Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2016 | Oct. 25, 2016 | |
Document And Entity Information [Abstract] | ||
Trading Symbol | CVLT | |
Entity Registrant Name | COMMVAULT SYSTEMS INC | |
Entity Central Index Key | 1,169,561 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 45,293,158 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 321,794 | $ 288,107 |
Short-term investments | 117,832 | 99,072 |
Trade accounts receivable, less allowance for doubtful accounts of $329 at September 30, 2016 and $315 at March 31, 2016 | 105,676 | 113,429 |
Prepaid expenses and other current assets | 20,672 | 16,769 |
Total current assets | 565,974 | 517,377 |
Deferred tax assets, net | 57,032 | 49,976 |
Property and equipment, net | 133,051 | 135,904 |
Equity method investment | 4,335 | 4,579 |
Other assets | 6,083 | 6,737 |
Total assets | 766,475 | 714,573 |
Current liabilities: | ||
Accounts payable | 104 | 309 |
Accrued liabilities | 71,581 | 69,678 |
Deferred revenue | 193,182 | 194,977 |
Total current liabilities | 264,867 | 264,964 |
Deferred revenue, less current portion | 59,243 | 49,889 |
Other liabilities | 3,825 | 3,452 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding at September 30, 2016 and March 31, 2016 | 0 | 0 |
Common stock, $0.01 par value: 250,000 shares authorized, 44,782 shares and 44,134 shares issued and outstanding at September 30, 2016 and March 31, 2016, respectively | 447 | 440 |
Additional paid-in capital | 649,389 | 602,999 |
Accumulated deficit | (200,568) | (197,962) |
Accumulated other comprehensive loss | (10,728) | (9,209) |
Total stockholders’ equity | 438,540 | 396,268 |
Total liabilities and stockholders’ equity | $ 766,475 | $ 714,573 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful trade accounts receivable | $ 329 | $ 315 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 44,782,000 | 44,134,000 |
Common stock, shares outstanding (in shares) | 44,782,000 | 44,134,000 |
Consolidated Statements of Loss
Consolidated Statements of Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Software | $ 70,457 | $ 57,567 | $ 134,394 | $ 114,060 |
Services | 88,876 | 83,175 | 177,352 | 165,805 |
Total revenues | 159,333 | 140,742 | 311,746 | 279,865 |
Cost of revenues: | ||||
Software | 773 | 528 | 1,534 | 1,065 |
Services | 20,884 | 20,411 | 41,118 | 40,421 |
Total cost of revenues | 21,657 | 20,939 | 42,652 | 41,486 |
Gross margin | 137,676 | 119,803 | 269,094 | 238,379 |
Operating expenses: | ||||
Sales and marketing | 94,789 | 85,842 | 187,479 | 171,624 |
Research and development | 20,221 | 16,135 | 39,449 | 32,913 |
General and administrative | 21,314 | 19,906 | 41,252 | 39,715 |
Depreciation and amortization | 2,109 | 2,474 | 4,219 | 4,936 |
Total operating expenses | 138,433 | 124,357 | 272,399 | 249,188 |
Loss from operations | (757) | (4,554) | (3,305) | (10,809) |
Interest expense | (245) | (234) | (491) | (458) |
Interest income | 276 | 199 | 531 | 380 |
Equity in loss of affiliate | (158) | 0 | (244) | 0 |
Loss before income taxes | (884) | (4,589) | (3,509) | (10,887) |
Income tax expense (benefit) | (322) | 4,647 | (903) | (351) |
Net loss | $ (562) | $ (9,236) | $ (2,606) | $ (10,536) |
Net loss per common share: | ||||
Basic (in dollars per share) | $ (0.01) | $ (0.20) | $ (0.06) | $ (0.23) |
Diluted (in dollars per share) | $ (0.01) | $ (0.20) | $ (0.06) | $ (0.23) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 44,589 | 45,437 | 44,417 | 45,361 |
Diluted (in shares) | 44,589 | 45,437 | 44,417 | 45,361 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (562) | $ (9,236) | $ (2,606) | $ (10,536) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (443) | (2,444) | (1,519) | (1,680) |
Comprehensive loss | $ (1,005) | $ (11,680) | $ (4,125) | $ (12,216) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 6 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid – In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2016 | 44,134 | ||||
Beginning balance at Mar. 31, 2016 | $ 396,268 | $ 440 | $ 602,999 | $ (197,962) | $ (9,209) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 36,043 | 36,043 | |||
Tax benefits relating to stock-based payments | (1,099) | (1,099) | |||
Share issuances related to stock-based compensation (in shares) | 648 | ||||
Share issuances related to stock-based compensation | 11,453 | $ 7 | 11,446 | ||
Net loss | (2,606) | (2,606) | |||
Other comprehensive loss | (1,519) | (1,519) | |||
Ending balance (in shares) at Sep. 30, 2016 | 44,782 | ||||
Ending balance at Sep. 30, 2016 | $ 438,540 | $ 447 | $ 649,389 | $ (200,568) | $ (10,728) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (2,606) | $ (10,536) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 5,004 | 5,716 |
Noncash stock-based compensation | 36,043 | 30,289 |
Excess tax benefits from stock-based compensation | (1,201) | (5,899) |
Deferred income taxes | (6,921) | (4,527) |
Equity in loss of affiliate | 244 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 7,195 | 31,359 |
Prepaid expenses and other current assets | (4,307) | (4,807) |
Other assets | 854 | (400) |
Accounts payable | (202) | (36) |
Accrued liabilities | 756 | (5,860) |
Deferred revenue | 9,244 | (4,028) |
Other liabilities | 183 | 198 |
Net cash provided by operating activities | 44,286 | 31,469 |
Cash flows from investing activities | ||
Purchase of short-term investments | (66,609) | (47,849) |
Proceeds from maturity of short-term investments | 47,849 | 24,979 |
Purchases for corporate campus headquarters | 0 | (2,111) |
Purchase of property and equipment | (2,080) | (3,115) |
Net cash used in investing activities | (20,840) | (28,096) |
Cash flows from financing activities | ||
Repurchase of common stock | 0 | (24,991) |
Proceeds from the exercise of stock options and the Employee Stock Purchase Plan | 11,453 | 7,977 |
Excess tax benefits from stock-based compensation | 1,201 | 5,899 |
Net cash provided by (used in) financing activities | 12,654 | (11,115) |
Effects of exchange rate — changes in cash | (2,413) | (2,727) |
Net increase (decrease) in cash and cash equivalents | 33,687 | (10,469) |
Cash and cash equivalents at beginning of period | 288,107 | 337,673 |
Cash and cash equivalents at end of period | 321,794 | 327,204 |
Supplemental disclosures of cash flow information | ||
Repurchase of common stock in accrued expenses | $ 0 | $ 7,813 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Commvault Systems, Inc. and its subsidiaries (“Commvault” or the “Company”) is a leading provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with data protection solutions supporting all major operating systems, applications, and databases on virtual and physical servers, NAS shares, cloud-based infrastructures, and mobile devices; management through a single console; multiple protection methods including backup and archive, snapshot management, replication, and content indexing for eDiscovery; efficient storage management using deduplication for disk, tape and cloud; integration with the industry's top storage arrays; complete virtual infrastructure management supporting multiple hypervisors; security capabilities to limit access to critical data; policy based data management; and an end-user experience that allows them to protect, find and recover their own data using common tools such as web browsers, Microsoft Outlook and File Explorer. The Company also provides its customers with a broad range of professional and customer support services. The consolidated financial statements as of September 30, 2016 and for the three and six months ended September 30, 2016 and 2015 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2016 . The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, allowance for doubtful accounts, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies There have been no significant changes in the Company’s accounting policies during the six months ended September 30, 2016 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2016 . Recently Issued Accounting Standards Revenue Recognition In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" (ASU 2014-09) and has since modified the standard with ASU 2015-14, "Deferral of the Effective Date." These standards replace existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. The new standard becomes effective for the Company's fiscal 2019 with early adoption permitted in fiscal 2018. The Company is in the process of determining the impact of the standard on the financial statements and the timing of adoption. The FASB allows two adoption methods under the new standard. Under one method, a company will apply the rules to contracts in all reporting periods presented. The Company currently believes it will apply this method of adoption. Leases In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-02, a lessee will recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The amendments of this ASU are effective for the Company's fiscal 2020, with early adoption permitted. A company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on the financial statements. Stock-based Compensation In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company is required to adopt the new guidance in fiscal 2018 with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2016-09 will have on the financial statements. There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s financial position, results of operations or cash flows. Revenue Recognition The Company derives revenues from two primary sources: software licenses and services. Services include customer support, consulting, assessment and design services, installation services and training. A typical sales arrangement includes both licenses and services. For sales arrangements involving multiple elements, the Company recognizes revenue using the residual method. Under the residual method, the Company allocates and defers revenue for the undelivered elements based on fair value and recognizes the difference between the total arrangement fee and the amount deferred for the undelivered elements as revenue. The determination of fair value of the undelivered elements in multiple-element arrangements is based on the price charged when such elements are sold separately, which is commonly referred to as vendor-specific objective-evidence, or VSOE. The Company’s software licenses typically provide for a perpetual right to use the Company’s software and are sold on a per-terabyte basis, on a per-copy basis, as site licenses or as a solution set. Software licenses sold on a capacity basis provide the customer with unlimited licenses of specified software products based on a defined level of terabytes of data under management. Site licenses give the customer the additional right to deploy the software on a limited basis during a specified term. Solution sets are generally sold on a per unit basis such as per virtual machine for our virtual machine backup, recovery and cloud management solution set; per mailbox for our email archive solution set and per user for our endpoint data protection solution set. The Company recognizes software revenue through direct sales channels upon receipt of a purchase order or other persuasive evidence and when all other basic revenue recognition criteria are met as described below. The Company recognizes software revenue through all indirect sales channels on a sell-through model. A sell-through model requires that the Company recognize revenue when the basic revenue recognition criteria are met as described below and these channels complete the sale of the Company’s software products to the end-user. Revenue from software licenses sold through an original equipment manufacturer partner is recognized upon the receipt of a royalty report or purchase order from that original equipment manufacturer partner. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. To determine the price for the customer support element when sold separately, the Company primarily uses historical renewal rates. Historical renewal rates are supported by performing an analysis in which the Company segregates its customer support renewal contracts into different classes based on specific criteria including, but not limited to, the dollar amount of the software purchased, the level of customer support being provided and the distribution channel. As a result of this analysis, the Company has concluded that it has established VSOE for the different classes of customer support when the support is sold as part of a multiple-element sales arrangement. The Company’s determination of fair value for customer support has not changed for the periods presented. The Company’s other professional services include consulting services, implementation and post-deployment services and education services. Other professional services provided by the Company are not mandatory and can also be performed by the customer or a third-party. In addition to a signed purchase order, the Company’s consulting services and implementation and post-deployment services are, in some cases, evidenced by a Statement of Work, which defines the specific scope of such services to be performed when sold and performed on a stand-alone basis or included in multiple-element sales arrangements. Revenues from consulting services and implementation and post-deployment services are based upon a daily or weekly rate and are recognized when the services are completed. Education services include courses taught by the Company’s instructors or third-party contractors either at one of the Company’s facilities or at the customer’s site. Education services fees are recognized as revenue after the course has been provided. Based on the Company’s analysis of such other professional services transactions sold on a stand-alone basis, the Company has concluded it has established VSOE for such other professional services when sold in connection with a multiple-element sales arrangement. The Company generally performs its other professional services within 90 days of entering into an agreement. The Company’s determination of fair value for other professional services has not changed for the periods presented. The Company has analyzed all of the undelivered elements included in its multiple-element sales arrangements and determined that VSOE of fair value exists to allocate revenues to services. Accordingly, assuming all basic revenue recognition criteria are met, software revenue is recognized upon delivery of the software license using the residual method. The Company considers the four basic revenue recognition criteria for each of the elements as follows: • Persuasive evidence of an arrangement with the customer exists. The Company’s customary practice is to require a purchase order and, in some cases, a written contract signed by both the customer and the Company, or other persuasive evidence that an arrangement exists prior to recognizing revenue related to an arrangement. • Delivery or performance has occurred. The Company’s software applications are either physically or electronically delivered to customers with standard transfer terms such as FOB shipping point. Software and/or software license keys for add-on orders or software updates are typically delivered in an electronic format. If products that are essential to the functionality of the delivered software in an arrangement have not been delivered, the Company does not consider delivery to have occurred. Services revenue is recognized when the services are completed, except for customer support, which is recognized ratably over the term of the customer support agreement, which is typically one year. • Vendor’s fee is fixed or determinable. The fee customers pay for software applications, customer support and other professional services is negotiated at the outset of a sales arrangement. The fees are therefore considered to be fixed or determinable at the inception of the arrangement. The Company evaluates instances when extended payment terms are granted to determine if revenue should be deferred until payment becomes due. • Collection is probable. Probability of collection is assessed on a customer-by-customer basis. Each new customer undergoes a credit review process to evaluate its financial position and ability to pay. If the Company determines from the outset of an arrangement that collection is not probable based upon the review process, revenue is recognized at the earlier of when cash is collected or when sufficient credit becomes available, assuming all of the other basic revenue recognition criteria are met. The Company’s sales arrangements generally do not include acceptance clauses. However, if an arrangement does include an acceptance clause, revenue for such an arrangement is deferred and recognized upon acceptance. Acceptance occurs upon the earliest of receipt of a written customer acceptance, waiver of customer acceptance or expiration of the acceptance period. Deferred Revenue Deferred revenues represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from the billing of annual customer support agreements, and billings for other professional services fees that have not yet been performed by the Company and receipt of license fees that are deferred due to one or more of the revenue recognition criteria not being met. The value of deferred revenues will increase or decrease based on the timing of invoices and recognition of revenue. The Company expenses internal direct and incremental costs related to contract acquisition and origination as incurred. Deferred revenue consists of the following: September 30, March 31, Current: Deferred software revenue $ 3,335 $ 1,578 Deferred services revenue 189,847 193,399 $ 193,182 $ 194,977 Non-current: Deferred services revenue $ 59,243 $ 49,889 Total Deferred Revenue $ 252,425 $ 244,866 Concentration of Credit Risk The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal. Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 35% and 37% of total revenues for the six months ended September 30, 2016 and 2015 , respectively. Arrow accounted for approximately 38% of total accounts receivable as of September 30, 2016 and 43% of total accounts receivable as of March 31, 2016 . Sales through the Company’s distribution agreement with Avnet Technology Solutions ("Avnet") totaled 10% of total revenues for the six months ended September 30, 2016 . Avnet accounted for approximately 11% of total accounts receivable as of September 30, 2016 . Fair Value of Financial Instruments The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for such asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table summarizes the composition of the Company’s financial assets measured at fair value at September 30, 2016 and March 31, 2016 : September 30, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 70,661 — — $ 70,661 Short-term investments $ — 118,201 — $ 118,201 March 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 95,735 — — $ 95,735 Short-term investments $ — 99,215 — $ 99,215 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: September 30, March 31, 2016 2016 Land $ 9,445 $ 9,445 Buildings 103,244 103,193 Computers, servers and other equipment 33,866 33,120 Furniture and fixtures 14,696 14,458 Leasehold improvements 6,934 6,948 Purchased software 1,342 1,279 Construction in process 260 165 169,787 168,608 Less: Accumulated depreciation and amortization (36,736 ) (32,704 ) $ 133,051 $ 135,904 The Company recorded depreciation and amortization expense of $4,878 and $5,590 for the six months ended September 30, 2016 and 2015 , respectively. |
Net Loss per Common Share
Net Loss per Common Share | 6 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Net Loss per Common Share Basic net income (loss) per common share is computed by dividing net loss by the weighted average number of common shares during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options, vesting of restricted stock units and shares to be purchased under the Employee Stock Purchase Plan. The dilutive effect of such potential common shares is reflected in diluted earnings per share by application of the treasury stock method. The diluted weighted average shares outstanding exclude outstanding stock options, restricted stock units, performance stock options, performance restricted stock units and shares to be purchased under the employee stock purchase plan totaling approximately 8,381 and 7,850 for the three months ended September 30, 2016 and 2015 and 8,374 and 8,012 for the six months ended September 30, 2016 and 2015 , respectively, because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of its business, the Company may be involved in various claims, negotiations and legal actions. As of September 30, 2016, the Company is not aware of any asserted or unasserted claims, negotiations and legal actions for which a loss is considered reasonably possible of occurring and would require disclosure under the guidance. On September 10, 2014, a purported class action complaint was filed in the United States District Court for the District of New Jersey against the Company, its Chief Executive Officer and its Chief Financial Officer. The case is captioned In re Commvault Systems, Inc. Securities Litigation (Master File No. 3:14-cv-05628-MAS-LHG). The suit alleges that the Company made materially false and misleading statements, or failed to disclose material facts, regarding the Company's financial results, business, operations and prospects in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The suit asserts claims covering an alleged class period from May 7, 2013 through April 24, 2014. It is purportedly brought on behalf of purchasers of the Company's common stock during that period, and seeks compensatory damages, costs and expenses, as well as equitable or other relief. Lead plaintiff, the Arkansas Teachers Retirement System, was appointed on January 12, 2015, and on March 18, 2015, an amended complaint was filed by the plaintiffs. On December 17, 2015, the defendant's motion to dismiss the case was granted and the case dismissed; however, the plaintiffs were permitted to re-file their claim, which they did on February 5, 2016. Defendants filed another motion to dismiss on April 5, 2016, which was denied by the court on September 30, 2016. Due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of this matter. The Company is unable at this time to determine whether the outcome of the litigation will have a material impact on its results of operations, financial condition or cash flows. As of September 30, 2016 the Company has not recorded a reserve for this matter. |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility On June 30, 2014, the Company entered into a five -year $250,000 revolving credit facility (the “Credit Facility”). The Credit Facility is available for share repurchases, general corporate purposes, and letters of credit. The Credit Facility contains financial maintenance covenants including a leverage ratio and interest coverage ratio. The Credit Facility also contains certain customary events of default which would permit the lenders to, among other things, declare all loans then outstanding to be immediately due and payable if such default is not cured within applicable grace periods. The Credit Facility also limits the Company's ability to incur certain additional indebtedness, create or permit liens on assets, make acquisitions, make investments, loans or advances, sell or transfer assets, pay dividends or distributions, and engage in certain transactions with foreign affiliates. Outstanding borrowings under the Credit Facility accrue interest at an annual rate equal to London Interbank Offered Rate plus 1.50% subject to increases based on the Company's actual leverage. The unused balance on the Credit Facility is also subject to a 0.25% annual interest charge subject to increases based on the Company's actual leverage. As of September 30, 2016 , there were no borrowings under the Credit Facility and the Company was in compliance with all covenants. The Company has deferred the expense related to debt issuance costs, which are classified as Other Assets, and will amortize the costs into interest expense over the term of the Credit Facility. Unamortized amounts at September 30, 2016 were $694 . The amortization of debt issuance costs was $63 and $126 in the three and six months ended September 30, 2016 and 2015 . |
Capitalization
Capitalization | 6 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Capitalization | Capitalization The company did no t repurchase any of its shares during the six months ended September 30, 2016. As of September 30, 2016 , $93,102 remained in the stock repurchase authorization that expires on March 31, 2017. |
Stock Plans
Stock Plans | 6 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Stock Plans On August 16, 2016, the Company’s Omnibus Incentive Plan (the “2016 Incentive Plan”) was approved by its shareholders. The 2016 Incentive Plan authorizes a broad range of awards including stock options, stock appreciation rights, full value awards (including restricted stock, restricted stock units, performance shares or units and other stock-based awards) and cash-based awards. The maximum number of shares of common stock that may be delivered under the 2016 Incentive Plan is equal to 2,800 shares. The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development and General and administrative expenses for the three and six months ended September 30, 2016 and 2015 . Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan. Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Cost of services revenue $ 964 $ 719 $ 1,835 $ 1,388 Sales and marketing 8,290 6,440 15,961 13,040 Research and development 1,770 1,531 3,448 3,075 General and administrative 7,679 6,378 14,799 12,786 Stock-based compensation expense $ 18,703 $ 15,068 $ 36,043 $ 30,289 As of September 30, 2016 , there was approximately $96,050 of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested stock option and restricted stock unit awards that is expected to be recognized over a weighted average period of 1.79 years. To the extent the actual forfeiture rate is different from what the Company has estimated, stock-based compensation related to these awards will be different from the Company’s current estimate. Stock Options Stock Option activity for the six months ended September 30, 2016 is as follows: Options Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of March 31, 2016 5,939 $ 44.07 Options granted — — Options exercised (238 ) 30.61 Options forfeited (56 ) 52.39 Options expired (94 ) 69.73 Outstanding as of September 30, 2016 5,551 $ 44.13 5.24 $ 84,785 Vested or expected to vest as of September 30, 2016 5,518 $ 44.09 5.22 $ 84,558 Exercisable as of September 30, 2016 4,632 $ 41.64 4.73 $ 79,723 The weighted average fair value of stock options granted was $13.75 and $15.47 per option during the three and six months ended September 30, 2015 . The total intrinsic value of options exercised was $3,070 and $4,439 for the three and six months ended September 30, 2016 and $13,650 and $19,974 for the three and six months ended September 30, 2015 . The Company’s policy is to issue new shares upon exercise of options as the Company does not hold shares in treasury. Restricted Stock Units Restricted stock unit activity for the six months ended September 30, 2016 is as follows: Non-vested Restricted Stock Units Number of Weighted Non-vested as of March 31, 2016 2,212 $ 43.43 Awarded 598 47.76 Vested (270 ) 45.67 Forfeited (100 ) 43.15 Non-vested as of September 30, 2016 2,440 $ 42.74 The weighted average fair value of restricted stock units awarded was $52.13 and $47.76 per unit during the three and six months ended September 30, 2016 , and $39.58 and $41.41 per unit during the three and six months ended September 30, 2015 , respectively. Performance Based Awards In May 2016, the Company granted 115 performance restricted stock units ("PSU") to certain executives. Vesting of these awards is contingent upon i) the Company meeting certain company-wide revenue and non-GAAP performance goals (performance-based) in fiscal 2017 and ii) the Company's customary service periods. The awards vest in three annual tranches and have a maximum potential to vest at 200% ( 230 shares) based on actual fiscal 2017 performance. The related stock-based compensation expense is determined based on the value of the underlying shares on the date of grant and is recognized over the vesting term using the accelerated method. During the interim financial periods, management estimates the probable number of PSU’s that would vest until the ultimate achievement of the performance goals is known. The awards are included in the restricted stock unit table. Awards with a Market Condition In the six months ended September 30, 2016, the Company granted 123 market performance stock units to certain executives. The vesting of these awards is contingent upon the Company meeting certain total shareholder return ("TSR") levels as compared to a market index over the next three years. The awards vest in three annual tranches and have a maximum potential to vest at 200% ( 246 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The weighted average fair value of the awards granted during the six months ended September 30, 2016 was $57.28 . The awards are included in the restricted stock unit table. Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “Purchase Plan”) is a shareholder approved plan under which substantially all employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of the six -month offering periods. An employee’s payroll deductions under the Purchase Plan are limited to 10% of the employee’s salary and employees may not purchase more than $25 of stock during any calendar year. As of September 30, 2016 , 2,503 shares were reserved for future issuance under the Purchase Plan. The Purchase Plan is considered compensatory and the fair value of the discount and look back provision are estimated using the Black-Scholes formula and recognized over the six month withholding period prior to purchase. The total expense associated with the Purchase Plan was $655 and $1,334 for the three and six months ended September 30, 2016 and $520 and $1,196 for the three and six months ended September 30, 2015 . |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit was $322 and $903 in the three and six months ended September 30, 2016 . The effective rate of the income tax benefit in the six month period ending September 30, 2016 is lower than the federal statutory rate primarily due to the favorable impact of research tax credits partially offset the unfavorable impact of permanent differences as well as by $616 of income tax expense related to a change in the estimated state tax rate applied to the state deferred tax assets and the state income tax payable. Income tax expense was $4,647 and income tax benefit was $351 in the three and six months ended September 30, 2015, respectively. The effective rate of the income tax benefit in the six month period is lower than the federal statutory rate due to the impact of unfavorable permanent differences. Unrecognized Tax Benefits The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in each of its tax jurisdictions. The number of years with open tax audits varies depending on the tax jurisdiction. A number of years may lapse before a particular matter is audited and finally resolved. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Balance as of March 31, 2016 $ 1,952 Additions for tax positions related to fiscal 2017 115 Additions for tax positions related to prior years — Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations — Foreign currency translation adjustment — Balance as of September 30, 2016 $ 2,067 All of the Company’s unrecognized tax benefits would favorably impact the effective tax rate if they were recognized. Components of the reserve are classified as either current or long-term in the Consolidated Balance Sheet based on when the Company expects each of the items to be settled. Unrecognized tax benefits and the related accrued interest and penalties totaling $1,892 are recorded as Other Liabilities on the Consolidated Balance Sheet, of which $230 represents interest and penalties. The Company also has unrecognized tax benefits and related accrued interest and penalties totaling $499 as a reduction of Deferred Tax Assets on the Consolidated Balance Sheet, of which $94 represents interest and penalties. Other Tax Items The Company conducts business globally and as a result, files income tax returns in the United States and in various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as the United States, Australia, Canada, Germany, Netherlands and United Kingdom. The years subject to income tax examination in the Company’s foreign jurisdictions cover the maximum time period with respect to these jurisdictions. Due to net operating loss ("NOL") carryforwards, in some cases the tax years continue to remain subject to examination with respect to such NOLs. As of September 30, 2016, none of the Company's major legal entities are under audit by a related tax jurisdiction. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements as of September 30, 2016 and for the three and six months ended September 30, 2016 and 2015 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2016 . The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. |
Use of Estimates | The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, allowance for doubtful accounts, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates. |
Recently Issued Accounting Standards | Revenue Recognition In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" (ASU 2014-09) and has since modified the standard with ASU 2015-14, "Deferral of the Effective Date." These standards replace existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. The new standard becomes effective for the Company's fiscal 2019 with early adoption permitted in fiscal 2018. The Company is in the process of determining the impact of the standard on the financial statements and the timing of adoption. The FASB allows two adoption methods under the new standard. Under one method, a company will apply the rules to contracts in all reporting periods presented. The Company currently believes it will apply this method of adoption. Leases In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-02, a lessee will recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The amendments of this ASU are effective for the Company's fiscal 2020, with early adoption permitted. A company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on the financial statements. Stock-based Compensation In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company is required to adopt the new guidance in fiscal 2018 with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2016-09 will have on the financial statements. There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Revenue Recognition | The Company derives revenues from two primary sources: software licenses and services. Services include customer support, consulting, assessment and design services, installation services and training. A typical sales arrangement includes both licenses and services. For sales arrangements involving multiple elements, the Company recognizes revenue using the residual method. Under the residual method, the Company allocates and defers revenue for the undelivered elements based on fair value and recognizes the difference between the total arrangement fee and the amount deferred for the undelivered elements as revenue. The determination of fair value of the undelivered elements in multiple-element arrangements is based on the price charged when such elements are sold separately, which is commonly referred to as vendor-specific objective-evidence, or VSOE. The Company’s software licenses typically provide for a perpetual right to use the Company’s software and are sold on a per-terabyte basis, on a per-copy basis, as site licenses or as a solution set. Software licenses sold on a capacity basis provide the customer with unlimited licenses of specified software products based on a defined level of terabytes of data under management. Site licenses give the customer the additional right to deploy the software on a limited basis during a specified term. Solution sets are generally sold on a per unit basis such as per virtual machine for our virtual machine backup, recovery and cloud management solution set; per mailbox for our email archive solution set and per user for our endpoint data protection solution set. The Company recognizes software revenue through direct sales channels upon receipt of a purchase order or other persuasive evidence and when all other basic revenue recognition criteria are met as described below. The Company recognizes software revenue through all indirect sales channels on a sell-through model. A sell-through model requires that the Company recognize revenue when the basic revenue recognition criteria are met as described below and these channels complete the sale of the Company’s software products to the end-user. Revenue from software licenses sold through an original equipment manufacturer partner is recognized upon the receipt of a royalty report or purchase order from that original equipment manufacturer partner. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. To determine the price for the customer support element when sold separately, the Company primarily uses historical renewal rates. Historical renewal rates are supported by performing an analysis in which the Company segregates its customer support renewal contracts into different classes based on specific criteria including, but not limited to, the dollar amount of the software purchased, the level of customer support being provided and the distribution channel. As a result of this analysis, the Company has concluded that it has established VSOE for the different classes of customer support when the support is sold as part of a multiple-element sales arrangement. The Company’s determination of fair value for customer support has not changed for the periods presented. The Company’s other professional services include consulting services, implementation and post-deployment services and education services. Other professional services provided by the Company are not mandatory and can also be performed by the customer or a third-party. In addition to a signed purchase order, the Company’s consulting services and implementation and post-deployment services are, in some cases, evidenced by a Statement of Work, which defines the specific scope of such services to be performed when sold and performed on a stand-alone basis or included in multiple-element sales arrangements. Revenues from consulting services and implementation and post-deployment services are based upon a daily or weekly rate and are recognized when the services are completed. Education services include courses taught by the Company’s instructors or third-party contractors either at one of the Company’s facilities or at the customer’s site. Education services fees are recognized as revenue after the course has been provided. Based on the Company’s analysis of such other professional services transactions sold on a stand-alone basis, the Company has concluded it has established VSOE for such other professional services when sold in connection with a multiple-element sales arrangement. The Company generally performs its other professional services within 90 days of entering into an agreement. The Company’s determination of fair value for other professional services has not changed for the periods presented. The Company has analyzed all of the undelivered elements included in its multiple-element sales arrangements and determined that VSOE of fair value exists to allocate revenues to services. Accordingly, assuming all basic revenue recognition criteria are met, software revenue is recognized upon delivery of the software license using the residual method. The Company considers the four basic revenue recognition criteria for each of the elements as follows: • Persuasive evidence of an arrangement with the customer exists. The Company’s customary practice is to require a purchase order and, in some cases, a written contract signed by both the customer and the Company, or other persuasive evidence that an arrangement exists prior to recognizing revenue related to an arrangement. • Delivery or performance has occurred. The Company’s software applications are either physically or electronically delivered to customers with standard transfer terms such as FOB shipping point. Software and/or software license keys for add-on orders or software updates are typically delivered in an electronic format. If products that are essential to the functionality of the delivered software in an arrangement have not been delivered, the Company does not consider delivery to have occurred. Services revenue is recognized when the services are completed, except for customer support, which is recognized ratably over the term of the customer support agreement, which is typically one year. • Vendor’s fee is fixed or determinable. The fee customers pay for software applications, customer support and other professional services is negotiated at the outset of a sales arrangement. The fees are therefore considered to be fixed or determinable at the inception of the arrangement. The Company evaluates instances when extended payment terms are granted to determine if revenue should be deferred until payment becomes due. • Collection is probable. Probability of collection is assessed on a customer-by-customer basis. Each new customer undergoes a credit review process to evaluate its financial position and ability to pay. If the Company determines from the outset of an arrangement that collection is not probable based upon the review process, revenue is recognized at the earlier of when cash is collected or when sufficient credit becomes available, assuming all of the other basic revenue recognition criteria are met. The Company’s sales arrangements generally do not include acceptance clauses. However, if an arrangement does include an acceptance clause, revenue for such an arrangement is deferred and recognized upon acceptance. Acceptance occurs upon the earliest of receipt of a written customer acceptance, waiver of customer acceptance or expiration of the acceptance period. |
Deferred Revenue | Deferred revenues represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from the billing of annual customer support agreements, and billings for other professional services fees that have not yet been performed by the Company and receipt of license fees that are deferred due to one or more of the revenue recognition criteria not being met. The value of deferred revenues will increase or decrease based on the timing of invoices and recognition of revenue. The Company expenses internal direct and incremental costs related to contract acquisition and origination as incurred. |
Concentration of Credit Risk | The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal. |
Fair Value of Financial Instruments | The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for such asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Deferred Revenue | Deferred revenue consists of the following: September 30, March 31, Current: Deferred software revenue $ 3,335 $ 1,578 Deferred services revenue 189,847 193,399 $ 193,182 $ 194,977 Non-current: Deferred services revenue $ 59,243 $ 49,889 Total Deferred Revenue $ 252,425 $ 244,866 |
Financial Assets Measured at Fair Value | The following table summarizes the composition of the Company’s financial assets measured at fair value at September 30, 2016 and March 31, 2016 : September 30, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 70,661 — — $ 70,661 Short-term investments $ — 118,201 — $ 118,201 March 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 95,735 — — $ 95,735 Short-term investments $ — 99,215 — $ 99,215 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: September 30, March 31, 2016 2016 Land $ 9,445 $ 9,445 Buildings 103,244 103,193 Computers, servers and other equipment 33,866 33,120 Furniture and fixtures 14,696 14,458 Leasehold improvements 6,934 6,948 Purchased software 1,342 1,279 Construction in process 260 165 169,787 168,608 Less: Accumulated depreciation and amortization (36,736 ) (32,704 ) $ 133,051 $ 135,904 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development and General and administrative expenses for the three and six months ended September 30, 2016 and 2015 . Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan. Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Cost of services revenue $ 964 $ 719 $ 1,835 $ 1,388 Sales and marketing 8,290 6,440 15,961 13,040 Research and development 1,770 1,531 3,448 3,075 General and administrative 7,679 6,378 14,799 12,786 Stock-based compensation expense $ 18,703 $ 15,068 $ 36,043 $ 30,289 |
Schedule of Stock Option Activity | Stock Option activity for the six months ended September 30, 2016 is as follows: Options Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of March 31, 2016 5,939 $ 44.07 Options granted — — Options exercised (238 ) 30.61 Options forfeited (56 ) 52.39 Options expired (94 ) 69.73 Outstanding as of September 30, 2016 5,551 $ 44.13 5.24 $ 84,785 Vested or expected to vest as of September 30, 2016 5,518 $ 44.09 5.22 $ 84,558 Exercisable as of September 30, 2016 4,632 $ 41.64 4.73 $ 79,723 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the six months ended September 30, 2016 is as follows: Non-vested Restricted Stock Units Number of Weighted Non-vested as of March 31, 2016 2,212 $ 43.43 Awarded 598 47.76 Vested (270 ) 45.67 Forfeited (100 ) 43.15 Non-vested as of September 30, 2016 2,440 $ 42.74 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Balance as of March 31, 2016 $ 1,952 Additions for tax positions related to fiscal 2017 115 Additions for tax positions related to prior years — Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations — Foreign currency translation adjustment — Balance as of September 30, 2016 $ 2,067 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Revenue Recognition (Detail) | 6 Months Ended |
Sep. 30, 2016revenue_source | |
Accounting Policies [Abstract] | |
Sources of primary revenue | 2 |
Customer support agreement term | 1 year |
Number of days for other professional services | 90 days |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Deferred Revenue (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Current: | ||
Deferred revenue, current | $ 193,182 | $ 194,977 |
Non-current: | ||
Deferred revenue, non-current | 59,243 | 49,889 |
Total Deferred Revenue | 252,425 | 244,866 |
Deferred software revenue | ||
Current: | ||
Deferred revenue, current | 3,335 | 1,578 |
Deferred services revenue | ||
Current: | ||
Deferred revenue, current | 189,847 | 193,399 |
Non-current: | ||
Deferred revenue, non-current | $ 59,243 | $ 49,889 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Arrow | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 35.00% | 37.00% | |
Arrow | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 38.00% | 43.00% | |
Avnet | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Avnet | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 70,661 | $ 95,735 |
Short-term investments | 118,201 | 99,215 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 70,661 | 95,735 |
Short-term investments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 118,201 | 99,215 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | $ 0 | $ 0 |
Property and Equipment - Sched
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 169,787 | $ 168,608 |
Less: Accumulated depreciation and amortization | (36,736) | (32,704) |
Property and equipment, net | 133,051 | 135,904 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,445 | 9,445 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 103,244 | 103,193 |
Computers, servers and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 33,866 | 33,120 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,696 | 14,458 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,934 | 6,948 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,342 | 1,279 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 260 | $ 165 |
Property and Equipment - Addit
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 4,878 | $ 5,590 |
Net Loss per Common Share - Ad
Net Loss per Common Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation (in shares) | 8,381 | 7,850 | 8,374 | 8,012 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Revolving credit facility - USD ($) | Jun. 30, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Line of Credit Facility [Line Items] | |||||
Debt term | 5 years | ||||
Borrowing capacity | $ 250,000,000 | ||||
Unused capacity, commitment fee percentage | 0.25% | ||||
Borrowings under the Credit Facility | $ 0 | $ 0 | |||
Unamortized debt issuance costs | 694,000 | 694,000 | |||
Amortization of debt issuance costs | $ 63,000 | $ 63,000 | $ 126,000 | $ 126,000 | |
LIBOR rate | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 1.50% |
Capitalization (Detail)
Capitalization (Detail) - Common stock repurchase program | 6 Months Ended |
Sep. 30, 2016USD ($) | |
Class of Stock [Line Items] | |
Repurchase of common stock | $ 0 |
Remaining value of common stock to be repurchased under share repurchase program | $ 93,102,000 |
Stock Plans - Additional Infor
Stock Plans - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2016 | Aug. 16, 2016 | |
Stock options and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 96,050 | |
Weighted average period awards are expected to be recognized | 1 year 9 months 14 days | |
2016 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares of common stock that may be delivered under plan (in shares) | 2,800,000 |
Stock Plans - Stock-Based Comp
Stock Plans - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 18,703 | $ 15,068 | $ 36,043 | $ 30,289 |
Cost of services revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 964 | 719 | 1,835 | 1,388 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 8,290 | 6,440 | 15,961 | 13,040 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 1,770 | 1,531 | 3,448 | 3,075 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 7,679 | $ 6,378 | $ 14,799 | $ 12,786 |
Stock Plans - Activity for Com
Stock Plans - Activity for Company's Two Stock Incentive Plans (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Number of Options | |
Outstanding (in shares) as of March 31, 2016 | shares | 5,939 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | (238) |
Options forfeited (in shares) | shares | (56) |
Options expired (in shares) | shares | (94) |
Outstanding (in shares) as of September 30, 2016 | shares | 5,551 |
Vested or expected to vest (in shares) as of September 30, 2016 | shares | 5,518 |
Exercisable (in shares) as of September 30, 2016 | shares | 4,632 |
Weighted- Average Exercise Price | |
Outstanding (in dollars per share) as of March 31, 2016 | $ / shares | $ 44.07 |
Options granted (in dollars per share) | $ / shares | 0 |
Options exercised (in dollars per share) | $ / shares | 30.61 |
Options forfeited (in dollars per share) | $ / shares | 52.39 |
Options expired (in dollars per share) | $ / shares | 69.73 |
Outstanding (in dollars per share) as of September 30, 2016 | $ / shares | 44.13 |
Vested or expected to vest (in dollars per share) as of September 30, 2016 | $ / shares | 44.09 |
Exercisable (in dollars per share) as of September 30, 2016 | $ / shares | $ 41.64 |
Weighted- Average Remaining Contractual Term (Years) | |
Outstanding (in years) as of September 30, 2016 | 5 years 2 months 26 days |
Vested or expected to vest (in years) as of September 30, 2016 | 5 years 2 months 19 days |
Exercisable (in years) as of September 30, 2016 | 4 years 8 months 23 days |
Aggregate Intrinsic Value | |
Outstanding as of September 30, 2016 | $ | $ 84,785 |
Vested or expected to vest as of September 30, 2016 | $ | 84,558 |
Exercisable as of September 30, 2016 | $ | $ 79,723 |
Stock Plans - Stock Options (D
Stock Plans - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Weighted average fair value of stock options granted per share (in dollars per share) | $ 13.75 | $ 15.47 | ||
Total intrinsic value of options exercised | $ 3,070 | $ 13,650 | $ 4,439 | $ 19,974 |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Unit Activity (Detail) - Restricted stock units - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Number of Awards | ||||
Non-vested (in shares) as of March 31, 2016 | 2,212 | |||
Awarded (in shares) | 598 | |||
Vested (in shares) | (270) | |||
Forfeited (in shares) | (100) | |||
Non-vested (in shares) as of September 30, 2016 | 2,440 | 2,440 | ||
Weighted Average Grant Date Fair Value | ||||
Non-vested (in dollars per share) as of March 31, 2016 | $ 43.43 | |||
Awarded (in dollars per share) | $ 52.13 | $ 39.58 | 47.76 | $ 41.41 |
Vested (in dollars per share) | 45.67 | |||
Forfeited (in dollars per share) | 43.15 | |||
Non-vested (in dollars per share) as of September 30, 2016 | $ 42.74 | $ 42.74 |
Stock Plans - Restricted Sto36
Stock Plans - Restricted Stock Units (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value, units awarded (in dollars per share) | $ 52.13 | $ 39.58 | $ 47.76 | $ 41.41 |
Stock Plans - Performance-base
Stock Plans - Performance-based and Market-based Awards (Details) shares in Thousands | 1 Months Ended | 6 Months Ended |
May 31, 2016trancheshares | Sep. 30, 2016tranche$ / sharesshares | |
Performance stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awarded (in shares) | 115 | |
Number of annual tranches | tranche | 3 | |
Maximum potential to vest (as a percentage) | 200.00% | |
Maximum potential to vest (in shares) | 230 | |
Performance restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awarded (in shares) | 123 | |
Number of annual tranches | tranche | 3 | |
Maximum potential to vest (as a percentage) | 200.00% | |
Maximum potential to vest (in shares) | 246 | |
Service period | 3 years | |
Weighted average fair value, units awarded (in dollars per share) | $ / shares | $ 57.28 |
Stock Plans - Employee Stock P
Stock Plans - Employee Stock Purchase Plan (Details) - Purchase plan - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock purchase price (as a percentage) | 85.00% | |||
Offering period | 6 months | |||
Maximum employee subscription rate (as a percentage) | 10.00% | 10.00% | ||
Maximum annual purchases per employee | $ 25,000 | |||
Number of shares reserved for future issuance (in shares) | 2,503 | 2,503 | ||
Compensation expense | $ 655,000 | $ 520,000 | $ 1,334,000 | $ 1,196,000 |
Income Taxes - Additional Info
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ (322) | $ 4,647 | $ (903) | $ (351) | |
Income tax reconciliation, change in enacted tax rate | 616 | ||||
Reconciliation Of Unrecognized Tax Benefits [Line Items] | |||||
Unrecognized tax benefits | 2,067 | 2,067 | $ 1,952 | ||
Other liabilities | |||||
Reconciliation Of Unrecognized Tax Benefits [Line Items] | |||||
Unrecognized tax benefits | 1,892 | 1,892 | |||
Unrecognized tax benefits accrued interest and penalties | 230 | 230 | |||
Deferred tax assets | |||||
Reconciliation Of Unrecognized Tax Benefits [Line Items] | |||||
Unrecognized tax benefits | 499 | 499 | |||
Unrecognized tax benefits accrued interest and penalties | $ 94 | $ 94 |
Income Taxes - Reconciliation
Income Taxes - Reconciliation of Amounts of Unrecognized Tax Benefits (Detail) $ in Thousands | 6 Months Ended |
Sep. 30, 2016USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance as of March 31, 2016 | $ 1,952 |
Additions for tax positions related to fiscal 2017 | 115 |
Additions for tax positions related to prior years | 0 |
Settlements and effective settlements with tax authorities and remeasurements | 0 |
Reductions related to the expiration of statutes of limitations | 0 |
Foreign currency translation adjustment | 0 |
Balance as of September 30, 2016 | $ 2,067 |