 35,880 |
Other [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 15,723 |
Goodwill impairment | (7,529) |
Ending Balance | $ 8,194 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Restructuring expenses | $ 0.6 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) - USD ($) | Dec. 12, 2012 | Dec. 31, 2012 | Mar. 31, 2017 | Mar. 31, 2017 | Jun. 30, 2018 |
Debt Instrument [Line Items] | |||||
Interest rate on Convertible Senior Notes | 1.50% | ||||
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 | ||||
Warrant expiration period | 150 days | ||||
1.50% Convertible Senior Notes Maturing on December 1, 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible notes conversion amount in multiples | $ 1,000 | ||||
Consecutive trading days | 30 days | ||||
Common stock minimum trading days | 20 days | ||||
Percentage of common stock conversion price | 130.00% | ||||
Initial conversion rate per $1,000 principal amount | 33.3042 | 33.3042 | |||
Initial conversion price per share | $ 30.03 | $ 30.03 | |||
1.50% Convertible Senior Notes Maturing on December 1, 2017 [Member] | Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument term (years) | 5 years | ||||
Aggregate principal amount of Convertible Senior Notes | $ 189,750,000 | $ 189,750,000 | |||
Interest rate on Convertible Senior Notes | 1.50% | 1.50% | |||
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 | $ 1,000 | |||
Interest rate per annum | 0.25% | 0.25% | |||
Estimated fair value of the contingent interest feature of the notes | $ 0 | $ 0 | |||
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 | ||||
Warrants [Member] | |||||
Debt Instrument [Line Items] | |||||
Warrants exercisable beginning | Mar. 1, 2018 | ||||
Warrants exercisable ending | Oct. 18, 2018 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit agreement date | Dec. 9, 2016 | ||||
Debt instrument term (years) | 5 years | ||||
Credit facility, expiration date | Dec. 8, 2021 | ||||
Percentage of shares of capital stock pledged as guarantee | 65.00% | ||||
Revolving Credit Facility [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility interest on borrowings, percentage added to rate | 1.75% | ||||
Revolving Credit Facility [Member] | Base Rate Plus [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility interest on borrowings, percentage added to rate | 0.75% | ||||
Portion at Other than Fair Value Measurement [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of Convertible Senior Notes | $ 189,800,000 | ||||
Maximum [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount borrowed under credit facility | $ 300,000,000 | 300,000,000 | |||
Additional borrowing capacity | $ 150,000,000 | $ 150,000,000 | |||
Consolidated Interest Coverage Ratio | 3.75% | 3.75% | |||
Maximum [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Availability under Credit Facility | $ 20,000,000 | $ 20,000,000 | |||
Maximum [Member] | Revolving Credit Facility [Member] | Swing Line Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Availability under Credit Facility | $ 20,000,000 | $ 20,000,000 | |||
Maximum [Member] | Revolving Credit Facility [Member] | Eurodollar Rate Plus [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility interest on borrowings, percentage added to rate | 2.25% | ||||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate Plus [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility interest on borrowings, percentage added to rate | 1.25% | ||||
Minimum [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated Interest Coverage Ratio | 3.00% | 3.00% | |||
Minimum [Member] | Revolving Credit Facility [Member] | Eurodollar Rate Plus [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility interest on borrowings, percentage added to rate | 1.50% | ||||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate Plus [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility interest on borrowings, percentage added to rate | 0.50% | ||||
Minimum [Member] | Step Down [Member] | Revolving Credit Facility [Member] | Scenario, forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated Interest Coverage Ratio | 3.50% |
Indebtedness - Net Carrying Amo
Indebtedness - Net Carrying Amount of Notes (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
Net carrying value | $ 180,141 |
1.50% Convertible Senior Notes Maturing on December 1, 2017 [Member] | Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Principal amount | 189,750 |
Unamortized discount | (8,820) |
Unamortized debt issuance costs | $ (789) |
Indebtedness - Total Interest E
Indebtedness - Total Interest Expense Related to Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Amortization of debt discount (non-cash) | $ 9,396 | $ 8,751 | ||
Amortization of debt issue costs (non-cash) | 1,022 | 888 | ||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense (cash) | $ 711 | $ 712 | 2,135 | 2,135 |
Amortization of debt discount (non-cash) | 3,188 | 2,969 | 9,396 | 8,751 |
Amortization of debt issue costs (non-cash) | 296 | 296 | 888 | 888 |
Total interest expense | $ 4,195 | $ 3,977 | $ 12,419 | $ 11,774 |
Effective interest rate of the liability component | 8.22% | 7.76% | 8.10% | 7.65% |
Postretirement and Other Empl49
Postretirement and Other Employee Benefits - Components of Net Periodic Pension Costs for the Swiss Pension Plan (Detail) - Swiss Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Components of net periodic cost | ||||
Service cost | $ 729 | $ 562 | $ 2,211 | $ 1,703 |
Interest cost | 31 | 119 | 94 | 362 |
Prior service credit | (22) | (22) | (67) | (67) |
Net actuarial loss | 160 | 17 | 486 | 52 |
Expected return on plan assets | (218) | (198) | (661) | (601) |
Net periodic cost | $ 680 | $ 478 | $ 2,063 | $ 1,449 |