Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2014 | Feb. 28, 2014 | Jul. 31, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Jan-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'TIVO | ' | ' |
Entity Registrant Name | 'TIVO INC | ' | ' |
Entity Central Index Key | '0001088825 | ' | ' |
Current Fiscal Year End Date | '--01-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 120,691,616 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1,257 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $253,713 | $157,104 |
Short-term investments | 748,759 | 470,136 |
Accounts receivable, net of allowance for doubtful accounts of $429 and $362, respectively | 35,151 | 40,102 |
Inventories | 22,316 | 14,500 |
Deferred cost of technology revenues, current | 9,103 | 14,713 |
Deferred tax assets | 113,621 | 0 |
Prepaid expenses and other, current | 10,922 | 9,168 |
Total current assets | 1,193,585 | 705,723 |
LONG-TERM ASSETS | ' | ' |
Property and equipment, net of accumulated depreciation of $52,819 and $51,012, respectively | 10,687 | 10,300 |
Developed technology and intangible assets, net of accumulated amortization of $23,059 and $21,323, respectively | 7,328 | 16,086 |
Deferred cost of technology revenues, long-term | 18,108 | 16,011 |
Goodwill | 12,266 | 12,266 |
Deferred tax assets, long-term | 57,492 | 0 |
Prepaid expenses and other, long-term | 2,325 | 3,267 |
Total long-term assets | 108,206 | 57,930 |
Total assets | 1,301,791 | 763,653 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 22,918 | 24,492 |
Accrued liabilities | 50,204 | 50,043 |
Deferred revenue, current | 174,739 | 103,505 |
Total current liabilities | 247,861 | 178,040 |
LONG-TERM LIABILITIES | ' | ' |
Deferred revenue, long-term | 331,534 | 71,823 |
Convertible senior notes | 172,500 | 172,500 |
Deferred rent and other long-term liabilities | 811 | 526 |
Total long-term liabilities | 504,845 | 244,849 |
Total liabilities | 752,706 | 422,889 |
Commitments and Contingencies | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, par value $0.001: Authorized shares are 10,000,000; Issued and outstanding shares - none | 0 | 0 |
Common stock, par value $0.001: Authorized shares are 275,000,000; Issued shares are 134,588,456 and 129,545,267, respectively, and outstanding shares are 120,617,939 and 125,622,357, respectively | 134 | 129 |
Treasury stock, at cost - 13,970,517 shares and 3,922,910 shares, respectively | -154,071 | -37,791 |
Additional paid-in capital | 1,112,957 | 1,060,532 |
Accumulated deficit | -410,512 | -682,328 |
Accumulated other comprehensive income | 577 | 222 |
Total stockholders’ equity | 549,085 | 340,764 |
Total liabilities and stockholders’ equity | $1,301,791 | $763,653 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetcial) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $429 | $362 |
Property and equipment, accumulated depreciation | 52,819 | 51,012 |
Developed technology and intangible assets, accumulated amortization | $23,059 | $21,323 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 275,000,000 | 275,000,000 |
Common stock, shares issued | 134,588,456 | 129,545,267 |
Common stock, shares outstanding | 120,617,939 | 125,622,357 |
Treasury stock, shares | 13,970,517 | 3,922,910 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Revenues | ' | ' | ' |
Service revenues | $138,835 | $133,725 | $131,341 |
Technology revenues | 165,630 | 101,592 | 58,945 |
Hardware revenues | 101,788 | 68,591 | 47,893 |
Net revenues | 406,253 | 303,908 | 238,179 |
Cost of revenues | ' | ' | ' |
Cost of service revenues | 49,042 | 40,107 | 35,865 |
Cost of technology revenues | 25,673 | 23,175 | 23,056 |
Cost of hardware revenues | 96,633 | 78,183 | 59,439 |
Total cost of revenues | 171,348 | 141,465 | 118,360 |
Gross margin | 234,905 | 162,443 | 119,819 |
Research and development | 106,917 | 115,103 | 110,367 |
Sales and marketing | 39,003 | 30,353 | 26,388 |
Sales and marketing, subscription acquisition costs | 12,521 | 8,660 | 7,392 |
General and administrative | 77,311 | 87,075 | 96,502 |
Litigation Proceeds | -108,102 | -78,441 | -230,160 |
Total operating expenses | 127,650 | 162,750 | 10,489 |
Income (loss) from operations | 107,255 | -307 | 109,330 |
Interest income | 4,727 | 3,951 | 5,672 |
Interest expense and other income (expense) | -8,077 | -7,872 | -12,034 |
Income (loss) before income taxes | 103,905 | -4,228 | 102,968 |
Benefit from (provision for) income taxes | 167,911 | -1,036 | -807 |
Net income (loss) | 271,816 | -5,264 | 102,161 |
Net income (loss) per common share | ' | ' | ' |
Basic (in dollars per share) | $2.29 | ($0.04) | $0.88 |
Diluted (in dollars per share) | $1.99 | ($0.04) | $0.80 |
Income (loss) for purposes of computing net income (loss) per share: | ' | ' | ' |
Basic | 271,816 | -5,264 | 102,161 |
Diluted | $276,825 | ($5,264) | $109,140 |
Weighted average common and common equivalent shares: | ' | ' | ' |
Basic (in shares) | 118,445,466 | 119,411,727 | 116,592,943 |
Diluted (in shares) | 138,801,463 | 119,411,727 | 136,255,424 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $271,816 | ($5,264) | $102,161 |
Available-for-sale securities: | ' | ' | ' |
Unrealized gain (loss) on marketable securities | 355 | 162 | -27 |
Reclassification adjustment for gains on available-for-sale securities recognized during the period | 0 | 0 | 510 |
Subtotal available-for-sale securities | 355 | 162 | 483 |
Total comprehensive income (loss) | $272,171 | ($5,102) | $102,644 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | ||||||
Beginning Balance at Jan. 31, 2011 | $168,756 | $117 | ($8,660) | $956,947 | ($779,225) | ($423) |
Beginning Balance (in shares) at Jan. 31, 2011 | ' | ' | -945,556 | ' | ' | ' |
Beginning Balance (in shares) at Jan. 31, 2011 | ' | 117,420,874 | ' | ' | ' | ' |
Issuance of common stock related to exercise of common stock options (in shares) | ' | 1,735,003 | ' | ' | ' | ' |
Issuance of common stock related to exercise of common stock options | 11,297 | 3 | ' | 11,294 | ' | ' |
Issuance of common stock related to employee stock purchase plan (in shares) | ' | 806,793 | ' | ' | ' | ' |
Issuance of common stock related to employee stock purchase plan | 5,612 | 0 | ' | 5,612 | ' | ' |
Issuance of restricted shares of common stock (in shares) | ' | 3,424,768 | ' | ' | ' | ' |
Issuance of restricted shares of common stock | 0 | 3 | ' | -3 | ' | ' |
Forfeiture of unvested restricted shares (in shares) | ' | -313,952 | ' | ' | ' | ' |
Forfeiture of unvested restricted shares | 0 | ' | ' | ' | ' | ' |
Treasury Stock - repurchase of restricted stock (in shares) | ' | ' | -511,022 | ' | ' | ' |
Treasury Stock - repurchase of stock | -5,128 | ' | -5,128 | ' | ' | ' |
Recognition of stock based compensation | 29,846 | ' | ' | 29,846 | ' | ' |
Net income (loss) | 102,161 | ' | ' | ' | 102,161 | ' |
Other comprehensive income | 483 | ' | ' | ' | ' | 483 |
Ending Balance at Jan. 31, 2012 | 313,027 | 123 | -13,788 | 1,003,696 | -677,064 | 60 |
Ending Balance (in shares) at Jan. 31, 2012 | ' | 123,073,486 | ' | ' | ' | ' |
Ending Balance (in shares) at Jan. 31, 2012 | ' | ' | -1,456,578 | ' | ' | ' |
Issuance of common stock related to exercise of common stock options (in shares) | ' | 2,258,533 | ' | ' | ' | ' |
Issuance of common stock related to exercise of common stock options | 16,268 | 2 | ' | 16,266 | ' | ' |
Issuance of common stock related to employee stock purchase plan (in shares) | ' | 828,942 | ' | ' | ' | ' |
Issuance of common stock related to employee stock purchase plan | 5,817 | 1 | ' | 5,816 | ' | ' |
Issuance of restricted shares of common stock (in shares) | ' | 3,827,568 | ' | ' | ' | ' |
Issuance of restricted shares of common stock | 0 | 4 | ' | -4 | ' | ' |
Forfeiture of unvested restricted shares (in shares) | ' | -443,262 | ' | ' | ' | ' |
Forfeiture of unvested restricted shares | 0 | -1 | ' | 1 | ' | ' |
Treasury Stock - repurchase of restricted stock (in shares) | ' | ' | -2,466,332 | ' | ' | ' |
Treasury Stock - repurchase of stock | -24,003 | ' | -24,003 | ' | ' | ' |
Recognition of stock based compensation | 34,757 | ' | ' | 34,757 | ' | ' |
Net income (loss) | -5,264 | ' | ' | ' | -5,264 | 0 |
Other comprehensive income | 162 | ' | ' | ' | ' | 162 |
Ending Balance at Jan. 31, 2013 | 340,764 | 129 | -37,791 | 1,060,532 | -682,328 | 222 |
Ending Balance (in shares) at Jan. 31, 2013 | ' | 129,545,267 | ' | ' | ' | ' |
Ending Balance (in shares) at Jan. 31, 2013 | 3,922,910 | ' | -3,922,910 | ' | ' | ' |
Beginning Balance at Oct. 31, 2012 | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | 271,816 | ' |
Ending Balance at Jan. 31, 2014 | ' | ' | ' | ' | -410,512 | ' |
Beginning Balance at Jan. 31, 2013 | 340,764 | 129 | -37,791 | 1,060,532 | ' | 222 |
Beginning Balance (in shares) at Jan. 31, 2013 | 3,922,910 | ' | -3,922,910 | ' | ' | ' |
Beginning Balance (in shares) at Jan. 31, 2013 | ' | 129,545,267 | ' | ' | ' | ' |
Issuance of common stock related to exercise of common stock options (in shares) | ' | 1,013,782 | ' | ' | ' | ' |
Issuance of common stock related to exercise of common stock options | 7,868 | 1 | ' | 7,867 | ' | ' |
Excess tax benefit from employee stock-based compensation plans | 668 | ' | ' | 668 | ' | ' |
Issuance of common stock related to employee stock purchase plan (in shares) | ' | 762,864 | ' | ' | ' | ' |
Issuance of common stock related to employee stock purchase plan | 6,016 | 0 | ' | 6,016 | ' | ' |
Issuance of restricted shares of common stock (in shares) | ' | 3,738,468 | ' | ' | ' | ' |
Issuance of restricted shares of common stock | 0 | 4 | ' | -4 | ' | ' |
Forfeiture of unvested restricted shares (in shares) | ' | -471,925 | ' | ' | ' | ' |
Forfeiture of unvested restricted shares | 0 | 0 | ' | 0 | ' | ' |
Treasury Stock - repurchase of restricted stock (in shares) | ' | ' | -10,047,607 | ' | ' | ' |
Treasury Stock - repurchase of stock | -116,280 | ' | -116,280 | ' | ' | ' |
Recognition of stock based compensation | 37,878 | ' | ' | 37,878 | ' | ' |
Net income (loss) | 271,816 | ' | ' | ' | ' | ' |
Other comprehensive income | 355 | ' | ' | ' | ' | 355 |
Ending Balance at Jan. 31, 2014 | $549,085 | $134 | ($154,071) | $1,112,957 | ' | $577 |
Ending Balance (in shares) at Jan. 31, 2014 | ' | 134,588,456 | ' | ' | ' | ' |
Ending Balance (in shares) at Jan. 31, 2014 | 13,970,517 | ' | -13,970,517 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income (loss) | $271,816 | ($5,264) | $102,161 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization of property and equipment and intangibles | 9,830 | 9,332 | 8,805 |
Loss on impairment of intangible assets | 4,752 | 0 | 0 |
Stock-based compensation expense | 37,765 | 34,455 | 29,287 |
Amortization of discounts and premiums on investments | 9,016 | 4,852 | 4,068 |
Deferred income taxes | -171,113 | 0 | 0 |
Amortization of deferred debt issuance costs | 961 | 961 | 2,432 |
Impairment of a long-term cost method investment | 0 | 0 | 3,400 |
Utilization and write-down of trade credits | 0 | 0 | 619 |
Excess tax benefits from employee stock-based compensation | -522 | 0 | 0 |
Allowance for doubtful accounts | 253 | 219 | 476 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 4,698 | -14,861 | -9,130 |
Inventories | -7,816 | 4,425 | -5,697 |
Deferred cost of technology revenues | 3,626 | -2,476 | -11,527 |
Prepaid expenses and other | 1,178 | 4,161 | -2,752 |
Accounts payable | -1,454 | -10,280 | 13,888 |
Accrued liabilities | 829 | 3,832 | 15,226 |
Deferred revenue | 330,945 | 17,925 | 87,673 |
Deferred rent and other long-term liabilities | 285 | 8 | 272 |
Net cash provided by operating activities | 495,049 | 47,289 | 239,201 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Purchases of short-term investments | -930,546 | -579,633 | -750,161 |
Sales or maturities of long-term and short-term investments | 640,311 | 553,073 | 436,730 |
Purchase of long-term investment | 0 | -250 | 0 |
Acquisition of business, net of cash and cash equivalents acquired | 0 | -24,466 | 0 |
Acquisition of property and equipment | -6,331 | -6,451 | -4,918 |
Acquisition of capitalized software and intangibles | 0 | -95 | -408 |
Net cash used in investing activities | -296,566 | -57,822 | -318,757 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from issuance of convertible senior notes, net of issuance costs of $6,391 | 0 | 0 | 166,109 |
Proceeds from issuance of common stock related to exercise of common stock options | 7,868 | 16,268 | 11,297 |
Proceeds from issuance of common stock related to employee stock purchase plan | 6,016 | 5,817 | 5,612 |
Excess tax benefits from employee stock-based compensation | 522 | 0 | 0 |
Treasury stock - repurchase of stock | -116,280 | -24,003 | -5,128 |
Net cash provided by (used in) financing activities | -101,874 | -1,918 | 177,890 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 96,609 | -12,451 | 98,334 |
CASH AND CASH EQUIVALENTS: | ' | ' | ' |
Balance at beginning of period | 157,104 | 169,555 | 71,221 |
Balance at end of period | 253,713 | 157,104 | 169,555 |
SUPPLEMENTAL DISCLOSURE OF CASH AND NON-CASH FLOW INFORMATION | ' | ' | ' |
Cash paid for interest | 6,900 | 6,900 | 3,604 |
Cash paid (received) for income taxes | $2,590 | $1,013 | $686 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2012 |
Statement of Cash Flows [Abstract] | ' |
Debt Issuance Cost | $6,391 |
NATURE_OF_OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Jan. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF OPERATIONS | ' |
NATURE OF OPERATIONS | |
TiVo Inc. (together with its subsidiaries the Company or TiVo) was incorporated in August 1997 as a Delaware corporation and is located in San Jose, California. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment. | |
The Company is subject to a number of risks, including delays in product and service developments; competitive product and service offerings; lack of market acceptance; the dependence on third-parties for manufacturing, marketing, and sales support, as well as third-party rollout schedules, software development issues for third-party products which contain its technology; intellectual property claims by and against the Company; access to television programming including digital cable signals in connection with CableCARD and switched digital Internet Protocol, downloadable conditional access, and other new signal delivery and encryption technologies; dependence on its relationships with third-party service providers for subscription growth; and the Company’s ability to sustain and grow both its TiVo-Owned and MSO subscription base. The Company anticipates that its retail business will continue to be seasonal and expects to generate a significant portion of its new subscriptions during and immediately after the holiday shopping season. The Company remains cautious about its ability to grow or even slow the decline in its TiVo-Owned subscription base. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The estimates and judgments affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to estimated lives of product lifetime subscriptions, total estimated cost of engineering service and profitability of deployment agreements, allowance for doubtful accounts, product returns, inventories and related reserves, warranty obligations, contingencies, stock compensation, goodwill, valuation of deferred taxes, and intangible assets impairment, and allocation of amounts from litigation settlements. The Company bases estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates will be reflected in the financial statements in future periods. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers investments with a maturity of three months or less when purchased to be cash equivalents. The majority of payments due from banks for third-party credit card, debit card, and electronic benefit transactions (EBT) process within 24-72 hours, except for transactions occurring on a Friday, which are generally processed the following Monday. All credit card, debit card, and EBT transactions that process in less than three days are classified as cash and cash equivalents. Amounts due from banks for these transactions classified as cash totaled $1.9 million and $1.2 million at January 31, 2014 and 2013, respectively. | |||||||||||||
Short-term and Long-term Investments | |||||||||||||
Short-term and long-term investments are classified as available-for-sale and are carried at fair value. The Company’s short-term and long-term investments are reviewed each reporting period for declines in value that are considered to be other-than temporary and, if appropriate, the investments are written down to their estimated fair value. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in the Company’s consolidated statements of operations. Unrealized gains and unrealized losses deemed temporary are included in accumulated other comprehensive income (loss). The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income in the consolidated statements of operations. | |||||||||||||
Receivables | |||||||||||||
Accounts receivable consist primarily of receivables from retailers, cable and satellite companies, as well as individual consumers and relate to its subscription, technology, and hardware revenues. Additionally, amounts due from banks for customer credit card, debit card and EBT transactions that take in excess of three days to process are classified as accounts receivable. As of January 31, 2014 and 2013 the Company had approximately $5.6 million and $4.6 million, respectively, of unbilled accounts receivable related to MSO service revenue and $8.2 million and $10.1 million, respectively, of unbilled accounts receivable related to technology revenue from AT&T. | |||||||||||||
Allowance for doubtful accounts | |||||||||||||
TiVo maintains an allowance for doubtful accounts to reserve for potentially uncollectible trade receivables. The Company reviews its trade receivable by aging category to identify significant customers with known disputes or collection issues. For accounts not specifically identified, the Company provides allowances based on the age of the receivable. In determining the allowance, the Company makes judgments about the credit-worthiness of significant customers based on ongoing credit evaluations. TiVo also considers its historical level of credit losses and current economic trends that might impact the level of future credit losses. | |||||||||||||
Beginning Balance | Charged to Operating | Deductions/Additions | Ending Balance | ||||||||||
Expenses | (*) | ||||||||||||
(in thousands) | |||||||||||||
Allowance for doubtful accounts: | |||||||||||||
Fiscal year ended: | |||||||||||||
January 31, 2014 | $ | 362 | $ | 253 | $ | (186 | ) | $ | 429 | ||||
January 31, 2013 | $ | 370 | $ | 219 | $ | (227 | ) | $ | 362 | ||||
January 31, 2012 | $ | 275 | $ | 476 | $ | (381 | ) | $ | 370 | ||||
(*) | Deductions/additions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. | ||||||||||||
Inventories and Inventory Valuation | |||||||||||||
Inventories consist primarily of finished DVR units and accessories and are stated at the lower of cost or market on an aggregate basis, with cost determined using the first-in, first-out method. The Company performs a detailed assessment of excess and obsolete inventory and purchase commitments at each balance sheet date, which includes a review of, among other factors, demand requirements and market conditions. Based on this analysis, the Company records adjustments, when appropriate, to reflect inventory of finished products and materials on hand at lower of cost or market and to reserve for products and materials which are not forecasted to be used in future production. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment are stated at cost less accumulated depreciation. Maintenance and repair expenditures are expensed as incurred. | |||||||||||||
Depreciation is computed using the straight-line method over estimated useful lives as follows: | |||||||||||||
Furniture and fixture | 3-5 years | ||||||||||||
Computer and office equipment | 3-5 years | ||||||||||||
Lab equipment | 3 years | ||||||||||||
Leasehold improvements | The shorter of 7 years or the term of the lease | ||||||||||||
Capitalized software for internal use | 1-5 years | ||||||||||||
Capitalized Software | |||||||||||||
Software development costs are capitalized when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the development of a working model and the release of the final product to customers is short, and, therefore, the development costs incurred during this short period are immaterial and, as such, are not capitalized. | |||||||||||||
Software development costs incurred as part of an approved project plan that result in additional functionality to internal use software are capitalized and amortized on a straight-line basis over the estimated useful life of the software, between one and five years. | |||||||||||||
Goodwill | |||||||||||||
The Company has goodwill in the amount of $12.3 million which represents the excess of the purchase price of its acquisitions over the fair value of the identified net tangible and intangible assets. The goodwill recognized in these acquisitions was derived from expected benefits from future technology, cost synergies, and a knowledgeable and experienced workforce who joined the Company after these acquisitions. Goodwill is not amortized, but is tested instead for impairment. The majority of goodwill is not expected to be tax deductible for income tax purposes. | |||||||||||||
Goodwill is tested for impairment on an annual basis (on December 31) using a two-step model. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. Management has determined that the Company has one reporting unit. If the carrying value of the reporting unit exceeds its fair value, the second step would need to be conducted; otherwise, no further steps are necessary as no potential impairment exists. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of that goodwill. Any excess of the goodwill carrying value over the respective implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. In each period presented the fair value of the reporting unit exceeded its carrying value, thus the we were not required to perform the second step of the analysis, and no goodwill impairment charges were recorded. | |||||||||||||
Intangible Assets | |||||||||||||
Purchased intangibles are definite-lived intangible assets which are amortized on a straight-line basis over their estimated useful lives. Useful lives generally range from two to seven years. Purchased intangibles include intangible assets subject to amortization, such as patent rights and developed technology. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We measure recoverability of long-lived assets by comparing the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. An asset group is a group of assets and liabilities including the long lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If such assets are considered to not be recoverable, we recognize an impairment charge for the amount by which the carrying amounts of the assets exceeds the fair value of the assets. Fair value is estimated based on discounted future cash flows. | |||||||||||||
The Company recognized non-cash impairment charges of $4.5 million in the three and twelve months ended January 31, 2014 related to intangible assets acquired as part of the TRA acquisition. The lower than expected profitability indicated that the carrying value of these assets exceeded their estimated fair values as determined by future discounted cash flow projections. When projecting the stream of future cash flows associated with TRA for purposes of determining long-lived asset recoverability, management makes assumptions, incorporating market conditions, sales growth rates, gross profit, and operating expenses. | |||||||||||||
Deferred Tax Assets | |||||||||||||
The Company makes certain estimates in determining income tax expense for financial statement purposes. These estimates occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. From time-to-time, TiVo evaluates the expected realization of its deferred tax assets and determine whether a valuation allowance needs to be established or released. In determining the need for and amount of our valuation allowance, the Company assesses the likelihood that it will be able to recover its deferred tax assets using historical levels of income and estimates of future income. TiVo's estimates of future income include its internal projections and various internal estimates and certain external sources which it believes to be reasonable but that are unpredictable and inherently uncertain. Management also considers the jurisdictional mix of income and loss, changes in tax regulations in the period the changes are enacted and the type of deferred tax assets and liabilities. In assessing whether a valuation allowance needs to be established or released, management uses judgment in considering the cumulative effect of negative and positive evidence and the weight given to the potential effect of the evidence. Recent historical income or loss and future projected operational results have the most influence on the Company's determination of whether a deferred tax valuation allowance is required or not. | |||||||||||||
Sales Taxes | |||||||||||||
The Company accounts for sales taxes imposed on its goods and services on a net basis in the consolidated statements of operations. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company generates service revenues from fees for providing the TiVo service to consumers and television service providers (also referred to as MSOs) and through the sale of advertising and audience research measurement services. The Company also generates technology revenues from licensing technology (Refer to Note 16. Settlements of Notes to Consolidated Financial Statements included in Part II, Item 8. of this report) and by providing engineering professional services. In addition, the Company generates hardware revenues from the sale of hardware products that enable the TiVo service. A substantial portion of the Company's revenues is derived from multiple element arrangements. | |||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, collectibility is probable, and there are no post-delivery obligations. Service revenue is recognized as the services are performed which generally is ratably over the term of the service period. | |||||||||||||
Multiple Element Arrangements | |||||||||||||
The Company's multiple deliverable revenue arrangements primarily consist of bundled sales of TiVo-enabled DVRs and TiVo service to consumers; arrangements with MSOs which generally include delivery of software customization and set up services, training, post contract support (PCS), TiVo-enabled DVRs, non-DVR set-top boxes (STBs), and TiVo service; and bundled sales of advertising and audience research measurement services. | |||||||||||||
The Company allocates revenue to each element in a multiple-element arrangement based upon their relative selling price. The Company determines the selling price for each deliverable using VSOE of selling price or TPE of selling price, if it exists. If neither VSOE nor TPE of selling price exists for a deliverable, the Company uses its BESP for that deliverable. Since the use of the residual method is eliminated under the new accounting standards, any discounts offered by the Company are allocated to each of the deliverables. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for the respective element. However, revenue recognized for each deliverable is limited to amounts that are not contingent on future performance for other deliverables in the arrangement. | |||||||||||||
Consistent with its methodology under previous accounting guidance, if available, the Company determines VSOE of fair value for each element based on historical standalone sales to third parties or from the stated renewal rate for the elements contained in the initial contractual arrangement. The Company currently estimates selling prices for its PCS, training, TiVo-enabled DVRs and non-DVR STBs for MSOs and TiVo service for consumers based on VSOE of selling price. In some instances, the Company may not be able to obtain VSOE of selling price for all deliverables in an arrangement with multiple elements. This may be due to the Company infrequently selling each element separately or not pricing products within a narrow range. When VSOE cannot be established, the Company attempts to estimate the selling price of each element based on TPE. TPE would consist of competitor prices for similar deliverables when sold separately. Generally, the Company's offerings contain significant differentiation such that the comparable pricing of products with similar functionality or services cannot be obtained. Furthermore, the Company sells TiVo-enabled DVRs to consumers whereas its competitors usually lease them to their customers. Therefore, the Company is typically not able to obtain TPE of selling price. When the Company is unable to establish a selling price using VSOE or TPE, which is generally the case for sales of TiVo-enabled DVRs to consumers and advertising and audience research measurement services, the Company uses its BESP in determining the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. BESP is generally used for offerings that are not typically sold on a standalone basis or for new or highly customized offerings. The Company establishes pricing for its products and services by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and industry pricing practices. When determining BESP for a deliverable that is generally not sold separately, these factors are also considered. | |||||||||||||
TiVo-enabled DVRs and TiVo service | |||||||||||||
The Company sells the DVR and service directly to end-users through bundled sales programs through the TiVo website. Under these bundled programs, the customer receives a DVR and commits to a minimum subscription period of one year for monthly payment plans (monthly program) or for the lifetime of the product for one upfront payment (prepaid program). In the case of the monthly program, after the initial committed subscription term, the customers have various pricing options at which they can renew the subscription. | |||||||||||||
VSOE of selling price for the subscription services is established based on standalone sales of the service and varies by service period. The Company is not able to obtain VSOE for the DVR element due to infrequent sales of standalone DVRs to consumers. The BESP of the DVR is established based on the price at which the Company would sell the DVR without any service commitment from the customer. Under these bundled programs, revenue is allocated between hardware revenue for the DVR and service revenue for the subscription on a relative selling price basis, with the DVR revenue recognized upon delivery, up to an amount not contingent on future service delivery, and the subscription revenue recognized over the term of the service. | |||||||||||||
Subscription revenues from product lifetime subscriptions are recognized ratably over the Company's estimate of the useful life of a TiVo-enabled DVR associated with the subscription. The estimates of expected lives are dependent on assumptions with regard to future churn of product lifetime subscriptions. The Company continuously monitors the useful life of a TiVo-enabled DVR and the impact of the differences between actual churn and forecasted churn rates. If subsequent actual experience is not in line with the Company's current assumptions, including higher churn of product lifetime subscriptions due to the incompatibility of its standard definition TiVo units with high definition programming and increased competition, the Company may revise the estimated life which could result in the recognition of revenues from this source over a longer or shorter period. Prior to November 1, 2011 the Company amortized all product lifetime subscriptions over a 60 month period. Effective November 1, 2011, the Company has extended the period it uses to recognize product lifetime subscription revenues from 60 months to 66 months for product lifetime subscriptions where it has not recognized all of the related deferred revenue as of the reassessment date. | |||||||||||||
End users have the right to cancel their subscription within 30 days of subscription activation for a full refund. TiVo establishes allowances for expected subscription cancellations. | |||||||||||||
Arrangements with MSOs | |||||||||||||
The Company has two different types of arrangements with MSOs that include technology deployment and engineering services in such agreements. The Company's arrangements with MSOs typically include software customization and set up services, limited training, PCS, TiVo-enabled DVRs, non-DVR STBs, and TiVo service. | |||||||||||||
In instances where TiVo hosts the TiVo service, the Company recognizes revenue under the general revenue recognition guidance. The Company determines whether evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collection is reasonably assured. Revenue recognition is deferred until such time as all of the criteria are met. Elements in such arrangements usually include DVRs, non-DVR STBs, TiVo service hosting, associated maintenance, and support and training. Non-refundable payments received for customization and set up services are deferred and recognized as revenue ratably over the longer of the contractual or customer relationship period. The related cost of such services is capitalized to the extent it is deemed recoverable and amortized to cost of revenues over the same period as revenue. The Company has established VSOE of selling prices for training, DVRs, non-DVR STBs, and maintenance and support based on the price charged in standalone sales of the element or stated renewal rates in the agreement. The BESP of TiVo service is determined considering the size of the MSO and expected volume of deployment, market conditions, competitive landscape, internal costs, and gross margin objectives. Total arrangement consideration is allocated among individual elements on a relative basis and revenue for each element is recognized when the basic revenue recognition criteria are met for the respective element. | |||||||||||||
In arrangements where the Company does not host the TiVo service and that include engineering services that are essential to the functionality of the licensed technology or involve significant customization or modification of the software, the Company recognizes revenue under industry specific software revenue recognition guidance. Under this guidance, such arrangements are accounted for using the percentage-of-completion method or a completed-contract method. The percentage-of-completion method is used if the Company believes it is able to make reasonably dependable estimates of the extent of progress toward completion and the arrangement as a whole is reasonably expected to be profitable. The Company measures progress toward completion using an input method based on the ratio of costs incurred, principally labor, to date to total estimated costs of the project. These estimates are assessed continually during the term of the contract, and revisions are reflected when the changed conditions become known. | |||||||||||||
In some cases, it may not be possible to separate the various elements within the arrangement due to a lack of VSOE of selling prices for undelivered elements in the contract or because of the lack of reasonably dependable estimates of total costs. In these situations, provided that the Company is reasonably assured that no loss will be incurred under the arrangement, the Company recognizes revenues and costs based on a zero profit model, which results in the recognition of equal amounts of revenues and costs, until the engineering professional services are complete. Costs incurred in excess of revenues are deferred up to the amount deemed recoverable. Thereafter, any profit from the engineering professional services is recognized over the period of the maintenance and support or other services that are provided, whichever is longer. | |||||||||||||
If the Company cannot be reasonably assured that no loss will be incurred under the arrangement, the Company will account for the arrangement under the completed contract method, which results in a full deferral of the revenue and costs until the project is complete. Provisions for losses are recorded when estimates indicate that a loss will be incurred on the contract. | |||||||||||||
Advertising and Audience Research Measurement Services | |||||||||||||
Advertising and audience research measurement service revenue is recognized as the service is provided. When advertising services are sold in packages customized for each campaign, they generally last for up to three months. Because of the significant customization of offerings, the Company historically has not been able to obtain VSOE of selling prices for each element in the package. Accordingly, the Company would combine all elements in the package as a single unit and recognize revenue ratably over the campaign period. As a result of the updated guidance on multiple element revenue arrangements, the Company can now estimate BESP for each element in the package and separate them into individual units of accounting. Nonetheless, the new units of accounting have very similar revenue earning patterns and timing and the amounts of revenue recorded in each period are not significantly impacted by the new guidance. | |||||||||||||
Hardware Revenues | |||||||||||||
Hardware revenues represent revenues from standalone hardware sales and amounts allocated to hardware elements in multiple element arrangements. Revenues are recognized upon product shipment to the customers or receipt of the products by the customer, depending on the shipping terms, provided that all fees are fixed or determinable, evidence of an arrangement exists, and collectibility is reasonably assured. End users have the right to return their product within 30 days of the purchase. TiVo establishes allowances for expected product and service returns and these allowances are recorded as a direct reduction of revenues and accounts receivable. | |||||||||||||
Certain payments to retailers and distributors such as market development funds and revenue share are recorded as a reduction of hardware revenues rather than as a sales and marketing expense. TiVo's policy for revenue share payments is to reduce revenue when these payments are incurred and fixed or determinable. TiVo reduces revenue at the later of the date at which the related hardware revenue is recognized or the date at which the market development program is offered. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company has equity incentive plans under which officers, employees, consultants, and non-employee directors may be granted options to purchase shares of the Company’s authorized but unissued or reacquired common stock, and may also be granted restricted stock, performance based stock options and other stock awards. Additionally the Company has an Employee Stock Purchase Plan (ESPP) which officers and employees can participate. Upon the exercise of options, the Company issues new common stock from its authorized shares. | |||||||||||||
The fair value of TiVo’s restricted stock awards is calculated based on the fair market value of the Company’s stock at the grant date. The fair value of TiVo’s stock options and ESPP awards is estimated using a Black-Scholes option valuation model and Monte-Carlo valuation model for stock awards with market vesting conditions. TiVo recognizes compensation expense for stock option awards expected to vest on a straight-line basis over the requisite service period of the award. | |||||||||||||
Advertising Costs | |||||||||||||
The Company expenses advertising costs related to its products and service as incurred. Marketing co-op development payments, where the Company receives, or will receive, an identifiable benefit (goods or services) in exchange for the amount paid to its customer, and the Company can reasonably estimate the fair value of the benefit it receives, are classified as marketing expense. For the fiscal years ended January 31, 2014, 2013, and 2012, this amount was immaterial. All other marketing co-op development payments are classified as a reduction of hardware revenues. Advertising expenses were $4.9 million, $4.3 million, and $2.5 million, of sales and marketing, subscription acquisition costs for the fiscal years ended January 31, 2014, 2013, and 2012, respectively. Included in these advertising expenses were $3.4 million, $3.9 million, and $2.0 million, respectively, related to media placement costs. | |||||||||||||
Warranty Expense | |||||||||||||
The Company accrues for the expected material and labor costs required to provide warranty services on its hardware products. The Company’s warranty reserve liability is calculated as the total volume of unit sales over the warranty period, multiplied by the expected rate of warranty returns (based on historical experience) multiplied by the estimated cost to replace or repair the customers’ product returns under warranty. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. | |||||||||||||
TiVo takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. | |||||||||||||
The Company’s policy is to include interest and penalties related to unrecognized tax benefits, if any, within the provision for taxes in the consolidated statements of operations. | |||||||||||||
Business Concentrations and Credit Risk | |||||||||||||
The Company’s business is concentrated primarily in the United States and is dependent on discretionary consumer spending. Continued uncertainty or adverse changes in the economy could lead to additional significant declines in discretionary consumer spending, which, in turn, could result in further declines in the demand for the TiVo service and TiVo-enabled DVRs. Decreases in demand for the Company’s products and services, particularly during the critical holiday selling season, could have an adverse impact on its operating results and financial condition. Uncertainty and adverse changes in the economy could also increase the risk of losses on the Company’s investments, increase costs associated with developing and producing its products, increase TiVo’s churn rate per month, increase the cost and decrease the availability of potential sources of financing, and increase the Company’s exposure to losses from bad debts, any of which could have an adverse impact on the Company’s financial condition and operating results. | |||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash, cash equivalents, short-term and long-term investments, and trade receivables. The Company currently invests the majority of its cash in high-grade government and corporate debt and maintains them with two financial institutions with high credit ratings. As part of its cash management process, the Company performs periodic evaluations of the relative credit ratings of these financial institutions and issuers of the securities the Company owns. The Company has not experienced significant credit losses on its cash, cash equivalents, or short-term and long-term investments. | |||||||||||||
The majority of the Company’s customers are concentrated in the United States. The Company is subject to a minimal amount of credit risk related to service revenue contracts as these are primarily obtained through credit card sales. The Company sells its TiVo-enabled DVRs to retailers under customary credit terms and generally requires no collateral. The Company's significant revenue concentrations as of January 31, 2014, 2013, and 2012 were as follows: | |||||||||||||
Fiscal Year Ended January 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
DISH | 11 | % | 15 | % | 14 | % | |||||||
Google and Cisco in connection with Motorola/Cisco settlement | 11 | % | * | * | |||||||||
* Less than 10%. | |||||||||||||
The Company’s accounts receivable concentrations as of January 31, 2014 and 2013 were as follows: | |||||||||||||
As of January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
AT&T | 23 | % | 24 | % | |||||||||
Suddenlink | 13 | % | 23 | % | |||||||||
Com Hem | 12 | % | * | ||||||||||
* Less than 10%. | |||||||||||||
The Company does not have a long-term written supply agreement with Broadcom, the sole supplier of the system controller for its DVR. In instances where a supply agreement does not exist and suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or deliver its products and services to its customers on time if at all. | |||||||||||||
The TiVo service is enabled through the use of a DVR manufactured for TiVo by a third-party contract manufacturer. The Company also relies on third-parties with whom it outsources supply-chain activities related to inventory warehousing, order fulfillment, distribution, and other direct sales logistics. The Company cannot be sure that these parties will perform their obligations as expected or that any revenue, cost savings, or other benefits will be derived from the efforts of these parties. If any of these parties breaches or terminates their agreement with TiVo or otherwise fails to perform their obligations in a timely manner, the Company may be delayed or prevented from commercializing its products and services. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In June 2013, the Financial Accounting Standards Board ratified Emerging Issues Task Force (EITF) Issue 13-C, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” which concludes an unrecognized tax benefit should be presented as a reduction of a deferred tax asset when settlement in this manner is available under the tax law. The Company will adopt this amendment as of the fiscal quarter ending April 30, 2014. The Company does not believe that the impact of adopting this amendment will be significant on the Company's results of operations and financial condition. |
CASH_AND_INVESTMENTS
CASH AND INVESTMENTS | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Investments and Cash [Abstract] | ' | ||||||||||||
CASH AND INVESTMENTS | ' | ||||||||||||
CASH AND INVESTMENTS | |||||||||||||
Cash, cash equivalents, short-term investments, and long-term investments consisted of the following: | |||||||||||||
As of January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 16,718 | $ | 20,005 | |||||||||
Cash equivalents: | |||||||||||||
Commercial paper | 72,268 | 99,040 | |||||||||||
Certificate of deposit | — | 2,024 | |||||||||||
Money market funds | 164,727 | 36,035 | |||||||||||
Total cash and cash equivalents | 253,713 | 157,104 | |||||||||||
Marketable debt securities: | |||||||||||||
Certificates of deposit | 11,424 | 27,961 | |||||||||||
Commercial paper | 176,205 | 128,023 | |||||||||||
Corporate debt securities | 492,765 | 193,932 | |||||||||||
U.S. agency securities | — | 37,109 | |||||||||||
U.S. Treasury securities | 20,024 | 40,286 | |||||||||||
Foreign government securities | — | 9,555 | |||||||||||
Variable-rate demand notes | 350 | 410 | |||||||||||
Asset and mortgage-backed securities | 43,111 | 16,816 | |||||||||||
Municipal bonds | 4,880 | 16,044 | |||||||||||
Current marketable debt securities | 748,759 | 470,136 | |||||||||||
Other investment securities: | |||||||||||||
Other investment securities - cost method | 250 | 250 | |||||||||||
Total other investment securities | 250 | 250 | |||||||||||
Total cash, cash equivalents, marketable securities and other investment securities | $ | 1,002,722 | $ | 627,490 | |||||||||
Marketable securities | |||||||||||||
The Company’s investment securities portfolio consists of various debt instruments, including corporate and government bonds, asset and mortgage-backed securities, foreign government securities, government securities, and municipal bonds, all of which are classified as available-for-sale. | |||||||||||||
Other investment securities | |||||||||||||
TiVo has an investment in a private company where the Company’s ownership is less than 20% and TiVo does not have significant influence. The investment is accounted for under the cost method and is periodically assessed for other-than-temporary impairment. Refer to Note 4. "Fair Value" for additional information on the impairment assessment of the investment. | |||||||||||||
Contractual Maturity Date | |||||||||||||
The following table summarizes the estimated fair value of the Company’s debt investments, designated as available-for-sale classified by the contractual maturity date of the security: | |||||||||||||
As of January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Due within 1 year | $ | 662,299 | $ | 365,386 | |||||||||
Due within 1 year through 5 years | 86,110 | 104,340 | |||||||||||
Due within 5 years through 10 years | — | — | |||||||||||
Due after 10 years | 350 | 410 | |||||||||||
Total | $ | 748,759 | $ | 470,136 | |||||||||
Unrealized Gains (Losses) on Marketable Investment Securities | |||||||||||||
The following table summarizes unrealized gains and losses related to the Company’s investments in marketable securities designated as available-for-sale: | |||||||||||||
As of January 31, 2014 | |||||||||||||
Adjusted | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||
Gains | Losses | ||||||||||||
(in thousands) | |||||||||||||
Certificates of deposit | $ | 11,424 | $ | — | $ | — | $ | 11,424 | |||||
Commercial paper | 176,120 | 85 | — | 176,205 | |||||||||
Corporate debt securities | 492,295 | 532 | (62 | ) | 492,765 | ||||||||
U.S .Treasury securities | 20,023 | 1 | — | 20,024 | |||||||||
Variable-rate demand notes | 350 | — | — | 350 | |||||||||
Asset and mortgage-backed securities | 43,105 | 10 | (4 | ) | 43,111 | ||||||||
Municipal Bonds | 4,875 | 5 | — | 4,880 | |||||||||
Total | $ | 748,192 | $ | 633 | $ | (66 | ) | $ | 748,759 | ||||
As of January 31, 2013 | |||||||||||||
Adjusted | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||
Gains | Losses | ||||||||||||
(in thousands) | |||||||||||||
Certificates of deposit | $ | 27,961 | $ | — | $ | — | $ | 27,961 | |||||
Commercial paper | 127,967 | 65 | (9 | ) | 128,023 | ||||||||
Corporate debt securities | 193,834 | 147 | (49 | ) | 193,932 | ||||||||
U.S. agency securities | 37,081 | 28 | — | 37,109 | |||||||||
U.S.Treasury securities | 40,266 | 20 | — | 40,286 | |||||||||
Foreign government securities | 9,573 | — | (18 | ) | 9,555 | ||||||||
Variable-rate demand notes | 410 | — | — | 410 | |||||||||
Asset-backed securities | 16,804 | 12 | — | 16,816 | |||||||||
Municipal Bonds | 16,025 | 19 | — | 16,044 | |||||||||
Total | $ | 469,921 | $ | 291 | $ | (76 | ) | $ | 470,136 | ||||
None of these investments were in a loss position for greater than twelve months as of January 31, 2014 and January 31, 2013. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
FAIR VALUE | ' | ||||||||||||
FAIR VALUE | |||||||||||||
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect TiVo's market assumptions. These two types of inputs have created the following fair-value hierarchy: | |||||||||||||
Level 1 | - | Quoted prices for identical instruments in active markets; | |||||||||||
Level 2 | - | Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||
Level 3 | - | Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||
This hierarchy requires TiVo to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. TiVo recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. | |||||||||||||
Cash equivalents and available-for-sale marketable securities (including asset and mortgage-backed securities) are reported at their fair value. Additionally, carrying amounts of certain of the Company’s financial instruments including accounts receivable, accounts payable, and accrued expenses approximate their fair value because of their short maturities. The Company has financial liabilities for which it is obligated to repay the carrying value, unless the holder agrees to a lesser amount which include our convertible debt. The fair values of TiVo's convertible debt are influenced by interest rates, TiVo's stock price and stock price volatility and are determined by Level 2 inputs, including prices for the convertible debt observed in market trading. The carrying value of these financial liabilities at January 31, 2014 and January 31, 2013 was $172.5 million (for both years) and the fair value was $228.5 million and $241.6 million, based on the bond's quoted market price as of January 31, 2014 and 2013, respectively. | |||||||||||||
On a quarterly basis, TiVo measures at fair value certain financial assets and liabilities. The fair value of those financial assets and liabilities was determined using the following levels of inputs as of January 31, 2014 and January 31, 2013: | |||||||||||||
As of January 31, 2014 | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(in thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Commercial paper | $ | 72,268 | $ | — | $ | 72,268 | $ | — | |||||
Money market funds | 164,727 | 164,727 | — | — | |||||||||
Short-term investments: | |||||||||||||
Certificates of deposit | 11,424 | 11,424 | — | — | |||||||||
Commercial paper | 176,205 | — | 176,205 | — | |||||||||
Corporate debt securities | 492,765 | — | 492,765 | — | |||||||||
U.S. Treasury securities | 20,024 | 20,024 | — | — | |||||||||
Variable-rate demand notes | 350 | — | 350 | — | |||||||||
Asset and mortgage-backed securities | 43,111 | — | 43,111 | — | |||||||||
Municipal bonds | 4,880 | — | 4,880 | — | |||||||||
Total | $ | 985,754 | $ | 196,175 | $ | 789,579 | $ | — | |||||
As of January 31, 2013 | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(in thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Commercial paper | $ | 99,040 | $ | — | $ | 99,040 | $ | — | |||||
Certificate of deposit | 2,024 | 2,024 | — | — | |||||||||
Money market funds | 36,035 | 36,035 | — | — | |||||||||
Short-term investments: | |||||||||||||
Certificates of deposit | 27,961 | 27,961 | — | — | |||||||||
Commercial paper | 128,023 | — | 128,023 | — | |||||||||
Corporate debt securities | 193,932 | — | 193,932 | — | |||||||||
U.S. agency securities | 37,109 | — | 37,109 | — | |||||||||
U.S. Treasury securities | 40,286 | 40,286 | — | — | |||||||||
Foreign government securities | 9,555 | — | 9,555 | — | |||||||||
Variable-rate demand notes | 410 | — | 410 | — | |||||||||
Asset-backed securities | 16,816 | — | 16,816 | — | |||||||||
Municipal bonds | 16,044 | — | 16,044 | — | |||||||||
Total | $ | 607,235 | $ | 106,306 | $ | 500,929 | $ | — | |||||
Level 1 Measurements | |||||||||||||
TiVo's cash equivalents held in money market funds, TiVo's available-for-sale securities and the trading securities are measured at fair value using Level 1 inputs. | |||||||||||||
Level 2 Measurements | |||||||||||||
The Company uses inputs such as broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is ultimately responsible for the financial statements and underlying estimates. | |||||||||||||
Level 3 Measurements | |||||||||||||
As of January 31, 2014, TiVo had no Level 3 instruments. | |||||||||||||
The Company did not have any transfers between Level 1, Level 2, and Level 3 fair value measurements during the periods presented as there were no changes in the composition of Level 1, 2, or 3 securities. | |||||||||||||
TiVo also has a direct investment in a privately-held company accounted for under the cost method, which is periodically assessed for other-than-temporary impairment. If the Company determines that an other-than-temporary impairment has occurred, TiVo will write-down the investment to its fair value. The fair value of a cost method investment is not evaluated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. However, if such significant adverse events were identified, the Company would estimate the fair value of its cost method investment considering available information at the time of the event, such as pricing in recent rounds of financing, current cash position, earnings and cash flow forecasts, recent operational performance, and any other readily available data. The carrying amount of the Company's cost method investment was $250,000 as of January 31, 2014. No events or circumstances indicating a potential impairment were identified as of January 31, 2014. |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | ||||
Jan. 31, 2014 | |||||
Property, Plant and Equipment [Abstract] | ' | ||||
PROPERTY AND EQUIPMENT, NET | ' | ||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, net consists of the following: | |||||
As of January 31, | |||||
2014 | 2013 | ||||
(In thousands) | |||||
Furniture and fixtures | 4,455 | 4,428 | |||
Computer and office equipment | 20,662 | 21,639 | |||
Lab equipment | 4,652 | 3,747 | |||
Leasehold improvements | 9,792 | 9,697 | |||
Capitalized internal use software | 23,945 | 21,801 | |||
Total property and equipment | 63,506 | 61,312 | |||
Less: accumulated depreciation and amortization | (52,819 | ) | (51,012 | ) | |
Property and equipment, net | 10,687 | 10,300 | |||
Depreciation and amortization expense for property and equipment for the fiscal years ended January 31, 2014, 2013, and 2012 was $5.5 million, $5.8 million, and $6.1 million, respectively. Additionally, the Company recognized non-cash impairment charges of $4.8 million in the three and twelve months ended January 31, 2014 of which $296,000 was related to capitalized internal use software associated with assets acquired in its acquisition of TRA. |
DEVELOPED_TECHNOLOGY_AND_INTAN
DEVELOPED TECHNOLOGY AND INTANGIBLE ASSETS, NET | 12 Months Ended | ||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||
DEVELOPED TECHNOLOGY AND INTANGIBLE ASSETS, NET | ' | ||||||||||||||||||
DEVELOPED TECHNOLOGY AND INTANGIBLE ASSETS, NET | |||||||||||||||||||
Developed technology and intangible assets, net consists of the following: | |||||||||||||||||||
As of January 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||
Amortization | Amortization | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Developed technology | $ | 10,259 | $ | (4,716 | ) | $ | 5,543 | $ | 15,161 | $ | (4,441 | ) | $ | 10,720 | |||||
Intellectual property rights | 19,118 | (18,260 | ) | 858 | 19,118 | (16,616 | ) | 2,502 | |||||||||||
Customer relationships and trade names | 1,010 | (83 | ) | 927 | 3,130 | (266 | ) | 2,864 | |||||||||||
Developed technology and intangible assets | $ | 30,387 | $ | (23,059 | ) | $ | 7,328 | $ | 37,409 | $ | (21,323 | ) | $ | 16,086 | |||||
During the fiscal year ended January 31, 2013 the Company acquired developed technology and intangible assets of $14.9 million with a weighted average life of 5.18 years. | |||||||||||||||||||
The Company recognized non-cash impairment charges of $4.8 million in the three and twelve months ended January 31, 2014 of which $4.5 million was related to intangible assets acquired as part of the TRA acquisition. The lower than expected profitability indicated that the carrying value of these assets exceeded their estimated fair values as determined by future discounted cash flow projections. When projecting the stream of future cash flows associated with TRA for purposes of determining long-lived asset recoverability, management makes assumptions, incorporating market conditions, sales growth rates, gross profit, and operating expenses. The impairment charge of $3.0 million associated with impairment of developed technology is included in the cost of service revenues and $1.5 million associated with the impairment of customer relationships and trade names is included sales and marketing expenses for the three and twelve months ended January 31, 2014. | |||||||||||||||||||
The total expected future annual amortization expense related to purchased technology, capitalized software, and intangible assets is calculated on a straight-line basis, using the useful lives of the assets, which range from three to five years for developed technology and two to seven years for intellectual property rights and customer relationships and trade names. Amortization expense for the fiscal years ended January 31, 2014, 2013, and 2012, was $4.3 million, $3.5 million, and $2.7 million, respectively. As of January 31, 2014, the estimated future annual amortization expense (not including the Company's acquisition of Digitalsmiths on February 14, 2014) is set forth in the table below: | |||||||||||||||||||
Fiscal Year Ending January 31, | Estimated Annual | ||||||||||||||||||
Amortization | |||||||||||||||||||
Expense | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
2015 | 2,196 | ||||||||||||||||||
2016 | 2,018 | ||||||||||||||||||
2017 | 1,716 | ||||||||||||||||||
2018 | 1,155 | ||||||||||||||||||
2019 | 162 | ||||||||||||||||||
Thereafter | 81 | ||||||||||||||||||
$ | 7,328 | ||||||||||||||||||
INVENTORY
INVENTORY | 12 Months Ended | ||||
Jan. 31, 2014 | |||||
Inventory Disclosure [Abstract] | ' | ||||
INVENTORY | ' | ||||
INVENTORY | |||||
Inventory was as follows: | |||||
As of January 31, | |||||
2014 | 2013 | ||||
(in thousands) | |||||
Raw Materials | $1,858 | $3,423 | |||
Finished Goods | 20,458 | 11,077 | |||
Total Inventory | $22,316 | $14,500 | |||
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | ||||||
Jan. 31, 2014 | |||||||
Accrued Liabilities [Abstract] | ' | ||||||
ACCRUED LIABILITIES | ' | ||||||
ACCRUED LIABILITIES | |||||||
Accrued liabilities consist of the following: | |||||||
As of January 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
Compensation and vacation | $ | 24,755 | $ | 23,158 | |||
Marketing and promotions | 7,793 | 4,987 | |||||
Legal services | 6,400 | 10,477 | |||||
Redeemable gift certificates for subscriptions | 2,404 | 2,428 | |||||
Interest payable | 2,588 | 2,588 | |||||
Other | 6,264 | 6,405 | |||||
Total accrued liabilities | $ | 50,204 | $ | 50,043 | |||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |
Jan. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
COMMITMENTS AND CONTINGENCIES | ||
Product Warranties | ||
The Company’s standard manufacturer's warranty period to consumers for TiVo-enabled DVRs is 90 days for parts and labor from the date of consumer purchase, and from 91-365 days for parts only. Within the limited warranty period, consumers are offered a no-charge exchange for TiVo-enabled DVRs returned due to product defect, within 90 days from the date of consumer purchase. Thereafter, consumers may exchange a TiVo-enabled DVR with a product defect for a charge. As of January 31, 2014 and January 31, 2013, the accrued warranty reserve was $621,000 and $419,000, respectively. The Company’s accrued warranty reserve is included in accrued liabilities in the accompanying condensed consolidated balance sheets. | ||
The Company also offers its TiVo-Owned customers separately priced optional 2-year and 3-year extended warranties. The Company defers and amortizes cost and revenue associated with the sales of these extended warranties over the warranty period or until a warranty is redeemed. Additionally the Company offers its MSO customers separately priced optional 3-year extended warranties. The Company defers the revenues associated with sale of these extended warranties over the second and third year of the warranty period. As of January 31, 2014, the extended warranty deferred revenue and cost was $2.0 million and $287,000, respectively. As of January 31, 2013, the extended warranty deferred revenue and cost was $875,000 and $269,000, respectively. | ||
Purchase Commitments with Contract Manufacturers and Suppliers | ||
The Company purchases components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company enters into agreements with the Company's contract manufacturer and suppliers that either allow them to procure inventory based upon criteria as defined by the Company or that establish the parameters defining the Company’s requirements. A significant portion of the Company’s reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional purchase commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule, and adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of January 31, 2014 the Company had total purchase commitments for inventory of $17.2 million. | ||
Indemnification Arrangements | ||
The Company undertakes indemnification obligations in its ordinary course of business. For instance, the Company has undertaken to indemnify its underwriters and certain investors in connection with the issuance and sale of its securities and the Company provides indemnification for its directors and officers in accordance with Delaware law. The Company has also undertaken to indemnify certain customers and business partners for, among other things, the licensing of its products, the sale of its DVRs, and the provision of engineering and consulting services. Pursuant to these agreements, the Company may indemnify the other party for certain losses suffered or incurred by the indemnified party in connection with various types of claims, which may include, without limitation, intellectual property infringement, advertising and consumer disclosure laws, certain tax liabilities, negligence and intentional acts in the performance of services and violations of laws, including certain violations of securities laws with respect to underwriters and investors. The term of these indemnification obligations is generally perpetual. The Company’s obligation to provide indemnification under its agreements with customer and business partners would arise in the event that a third party filed a claim against one of the parties that was covered by the Company’s indemnification obligation. As an example, if a third party sued a customer for intellectual property infringement and the Company agreed to indemnify that customer against such claims, its obligation would be triggered. | ||
The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include but are not limited to: the nature of the claim asserted; the relative merits of the claim; the financial ability of the party suing the indemnified party to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. Due to the nature of the Company’s potential indemnity liability, its indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue operation in the ordinary course of business. | ||
Under certain circumstances, the Company may have recourse through its insurance policies that would enable it to recover from its insurance company some or all amounts paid pursuant to its indemnification obligations. The Company does not have any assets held either as collateral or by third parties that, upon the occurrence of an event requiring it to indemnify a customer, the Company could obtain and liquidate to recover all or a portion of the amounts paid pursuant to its indemnification obligations. | ||
Legal Matters | ||
From time to time, the Company is involved in numerous lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated. As of January 31, 2014, the Company has not accrued any pre-judgment liability for any lawsuits filed against the Company, as the Company has neither determined that it is probable that a liability has been incurred at the date of the financial statements nor that the amount of any loss can be reasonably estimated. The Company has accrued $4.7 million, including accrued interest, for arbitration proceedings related to a contractual dispute. The Company is currently appealing an unfavorable decision in the initial arbitration proceeding. The Company expenses legal costs as they are incurred. | ||
Facilities Leases | ||
The Company leases its corporate headquarters, located in San Jose, California, comprising a total of 176,254 square feet of office space. The corporate headquarters houses its administrative, sales and marketing, customer service, and product development activities, under a lease that expires on January 31, 2017. The Company also has operating leases for sales and administrative office space in New York City, New York, Chicago, Illinois, and Maynard, Massachusetts. The leases generally provide for base monthly payments with built-in base rent escalations periodically throughout the lease term. All the Company's property leases are deemed operating leases. | ||
Rent expense is recognized using the straight-line method over the lease term and for fiscal years ended January 31, 2014, 2013, and 2012 was $3.2 million, $3.2 million, and $2.6 million, respectively. Operating lease cash payments for the fiscal years ended January 31, 2014, 2013, and 2012 were $3.7 million, $3.9 million, and $3.8 million, respectively. Future minimum operating lease payments as of January 31, 2014, are as follows: | ||
Fiscal Year Ending January 31, | Lease Payments | |
(In thousands) | ||
2015 | $3,189 | |
2016 | $2,935 | |
2017 | $2,716 | |
Total | $8,840 |
CONVERTIBLE_SENIOR_NOTES
CONVERTIBLE SENIOR NOTES | 12 Months Ended |
Jan. 31, 2014 | |
Senior Notes [Abstract] | ' |
CONVERTIBLE SENIOR NOTES | ' |
CONVERTIBLE SENIOR NOTES | |
On March 10, 2011, the Company issued $150.0 million aggregate principal amount of 4.00% convertible senior subordinated notes due March 15, 2016 for which it received approximately $144.5 million in net proceeds. On March 30, 2011, the Company issued an additional $22.5 million aggregate principal amount of the convertible senior subordinated notes and received approximately $21.8 million in net proceeds pursuant to the exercise of the initial purchaser's overallotment option. The effective interest rate of these notes is not materially different than the stated interest rate of 4.00%. These notes have an initial conversion price of $11.16 per share of TiVo's common stock. The conversion option has no cash settlement provisions. Total issuance costs for the convertible notes and the overallotment was $6.4 million. The Company uses the straight-line method to amortize its debt issuance costs which yields a similar result as the effective interest rate method. The Company believes that the conversion option does not meet the criterion for separate accounting as a derivative because it is indexed to the Company's own stock and is classified in stockholders' equity. | |
The Company will pay 4.00% interest per annum on the outstanding principal amount of the notes semi-annually on March 15 and September 15 of each year beginning in September 2011. Interest began to accrue on March 10, 2011. The notes are unsecured senior obligations of the Company. These notes were offered and sold only to qualified institutional investors, as defined in Rule 144 under the Securities Act of 1933 (“Securities Act”), and the notes and the shares of the Company's common stock issuable upon conversion of the notes have not been registered under the Securities Act. | |
The Company may not redeem the notes prior to their maturity date although investors may convert the notes into TiVo common stock at any time until March 14, 2016 at their option. The notes will be convertible at an initial conversion rate of 89.6359 shares of the Company's common stock per $1,000 principal amount of notes, subject to adjustment upon certain events, which is equivalent to a conversion price of approximately $11.16 per share of the Company's common stock. The conversion rate will be adjusted for certain dilutive events and will be increased in the case of corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the indenture governing the notes). The holders of the notes will have the ability to require the Company to repurchase the notes in whole or in part upon the occurrence of an event that constitutes a “Fundamental Change” (as defined in the indenture governing the notes including such events as a "change in control" or "termination of trading"). In such case, the repurchase price would be 100% of the principal amount of the notes plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase price. | |
Certain events are also considered “Events of Default,” which may result in the acceleration of the maturity of the notes, as described in the indenture governing the notes, including, among other events, the Company's failure to file with the SEC the reports required pursuant to Section 13 or 15(d) of the Securities Exchange of 1934, as amended, within 180 days after the time such report was required to be filed. There are no financial covenants to these convertible notes. |
EQUITY_INCENTIVE_PLANS
EQUITY INCENTIVE PLANS | 12 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
EQUITY INCENTIVE PLANS | ' | ||||||||||||||||
EQUITY INCENTIVE PLANS | |||||||||||||||||
1999 Equity Incentive Plan | |||||||||||||||||
In April 1999, the Company’s stockholders approved the 1999 Equity Incentive Plan (the 1999 Plan). Amendments to the 1999 Plan were adopted in July 1999. The 1999 Plan permits the granting of incentive stock options, non-statutory stock options, non-vested stock awards (also known as restricted stock), stock appreciation rights, performance-based awards, and stock purchase rights. The 1999 Plan allows the grant of options to purchase shares of the Company’s common stock to employees and other individuals at a price equal to the fair market value of the common stock at the date of grant. The options granted to new employees typically vest 25% after the first year of service, and the remaining 75% vest monthly over the next 36 months. The vesting period for options granted to continuing employees may vary, but typically vest monthly over a 48 months period. Options expire 10 years after the grant date, based on continued service. If the optionee’s service terminates, options expire 90 days from the date of termination except under certain circumstances such as death or disability. For options granted subsequent to August 8, 2001, options are exercisable only as the options vest. In the event that the individual terminates his or her service to the Company before becoming fully vested, the Company has the right to repurchase any exercised, unvested shares at the original option price. As of January 31, 2008, the number of shares authorized for option grants under the 1999 Plan was 52,384,204. As of January 31, 2014, all unissued shares under the 1999 Equity Incentive Plan have expired and no stock-based awards will be granted from the 1999 Plan in the future. Any awards granted under the 1999 plan that are canceled after August 6, 2008 become available for grant under the 2008 Plan. | |||||||||||||||||
1999 Non-Employee Directors’ Stock Option Plan | |||||||||||||||||
In July 1999, the Company adopted the 1999 Non-Employee Directors’ Stock Option Plan (the "Directors’ Plan”). The Directors’ Plan provides for the automatic grant of options to purchase shares of the Company’s common stock to non-employee directors at a price equal to the fair market value of the stock at the date of the grant. Initial options granted to new directors vest monthly over two years from the date of grant. Annual options granted to existing directors vest upon grant. The option term is ten years after the grant date, based on continued director service. If the director’s service terminates, options expire 90 days from the date the director’s service terminated. The number of shares authorized for option grants under the Directors’ Plan is 1,400,000, subject to an annual increase of 100,000 shares. As of January 31, 2014, all unissued shares under 1999 Non-Employee Directors’ Stock Plan have expired. | |||||||||||||||||
1999 Employee Stock Purchase Plan | |||||||||||||||||
In July 1999, the Company adopted the 1999 Employee Stock Purchase Plan (the "Employee Stock Purchase Plan”). The Employee Stock Purchase Plan provides a means for employees to purchase TiVo common stock through payroll deductions of up to 15% of their base compensation. The Company offers the common stock purchase rights to eligible employees, generally all full-time employees who have been employed for at least 10 days. This plan allows for common stock purchase rights to be granted to employees of TiVo at a price equal to the lower of 85% of the fair market value on the first day of the offering period or on the common stock purchase date. This plan incorporates up to a one-year look back feature in its provisions which resets the offering price during the one-year look back period if the Company’s common stock purchase price on the purchase date is lower than its price on the commencement of the offering. Each offering consists of up to two purchase periods. The purchase periods are generally six months in length and begin January 1 and July 1 of each year. Under the Employee Stock Purchase Plan, the Board may, in the future, specify offerings up to 27 months. As of January 31, 2014, the total number of shares reserved for issuance under this plan is 10,000,000. As of January 31, 2014, 1,884,542 shares remain available for future purchases. | |||||||||||||||||
2008 Equity Incentive Award Plan | |||||||||||||||||
In August 2008, the Company’s stockholders approved the 2008 Equity Incentive Award Plan (the "2008 Plan”). The 2008 Plan permits the granting of stock options, non-vested stock awards (also known as restricted stock), stock appreciation rights, performance share awards, performance stock-unit awards, dividend equivalents awards, stock payment awards, deferred stock awards, performance bonus wards, and performance-based awards. The 2008 Plan allows the grant of options to purchase shares of the Company’s common stock to employees and other individuals at a price equal to the fair market value of the common stock at the date of grant. The options granted to new employees typically vest 25% after the first year of service, and the remaining 75% vest monthly over the next 36 months. The vesting period for options granted to continuing employees may vary, but typically vest monthly over a 48 month period. Annual grants of restricted stock made to continuing employees typically vest 17% every 6 months over a 36 months period. Options expire 7 years after the grant date, based on continued service. If the optionee’s service terminates, options expire 90 days from the date of termination except under certain circumstances such as death or disability. The number of shares authorized for option grants under the 2008 Plan is 28,575,914. Any awards granted under the 1999 plan that are canceled after August 6, 2008 become available for grant under the 2008 Equity Incentive Award Plan. Any grants of restricted stock awards will reduce shares available for grant at a 1.5:1 ratio. Under the 2008 Equity Incentive Award Plan, in general, grants of full value awards (as defined in the plan but generally relate to restricted stock and similar awards) must vest over a period of not less than three years (or, in the case of vesting based upon the attainment of performance goals or other performance-based objectives, over a period of not less than one year measured from the commencement of the period over which performance is evaluated) following the date the award is granted. As of January 31, 2014, 6,513,292 shares remain available for future stock based award grants. | |||||||||||||||||
In the event of a change in control of the Company and subsequent termination of certain employees, 25% to 100% of unvested awards would be subject to acceleration as of the date of such termination. | |||||||||||||||||
Stock Options Activity | |||||||||||||||||
A summary of the stock options activity and related information for the fiscal years ended January 31, 2014, 2013, and 2012 is as follows: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual Term | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Outstanding at January 31, 2011 | 12,668 | $ | 7.19 | 5.54 | $ | 32,453 | |||||||||||
Grants | 551 | 9.66 | |||||||||||||||
Exercises | (1,735 | ) | 6.51 | ||||||||||||||
Forfeitures or expirations | (335 | ) | 8.34 | ||||||||||||||
Outstanding at January 31, 2012 | 11,149 | $ | 7.38 | 4.72 | $ | 34,022 | |||||||||||
Grants | 303 | 9.83 | |||||||||||||||
Exercises | (2,259 | ) | 7.2 | ||||||||||||||
Forfeitures or expirations | (536 | ) | 8.84 | ||||||||||||||
Outstanding at January 31, 2013 | 8,657 | $ | 7.42 | 3.84 | $ | 51,431 | |||||||||||
Grants | 235 | 12.12 | |||||||||||||||
Exercises | (1,014 | ) | 7.76 | ||||||||||||||
Forfeitures or expirations | (214 | ) | 9.89 | ||||||||||||||
Outstanding at January 31, 2014 | 7,664 | $ | 7.45 | 2.94 | $ | 38,064 | |||||||||||
The aggregate intrinsic value in the preceding table is based on options with an exercise price less than the Company’s closing stock price of $12.39 as of January 31, 2014, which would have been received by the option holders had those option holders exercised their options as of that date. Total intrinsic value of options exercised was $4.8 million, $9.7 million, and $6.4 million for the twelve months ended January 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||
The following table summarizes information about options outstanding at January 31, 2014: | |||||||||||||||||
Options Outstanding | Exercisable Options | ||||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted Average | Weighted Average | Number of Shares | Weighted Average | ||||||||||||
Remaining | Exercise Price | Exercise Prices | |||||||||||||||
Contractual Life | |||||||||||||||||
(in thousand) | (in thousand) | ||||||||||||||||
$ 3.78 - $ 3.78 | 93 | 1.01 | $ | 3.78 | 93 | $ | 3.78 | ||||||||||
$ 4.44 - $ 6.17 | 68 | 1.56 | $ | 5.14 | 68 | $ | 5.14 | ||||||||||
$ 6.18 - $ 6.18 | 1,508 | 3.08 | $ | 6.18 | 1,508 | $ | 6.18 | ||||||||||
$ 6.24 - $ 6.50 | 59 | 2.63 | $ | 6.42 | 59 | $ | 6.42 | ||||||||||
$ 6.51 - $ 6.51 | 385 | 2.46 | $ | 6.51 | 385 | $ | 6.51 | ||||||||||
$ 6.52 - $ 6.52 | 1,826 | 1.41 | $ | 6.52 | 1,826 | $ | 6.52 | ||||||||||
$ 6.71 - $ 12.38 | 3,575 | 3.67 | $ | 8.46 | 2,745 | $ | 8.32 | ||||||||||
$ 12.47 - $ 18.17 | 150 | 5.46 | $ | 13.99 | 41 | $ | 16.76 | ||||||||||
Total | 7,664 | 2.94 | $ | 7.45 | 6,725 | $ | 7.19 | ||||||||||
Net cash proceeds from the exercise of stock options were $7.9 million, $16.3 million, and $11.3 million for the twelve months ended January 31, 2014, 2013, and 2012, respectively. Information regarding stock options outstanding at January 31, 2014 is summarized as follows: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Shares outstanding | 7,664 | $ | 7.45 | 2.94 | $ | 38,064 | |||||||||||
Shares vested and expected to vest | 7,585 | $ | 7.42 | 2.91 | $ | 37,903 | |||||||||||
Shares exercisable | 6,725 | $ | 7.19 | 2.7 | $ | 35,161 | |||||||||||
Restricted Stock Awards ("RSAs") / Restricted Stock Units ("RSUs") | |||||||||||||||||
The Company had 4.8 million RSAs and RSUs outstanding as of January 31, 2014 which were excluded from the options outstanding balances in the preceding tables. The grant of these RSAs and RSUs has been deducted from the shares available for grant under the Company’s stock option plans. Aggregate intrinsic value of RSAs and RSUs at January 31, 2014 was $59.3 million based on the Company’s closing stock price on January 31, 2014. The total fair value of RSAs and RSUs vested was $38.6 million, $27.5 million, and $13.5 million for the twelve months ended January 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||
The following table summarizes the activities for the Company’s unvested RSAs and RSUs for the three years ended January 31, 2014, 2013, and 2012: | |||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||
Shares | Grant Date Fair | ||||||||||||||||
Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Unvested stock at January 31, 2011 | 4,650 | $ | 10.03 | ||||||||||||||
Granted | 2,813 | $ | 10.01 | ||||||||||||||
Vested | (1,374 | ) | $ | 9.8 | |||||||||||||
Forfeited | (543 | ) | $ | 10.57 | |||||||||||||
Unvested stock at January 31, 2012 | 5,546 | $ | 10.02 | ||||||||||||||
Granted | 2,876 | $ | 11.53 | ||||||||||||||
Vested | (2,427 | ) | $ | 11.32 | |||||||||||||
Forfeited | (518 | ) | $ | 11.1 | |||||||||||||
Unvested stock at January 31, 2013 | 5,477 | $ | 10.85 | ||||||||||||||
Granted | 2,979 | $ | 12.27 | ||||||||||||||
Vested | (3,197 | ) | $ | 12.08 | |||||||||||||
Forfeited | (472 | ) | $ | 11.47 | |||||||||||||
Unvested stock at January 31, 2014 | 4,787 | $ | 11.88 | ||||||||||||||
Market-Based Awards | |||||||||||||||||
In fiscal year 2010, the Company awarded 300,000 shares of restricted stock to the Company’s Chief Executive Officer that would vest over a five-year period. The vesting conditions of these awards are tied to the market value of the Company's common stock. The fair value of these 300,000 shares of performance-based restricted stock units was estimated using a Monte-Carlo analysis. On March 28, 2013 the board approved the modification of 240,000 unvested shares of the market-based awards and extends the performance period to January 31, 2018. Total compensation cost recognized related to these performance-based awards was approximately $519,000, $155,000, and $254,000 for the fiscal years ended January 31, 2014, 2013, and 2012, respectively. As of January 31, 2014, $1.3 million of total unrecognized compensation cost related to these awards is expected to be recognized over the remaining vesting period of 4 years. | |||||||||||||||||
Performance and Market Based Awards | |||||||||||||||||
In fiscal year 2012, the Company awarded 225,000 shares of restricted stock to the Company's Chief Executive Officer that would vest over a three-year period. The vesting conditions of 150,750 shares are tied to the subscriptions and annual gross margin performance. Each quarterly period, the company estimates the probability of the achievement of these performance goals and recognizes any related stock based compensation expense. If such performance goals are not probable of achieving, no compensation expense is recognized. The remaining 74,250 shares are tied to the market value of the Company's common stock. The fair value of 74,250 shares of market-based restricted stock awards was estimated using a Monte-Carlo analysis. The probability of satisfying a market condition is also considered in the estimate of grant-date fair value when the Monte Carlo simulation is used. On March 28, 2013 the board approved the modification of 74,250 unvested shares of the market-based awards and extends the performance period to January 31, 2018. Total compensation cost recognized was $628,000, $521,000 and $1.1 million for the fiscal years ended January 31, 2014, 2013 and 2012 respectively. As of January 31, 2014, $270,000 of total unrecognized compensation cost related to these awards is expected to be recognized over the remaining vesting period of 4 years. | |||||||||||||||||
In fiscal year 2013, the Company awarded 250,000 shares of restricted stock to the Company's Chief Executive Officer that would vest over a three-year period. The vesting conditions of 250,000 shares are tied to the annual Adjusted EBITDA performance or the market value of the Company's common stock. The performance goals were met and $2.8 million in compensation cost was recognized for the fiscal year ended January 31, 2013. | |||||||||||||||||
In fiscal year 2014, the Company awarded 275,000 shares of restricted stock to the Company's Chief Executive Officer that would vest over the three-year period. The vesting conditions of 275,000 shares are tied to the annual Adjusted EBITDA performance or the market value of the Company's common stock. In addition, the Company also awarded 150,248 shares of restricted stock to certain executive officers and will vest immediately upon achievement of the goal. The performance goals were met and total compensation cost recognized was $3.6 million for the fiscal year ended January 31, 2014. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||
Total stock-based compensation for the twelve months ended January 31, 2014, 2013, and 2012, respectively is as follows: | |||||||||||||
Fiscal Year Ended January 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Cost of service revenues | $ | 2,032 | $ | 1,241 | $ | 830 | |||||||
Cost of technology revenues | 1,626 | 1,754 | 1,666 | ||||||||||
Cost of hardware revenues | 304 | 269 | 207 | ||||||||||
Research and development | 13,717 | 12,544 | 10,768 | ||||||||||
Sales and marketing | 5,631 | 4,105 | 3,962 | ||||||||||
General and administrative | 14,455 | 14,542 | 11,854 | ||||||||||
Change in deferred cost of technology revenues | 113 | 302 | 559 | ||||||||||
Stock-based compensation before income taxes | $ | 37,878 | $ | 34,757 | $ | 29,846 | |||||||
Income tax benefit | $ | (9,789 | ) | $ | — | $ | — | ||||||
Total stock-based compensation | $ | 28,089 | $ | 34,757 | $ | 29,846 | |||||||
As of January 31, 2014, $2.9 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.13 years. As of January 31, 2014, $32.6 million of total unrecognized compensation costs related to unvested restricted stock is expected to be recognized over a weighted-average period of 1.52 years. | |||||||||||||
The Company used the alternative transition method which included a simplified method to establish the beginning balance of the additional paid in capital pool (APIC pool) related to the tax effects of employee share-based compensation, which is available to absorb tax deficiencies recognized subsequent to stock option expensing. | |||||||||||||
The Company is required to use a valuation model to calculate the fair value of stock-based awards and has elected to use the Black-Scholes option-pricing model, which incorporates various assumptions including volatility, expected life, and interest rate. The expected volatility is based on a combination of historical volatility of the Company’s common stock and implied volatility of market traded options on the Company’s common stock. The expected life of stock options granted after January 1, 2008 is based on historical employee exercise patterns associated with prior similar option grants. The interest rate is based on the average of the U.S. Treasury yield curve on investments with terms approximating the expected life during the fiscal quarter an option is granted. The Company has not declared and has no current plan to declare a dividend. | |||||||||||||
The weighted average assumptions used for the twelve months ended January 31, 2014, 2013, and 2012, respectively, and the resulting estimates of weighted-average fair value per share of options and ESPP shares granted during those periods are as follows: | |||||||||||||
ESPP | Stock Options | ||||||||||||
Fiscal Year Ended January 31, | |||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
Expected life (in years) | 0.8 | 0.9 | 0.78 | 4.39 | 4.38 | 4.48 | |||||||
Volatility | 57 | % | 53 | % | 68 | % | 51 | % | 58 | % | 65 | % | |
Average risk free interest rate | 0.64 | % | 0.2 | % | 0.28 | % | 1.07 | % | 0.75 | % | 1.61 | % | |
Dividend Yield | — | % | — | % | — | % | — | % | — | % | — | % | |
Weighted-average fair value during the period | $3.21 | $4.22 | $3.29 | $5.12 | $4.56 | $5.06 |
RETIREMENT_PLANS
RETIREMENT PLANS | 12 Months Ended |
Jan. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
RETIREMENT PLANS | ' |
RETIREMENT PLANS | |
In December 1997, the Company established a 401(k) Retirement Plan (the "Retirement Plan”) available to employees who meet the plan’s eligibility requirements. Participants may elect to contribute a percentage of their compensation to the Retirement Plan up to a statutory limit. Participants are fully vested in their contributions. As of January 1, 2014, the Company has elected to match 50% of the contributions made by employees who have elected to participate in its 401(k) Plan, including executives, up to $3,000 annually. This match is accrued for on a monthly basis and contributed to the 401(k) accounts of all participating employees annually on January 31st for the preceding calendar year. During the fiscal year ended January 31, 2014, TiVo has expensed $287,000 in 401(k) match expense. The Company has not yet made any contributions to the Retirement Plan from inception through January 31, 2014. TiVo is under no obligation to continue matching future employee contributions and at the Company's discretion may change its practices at any time. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
INCOME TAXES | ' | |||||||||
INCOME TAXES | ||||||||||
Income (loss) from continuing operations before income taxes for the fiscal years ended January 31, 2014, 2013, and 2012 were $103.9 million, $(4.2) million, and $103.0 million, respectively. | ||||||||||
Income tax benefit (provision) was $167.9 million, $(1.0) million, and $(807,000)in fiscal years 2014, 2013, and 2012, respectively. | ||||||||||
The income tax benefit in fiscal year 2014 is primarily due to release of valuation allowance. 2013 and 2012 income tax expense was primarily related to state taxes and withholding taxes in foreign jurisdictions as noted in the table below: | ||||||||||
Fiscal Year Ended January 31, | ||||||||||
Current: | 2014 | 2013 | 2012 | |||||||
Federal | $ | (38 | ) | $ | 2 | $ | — | |||
State | 3,240 | 778 | 657 | |||||||
Foreign | — | 256 | 150 | |||||||
Total | $ | 3,202 | $ | 1,036 | $ | 807 | ||||
Deferred: | ||||||||||
Federal | $ | (167,382 | ) | $ | — | $ | — | |||
State | (3,731 | ) | — | — | ||||||
Foreign | — | — | — | |||||||
Total | $ | (171,113 | ) | $ | — | $ | — | |||
Provision (benefit) for income taxes | $ | (167,911 | ) | $ | 1,036 | $ | 807 | |||
The income tax (benefit) expense differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pretax income (loss) as a result of the following: | ||||||||||
Fiscal Year Ended January 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Federal tax at statutory rate | $ | 36,367 | $ | (1,480 | ) | $ | 36,039 | |||
State taxes | 1,628 | 778 | 657 | |||||||
Stock Based Compensation | 559 | (318 | ) | 360 | ||||||
Federal Research Tax Credit | 333 | — | — | |||||||
Non-deductible compensation expense | 3,209 | 3,442 | 2,477 | |||||||
Non-deductible expenses and other | 1,163 | 90 | 35 | |||||||
Foreign withholding tax | — | 256 | 150 | |||||||
Change in valuation allowance | (211,170 | ) | (1,732 | ) | (38,911 | ) | ||||
Total tax expense | $ | (167,911 | ) | $ | 1,036 | $ | 807 | |||
The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets are presented below: | ||||||||||
As of January 31, | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | (in thousands) | |||||||||
Net operating loss carryforwards | $ | 78,294 | $ | 108,749 | ||||||
Research and alternative minimum tax credits | 34,022 | 33,628 | ||||||||
Deferred revenue and rent | 48,885 | 43,053 | ||||||||
Capitalized research and development | 4,175 | 7,367 | ||||||||
Stock based compensation | 14,180 | 14,504 | ||||||||
Other | 17,001 | 16,339 | ||||||||
Total deferred tax assets | 196,557 | 223,640 | ||||||||
Deferred tax liabilities: | ||||||||||
TRA intangibles | (1,025 | ) | (3,174 | ) | ||||||
Total deferred tax liabilities | (1,025 | ) | (3,174 | ) | ||||||
Valuation allowance | (24,419 | ) | (220,466 | ) | ||||||
Net deferred tax assets (liabilities) | $ | 171,113 | $ | — | ||||||
Our benefit for income taxes for the year ended January 31, 2014 is due to the release of the valuation allowance of $211.2 million. During the second quarter of fiscal 2014, due to the resolution of a material litigation in regards to the Company's intellectual property the Company concluded that it was more likely than not that it would be able to realize the benefit of a portion of its deferred tax assets in the future. The Company based this conclusion on recent historical book and taxable income and projections of future operating income. As a result, the Company released $211.2 million during fiscal 2014, of the valuation allowance attributable to federal and all states, except for the state of California. | ||||||||||
For tax years beginning on or after January 1, 2013 companies are required to apportion income for California purposes under a single sales factor. Effective for the 2012 fiscal year the Company had revalued its California deferred tax assets under single sales factor. The Company continues to maintain a valuation allowance of $24.4 million on its California deferred tax assets as it is not more likely than not that such deferred assets will be recognized under current California law. | ||||||||||
As of January 31, 2014 the Company had net operating loss carryforwards for federal and state income tax purpose of approximately $284.1 million and $172.9 million, respectively, available to reduce future income subject to income taxes. Of these amounts, approximately $85.6 million represent federal and state tax deductions from stock option compensation. The tax benefit from these deductions will be recorded as an adjustment to additional paid-in capital in the year in which the benefit is realized. | ||||||||||
Federal and state laws impose substantial restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an "ownership change," as defined in Section 382 of the Internal Revenue Code. The Company has determined that there have been multiple ownership changes since inception of the Company. However, the ownership changes do not place any limitation on the utilization of net operating losses and tax credit carryforwards. The Company had an acquisition during the fiscal year ended January 31, 2013 for which Section 382 will apply. The additional net operating loss from this acquisition after the Section 382 limitation is approximately $12.9 million. | ||||||||||
The federal net operating loss carryforwards expire beginning in fiscal year ending 2022 through 2031. The state net operating loss carryforwards expire beginning in fiscal year ending 2016 through 2031. As of January 31, 2014, unused research and development tax credits of approximately $24.7 million and $32.1 million, respectively, are available to reduce future federal and California income taxes. The federal research credit carryforwards will begin to expire, if not utilized, by fiscal year 2020. California research and experimental tax credits carry forward indefinitely until utilized. | ||||||||||
On January 2, 2013, President Obama signed into legislation, The American Taxpayer Relief Act of 2012 which retroactively reinstated the research credit for amounts paid or incurred from January 1, 2013 through December 31, 2013. The expiration of the federal research credit as of December 31, 2013 does not have material impact on financial results of the Company in the twelve months ended January 31, 2014. | ||||||||||
The aggregate changes in the balance of gross unrecognized tax benefits were as follows: | ||||||||||
Fiscal Year Ended January 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Beginning Balance | $ | 14,812 | $ | 12,075 | 8,745 | |||||
Additions based on tax positions related to current year | 1,583 | 2,579 | 3,253 | |||||||
Additions for tax positions in prior years | 23 | 158 | 77 | |||||||
Lapse of statute of limitations | (154 | ) | — | — | ||||||
Reduction for tax positions of prior years | $ | (1,101 | ) | $ | — | — | ||||
Ending Balance | $ | 15,163 | $ | 14,812 | $ | 12,075 | ||||
The total amount of unrecognized tax benefit, if recognized, that would affect the effective tax rate would be approximately $6.2 million at January 31, 2014. The remaining unrecognized tax benefits at January 31, 2014 would not affect the Company’s effective tax rate if recognized due to the Company’s California deferred tax assets being fully offset by a valuation allowance. Since the timing of resolution and/or closure of the Company's open tax years is highly uncertain, the Company does not believe that the unrecognized tax benefits would materially change in the next twelve months. | ||||||||||
The Company classifies interest and penalties related to uncertain tax positions in income tax expense, if applicable. | ||||||||||
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The open tax years for the major jurisdictions are as follows: | ||||||||||
Federal | 2010 – 2014 | |||||||||
California | 2009 – 2014 | |||||||||
However, due to the fact the Company has net operating losses and credits carried forward in most jurisdictions, certain items attributable to technically closed years are still subject to adjustment by the relevant taxing authority through an adjustment to tax attributes carried forward to open years. Since the timing of resolution and closure of the Company's open tax years is highly uncertain, the Company does not believe that the unrecognized tax benefits would materially change in the next twelve months. |
NET_INCOME_LOSS_PER_COMMON_SHA
NET INCOME (LOSS) PER COMMON SHARE | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
NET INCOME (LOSS) PER COMMON SHARE | ' | |||||||||
NET INCOME (LOSS) PER COMMON SHARE | ||||||||||
Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding, excluding unvested restricted stock. | ||||||||||
Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, stock awards, and performance stock awards and are calculated using the treasury stock method. Also included in the weighted average effect of dilutive securities is the diluted effect of the convertible senior notes which is calculated using the if-converted method. | ||||||||||
The following table sets forth the computation of basic and diluted earnings per common share: | ||||||||||
Fiscal Year Ended January 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(income/(loss) in thousands) | ||||||||||
Numerator: | ||||||||||
Net income (loss) | $ | 271,816 | $ | (5,264 | ) | $ | 102,161 | |||
Interest on convertible notes | 5,009 | — | 6,979 | |||||||
Net Income for purpose of computing net income (loss) per diluted share | 276,825 | (5,264 | ) | 109,140 | ||||||
Denominator: | ||||||||||
Weighted average shares outstanding, excluding unvested restricted stock | 118,445,466 | 119,411,727 | 116,592,943 | |||||||
Weighted average effect of dilutive securities: | ||||||||||
Stock options and restricted stock | 4,893,804 | — | 4,200,288 | |||||||
Convertible senior notes | 15,462,193 | — | 15,462,193 | |||||||
Denominator for diluted net income (loss) per common share | 138,801,463 | 119,411,727 | 136,255,424 | |||||||
Basic net income (loss) per common share | $ | 2.29 | $ | (0.04 | ) | $ | 0.88 | |||
Diluted net income (loss) per common share | $ | 1.99 | $ | (0.04 | ) | $ | 0.8 | |||
The weighted average number of shares outstanding used in the computation of basic and diluted net loss per share in the fiscal years ended January 31, 2014, 2013, and 2012 do not include the effect of the following potentially outstanding common stock because the effect would have been anti-dilutive: | ||||||||||
As of January 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Unvested restricted stock | 3,068 | 5,956,316 | 1,007,735 | |||||||
Options to purchase common stock | 592,761 | 10,358,316 | 4,286,876 | |||||||
Potential shares to be issued from ESPP | — | 87,999 | — | |||||||
Convertible senior notes | — | 15,462,193 | — | |||||||
Total | 595,829 | 31,864,824 | 5,294,611 | |||||||
SETTLEMENTS
SETTLEMENTS | 12 Months Ended | ||||
Jan. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
SETTLEMENTS | ' | ||||
From time to time, the Company is involved in numerous lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated. As of January 31, 2014, the Company has not accrued any pre-judgment liability for any lawsuits filed against the Company, as the Company has neither determined that it is probable that a liability has been incurred at the date of the financial statements nor that the amount of any loss can be reasonably estimated. The Company has accrued $4.7 million, including accrued interest, for arbitration proceedings related to a contractual dispute. The Company is currently appealing an unfavorable decision in the initial arbitration proceeding. The Company expenses legal costs as they are incurred. | |||||
SETTLEMENTS | |||||
DISH Network | |||||
On April 29, 2011, TiVo entered into a Settlement and Patent License Agreement with EchoStar Corporation (EchoStar) and DISH Network Corporation (DISH). Under the terms of the agreement, DISH and EchoStar agreed to pay TiVo $500.0 million, including an initial payment of $300.0 million received by TiVo on May 2, 2011 with the remaining $200.0 million to be distributed in six equal annual installments of $33.3 million between 2012 and 2017. | |||||
The total consideration of $500.0 million was allocated on a relative fair value basis as $175.7 million to the past infringement and litigation settlement element, $2.9 million to interest income related to past infringement and $321.4 million to the future license royalties element. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the fiscal year ended January 31, 2012. The amount related to interest income was recorded under “Interest income” fiscal year ended January 31, 2012. $321.4 millionof future license royalties will be recorded as technology revenue on a straight-line amortization basis over the remaining life of the patent through July 30, 2018. | |||||
AT&T Inc. | |||||
On January 3, 2012, TiVo Inc. entered into a Settlement and Patent License Agreement with AT&T Inc. (AT&T). Under the terms of the Agreement, AT&T has agreed to pay TiVo a minimum amount of $215.0 million plus incremental monthly fees per DVR subscriber if AT&T's subscriber base exceeds certain pre-determined levels. The initial payment of $51.0 million was paid to TiVo on January 4, 2012 with the remaining $164.0 million due to TiVo 30 days after the end of each calendar quarter in the amount of $5.0 million for the first four calendar quarters and approximately $6.5 million in subsequent calendar quarters through the calendar quarter ending June 30, 2018. Any incremental additional per subscriber fees are due to TiVo on the same schedule. The Agreement expires on July 30, 2018. | |||||
The total consideration of $215.0 million was allocated on a relative fair value basis as $54.4 million to the past infringement and litigation settlement element, $254,000 to interest income related to past infringement and $160.3 million to the future base license royalties element. The future base license royalties element does not include any incremental monthly fees per DVR subscriber payable if the AT&T subscriber base exceeds certain pre-determined levels. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the fiscal year ended January 31, 2012. The amount related to interest income was recorded under “Interest income” in the fiscal year ended January 31, 2012. $160.3 million of future license royalties will be recorded as Technology revenues on a straight-line amortization basis over the term of the agreement through July 30, 2018. Any incremental monthly fees per DVR subscriber payable if the AT&T's subscriber base exceeds certain pre-determined levels will be recognized as Technology revenues when reported to TiVo by AT&T. | |||||
As a result of the settlement and patent cross-licensing agreement, TiVo expensed an estimate of $14.5 million in contingent legal fees recorded under general and administration expenses in its statement of operations in the fiscal year ended January 31, 2012. TiVo paid $4.3 million in contingent legal fees during the fiscal year ended January 31, 2012. The remaining estimate of $10.2 million was paid during the fiscal year ended January 31, 2013 upon the favorable resolution of the Microsoft and ITC legal matters. | |||||
Verizon Communications, Inc. | |||||
On September 21, 2012, TiVo Inc. entered into a Settlement and Patent License Agreement with Verizon Communications, Inc. (Verizon). Under the terms of the Agreement, Verizon has agreed to pay TiVo a minimum amount of $250.4 million plus incremental monthly fees per DVR subscriber if Verizon's subscriber base exceeds certain pre-determined levels which increase annually. The initial payment of $100.0 million was paid to TiVo on September 28, 2012 with the remaining $150.4 million due to TiVo 30 days after the end of each calendar quarter in the amount of $6.0 million through the calendar quarter ending September 30, 2018. Any incremental additional per subscriber fees are due to TiVo on the same schedule. The Agreement expires on July 31, 2018. | |||||
TiVo and Verzion agreed to dismiss all pending litigation between the companies with prejudice. TiVo granted Verizon a limited license under its advanced television patents, including the patents that TiVo had asserted against Verizon (U.S. Patent Nos. 6,233,389, 7,493,015, and 7,529,465), to make, have made, use, sell, offer to sell, and import advanced television technology in connection with Verizon multichannel video programming services subject to certain limitations and exclusions. Verizon granted TiVo a limited license under its advanced television patents, including the patents that Verizon had asserted against TiVo (U.S. Patent Nos. 5,410,344, 5,635,979, 5,973,684, 6,367,078, 7,561,214 and 6,381,748), to make, have made, use, sell, offer to sell and import advanced television technology in connection with TiVo products and services, including products and services provided to other multichannel video programming service providers, subject to certain limitations and exclusions. TiVo may terminate the rights and licenses granted to Verizon pursuant to the Agreement under certain circumstances, including but not limited to if Verizon has failed to make timely payment. | |||||
The agreement includes multiple elements consisting of: (i) an exchange of licenses to intellectual property, including covenants not to assert claims of patent infringement for the period from September 21, 2012 until July 31, 2018, (ii) an interest income component related to the past infringement, and (iii) the settlement of all outstanding litigation and claims between TiVo and Verizon. The proceeds of the agreement were allocated among the principal elements of the transaction based on relative fair values of each element. | |||||
TiVo estimated the fair value of each element using an income approach. The significant inputs and assumptions used in this valuation included actual past and projected future subscription base, estimated DVR penetration rates, estimated market-based royalty rates, estimated risk-adjusted discount rates, and useful lives of the technology, among others. The development of a number of these inputs and assumptions in the model requires a significant amount of management judgment and is based upon a number of factors. Changes in these assumptions may have a substantial impact on the fair value assigned to each element. These inputs and assumptions represent management's best estimates at the time of the transaction. The total consideration of $250.4 million was allocated on a relative fair value basis as $78.4 million to the past infringement and litigation settlement element, $568,000 to interest income related to past infringement and $171.4 million to the future base license royalties element. The future base license royalties element does not include any incremental monthly fees per DVR subscriber payable if the Verizon subscriber base exceeds certain pre-determined levels. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the quarter ended October 31, 2012. The amount related to interest income was recorded under “Interest income” in the quarter ended October 31, 2012. $171.4 million of future license royalties will be recorded as technology revenues over the term of the agreement through July 31, 2018 using a pattern reflective of an increasing number of subscribers covered by the minimum fixed license payments. Any incremental monthly fees per DVR subscriber payable if the Verizon's subscriber base exceeds certain pre-determined levels will be recognized as Technology revenues when reported to TiVo by Verizon. In addition to the $250.4 million in compensation, TiVo will also receive incremental monthly fees at a higher rate than the rate implied by the guaranteed fees per Verizon DVR subscriber if the growth of Verizon's DVR subscriber base exceeds certain pre-determined levels. Any incremental additional per subscriber fees are due to TiVo 30 days after the end of each calendar quarter in which they are earned. | |||||
Motorola/Cisco | |||||
Effective July 2, 2013, TiVo entered into a settlement and patent license agreement with ARRIS Group, Inc. (Arris) (owner of General Instrument Corporation, formerly a subsidiary of Motorola Mobility, Inc.), Cisco Systems, Inc. (Cisco), and Google Inc. (Google) (owner of Motorola Mobility, LLC formerly Motorola Mobility, Inc.) (with the settlement with Arris, Google, and Cisco referred to as the Motorola/Cisco settlement). Pursuant to the terms of the Motorola/Cisco settlement the parties agreed to settle and dismiss all outstanding litigation between them, including related litigation involving Time Warner Cable (as described in TiVo's periodic reports filed with the Securities and Exchange Commission ), provide licenses to certain patents between the parties, and release patent infringement claims between the parties with respect to all outstanding litigation in exchange for a payment of $490.0 million to TiVo by Google and Cisco in connection with the Motorla/Cisco settlement. | |||||
The licenses granted by TiVo to Cisco and Google/Motorola Mobility under U.S. Patent Nos. 6,233,389, 7,529,465, 6,792,195, and 7,493,015 and certain related patents are perpetual. The other licenses granted by TiVo to Google/Motorola Mobility and from Google/Motorola Mobility to TiVo will expire on July 31, 2018. The other licenses granted by TiVo to Cisco and from Cisco to TiVo will expire on July 2, 2023, when the agreement expires. | |||||
The agreement includes multiple elements consisting of: (i) an exchange of licenses to certain intellectual property, (ii) an interest income component related to the past infringement, and (iii) the settlement of all outstanding litigation and claims between TiVo and Arris, Google/Motorola Mobility and Cisco. The proceeds of the agreement were allocated amongst the principal elements of the transaction based on relative fair values of each element. | |||||
TiVo estimated the fair value of future licensing revenue from July 2, 2013 until July 31, 2018 using an income approach and future licensing revenue from August 1, 2018 to July 2, 2023 using a market approach. The significant inputs and assumptions used in the valuations included actual past and projected future estimated infringing DVR shipments, estimated life of the DVR, estimated market-based royalty rates, and estimated risk-adjusted discount rates, among others. The development of a number of these inputs and assumptions in the model requires a significant amount of management judgment and is based upon a number of factors. Changes in these assumptions may have a substantial impact on the fair value assigned to each element. These inputs and assumptions represent management's best estimates at the time of the transaction. | |||||
The total consideration of $490.0 million was allocated on a relative fair value basis as $381.1 million to the future licensing revenue element, $752,000to interest income related to past infringement and $108.1 million of the past infringement and litigation settlement element. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the fiscal year ended January 31, 2014. The amount related to interest income was recorded under “Interest income” in the fiscal year ended January 31, 2014. The $381.1 million of license royalties has been or will be recorded as technology revenues over the term of the agreement through July 2023. | |||||
Technology revenues related to the above agreements were $141.6 million, $77.3 million and $35.3 million for the fiscal years ended January 31, 2014, 2013, and 2012, respectively. | |||||
Revenues and cash from the contractual minimums under our licensing agreements with DISH, AT&T, Verizon, and Motorola/Cisco through January 31, 2014 have been: | |||||
Licensing Related Technology Revenues | Cash Received | ||||
Fiscal Year Ending January 31, | (in thousands) | ||||
2012 | $35,275 | $117,679 | |||
2013 | 76,841 | 86,356 | |||
2014 | 136,532 | 464,725 | |||
Total | $248,648 | $668,760 | |||
Revenues and cash from the contractual minimums under all our licensing agreements with DISH, AT&T, Verizon, and Motorola/Cisco is expected to be recognized (revenues) and received (cash) for fiscal year 2015 and on an annual basis for the fiscal years thereafter as follows: | |||||
Licensing Related Technology Revenues | Minimum Cash Due | ||||
Fiscal Year Ending January 31, | (in thousands) | ||||
2015 | 169,641 | 83,579 | |||
2016 | 171,563 | 83,579 | |||
2017 | 173,129 | 83,579 | |||
2018 | 174,411 | 83,579 | |||
2019 | 88,629 | 31,139 | |||
2020 - 2024 | 8,193 | — | |||
Total | $785,566 | $365,455 | |||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jan. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On February 14, 2014, TiVo Inc. (TiVo) completed its previously announced acquisition of Digitalsmiths Corporation, a Delaware corporation (Digitalsmiths). Pursuant to the Agreement and Plan of Merger, TiVo, through its wholly-owned subsidiary, Dragonfly Merger Corp., a Delaware corporation, acquired all of the issued and outstanding shares of Digitalsmiths for $135 million in cash, subject to customary working capital adjustments, at which time Digitalsmiths became a wholly owned subsidiary of TiVo. |
SELECTED_QUARTERLY_FINANCIAL_S
SELECTED QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) | ' | ||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||||||||||
Quarterly Results of Operations | |||||||||||||||||||||||||
The following table presents certain unaudited statements of operations data for the Company's eight most recent quarters ended January 31, 2014. In management’s opinion, this unaudited information has been prepared on the same basis as the audited annual financial statements and includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair representation of the unaudited information for the quarters presented. This information should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto, included elsewhere in this annual report. The results of operations for any quarter are not necessarily indicative of results that may be expected for any future period. | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Jan 31, | Oct 31, | Jul 31, | Apr 30, | Jan 31, | Oct 31, | Jul 31, | Apr 30, | ||||||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | ||||||||||||||||||
(unaudited, in thousands except per share and share amounts) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Service revenues | 36,317 | 33,526 | 34,930 | 34,062 | 35,574 | 35,228 | 32,302 | 30,621 | |||||||||||||||||
Technology revenues | 47,716 | 48,133 | 42,056 | 27,725 | 30,153 | 25,727 | 21,825 | 23,887 | |||||||||||||||||
Hardware revenues | 22,301 | 35,597 | 23,104 | 20,786 | 23,129 | 21,072 | 11,129 | 13,261 | |||||||||||||||||
Net revenues | 106,334 | 117,256 | 100,090 | 82,573 | 88,856 | 82,027 | 65,256 | 67,769 | |||||||||||||||||
Cost of revenues | |||||||||||||||||||||||||
Cost of service revenues | 15,596 | 11,233 | 11,408 | 10,805 | 11,619 | 11,238 | 8,871 | 8,379 | |||||||||||||||||
Cost of technology revenues | 4,483 | 5,612 | 11,867 | 3,711 | 7,318 | 5,779 | 3,792 | 6,286 | |||||||||||||||||
Cost of hardware revenues | 23,163 | 33,017 | 21,957 | 18,496 | 21,847 | 23,434 | 14,431 | 18,471 | |||||||||||||||||
Total cost of revenues | 43,242 | 49,862 | 45,232 | 33,012 | 40,784 | 40,451 | 27,094 | 33,136 | |||||||||||||||||
Gross margin | 63,092 | 67,394 | 54,858 | 49,561 | 48,072 | 41,576 | 38,162 | 34,633 | |||||||||||||||||
Operating expenses | |||||||||||||||||||||||||
Research and development | 26,908 | 27,242 | 26,305 | 26,462 | 26,614 | 28,277 | 29,652 | 30,560 | |||||||||||||||||
Sales and marketing | 11,238 | 10,189 | 9,069 | 8,507 | 8,928 | 7,958 | 7,243 | 6,224 | |||||||||||||||||
Sales and marketing, subscription acquisition costs | 6,038 | 2,628 | 1,996 | 1,859 | 3,471 | 1,560 | 2,372 | 1,257 | |||||||||||||||||
General and administrative | 16,461 | 15,839 | 23,225 | 21,786 | 23,708 | 21,772 | 25,429 | 16,166 | |||||||||||||||||
Litigation Proceeds | — | — | (108,102 | ) | — | — | (78,441 | ) | — | — | |||||||||||||||
Income (loss) from operations | 2,447 | 11,496 | 102,365 | (9,053 | ) | (14,649 | ) | 60,450 | (26,534 | ) | (19,574 | ) | |||||||||||||
Interest income | 1,272 | 1,133 | 1,499 | 823 | 808 | 1,383 | 852 | 908 | |||||||||||||||||
Interest expense and other | (1,973 | ) | (2,165 | ) | (1,965 | ) | (1,974 | ) | (1,966 | ) | (1,958 | ) | (1,966 | ) | (1,982 | ) | |||||||||
Income (loss) before income taxes | 1,746 | 10,464 | 101,899 | (10,204 | ) | (15,807 | ) | 59,875 | (27,648 | ) | (20,648 | ) | |||||||||||||
Benefit from (provision for) income taxes | (1,036 | ) | 2,023 | 167,039 | (115 | ) | 31 | (848 | ) | (93 | ) | (126 | ) | ||||||||||||
Net income (loss) | 710 | 12,487 | 268,938 | (10,319 | ) | (15,776 | ) | 59,027 | (27,741 | ) | (20,774 | ) | |||||||||||||
Net income (loss) per common share | |||||||||||||||||||||||||
Basic | $ | 0.01 | $ | 0.11 | $ | 2.27 | $ | 0.09 | $ | (0.13 | ) | $ | 0.49 | $ | (0.23 | ) | $ | (0.17 | ) | ||||||
Diluted | $ | 0.01 | $ | 0.1 | $ | 1.96 | $ | 0.09 | $ | (0.13 | ) | $ | 0.44 | $ | (0.23 | ) | $ | (0.17 | ) | ||||||
Income (loss) for purposes of computing net income (loss) per share: | |||||||||||||||||||||||||
Basic | 710 | 12,487 | 268,938 | (10,319 | ) | (15,776 | ) | 59,027 | (27,741 | ) | (20,774 | ) | |||||||||||||
Diluted | 710 | 13,739 | 270,190 | (10,319 | ) | (15,776 | ) | 60,992 | (27,741 | ) | (20,774 | ) | |||||||||||||
Weighted average common and common equivalent shares: | |||||||||||||||||||||||||
Basic | 117,039,907 | 116,760,061 | 118,601,346 | 121,380,553 | 120,199,937 | 119,363,613 | 119,137,118 | 118,946,297 | |||||||||||||||||
Diluted | 121,668,803 | 136,736,001 | 137,992,699 | 121,380,553 | 120,199,937 | 138,587,931 | 119,137,118 | 118,946,297 | |||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||
Jan. 31, 2014 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Product Warranty Disclosure [Text Block] | ' | ||||||
Product Warranties | |||||||
The Company’s standard manufacturer's warranty period to consumers for TiVo-enabled DVRs is 90 days for parts and labor from the date of consumer purchase, and from 91-365 days for parts only. Within the limited warranty period, consumers are offered a no-charge exchange for TiVo-enabled DVRs returned due to product defect, within 90 days from the date of consumer purchase. Thereafter, consumers may exchange a TiVo-enabled DVR with a product defect for a charge. As of January 31, 2014 and January 31, 2013, the accrued warranty reserve was $621,000 and $419,000, respectively. The Company’s accrued warranty reserve is included in accrued liabilities in the accompanying condensed consolidated balance sheets. | |||||||
The Company also offers its TiVo-Owned customers separately priced optional 2-year and 3-year extended warranties. The Company defers and amortizes cost and revenue associated with the sales of these extended warranties over the warranty period or until a warranty is redeemed. Additionally the Company offers its MSO customers separately priced optional 3-year extended warranties. The Company defers the revenues associated with sale of these extended warranties over the second and third year of the warranty period. As of January 31, 2014, the extended warranty deferred revenue and cost was $2.0 million and $287,000, respectively. As of January 31, 2013, the extended warranty deferred revenue and cost was $875,000 and $269,000, respectively. | |||||||
Deferred Tax Assets [Policy Text Block] | ' | ||||||
Deferred Tax Assets | |||||||
The Company makes certain estimates in determining income tax expense for financial statement purposes. These estimates occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. From time-to-time, TiVo evaluates the expected realization of its deferred tax assets and determine whether a valuation allowance needs to be established or released. In determining the need for and amount of our valuation allowance, the Company assesses the likelihood that it will be able to recover its deferred tax assets using historical levels of income and estimates of future income. TiVo's estimates of future income include its internal projections and various internal estimates and certain external sources which it believes to be reasonable but that are unpredictable and inherently uncertain. Management also considers the jurisdictional mix of income and loss, changes in tax regulations in the period the changes are enacted and the type of deferred tax assets and liabilities. In assessing whether a valuation allowance needs to be established or released, management uses judgment in considering the cumulative effect of negative and positive evidence and the weight given to the potential effect of the evidence. Recent historical income or loss and future projected operational results have the most influence on the Company's determination of whether a deferred tax valuation allowance is required or not. | |||||||
Use of Estimates | ' | ||||||
Use of Estimates | |||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The estimates and judgments affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to estimated lives of product lifetime subscriptions, total estimated cost of engineering service and profitability of deployment agreements, allowance for doubtful accounts, product returns, inventories and related reserves, warranty obligations, contingencies, stock compensation, goodwill, valuation of deferred taxes, and intangible assets impairment, and allocation of amounts from litigation settlements. The Company bases estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates will be reflected in the financial statements in future periods. | |||||||
Cash and Cash Equivalents | ' | ||||||
Cash and Cash Equivalents | |||||||
The Company considers investments with a maturity of three months or less when purchased to be cash equivalents. The majority of payments due from banks for third-party credit card, debit card, and electronic benefit transactions (EBT) process within 24-72 hours, except for transactions occurring on a Friday, which are generally processed the following Monday. All credit card, debit card, and EBT transactions that process in less than three days are classified as cash and cash equivalents. Amounts due from banks for these transactions classified as cash totaled $1.9 million and $1.2 million at January 31, 2014 and 2013, respectively. | |||||||
Short Term and Long Term Investments | ' | ||||||
Short-term and Long-term Investments | |||||||
Short-term and long-term investments are classified as available-for-sale and are carried at fair value. The Company’s short-term and long-term investments are reviewed each reporting period for declines in value that are considered to be other-than temporary and, if appropriate, the investments are written down to their estimated fair value. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in the Company’s consolidated statements of operations. Unrealized gains and unrealized losses deemed temporary are included in accumulated other comprehensive income (loss). The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income in the consolidated statements of operations. | |||||||
Receivables | ' | ||||||
Receivables | |||||||
Accounts receivable consist primarily of receivables from retailers, cable and satellite companies, as well as individual consumers and relate to its subscription, technology, and hardware revenues. Additionally, amounts due from banks for customer credit card, debit card and EBT transactions that take in excess of three days to process are classified as accounts receivable. As of January 31, 2014 and 2013 the Company had approximately $5.6 million and $4.6 million, respectively, of unbilled accounts receivable related to MSO service revenue and $8.2 million and $10.1 million, respectively, of unbilled accounts receivable related to technology revenue from AT&T. | |||||||
Allowance for Doubtful Accounts | ' | ||||||
Allowance for doubtful accounts | |||||||
TiVo maintains an allowance for doubtful accounts to reserve for potentially uncollectible trade receivables. The Company reviews its trade receivable by aging category to identify significant customers with known disputes or collection issues. For accounts not specifically identified, the Company provides allowances based on the age of the receivable. In determining the allowance, the Company makes judgments about the credit-worthiness of significant customers based on ongoing credit evaluations. TiVo also considers its historical level of credit losses and current economic trends that might impact the level of future credit losses. | |||||||
Inventories and Inventory Valuation | ' | ||||||
Inventories and Inventory Valuation | |||||||
Inventories consist primarily of finished DVR units and accessories and are stated at the lower of cost or market on an aggregate basis, with cost determined using the first-in, first-out method. The Company performs a detailed assessment of excess and obsolete inventory and purchase commitments at each balance sheet date, which includes a review of, among other factors, demand requirements and market conditions. Based on this analysis, the Company records adjustments, when appropriate, to reflect inventory of finished products and materials on hand at lower of cost or market and to reserve for products and materials which are not forecasted to be used in future production. | |||||||
Property and Equipment | ' | ||||||
Property and Equipment | |||||||
Property and equipment are stated at cost less accumulated depreciation. Maintenance and repair expenditures are expensed as incurred. | |||||||
Depreciation is computed using the straight-line method over estimated useful lives as follows: | |||||||
Furniture and fixture | 3-5 years | ||||||
Computer and office equipment | 3-5 years | ||||||
Lab equipment | 3 years | ||||||
Leasehold improvements | The shorter of 7 years or the term of the lease | ||||||
Capitalized software for internal use | 1-5 years | ||||||
Capitalized Software | ' | ||||||
Capitalized Software | |||||||
Software development costs are capitalized when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the development of a working model and the release of the final product to customers is short, and, therefore, the development costs incurred during this short period are immaterial and, as such, are not capitalized. | |||||||
Software development costs incurred as part of an approved project plan that result in additional functionality to internal use software are capitalized and amortized on a straight-line basis over the estimated useful life of the software, between one and five years. | |||||||
Goodwill | ' | ||||||
Goodwill | |||||||
The Company has goodwill in the amount of $12.3 million which represents the excess of the purchase price of its acquisitions over the fair value of the identified net tangible and intangible assets. The goodwill recognized in these acquisitions was derived from expected benefits from future technology, cost synergies, and a knowledgeable and experienced workforce who joined the Company after these acquisitions. Goodwill is not amortized, but is tested instead for impairment. The majority of goodwill is not expected to be tax deductible for income tax purposes. | |||||||
Goodwill is tested for impairment on an annual basis (on December 31) using a two-step model. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. Management has determined that the Company has one reporting unit. If the carrying value of the reporting unit exceeds its fair value, the second step would need to be conducted; otherwise, no further steps are necessary as no potential impairment exists. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of that goodwill. Any excess of the goodwill carrying value over the respective implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. In each period presented the fair value of the reporting unit exceeded its carrying value, thus the we were not required to perform the second step of the analysis, and no goodwill impairment charges were recorded. | |||||||
Intangible Assets | ' | ||||||
Intangible Assets | |||||||
Purchased intangibles are definite-lived intangible assets which are amortized on a straight-line basis over their estimated useful lives. Useful lives generally range from two to seven years. Purchased intangibles include intangible assets subject to amortization, such as patent rights and developed technology. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We measure recoverability of long-lived assets by comparing the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. An asset group is a group of assets and liabilities including the long lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If such assets are considered to not be recoverable, we recognize an impairment charge for the amount by which the carrying amounts of the assets exceeds the fair value of the assets. Fair value is estimated based on discounted future cash flows. | |||||||
The Company recognized non-cash impairment charges of $4.5 million in the three and twelve months ended January 31, 2014 related to intangible assets acquired as part of the TRA acquisition. The lower than expected profitability indicated that the carrying value of these assets exceeded their estimated fair values as determined by future discounted cash flow projections. When projecting the stream of future cash flows associated with TRA for purposes of determining long-lived asset recoverability, management makes assumptions, incorporating market conditions, sales growth rates, gross profit, and operating expenses. | |||||||
Sales Taxes | ' | ||||||
Sales Taxes | |||||||
The Company accounts for sales taxes imposed on its goods and services on a net basis in the consolidated statements of operations. | |||||||
Revenue Recognition | ' | ||||||
Revenue Recognition | |||||||
The Company generates service revenues from fees for providing the TiVo service to consumers and television service providers (also referred to as MSOs) and through the sale of advertising and audience research measurement services. The Company also generates technology revenues from licensing technology (Refer to Note 16. Settlements of Notes to Consolidated Financial Statements included in Part II, Item 8. of this report) and by providing engineering professional services. In addition, the Company generates hardware revenues from the sale of hardware products that enable the TiVo service. A substantial portion of the Company's revenues is derived from multiple element arrangements. | |||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, collectibility is probable, and there are no post-delivery obligations. Service revenue is recognized as the services are performed which generally is ratably over the term of the service period. | |||||||
Multiple Element Arrangements | |||||||
The Company's multiple deliverable revenue arrangements primarily consist of bundled sales of TiVo-enabled DVRs and TiVo service to consumers; arrangements with MSOs which generally include delivery of software customization and set up services, training, post contract support (PCS), TiVo-enabled DVRs, non-DVR set-top boxes (STBs), and TiVo service; and bundled sales of advertising and audience research measurement services. | |||||||
The Company allocates revenue to each element in a multiple-element arrangement based upon their relative selling price. The Company determines the selling price for each deliverable using VSOE of selling price or TPE of selling price, if it exists. If neither VSOE nor TPE of selling price exists for a deliverable, the Company uses its BESP for that deliverable. Since the use of the residual method is eliminated under the new accounting standards, any discounts offered by the Company are allocated to each of the deliverables. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for the respective element. However, revenue recognized for each deliverable is limited to amounts that are not contingent on future performance for other deliverables in the arrangement. | |||||||
Consistent with its methodology under previous accounting guidance, if available, the Company determines VSOE of fair value for each element based on historical standalone sales to third parties or from the stated renewal rate for the elements contained in the initial contractual arrangement. The Company currently estimates selling prices for its PCS, training, TiVo-enabled DVRs and non-DVR STBs for MSOs and TiVo service for consumers based on VSOE of selling price. In some instances, the Company may not be able to obtain VSOE of selling price for all deliverables in an arrangement with multiple elements. This may be due to the Company infrequently selling each element separately or not pricing products within a narrow range. When VSOE cannot be established, the Company attempts to estimate the selling price of each element based on TPE. TPE would consist of competitor prices for similar deliverables when sold separately. Generally, the Company's offerings contain significant differentiation such that the comparable pricing of products with similar functionality or services cannot be obtained. Furthermore, the Company sells TiVo-enabled DVRs to consumers whereas its competitors usually lease them to their customers. Therefore, the Company is typically not able to obtain TPE of selling price. When the Company is unable to establish a selling price using VSOE or TPE, which is generally the case for sales of TiVo-enabled DVRs to consumers and advertising and audience research measurement services, the Company uses its BESP in determining the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. BESP is generally used for offerings that are not typically sold on a standalone basis or for new or highly customized offerings. The Company establishes pricing for its products and services by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and industry pricing practices. When determining BESP for a deliverable that is generally not sold separately, these factors are also considered. | |||||||
TiVo-enabled DVRs and TiVo service | |||||||
The Company sells the DVR and service directly to end-users through bundled sales programs through the TiVo website. Under these bundled programs, the customer receives a DVR and commits to a minimum subscription period of one year for monthly payment plans (monthly program) or for the lifetime of the product for one upfront payment (prepaid program). In the case of the monthly program, after the initial committed subscription term, the customers have various pricing options at which they can renew the subscription. | |||||||
VSOE of selling price for the subscription services is established based on standalone sales of the service and varies by service period. The Company is not able to obtain VSOE for the DVR element due to infrequent sales of standalone DVRs to consumers. The BESP of the DVR is established based on the price at which the Company would sell the DVR without any service commitment from the customer. Under these bundled programs, revenue is allocated between hardware revenue for the DVR and service revenue for the subscription on a relative selling price basis, with the DVR revenue recognized upon delivery, up to an amount not contingent on future service delivery, and the subscription revenue recognized over the term of the service. | |||||||
Subscription revenues from product lifetime subscriptions are recognized ratably over the Company's estimate of the useful life of a TiVo-enabled DVR associated with the subscription. The estimates of expected lives are dependent on assumptions with regard to future churn of product lifetime subscriptions. The Company continuously monitors the useful life of a TiVo-enabled DVR and the impact of the differences between actual churn and forecasted churn rates. If subsequent actual experience is not in line with the Company's current assumptions, including higher churn of product lifetime subscriptions due to the incompatibility of its standard definition TiVo units with high definition programming and increased competition, the Company may revise the estimated life which could result in the recognition of revenues from this source over a longer or shorter period. Prior to November 1, 2011 the Company amortized all product lifetime subscriptions over a 60 month period. Effective November 1, 2011, the Company has extended the period it uses to recognize product lifetime subscription revenues from 60 months to 66 months for product lifetime subscriptions where it has not recognized all of the related deferred revenue as of the reassessment date. | |||||||
End users have the right to cancel their subscription within 30 days of subscription activation for a full refund. TiVo establishes allowances for expected subscription cancellations. | |||||||
Arrangements with MSOs | |||||||
The Company has two different types of arrangements with MSOs that include technology deployment and engineering services in such agreements. The Company's arrangements with MSOs typically include software customization and set up services, limited training, PCS, TiVo-enabled DVRs, non-DVR STBs, and TiVo service. | |||||||
In instances where TiVo hosts the TiVo service, the Company recognizes revenue under the general revenue recognition guidance. The Company determines whether evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collection is reasonably assured. Revenue recognition is deferred until such time as all of the criteria are met. Elements in such arrangements usually include DVRs, non-DVR STBs, TiVo service hosting, associated maintenance, and support and training. Non-refundable payments received for customization and set up services are deferred and recognized as revenue ratably over the longer of the contractual or customer relationship period. The related cost of such services is capitalized to the extent it is deemed recoverable and amortized to cost of revenues over the same period as revenue. The Company has established VSOE of selling prices for training, DVRs, non-DVR STBs, and maintenance and support based on the price charged in standalone sales of the element or stated renewal rates in the agreement. The BESP of TiVo service is determined considering the size of the MSO and expected volume of deployment, market conditions, competitive landscape, internal costs, and gross margin objectives. Total arrangement consideration is allocated among individual elements on a relative basis and revenue for each element is recognized when the basic revenue recognition criteria are met for the respective element. | |||||||
In arrangements where the Company does not host the TiVo service and that include engineering services that are essential to the functionality of the licensed technology or involve significant customization or modification of the software, the Company recognizes revenue under industry specific software revenue recognition guidance. Under this guidance, such arrangements are accounted for using the percentage-of-completion method or a completed-contract method. The percentage-of-completion method is used if the Company believes it is able to make reasonably dependable estimates of the extent of progress toward completion and the arrangement as a whole is reasonably expected to be profitable. The Company measures progress toward completion using an input method based on the ratio of costs incurred, principally labor, to date to total estimated costs of the project. These estimates are assessed continually during the term of the contract, and revisions are reflected when the changed conditions become known. | |||||||
In some cases, it may not be possible to separate the various elements within the arrangement due to a lack of VSOE of selling prices for undelivered elements in the contract or because of the lack of reasonably dependable estimates of total costs. In these situations, provided that the Company is reasonably assured that no loss will be incurred under the arrangement, the Company recognizes revenues and costs based on a zero profit model, which results in the recognition of equal amounts of revenues and costs, until the engineering professional services are complete. Costs incurred in excess of revenues are deferred up to the amount deemed recoverable. Thereafter, any profit from the engineering professional services is recognized over the period of the maintenance and support or other services that are provided, whichever is longer. | |||||||
If the Company cannot be reasonably assured that no loss will be incurred under the arrangement, the Company will account for the arrangement under the completed contract method, which results in a full deferral of the revenue and costs until the project is complete. Provisions for losses are recorded when estimates indicate that a loss will be incurred on the contract. | |||||||
Advertising and Audience Research Measurement Services | |||||||
Advertising and audience research measurement service revenue is recognized as the service is provided. When advertising services are sold in packages customized for each campaign, they generally last for up to three months. Because of the significant customization of offerings, the Company historically has not been able to obtain VSOE of selling prices for each element in the package. Accordingly, the Company would combine all elements in the package as a single unit and recognize revenue ratably over the campaign period. As a result of the updated guidance on multiple element revenue arrangements, the Company can now estimate BESP for each element in the package and separate them into individual units of accounting. Nonetheless, the new units of accounting have very similar revenue earning patterns and timing and the amounts of revenue recorded in each period are not significantly impacted by the new guidance. | |||||||
Hardware Revenues | |||||||
Hardware revenues represent revenues from standalone hardware sales and amounts allocated to hardware elements in multiple element arrangements. Revenues are recognized upon product shipment to the customers or receipt of the products by the customer, depending on the shipping terms, provided that all fees are fixed or determinable, evidence of an arrangement exists, and collectibility is reasonably assured. End users have the right to return their product within 30 days of the purchase. TiVo establishes allowances for expected product and service returns and these allowances are recorded as a direct reduction of revenues and accounts receivable. | |||||||
Certain payments to retailers and distributors such as market development funds and revenue share are recorded as a reduction of hardware revenues rather than as a sales and marketing expense. TiVo's policy for revenue share payments is to reduce revenue when these payments are incurred and fixed or determinable. TiVo reduces revenue at the later of the date at which the related hardware revenue is recognized or the date at which the market development program is offered. | |||||||
Share-based Compensation | ' | ||||||
Stock-Based Compensation | |||||||
The Company has equity incentive plans under which officers, employees, consultants, and non-employee directors may be granted options to purchase shares of the Company’s authorized but unissued or reacquired common stock, and may also be granted restricted stock, performance based stock options and other stock awards. Additionally the Company has an Employee Stock Purchase Plan (ESPP) which officers and employees can participate. Upon the exercise of options, the Company issues new common stock from its authorized shares. | |||||||
The fair value of TiVo’s restricted stock awards is calculated based on the fair market value of the Company’s stock at the grant date. The fair value of TiVo’s stock options and ESPP awards is estimated using a Black-Scholes option valuation model and Monte-Carlo valuation model for stock awards with market vesting conditions. TiVo recognizes compensation expense for stock option awards expected to vest on a straight-line basis over the requisite service period of the award. | |||||||
Advertising Costs | ' | ||||||
Advertising Costs | |||||||
The Company expenses advertising costs related to its products and service as incurred. Marketing co-op development payments, where the Company receives, or will receive, an identifiable benefit (goods or services) in exchange for the amount paid to its customer, and the Company can reasonably estimate the fair value of the benefit it receives, are classified as marketing expense. For the fiscal years ended January 31, 2014, 2013, and 2012, this amount was immaterial. All other marketing co-op development payments are classified as a reduction of hardware revenues. Advertising expenses were $4.9 million, $4.3 million, and $2.5 million, of sales and marketing, subscription acquisition costs for the fiscal years ended January 31, 2014, 2013, and 2012, respectively. Included in these advertising expenses were $3.4 million, $3.9 million, and $2.0 million, respectively, related to media placement costs. | |||||||
Product Warranties | ' | ||||||
Warranty Expense | |||||||
The Company accrues for the expected material and labor costs required to provide warranty services on its hardware products. The Company’s warranty reserve liability is calculated as the total volume of unit sales over the warranty period, multiplied by the expected rate of warranty returns (based on historical experience) multiplied by the estimated cost to replace or repair the customers’ product returns under warranty. | |||||||
Income Taxes | ' | ||||||
Income Taxes | |||||||
The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. | |||||||
TiVo takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. | |||||||
The Company’s policy is to include interest and penalties related to unrecognized tax benefits, if any, within the provision for taxes in the consolidated statements of operations. | |||||||
Business Concentrations and Credit Risk | ' | ||||||
Business Concentrations and Credit Risk | |||||||
The Company’s business is concentrated primarily in the United States and is dependent on discretionary consumer spending. Continued uncertainty or adverse changes in the economy could lead to additional significant declines in discretionary consumer spending, which, in turn, could result in further declines in the demand for the TiVo service and TiVo-enabled DVRs. Decreases in demand for the Company’s products and services, particularly during the critical holiday selling season, could have an adverse impact on its operating results and financial condition. Uncertainty and adverse changes in the economy could also increase the risk of losses on the Company’s investments, increase costs associated with developing and producing its products, increase TiVo’s churn rate per month, increase the cost and decrease the availability of potential sources of financing, and increase the Company’s exposure to losses from bad debts, any of which could have an adverse impact on the Company’s financial condition and operating results. | |||||||
Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash, cash equivalents, short-term and long-term investments, and trade receivables. The Company currently invests the majority of its cash in high-grade government and corporate debt and maintains them with two financial institutions with high credit ratings. As part of its cash management process, the Company performs periodic evaluations of the relative credit ratings of these financial institutions and issuers of the securities the Company owns. The Company has not experienced significant credit losses on its cash, cash equivalents, or short-term and long-term investments. | |||||||
The majority of the Company’s customers are concentrated in the United States. The Company is subject to a minimal amount of credit risk related to service revenue contracts as these are primarily obtained through credit card sales. The Company sells its TiVo-enabled DVRs to retailers under customary credit terms and generally requires no collateral. The Company's significant revenue concentrations as of January 31, 2014, 2013, and 2012 were as follows: | |||||||
Fiscal Year Ended January 31, | |||||||
2014 | 2013 | 2012 | |||||
DISH | 11 | % | 15 | % | 14 | % | |
Google and Cisco in connection with Motorola/Cisco settlement | 11 | % | * | * | |||
* Less than 10%. | |||||||
The Company’s accounts receivable concentrations as of January 31, 2014 and 2013 were as follows: | |||||||
As of January 31, | |||||||
2014 | 2013 | ||||||
AT&T | 23 | % | 24 | % | |||
Suddenlink | 13 | % | 23 | % | |||
Com Hem | 12 | % | * | ||||
* Less than 10%. | |||||||
The Company does not have a long-term written supply agreement with Broadcom, the sole supplier of the system controller for its DVR. In instances where a supply agreement does not exist and suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or deliver its products and services to its customers on time if at all. | |||||||
The TiVo service is enabled through the use of a DVR manufactured for TiVo by a third-party contract manufacturer. The Company also relies on third-parties with whom it outsources supply-chain activities related to inventory warehousing, order fulfillment, distribution, and other direct sales logistics. The Company cannot be sure that these parties will perform their obligations as expected or that any revenue, cost savings, or other benefits will be derived from the efforts of these parties. If any of these parties breaches or terminates their agreement with TiVo or otherwise fails to perform their obligations in a timely manner, the Company may be delayed or prevented from commercializing its products and services. | |||||||
Recent Accounting Pronoucements | ' | ||||||
Recent Accounting Pronouncements | |||||||
In June 2013, the Financial Accounting Standards Board ratified Emerging Issues Task Force (EITF) Issue 13-C, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” which concludes an unrecognized tax benefit should be presented as a reduction of a deferred tax asset when settlement in this manner is available under the tax law. The Company will adopt this amendment as of the fiscal quarter ending April 30, 2014. The Company does not believe that the impact of adopting this amendment will be significant on the Company's results of operations and financial condition. |
CASH_AND_INVESTMENTS_Policies
CASH AND INVESTMENTS (Policies) | 12 Months Ended |
Jan. 31, 2014 | |
Investments and Cash [Abstract] | ' |
Marketable Securities | ' |
The Company’s investment securities portfolio consists of various debt instruments, including corporate and government bonds, asset and mortgage-backed securities, foreign government securities, government securities, and municipal bonds, all of which are classified as available-for-sale. | |
Cost Method Investments | ' |
TiVo has an investment in a private company where the Company’s ownership is less than 20% and TiVo does not have significant influence. The investment is accounted for under the cost method and is periodically assessed for other-than-temporary impairment. Refer to Note 4. "Fair Value" for additional information on the impairment assessment of the investment. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Policies) | 12 Months Ended | ||||
Jan. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Guarantees, Indemnifications and Warranties | ' | ||||
The Company undertakes indemnification obligations in its ordinary course of business. For instance, the Company has undertaken to indemnify its underwriters and certain investors in connection with the issuance and sale of its securities and the Company provides indemnification for its directors and officers in accordance with Delaware law. The Company has also undertaken to indemnify certain customers and business partners for, among other things, the licensing of its products, the sale of its DVRs, and the provision of engineering and consulting services. Pursuant to these agreements, the Company may indemnify the other party for certain losses suffered or incurred by the indemnified party in connection with various types of claims, which may include, without limitation, intellectual property infringement, advertising and consumer disclosure laws, certain tax liabilities, negligence and intentional acts in the performance of services and violations of laws, including certain violations of securities laws with respect to underwriters and investors. The term of these indemnification obligations is generally perpetual. The Company’s obligation to provide indemnification under its agreements with customer and business partners would arise in the event that a third party filed a claim against one of the parties that was covered by the Company’s indemnification obligation. As an example, if a third party sued a customer for intellectual property infringement and the Company agreed to indemnify that customer against such claims, its obligation would be triggered. | |||||
The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include but are not limited to: the nature of the claim asserted; the relative merits of the claim; the financial ability of the party suing the indemnified party to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. Due to the nature of the Company’s potential indemnity liability, its indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue operation in the ordinary course of business. | |||||
Under certain circumstances, the Company may have recourse through its insurance policies that would enable it to recover from its insurance company some or all amounts paid pursuant to its indemnification obligations. The Company does not have any assets held either as collateral or by third parties that, upon the occurrence of an event requiring it to indemnify a customer, the Company could obtain and liquidate to recover all or a portion of the amounts paid pursuant to its indemnification obligations. | |||||
Legal Costs | ' | ||||
From time to time, the Company is involved in numerous lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated. As of January 31, 2014, the Company has not accrued any pre-judgment liability for any lawsuits filed against the Company, as the Company has neither determined that it is probable that a liability has been incurred at the date of the financial statements nor that the amount of any loss can be reasonably estimated. The Company has accrued $4.7 million, including accrued interest, for arbitration proceedings related to a contractual dispute. The Company is currently appealing an unfavorable decision in the initial arbitration proceeding. The Company expenses legal costs as they are incurred. | |||||
SETTLEMENTS | |||||
DISH Network | |||||
On April 29, 2011, TiVo entered into a Settlement and Patent License Agreement with EchoStar Corporation (EchoStar) and DISH Network Corporation (DISH). Under the terms of the agreement, DISH and EchoStar agreed to pay TiVo $500.0 million, including an initial payment of $300.0 million received by TiVo on May 2, 2011 with the remaining $200.0 million to be distributed in six equal annual installments of $33.3 million between 2012 and 2017. | |||||
The total consideration of $500.0 million was allocated on a relative fair value basis as $175.7 million to the past infringement and litigation settlement element, $2.9 million to interest income related to past infringement and $321.4 million to the future license royalties element. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the fiscal year ended January 31, 2012. The amount related to interest income was recorded under “Interest income” fiscal year ended January 31, 2012. $321.4 millionof future license royalties will be recorded as technology revenue on a straight-line amortization basis over the remaining life of the patent through July 30, 2018. | |||||
AT&T Inc. | |||||
On January 3, 2012, TiVo Inc. entered into a Settlement and Patent License Agreement with AT&T Inc. (AT&T). Under the terms of the Agreement, AT&T has agreed to pay TiVo a minimum amount of $215.0 million plus incremental monthly fees per DVR subscriber if AT&T's subscriber base exceeds certain pre-determined levels. The initial payment of $51.0 million was paid to TiVo on January 4, 2012 with the remaining $164.0 million due to TiVo 30 days after the end of each calendar quarter in the amount of $5.0 million for the first four calendar quarters and approximately $6.5 million in subsequent calendar quarters through the calendar quarter ending June 30, 2018. Any incremental additional per subscriber fees are due to TiVo on the same schedule. The Agreement expires on July 30, 2018. | |||||
The total consideration of $215.0 million was allocated on a relative fair value basis as $54.4 million to the past infringement and litigation settlement element, $254,000 to interest income related to past infringement and $160.3 million to the future base license royalties element. The future base license royalties element does not include any incremental monthly fees per DVR subscriber payable if the AT&T subscriber base exceeds certain pre-determined levels. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the fiscal year ended January 31, 2012. The amount related to interest income was recorded under “Interest income” in the fiscal year ended January 31, 2012. $160.3 million of future license royalties will be recorded as Technology revenues on a straight-line amortization basis over the term of the agreement through July 30, 2018. Any incremental monthly fees per DVR subscriber payable if the AT&T's subscriber base exceeds certain pre-determined levels will be recognized as Technology revenues when reported to TiVo by AT&T. | |||||
As a result of the settlement and patent cross-licensing agreement, TiVo expensed an estimate of $14.5 million in contingent legal fees recorded under general and administration expenses in its statement of operations in the fiscal year ended January 31, 2012. TiVo paid $4.3 million in contingent legal fees during the fiscal year ended January 31, 2012. The remaining estimate of $10.2 million was paid during the fiscal year ended January 31, 2013 upon the favorable resolution of the Microsoft and ITC legal matters. | |||||
Verizon Communications, Inc. | |||||
On September 21, 2012, TiVo Inc. entered into a Settlement and Patent License Agreement with Verizon Communications, Inc. (Verizon). Under the terms of the Agreement, Verizon has agreed to pay TiVo a minimum amount of $250.4 million plus incremental monthly fees per DVR subscriber if Verizon's subscriber base exceeds certain pre-determined levels which increase annually. The initial payment of $100.0 million was paid to TiVo on September 28, 2012 with the remaining $150.4 million due to TiVo 30 days after the end of each calendar quarter in the amount of $6.0 million through the calendar quarter ending September 30, 2018. Any incremental additional per subscriber fees are due to TiVo on the same schedule. The Agreement expires on July 31, 2018. | |||||
TiVo and Verzion agreed to dismiss all pending litigation between the companies with prejudice. TiVo granted Verizon a limited license under its advanced television patents, including the patents that TiVo had asserted against Verizon (U.S. Patent Nos. 6,233,389, 7,493,015, and 7,529,465), to make, have made, use, sell, offer to sell, and import advanced television technology in connection with Verizon multichannel video programming services subject to certain limitations and exclusions. Verizon granted TiVo a limited license under its advanced television patents, including the patents that Verizon had asserted against TiVo (U.S. Patent Nos. 5,410,344, 5,635,979, 5,973,684, 6,367,078, 7,561,214 and 6,381,748), to make, have made, use, sell, offer to sell and import advanced television technology in connection with TiVo products and services, including products and services provided to other multichannel video programming service providers, subject to certain limitations and exclusions. TiVo may terminate the rights and licenses granted to Verizon pursuant to the Agreement under certain circumstances, including but not limited to if Verizon has failed to make timely payment. | |||||
The agreement includes multiple elements consisting of: (i) an exchange of licenses to intellectual property, including covenants not to assert claims of patent infringement for the period from September 21, 2012 until July 31, 2018, (ii) an interest income component related to the past infringement, and (iii) the settlement of all outstanding litigation and claims between TiVo and Verizon. The proceeds of the agreement were allocated among the principal elements of the transaction based on relative fair values of each element. | |||||
TiVo estimated the fair value of each element using an income approach. The significant inputs and assumptions used in this valuation included actual past and projected future subscription base, estimated DVR penetration rates, estimated market-based royalty rates, estimated risk-adjusted discount rates, and useful lives of the technology, among others. The development of a number of these inputs and assumptions in the model requires a significant amount of management judgment and is based upon a number of factors. Changes in these assumptions may have a substantial impact on the fair value assigned to each element. These inputs and assumptions represent management's best estimates at the time of the transaction. The total consideration of $250.4 million was allocated on a relative fair value basis as $78.4 million to the past infringement and litigation settlement element, $568,000 to interest income related to past infringement and $171.4 million to the future base license royalties element. The future base license royalties element does not include any incremental monthly fees per DVR subscriber payable if the Verizon subscriber base exceeds certain pre-determined levels. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the quarter ended October 31, 2012. The amount related to interest income was recorded under “Interest income” in the quarter ended October 31, 2012. $171.4 million of future license royalties will be recorded as technology revenues over the term of the agreement through July 31, 2018 using a pattern reflective of an increasing number of subscribers covered by the minimum fixed license payments. Any incremental monthly fees per DVR subscriber payable if the Verizon's subscriber base exceeds certain pre-determined levels will be recognized as Technology revenues when reported to TiVo by Verizon. In addition to the $250.4 million in compensation, TiVo will also receive incremental monthly fees at a higher rate than the rate implied by the guaranteed fees per Verizon DVR subscriber if the growth of Verizon's DVR subscriber base exceeds certain pre-determined levels. Any incremental additional per subscriber fees are due to TiVo 30 days after the end of each calendar quarter in which they are earned. | |||||
Motorola/Cisco | |||||
Effective July 2, 2013, TiVo entered into a settlement and patent license agreement with ARRIS Group, Inc. (Arris) (owner of General Instrument Corporation, formerly a subsidiary of Motorola Mobility, Inc.), Cisco Systems, Inc. (Cisco), and Google Inc. (Google) (owner of Motorola Mobility, LLC formerly Motorola Mobility, Inc.) (with the settlement with Arris, Google, and Cisco referred to as the Motorola/Cisco settlement). Pursuant to the terms of the Motorola/Cisco settlement the parties agreed to settle and dismiss all outstanding litigation between them, including related litigation involving Time Warner Cable (as described in TiVo's periodic reports filed with the Securities and Exchange Commission ), provide licenses to certain patents between the parties, and release patent infringement claims between the parties with respect to all outstanding litigation in exchange for a payment of $490.0 million to TiVo by Google and Cisco in connection with the Motorla/Cisco settlement. | |||||
The licenses granted by TiVo to Cisco and Google/Motorola Mobility under U.S. Patent Nos. 6,233,389, 7,529,465, 6,792,195, and 7,493,015 and certain related patents are perpetual. The other licenses granted by TiVo to Google/Motorola Mobility and from Google/Motorola Mobility to TiVo will expire on July 31, 2018. The other licenses granted by TiVo to Cisco and from Cisco to TiVo will expire on July 2, 2023, when the agreement expires. | |||||
The agreement includes multiple elements consisting of: (i) an exchange of licenses to certain intellectual property, (ii) an interest income component related to the past infringement, and (iii) the settlement of all outstanding litigation and claims between TiVo and Arris, Google/Motorola Mobility and Cisco. The proceeds of the agreement were allocated amongst the principal elements of the transaction based on relative fair values of each element. | |||||
TiVo estimated the fair value of future licensing revenue from July 2, 2013 until July 31, 2018 using an income approach and future licensing revenue from August 1, 2018 to July 2, 2023 using a market approach. The significant inputs and assumptions used in the valuations included actual past and projected future estimated infringing DVR shipments, estimated life of the DVR, estimated market-based royalty rates, and estimated risk-adjusted discount rates, among others. The development of a number of these inputs and assumptions in the model requires a significant amount of management judgment and is based upon a number of factors. Changes in these assumptions may have a substantial impact on the fair value assigned to each element. These inputs and assumptions represent management's best estimates at the time of the transaction. | |||||
The total consideration of $490.0 million was allocated on a relative fair value basis as $381.1 million to the future licensing revenue element, $752,000to interest income related to past infringement and $108.1 million of the past infringement and litigation settlement element. The amount related to past infringement and settlement was recorded under “Litigation proceeds” in the fiscal year ended January 31, 2014. The amount related to interest income was recorded under “Interest income” in the fiscal year ended January 31, 2014. The $381.1 million of license royalties has been or will be recorded as technology revenues over the term of the agreement through July 2023. | |||||
Technology revenues related to the above agreements were $141.6 million, $77.3 million and $35.3 million for the fiscal years ended January 31, 2014, 2013, and 2012, respectively. | |||||
Revenues and cash from the contractual minimums under our licensing agreements with DISH, AT&T, Verizon, and Motorola/Cisco through January 31, 2014 have been: | |||||
Licensing Related Technology Revenues | Cash Received | ||||
Fiscal Year Ending January 31, | (in thousands) | ||||
2012 | $35,275 | $117,679 | |||
2013 | 76,841 | 86,356 | |||
2014 | 136,532 | 464,725 | |||
Total | $248,648 | $668,760 | |||
Revenues and cash from the contractual minimums under all our licensing agreements with DISH, AT&T, Verizon, and Motorola/Cisco is expected to be recognized (revenues) and received (cash) for fiscal year 2015 and on an annual basis for the fiscal years thereafter as follows: | |||||
Licensing Related Technology Revenues | Minimum Cash Due | ||||
Fiscal Year Ending January 31, | (in thousands) | ||||
2015 | 169,641 | 83,579 | |||
2016 | 171,563 | 83,579 | |||
2017 | 173,129 | 83,579 | |||
2018 | 174,411 | 83,579 | |||
2019 | 88,629 | 31,139 | |||
2020 - 2024 | 8,193 | — | |||
Total | $785,566 | $365,455 | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Allowance for Doubtful Accounts | ' | ||||||||||||
Beginning Balance | Charged to Operating | Deductions/Additions | Ending Balance | ||||||||||
Expenses | (*) | ||||||||||||
(in thousands) | |||||||||||||
Allowance for doubtful accounts: | |||||||||||||
Fiscal year ended: | |||||||||||||
January 31, 2014 | $ | 362 | $ | 253 | $ | (186 | ) | $ | 429 | ||||
January 31, 2013 | $ | 370 | $ | 219 | $ | (227 | ) | $ | 362 | ||||
January 31, 2012 | $ | 275 | $ | 476 | $ | (381 | ) | $ | 370 | ||||
(*) | Deductions/additions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. | ||||||||||||
Schedule of Property Plant and Equipment Useful Life | ' | ||||||||||||
Depreciation is computed using the straight-line method over estimated useful lives as follows: | |||||||||||||
Furniture and fixture | 3-5 years | ||||||||||||
Computer and office equipment | 3-5 years | ||||||||||||
Lab equipment | 3 years | ||||||||||||
Leasehold improvements | The shorter of 7 years or the term of the lease | ||||||||||||
Capitalized software for internal use | 1-5 years | ||||||||||||
Schedule of Revenue by Major Customers | ' | ||||||||||||
The Company's significant revenue concentrations as of January 31, 2014, 2013, and 2012 were as follows: | |||||||||||||
Fiscal Year Ended January 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
DISH | 11 | % | 15 | % | 14 | % | |||||||
Google and Cisco in connection with Motorola/Cisco settlement | 11 | % | * | * | |||||||||
* Less than 10%. | |||||||||||||
Accounts Receivable Concentration Risk | ' | ||||||||||||
The Company’s accounts receivable concentrations as of January 31, 2014 and 2013 were as follows: | |||||||||||||
As of January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
AT&T | 23 | % | 24 | % | |||||||||
Suddenlink | 13 | % | 23 | % | |||||||||
Com Hem | 12 | % | * | ||||||||||
* Less than 10%. |
CASH_AND_INVESTMENTS_Tables
CASH AND INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Investments and Cash [Abstract] | ' | ||||||||||||
Cash, Cash Equivalents, Short term, and Long term Investments | ' | ||||||||||||
Cash, cash equivalents, short-term investments, and long-term investments consisted of the following: | |||||||||||||
As of January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 16,718 | $ | 20,005 | |||||||||
Cash equivalents: | |||||||||||||
Commercial paper | 72,268 | 99,040 | |||||||||||
Certificate of deposit | — | 2,024 | |||||||||||
Money market funds | 164,727 | 36,035 | |||||||||||
Total cash and cash equivalents | 253,713 | 157,104 | |||||||||||
Marketable debt securities: | |||||||||||||
Certificates of deposit | 11,424 | 27,961 | |||||||||||
Commercial paper | 176,205 | 128,023 | |||||||||||
Corporate debt securities | 492,765 | 193,932 | |||||||||||
U.S. agency securities | — | 37,109 | |||||||||||
U.S. Treasury securities | 20,024 | 40,286 | |||||||||||
Foreign government securities | — | 9,555 | |||||||||||
Variable-rate demand notes | 350 | 410 | |||||||||||
Asset and mortgage-backed securities | 43,111 | 16,816 | |||||||||||
Municipal bonds | 4,880 | 16,044 | |||||||||||
Current marketable debt securities | 748,759 | 470,136 | |||||||||||
Other investment securities: | |||||||||||||
Other investment securities - cost method | 250 | 250 | |||||||||||
Total other investment securities | 250 | 250 | |||||||||||
Total cash, cash equivalents, marketable securities and other investment securities | $ | 1,002,722 | $ | 627,490 | |||||||||
Available-for-sale Investments Classified by Maturity Date | ' | ||||||||||||
The following table summarizes the estimated fair value of the Company’s debt investments, designated as available-for-sale classified by the contractual maturity date of the security: | |||||||||||||
As of January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Due within 1 year | $ | 662,299 | $ | 365,386 | |||||||||
Due within 1 year through 5 years | 86,110 | 104,340 | |||||||||||
Due within 5 years through 10 years | — | — | |||||||||||
Due after 10 years | 350 | 410 | |||||||||||
Total | $ | 748,759 | $ | 470,136 | |||||||||
Unrealized Gain (Loss) on Investments | ' | ||||||||||||
The following table summarizes unrealized gains and losses related to the Company’s investments in marketable securities designated as available-for-sale: | |||||||||||||
As of January 31, 2014 | |||||||||||||
Adjusted | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||
Gains | Losses | ||||||||||||
(in thousands) | |||||||||||||
Certificates of deposit | $ | 11,424 | $ | — | $ | — | $ | 11,424 | |||||
Commercial paper | 176,120 | 85 | — | 176,205 | |||||||||
Corporate debt securities | 492,295 | 532 | (62 | ) | 492,765 | ||||||||
U.S .Treasury securities | 20,023 | 1 | — | 20,024 | |||||||||
Variable-rate demand notes | 350 | — | — | 350 | |||||||||
Asset and mortgage-backed securities | 43,105 | 10 | (4 | ) | 43,111 | ||||||||
Municipal Bonds | 4,875 | 5 | — | 4,880 | |||||||||
Total | $ | 748,192 | $ | 633 | $ | (66 | ) | $ | 748,759 | ||||
As of January 31, 2013 | |||||||||||||
Adjusted | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||
Gains | Losses | ||||||||||||
(in thousands) | |||||||||||||
Certificates of deposit | $ | 27,961 | $ | — | $ | — | $ | 27,961 | |||||
Commercial paper | 127,967 | 65 | (9 | ) | 128,023 | ||||||||
Corporate debt securities | 193,834 | 147 | (49 | ) | 193,932 | ||||||||
U.S. agency securities | 37,081 | 28 | — | 37,109 | |||||||||
U.S.Treasury securities | 40,266 | 20 | — | 40,286 | |||||||||
Foreign government securities | 9,573 | — | (18 | ) | 9,555 | ||||||||
Variable-rate demand notes | 410 | — | — | 410 | |||||||||
Asset-backed securities | 16,804 | 12 | — | 16,816 | |||||||||
Municipal Bonds | 16,025 | 19 | — | 16,044 | |||||||||
Total | $ | 469,921 | $ | 291 | $ | (76 | ) | $ | 470,136 | ||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||
The fair value of those financial assets and liabilities was determined using the following levels of inputs as of January 31, 2014 and January 31, 2013: | |||||||||||||
As of January 31, 2014 | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(in thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Commercial paper | $ | 72,268 | $ | — | $ | 72,268 | $ | — | |||||
Money market funds | 164,727 | 164,727 | — | — | |||||||||
Short-term investments: | |||||||||||||
Certificates of deposit | 11,424 | 11,424 | — | — | |||||||||
Commercial paper | 176,205 | — | 176,205 | — | |||||||||
Corporate debt securities | 492,765 | — | 492,765 | — | |||||||||
U.S. Treasury securities | 20,024 | 20,024 | — | — | |||||||||
Variable-rate demand notes | 350 | — | 350 | — | |||||||||
Asset and mortgage-backed securities | 43,111 | — | 43,111 | — | |||||||||
Municipal bonds | 4,880 | — | 4,880 | — | |||||||||
Total | $ | 985,754 | $ | 196,175 | $ | 789,579 | $ | — | |||||
As of January 31, 2013 | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(in thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Commercial paper | $ | 99,040 | $ | — | $ | 99,040 | $ | — | |||||
Certificate of deposit | 2,024 | 2,024 | — | — | |||||||||
Money market funds | 36,035 | 36,035 | — | — | |||||||||
Short-term investments: | |||||||||||||
Certificates of deposit | 27,961 | 27,961 | — | — | |||||||||
Commercial paper | 128,023 | — | 128,023 | — | |||||||||
Corporate debt securities | 193,932 | — | 193,932 | — | |||||||||
U.S. agency securities | 37,109 | — | 37,109 | — | |||||||||
U.S. Treasury securities | 40,286 | 40,286 | — | — | |||||||||
Foreign government securities | 9,555 | — | 9,555 | — | |||||||||
Variable-rate demand notes | 410 | — | 410 | — | |||||||||
Asset-backed securities | 16,816 | — | 16,816 | — | |||||||||
Municipal bonds | 16,044 | — | 16,044 | — | |||||||||
Total | $ | 607,235 | $ | 106,306 | $ | 500,929 | $ | — | |||||
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||
Jan. 31, 2014 | |||||
Property, Plant and Equipment [Abstract] | ' | ||||
Schedule of Property, Plant and Equipment | ' | ||||
Property and equipment, net consists of the following: | |||||
As of January 31, | |||||
2014 | 2013 | ||||
(In thousands) | |||||
Furniture and fixtures | 4,455 | 4,428 | |||
Computer and office equipment | 20,662 | 21,639 | |||
Lab equipment | 4,652 | 3,747 | |||
Leasehold improvements | 9,792 | 9,697 | |||
Capitalized internal use software | 23,945 | 21,801 | |||
Total property and equipment | 63,506 | 61,312 | |||
Less: accumulated depreciation and amortization | (52,819 | ) | (51,012 | ) | |
Property and equipment, net | 10,687 | 10,300 | |||
DEVELOPED_TECHNOLOGY_AND_INTAN1
DEVELOPED TECHNOLOGY AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | ||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of Developed Technology and Intangible Assets, Net | ' | ||||||||||||||||||
Developed technology and intangible assets, net consists of the following: | |||||||||||||||||||
As of January 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||
Amortization | Amortization | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Developed technology | $ | 10,259 | $ | (4,716 | ) | $ | 5,543 | $ | 15,161 | $ | (4,441 | ) | $ | 10,720 | |||||
Intellectual property rights | 19,118 | (18,260 | ) | 858 | 19,118 | (16,616 | ) | 2,502 | |||||||||||
Customer relationships and trade names | 1,010 | (83 | ) | 927 | 3,130 | (266 | ) | 2,864 | |||||||||||
Developed technology and intangible assets | $ | 30,387 | $ | (23,059 | ) | $ | 7,328 | $ | 37,409 | $ | (21,323 | ) | $ | 16,086 | |||||
Schedule of Expected Amortization Expense | ' | ||||||||||||||||||
As of January 31, 2014, the estimated future annual amortization expense (not including the Company's acquisition of Digitalsmiths on February 14, 2014) is set forth in the table below: | |||||||||||||||||||
Fiscal Year Ending January 31, | Estimated Annual | ||||||||||||||||||
Amortization | |||||||||||||||||||
Expense | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
2015 | 2,196 | ||||||||||||||||||
2016 | 2,018 | ||||||||||||||||||
2017 | 1,716 | ||||||||||||||||||
2018 | 1,155 | ||||||||||||||||||
2019 | 162 | ||||||||||||||||||
Thereafter | 81 | ||||||||||||||||||
$ | 7,328 | ||||||||||||||||||
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | ||||
Jan. 31, 2014 | |||||
Inventory Disclosure [Abstract] | ' | ||||
Schedule of Inventory | ' | ||||
Inventory was as follows: | |||||
As of January 31, | |||||
2014 | 2013 | ||||
(in thousands) | |||||
Raw Materials | $1,858 | $3,423 | |||
Finished Goods | 20,458 | 11,077 | |||
Total Inventory | $22,316 | $14,500 | |||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | ||||||
Jan. 31, 2014 | |||||||
Accrued Liabilities [Abstract] | ' | ||||||
Schedule of Accrued Liabilities | ' | ||||||
Accrued liabilities consist of the following: | |||||||
As of January 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
Compensation and vacation | $ | 24,755 | $ | 23,158 | |||
Marketing and promotions | 7,793 | 4,987 | |||||
Legal services | 6,400 | 10,477 | |||||
Redeemable gift certificates for subscriptions | 2,404 | 2,428 | |||||
Interest payable | 2,588 | 2,588 | |||||
Other | 6,264 | 6,405 | |||||
Total accrued liabilities | $ | 50,204 | $ | 50,043 | |||
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |
Jan. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |
Future minimum operating lease payments as of January 31, 2014, are as follows: | ||
Fiscal Year Ending January 31, | Lease Payments | |
(In thousands) | ||
2015 | $3,189 | |
2016 | $2,935 | |
2017 | $2,716 | |
Total | $8,840 |
EQUITY_INCENTIVE_PLANS_Tables
EQUITY INCENTIVE PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||
A summary of the stock options activity and related information for the fiscal years ended January 31, 2014, 2013, and 2012 is as follows: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual Term | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Outstanding at January 31, 2011 | 12,668 | $ | 7.19 | 5.54 | $ | 32,453 | |||||||||||
Grants | 551 | 9.66 | |||||||||||||||
Exercises | (1,735 | ) | 6.51 | ||||||||||||||
Forfeitures or expirations | (335 | ) | 8.34 | ||||||||||||||
Outstanding at January 31, 2012 | 11,149 | $ | 7.38 | 4.72 | $ | 34,022 | |||||||||||
Grants | 303 | 9.83 | |||||||||||||||
Exercises | (2,259 | ) | 7.2 | ||||||||||||||
Forfeitures or expirations | (536 | ) | 8.84 | ||||||||||||||
Outstanding at January 31, 2013 | 8,657 | $ | 7.42 | 3.84 | $ | 51,431 | |||||||||||
Grants | 235 | 12.12 | |||||||||||||||
Exercises | (1,014 | ) | 7.76 | ||||||||||||||
Forfeitures or expirations | (214 | ) | 9.89 | ||||||||||||||
Outstanding at January 31, 2014 | 7,664 | $ | 7.45 | 2.94 | $ | 38,064 | |||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | ' | ||||||||||||||||
The following table summarizes information about options outstanding at January 31, 2014: | |||||||||||||||||
Options Outstanding | Exercisable Options | ||||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted Average | Weighted Average | Number of Shares | Weighted Average | ||||||||||||
Remaining | Exercise Price | Exercise Prices | |||||||||||||||
Contractual Life | |||||||||||||||||
(in thousand) | (in thousand) | ||||||||||||||||
$ 3.78 - $ 3.78 | 93 | 1.01 | $ | 3.78 | 93 | $ | 3.78 | ||||||||||
$ 4.44 - $ 6.17 | 68 | 1.56 | $ | 5.14 | 68 | $ | 5.14 | ||||||||||
$ 6.18 - $ 6.18 | 1,508 | 3.08 | $ | 6.18 | 1,508 | $ | 6.18 | ||||||||||
$ 6.24 - $ 6.50 | 59 | 2.63 | $ | 6.42 | 59 | $ | 6.42 | ||||||||||
$ 6.51 - $ 6.51 | 385 | 2.46 | $ | 6.51 | 385 | $ | 6.51 | ||||||||||
$ 6.52 - $ 6.52 | 1,826 | 1.41 | $ | 6.52 | 1,826 | $ | 6.52 | ||||||||||
$ 6.71 - $ 12.38 | 3,575 | 3.67 | $ | 8.46 | 2,745 | $ | 8.32 | ||||||||||
$ 12.47 - $ 18.17 | 150 | 5.46 | $ | 13.99 | 41 | $ | 16.76 | ||||||||||
Total | 7,664 | 2.94 | $ | 7.45 | 6,725 | $ | 7.19 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | ' | ||||||||||||||||
Information regarding stock options outstanding at January 31, 2014 is summarized as follows: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Shares outstanding | 7,664 | $ | 7.45 | 2.94 | $ | 38,064 | |||||||||||
Shares vested and expected to vest | 7,585 | $ | 7.42 | 2.91 | $ | 37,903 | |||||||||||
Shares exercisable | 6,725 | $ | 7.19 | 2.7 | $ | 35,161 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||||||
The following table summarizes the activities for the Company’s unvested RSAs and RSUs for the three years ended January 31, 2014, 2013, and 2012: | |||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||
Shares | Grant Date Fair | ||||||||||||||||
Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Unvested stock at January 31, 2011 | 4,650 | $ | 10.03 | ||||||||||||||
Granted | 2,813 | $ | 10.01 | ||||||||||||||
Vested | (1,374 | ) | $ | 9.8 | |||||||||||||
Forfeited | (543 | ) | $ | 10.57 | |||||||||||||
Unvested stock at January 31, 2012 | 5,546 | $ | 10.02 | ||||||||||||||
Granted | 2,876 | $ | 11.53 | ||||||||||||||
Vested | (2,427 | ) | $ | 11.32 | |||||||||||||
Forfeited | (518 | ) | $ | 11.1 | |||||||||||||
Unvested stock at January 31, 2013 | 5,477 | $ | 10.85 | ||||||||||||||
Granted | 2,979 | $ | 12.27 | ||||||||||||||
Vested | (3,197 | ) | $ | 12.08 | |||||||||||||
Forfeited | (472 | ) | $ | 11.47 | |||||||||||||
Unvested stock at January 31, 2014 | 4,787 | $ | 11.88 | ||||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | ' | ||||||||||||
Total stock-based compensation for the twelve months ended January 31, 2014, 2013, and 2012, respectively is as follows: | |||||||||||||
Fiscal Year Ended January 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Cost of service revenues | $ | 2,032 | $ | 1,241 | $ | 830 | |||||||
Cost of technology revenues | 1,626 | 1,754 | 1,666 | ||||||||||
Cost of hardware revenues | 304 | 269 | 207 | ||||||||||
Research and development | 13,717 | 12,544 | 10,768 | ||||||||||
Sales and marketing | 5,631 | 4,105 | 3,962 | ||||||||||
General and administrative | 14,455 | 14,542 | 11,854 | ||||||||||
Change in deferred cost of technology revenues | 113 | 302 | 559 | ||||||||||
Stock-based compensation before income taxes | $ | 37,878 | $ | 34,757 | $ | 29,846 | |||||||
Income tax benefit | $ | (9,789 | ) | $ | — | $ | — | ||||||
Total stock-based compensation | $ | 28,089 | $ | 34,757 | $ | 29,846 | |||||||
Schedule of Share-based Payment Award Valuation Assumptions | ' | ||||||||||||
The weighted average assumptions used for the twelve months ended January 31, 2014, 2013, and 2012, respectively, and the resulting estimates of weighted-average fair value per share of options and ESPP shares granted during those periods are as follows: | |||||||||||||
ESPP | Stock Options | ||||||||||||
Fiscal Year Ended January 31, | |||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
Expected life (in years) | 0.8 | 0.9 | 0.78 | 4.39 | 4.38 | 4.48 | |||||||
Volatility | 57 | % | 53 | % | 68 | % | 51 | % | 58 | % | 65 | % | |
Average risk free interest rate | 0.64 | % | 0.2 | % | 0.28 | % | 1.07 | % | 0.75 | % | 1.61 | % | |
Dividend Yield | — | % | — | % | — | % | — | % | — | % | — | % | |
Weighted-average fair value during the period | $3.21 | $4.22 | $3.29 | $5.12 | $4.56 | $5.06 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||||
The income tax benefit in fiscal year 2014 is primarily due to release of valuation allowance. 2013 and 2012 income tax expense was primarily related to state taxes and withholding taxes in foreign jurisdictions as noted in the table below: | ||||||||||
Fiscal Year Ended January 31, | ||||||||||
Current: | 2014 | 2013 | 2012 | |||||||
Federal | $ | (38 | ) | $ | 2 | $ | — | |||
State | 3,240 | 778 | 657 | |||||||
Foreign | — | 256 | 150 | |||||||
Total | $ | 3,202 | $ | 1,036 | $ | 807 | ||||
Deferred: | ||||||||||
Federal | $ | (167,382 | ) | $ | — | $ | — | |||
State | (3,731 | ) | — | — | ||||||
Foreign | — | — | — | |||||||
Total | $ | (171,113 | ) | $ | — | $ | — | |||
Provision (benefit) for income taxes | $ | (167,911 | ) | $ | 1,036 | $ | 807 | |||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||||
The income tax (benefit) expense differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pretax income (loss) as a result of the following: | ||||||||||
Fiscal Year Ended January 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Federal tax at statutory rate | $ | 36,367 | $ | (1,480 | ) | $ | 36,039 | |||
State taxes | 1,628 | 778 | 657 | |||||||
Stock Based Compensation | 559 | (318 | ) | 360 | ||||||
Federal Research Tax Credit | 333 | — | — | |||||||
Non-deductible compensation expense | 3,209 | 3,442 | 2,477 | |||||||
Non-deductible expenses and other | 1,163 | 90 | 35 | |||||||
Foreign withholding tax | — | 256 | 150 | |||||||
Change in valuation allowance | (211,170 | ) | (1,732 | ) | (38,911 | ) | ||||
Total tax expense | $ | (167,911 | ) | $ | 1,036 | $ | 807 | |||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||||
The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets are presented below: | ||||||||||
As of January 31, | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | (in thousands) | |||||||||
Net operating loss carryforwards | $ | 78,294 | $ | 108,749 | ||||||
Research and alternative minimum tax credits | 34,022 | 33,628 | ||||||||
Deferred revenue and rent | 48,885 | 43,053 | ||||||||
Capitalized research and development | 4,175 | 7,367 | ||||||||
Stock based compensation | 14,180 | 14,504 | ||||||||
Other | 17,001 | 16,339 | ||||||||
Total deferred tax assets | 196,557 | 223,640 | ||||||||
Deferred tax liabilities: | ||||||||||
TRA intangibles | (1,025 | ) | (3,174 | ) | ||||||
Total deferred tax liabilities | (1,025 | ) | (3,174 | ) | ||||||
Valuation allowance | (24,419 | ) | (220,466 | ) | ||||||
Net deferred tax assets (liabilities) | $ | 171,113 | $ | — | ||||||
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | ' | |||||||||
The aggregate changes in the balance of gross unrecognized tax benefits were as follows: | ||||||||||
Fiscal Year Ended January 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Beginning Balance | $ | 14,812 | $ | 12,075 | 8,745 | |||||
Additions based on tax positions related to current year | 1,583 | 2,579 | 3,253 | |||||||
Additions for tax positions in prior years | 23 | 158 | 77 | |||||||
Lapse of statute of limitations | (154 | ) | — | — | ||||||
Reduction for tax positions of prior years | $ | (1,101 | ) | $ | — | — | ||||
Ending Balance | $ | 15,163 | $ | 14,812 | $ | 12,075 | ||||
Schedule of Open Tax Years [Table Text Block] | ' | |||||||||
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The open tax years for the major jurisdictions are as follows: | ||||||||||
Federal | 2010 – 2014 | |||||||||
California | 2009 – 2014 |
NET_INCOME_LOSS_PER_COMMON_SHA1
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||
The following table sets forth the computation of basic and diluted earnings per common share: | ||||||||||
Fiscal Year Ended January 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(income/(loss) in thousands) | ||||||||||
Numerator: | ||||||||||
Net income (loss) | $ | 271,816 | $ | (5,264 | ) | $ | 102,161 | |||
Interest on convertible notes | 5,009 | — | 6,979 | |||||||
Net Income for purpose of computing net income (loss) per diluted share | 276,825 | (5,264 | ) | 109,140 | ||||||
Denominator: | ||||||||||
Weighted average shares outstanding, excluding unvested restricted stock | 118,445,466 | 119,411,727 | 116,592,943 | |||||||
Weighted average effect of dilutive securities: | ||||||||||
Stock options and restricted stock | 4,893,804 | — | 4,200,288 | |||||||
Convertible senior notes | 15,462,193 | — | 15,462,193 | |||||||
Denominator for diluted net income (loss) per common share | 138,801,463 | 119,411,727 | 136,255,424 | |||||||
Basic net income (loss) per common share | $ | 2.29 | $ | (0.04 | ) | $ | 0.88 | |||
Diluted net income (loss) per common share | $ | 1.99 | $ | (0.04 | ) | $ | 0.8 | |||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||||
The weighted average number of shares outstanding used in the computation of basic and diluted net loss per share in the fiscal years ended January 31, 2014, 2013, and 2012 do not include the effect of the following potentially outstanding common stock because the effect would have been anti-dilutive: | ||||||||||
As of January 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Unvested restricted stock | 3,068 | 5,956,316 | 1,007,735 | |||||||
Options to purchase common stock | 592,761 | 10,358,316 | 4,286,876 | |||||||
Potential shares to be issued from ESPP | — | 87,999 | — | |||||||
Convertible senior notes | — | 15,462,193 | — | |||||||
Total | 595,829 | 31,864,824 | 5,294,611 | |||||||
SETTLEMENTS_Tables
SETTLEMENTS (Tables) | 12 Months Ended | ||||
Jan. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Contractual Minimums Under Licensing Agreement, Revenue and Cash Received and Due | ' | ||||
Revenues and cash from the contractual minimums under our licensing agreements with DISH, AT&T, Verizon, and Motorola/Cisco through January 31, 2014 have been: | |||||
Licensing Related Technology Revenues | Cash Received | ||||
Fiscal Year Ending January 31, | (in thousands) | ||||
2012 | $35,275 | $117,679 | |||
2013 | 76,841 | 86,356 | |||
2014 | 136,532 | 464,725 | |||
Total | $248,648 | $668,760 | |||
Revenues and cash from the contractual minimums under all our licensing agreements with DISH, AT&T, Verizon, and Motorola/Cisco is expected to be recognized (revenues) and received (cash) for fiscal year 2015 and on an annual basis for the fiscal years thereafter as follows: | |||||
Licensing Related Technology Revenues | Minimum Cash Due | ||||
Fiscal Year Ending January 31, | (in thousands) | ||||
2015 | 169,641 | 83,579 | |||
2016 | 171,563 | 83,579 | |||
2017 | 173,129 | 83,579 | |||
2018 | 174,411 | 83,579 | |||
2019 | 88,629 | 31,139 | |||
2020 - 2024 | 8,193 | — | |||
Total | $785,566 | $365,455 | |||
SELECTED_QUARTERLY_FINANCIAL_S1
SELECTED QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||||||
The following table presents certain unaudited statements of operations data for the Company's eight most recent quarters ended January 31, 2014. In management’s opinion, this unaudited information has been prepared on the same basis as the audited annual financial statements and includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair representation of the unaudited information for the quarters presented. This information should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto, included elsewhere in this annual report. The results of operations for any quarter are not necessarily indicative of results that may be expected for any future period. | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Jan 31, | Oct 31, | Jul 31, | Apr 30, | Jan 31, | Oct 31, | Jul 31, | Apr 30, | ||||||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | ||||||||||||||||||
(unaudited, in thousands except per share and share amounts) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Service revenues | 36,317 | 33,526 | 34,930 | 34,062 | 35,574 | 35,228 | 32,302 | 30,621 | |||||||||||||||||
Technology revenues | 47,716 | 48,133 | 42,056 | 27,725 | 30,153 | 25,727 | 21,825 | 23,887 | |||||||||||||||||
Hardware revenues | 22,301 | 35,597 | 23,104 | 20,786 | 23,129 | 21,072 | 11,129 | 13,261 | |||||||||||||||||
Net revenues | 106,334 | 117,256 | 100,090 | 82,573 | 88,856 | 82,027 | 65,256 | 67,769 | |||||||||||||||||
Cost of revenues | |||||||||||||||||||||||||
Cost of service revenues | 15,596 | 11,233 | 11,408 | 10,805 | 11,619 | 11,238 | 8,871 | 8,379 | |||||||||||||||||
Cost of technology revenues | 4,483 | 5,612 | 11,867 | 3,711 | 7,318 | 5,779 | 3,792 | 6,286 | |||||||||||||||||
Cost of hardware revenues | 23,163 | 33,017 | 21,957 | 18,496 | 21,847 | 23,434 | 14,431 | 18,471 | |||||||||||||||||
Total cost of revenues | 43,242 | 49,862 | 45,232 | 33,012 | 40,784 | 40,451 | 27,094 | 33,136 | |||||||||||||||||
Gross margin | 63,092 | 67,394 | 54,858 | 49,561 | 48,072 | 41,576 | 38,162 | 34,633 | |||||||||||||||||
Operating expenses | |||||||||||||||||||||||||
Research and development | 26,908 | 27,242 | 26,305 | 26,462 | 26,614 | 28,277 | 29,652 | 30,560 | |||||||||||||||||
Sales and marketing | 11,238 | 10,189 | 9,069 | 8,507 | 8,928 | 7,958 | 7,243 | 6,224 | |||||||||||||||||
Sales and marketing, subscription acquisition costs | 6,038 | 2,628 | 1,996 | 1,859 | 3,471 | 1,560 | 2,372 | 1,257 | |||||||||||||||||
General and administrative | 16,461 | 15,839 | 23,225 | 21,786 | 23,708 | 21,772 | 25,429 | 16,166 | |||||||||||||||||
Litigation Proceeds | — | — | (108,102 | ) | — | — | (78,441 | ) | — | — | |||||||||||||||
Income (loss) from operations | 2,447 | 11,496 | 102,365 | (9,053 | ) | (14,649 | ) | 60,450 | (26,534 | ) | (19,574 | ) | |||||||||||||
Interest income | 1,272 | 1,133 | 1,499 | 823 | 808 | 1,383 | 852 | 908 | |||||||||||||||||
Interest expense and other | (1,973 | ) | (2,165 | ) | (1,965 | ) | (1,974 | ) | (1,966 | ) | (1,958 | ) | (1,966 | ) | (1,982 | ) | |||||||||
Income (loss) before income taxes | 1,746 | 10,464 | 101,899 | (10,204 | ) | (15,807 | ) | 59,875 | (27,648 | ) | (20,648 | ) | |||||||||||||
Benefit from (provision for) income taxes | (1,036 | ) | 2,023 | 167,039 | (115 | ) | 31 | (848 | ) | (93 | ) | (126 | ) | ||||||||||||
Net income (loss) | 710 | 12,487 | 268,938 | (10,319 | ) | (15,776 | ) | 59,027 | (27,741 | ) | (20,774 | ) | |||||||||||||
Net income (loss) per common share | |||||||||||||||||||||||||
Basic | $ | 0.01 | $ | 0.11 | $ | 2.27 | $ | 0.09 | $ | (0.13 | ) | $ | 0.49 | $ | (0.23 | ) | $ | (0.17 | ) | ||||||
Diluted | $ | 0.01 | $ | 0.1 | $ | 1.96 | $ | 0.09 | $ | (0.13 | ) | $ | 0.44 | $ | (0.23 | ) | $ | (0.17 | ) | ||||||
Income (loss) for purposes of computing net income (loss) per share: | |||||||||||||||||||||||||
Basic | 710 | 12,487 | 268,938 | (10,319 | ) | (15,776 | ) | 59,027 | (27,741 | ) | (20,774 | ) | |||||||||||||
Diluted | 710 | 13,739 | 270,190 | (10,319 | ) | (15,776 | ) | 60,992 | (27,741 | ) | (20,774 | ) | |||||||||||||
Weighted average common and common equivalent shares: | |||||||||||||||||||||||||
Basic | 117,039,907 | 116,760,061 | 118,601,346 | 121,380,553 | 120,199,937 | 119,363,613 | 119,137,118 | 118,946,297 | |||||||||||||||||
Diluted | 121,668,803 | 136,736,001 | 137,992,699 | 121,380,553 | 120,199,937 | 138,587,931 | 119,137,118 | 118,946,297 | |||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | ||||
DISH [Member] | DISH [Member] | DISH [Member] | AT&T INC. [Member] | AT&T INC. [Member] | Suddenlink [Member] | Suddenlink [Member] | Cisco Google [Member] | Com Hem AB [Member] | Royalty Arrangement [Member] | Royalty Arrangement [Member] | Prior to November 1, 2011 [Member] | After November 1, 2011 [Member] | TRA Global, Inc. [Member] | TRA Global, Inc. [Member] | Minimum [Member] | Maximum [Member] | Furniture and fixture [Member] | Furniture and fixture [Member] | Computer and office equipment [Member] | Computer and office equipment [Member] | Lab equipment [Member] | Leasehold improvements [Member] | Capitalized software for internal use [Member] | Capitalized software for internal use [Member] | |||||||
Net Revenues, Segment [Member] | Net Revenues, Segment [Member] | Net Revenues, Segment [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Net Revenues, Segment [Member] | Accounts Receivable [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||
Goodwill | $12,266,000 | $12,266,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Cash and Cash Equivalents [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Credit card, debit card, and EBT transactions | 1,900,000 | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Receivables [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Unbilled receivables | 5,600,000 | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,200,000 | 10,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Beginning Balance | 362,000 | 370,000 | 275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Charged to Operating Expenses | 253,000 | 219,000 | 476,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Deductions/Additions | -186,000 | [1] | -227,000 | [1] | -381,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | 429,000 | 362,000 | 370,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Property, plant and equipment, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | '3 years | '5 years | '3 years | '7 years | '1 year | '5 years | |||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Intangible asset, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset Impairment Charges | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,500,000 | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue Recognition [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product lifetime subscriptions, amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 months | '66 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Subscription Cancellation Period for Full Refund | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Marketing and Advertising Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Advertising expense | 4,900,000 | 4,300,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Advertising media expense | $3,400,000 | $3,900,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Risks and Uncertainties [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Concentration risk percentage of net revenue | ' | ' | ' | 11.00% | 15.00% | 14.00% | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Concentration risk percentage | ' | ' | ' | ' | ' | ' | 23.00% | 24.00% | 13.00% | 23.00% | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Deductions/additions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. |
CASH_AND_INVESTMENTS_Schedule_
CASH AND INVESTMENTS (Schedule of Investments and Maturity Date) (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $253,713 | $157,104 | $169,555 | $71,221 |
Other investment securities | 250 | 250 | ' | ' |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Due within 1 year | 662,299 | 365,386 | ' | ' |
Due within 1 year through 5 years | 86,110 | 104,340 | ' | ' |
Due within 5 years through 10 years | 0 | 0 | ' | ' |
Due after 10 years | 350 | 410 | ' | ' |
Total | 748,759 | 470,136 | ' | ' |
Cash [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 16,718 | 20,005 | ' | ' |
Commercial paper [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 72,268 | 99,040 | ' | ' |
Marketable debt securities | 176,205 | 128,023 | ' | ' |
Certificates of deposit [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 2,024 | ' | ' |
Marketable debt securities | 11,424 | 27,961 | ' | ' |
Money market funds [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 164,727 | 36,035 | ' | ' |
Cash and cash equivalents [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 253,713 | 157,104 | ' | ' |
Corporate debt securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable debt securities | 492,765 | 193,932 | ' | ' |
US agency securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable debt securities | 0 | 37,109 | ' | ' |
US treasury securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable debt securities | 20,024 | 40,286 | ' | ' |
Foreign government securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable debt securities | 0 | 9,555 | ' | ' |
Variable-rate demand notes [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable debt securities | 350 | 410 | ' | ' |
Asset and mortgage-backed securities | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable debt securities | 43,111 | 16,816 | ' | ' |
Municipal bonds [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable debt securities | 4,880 | 16,044 | ' | ' |
Current marketable debt securities [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Marketable debt securities | 748,759 | 470,136 | ' | ' |
Cost-method Investments [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Other investment securities | 250 | 250 | ' | ' |
Cash, Cash Equivalents, Marketable Securities, and Other Investments [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents Short term and Long term Investments [Line Items] | ' | ' | ' | ' |
Total cash, cash equivalents, marketable securities and other investment securities | $1,002,722 | $627,490 | ' | ' |
CASH_AND_INVESTMENTS_Unrealize
CASH AND INVESTMENTS (Unrealized Gain (Loss) on Investments) (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | $748,192 | $469,921 |
Gross Unrealized Gains | 633 | 291 |
Gross Unrealized Losses | -66 | -76 |
Fair Value | 748,759 | 470,136 |
Certificates of deposit [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | 11,424 | 27,961 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 11,424 | 27,961 |
Commercial paper [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | 176,120 | 127,967 |
Gross Unrealized Gains | 85 | 65 |
Gross Unrealized Losses | 0 | -9 |
Fair Value | 176,205 | 128,023 |
Corporate debt securities [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | 492,295 | 193,834 |
Gross Unrealized Gains | 532 | 147 |
Gross Unrealized Losses | -62 | -49 |
Fair Value | 492,765 | 193,932 |
US agency securities [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | ' | 37,081 |
Gross Unrealized Gains | ' | 28 |
Gross Unrealized Losses | ' | 0 |
Fair Value | ' | 37,109 |
US treasury securities [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | 20,023 | 40,266 |
Gross Unrealized Gains | 1 | 20 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 20,024 | 40,286 |
Foreign government securities [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | ' | 9,573 |
Gross Unrealized Gains | ' | 0 |
Gross Unrealized Losses | ' | -18 |
Fair Value | ' | 9,555 |
Variable-rate demand notes [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | 350 | 410 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 350 | 410 |
Asset and mortgage-backed securities | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | 43,105 | ' |
Gross Unrealized Gains | 10 | ' |
Gross Unrealized Losses | -4 | ' |
Fair Value | 43,111 | ' |
Asset-backed Securities [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | ' | 16,804 |
Gross Unrealized Gains | ' | 12 |
Gross Unrealized Losses | ' | 0 |
Fair Value | ' | 16,816 |
Municipal bonds [Member] | ' | ' |
Unrealized Gain (Loss) on Investments [Abstract] | ' | ' |
Adjusted Cost | 4,875 | 16,025 |
Gross Unrealized Gains | 5 | 19 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $4,880 | $16,044 |
FAIR_VALUE_Fair_Value_by_Balan
FAIR VALUE (Fair Value by Balance Sheet Grouping) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets | $985,754,000 | $607,235,000 |
Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 72,268,000 | 99,040,000 |
Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 2,024,000 |
Short-term investments | 11,424,000 | 27,961,000 |
Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 164,727,000 | 36,035,000 |
Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 176,205,000 | 128,023,000 |
Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 492,765,000 | 193,932,000 |
US agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 37,109,000 |
US treasury securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 20,024,000 | 40,286,000 |
Foreign government securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 9,555,000 |
Variable-rate demand notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 350,000 | 410,000 |
Asset and mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 43,111,000 | ' |
Asset-backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 16,816,000 |
Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 4,880,000 | 16,044,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets | 196,175,000 | 106,306,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 2,024,000 |
Short-term investments | 11,424,000 | 27,961,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 164,727,000 | 36,035,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US treasury securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 20,024,000 | 40,286,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign government securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Variable-rate demand notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset and mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets | 789,579,000 | 500,929,000 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 72,268,000 | 99,040,000 |
Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 0 |
Short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 176,205,000 | 128,023,000 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 492,765,000 | 193,932,000 |
Significant Other Observable Inputs (Level 2) [Member] | US agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 37,109,000 |
Significant Other Observable Inputs (Level 2) [Member] | US treasury securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign government securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 9,555,000 |
Significant Other Observable Inputs (Level 2) [Member] | Variable-rate demand notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 350,000 | 410,000 |
Significant Other Observable Inputs (Level 2) [Member] | Asset and mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 43,111,000 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 16,816,000 |
Significant Other Observable Inputs (Level 2) [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 4,880,000 | 16,044,000 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | 0 |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | US agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 0 |
Significant Unobservable Inputs (Level 3) [Member] | US treasury securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Foreign government securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Variable-rate demand notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Asset and mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | 0 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Asset-backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | ' | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | $0 | $0 |
FAIR_VALUE_Narrative_Details
FAIR VALUE (Narrative) (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Convertible debt carrying value | $172,500,000 | $172,500,000 |
Convertible debt fair value | 228,500,000 | 241,600,000 |
Cost method investment | $250,000 | ' |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Furniture and fixtures | $4,455 | $4,428 |
Computer and office equipment | 20,662 | 21,639 |
Lab equipment | 4,652 | 3,747 |
Leasehold improvements | 9,792 | 9,697 |
Capitalized internal use software | 23,945 | 21,801 |
Total property and equipment | 63,506 | 61,312 |
Less: accumulated depreciation and amortization | -52,819 | -51,012 |
Property and equipment, net | $10,687 | $10,300 |
PROPERTY_AND_EQUIPMENT_NET_Nar
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation | $5,500,000 | $5,800,000 | $6,100,000 |
Asset Impairment Charges | 4,800,000 | ' | ' |
Software and Software Development Costs [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Asset Impairment Charges | $296,000 | ' | ' |
DEVELOPED_TECHNOLOGY_AND_INTAN2
DEVELOPED TECHNOLOGY AND INTANGIBLE ASSETS, NET (Developed Technology and Intangible Assets, Net) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | |
TRA Global, Inc. [Member] | TRA Global, Inc. [Member] | Developed technology [Member] | Developed technology [Member] | Developed technology [Member] | Intellectual property rights [Member] | Intellectual property rights [Member] | Customer relationships and trade names [Member] | Customer relationships and trade names [Member] | Customer relationships and trade names [Member] | |||
TRA Global, Inc. [Member] | TRA Global, Inc. [Member] | |||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross | $30,387,000 | $37,409,000 | ' | ' | $10,259,000 | $15,161,000 | ' | $19,118,000 | $19,118,000 | $1,010,000 | $3,130,000 | ' |
Accumulated Amortization | -23,059,000 | -21,323,000 | ' | ' | -4,716,000 | -4,441,000 | ' | -18,260,000 | -16,616,000 | -83,000 | -266,000 | ' |
Net | 7,328,000 | 16,086,000 | ' | ' | 5,543,000 | 10,720,000 | ' | 858,000 | 2,502,000 | 927,000 | 2,864,000 | ' |
Payments to Acquire Intangible Assets | 14,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Life in Years | '5 years 2 months 5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Impairment Charges | $4,800,000 | ' | $4,500,000 | $4,500,000 | ' | ' | $3,000,000 | ' | ' | ' | ' | $1,500,000 |
DEVELOPED_TECHNOLOGY_AND_INTAN3
DEVELOPED TECHNOLOGY AND INTANGIBLE ASSETS, NET (Future Amoritzation Expense) (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization of intangible assets | $4,300,000 | $3,500,000 | $2,700,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2015 | 2,196,000 | ' | ' |
2016 | 2,018,000 | ' | ' |
2017 | 1,716,000 | ' | ' |
2018 | 1,155,000 | ' | ' |
2019 | 162,000 | ' | ' |
Thereafter | 81,000 | ' | ' |
Net | $7,328,000 | $16,086,000 | ' |
INVENTORY_Details
INVENTORY (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw Materials | $1,858 | $3,423 |
Finished Goods | 20,458 | 11,077 |
Total Inventory | $22,316 | $14,500 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ' | ' |
Compensation and vacation | $24,755 | $23,158 |
Marketing and promotions | 7,793 | 4,987 |
Legal services | 6,400 | 10,477 |
Redeemable gift certificates for subscriptions | 2,404 | 2,428 |
Interest payable | 2,588 | 2,588 |
Other | 6,264 | 6,405 |
Total accrued liabilities | $50,204 | $50,043 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Product warranty accrual | $621,000 | $419,000 | ' |
Extended Warranty Deferred Revenue | 2,000,000 | 875,000 | ' |
Extended warranty deferred cost of sales | 287,000 | 269,000 | ' |
Purchase commitments | 17,200,000 | ' | ' |
Arbitration award accrual | 4,700,000 | ' | ' |
Rent expense | 3,200,000 | 3,200,000 | 2,600,000 |
Payments for rent | $3,700,000 | $3,900,000 | $3,800,000 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Future Minimum Lease Payments) (Details) (USD $) | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' |
2015 | $3,189 |
2016 | 2,935 |
2017 | 2,716 |
Total | $8,840 |
CONVERTIBLE_SENIOR_NOTES_Detai
CONVERTIBLE SENIOR NOTES (Details) (USD $) | 12 Months Ended |
Jan. 31, 2014 | |
Senior Notes [Abstract] | ' |
Senior converitble notes initial principal | $150,000,000 |
Interest rate of debt | 4.00% |
Net proceeds convertible debt, original issuance | 144,500,000 |
Convertible senior notes additional principal | 22,500,000 |
Proceeds from Convertible Debt | 21,800,000 |
Conversion price of shares | 11.16 |
Payments of debt issuance costs | 6,400,000 |
Conversion ratio | 89.6359 |
Amount converted | $1,000 |
EQUITY_INCENTIVE_PLANS_Narrati
EQUITY INCENTIVE PLANS (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 | Mar. 28, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2010 | Mar. 28, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2008 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2009 | Jan. 31, 2014 | Jan. 31, 2014 | |
Stock Options [Member] | Market Based Awards [Member] | Market Based Awards [Member] | Market Based Awards [Member] | Market Based Awards [Member] | Market Based Awards [Member] | Performance and Market Based [Member] | Performance and Market Based [Member] | Performance and Market Based [Member] | Performance and Market Based [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Performance Based Awards [Member] | 1999 Employee Stock Plan [Member] | 1999 Employee Stock Plan [Member] | 1999 Employee Stock Plan [Member] | 1999 Employee Stock Plan [Member] | 1999 Directors Plan [Member] | 1999 Directors Plan [Member] | 1999 Employee Stock Purchase Plan [Member] | 2008 Equity Incentive Plan [Member] | 2008 Equity Incentive Plan [Member] | 2008 Equity Incentive Plan [Member] | 2008 Equity Incentive Plan [Member] | ||||
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Executive Officer [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | period | One Year [Member] | Remaining 36 months [Member] | ||||||||||||||||||
One Year [Member] | Remaining 36 months [Member] | Monthly Over Two Years [Member] | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of shares vesting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 75.00% | ' | ' | ' | ' | ' | 25.00% | 75.00% |
Option expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | '10 years | ' | ' | '7 years | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '3 years | ' | '3 years | '3 years | ' | ' | '48 months | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' |
Options expiration period upon employment terminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | '90 days | ' | ' | '90 days | ' | ' | ' |
Annual authorized option increases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' |
Shares authorized for option grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,384,204 | ' | ' | 1,400,000 | ' | ' | ' | 28,575,914 | ' | ' |
Maximum employee subscription rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Award requisite service period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 days | ' | ' | ' | ' |
Employee stock purchase plan purchase percentage of price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' |
Number of purchase periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Award purchase period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' |
Maximum employee stock purchase plan purchase periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '27 months | ' | ' | ' | ' |
Shares reserved for issuance - ESPP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Shares remaining for future purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,884,542 | ' | ' | ' | ' |
Number of shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,513,292 | ' | ' | ' |
Acceleration upon change in control and subsequent termination, minimum | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acceleration upon change in control and subsequent termination, maximum | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock price | $12.39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value | $4,800,000 | $9,700,000 | $6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from stock options exercised | 7,868,000 | 16,268,000 | 11,297,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards outstanding | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards aggregate intrinsic value at year end | 59,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock and restricted stock units vested in Period | 38,600,000 | 27,500,000 | 13,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grants in period | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Modified | ' | ' | ' | ' | 240,000 | ' | ' | ' | ' | 74,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation | 37,765,000 | 34,455,000 | 29,287,000 | ' | ' | 519,000 | 155,000 | 254,000 | ' | ' | 628,000 | 500,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 37,878,000 | 34,757,000 | 29,846,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | $2,900,000 | ' | $1,000,000 | ' | ' | ' | ' | $270,000 | ' | ' | $32,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs, period for recognition | ' | ' | ' | '2 years 1 month 17 days | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | '1 year 6 months 7 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vested and expected to vest, Shares | 7,585,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Tied To Market Value Of Common Stock | ' | ' | ' | ' | ' | ' | ' | 74,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted | 2,979,000 | 2,876,000 | 2,813,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275,000 | 250,000 | 150,248 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EQUITY_INCENTIVE_PLANS_Stock_O
EQUITY INCENTIVE PLANS (Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2010 | Jan. 31, 2011 |
Shares: | ' | ' | ' | ' | ' |
Ending Balance Balance | 7,664,000 | ' | ' | ' | ' |
Weighted-Average Exercise Price (in dollars per share): | ' | ' | ' | ' | ' |
Ending Balance | $7.45 | ' | ' | ' | ' |
Weighted- Average Remaining Contractual Term | '2 years 11 months 8 days | ' | ' | ' | ' |
Aggregate Intrinsic Value | $38,064 | ' | ' | ' | ' |
Stock Option [Member] | ' | ' | ' | ' | ' |
Shares: | ' | ' | ' | ' | ' |
Outstanding Beginning Balance | 8,657,000 | 11,149,000 | 12,668,000 | ' | ' |
Grants | 235,000 | 303,000 | 551,000 | ' | ' |
Exercises | -1,014,000 | -2,259,000 | -1,735,000 | ' | ' |
Forfeitures or expirations | -214,000 | -536,000 | -335,000 | ' | ' |
Ending Balance Balance | 7,664,000 | 8,657,000 | 11,149,000 | ' | ' |
Weighted-Average Exercise Price (in dollars per share): | ' | ' | ' | ' | ' |
Beginning Balance | $7.42 | $7.38 | $7.19 | ' | ' |
Grants | $12.12 | $9.83 | $9.66 | ' | ' |
Exercises | $7.76 | $7.20 | $6.51 | ' | ' |
Forfeitures or expirations | $9.89 | $8.84 | $8.34 | ' | ' |
Ending Balance | $7.45 | $7.42 | $7.38 | ' | ' |
Weighted- Average Remaining Contractual Term | '2 years 11 months 8 days | '3 years 10 months 2 days | '4 years 8 months 19 days | '5 years 6 months 15 days | ' |
Aggregate Intrinsic Value | $38,064 | $51,431 | $34,022 | ' | $32,453 |
EQUITY_INCENTIVE_PLANS_Stock_O1
EQUITY INCENTIVE PLANS (Stock Options Outstanding, By Exercise Price Range) (Details) (USD $) | 12 Months Ended |
Jan. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Shares outstanding, Shares | 7,664,000 |
Weighted- Average Remaining Contractual Term | '2 years 11 months 8 days |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $7.45 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 6,725,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $7.19 |
$3.78 - $3.78 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $3.78 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $3.78 |
Shares outstanding, Shares | 93,000 |
Weighted- Average Remaining Contractual Term | '1 year 0 months 3 days |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $3.78 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 93,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $3.78 |
$4.44 - $6.17 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $4.44 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $6.17 |
Shares outstanding, Shares | 68,000 |
Weighted- Average Remaining Contractual Term | '1 year 6 months 21 days |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $5.14 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 68,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $5.14 |
$6.18 - $6.18 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $6.18 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $6.18 |
Shares outstanding, Shares | 1,508,000 |
Weighted- Average Remaining Contractual Term | '3 years 0 months 29 days |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $6.18 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,508,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $6.18 |
$6.24 - $6.50 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $6.24 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $6.50 |
Shares outstanding, Shares | 59,000 |
Weighted- Average Remaining Contractual Term | '2 years 7 months 17 days |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $6.42 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 59,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $6.42 |
$6.51 - $6.51 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $6.51 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $6.51 |
Shares outstanding, Shares | 385,000 |
Weighted- Average Remaining Contractual Term | '2 years 5 months 15 days |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $6.51 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 385,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $6.51 |
$6.52 - $6.52 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $6.52 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $6.52 |
Shares outstanding, Shares | 1,826,000 |
Weighted- Average Remaining Contractual Term | '1 year 4 months 27 days |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $6.52 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,826,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $6.52 |
$6.71 - $12.38 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $6.71 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $12.38 |
Shares outstanding, Shares | 3,575,000 |
Weighted- Average Remaining Contractual Term | '3 years 8 months 1 day |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $8.46 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,745,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $8.32 |
$12.47 - $18.17 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $12.47 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $18.17 |
Shares outstanding, Shares | 150,000 |
Weighted- Average Remaining Contractual Term | '5 years 5 months 15 days |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $13.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 41,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $16.76 |
EQUITY_INCENTIVE_PLANS_Options
EQUITY INCENTIVE PLANS (Options Vested and Expected to Vest) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Shares outstanding, Shares | 7,664 |
Shares outstanding, Weighted-Average Exercise Price (in dollars per share) | $7.45 |
Shares outstanding, Weighted- Average Remaining Contractual Term | '2 years 11 months 8 days |
Shares outstanding, Aggregate Intrinsic Value | $38,064 |
Shares vested and expected to vest, Shares | 7,585 |
Shares vested and expected to vest, Weighted-Average Exercise Price (in dollars per share) | $7.42 |
Shares vested and expected to vest, Weighted-Average Remaining Contractual Term | '2 years 10 months 27 days |
Shares vested and expected to vest, Aggregate Intrinsic Value | 37,903 |
Shares exercisable, Shares | 6,725 |
Shares exercisable, Weighted-Average Exercise Price (in dollars per share) | $7.19 |
Shares exercisable, Weighted-Average Remaining Contractual Term | '2 years 8 months 12 days |
Shares exercisable, Aggregate Intrinsic Value | $35,161 |
EQUITY_INCENTIVE_PLANS_Unveste
EQUITY INCENTIVE PLANS (Unvested RSAs and RSUs Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Number of Shares: | ' | ' | ' |
Unvested Beginning Balance | 5,477 | 5,546 | 4,650 |
Granted | 2,979 | 2,876 | 2,813 |
Vested | -3,197 | -2,427 | -1,374 |
Forfeited | -472 | -518 | -543 |
Unvested Ending Balance | 4,787 | 5,477 | 5,546 |
Weighted-Average Grant Date Fair Value (in dollars per share): | ' | ' | ' |
Nonvested Beginning Balance | $10.85 | $10.02 | $10.03 |
Granted | $12.27 | $11.53 | $10.01 |
Vested | $12.08 | $11.32 | $9.80 |
Forfeited | $11.47 | $11.10 | $10.57 |
Nonvested Ending Balance | $11.88 | $10.85 | $10.02 |
STOCKBASED_COMPENSATION_Disclo
STOCK-BASED COMPENSATION (Disclosure of Share-based Compensation Arrangements by Share-based Payment Award) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | $37,878 | $34,757 | $29,846 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | -9,789 | 0 | 0 |
Allocated Share-based Compensation Expense, Net of Tax | 28,089 | 34,757 | 29,846 |
Cost of Service Revenues [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 2,032 | 1,241 | 830 |
Cost of Technology [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,626 | 1,754 | 1,666 |
Cost of hardware revenue [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 304 | 269 | 207 |
Research and Development Expense [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 13,717 | 12,544 | 10,768 |
Selling and Marketing Expense [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 5,631 | 4,105 | 3,962 |
General and Administrative Expense [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | 14,455 | 14,542 | 11,854 |
Deferred Project Costs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | $113 | $302 | $559 |
STOCKBASED_COMPENSATION_Schedu
STOCK-BASED COMPENSATION (Schedule of Share-based Payment Award Valuation Assumptions) (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Employee Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life (in years) | '9 months 18 days | '10 months 24 days | '9 months 11 days |
Volatility | 57.00% | 53.00% | 68.00% |
Average risk free interest rate | 0.64% | 0.20% | 0.28% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair value during the period | $3.21 | $4.22 | $3.29 |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life (in years) | '4 years 4 months 20 days | '4 years 4 months 17 days | '4 years 5 months 23 days |
Volatility | 51.00% | 58.00% | 65.00% |
Average risk free interest rate | 1.07% | 0.75% | 1.61% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair value during the period | $5.12 | $4.56 | $5.06 |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2014 |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost | $2,900 |
Unrecognized compensation costs, period for recognition | '2 years 1 month 17 days |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost | $32,600 |
Unrecognized compensation costs, period for recognition | '1 year 6 months 7 days |
RETIREMENT_PLANS_Details
RETIREMENT PLANS (Details) (USD $) | 12 Months Ended |
Jan. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% |
Defined Contribution Plan, Employer Matching Contribution, Maximum | $3,000 |
Defined Contribution Plan, Cost Recognized | $287,000 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before income taxes | $1,746,000 | $10,464,000 | $101,899,000 | ($10,204,000) | ($15,807,000) | $59,875,000 | ($27,648,000) | ($20,648,000) | $103,905,000 | ($4,228,000) | $102,968,000 |
Benefit from (provision for) income taxes | 1,036,000 | -2,023,000 | -167,039,000 | 115,000 | -31,000 | 848,000 | 93,000 | 126,000 | 167,911,000 | -1,036,000 | -807,000 |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 211,200,000 | ' | ' |
Deferred Tax Assets, Valuation Allowance | 24,419,000 | ' | ' | ' | 220,466,000 | ' | ' | ' | 24,419,000 | 220,466,000 | ' |
Net operating loss carryforwards | 78,294,000 | ' | ' | ' | 108,749,000 | ' | ' | ' | 78,294,000 | 108,749,000 | ' |
Unrecognized tax benefits that would impact effective tax rate | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' |
Share Based Compensation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards | 85,600,000 | ' | ' | ' | ' | ' | ' | ' | 85,600,000 | ' | ' |
Acquisition Section 382 Limitation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards | 12,900,000 | ' | ' | ' | ' | ' | ' | ' | 12,900,000 | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | 24,400,000 | ' | ' | ' | ' | ' | ' | ' | 24,400,000 | ' | ' |
Net operating loss carryforwards | 172,900,000 | ' | ' | ' | ' | ' | ' | ' | 172,900,000 | ' | ' |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused Research and Development Tax Credits | 32,100,000 | ' | ' | ' | ' | ' | ' | ' | 32,100,000 | ' | ' |
Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards | 284,100,000 | ' | ' | ' | ' | ' | ' | ' | 284,100,000 | ' | ' |
Internal Revenue Service (IRS) [Member] | Research Tax Credit Carryforward [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused Research and Development Tax Credits | $24,700,000 | ' | ' | ' | ' | ' | ' | ' | $24,700,000 | ' | ' |
INCOME_TAXES_Components_of_Inc
INCOME TAXES (Components of Income Tax) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
State | ' | ' | ' | ' | ' | ' | ' | ' | ($38) | $2 | $0 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 3,240 | 778 | 657 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 256 | 150 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 3,202 | 1,036 | 807 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -167,382 | 0 | 0 |
State | ' | ' | ' | ' | ' | ' | ' | ' | -3,731 | 0 | 0 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | -171,113 | 0 | 0 |
Total tax expense | ($1,036) | $2,023 | $167,039 | ($115) | $31 | ($848) | ($93) | ($126) | ($167,911) | $1,036 | $807 |
INCOME_TAXES_Effective_Income_
INCOME TAXES (Effective Income Tax Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Federal tax at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | $36,367 | ($1,480) | $36,039 |
State taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,628 | 778 | 657 |
Stock Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 559 | -318 | 360 |
Federal Research Tax Credit | ' | ' | ' | ' | ' | ' | ' | ' | 333 | 0 | 0 |
Non-deductible compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 3,209 | 3,442 | 2,477 |
Non-deductible expenses and other | ' | ' | ' | ' | ' | ' | ' | ' | 1,163 | 90 | 35 |
Foreign withholding tax | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 256 | 150 |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | -211,170 | -1,732 | -38,911 |
Total tax expense | ($1,036) | $2,023 | $167,039 | ($115) | $31 | ($848) | ($93) | ($126) | ($167,911) | $1,036 | $807 |
INCOME_TAXES_Deferred_Tax_Asse
INCOME TAXES (Deferred Tax Assets) (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $78,294 | $108,749 |
Research and alternative minimum tax credits | 34,022 | 33,628 |
Deferred revenue and rent | 48,885 | 43,053 |
Capitalized research and development | 4,175 | 7,367 |
Stock based compensation | 14,180 | 14,504 |
Other | 17,001 | 16,339 |
Total deferred tax assets | 196,557 | 223,640 |
Deferred tax liabilities: | ' | ' |
TRA intangibles | -1,025 | -3,174 |
Total deferred tax liabilities | 1,025 | 3,174 |
Valuation allowance | -24,419 | -220,466 |
Net deferred tax assets (liabilities) | $171,113 | $0 |
INCOME_TAXES_Unrecognized_Tax_
INCOME TAXES (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Beginning Balance | $14,812 | $12,075 | $8,745 |
Additions based on tax positions related to current year | 1,583 | 2,579 | 3,253 |
Additions for tax positions in prior years | 23 | 158 | 77 |
Lapse of statute of limitations | -154 | 0 | 0 |
Reduction for tax positions of prior years | -1,101 | 0 | 0 |
Ending Balance | $15,163 | $14,812 | $12,075 |
NET_INCOME_LOSS_PER_COMMON_SHA2
NET INCOME (LOSS) PER COMMON SHARE (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $710 | $12,487 | $268,938 | ($10,319) | ($15,776) | $59,027 | ($27,741) | ($20,774) | $271,816 | ($5,264) | $102,161 |
Interest on convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | 5,009 | 0 | 6,979 |
Net Income for purpose of computing net income (loss) per diluted share | $710 | $13,739 | $270,190 | ($10,319) | ($15,776) | $60,992 | ($27,741) | ($20,774) | $276,825 | ($5,264) | $109,140 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding, excluding unvested restricted stock | 117,039,907 | 116,760,061 | 118,601,346 | 121,380,553 | 120,199,937 | 119,363,613 | 119,137,118 | 118,946,297 | 118,445,466 | 119,411,727 | 116,592,943 |
Weighted average effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options and restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | 4,893,804 | 0 | 4,200,288 |
Convertible senior notes | ' | ' | ' | ' | ' | ' | ' | ' | 15,462,193 | 0 | 15,462,193 |
Denominator for diluted net income (loss) per common share | 121,668,803 | 136,736,001 | 137,992,699 | 121,380,553 | 120,199,937 | 138,587,931 | 119,137,118 | 118,946,297 | 138,801,463 | 119,411,727 | 136,255,424 |
Basic net income (loss) per common share | $0.01 | $0.11 | $2.27 | $0.09 | ($0.13) | $0.49 | ($0.23) | ($0.17) | $2.29 | ($0.04) | $0.88 |
Diluted net income (loss) per common share | $0.01 | $0.10 | $1.96 | $0.09 | ($0.13) | $0.44 | ($0.23) | ($0.17) | $1.99 | ($0.04) | $0.80 |
NET_INCOME_LOSS_PER_COMMON_SHA3
NET INCOME (LOSS) PER COMMON SHARE (Anti-Dilutive Shares) (Details) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive securities excluded from compuation of earnings per share | 595,829 | 31,864,824 | 5,294,611 |
Restricted Stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive securities excluded from compuation of earnings per share | 3,068 | 5,956,316 | 1,007,735 |
Stock Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive securities excluded from compuation of earnings per share | 592,761 | 10,358,316 | 4,286,876 |
Stock Compensation Plan [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive securities excluded from compuation of earnings per share | 0 | 87,999 | 0 |
Convertible Debt Securities [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive securities excluded from compuation of earnings per share | 0 | 15,462,193 | 0 |
SETTLEMENTS_Narrative_Details
SETTLEMENTS (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Apr. 29, 2011 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 03, 2012 | Jan. 04, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Sep. 28, 2012 | Sep. 21, 2012 | Jul. 02, 2013 | |
Settlement and Patent License Agreement [Member] | Settlement and Patent License Agreement [Member] | Settlement and Patent License Agreement [Member] | Dish Network [Member] | Dish Network [Member] | Dish Network [Member] | AT&T INC. [Member] | AT&T INC. [Member] | AT&T INC. [Member] | AT&T INC. [Member] | Verizon Settlement [Member] | Verizon Settlement [Member] | Motorola and Cisco [Member] | |
Litigation settlement | ' | ' | ' | $500,000,000 | ' | ' | $215,000,000 | ' | ' | ' | ' | ' | ' |
Payments for legal settlements | ' | ' | ' | 300,000,000 | ' | ' | ' | 51,000,000 | ' | ' | ' | ' | ' |
Future payments due on settlement and patent agreement | ' | ' | ' | 200,000,000 | ' | ' | ' | 164,000,000 | ' | ' | ' | ' | ' |
Annual installments due on settlement and patent agreement | ' | ' | ' | 33,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly installments (first 4 quarters) | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' |
Quarterly installments (5th quarter and thereafter) | ' | ' | ' | ' | ' | ' | ' | 6,500,000 | ' | ' | ' | ' | ' |
Proceeds from Legal Settlements | ' | ' | ' | ' | 175,700,000 | ' | ' | ' | ' | 54,400,000 | ' | ' | ' |
Interest income related to past infringement | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | 254,000 | ' | ' | ' |
Legal fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,500,000 | ' | ' | ' |
Payments for fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,300,000 | ' | ' | ' |
Accrued legal expense | ' | ' | ' | ' | ' | ' | ' | ' | 10,200,000 | ' | ' | ' | ' |
Payment terms related to litigation settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,400,000 | 490,000,000 |
Past infringement and litigation settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78,400,000 | 108,100,000 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 568,000 | 752,000 |
Initial payment received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' |
Future payment receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,400,000 | ' |
Future quarterly payment receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' |
Expected future license royalties receivable | ' | ' | ' | ' | ' | 321,400,000 | ' | ' | 160,300,000 | ' | ' | 171,400,000 | 381,100,000 |
Technology revenue, net | $141,584,000 | $77,340,000 | $35,275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SETTLEMENTS_Schedule_of_Contra
SETTLEMENTS (Schedule of Contractual Minimums Under Licensing Agreement, Revenue and Cash Received and Due) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 |
DISH, AT&T, Verizon, and Cisco and Motorola [Member] | DISH, AT&T, Verizon, and Cisco and Motorola [Member] | DISH, AT&T, Verizon, and Cisco and Motorola [Member] | DISH, AT&T, Verizon, and Cisco and Motorola [Member] | ||||||||||||
Schedule of Contractual Minimums Under Licensing Agreement, Revenue and Cash Received and Due [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License and Services Revenue | $47,716 | $48,133 | $42,056 | $27,725 | $30,153 | $25,727 | $21,825 | $23,887 | $165,630 | $101,592 | $58,945 | $136,532 | $76,841 | $35,275 | $248,648 |
Proceeds from License and Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 464,725 | 86,356 | 117,679 | 668,760 |
Future Expected Revenue to be Recognized [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 169,641 | ' | ' | 169,641 |
2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 171,563 | ' | ' | 171,563 |
2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 173,129 | ' | ' | 173,129 |
2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 174,411 | ' | ' | 174,411 |
2019 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,629 | ' | ' | 88,629 |
2020 - 2024 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,193 | ' | ' | 8,193 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 785,566 | ' | ' | 785,566 |
Technology Revenue, Future Minimum Cash Due [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,579 | ' | ' | 83,579 |
2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,579 | ' | ' | 83,579 |
2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,579 | ' | ' | 83,579 |
2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,579 | ' | ' | 83,579 |
2019 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,139 | ' | ' | 31,139 |
2020 - 2024 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 0 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $365,455 | ' | ' | $365,455 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], Digitalsmiths Corporation [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Feb. 14, 2014 |
Subsequent Event [Member] | Digitalsmiths Corporation [Member] | ' |
Subsequent Event [Line Items] | ' |
Business Combination, Consideration Transferred | $135 |
SELECTED_QUARTERLY_FINANCIAL_S2
SELECTED QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Revenue, Services, Net | $36,317 | $33,526 | $34,930 | $34,062 | $35,574 | $35,228 | $32,302 | $30,621 | $138,835 | $133,725 | $131,341 |
License and Services Revenue | 47,716 | 48,133 | 42,056 | 27,725 | 30,153 | 25,727 | 21,825 | 23,887 | 165,630 | 101,592 | 58,945 |
Hardware revenues | 22,301 | 35,597 | 23,104 | 20,786 | 23,129 | 21,072 | 11,129 | 13,261 | 101,788 | 68,591 | 47,893 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | 106,334 | 117,256 | 100,090 | 82,573 | 88,856 | 82,027 | 65,256 | 67,769 | 406,253 | 303,908 | 238,179 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of service revenues | 15,596 | 11,233 | 11,408 | 10,805 | 11,619 | 11,238 | 8,871 | 8,379 | 49,042 | 40,107 | 35,865 |
Cost of technology revenues | 4,483 | 5,612 | 11,867 | 3,711 | 7,318 | 5,779 | 3,792 | 6,286 | 25,673 | 23,175 | 23,056 |
Cost of hardware revenues | 23,163 | 33,017 | 21,957 | 18,496 | 21,847 | 23,434 | 14,431 | 18,471 | 96,633 | 78,183 | 59,439 |
Total cost of revenues | 43,242 | 49,862 | 45,232 | 33,012 | 40,784 | 40,451 | 27,094 | 33,136 | 171,348 | 141,465 | 118,360 |
Gross margin | 63,092 | 67,394 | 54,858 | 49,561 | 48,072 | 41,576 | 38,162 | 34,633 | 234,905 | 162,443 | 119,819 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | 26,908 | 27,242 | 26,305 | 26,462 | 26,614 | 28,277 | 29,652 | 30,560 | 106,917 | 115,103 | 110,367 |
Sales and marketing | 11,238 | 10,189 | 9,069 | 8,507 | 8,928 | 7,958 | 7,243 | 6,224 | 39,003 | 30,353 | 26,388 |
Sales and marketing, subscription acquisition costs | 6,038 | 2,628 | 1,996 | 1,859 | 3,471 | 1,560 | 2,372 | 1,257 | 12,521 | 8,660 | 7,392 |
General and administrative | 16,461 | 15,839 | 23,225 | 21,786 | 23,708 | 21,772 | 25,429 | 16,166 | 77,311 | 87,075 | 96,502 |
Litigation Proceeds | 0 | 0 | -108,102 | 0 | 0 | -78,441 | 0 | 0 | -108,102 | -78,441 | -230,160 |
Income (loss) from operations | 2,447 | 11,496 | 102,365 | -9,053 | -14,649 | 60,450 | -26,534 | -19,574 | 107,255 | -307 | 109,330 |
Interest income | 1,272 | 1,133 | 1,499 | 823 | 808 | 1,383 | 852 | 908 | 4,727 | 3,951 | 5,672 |
Interest expense and other | -1,973 | -2,165 | -1,965 | -1,974 | -1,966 | -1,958 | -1,966 | -1,982 | -8,077 | -7,872 | -12,034 |
Income (loss) before income taxes | 1,746 | 10,464 | 101,899 | -10,204 | -15,807 | 59,875 | -27,648 | -20,648 | 103,905 | -4,228 | 102,968 |
Income Tax Expense (Benefit) | -1,036 | 2,023 | 167,039 | -115 | 31 | -848 | -93 | -126 | -167,911 | 1,036 | 807 |
Net income (loss) | 710 | 12,487 | 268,938 | -10,319 | -15,776 | 59,027 | -27,741 | -20,774 | 271,816 | -5,264 | 102,161 |
Net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.01 | $0.11 | $2.27 | $0.09 | ($0.13) | $0.49 | ($0.23) | ($0.17) | $2.29 | ($0.04) | $0.88 |
Diluted net income (loss) per common share | $0.01 | $0.10 | $1.96 | $0.09 | ($0.13) | $0.44 | ($0.23) | ($0.17) | $1.99 | ($0.04) | $0.80 |
Income (loss) for purposes of computing net income (loss) per share - Basic | 710 | 12,487 | 268,938 | -10,319 | -15,776 | 59,027 | -27,741 | -20,774 | 271,816 | -5,264 | 102,161 |
Net Income for purpose of computing net income per diluted share | $710 | $13,739 | $270,190 | ($10,319) | ($15,776) | $60,992 | ($27,741) | ($20,774) | $276,825 | ($5,264) | $109,140 |
Basic (in shares) | 117,039,907 | 116,760,061 | 118,601,346 | 121,380,553 | 120,199,937 | 119,363,613 | 119,137,118 | 118,946,297 | 118,445,466 | 119,411,727 | 116,592,943 |
Diluted (in shares) | 121,668,803 | 136,736,001 | 137,992,699 | 121,380,553 | 120,199,937 | 138,587,931 | 119,137,118 | 118,946,297 | 138,801,463 | 119,411,727 | 136,255,424 |