Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | BOTTOMLINE TECHNOLOGIES INC /DE/ | |
Entity Central Index Key | 0001073349 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | EPAY | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 43,500,999 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Current assets: | ||||||
Cash and cash equivalents | $ 79,475 | $ 121,860 | $ 92,101 | |||
Cash held for customers | 4,305 | 2,753 | 2,907 | |||
Marketable securities | 8,515 | 10,012 | ||||
Accounts receivable net of allowances for doubtful accounts of $1,013 at March 31, 2019 and $996 at June 30, 2018 | 76,240 | 74,305 | ||||
Prepaid expenses and other current assets | 32,111 | 19,781 | ||||
Total current assets | 200,646 | 228,711 | ||||
Property and equipment, net | 54,696 | 28,895 | ||||
Goodwill | 204,167 | 200,024 | ||||
Intangible assets, net | 168,819 | 161,785 | ||||
Other assets | 31,610 | 16,553 | ||||
Total assets | 659,938 | 635,968 | ||||
Current liabilities: | ||||||
Accounts payable | 11,530 | 10,251 | ||||
Accrued expenses and other current liabilities | 32,257 | 34,994 | ||||
Customer account liabilities | 4,305 | 2,753 | ||||
Deferred revenue | 80,082 | 75,356 | ||||
Total current liabilities | 128,174 | 123,354 | ||||
Borrowings under credit facility | 110,000 | 150,000 | ||||
Deferred revenue, non-current | 18,722 | 23,371 | ||||
Deferred income taxes | 8,311 | 8,367 | ||||
Other liabilities | 20,398 | 19,944 | ||||
Total liabilities | 285,605 | 325,036 | ||||
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—46,726 at March 31, 2019 and 44,834 at June 30, 2018; outstanding shares—41,046 at March 31, 2019 and 39,028 at June 30, 2018 | 47 | 45 | ||||
Additional paid-in-capital | 711,558 | 678,549 | ||||
Accumulated other comprehensive loss | (35,200) | (30,633) | ||||
Treasury stock: 5,680 shares at March 31, 2019 and 5,806 shares at June 30, 2018, at cost | (127,095) | (129,914) | ||||
Accumulated deficit | (174,977) | (207,115) | ||||
Total stockholders' equity | 374,333 | $ 360,845 | 310,932 | $ 297,788 | $ 281,950 | $ 261,956 |
Total liabilities and stockholders' equity | $ 659,938 | $ 635,968 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances for doubtful accounts and returns | $ 1,013 | $ 996 |
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 | 46,726,000 | 44,834,000 |
Common Stock, Outstanding shares | 41,046,000 | 39,028,000 |
Treasury stock, shares | 5,680,000 | 5,806,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Revenues: | |||||
Revenue | $ 106,438 | $ 101,136 | $ 313,721 | $ 287,627 | |
Cost of revenues: | |||||
Total cost of revenues | 45,713 | 45,795 | 135,824 | 127,529 | |
Gross profit | 60,725 | 177,897 | |||
Operating expenses: | |||||
Sales and marketing | 25,165 | 22,465 | 70,772 | 63,255 | |
Product development and engineering | 16,887 | 14,179 | 50,267 | 41,981 | |
General and administrative | 13,175 | 12,763 | 38,944 | 35,589 | |
Amortization of acquisition-related intangible assets | 5,230 | 5,818 | 15,809 | 16,708 | |
Total operating expenses | 60,457 | 55,225 | 175,792 | 157,533 | |
Income from operations | 268 | 116 | 2,105 | 2,565 | |
Other expense, net | (695) | (1,111) | (2,334) | (8,751) | |
Loss before income taxes | (427) | (995) | (229) | (6,186) | |
Income tax benefit (provision) | 1,251 | (7) | 6,104 | 4,031 | $ (4,100) |
Net income (loss) | $ 824 | $ (1,002) | $ 5,875 | $ (2,155) | |
Net income (loss) per share: | |||||
Basic | $ 0.02 | $ (0.03) | $ 0.15 | $ (0.06) | |
Diluted | $ 0.02 | $ (0.03) | $ 0.14 | $ (0.06) | |
Shares used in computing net income (loss) per share: | |||||
Basic | 40,911 | 38,348 | 40,412 | 38,055 | |
Diluted | 41,625 | 38,348 | 41,650 | 38,055 | |
Other comprehensive income (loss), net of tax: | |||||
Unrealized gain (loss) on available for sale securities | $ 5 | $ (4) | $ 11 | $ (7) | |
Unrealized gain (loss) on interest rate hedging transactions | (841) | 1,004 | (1,952) | 1,373 | |
Minimum pension liability adjustments | 18 | (56) | (38) | 86 | |
Foreign currency translation adjustments | 1,322 | 5,652 | (2,588) | 7,798 | |
Other comprehensive income (loss), net of tax: | 504 | 6,596 | (4,567) | 9,250 | |
Comprehensive income (loss) | 1,328 | 5,594 | 1,308 | 7,095 | |
Subscriptions and Transactions [Member] | |||||
Revenues: | |||||
Revenue | 75,502 | 67,378 | 216,558 | 191,279 | |
Cost of revenues: | |||||
Cost of revenue | 31,623 | 30,771 | 94,644 | 85,404 | |
Software Licenses [Member] | |||||
Revenues: | |||||
Revenue | 3,802 | 3,134 | 13,979 | 8,119 | |
Cost of revenues: | |||||
Cost of revenue | 226 | 233 | 667 | 632 | |
Service and Maintenance [Member] | |||||
Revenues: | |||||
Revenue | 25,856 | 29,476 | 80,047 | 85,251 | |
Cost of revenues: | |||||
Cost of revenue | 12,818 | 13,861 | 38,052 | 39,195 | |
Product and Service, Other [Member] | |||||
Revenues: | |||||
Revenue | 1,278 | 1,148 | 3,137 | 2,978 | |
Cost of revenues: | |||||
Cost of revenue | $ 1,046 | $ 930 | $ 2,461 | $ 2,298 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] |
Beginning balance at Jun. 30, 2017 | $ 261,956 | $ 43 | $ 624,001 | $ (32,325) | $ (113,071) | $ (216,692) |
Beginning balances, shares at Jun. 30, 2017 | 42,797 | 5,354 | ||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 3,356 | 236 | $ 3,120 | |||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options, shares | 53 | (143) | ||||
Vesting of Restricted stock awards, shares | 878 | |||||
Stock compensation plan expense | 25,132 | 25,132 | ||||
Settlement of conversion premium upon maturity of the Notes | $ 1 | (1) | ||||
Settlement of conversion premium upon maturity of the Notes, shares | 588 | |||||
Settlement of note hedges | 19,963 | $ (19,963) | ||||
Settlement of note hedges, shares | 595 | |||||
Minimum pension liability adjustments, net of tax | 86 | 86 | ||||
Net income (loss) | (2,155) | (2,155) | ||||
Cumulative effect of adoption of updated revenue recognition standard at Jun. 30, 2017 | 249 | 249 | ||||
Unrealized gain (loss) on available for sale securities, net of tax | (7) | (7) | ||||
Unrealized gain (loss) on interest rate hedging transactions | 1,373 | 1,373 | ||||
Foreign currency translation adjustment | 7,798 | 7,798 | ||||
Ending balance at Mar. 31, 2018 | 297,788 | $ 44 | 669,331 | (23,075) | $ (129,914) | (218,598) |
Ending balance, shares at Mar. 31, 2018 | 44,316 | 5,806 | ||||
Beginning balance at Dec. 31, 2017 | 281,950 | $ 44 | 660,701 | (29,671) | $ (131,528) | (217,596) |
Beginning balances, shares at Dec. 31, 2017 | 44,075 | 5,878 | ||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 1,652 | 38 | $ 1,614 | |||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options, shares | 24 | (72) | ||||
Vesting of Restricted stock awards, shares | 217 | |||||
Stock compensation plan expense | 8,592 | 8,592 | ||||
Minimum pension liability adjustments, net of tax | (56) | (56) | ||||
Net income (loss) | (1,002) | (1,002) | ||||
Unrealized gain (loss) on available for sale securities, net of tax | (4) | (4) | ||||
Unrealized gain (loss) on interest rate hedging transactions | 1,004 | 1,004 | ||||
Foreign currency translation adjustment | 5,652 | 5,652 | ||||
Ending balance at Mar. 31, 2018 | 297,788 | $ 44 | 669,331 | (23,075) | $ (129,914) | (218,598) |
Ending balance, shares at Mar. 31, 2018 | 44,316 | 5,806 | ||||
Beginning balance at Jun. 30, 2018 | 310,932 | $ 45 | 678,549 | (30,633) | $ (129,914) | (207,115) |
Beginning balances, shares at Jun. 30, 2018 | 44,834 | 5,806 | ||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 3,856 | $ 1 | 1,036 | $ 2,819 | ||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options, shares | 40 | (126) | ||||
Vesting of Restricted stock awards, shares | 920 | |||||
Stock compensation plan expense | 31,978 | 31,978 | ||||
Warrant settlements | (4) | $ 1 | (5) | |||
Warrant settlements, shares | 932 | |||||
Minimum pension liability adjustments, net of tax | (38) | (38) | ||||
Net income (loss) | 5,875 | 5,875 | ||||
Cumulative effect of adoption of updated revenue recognition standard at Jun. 30, 2018 | 26,263 | 26,263 | ||||
Unrealized gain (loss) on available for sale securities, net of tax | 11 | 11 | ||||
Unrealized gain (loss) on interest rate hedging transactions | (1,952) | (1,952) | ||||
Foreign currency translation adjustment | (2,588) | (2,588) | ||||
Ending balance at Mar. 31, 2019 | 374,333 | $ 47 | 711,558 | (35,200) | $ (127,095) | (174,977) |
Ending balance, shares at Mar. 31, 2019 | 46,726 | 5,680 | ||||
Beginning balance at Dec. 31, 2018 | 360,845 | $ 46 | 700,520 | (35,704) | $ (128,216) | (175,801) |
Beginning balances, shares at Dec. 31, 2018 | 46,468 | 5,730 | ||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 2,118 | $ 1 | 996 | $ 1,121 | ||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options, shares | 21 | (50) | ||||
Vesting of Restricted stock awards, shares | 237 | |||||
Stock compensation plan expense | 10,042 | $ 10,042 | ||||
Minimum pension liability adjustments, net of tax | 18 | 18 | ||||
Net income (loss) | 824 | 824 | ||||
Unrealized gain (loss) on available for sale securities, net of tax | 5 | 5 | ||||
Unrealized gain (loss) on interest rate hedging transactions | (841) | (841) | ||||
Foreign currency translation adjustment | 1,322 | 1,322 | ||||
Ending balance at Mar. 31, 2019 | $ 374,333 | $ 47 | $ 711,558 | $ (35,200) | $ (127,095) | $ (174,977) |
Ending balance, shares at Mar. 31, 2019 | 46,726 | 5,680 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income (loss) | $ 5,875 | $ (2,155) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of acquisition-related intangible assets | 15,809 | 16,708 |
Stock-based compensation plan expense | 31,906 | 25,132 |
Depreciation and other amortization | 16,767 | 14,638 |
Gain on sale of cost-method investment | (237) | |
Deferred income tax benefit | (8,284) | (5,458) |
Provision for allowances on accounts receivable | 167 | 117 |
Amortization of debt issuance costs | 311 | 819 |
Amortization of debt discount | 5,574 | |
Amortization of discount on investments | (108) | (32) |
Loss (gain) on disposal of equipment | 596 | (10) |
Loss (gain) on foreign exchange | 410 | (160) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,520) | (23,030) |
Prepaid expenses and other current assets | (3,913) | (54) |
Other assets | (1,483) | (337) |
Accounts payable | 1,485 | (50) |
Accrued expenses | (1,513) | 2,884 |
Customer account liabilities | 1,562 | (5,291) |
Deferred revenue | 7,835 | 6,053 |
Other liabilities | (650) | 175 |
Net cash provided by operating activities | 63,015 | 35,523 |
Investing activities: | ||
Acquisition of businesses and assets, net of cash and restricted cash acquired | (21,449) | (5,741) |
Proceeds from sale of cost-method investment | 237 | |
Purchases of available-for-sale securities | (7,588) | (9,935) |
Proceeds from sales of available-for-sale securities | 9,200 | 1,903 |
Capital expenditures, including capitalization of software costs | (45,725) | (14,865) |
Proceeds from disposal of property and equipment | 10 | |
Insurance proceeds received for damage to equipment | 201 | |
Net cash used in investing activities | (65,124) | (28,628) |
Financing activities: | ||
Repayment of amounts borrowed under revolving credit facility | (40,000) | (189,750) |
Amounts borrowed under revolving credit facility | 150,000 | |
Repayment of notes payable | (552) | (2,394) |
Settlement of warrants | (4) | |
Debt issuance costs related to credit facility | (597) | |
Proceeds from exercise of stock options and employee stock purchase plan | 3,856 | 3,357 |
Net cash used in financing activities | (37,297) | (38,787) |
Effect of exchange rate changes on cash | (1,427) | 2,331 |
Decrease in cash, cash equivalents and restricted cash | (40,833) | (29,561) |
Cash, cash equivalents and restricted cash at beginning of period | 124,613 | 124,569 |
Cash, cash equivalents and restricted cash at end of period | 83,780 | 95,008 |
Cash and cash equivalents at end of period | 79,475 | 92,101 |
Cash held for customers at end of period | 4,305 | 2,907 |
Cash, cash equivalents and restricted cash at end of period | 83,780 | 95,008 |
Supplemental disclosures of non-cash financing activities: | ||
Issuance of common stock upon settlement of the warrants | $ 58,451 | |
Issuance of note payable to seller in connection with acquisition | 1,836 | |
Issuance of common stock upon conversion of convertible senior notes | 19,736 | |
Receipt of common stock upon settlement of Note Hedges | $ 19,964 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2019 | |
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 and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the interim financial information have been included. Operating results for the three and nine months ended March 31, 2019 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending June 30, 2019. For further information, refer to the financial statements and footnotes included in the Annual Report on Form 10-K as filed with the Securities and Exchange Commission on August 29, 2018. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Note 2—Recent Accounting Pronouncements Recently Adopted Pronouncements Revenue Recognition: In May 2014, the Financial Accounting Standard Board (FASB) issued an accounting standard update for new revenue recognition guidance, superseding nearly all prior revenue recognition guidance. The new revenue standard outlines a single comprehensive model for accounting for revenue from contracts with customers and requires more detailed revenue disclosures. The core principle of the new standard is that revenue is to be recognized in a manner that depicts the transfer of promised goods or services to customers at amounts that reflect the consideration which the entity expects to be entitled under the arrangement. We adopted the new revenue standard on July 1, 2018 using the modified retrospective method of adoption applied to open contracts at that date and upon adoption recorded a $26.3 million decrease to our accumulated deficit balance. The adjustments we recorded at transition were composed of: (in thousands) Decrease to accounts receivable $ (1,914 ) Increase to contract assets 5,118 Decrease to deferred revenue 9,839 Increase to capitalized fulfillment costs 11,648 Increase to capitalized sales commissions 4,952 Tax effects (3,380 ) Total decrease to accumulated deficit $ 26,263 The adjustment to accounts receivable relates primarily to unbilled receivables reclassified as contract assets. The increase to contract assets relates to revenue recognized in excess of the amount billed to the customer and the right to payment contingent on conditions other than simply the passage of time, such as the completion of a related performance obligation. Adjustments to deferred revenue relate primarily to the acceleration of revenue under the new standard as compared to the previous revenue recognition standard. This largely relates to transactions where, under legacy GAAP, revenue was deferred due to a lack of vendor specific objective evidence of fair value, transactions accounted for under a combined services arrangement which resulted in revenue recognition over time, transactions that had contractually stipulated price increases that were accounted for as the increases occurred and certain contingent revenue arrangements. Adjustments to capitalized fulfillment costs and capitalized sales commissions reflect the requirement to capitalize these costs under the new standard; prior to adoption, we expensed these costs as incurred. Capitalized costs are recorded as components of our prepaid expenses and other current assets and other assets in our consolidated balance sheet. Please refer to Note 3 Revenue Recognition for discussion of the adoption of this new standard. Financial Instruments—Classification and Measurement: Statement of Cash Flows: During the nine months ended March 31, 2018, the retrospective adoption of this standard resulted in an increase in operating cash flows of approximately $5.3 million. Defined Benefit Plan Expenses: In March 2017, the FASB issued an accounting standard update that changes the income statement presentation of defined benefit plan expense by requiring separation between operating expense (for the service cost component) and non-operating expense (for all other components of net periodic defined benefit cost). Under the revised standard, the service cost component is classified consistently with other compensation costs, while all other components are reported in other expense, net. We adopted this standard retrospectively on July 1, 2018 and reclassified approximately $0.2 million and $0.5 million from income from operations to other expense, net for the three and nine months ended March 31, 2018, respectively, in our consolidated statement of comprehensive loss. Accounting Pronouncements to be Adopted Leases: Financial Instruments—Credit Losses: Goodwill Impairment: Derivatives and Hedging: Share-Based Compensation—Nonemployee Share-Based Payment Accounting: |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 3—Revenue Recognition Significant Accounting Policy Effective July 1, 2018, we adopted a new accounting standard related to revenue recognition on a modified retrospective basis to all open contracts. Other than changes in our accounting policies for revenue recognition and deferred contract costs due to the adoption of this standard, there have been no significant changes to our accounting policies as described in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018. Revenue Recognition We generate revenue from the sale of SaaS or cloud-based services inclusive of both fixed and usage-based fees, perpetual and term software licenses, professional services such as consulting and implementation services, software support and maintenance and, to a lesser extent, through the sale of hardware and supplies. We recognize revenue as we transfer goods and services to customers, at amounts we expect to receive as consideration under enforceable contractual arrangements. Revenue is recognized as we satisfy contractual performance obligations, which can occur either at a point in time or over time. For perpetual and term software licenses that do not involve significant customization and for equipment and supplies sales, we normally record revenue at a point in time. For professional services, support and maintenance, stand-ready performance obligations with respect to our hosted or SaaS solutions and for software licenses that are dependent on significant customization by us we normally record revenue over time. We recognize revenue according to a five step model that involves: • Identifying the contract (or contracts) with a customer; • Identifying the performance obligations in the contract(s); • Determining the transaction price; • Allocating the transaction price to the contractual performance obligations, and • Recognizing revenue as we satisfy the performance obligations. We consider a contract to exist when we have legally enforceable rights and obligations with a customer. Our contracts can take a variety of forms but are normally in writing and include all major commercial terms such as the goods or services we will be obligated to transfer under the arrangement, the amount the customer is obligated to pay us upon fulfillment of our obligations and the payment terms. Performance obligations in a contract are accounted for separately if they are determined to be distinct. We consider a performance obligation to be distinct if that good or service is separately identified from other items in the contract and if the customer can benefit from that performance obligation on its own or together with resources that are readily available to the customer. In assessing whether a customer can benefit from a performance obligation on its own, we consider factors such as the interdependency or interrelationship of the item with other goods or services in the contract, the complexity of any required integration or customization and the ability of the customer’s personnel or other third party providers to fulfill like goods or services. If a particular good or service is not considered to be distinct, it is combined with other performance obligations in the arrangement and revenue is recognized as the combined performance obligation is transferred to the customer. The transaction price is the amount of consideration we expect to be entitled to under a contract upon fulfillment of the performance obligations. The starting point for estimating the transaction price is the selling price stipulated in the contract, however we include in the determination of the overall transaction price an estimate of variable consideration to the extent it is probable that it will not result in a significant future reversal of revenue. Variable consideration can arise in our arrangements as a result of usage-based fees. For contracts with a long period over which usage-based fees can arise, or in contracts with customers with whom we do not have a reasonable operating history, we often constrain the amount of variable consideration included in the transaction price. We update our estimate of variable consideration at the end of each financial reporting period. We exclude from the determination of the transaction price sales and other taxes we bill to and collect from customers and remit to government authorities. Shipping and handling activities performed after the customer has obtained control of the good or service is accounted for as a fulfillment activity. The transaction price is allocated to contractual performance obligations on a relative standalone selling price basis. We normally estimate standalone selling price using the adjusted market approach, maximizing the use of observable inputs and other factors that can include: the price we charge when we sell an item separately, our internal price lists and internal pricing guidelines, cost of delivering the item and overall gross margin expectations and information about the customer or class of customer. Revenue is recorded, either at a point in time or over time, as we satisfy the performance obligations in a contract. Nature of Goods and Services Subscriptions and Transactions: We generate subscriptions and transactions revenue through the provision of hosted and SaaS-based solutions which can include contractually fixed revenue amounts as well as usage-based fees. Our SaaS arrangements consist of an obligation for us to provide continuous access to a technology solution that we host, which we account for as a stand-ready performance obligation. These contracts may also be subject to variable pricing or overage fees based on customer processing, usage or volume. We recognize revenue for fixed subscription fees ratably over the non-cancelable term of the contract, commencing on the date the customer has access to the solution. In circumstances where we meet certain requirements to allocate variable consideration to a distinct service within a series of related services, we allocate variable consideration to each distinct period of service within the series. If we do not meet those requirements, we include an estimate of variable consideration in the transaction price and recognize it ratably over the non-cancelable term of the contract. For certain of our hosted or SaaS solutions, customers are charged a fee for implementation services. In determining whether the implementation services are distinct from the hosting services we consider various factors, including the level of customization, complexity of the integration, the interdependency and interrelationship between the implementation services and the hosting services and the ability (or inability) of the customer’s personnel or other service providers to perform the services. We have concluded that the implementation services in our hosting arrangements with multiple performance obligations are not distinct and therefore we recognize fees for implementation services ratably over the non-cancelable term of the hosting contract. We license certain software on a subscription basis under contractual arrangements where customers pay a specified fee, inclusive of support and maintenance, for a time-based license right to use our software. These fees recur periodically, unless the customer opts to cancel their subscription arrangement with us. These contracts typically contain two distinct performance obligations: the software license and support and maintenance. The portion of the transaction price allocated to the license right is recognized at the point in time in which we have provided the customer access to the intellectual property and the license term has commenced. The portion of the transaction price allocated to support and maintenance is recognized ratably over the non-cancelable contract term. Software Licenses: Software licenses revenue reflects fees we charge to license software on a perpetual basis. For software licenses that do not include significant customization we recognize revenue at the point in time where the customer has obtained access to the intellectual property and the license period has commenced. Certain of our software arrangements require significant customization and modification and involve extended implementation periods. In these arrangements the professional services and software license are highly interdependent and we treat the software license and professional services as a combined performance obligation. We recognize revenue for the combined performance obligation over time and measure progress to completion based on labor hours incurred as a percentage of total expected labor hours. We believe the use of labor hours as an input measure provides a faithful depiction of the transfer of goods and services under these contracts. Support and Maintenance: Our software licenses are generally sold with post-contract support which is comprised of technical support and unspecified software upgrades. Unspecified upgrades refer to software upgrades which we make available at our discretion and from time-to-time, on a “when and as available” basis. We account for post-contract support as a stand-ready performance obligation and recognize revenue ratably over the non-cancelable contract term which is typically one year. Professional Services: Our professional services revenue is normally comprised of implementation, consulting and training services. Except for professional service performance obligations that form part of an overall, highly customized arrangement, our professional services typically represent distinct performance obligations and revenue is recognized as the services are performed. Other: Other revenue is derived from the sale of equipment and supplies and is recognized at the point in time control transfers to the customer. Disaggregation of Revenue The tables below present our revenue disaggregated by major product category and the related financial statement classification of revenue for the three and nine months ended March 31, 2019. Three Months Ended March 31, 2019 Settlement (1) Legal Spend (1) Banking Solutions Payments and Transactional Documents Healthcare (2) Other (2) Total (in thousands) Financial statement classification: Subscriptions and transactions $ 26,373 $ 18,916 $ 17,819 $ 11,749 $ 619 $ 26 $ 75,502 Software licenses 245 — 527 1,982 1 1,047 3,802 Service and maintenance 5,905 — 5,557 11,402 916 2,076 25,856 Other — — — 961 — 317 1,278 Total revenues $ 32,523 $ 18,916 $ 23,903 $ 26,094 $ 1,536 $ 3,466 $ 106,438 Nine Months Ended March 31, 2019 Settlement (1) Legal Spend (1) Banking Solutions Payments and Transactional Documents Healthcare (2) Other (2) Total (in thousands) Financial statement classification: Subscriptions and transactions $ 75,536 $ 56,461 $ 49,410 $ 33,363 $ 1,676 $ 112 $ 216,558 Software licenses 1,052 — 3,953 5,635 884 2,455 13,979 Service and maintenance 18,293 — 15,920 36,762 2,686 6,386 80,047 Other — — — 2,511 — 626 3,137 Total revenues $ 94,881 $ 56,461 $ 69,283 $ 78,271 $ 5,246 $ 9,579 $ 313,721 (1) Cloud Solutions segment (2) Other segment Remaining Performance Obligations The transaction price allocated to remaining performance obligations that are unsatisfied, or partially unsatisfied, as of March 31, 2019 represents contracted revenue that will be recognized in future periods. Our future performance obligations consist primarily of SaaS hosting/subscription obligations relating to future periods, contracted but uncompleted professional services obligations and support and maintenance obligations. The amount of revenue recognized during the three and nine months ended March 31, 2019 from performance obligations satisfied in prior periods was not significant. Revenue allocated to remaining performance obligations was $387.3 million as of March 31, 2019 of which we expect to recognize approximately $170.4 million over the next twelve months and the remainder thereafter. We exclude from our measure of remaining performance obligations amounts related to future transactional or usage-based fees for which the value of services transferred to the customer will correspond to the amount we will invoice for those services. Contract Assets and Liabilities The table below presents our accounts receivable, contract assets and deferred revenue balances as of July 1, 2018 and March 31, 2019. March 31, July 1, 2019 2018 $ Change (in thousands) Accounts receivable $ 76,240 $ 72,391 $ 3,849 Contract assets 6,129 5,118 1,011 Deferred revenue 98,804 88,888 9,916 Accounts receivable include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. Contract assets arise when we recognize revenue in excess of the amount billed to the customer and the right to payment is contingent on conditions other than simply the passage of time, such as the completion of a related performance obligation. Contract assets are classified in our consolidated balance sheets as other current assets for those contract assets with amortization periods of one year or less and other assets for contract assets with amortization periods greater than one year. Deferred revenue consists of billings or customer payments in excess of amounts recognized as revenue. For the three and nine months ended March 31, 2019, we recognized $14.6 million and $66.4 million, respectively, in revenue from amounts that were included in deferred revenue as of July 1, 2018. Contract Costs We capitalize incremental costs incurred in connection with obtaining a contract if they have a period of benefit that is greater than one year and we expect to recover the costs through future contract revenues. Incremental costs incurred to obtain a contract relate to sales commissions. We also capitalize costs incurred in fulfilling a contract when the costs relate directly to a specifically identifiable customer contract, when the costs generate or enhance resources that we will use to satisfy performance obligations in the future and when the costs are expected to be recovered through future contract revenues. Capitalized costs to obtain a contract and capitalized fulfillment costs totaled $5.5 million and $16.4 million, respectively, at March 31, 2019. Capitalized costs are amortized on a basis consistent with the transfer of the goods or services to which the asset relates. This results in capitalized costs being recognized on a ratable basis over the estimated period of future benefit, which is generally five years. We estimate the future period of benefit considering the current contract term, the impact of estimated customer renewal terms and the estimated life of the technology solution underlying the contracts. Amortization expense associated with costs of obtaining and costs of fulfilling a contract was $0.5 million and $1.0 million, respectively, for the three months ended March 31, 2019, and were recorded as components of sales and marketing expense and cost of revenues, respectively, in our unaudited consolidated statement of comprehensive income (loss). Amortization expense associated with costs of obtaining and costs of fulfilling a contract was $1.3 million and $2.5 million, respectively, for the nine months ended March 31, 2019, and were recorded as components of sales and marketing expense and cost of revenues, respectively, in our unaudited consolidated statement of comprehensive income (loss). The following tables summarize the impact of adopting the new revenue standard on our consolidated financial statements as of and for the three and nine months ended March 31, 2019: Unaudited Condensed Consolidated Balance Sheet At March 31, 2019 (in thousands, unaudited) As Reported Adjustments Balances without adoption of new revenue standard ASSETS Current assets: Cash and cash equivalents $ 79,475 $ — $ 79,475 Cash held for customers 4,305 — 4,305 Marketable securities 8,515 — 8,515 Accounts receivable, net 76,240 1,235 77,475 Prepaid expenses and other current assets 32,111 (11,158 ) 20,953 Total current assets 200,646 (9,923 ) 190,723 Property and equipment, net 54,696 — 54,696 Goodwill 204,167 — 204,167 Intangible assets, net 168,819 — 168,819 Other assets 31,610 (16,142 ) 15,468 Total assets $ 659,938 $ (26,065 ) $ 633,873 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 11,530 $ — $ 11,530 Accrued expenses and other current liabilities 32,257 — 32,257 Customer account liabilities 4,305 — 4,305 Deferred revenue 80,082 4,306 84,388 Total current liabilities 128,174 4,306 132,480 Borrowings under credit facility 110,000 — 110,000 Deferred revenue, non-current 18,722 5,224 23,946 Deferred income taxes 8,311 (456 ) 7,855 Other liabilities 20,398 — 20,398 Total liabilities 285,605 9,074 294,679 Stockholders’ equity Preferred Stock, $.001 par value — — — Common Stock, $.001 par value 47 — 47 Additional paid-in-capital 711,558 — 711,558 Accumulated other comprehensive loss (35,200 ) 91 (35,109 ) Treasury stock, at cost (127,095 ) — (127,095 ) Accumulated deficit (174,977 ) (35,230 ) (210,207 ) Total stockholders’ equity 374,333 (35,139 ) 339,194 Total liabilities and stockholders’ equity $ 659,938 $ (26,065 ) $ 633,873 Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2019 Nine Months Ended March 31, 2019 (in thousands, unaudited) As Reported Adjustments Balances without adoption of new revenue standard As Reported Adjustments Balances without adoption of new revenue standard Revenues: Subscriptions and transactions $ 75,502 $ (833 ) $ 74,669 $ 216,558 $ 393 $ 216,951 Software licenses 3,802 (180 ) 3,622 13,979 (3,562 ) 10,417 Service and maintenance 25,856 540 26,396 80,047 1,767 81,814 Other 1,278 (18 ) 1,260 3,137 (55 ) 3,082 Total revenues 106,438 (491 ) 105,947 313,721 (1,457 ) 312,264 Cost of revenues: Subscriptions and transactions 31,623 29 31,652 94,644 678 95,322 Software licenses 226 — 226 667 2 669 Service and maintenance 12,818 303 13,121 38,052 1,104 39,156 Other 1,046 12 1,058 2,461 (16 ) 2,445 Total cost of revenues 45,713 344 46,057 135,824 1,768 137,592 Gross profit 60,725 (835 ) 59,890 177,897 (3,225 ) 174,672 Operating expenses: Sales and marketing 25,165 256 25,421 70,772 621 71,393 Product development and engineering 16,887 44 16,931 50,267 222 50,489 General and administrative 13,175 — 13,175 38,944 — 38,944 Amortization of acquisition-related intangible assets 5,230 — 5,230 15,809 — 15,809 Total operating expenses 60,457 300 60,757 175,792 843 176,635 Income from operations 268 (1,135 ) (867 ) 2,105 (4,068 ) (1,963 ) Other expense, net (695 ) — (695 ) (2,334 ) — (2,334 ) Loss before income taxes (427 ) (1,135 ) (1,562 ) (229 ) (4,068 ) (4,297 ) Benefit (expense) from income taxes 1,251 839 2,090 6,104 (4,899 ) 1,205 Net income (loss) $ 824 $ (296 ) $ 528 $ 5,875 $ (8,967 ) $ (3,092 ) Net income (loss) per share: Basic $ 0.02 $ (0.01 ) $ 0.01 $ 0.15 $ (0.07 ) $ 0.08 Diluted $ 0.02 $ (0.01 ) $ 0.01 $ 0.14 $ (0.06 ) $ 0.08 Shares used in computing net income (loss) per share: Basic 40,911 — 40,911 40,412 — 40,412 Diluted 41,625 (714 ) 40,911 41,650 (1,238 ) 40,412 Other comprehensive income (loss), net of tax: Unrealized gain on available for sale securities 5 — 5 11 — 11 Unrealized gain (loss) on interest rate hedging transactions (841 ) — (841 ) (1,952 ) — (1,952 ) Minimum pension liability adjustments 18 — 18 (38 ) — (38 ) Foreign currency translation adjustments 1,322 (93 ) 1,229 (2,588 ) 92 (2,496 ) Other comprehensive income (loss), net of tax: 504 (93 ) 411 (4,567 ) 92 (4,475 ) Comprehensive income (loss) $ 1,328 $ (389 ) $ 939 $ 1,308 $ (8,875 ) $ (7,567 ) Unaudited Condensed Consolidated Statement of Cash Flows Nine Months Ended March 31, 2019 (in thousands, unaudited) As Reported Adjustments Balances without adoption of new revenue standard Operating activities: Net income (loss) $ 5,875 $ (8,967 ) $ (3,092 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of acquisition-related intangible assets 15,809 — 15,809 Stock-based compensation plan expense 31,906 11 31,917 Depreciation and other amortization 16,767 — 16,767 Gain on sale of cost-method investment (237 ) — (237 ) Deferred income tax benefit (8,284 ) 4,899 (3,385 ) Provision for allowances on accounts receivable 167 — 167 Amortization of debt issuance costs 311 — 311 Amortization of discount on investments (108 ) — (108 ) Loss (gain) on disposal of equipment 596 — 596 Loss (gain) on foreign exchange 410 (8 ) 402 Changes in operating assets and liabilities: Accounts receivable (3,520 ) 663 (2,857 ) Prepaid expenses and other current assets (3,913 ) 2,724 (1,189 ) Other assets (1,483 ) 943 (540 ) Accounts payable 1,485 — 1,485 Accrued expenses (1,513 ) — (1,513 ) Customer account liabilities 1,562 — 1,562 Deferred revenue 7,835 (265 ) 7,570 Other liabilities (650 ) — (650 ) Net cash provided by operating activities $ 63,015 $ — $ 63,015 The following summarizes the significant adjustments resulting from our adoption of the new revenue recognition standard compared to what would have been recorded in our financial statements had we continued to apply the provisions of legacy GAAP: Consolidated Balance Sheet Adjustments to prepaid expenses and other current assets and other assets relate to costs to fulfill and costs to obtain a customer contract which are capitalized under the new revenue standard and expensed as incurred under legacy GAAP. Adjustments to deferred revenue reflect the acceleration of revenue recognition for certain transactions that required longer term revenue deferral under legacy GAAP. Consolidated Statement of Comprehensive Income (Loss) Adjustments to software license revenues reflect the requirement under legacy GAAP to defer recognition of revenue when vendor specific evidence of fair value could not be established. The new revenue standard does not have a similar requirement and instead results in the recognition of software license revenue when that performance obligation has been transferred to the customer. In addition, the new revenue standard changed the methodology for allocating the transaction price between performance obligations, which had the impact of increasing software revenue. The decrease in our deferred tax benefit under legacy GAAP is driven by the overall decrease in net income and the inability to recognize certain interim tax benefits. Consolidated Statement of Cash Flows The adoption of the new revenue standard had no impact on our total cash flows or the net cash provided by operating activities. The adjustments reflect offsetting shifts in the components of operating cash flow driven by changes to individual balance sheet accounts and the change in our net income (loss). |
Fair Value
Fair Value | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 4—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, 2019 and June 30, 2018, our assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2019 June 30, 2018 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) Assets Money market funds (cash and cash equivalents) $ 1,769 $ — $ — $ 1,769 $ 154 $ — $ — $ 154 Available for sale securities—Debt U.S. Corporate $ — $ 998 $ — $ 998 $ — $ 3,467 $ — $ 3,467 Government—U.S. — 7,455 — 7,455 — 6,480 — 6,480 Total available for sale securities $ — $ 8,453 $ — $ 8,453 $ — $ 9,947 $ — $ 9,947 Short-term derivative interest rate swap $ — $ 432 $ — $ 432 $ — $ 407 $ — $ 407 Long-term derivative interest rate swap $ — $ 249 $ — $ 249 $ — $ 2,183 $ — $ 2,183 Total assets $ 1,769 $ 9,134 $ — $ 10,903 $ 154 $ 12,537 $ — $ 12,691 Liabilities Long-term derivative interest rate swap $ — $ 43 $ — $ 43 $ — $ — $ — $ — Total liabilities $ — $ 43 $ — $ 43 $ — $ — $ — $ — Fair Value of Financial Instruments We have certain financial instruments which consist of cash and cash equivalents, cash held for customers, marketable securities, accounts receivable, accounts payable, customer account liabilities, derivative interest rate swaps and debt drawn on our Credit Facility (see Note 11) . • Cash and cash equivalents, cash held for customers, accounts receivable, accounts payable and customer account liabilities fair values approximates their carrying values, due to the short-term nature of these instruments. • Marketable securities classified as held to maturity, all of which mature within one year, are recorded at amortized cost, which at March 31, 2019 and June 30, 2018, approximated fair value. • Marketable debt securities classified as available for sale are recorded at fair value. Unrealized gains and losses are included as a component of other accumulated comprehensive income (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 debt securities classified as available for sale. • The fair value of our derivative interest rate swaps are based on the present value of projected cash flows that will occur over the life of the instruments, after considering certain contractual terms and counterparty credit risk. • The carrying value of assets related to deposits we have made to fund future requirements associated with Israeli severance arrangements was $1.3 million and $1.4 million at March 31, 2019 and June 30, 2018, respectively, which approximated fair value. • We have certain other investments for which there is no readily determinable fair value. The carrying value of these investments was $4.6 million and $4.4 • We have borrowings of $110 million against our Credit Facility. The fair value of these borrowings, which are classified as Level 2, approximates their carrying value at March 31, 2019, as the instrument carries a variable rate of interest which reflects current market rates. Marketable Securities The table below presents information regarding our marketable securities by major security type as of March 31, 2019 and June 30, 2018. March 31, 2019 June 30, 2018 Held to Maturity Available for Sale Total Held to Maturity Available for Sale Total (in thousands) Marketable securities: Corporate and other debt securities $ 62 $ 8,453 $ 8,515 $ 65 $ 9,947 $ 10,012 Total marketable securities $ 62 $ 8,453 $ 8,515 $ 65 $ 9,947 $ 10,012 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, 2019 (in thousands) Due within 1 year $ 8,453 Due in 1 year through 5 years — Total $ 8,453 All of our available for sale marketable securities are classified as current assets. 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, 2019 and June 30, 2018, respectively, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: At March 31, 2019 At June 30, 2018 Less than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) Government—U.S. $ 3,488 $ (1 ) $ 6,480 $ (6 ) Total $ 3,488 $ (1 ) $ 6,480 $ (6 ) |
Business and Asset Acquisitions
Business and Asset Acquisitions | 9 Months Ended |
Mar. 31, 2019 | |
Business Combination and Other Investments [Abstract] | |
Acquisitions and Other Investments | Note 5— Fiscal Year 2019 During the nine months ended March 31, 2019, we completed two business acquisitions and an asset acquisition for aggregate purchase consideration of $42.4 million. Experian Limited On March 6, 2019, we acquired certain technology assets and customer related assets from Experian Limited for 9.5 million British Pound Sterling (approximately $ In the preliminary allocation of the purchase price, we recorded $2.7 million of goodwill. The goodwill is not deductible for income tax purposes and arose principally due to the anticipated future benefits arising from the acquisition. Identifiable intangible assets of $12.6 million, consisting primarily of customer related assets, are being amortized over a weighted average estimated useful lives of eleven years. Experian’s operating results are included in our Payments and Transactional Documents segment from the date of the acquisition forward and did not have a material impact on our revenue or net income (loss). Microgen Banking Systems Limited On July 2, 2018, we acquired Microgen Banking Systems Limited (Microgen), a UK-based BACS payment company, for 6.9 million British Pound Sterling (approximately $9.1 million based on the exchange rate in effect at the acquisition date). Microgen provides BACS payment products and supporting services to a wide range of UK-based customers and is expected to expand our customer base. In the preliminary allocation of the purchase price, we recorded $2.7 million of goodwill. The goodwill is not deductible for income tax purposes and arose principally due to the anticipated future benefits arising from the acquisition. Identifiable intangible assets of $8.4 million, consisting primarily of customer related assets, are being amortized over a weighted average estimated useful life of thirteen years. Microgen’s operating results are included in our Payments and Transactional Documents segment from the date of the acquisition forward and did not have a material impact on our revenue or net income (loss). Acquisition expenses of approximately $1.4 million EMEA Headquarters In January 2019, we purchased a building in Reading, UK for a base purchase price of 16 million British Pound Sterling (approximately $20.7 million based on the exchange rate in effect at the acquisition date), funded with existing cash on hand. When it is ready for its intended use, the building will ultimately replace our current Reading, UK building as our European headquarters. Fiscal Year 2018 During the fiscal year ended June 30, 2018, we completed two business acquisitions for an aggregate purchase consideration of $18.5 million. First Capital Cashflow Ltd. On October 4, 2017, we acquired First Capital Cashflow Ltd. (FCC) for 10.5 million British Pound Sterling (approximately $13.9 million based on the exchange rate in effect at the acquisition date) in cash and 42,080 shares of our common stock. The shares, which were issued to the selling stockholders of FCC who became employees of Bottomline, have vesting conditions tied to continued employment; as such the shares are compensatory and we will record share-based payment expense over the underlying stock vesting period of five years. FCC’s operating results are included in our Payments and Transactional Documents segment from the date of the acquisition forward and did not have a material impact on our revenue or net income (loss). Decillion On August 14, 2017, we acquired Singapore-based Decillion Group (Decillion) for total consideration of 6.2 million Singapore Dollars (approximately $4.6 million based on the exchange rate in effect at the acquisition date), consisting of $2.8 million in cash and a note payable of $1.8 million. The note is payable in equal installments over ten quarters starting during the three months ended September 30, 2017. Decillion’s operating results have been included in our Cloud Solutions segment from the date of the acquisition forward and did not have a material impact on our revenue or net income (loss). |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 6—Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 (in thousands, except per share amounts) Numerator—basic and diluted: Net income (loss) $ 824 $ (1,002 ) $ 5,875 $ (2,155 ) Denominator: Shares used in computing basic net income (loss) per share attributable to common stockholders 40,911 38,348 40,412 38,055 Impact of dilutive securities 714 — 1,238 — Shares used in computing diluted net income (loss) per share attributable to common stockholders 41,625 38,348 41,650 38,055 Basic net income (loss) per share attributable to common stockholders $ 0.02 $ (0.03 ) $ 0.15 $ (0.06 ) Diluted net income (loss) per share attributable to common stockholders $ 0.02 $ (0.03 ) $ 0.14 $ (0.06 ) For the three and nine months ended March 31, 2018, approximately 2.5 6.3 |
Operations by Segments and Geog
Operations by Segments and Geographic Areas | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Operations by Segments and Geographic Areas | Note 7—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 generally organized by the type of product or service offered and by geography. Similar operating segments have been aggregated into four reportable segments as follows: Cloud Solutions. Our Cloud Solutions segment provides customers primarily with SaaS technology offerings that facilitate electronic payment, electronic invoicing, and spend management. Our legal spend management solutions, which enable customers to create more efficient processes for managing invoices generated by outside law firms while offering insight into important legal spend factors such as expense monitoring and outside counsel performance, are included within this segment. This segment also incorporates our settlement network solutions (financial messaging and Paymode-X). Our settlement network solutions are highly scalable, secure and cost effective and facilitate cash payment and transaction settlement between businesses, their vendors and banks. Revenue within this segment is generally recognized on a subscription or transaction basis or ratably over the contract term. Banking Solutions. Our Banking Solutions segment provides solutions that are specifically designed for banking and financial institution customers. Our Banking Solutions products are now sold predominantly on a hosted basis, with revenue recorded over time. This has the effect of contributing to recurring revenue and the revenue predictability of future periods, but results in revenue recognition over a longer period than a traditional on-premise software license transaction. Payments and Transactional Documents. Our Payments and Transactional Documents segment supplies financial business process management software solutions, including making and collecting payments, sending and receiving invoices, and generating and storing business documents. This segment also provides a range of standard professional services and equipment and supplies that complement and enhance our core software products. When licensed for on-premise deployment, software license revenue is typically recorded upon delivery of the software and commencement of the license term. In hosted arrangements, we typically record revenue over time. Professional services revenue is normally recorded as we perform the work and software support and maintenance revenue is recorded ratably over the support period. Other . Our Other segment consists of our healthcare and cyber fraud and risk management operating segments. Our healthcare solutions for patient registration, electronic signature, mobile document and payments allow healthcare organizations to improve business efficiencies, reduce costs and improve care quality. Our cyber fraud and risk management solutions non-invasively monitor, replay and analyze user behavior to flag and even stop suspicious activity in real time. When licensed for on-premise deployment, software revenue for these operating segments is typically recorded upon delivery of the software and commencement of the license term. Professional services revenue is normally recorded as we perform the work and software support and maintenance revenue is recorded ratably over the support period. Periodically a sales person in one operating segment will sell products and services that are typically sold within a different operating segment. In such cases, the transaction is generally recorded by the operating segment to which the sales person is assigned. Accordingly, segment results can include the results of transactions that have been allocated to a specific segment based on the contributing sales resources, rather than the nature of the product or service. Conversely, a transaction can be recorded by the operating segment primarily responsible for delivery to the customer, even if the sales person is assigned to a different operating segment. Our chief operating decision maker assesses segment performance based on a variety of factors that normally include segment revenue and a segment measure of profit or loss. Each segment’s measure of profit or loss is on a pre-tax basis and excludes certain items as presented in our reconciliation of the measure of total segment profit to GAAP income (loss) before income taxes that follows. There are no inter-segment sales; accordingly, the measure of segment revenue and profit or loss reflects only revenues from external customers. The costs of certain corporate level expenses, primarily general and administrative expenses, are allocated to our operating segments based on a percentage of the segment’s revenues. We do not track or assign our assets by operating segment. Segment information for the three and nine months ended March 31, 2019 and 2018 according to the segment descriptions above, is as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in thousands) Segment revenue: Cloud Solutions $ 51,439 $ 46,486 $ 151,342 $ 133,448 Banking Solutions 23,903 22,900 69,283 65,175 Payments and Transactional Documents 26,094 27,124 78,271 75,516 Other 5,002 4,626 14,825 13,488 Total segment revenue $ 106,438 $ 101,136 $ 313,721 $ 287,627 Segment measure of profit (loss): Cloud Solutions $ 11,463 $ 9,308 $ 32,497 $ 28,342 Banking Solutions 2,082 1,630 6,097 4,939 Payments and Transactional Documents 6,933 7,661 22,799 21,755 Other (1,545 ) (627 ) (3,019 ) (2,014 ) Total measure of segment profit $ 18,933 $ 17,972 $ 58,374 $ 53,022 A reconciliation of the measure of total segment profit to GAAP income (loss) before income taxes is as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in thousands) Total measure of segment profit $ 18,933 $ 17,972 $ 58,374 $ 53,022 Less: Amortization of acquisition-related intangible assets (5,230 ) (5,818 ) (15,809 ) (16,708 ) Stock-based compensation plan expense (10,015 ) (8,592 ) (31,906 ) (25,132 ) Acquisition and integration-related expenses (1,373 ) (224 ) (2,966 ) (1,596 ) Restructuring expense (1,332 ) (1,485 ) (1,963 ) (1,476 ) Minimum pension liability adjustments 93 3 248 (35 ) Global ERP system implementation and other costs (557 ) (1,558 ) (3,110 ) (4,973 ) Other expense, net (1) (946 ) (1,293 ) (3,097 ) (9,288 ) Loss before income taxes $ (427 ) $ (995 ) $ (229 ) $ (6,186 ) (1) On July 1, 2018, we adopted an accounting standard update that changes the classification of certain pension related items. For purposes of this reconciliation of segment profit, we have presented pension related adjustments discretely, not as a component of other expense, net. The following depreciation and other amortization expense amounts are included in the measure of segment profit: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 (in thousands) Depreciation and other amortization expense: Cloud Solutions $ 2,854 $ 2,671 $ 8,663 $ 7,649 Banking Solutions 1,919 1,605 5,634 4,634 Payments and Transactional Documents 719 722 2,202 2,066 Other 84 97 268 289 Total depreciation and other amortization expense $ 5,576 $ 5,095 $ 16,767 $ 14,638 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 the United States. Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in thousands) Revenues from unaffiliated customers: United States $ 66,227 $ 60,984 $ 194,132 $ 176,783 United Kingdom 24,942 24,388 73,313 66,927 Switzerland 9,682 10,613 29,289 29,146 Other 5,587 5,151 16,987 14,771 Total revenues from unaffiliated customers $ 106,438 $ 101,136 $ 313,721 $ 287,627 Long-lived assets based on geographical location, excluding deferred tax assets and intangible assets, were as follows: At March 31, At June 30, 2019 2018 (in thousands) Long-lived assets: United States $ 47,516 $ 36,374 United Kingdom 31,982 5,586 Other 4,814 3,488 Total long-lived assets $ 84,312 $ 45,448 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8—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 that rate. The calculation of our estimated effective tax rate requires an estimate of pre-tax income by tax jurisdiction as well as total tax expense for the fiscal year. Accordingly, our annual estimated effective tax rate is subject to adjustment if there are changes to our initial estimates of total tax expense or pre-tax income, including the mix of income by jurisdiction. For those tax jurisdictions for which we are unable to reliably estimate an overall effective tax rate, we calculate income tax expense based upon the actual effective tax rate for the year-to-date period. Provision for Income Taxes We recorded an income tax benefit of $1.3 million and income tax expense of $7,000 for the three months ended March 31, 2019 and 2018, respectively. In the three months ended March 31, 2019, the income tax benefit we recorded was driven largely by discrete tax benefits of $0.8 million relating to stock-based compensation. The income tax expense for the three months ended March 31, 2018 was principally associated with our UK operations, offset by an income tax benefit principally associated with our Swiss, Israeli and U.S. operations. We recorded an income tax benefit of $6.1 million and $4.0 million for the nine months ended March 31, 2019 and 2018, respectively. In the nine months ended March 31, 2019, the income tax benefit we recorded was driven largely by discrete tax benefits of $5.4 million relating to stock-based compensation and a discrete tax benefit of $0.5 million arising from a reduction to deferred tax liabilities related to state tax consequences of repatriated foreign earnings. The income tax benefit for the nine months ended March 31, 2018 was principally due to a discrete tax benefit of $4.4 million relating to the consequences of the Tax Act (discussed below) and a tax benefit associated with our Swiss and Israeli operations, offset in part by tax expense associated with our U.S. and UK operations. We currently anticipate that our unrecognized tax benefits will decrease within the next twelve months by approximately $0.4 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. At March 31, 2019, we had a total valuation allowance of $33.0 million against our deferred tax assets given the uncertainty of recoverability of these amounts. The change in our valuation allowance during the nine months ended March 31, 2019 includes a reduction in our valuation allowance as a result of the adoption of the new accounting standard for revenue recognition. U.S. Tax Cuts and Jobs Act The U.S. Tax Cuts and Jobs Act (the Tax Act) was signed into U.S. law on December 22, 2017 and made broad and complex changes to the U.S. tax code. This legislation contained a variety of income tax changes, including a reduction to the federal corporate income tax rate from 35% to 21%, a repeal of the corporate alternative minimum tax, a one-time transition tax on accumulated foreign earnings, a move to a territorial tax system, a limitation on the tax deductibility of interest expense and an acceleration of tax deductions for qualifying capital expenditures. The Tax Act resulted in four consequences to us in our prior fiscal year, as follows: • Assessing whether we would incur any tax liability under the one-time transition tax . Under the Tax Act, un-repatriated foreign earnings post-1986 are subject to a one-time transition tax at rates that vary depending on the composition of foreign assets. We did not incur any transition tax liability due to our accumulated deficit position with respect to our foreign subsidiaries. • Re-valuing our U.S. deferred tax balances to reflect lower income tax rates . Deferred tax assets and deferred tax liabilities are recorded based on the income tax rates expected to be in effect when book and tax basis differences reverse. We are in a net U.S. deferred tax liability position. During the fiscal year ended June 30, 2018 we reduced the carrying value of our net deferred tax liabilities to reflect the impact of lower future income tax rates and recognized a non-recurring income tax benefit of $3.7 million. • Recognizing the ability to recover amounts paid for alternative minimum tax . The Tax Act eliminated the alternative minimum tax calculation and provided for the ability to recover certain amounts previously paid for such tax. We expect to receive a tax refund of $0.7 million and recognized a non-recurring income tax benefit in this amount in the fiscal year ended June 30, 2018. • Reversal of indefinite-lived deferred tax liabilities as a source of future taxable income when assessing the realizability of indefinite-lived net operating loss carryforwards . Under the Tax Act, net operating loss carryforwards arising in tax years beginning after December 31, 2017 are limited to 80% of taxable income in any year, and net operating losses generated in tax years ending after December 31, 2017 can be carried forward indefinitely. Based on the projection of future reversals of our deferred tax differences as of June 30, 2018 we determined that a portion of our indefinite-lived deferred tax liabilities could be used as a source of taxable income when assessing the realizability of future indefinite-lived net operating loss carryforwards. Accordingly, we recognized an income tax benefit of $4.1 million through a reduction to our valuation allowance in the fiscal year ended June 30, 2018. All of our accounting calculations and financial reporting positions for consequences arising from the Tax Act were final as of December 31, 2018. A provision of the Tax Act subjects a U.S. shareholder to current tax on “global intangible low-taxed income” (GILTI) of its controlled foreign corporations. We have elected to treat any tax related to GILTI as current tax expense in the period the tax is incurred. The Tax Act also provides that the repatriation to the U.S. of foreign earnings can be done without federal tax consequence. During fiscal year 2018, as a result of the Tax Act provisions, we reassessed and changed our assertion that cumulative earnings by our UK and Switzerland subsidiaries were indefinitely reinvested. We continue to permanently reinvest the earnings, if any, of our international subsidiaries other than the UK and Switzerland and therefore we do not provide for U.S. income taxes or withholding taxes that could result from the distribution of those earnings to the U.S. parent. If any such earnings were ultimately distributed to the U.S. in the form of dividends or otherwise, or if the shares of our international subsidiaries were sold or transferred, we would likely be subject to additional U.S. state income taxes. It is not practicable to estimate the amount of unrecognized deferred U.S. taxes on these undistributed earnings. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 9—Goodwill and Other Intangible Assets Goodwill and acquired intangible assets are initially recorded at fair value and tested periodically for impairment. We perform an impairment test of goodwill during the fourth quarter of each fiscal year or sooner, if indicators of potential impairment arise. At March 31, 2019, the carrying value of goodwill for all of our reporting units was $204.2 million. 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, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Life (in thousands) (in years) Amortized intangible assets: Customer related $ 220,669 $ (142,270 ) $ 78,399 8.9 Core technology 130,233 (88,264 ) 41,969 7.6 Other intangible assets 21,933 (18,529 ) 3,404 5.1 Capitalized software development costs 22,241 (8,840 ) 13,401 3.3 Software (1) 71,393 (39,747 ) 31,646 4.3 Total $ 466,469 $ (297,650 ) $ 168,819 Unamortized intangible assets: Goodwill 204,167 Total intangible assets $ 372,986 As of June 30, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Life (in thousands) (in years) Amortized intangible assets: Customer related $ 201,214 $ (134,133 ) $ 67,081 8.4 Core technology 130,257 (82,815 ) 47,442 8.1 Other intangible assets 21,983 (17,299 ) 4,684 5.3 Capitalized software development costs 19,527 (6,265 ) 13,262 4.0 Software (1) 62,711 (33,395 ) 29,316 4.6 Total $ 435,692 $ (273,907 ) $ 161,785 Unamortized intangible assets: Goodwill 200,024 Total intangible assets $ 361,809 (1) Software includes purchased software and software developed for internal use. Estimated amortization expense for the remainder of fiscal year 2019 and subsequent fiscal years for acquired intangible assets, capitalized software development costs and software, in each case that have been placed in service as of March 31, 2019, is as follows: Acquired Intangible Assets Capitalized Software Development Costs Software (in thousands) Remaining 2019 $ 5,483 $ 898 $ 2,340 2020 19,713 3,593 8,410 2021 18,444 3,593 6,115 2022 16,596 3,593 4,493 2023 15,272 679 2,816 2024 and thereafter 48,264 117 2,975 Each period, for capitalized software development costs, 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. The following table represents a rollforward of our goodwill balances, by reportable segment: Cloud Solutions Banking Solutions Payments and Transactional Documents Other Total (in thousands) Balance at June 30, 2018 (1) $ 90,270 $ 35,880 $ 65,680 $ 8,194 $ 200,024 Goodwill acquired during the period — — 5,344 — 5,344 Impact of foreign currency translation (463 ) — (738 ) — (1,201 ) Balance at March 31, 2019 (1) $ 89,807 $ 35,880 $ 70,286 $ 8,194 $ 204,167 (1) Other goodwill balance is net of $7.5 million accumulated impairment losses, recorded previously. 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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10—Commitments and Contingencies Legal Matters 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. |
Indebtedness
Indebtedness | 9 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Indebtedness | Note 11—Indebtedness Credit Agreement We are party to a credit agreement (the Credit Agreement) that provides for a five-year revolving credit facility in the amount of up to $300 million (the Credit Facility), which was amended on July 16, 2018. We also have the right to request an increase of the aggregate commitments under the Credit Facility by up to $150 million, subject to specified conditions. The Credit Facility expires in July 2023. At March 31, 2019, we owed $110 million under the Credit Facility. 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, 2020; and (b) a minimum consolidated interest coverage ratio of 3.00 to 1.00. The Credit Agreement also contains customary events of default and related cure provisions. As of March 31, 2019, we were in compliance with the covenants associated with the Credit Facility. Warrants In December 2012, we received aggregate proceeds of $25.8 million, net of issue costs, from the sale of warrants for the purchase of up to 6.3 million shares of our common stock at a strike price of $40.04 per share. The warrants were exercisable in equal tranches over a period of 150 days beginning on March 1, 2018 and ending on October 2, 2018. Each warrant was exercisable into one share of our common stock. During the nine months ended March 31, 2019, we issued approximately 932 thousand shares of common stock related to the warrants exercised by the holders and all warrant exercises were net settled. There were no warrants outstanding as of March 31, 2019. Note Payable We financed a portion of the purchase price for our acquisition of Decillion by entering into a note payable for 2.5 million Singapore Dollars (approximately $1.8 million based on the exchange rate in effect at the acquisition date). The note is payable in equal installments over ten quarters, with the final installment due in the quarter ended December 31, 2019. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 12—Derivative Instruments Cash Flow Hedges Interest Rate Swap Agreements We utilize interest rate swap agreements to hedge our exposure to interest rate risk. At March 31, 2019, we had two outstanding interest rate swap agreements which were entered into in July 2017 and March 2019 with notional values of $100 million and $80 million, respectively. The notional value of each interest rate swap agreement is expected to match the corresponding principal amount of a portion of our borrowings under the Credit Facility. The $100 million notional value agreement is effective as of December 1, 2017 and expires on December 1, 2021. During this period, we have a fixed interest rate of 1.9275 The $80 million notional value agreement is effective as of December 1, 2021 and expires on July 16, 2023. During this period, we have a fixed interest rate of 2.125 percent on the notional amount and Bank of America, N.A., as counterparty to the agreement, will pay us interest at a floating rate based on the 1 month USD-LIBOR-BBA swap rate on the notional amount. Interest payments will be made monthly on a net settlement basis. We designated the interest rate swap agreements as hedging instruments and they qualified for hedge accounting upon inception and at March 31, 2019. To continue to qualify for hedge accounting, the instruments must retain a “highly effective” ability to hedge interest rate risk for borrowings under the Credit Facility. We are required to test hedge effectiveness at the end of each financial reporting period. If a derivative qualifies for hedge accounting, changes in fair value of the hedge instrument are recognized in accumulated other comprehensive income (loss) (AOCI) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The reclassification into earnings is recorded as a component of our interest expense within other expense, net. If the instrument were to lose some or all of its hedge effectiveness, changes in fair value for the “ineffective” portion of the instrument would be recorded immediately in earnings. The fair values of the interest rate swaps and their respective locations in our consolidated balance sheets at March 31, 2019 and June 30, 2018 were as follows: Description Balance Sheet Location March 31, 2019 June 30, 2018 Derivative interest rate swap (in thousands) Short-term derivative asset Prepaid expenses and other current assets $ 432 $ 407 Long-term derivative asset Other assets $ 249 $ 2,183 Long-term derivative liability Other liabilities $ 43 $ — The following tables present the effect of our derivative interest rate swaps and related tax effects in AOCI for the nine months ended March 31, 2019 and 2018. Gain (Loss) in Amount of Gain (Loss) in OCI on Derivative Instruments (Effective Portion) Amount of (Gain) Loss from Income (Loss) (Effective Portion) (1) Income Tax Benefit (Provision) in OCI on Derivative Instruments Gain (Loss) in (in thousands) Derivative interest rate swap $ 2,590 $ (1,671 ) $ (281 ) $ — $ 638 Gain (Loss) in Amount of Gain (Loss) in OCI on Derivative Instruments (Effective Portion) Amount of (Gain) Loss Reclassified from Income (Loss) (Effective Portion) (1) Income Tax Benefit (Provision) in OCI on Derivative Instruments Gain (Loss) in (in thousands) $ — 1,869 $ 130 $ (626 ) $ 1,373 (1) Recorded as interest income (expense) within other expense, net in During the three and nine months ended March 31, 2019, we concluded that no portion of the hedges was ineffective. As of March 31, 2019, there was $0.6 $0.5 |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 9 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Postretirement and Other Employee Benefits | Note 13—Postretirement and Other Employee Benefits Defined Benefit Pension Plan We sponsor a defined benefit pension plan for our Swiss-based employees (the Swiss pension plan) that is governed by local regulatory requirements. This plan includes certain minimum benefit guarantees that, under U.S. GAAP, require defined benefit plan accounting. Net periodic pension costs for the Swiss pension plan included the following components: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 (in thousands) Components of net periodic cost Service cost $ 625 $ 650 $ 1,900 $ 1,914 Interest cost 113 91 343 267 Prior service credit (76 ) (23 ) (231 ) (68 ) Net actuarial loss 54 56 164 165 Expected return on plan assets (342 ) (306 ) (1,040 ) (901 ) Net periodic cost $ 374 $ 468 $ 1,136 $ 1,377 The components of net periodic pension cost other than current service cost are presented within other expense, net in our unaudited consolidated statements of comprehensive income (loss). |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14—Subsequent Events In April 2019, we received cash proceeds of $7.7 million and recorded a gain of $7.3 million in connection with the sale of an entity in which we held a small equity investment. In May 2019, we signed an agreement to acquire the outstanding capital stock of BankSight Software Systems, Inc. (BankSight) for $2.8 million in cash and 40,000 shares of our common stock which have vesting conditions tied to the continued employment of certain BankSight employees. We currently hold a minority investment in preferred stock of BankSight. The transaction is subject to the satisfaction or waiver of customary closing conditions, which we expect to occur by May 31, 2019. BankSight is an early-stage technology company that develops and markets a SaaS-based customer engagement and growth platform for banks and credit unions. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Recently Adopted Pronouncements and Accounting Pronouncements to be Adopted | Recently Adopted Pronouncements Revenue Recognition: In May 2014, the Financial Accounting Standard Board (FASB) issued an accounting standard update for new revenue recognition guidance, superseding nearly all prior revenue recognition guidance. The new revenue standard outlines a single comprehensive model for accounting for revenue from contracts with customers and requires more detailed revenue disclosures. The core principle of the new standard is that revenue is to be recognized in a manner that depicts the transfer of promised goods or services to customers at amounts that reflect the consideration which the entity expects to be entitled under the arrangement. We adopted the new revenue standard on July 1, 2018 using the modified retrospective method of adoption applied to open contracts at that date and upon adoption recorded a $26.3 million decrease to our accumulated deficit balance. The adjustments we recorded at transition were composed of: (in thousands) Decrease to accounts receivable $ (1,914 ) Increase to contract assets 5,118 Decrease to deferred revenue 9,839 Increase to capitalized fulfillment costs 11,648 Increase to capitalized sales commissions 4,952 Tax effects (3,380 ) Total decrease to accumulated deficit $ 26,263 The adjustment to accounts receivable relates primarily to unbilled receivables reclassified as contract assets. The increase to contract assets relates to revenue recognized in excess of the amount billed to the customer and the right to payment contingent on conditions other than simply the passage of time, such as the completion of a related performance obligation. Adjustments to deferred revenue relate primarily to the acceleration of revenue under the new standard as compared to the previous revenue recognition standard. This largely relates to transactions where, under legacy GAAP, revenue was deferred due to a lack of vendor specific objective evidence of fair value, transactions accounted for under a combined services arrangement which resulted in revenue recognition over time, transactions that had contractually stipulated price increases that were accounted for as the increases occurred and certain contingent revenue arrangements. Adjustments to capitalized fulfillment costs and capitalized sales commissions reflect the requirement to capitalize these costs under the new standard; prior to adoption, we expensed these costs as incurred. Capitalized costs are recorded as components of our prepaid expenses and other current assets and other assets in our consolidated balance sheet. Please refer to Note 3 Revenue Recognition for discussion of the adoption of this new standard. Financial Instruments—Classification and Measurement: Statement of Cash Flows: During the nine months ended March 31, 2018, the retrospective adoption of this standard resulted in an increase in operating cash flows of approximately $5.3 million. Defined Benefit Plan Expenses: In March 2017, the FASB issued an accounting standard update that changes the income statement presentation of defined benefit plan expense by requiring separation between operating expense (for the service cost component) and non-operating expense (for all other components of net periodic defined benefit cost). Under the revised standard, the service cost component is classified consistently with other compensation costs, while all other components are reported in other expense, net. We adopted this standard retrospectively on July 1, 2018 and reclassified approximately $0.2 million and $0.5 million from income from operations to other expense, net for the three and nine months ended March 31, 2018, respectively, in our consolidated statement of comprehensive loss. Accounting Pronouncements to be Adopted Leases: Financial Instruments—Credit Losses: Goodwill Impairment: Derivatives and Hedging: Share-Based Compensation—Nonemployee Share-Based Payment Accounting: |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We have certain financial instruments which consist of cash and cash equivalents, cash held for customers, marketable securities, accounts receivable, accounts payable, customer account liabilities, derivative interest rate swaps and debt drawn on our Credit Facility (see Note 11) . • Cash and cash equivalents, cash held for customers, accounts receivable, accounts payable and customer account liabilities fair values approximates their carrying values, due to the short-term nature of these instruments. • Marketable securities classified as held to maturity, all of which mature within one year, are recorded at amortized cost, which at March 31, 2019 and June 30, 2018, approximated fair value. • Marketable debt securities classified as available for sale are recorded at fair value. Unrealized gains and losses are included as a component of other accumulated comprehensive income (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 debt securities classified as available for sale. • The fair value of our derivative interest rate swaps are based on the present value of projected cash flows that will occur over the life of the instruments, after considering certain contractual terms and counterparty credit risk. • The carrying value of assets related to deposits we have made to fund future requirements associated with Israeli severance arrangements was $1.3 million and $1.4 million at March 31, 2019 and June 30, 2018, respectively, which approximated fair value. • We have certain other investments for which there is no readily determinable fair value. The carrying value of these investments was $4.6 million and $4.4 • We have borrowings of $110 million against our Credit Facility. The fair value of these borrowings, which are classified as Level 2, approximates their carrying value at March 31, 2019, as the instrument carries a variable rate of interest which reflects current market rates. |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Retained Earnings Adjustments | The adjustments we recorded at transition were composed of: (in thousands) Decrease to accounts receivable $ (1,914 ) Increase to contract assets 5,118 Decrease to deferred revenue 9,839 Increase to capitalized fulfillment costs 11,648 Increase to capitalized sales commissions 4,952 Tax effects (3,380 ) Total decrease to accumulated deficit $ 26,263 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Summary of Revenue Disaggregated by Major Product Category and the Related Financial Statement Classification of Revenue | The tables below present our revenue disaggregated by major product category and the related financial statement classification of revenue for the three and nine months ended March 31, 2019. Three Months Ended March 31, 2019 Settlement (1) Legal Spend (1) Banking Solutions Payments and Transactional Documents Healthcare (2) Other (2) Total (in thousands) Financial statement classification: Subscriptions and transactions $ 26,373 $ 18,916 $ 17,819 $ 11,749 $ 619 $ 26 $ 75,502 Software licenses 245 — 527 1,982 1 1,047 3,802 Service and maintenance 5,905 — 5,557 11,402 916 2,076 25,856 Other — — — 961 — 317 1,278 Total revenues $ 32,523 $ 18,916 $ 23,903 $ 26,094 $ 1,536 $ 3,466 $ 106,438 Nine Months Ended March 31, 2019 Settlement (1) Legal Spend (1) Banking Solutions Payments and Transactional Documents Healthcare (2) Other (2) Total (in thousands) Financial statement classification: Subscriptions and transactions $ 75,536 $ 56,461 $ 49,410 $ 33,363 $ 1,676 $ 112 $ 216,558 Software licenses 1,052 — 3,953 5,635 884 2,455 13,979 Service and maintenance 18,293 — 15,920 36,762 2,686 6,386 80,047 Other — — — 2,511 — 626 3,137 Total revenues $ 94,881 $ 56,461 $ 69,283 $ 78,271 $ 5,246 $ 9,579 $ 313,721 (1) Cloud Solutions segment (2) Other segment |
Summary of Contract Assets and Liabilities | The table below presents our accounts receivable, contract assets and deferred revenue balances as of July 1, 2018 and March 31, 2019. March 31, July 1, 2019 2018 $ Change (in thousands) Accounts receivable $ 76,240 $ 72,391 $ 3,849 Contract assets 6,129 5,118 1,011 Deferred revenue 98,804 88,888 9,916 |
Accounting Standards Update 2014-09 [Member] | |
Summary of Impact of Adopting the New Revenue Standard on Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Comprehensive Loss and Condensed Consolidated Statement of Cash Flows | The following tables summarize the impact of adopting the new revenue standard on our consolidated financial statements as of and for the three and nine months ended March 31, 2019: Unaudited Condensed Consolidated Balance Sheet At March 31, 2019 (in thousands, unaudited) As Reported Adjustments Balances without adoption of new revenue standard ASSETS Current assets: Cash and cash equivalents $ 79,475 $ — $ 79,475 Cash held for customers 4,305 — 4,305 Marketable securities 8,515 — 8,515 Accounts receivable, net 76,240 1,235 77,475 Prepaid expenses and other current assets 32,111 (11,158 ) 20,953 Total current assets 200,646 (9,923 ) 190,723 Property and equipment, net 54,696 — 54,696 Goodwill 204,167 — 204,167 Intangible assets, net 168,819 — 168,819 Other assets 31,610 (16,142 ) 15,468 Total assets $ 659,938 $ (26,065 ) $ 633,873 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 11,530 $ — $ 11,530 Accrued expenses and other current liabilities 32,257 — 32,257 Customer account liabilities 4,305 — 4,305 Deferred revenue 80,082 4,306 84,388 Total current liabilities 128,174 4,306 132,480 Borrowings under credit facility 110,000 — 110,000 Deferred revenue, non-current 18,722 5,224 23,946 Deferred income taxes 8,311 (456 ) 7,855 Other liabilities 20,398 — 20,398 Total liabilities 285,605 9,074 294,679 Stockholders’ equity Preferred Stock, $.001 par value — — — Common Stock, $.001 par value 47 — 47 Additional paid-in-capital 711,558 — 711,558 Accumulated other comprehensive loss (35,200 ) 91 (35,109 ) Treasury stock, at cost (127,095 ) — (127,095 ) Accumulated deficit (174,977 ) (35,230 ) (210,207 ) Total stockholders’ equity 374,333 (35,139 ) 339,194 Total liabilities and stockholders’ equity $ 659,938 $ (26,065 ) $ 633,873 Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2019 Nine Months Ended March 31, 2019 (in thousands, unaudited) As Reported Adjustments Balances without adoption of new revenue standard As Reported Adjustments Balances without adoption of new revenue standard Revenues: Subscriptions and transactions $ 75,502 $ (833 ) $ 74,669 $ 216,558 $ 393 $ 216,951 Software licenses 3,802 (180 ) 3,622 13,979 (3,562 ) 10,417 Service and maintenance 25,856 540 26,396 80,047 1,767 81,814 Other 1,278 (18 ) 1,260 3,137 (55 ) 3,082 Total revenues 106,438 (491 ) 105,947 313,721 (1,457 ) 312,264 Cost of revenues: Subscriptions and transactions 31,623 29 31,652 94,644 678 95,322 Software licenses 226 — 226 667 2 669 Service and maintenance 12,818 303 13,121 38,052 1,104 39,156 Other 1,046 12 1,058 2,461 (16 ) 2,445 Total cost of revenues 45,713 344 46,057 135,824 1,768 137,592 Gross profit 60,725 (835 ) 59,890 177,897 (3,225 ) 174,672 Operating expenses: Sales and marketing 25,165 256 25,421 70,772 621 71,393 Product development and engineering 16,887 44 16,931 50,267 222 50,489 General and administrative 13,175 — 13,175 38,944 — 38,944 Amortization of acquisition-related intangible assets 5,230 — 5,230 15,809 — 15,809 Total operating expenses 60,457 300 60,757 175,792 843 176,635 Income from operations 268 (1,135 ) (867 ) 2,105 (4,068 ) (1,963 ) Other expense, net (695 ) — (695 ) (2,334 ) — (2,334 ) Loss before income taxes (427 ) (1,135 ) (1,562 ) (229 ) (4,068 ) (4,297 ) Benefit (expense) from income taxes 1,251 839 2,090 6,104 (4,899 ) 1,205 Net income (loss) $ 824 $ (296 ) $ 528 $ 5,875 $ (8,967 ) $ (3,092 ) Net income (loss) per share: Basic $ 0.02 $ (0.01 ) $ 0.01 $ 0.15 $ (0.07 ) $ 0.08 Diluted $ 0.02 $ (0.01 ) $ 0.01 $ 0.14 $ (0.06 ) $ 0.08 Shares used in computing net income (loss) per share: Basic 40,911 — 40,911 40,412 — 40,412 Diluted 41,625 (714 ) 40,911 41,650 (1,238 ) 40,412 Other comprehensive income (loss), net of tax: Unrealized gain on available for sale securities 5 — 5 11 — 11 Unrealized gain (loss) on interest rate hedging transactions (841 ) — (841 ) (1,952 ) — (1,952 ) Minimum pension liability adjustments 18 — 18 (38 ) — (38 ) Foreign currency translation adjustments 1,322 (93 ) 1,229 (2,588 ) 92 (2,496 ) Other comprehensive income (loss), net of tax: 504 (93 ) 411 (4,567 ) 92 (4,475 ) Comprehensive income (loss) $ 1,328 $ (389 ) $ 939 $ 1,308 $ (8,875 ) $ (7,567 ) Unaudited Condensed Consolidated Statement of Cash Flows Nine Months Ended March 31, 2019 (in thousands, unaudited) As Reported Adjustments Balances without adoption of new revenue standard Operating activities: Net income (loss) $ 5,875 $ (8,967 ) $ (3,092 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of acquisition-related intangible assets 15,809 — 15,809 Stock-based compensation plan expense 31,906 11 31,917 Depreciation and other amortization 16,767 — 16,767 Gain on sale of cost-method investment (237 ) — (237 ) Deferred income tax benefit (8,284 ) 4,899 (3,385 ) Provision for allowances on accounts receivable 167 — 167 Amortization of debt issuance costs 311 — 311 Amortization of discount on investments (108 ) — (108 ) Loss (gain) on disposal of equipment 596 — 596 Loss (gain) on foreign exchange 410 (8 ) 402 Changes in operating assets and liabilities: Accounts receivable (3,520 ) 663 (2,857 ) Prepaid expenses and other current assets (3,913 ) 2,724 (1,189 ) Other assets (1,483 ) 943 (540 ) Accounts payable 1,485 — 1,485 Accrued expenses (1,513 ) — (1,513 ) Customer account liabilities 1,562 — 1,562 Deferred revenue 7,835 (265 ) 7,570 Other liabilities (650 ) — (650 ) Net cash provided by operating activities $ 63,015 $ — $ 63,015 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | At March 31, 2019 and June 30, 2018, our assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2019 June 30, 2018 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) Assets Money market funds (cash and cash equivalents) $ 1,769 $ — $ — $ 1,769 $ 154 $ — $ — $ 154 Available for sale securities—Debt U.S. Corporate $ — $ 998 $ — $ 998 $ — $ 3,467 $ — $ 3,467 Government—U.S. — 7,455 — 7,455 — 6,480 — 6,480 Total available for sale securities $ — $ 8,453 $ — $ 8,453 $ — $ 9,947 $ — $ 9,947 Short-term derivative interest rate swap $ — $ 432 $ — $ 432 $ — $ 407 $ — $ 407 Long-term derivative interest rate swap $ — $ 249 $ — $ 249 $ — $ 2,183 $ — $ 2,183 Total assets $ 1,769 $ 9,134 $ — $ 10,903 $ 154 $ 12,537 $ — $ 12,691 Liabilities Long-term derivative interest rate swap $ — $ 43 $ — $ 43 $ — $ — $ — $ — Total liabilities $ — $ 43 $ — $ 43 $ — $ — $ — $ — |
Marketable Securities by Major Security Type | The table below presents information regarding our marketable securities by major security type as of March 31, 2019 and June 30, 2018. March 31, 2019 June 30, 2018 Held to Maturity Available for Sale Total Held to Maturity Available for Sale Total (in thousands) Marketable securities: Corporate and other debt securities $ 62 $ 8,453 $ 8,515 $ 65 $ 9,947 $ 10,012 Total marketable securities $ 62 $ 8,453 $ 8,515 $ 65 $ 9,947 $ 10,012 |
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, 2019 (in thousands) Due within 1 year $ 8,453 Due in 1 year through 5 years — Total $ 8,453 |
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, 2019 and June 30, 2018, respectively, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: At March 31, 2019 At June 30, 2018 Less than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) Government—U.S. $ 3,488 $ (1 ) $ 6,480 $ (6 ) Total $ 3,488 $ (1 ) $ 6,480 $ (6 ) |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 (in thousands, except per share amounts) Numerator—basic and diluted: Net income (loss) $ 824 $ (1,002 ) $ 5,875 $ (2,155 ) Denominator: Shares used in computing basic net income (loss) per share attributable to common stockholders 40,911 38,348 40,412 38,055 Impact of dilutive securities 714 — 1,238 — Shares used in computing diluted net income (loss) per share attributable to common stockholders 41,625 38,348 41,650 38,055 Basic net income (loss) per share attributable to common stockholders $ 0.02 $ (0.03 ) $ 0.15 $ (0.06 ) Diluted net income (loss) per share attributable to common stockholders $ 0.02 $ (0.03 ) $ 0.14 $ (0.06 ) For the three and nine months ended March 31, 2018, approximately 2.5 6.3 |
Operations by Segments and Ge_2
Operations by Segments and Geographic Areas (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Segment information for the three and nine months ended March 31, 2019 and 2018 according to the segment descriptions above, is as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in thousands) Segment revenue: Cloud Solutions $ 51,439 $ 46,486 $ 151,342 $ 133,448 Banking Solutions 23,903 22,900 69,283 65,175 Payments and Transactional Documents 26,094 27,124 78,271 75,516 Other 5,002 4,626 14,825 13,488 Total segment revenue $ 106,438 $ 101,136 $ 313,721 $ 287,627 Segment measure of profit (loss): Cloud Solutions $ 11,463 $ 9,308 $ 32,497 $ 28,342 Banking Solutions 2,082 1,630 6,097 4,939 Payments and Transactional Documents 6,933 7,661 22,799 21,755 Other (1,545 ) (627 ) (3,019 ) (2,014 ) Total measure of segment profit $ 18,933 $ 17,972 $ 58,374 $ 53,022 |
Reconciliation of Measure of Total Segment Profit to GAAP Income (Loss) Before Income Taxes | A reconciliation of the measure of total segment profit to GAAP income (loss) before income taxes is as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in thousands) Total measure of segment profit $ 18,933 $ 17,972 $ 58,374 $ 53,022 Less: Amortization of acquisition-related intangible assets (5,230 ) (5,818 ) (15,809 ) (16,708 ) Stock-based compensation plan expense (10,015 ) (8,592 ) (31,906 ) (25,132 ) Acquisition and integration-related expenses (1,373 ) (224 ) (2,966 ) (1,596 ) Restructuring expense (1,332 ) (1,485 ) (1,963 ) (1,476 ) Minimum pension liability adjustments 93 3 248 (35 ) Global ERP system implementation and other costs (557 ) (1,558 ) (3,110 ) (4,973 ) Other expense, net (1) (946 ) (1,293 ) (3,097 ) (9,288 ) Loss before income taxes $ (427 ) $ (995 ) $ (229 ) $ (6,186 ) (1) On July 1, 2018, we adopted an accounting standard update that changes the classification of certain pension related items. For purposes of this reconciliation of segment profit, we have presented pension related adjustments discretely, not as a component of other expense, net. |
Schedule of Segment Depreciation and Amortization Expense Included in Measure of Segment Profit | The following depreciation and other amortization expense amounts are included in the measure of segment profit: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 (in thousands) Depreciation and other amortization expense: Cloud Solutions $ 2,854 $ 2,671 $ 8,663 $ 7,649 Banking Solutions 1,919 1,605 5,634 4,634 Payments and Transactional Documents 719 722 2,202 2,066 Other 84 97 268 289 Total depreciation and other amortization expense $ 5,576 $ 5,095 $ 16,767 $ 14,638 |
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 the United States. Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in thousands) Revenues from unaffiliated customers: United States $ 66,227 $ 60,984 $ 194,132 $ 176,783 United Kingdom 24,942 24,388 73,313 66,927 Switzerland 9,682 10,613 29,289 29,146 Other 5,587 5,151 16,987 14,771 Total revenues from unaffiliated customers $ 106,438 $ 101,136 $ 313,721 $ 287,627 |
Schedule of Long-Lived Assets, Based on Geographical Location, Excluding Deferred Tax Assets and Intangible Assets | Long-lived assets based on geographical location, excluding deferred tax assets and intangible assets, were as follows: At March 31, At June 30, 2019 2018 (in thousands) Long-lived assets: United States $ 47,516 $ 36,374 United Kingdom 31,982 5,586 Other 4,814 3,488 Total long-lived assets $ 84,312 $ 45,448 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
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, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Life (in thousands) (in years) Amortized intangible assets: Customer related $ 220,669 $ (142,270 ) $ 78,399 8.9 Core technology 130,233 (88,264 ) 41,969 7.6 Other intangible assets 21,933 (18,529 ) 3,404 5.1 Capitalized software development costs 22,241 (8,840 ) 13,401 3.3 Software (1) 71,393 (39,747 ) 31,646 4.3 Total $ 466,469 $ (297,650 ) $ 168,819 Unamortized intangible assets: Goodwill 204,167 Total intangible assets $ 372,986 As of June 30, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Life (in thousands) (in years) Amortized intangible assets: Customer related $ 201,214 $ (134,133 ) $ 67,081 8.4 Core technology 130,257 (82,815 ) 47,442 8.1 Other intangible assets 21,983 (17,299 ) 4,684 5.3 Capitalized software development costs 19,527 (6,265 ) 13,262 4.0 Software (1) 62,711 (33,395 ) 29,316 4.6 Total $ 435,692 $ (273,907 ) $ 161,785 Unamortized intangible assets: Goodwill 200,024 Total intangible assets $ 361,809 (1) Software includes purchased software and software developed for internal use. |
Schedule of Rollforward of Goodwill Balances, by Reportable Segment | The following table represents a rollforward of our goodwill balances, by reportable segment: Cloud Solutions Banking Solutions Payments and Transactional Documents Other Total (in thousands) Balance at June 30, 2018 (1) $ 90,270 $ 35,880 $ 65,680 $ 8,194 $ 200,024 Goodwill acquired during the period — — 5,344 — 5,344 Impact of foreign currency translation (463 ) — (738 ) — (1,201 ) Balance at March 31, 2019 (1) $ 89,807 $ 35,880 $ 70,286 $ 8,194 $ 204,167 (1) Other goodwill balance is net of $7.5 million accumulated impairment losses, recorded previously. |
Acquired Intangible Assets, Capitalized Software Development Costs and Software [Member] | |
Schedule of Estimated Amortization Expense | Estimated amortization expense for the remainder of fiscal year 2019 and subsequent fiscal years for acquired intangible assets, capitalized software development costs and software, in each case that have been placed in service as of March 31, 2019, is as follows: Acquired Intangible Assets Capitalized Software Development Costs Software (in thousands) Remaining 2019 $ 5,483 $ 898 $ 2,340 2020 19,713 3,593 8,410 2021 18,444 3,593 6,115 2022 16,596 3,593 4,493 2023 15,272 679 2,816 2024 and thereafter 48,264 117 2,975 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Values of the Interest Rate Swap | The fair values of the interest rate swaps and their respective locations in our consolidated balance sheets at March 31, 2019 and June 30, 2018 were as follows: Description Balance Sheet Location March 31, 2019 June 30, 2018 Derivative interest rate swap (in thousands) Short-term derivative asset Prepaid expenses and other current assets $ 432 $ 407 Long-term derivative asset Other assets $ 249 $ 2,183 Long-term derivative liability Other liabilities $ 43 $ — |
Summary of Effect of Derivative Interest Rate Swap and Related Tax Effects in AOCI | The following tables present the effect of our derivative interest rate swaps and related tax effects in AOCI for the nine months ended March 31, 2019 and 2018. Gain (Loss) in Amount of Gain (Loss) in OCI on Derivative Instruments (Effective Portion) Amount of (Gain) Loss from Income (Loss) (Effective Portion) (1) Income Tax Benefit (Provision) in OCI on Derivative Instruments Gain (Loss) in (in thousands) Derivative interest rate swap $ 2,590 $ (1,671 ) $ (281 ) $ — $ 638 Gain (Loss) in Amount of Gain (Loss) in OCI on Derivative Instruments (Effective Portion) Amount of (Gain) Loss Reclassified from Income (Loss) (Effective Portion) (1) Income Tax Benefit (Provision) in OCI on Derivative Instruments Gain (Loss) in (in thousands) $ — 1,869 $ 130 $ (626 ) $ 1,373 (1) Recorded as interest income (expense) within other expense, net in |
Postretirement and Other Empl_2
Postretirement and Other Employee Benefits (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Costs for the Swiss Pension Plan | Net periodic pension costs for the Swiss pension plan included the following components: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 (in thousands) Components of net periodic cost Service cost $ 625 $ 650 $ 1,900 $ 1,914 Interest cost 113 91 343 267 Prior service credit (76 ) (23 ) (231 ) (68 ) Net actuarial loss 54 56 164 165 Expected return on plan assets (342 ) (306 ) (1,040 ) (901 ) Net periodic cost $ 374 $ 468 $ 1,136 $ 1,377 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Jul. 01, 2018 | Jun. 30, 2018 | |
Item Effected [Line Items] | |||||
Decrease to accumulated deficit | $ (174,977) | $ (207,115) | |||
Increase in operating cash flow | $ 5,300 | ||||
Adjustments for New Accounting Pronouncement [Member] | Other Expense [Member] | |||||
Item Effected [Line Items] | |||||
Reclassification of income from income (loss) from operations to other expense, net | $ 200 | $ 500 | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Item Effected [Line Items] | |||||
Decrease to accumulated deficit | $ (35,230) | $ 26,263 |
Recent Accounting Pronounceme_5
Recent Accounting Pronouncements - Schedule of Retained Earnings Adjustments (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2019 | Jun. 30, 2018 |
Retained Earnings Adjustments [Line Items] | |||
Decrease to accounts receivable | $ (76,240) | $ (72,391) | |
Increase to contract assets | 6,129 | 5,118 | |
Decrease to deferred revenue | 80,082 | $ 75,356 | |
Total decrease to accumulated deficit | (174,977) | $ (207,115) | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Decrease to accounts receivable | (1,914) | ||
Increase to contract assets | 5,118 | ||
Decrease to deferred revenue | 9,839 | 4,306 | |
Increase to capitalized fulfillment costs | 11,648 | ||
Increase to capitalized sales commissions | 4,952 | ||
Tax effects | (3,380) | ||
Total decrease to accumulated deficit | $ 26,263 | $ (35,230) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue Disaggregated by Major Product Category and the Related Financial Statement Classification of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | $ 106,438 | $ 101,136 | $ 313,721 | $ 287,627 | |
Subscriptions and Transactions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 75,502 | 67,378 | 216,558 | 191,279 | |
Software Licenses [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 3,802 | 3,134 | 13,979 | 8,119 | |
Service and Maintenance [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 25,856 | 29,476 | 80,047 | 85,251 | |
Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,278 | 1,148 | 3,137 | 2,978 | |
Operating Segments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 106,438 | 101,136 | 313,721 | 287,627 | |
Operating Segments [Member] | Subscriptions and Transactions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 75,502 | 216,558 | |||
Operating Segments [Member] | Software Licenses [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 3,802 | 13,979 | |||
Operating Segments [Member] | Service and Maintenance [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 25,856 | 80,047 | |||
Operating Segments [Member] | Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,278 | 3,137 | |||
Operating Segments [Member] | Settlement Network Solutions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 32,523 | 94,881 | ||
Operating Segments [Member] | Settlement Network Solutions [Member] | Subscriptions and Transactions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 26,373 | 75,536 | ||
Operating Segments [Member] | Settlement Network Solutions [Member] | Software Licenses [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 245 | 1,052 | ||
Operating Segments [Member] | Settlement Network Solutions [Member] | Service and Maintenance [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 5,905 | 18,293 | ||
Operating Segments [Member] | Legal Spend Management Solutions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 18,916 | 56,461 | ||
Operating Segments [Member] | Legal Spend Management Solutions [Member] | Subscriptions and Transactions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 18,916 | 56,461 | ||
Operating Segments [Member] | Banking Solutions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 23,903 | 22,900 | 69,283 | 65,175 | |
Operating Segments [Member] | Banking Solutions [Member] | Subscriptions and Transactions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 17,819 | 49,410 | |||
Operating Segments [Member] | Banking Solutions [Member] | Software Licenses [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 527 | 3,953 | |||
Operating Segments [Member] | Banking Solutions [Member] | Service and Maintenance [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 5,557 | 15,920 | |||
Operating Segments [Member] | Payments and Transactional Documents [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 26,094 | $ 27,124 | 78,271 | $ 75,516 | |
Operating Segments [Member] | Payments and Transactional Documents [Member] | Subscriptions and Transactions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 11,749 | 33,363 | |||
Operating Segments [Member] | Payments and Transactional Documents [Member] | Software Licenses [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,982 | 5,635 | |||
Operating Segments [Member] | Payments and Transactional Documents [Member] | Service and Maintenance [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 11,402 | 36,762 | |||
Operating Segments [Member] | Payments and Transactional Documents [Member] | Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 961 | 2,511 | |||
Operating Segments [Member] | Health Care [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 1,536 | 5,246 | ||
Operating Segments [Member] | Health Care [Member] | Subscriptions and Transactions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 619 | 1,676 | ||
Operating Segments [Member] | Health Care [Member] | Software Licenses [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 1 | 884 | ||
Operating Segments [Member] | Health Care [Member] | Service and Maintenance [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 916 | 2,686 | ||
Operating Segments [Member] | Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 3,466 | 9,579 | ||
Operating Segments [Member] | Other [Member] | Subscriptions and Transactions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 26 | 112 | ||
Operating Segments [Member] | Other [Member] | Software Licenses [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 1,047 | 2,455 | ||
Operating Segments [Member] | Other [Member] | Service and Maintenance [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 2,076 | 6,386 | ||
Operating Segments [Member] | Other [Member] | Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | $ 317 | $ 626 | ||
[1] | Cloud Solutions segment | ||||
[2] | Other segment |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Performance obligations | $ 387,300 | $ 387,300 | |
Deferred revenue | $ 98,804 | 88,888 | $ 66,400 |
Capitalized costs are amortized on a ratable basis over the estimated period | 5 years | ||
Remainder of 2018 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Performance obligations | 170,400 | $ 170,400 | |
Capitalized Obtaining Costs [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Capitalized contract costs and capitalized fulfillment costs | 5,500 | 5,500 | |
Amortization expense | 500 | 1,300 | |
Capitalized Fulfillment Costs [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Capitalized contract costs and capitalized fulfillment costs | 16,400 | 16,400 | |
Amortization expense | $ 1,000 | $ 2,500 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Contract Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2019 |
Contract with Customer, Asset and Liability [Abstract] | |||
Accounts receivable | $ 76,240 | $ 72,391 | $ 72,391 |
Contract assets | 6,129 | 5,118 | 5,118 |
Deferred revenue | $ 98,804 | 88,888 | $ 66,400 |
Accounts receivable | 3,849 | ||
Contract assets | 1,011 | ||
Deferred revenue | $ 9,916 |
Revenue Recognition - Summary_3
Revenue Recognition - Summary of Impact of Adopting the New Revenue Standard on Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Current assets: | |||||||
Cash and cash equivalents | $ 79,475 | $ 121,860 | $ 92,101 | ||||
Cash held for customers | 4,305 | 2,753 | 2,907 | ||||
Marketable securities | 8,515 | 10,012 | |||||
Accounts receivable, net | 76,240 | 74,305 | |||||
Prepaid expenses and other current assets | 32,111 | 19,781 | |||||
Total current assets | 200,646 | 228,711 | |||||
Property and equipment, net | 54,696 | 28,895 | |||||
Goodwill | 204,167 | 200,024 | |||||
Intangible assets, net | 168,819 | 161,785 | |||||
Other assets | 31,610 | 16,553 | |||||
Total assets | 659,938 | 635,968 | |||||
Current liabilities: | |||||||
Accounts payable | 11,530 | 10,251 | |||||
Accrued expenses and other current liabilities | 32,257 | 34,994 | |||||
Customer account liabilities | 4,305 | 2,753 | |||||
Deferred revenue | 80,082 | 75,356 | |||||
Total current liabilities | 128,174 | 123,354 | |||||
Borrowings under credit facility | 110,000 | 150,000 | |||||
Deferred revenue, non-current | 18,722 | 23,371 | |||||
Deferred income taxes | 8,311 | 8,367 | |||||
Other liabilities | 20,398 | 19,944 | |||||
Total liabilities | 285,605 | 325,036 | |||||
Stockholders' equity | |||||||
Preferred Stock, $.001 par value | |||||||
Common Stock, $.001 par value | 47 | 45 | |||||
Additional paid-in-capital | 711,558 | 678,549 | |||||
Accumulated other comprehensive loss | (35,200) | (30,633) | |||||
Treasury stock, at cost | (127,095) | (129,914) | |||||
Accumulated deficit | (174,977) | (207,115) | |||||
Total stockholders' equity | 374,333 | $ 360,845 | 310,932 | $ 297,788 | $ 281,950 | $ 261,956 | |
Total liabilities and stockholders' equity | 659,938 | $ 635,968 | |||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | ||||||
Cash held for customers | 0 | ||||||
Marketable securities | 0 | ||||||
Accounts receivable, net | 1,235 | ||||||
Prepaid expenses and other current assets | (11,158) | ||||||
Total current assets | (9,923) | ||||||
Goodwill | 0 | ||||||
Intangible assets, net | 0 | ||||||
Other assets | (16,142) | ||||||
Total assets | (26,065) | ||||||
Current liabilities: | |||||||
Accounts payable | 0 | ||||||
Accrued expenses and other current liabilities | 0 | ||||||
Customer account liabilities | 0 | ||||||
Deferred revenue | 4,306 | $ 9,839 | |||||
Total current liabilities | 4,306 | ||||||
Borrowings under credit facility | 0 | ||||||
Deferred revenue, non-current | 5,224 | ||||||
Deferred income taxes | (456) | ||||||
Other liabilities | 0 | ||||||
Total liabilities | 9,074 | ||||||
Stockholders' equity | |||||||
Preferred Stock, $.001 par value | 0 | ||||||
Common Stock, $.001 par value | 0 | ||||||
Additional paid-in-capital | 0 | ||||||
Accumulated other comprehensive loss | 91 | ||||||
Treasury stock, at cost | 0 | ||||||
Accumulated deficit | (35,230) | $ 26,263 | |||||
Total stockholders' equity | (35,139) | ||||||
Total liabilities and stockholders' equity | (26,065) | ||||||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 79,475 | ||||||
Cash held for customers | 4,305 | ||||||
Marketable securities | 8,515 | ||||||
Accounts receivable, net | 77,475 | ||||||
Prepaid expenses and other current assets | 20,953 | ||||||
Total current assets | 190,723 | ||||||
Property and equipment, net | 54,696 | ||||||
Goodwill | 204,167 | ||||||
Intangible assets, net | 168,819 | ||||||
Other assets | 15,468 | ||||||
Total assets | 633,873 | ||||||
Current liabilities: | |||||||
Accounts payable | 11,530 | ||||||
Accrued expenses and other current liabilities | 32,257 | ||||||
Customer account liabilities | 4,305 | ||||||
Deferred revenue | 84,388 | ||||||
Total current liabilities | 132,480 | ||||||
Borrowings under credit facility | 110,000 | ||||||
Deferred revenue, non-current | 23,946 | ||||||
Deferred income taxes | 7,855 | ||||||
Other liabilities | 20,398 | ||||||
Total liabilities | 294,679 | ||||||
Stockholders' equity | |||||||
Preferred Stock, $.001 par value | 0 | ||||||
Common Stock, $.001 par value | 47 | ||||||
Additional paid-in-capital | 711,558 | ||||||
Accumulated other comprehensive loss | (35,109) | ||||||
Treasury stock, at cost | (127,095) | ||||||
Accumulated deficit | (210,207) | ||||||
Total stockholders' equity | 339,194 | ||||||
Total liabilities and stockholders' equity | $ 633,873 |
Revenue Recognition - Summary_4
Revenue Recognition - Summary of Impact of Adopting the New Revenue Standard on Condensed Consolidated Balance Sheet (Parenthetical) (Detail) - $ / shares | Mar. 31, 2019 | Jun. 30, 2018 |
Revenue from Contract with Customers [Line Items] | ||
Preferred Stock, $.001 par value | $ 0.001 | $ 0.001 |
Common Stock, $.001 par value | 0.001 | $ 0.001 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Revenue from Contract with Customers [Line Items] | ||
Preferred Stock, $.001 par value | 0.001 | |
Common Stock, $.001 par value | 0.001 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Revenue from Contract with Customers [Line Items] | ||
Preferred Stock, $.001 par value | 0.001 | |
Common Stock, $.001 par value | $ 0.001 |
Revenue Recognition - Summary_5
Revenue Recognition - Summary of Impact of Adopting the New Revenue Standard on Condensed Consolidated Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Revenues: | |||||
Revenues | $ 106,438 | $ 101,136 | $ 313,721 | $ 287,627 | |
Cost of revenues: | |||||
Total cost of revenues | 45,713 | 45,795 | 135,824 | 127,529 | |
Gross profit | 60,725 | 177,897 | |||
Operating expenses: | |||||
Sales and marketing | 25,165 | 22,465 | 70,772 | 63,255 | |
Product development and engineering | 16,887 | 14,179 | 50,267 | 41,981 | |
General and administrative | 13,175 | 12,763 | 38,944 | 35,589 | |
Amortization of acquisition-related intangible assets | 5,230 | 5,818 | 15,809 | 16,708 | |
Total operating expenses | 60,457 | 55,225 | 175,792 | 157,533 | |
Income from operations | 268 | 116 | 2,105 | 2,565 | |
Other expense, net | (695) | (2,334) | |||
Loss before income taxes | (427) | (995) | (229) | (6,186) | |
Benefit (expense) from income taxes | 1,251 | (7) | 6,104 | 4,031 | $ (4,100) |
Net income (loss) | $ 824 | $ (1,002) | $ 5,875 | $ (2,155) | |
Net income (loss) per share: | |||||
Basic | $ 0.02 | $ (0.03) | $ 0.15 | $ (0.06) | |
Diluted | $ 0.02 | $ (0.03) | $ 0.14 | $ (0.06) | |
Shares used in computing net income (loss) per share: | |||||
Basic | 40,911 | 38,348 | 40,412 | 38,055 | |
Diluted | 41,625 | 38,348 | 41,650 | 38,055 | |
Other comprehensive income (loss), net of tax: | |||||
Unrealized gain on available for sale securities | $ (5) | $ 4 | $ (11) | $ 7 | |
Unrealized gain (loss) on interest rate hedging transactions | 841 | (1,004) | 1,952 | (1,373) | |
Minimum pension liability adjustments | 18 | (56) | (38) | 86 | |
Foreign currency translation adjustments | 1,322 | 5,652 | (2,588) | 7,798 | |
Other comprehensive income (loss), net of tax: | 504 | 6,596 | (4,567) | 9,250 | |
Comprehensive income (loss) | 1,328 | 5,594 | 1,308 | 7,095 | |
Subscriptions and Transactions [Member] | |||||
Revenues: | |||||
Revenues | 75,502 | 67,378 | 216,558 | 191,279 | |
Cost of revenues: | |||||
Cost of revenue | 31,623 | 30,771 | 94,644 | 85,404 | |
Software Licenses [Member] | |||||
Revenues: | |||||
Revenues | 3,802 | 3,134 | 13,979 | 8,119 | |
Cost of revenues: | |||||
Cost of revenue | 226 | 233 | 667 | 632 | |
Service and Maintenance [Member] | |||||
Revenues: | |||||
Revenues | 25,856 | 29,476 | 80,047 | 85,251 | |
Cost of revenues: | |||||
Cost of revenue | 12,818 | 13,861 | 38,052 | 39,195 | |
Product and Service, Other [Member] | |||||
Revenues: | |||||
Revenues | 1,278 | 1,148 | 3,137 | 2,978 | |
Cost of revenues: | |||||
Cost of revenue | 1,046 | $ 930 | 2,461 | $ 2,298 | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | (491) | (1,457) | |||
Cost of revenues: | |||||
Total cost of revenues | 344 | 1,768 | |||
Gross profit | (835) | (3,225) | |||
Operating expenses: | |||||
Sales and marketing | 256 | 621 | |||
Product development and engineering | 44 | 222 | |||
General and administrative | 0 | 0 | |||
Amortization of acquisition-related intangible assets | 0 | 0 | |||
Total operating expenses | 300 | 843 | |||
Income from operations | (1,135) | (4,068) | |||
Other expense, net | 0 | 0 | |||
Loss before income taxes | (1,135) | (4,068) | |||
Benefit (expense) from income taxes | 839 | (4,899) | |||
Net income (loss) | $ (296) | $ (8,967) | |||
Net income (loss) per share: | |||||
Basic | $ (0.01) | $ (0.07) | |||
Diluted | $ (0.01) | $ (0.06) | |||
Shares used in computing net income (loss) per share: | |||||
Basic | 0 | 0 | |||
Diluted | (714,000) | (1,238,000) | |||
Other comprehensive income (loss), net of tax: | |||||
Unrealized gain on available for sale securities | $ 0 | $ 0 | |||
Unrealized gain (loss) on interest rate hedging transactions | 0 | 0 | |||
Minimum pension liability adjustments | 0 | 0 | |||
Foreign currency translation adjustments | (93) | 92 | |||
Other comprehensive income (loss), net of tax: | (93) | 92 | |||
Comprehensive income (loss) | (389) | (8,875) | |||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | 105,947 | 312,264 | |||
Cost of revenues: | |||||
Total cost of revenues | 46,057 | 137,592 | |||
Gross profit | 59,890 | 174,672 | |||
Operating expenses: | |||||
Sales and marketing | 25,421 | 71,393 | |||
Product development and engineering | 16,931 | 50,489 | |||
General and administrative | 13,175 | 38,944 | |||
Amortization of acquisition-related intangible assets | 5,230 | 15,809 | |||
Total operating expenses | 60,757 | 176,635 | |||
Income from operations | (867) | (1,963) | |||
Other expense, net | (695) | (2,334) | |||
Loss before income taxes | (1,562) | (4,297) | |||
Benefit (expense) from income taxes | 2,090 | 1,205 | |||
Net income (loss) | $ 528 | $ (3,092) | |||
Net income (loss) per share: | |||||
Basic | $ 0.01 | $ 0.08 | |||
Diluted | $ 0.01 | $ 0.08 | |||
Shares used in computing net income (loss) per share: | |||||
Basic | 40,911,000 | 40,412,000 | |||
Diluted | 40,911,000 | 40,412,000 | |||
Other comprehensive income (loss), net of tax: | |||||
Unrealized gain on available for sale securities | $ 5 | $ 11 | |||
Unrealized gain (loss) on interest rate hedging transactions | (841) | (1,952) | |||
Minimum pension liability adjustments | 18 | (38) | |||
Foreign currency translation adjustments | 1,229 | (2,496) | |||
Other comprehensive income (loss), net of tax: | 411 | (4,475) | |||
Comprehensive income (loss) | 939 | (7,567) | |||
Accounting Standards Update 2014-09 [Member] | Subscriptions and Transactions [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | (833) | 393 | |||
Cost of revenues: | |||||
Cost of revenue | 29 | 678 | |||
Accounting Standards Update 2014-09 [Member] | Subscriptions and Transactions [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | 74,669 | 216,951 | |||
Cost of revenues: | |||||
Cost of revenue | 31,652 | 95,322 | |||
Accounting Standards Update 2014-09 [Member] | Software Licenses [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | (180) | (3,562) | |||
Cost of revenues: | |||||
Cost of revenue | 0 | 2 | |||
Accounting Standards Update 2014-09 [Member] | Software Licenses [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | 3,622 | 10,417 | |||
Cost of revenues: | |||||
Cost of revenue | 226 | 669 | |||
Accounting Standards Update 2014-09 [Member] | Service and Maintenance [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | 540 | 1,767 | |||
Cost of revenues: | |||||
Cost of revenue | 303 | 1,104 | |||
Accounting Standards Update 2014-09 [Member] | Service and Maintenance [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | 26,396 | 81,814 | |||
Cost of revenues: | |||||
Cost of revenue | 13,121 | 39,156 | |||
Accounting Standards Update 2014-09 [Member] | Product and Service, Other [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | (18) | (55) | |||
Cost of revenues: | |||||
Cost of revenue | 12 | (16) | |||
Accounting Standards Update 2014-09 [Member] | Product and Service, Other [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Revenues: | |||||
Revenues | 1,260 | 3,082 | |||
Cost of revenues: | |||||
Cost of revenue | $ 1,058 | $ 2,445 |
Revenue Recognition - Summary_6
Revenue Recognition - Summary of Impact of Adopting the New Revenue Standard on Condensed Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||||
Net income (loss) | $ 824 | $ (1,002) | $ 5,875 | $ (2,155) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Amortization of acquisition-related intangible assets | 5,230 | 5,818 | 15,809 | 16,708 |
Stock-based compensation plan expense | 31,906 | 25,132 | ||
Depreciation and other amortization | 5,576 | $ 5,095 | 16,767 | 14,638 |
Gain on sale of cost-method investment | (237) | |||
Deferred income tax benefit | (8,284) | (5,458) | ||
Provision for allowances on accounts receivable | 167 | 117 | ||
Amortization of debt issuance costs | 311 | 819 | ||
Amortization of discount on investments | (108) | (32) | ||
Loss (gain) on disposal of equipment | 596 | (10) | ||
Loss (gain) on foreign exchange | 410 | (160) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (3,520) | (23,030) | ||
Prepaid expenses and other current assets | (3,913) | (54) | ||
Other assets | (1,483) | (337) | ||
Accounts payable | 1,485 | (50) | ||
Accrued expenses | (1,513) | 2,884 | ||
Customer account liabilities | 1,562 | (5,291) | ||
Deferred revenue | 7,835 | 6,053 | ||
Other liabilities | (650) | 175 | ||
Net cash provided by operating activities | 63,015 | $ 35,523 | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Operating activities: | ||||
Net income (loss) | (296) | (8,967) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Amortization of acquisition-related intangible assets | 0 | 0 | ||
Stock-based compensation plan expense | 11 | |||
Deferred income tax benefit | 4,899 | |||
Loss (gain) on foreign exchange | (8) | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 663 | |||
Prepaid expenses and other current assets | 2,724 | |||
Other assets | 943 | |||
Deferred revenue | (265) | |||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Operating activities: | ||||
Net income (loss) | 528 | (3,092) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Amortization of acquisition-related intangible assets | $ 5,230 | 15,809 | ||
Stock-based compensation plan expense | 31,917 | |||
Depreciation and other amortization | 16,767 | |||
Gain on sale of cost-method investment | (237) | |||
Deferred income tax benefit | (3,385) | |||
Provision for allowances on accounts receivable | 167 | |||
Amortization of debt issuance costs | 311 | |||
Amortization of discount on investments | (108) | |||
Loss (gain) on disposal of equipment | 596 | |||
Loss (gain) on foreign exchange | 402 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (2,857) | |||
Prepaid expenses and other current assets | (1,189) | |||
Other assets | (540) | |||
Accounts payable | 1,485 | |||
Accrued expenses | (1,513) | |||
Customer account liabilities | 1,562 | |||
Deferred revenue | 7,570 | |||
Other liabilities | (650) | |||
Net cash provided by operating activities | $ 63,015 |
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, 2019 | Jun. 30, 2018 |
Assets | ||
Total available for sale debt securities | $ 8,453 | $ 9,947 |
Short-term derivative interest rate swap | 432 | |
Long-term derivative interest rate swap | 249 | |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Money market funds (cash and cash equivalents) | 1,769 | 154 |
Total available for sale debt securities | 8,453 | 9,947 |
Total assets | 10,903 | 12,691 |
Liabilities | ||
Total liabilities | 43 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | ||
Assets | ||
Short-term derivative interest rate swap | 432 | 407 |
Long-term derivative interest rate swap | 249 | 2,183 |
Liabilities | ||
Long-term derivative interest rate swap | 43 | |
Fair Value, Measurements, Recurring [Member] | U.S. Corporate [Member] | ||
Assets | ||
Total available for sale debt securities | 998 | 3,467 |
Fair Value, Measurements, Recurring [Member] | Government - U.S. [Member] | ||
Assets | ||
Total available for sale debt securities | 7,455 | 6,480 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets | ||
Money market funds (cash and cash equivalents) | 1,769 | 154 |
Total assets | 1,769 | 154 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets | ||
Total available for sale debt securities | 8,453 | 9,947 |
Total assets | 9,134 | 12,537 |
Liabilities | ||
Total liabilities | 43 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | ||
Assets | ||
Short-term derivative interest rate swap | 432 | 407 |
Long-term derivative interest rate swap | 249 | 2,183 |
Liabilities | ||
Long-term derivative interest rate swap | 43 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Corporate [Member] | ||
Assets | ||
Total available for sale debt securities | 998 | 3,467 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Government - U.S. [Member] | ||
Assets | ||
Total available for sale debt securities | $ 7,455 | $ 6,480 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certain other investments accounted for at cost | $ 4,600 | $ 4,400 |
Borrowings under credit facility | 110,000 | 150,000 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Borrowings under credit facility | 110,000 | |
Israeli Severance Arrangements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of assets related to deposits | $ 1,300 | $ 1,400 |
Fair Value - Marketable Securit
Fair Value - Marketable Securities by Major Security Type (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Marketable Securities [Line Items] | ||
Held to Maturity | $ 62 | $ 65 |
Available for Sale | 8,453 | 9,947 |
Total | 8,515 | 10,012 |
Corporate and Other Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Held to Maturity | 62 | 65 |
Available for Sale | 8,453 | 9,947 |
Total | $ 8,515 | $ 10,012 |
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, 2019 | Jun. 30, 2018 |
Fair Value Disclosures [Abstract] | ||
Due within 1 year | $ 8,453 | |
Due in 1 year through 5 years | 0 | |
Total | $ 8,453 | $ 9,947 |
Fair Value - Summary of Gross U
Fair Value - Summary of Gross Unrealized Losses and Fair Values of Available for Sale Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Schedule Of Available For Sale Securities Debt Maturities [Line Items] | ||
Less than 12 Months, Fair Value | $ 3,488 | $ 6,480 |
Less than 12 Months, Unrealized Loss | (1) | (6) |
Government - U.S. [Member] | ||
Schedule Of Available For Sale Securities Debt Maturities [Line Items] | ||
Less than 12 Months, Fair Value | 3,488 | 6,480 |
Less than 12 Months, Unrealized Loss | $ (1) | $ (6) |
Business and Asset Acquisitio_2
Business and Asset Acquisitions - Fiscal Year 2019 Acquisition - Additional Information (Detail) $ in Thousands, £ in Millions | Mar. 06, 2019USD ($) | Mar. 06, 2019GBP (£) | Jul. 02, 2018USD ($) | Jul. 02, 2018GBP (£) | Mar. 31, 2019USD ($) | Mar. 31, 2019GBP (£) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 204,167 | $ 204,167 | $ 200,024 | ||||||
Payments to acquire business | £ 16 | 42,400 | $ 18,500 | ||||||
Cash paid for acquisition | 45,725 | $ 14,865 | |||||||
Payment to acquire building | 20,700 | £ 16 | |||||||
Microgen Banking Systems Limited [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 2,700 | 2,700 | |||||||
Identifiable intangible assets | 8,400 | $ 8,400 | |||||||
Estimated useful life of intangible assets acquired | 13 years | ||||||||
Acquisition expenses | $ 1,400 | ||||||||
Payments to acquire business | $ 9,100 | £ 6.9 | |||||||
Experian Ltd [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 2,700 | 2,700 | |||||||
Identifiable intangible assets | $ 12,600 | $ 12,600 | |||||||
Cash paid for acquisition | $ 12,600 | £ 9.5 |
Business and Asset Acquisitio_3
Business and Asset Acquisitions - Fiscal Year 2018 Acquisitions - Additional Information (Detail) £ in Millions, $ in Millions, $ in Millions | Oct. 04, 2017USD ($)shares | Oct. 04, 2017GBP (£)shares | Aug. 14, 2017USD ($)Installments | Aug. 14, 2017SGD ($)Installments | Mar. 31, 2019GBP (£) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($)Business | Aug. 14, 2017SGD ($) |
Business Acquisition [Line Items] | ||||||||
Number of business acquired | Business | 2 | |||||||
Payments to acquire business | £ 16 | $ 42.4 | $ 18.5 | |||||
First Capital Cashflow Ltd. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid for acquisition | $ 13.9 | £ 10.5 | ||||||
Shares issued | shares | 42,080 | 42,080 | ||||||
Stock vesting period | 5 years | 5 years | ||||||
Decillion Solutions Pte Ltd [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business | $ 4.6 | $ 6.2 | ||||||
Cash paid for acquisition | $ | 2.8 | |||||||
Note payable | $ 1.8 | $ 2.5 | ||||||
Note payable, number of installments | Installments | 10 | 10 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator—basic and diluted: | ||||
Net income (loss) | $ 824 | $ (1,002) | $ 5,875 | $ (2,155) |
Denominator: | ||||
Shares used in computing basic net income (loss) per share attributable to common stockholders | 40,911 | 38,348 | 40,412 | 38,055 |
Impact of dilutive securities | $ 714 | $ 1,238 | ||
Shares used in computing diluted net income (loss) per share attributable to common stockholders | 41,625 | 38,348 | 41,650 | 38,055 |
Basic | $ 0.02 | $ (0.03) | $ 0.15 | $ (0.06) |
Diluted | $ 0.02 | $ (0.03) | $ 0.14 | $ (0.06) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) shares in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2018shares | Mar. 31, 2018shares | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from calculation of diluted earnings per share | 2.5 | 2.7 |
Number of shares purchased through issue of warrants | 6.3 | 6.3 |
Operations by Segments and Ge_3
Operations by Segments and Geographic Areas - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Operations by Segments and Ge_4
Operations by Segments and Geographic Areas - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment revenue: | ||||
Total segment revenue | $ 106,438 | $ 101,136 | $ 313,721 | $ 287,627 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | 268 | 116 | 2,105 | 2,565 |
Operating Segments [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 106,438 | 101,136 | 313,721 | 287,627 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | 18,933 | 17,972 | 58,374 | 53,022 |
Cloud Solutions [Member] | Operating Segments [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 51,439 | 46,486 | 151,342 | 133,448 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | 11,463 | 9,308 | 32,497 | 28,342 |
Banking Solutions [Member] | Operating Segments [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 23,903 | 22,900 | 69,283 | 65,175 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | 2,082 | 1,630 | 6,097 | 4,939 |
Payments and Transactional Documents [Member] | Operating Segments [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 26,094 | 27,124 | 78,271 | 75,516 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | 6,933 | 7,661 | 22,799 | 21,755 |
Other [Member] | Operating Segments [Member] | ||||
Segment revenue: | ||||
Total segment revenue | 5,002 | 4,626 | 14,825 | 13,488 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | $ (1,545) | $ (627) | $ (3,019) | $ (2,014) |
Operations by Segments and Ge_5
Operations by Segments and Geographic Areas - Reconciliation of Measure of Total Segment Profit to GAAP Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Total measure of segment profit | $ 268 | $ 116 | $ 2,105 | $ 2,565 | |
Less: | |||||
Amortization of acquisition-related intangible assets | (5,230) | (5,818) | (15,809) | (16,708) | |
Stock-based compensation plan expense | (31,906) | (25,132) | |||
Restructuring expense | 0 | 0 | |||
Other expense, net | (695) | (1,111) | (2,334) | (8,751) | |
Loss before income taxes | (427) | (995) | (229) | (6,186) | |
Operating Segments [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Total measure of segment profit | 18,933 | 17,972 | 58,374 | 53,022 | |
Segment Reconciling Items [Member] | |||||
Less: | |||||
Amortization of acquisition-related intangible assets | (5,230) | (5,818) | (15,809) | (16,708) | |
Stock-based compensation plan expense | (10,015) | (8,592) | (31,906) | (25,132) | |
Acquisition and integration-related expenses | (1,373) | (224) | (2,966) | (1,596) | |
Restructuring expense | (1,332) | (1,485) | (1,963) | (1,476) | |
Minimum pension liability adjustments | 93 | 3 | 248 | (35) | |
Global ERP system implementation and other costs | (557) | (1,558) | (3,110) | (4,973) | |
Other expense, net | [1] | (946) | (1,293) | (3,097) | (9,288) |
Loss before income taxes | $ (427) | $ (995) | $ (229) | $ (6,186) | |
[1] | On July 1, 2018, we adopted an accounting standard update that changes the classification of certain pension related items. For purposes of this reconciliation of segment profit, we have presented pension related adjustments discretely, not as a component of other expense, net. |
Operations by Segments and Ge_6
Operations by Segments and Geographic Areas - Schedule of Segment Depreciation and Amortization Expense Included in Measure of Segment Profit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | $ 5,576 | $ 5,095 | $ 16,767 | $ 14,638 |
Cloud Solutions [Member] | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 2,854 | 2,671 | 8,663 | 7,649 |
Banking Solutions [Member] | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 1,919 | 1,605 | 5,634 | 4,634 |
Payments and Transactional Documents [Member] | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 719 | 722 | 2,202 | 2,066 |
Other [Member] | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | $ 84 | $ 97 | $ 268 | $ 289 |
Operations by Segments and Ge_7
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, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | $ 106,438 | $ 101,136 | $ 313,721 | $ 287,627 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | 66,227 | 60,984 | 194,132 | 176,783 |
United Kingdom [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | 24,942 | 24,388 | 73,313 | 66,927 |
Switzerland [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | 9,682 | 10,613 | 29,289 | 29,146 |
Other [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from unaffiliated customers | $ 5,587 | $ 5,151 | $ 16,987 | $ 14,771 |
Operations by Segments and Ge_8
Operations by Segments and Geographic Areas - Schedule of Long-Lived Assets, Based on Geographical Location, Excluding Deferred Tax Assets and Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Long-lived assets | ||
Long-lived assets | $ 84,312 | $ 45,448 |
United States [Member] | ||
Long-lived assets | ||
Long-lived assets | 47,516 | 36,374 |
United Kingdom [Member] | ||
Long-lived assets | ||
Long-lived assets | 31,982 | 5,586 |
Other [Member] | ||
Long-lived assets | ||
Long-lived assets | $ 4,814 | $ 3,488 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Excess tax expense (benefits) | $ (1,251) | $ 7 | $ (6,104) | $ (4,031) | $ 4,100 | |
Discrete tax benefit relating to stock-based compensation | 800,000 | 5,400,000 | ||||
Discrete tax benefit relating to the Tax Act | $ 4,400 | |||||
Discrete tax benefit relating to the repatriation of foreign earnings | 500 | |||||
Unrecognized tax benefits decrease as a result of the expiration of certain statutes | 400 | |||||
Valuation allowance against certain deferred tax assets | $ 33,000 | $ 33,000 | ||||
Federal corporate income tax rate | 35.00% | 21.00% | ||||
Non-Recurring income tax benefit | 3,700 | |||||
Expected tax refund | $ 700 | |||||
Percentage of net operating losses can be carried forward indefinitely | 80.00% | 80.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 204,167 | $ 200,024 |
Goodwill and Other Intangible_4
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, 2019 | Jun. 30, 2018 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 466,469 | $ 435,692 | |
Accumulated Amortization | (297,650) | (273,907) | |
Net Carrying Value | 168,819 | 161,785 | |
Goodwill | 204,167 | 200,024 | |
Total intangible assets | 372,986 | 361,809 | |
Customer Related [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 220,669 | 201,214 | |
Accumulated Amortization | (142,270) | (134,133) | |
Net Carrying Value | $ 78,399 | $ 67,081 | |
Weighted Average Remaining Life | 8 years 10 months 24 days | 8 years 4 months 24 days | |
Core Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 130,233 | $ 130,257 | |
Accumulated Amortization | (88,264) | (82,815) | |
Net Carrying Value | $ 41,969 | $ 47,442 | |
Weighted Average Remaining Life | 7 years 7 months 6 days | 8 years 1 month 6 days | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 21,933 | $ 21,983 | |
Accumulated Amortization | (18,529) | (17,299) | |
Net Carrying Value | $ 3,404 | $ 4,684 | |
Weighted Average Remaining Life | 5 years 1 month 6 days | 5 years 3 months 18 days | |
Software Developed Other Than For Internal Use [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 22,241 | $ 19,527 | |
Accumulated Amortization | (8,840) | (6,265) | |
Net Carrying Value | $ 13,401 | $ 13,262 | |
Weighted Average Remaining Life | 3 years 3 months 18 days | 4 years | |
Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | [1] | $ 71,393 | $ 62,711 |
Accumulated Amortization | [1] | (39,747) | (33,395) |
Net Carrying Value | [1] | $ 31,646 | $ 29,316 |
Weighted Average Remaining Life | [1] | 4 years 3 months 18 days | 4 years 7 months 6 days |
[1] | Software includes purchased software and software developed for internal use. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Remaining 2019 | $ 5,483 |
2020 | 19,713 |
2021 | 18,444 |
2022 | 16,596 |
2023 | 15,272 |
2024 and thereafter | 48,264 |
Software Developed Other Than For Internal Use [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining 2019 | 898 |
2020 | 3,593 |
2021 | 3,593 |
2022 | 3,593 |
2023 | 679 |
2024 and thereafter | 117 |
Software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining 2019 | 2,340 |
2020 | 8,410 |
2021 | 6,115 |
2022 | 4,493 |
2023 | 2,816 |
2024 and thereafter | $ 2,975 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Rollforward of Goodwill Balances, by Reportable Segment (Detail) $ in Thousands | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 200,024 |
Goodwill acquired during the period | 5,344 |
Impact of foreign currency translation | (1,201) |
Ending Balance | 204,167 |
Cloud Solutions [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 90,270 |
Goodwill acquired during the period | 0 |
Impact of foreign currency translation | (463) |
Ending Balance | 89,807 |
Banking Solutions [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 35,880 |
Goodwill acquired during the period | 0 |
Impact of foreign currency translation | 0 |
Ending Balance | 35,880 |
Payments and Transactional Documents [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 65,680 |
Goodwill acquired during the period | 5,344 |
Impact of foreign currency translation | (738) |
Ending Balance | 70,286 |
Other [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 8,194 |
Goodwill acquired during the period | 0 |
Impact of foreign currency translation | 0 |
Ending Balance | $ 8,194 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Rollforward of Goodwill Balances, by Reportable Segment (Parenthetical) (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill accumulated impairment loss | $ 7.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | |
Contingencies And Commitments [Line Items] | ||
Restructuring expenses | $ 0 | $ 0 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Detail) $ / shares in Units, $ in Millions | Aug. 14, 2017USD ($)Installments | Dec. 31, 2012USD ($)$ / sharesshares | Mar. 31, 2019USD ($)shares | Jun. 30, 2020 | Aug. 14, 2017SGD ($) |
Debt Instrument [Line Items] | |||||
Debt instrument term (years) | 5 years | ||||
Warrant expiration period | 150 days | ||||
Warrants outstanding | shares | 0 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 932,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum capacity borrowing amount under credit facility | $ 300,000,000 | ||||
Borrowings under credit facility | 110,000,000 | ||||
1.50% Convertible Senior Notes Maturing on December 1, 2017 [Member] | Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of warrants, net of issue costs | $ 25,800,000 | ||||
Purchase of common stock | shares | 6,300,000 | ||||
Common stock, strike price per share | $ / shares | $ 40.04 | ||||
Warrants [Member] | |||||
Debt Instrument [Line Items] | |||||
Warrants exercisable beginning | Mar. 1, 2018 | ||||
Warrants exercisable ending | Oct. 2, 2018 | ||||
Maximum [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional borrowing capacity | $ 150,000,000 | ||||
Consolidated Net Leverage Ratio | 3.75 | ||||
Maximum [Member] | Step Down [Member] | Scenario, Forecast [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated Net Leverage Ratio | 3.50 | ||||
Minimum [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated Interest Coverage Ratio | 3 | ||||
Decillion Solutions Pte Ltd [Member] | |||||
Debt Instrument [Line Items] | |||||
Note payable | $ 1,800,000 | $ 2.5 | |||
Note payable, number of installments | Installments | 10 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2019 | Jul. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2019 | |
Derivatives, Fair Value [Line Items] | ||||
Ineffective portion of hedge | $ 0 | $ 0 | ||
Amounts excluded from assessment of hedge effectiveness | 0 | 0 | ||
Unrealized gain in accumulated other comprehensive loss | 600,000 | |||
Reclassification of unrealized gain from accumulated other comprehensive loss to earnings | $ 500,000 | 500,000 | 500,000 | |
Interest Rate Swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional debt value | $ 80,000,000 | $ 100,000,000 | $ 80,000,000 | $ 80,000,000 |
Agreement date | Jul. 31, 2017 | |||
Agreement effective date | Dec. 1, 2017 | |||
Agreement maturity date | Jul. 16, 2023 | Dec. 1, 2021 | ||
Fixed interest rate | 2.125% | 1.9275% | 2.125% | 2.125% |
Derivative Instruments - Summar
Derivative Instruments - Summary of Fair Values of the Interest Rate Swap (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Derivatives, Fair Value [Line Items] | ||
Short-term derivative asset | $ 432 | |
Long-term derivative asset | 249 | |
Prepaid Expenses and Other Current Assets [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Short-term derivative asset | $ 407 | |
Other Assets [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Long-term derivative asset | $ 2,183 | |
Other Liabilities [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Long-term derivative liability | $ 43 |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Effect of Derivative Interest Rate Swap and Related Tax Effects in AOCI (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instrument, beginning balance | $ 0 | |
Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) | $ (1,671) | 1,869 |
Amount of Gain (Loss) Reclassified from AOCI into Net Income (Loss) (Effective Portion) | (281) | 130 |
Income Tax Benefit (Provision) in OCI on Derivative Instruments | 0 | (626) |
Derivative instrument, ending balance | $ 1,373 | |
Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instrument, beginning balance | 2,590 | |
Derivative instrument, ending balance | $ 638 |
Postretirement and Other Empl_3
Postretirement and Other Employee Benefits - Components of Net Periodic Pension Costs for the Swiss Pension Plan (Detail) - Foreign Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Components of net periodic cost | ||||
Service cost | $ 625 | $ 650 | $ 1,900 | $ 1,914 |
Interest cost | 113 | 91 | 343 | 267 |
Prior service credit | (76) | (23) | (231) | (68) |
Net actuarial loss | 54 | 56 | 164 | 165 |
Expected return on plan assets | (342) | (306) | (1,040) | (901) |
Net periodic cost | $ 374 | $ 468 | $ 1,136 | $ 1,377 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - USD ($) $ in Millions | May 10, 2019 | Apr. 30, 2019 |
Subsequent Event [Line Items] | ||
Proceeds from Sale of Equity Method Investments | $ 7.7 | |
Gain (Loss) on Sale of Equity Investments | $ 7.3 | |
Bank Sight Software Systems, Inc [Member] | ||
Subsequent Event [Line Items] | ||
Cash paid for acquisition | $ 2.8 | |
Shares issued | 40,000 |