Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2017 | Apr. 27, 2017 | Sep. 30, 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-K | ||
Document Period End Date | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 44,947,327 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 329,491 | $ 288,107 |
Short-term investments | 120,693 | 99,072 |
Trade accounts receivable, less allowance for doubtful accounts of $103 and $315 at March 31, 2017 and 2016, respectively | 132,761 | 113,429 |
Prepaid expenses and other current assets | 15,791 | 16,769 |
Total current assets | 598,736 | 517,377 |
Deferred tax assets, net | 61,018 | 49,976 |
Property and equipment, net | 132,319 | 135,904 |
Equity method investment | 3,621 | 4,579 |
Other assets | 7,273 | 6,737 |
Total assets | 802,967 | 714,573 |
Current Liabilities: | ||
Accounts payable | 117 | 309 |
Accrued liabilities | 78,701 | 69,678 |
Deferred revenue | 206,777 | 194,977 |
Total current liabilities | 285,595 | 264,964 |
Deferred revenue, less current portion | 70,803 | 49,889 |
Other liabilities | 3,934 | 3,452 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding at March 31, 2017 and 2016 | 0 | 0 |
Common stock, $0.01 par value, 250,000 shares authorized, 44,816 shares and 44,134 shares issued and outstanding at March 31, 2017 and 2016, respectively | 447 | 440 |
Additional paid-in capital | 694,477 | 602,999 |
Accumulated deficit | (239,974) | (197,962) |
Accumulated other comprehensive loss | (12,315) | (9,209) |
Total stockholders’ equity | 442,635 | 396,268 |
Total liabilities and stockholders’ equity | $ 802,967 | $ 714,573 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful trade accounts receivable | $ 103 | $ 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) | 44,816,000 | 44,134,000 |
Common stock, shares outstanding (in shares) | 44,816,000 | 44,134,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | |||
Software | $ 296,421 | $ 258,793 | $ 283,254 |
Services | 354,097 | 336,333 | 324,289 |
Total revenues | 650,518 | 595,126 | 607,543 |
Cost of revenues: | |||
Software | 3,045 | 2,385 | 2,442 |
Services | 82,147 | 80,327 | 79,626 |
Total cost of revenues | 85,192 | 82,712 | 82,068 |
Gross margin | 565,326 | 512,414 | 525,475 |
Operating expenses: | |||
Sales and marketing | 387,975 | 352,669 | 335,980 |
Research and development | 83,543 | 69,287 | 64,143 |
General and administrative | 84,944 | 78,848 | 78,063 |
Depreciation and amortization | 8,635 | 9,611 | 8,505 |
Total operating expenses | 565,097 | 510,415 | 486,691 |
Income (loss) from operations | 229 | 1,999 | 38,784 |
Interest expense | (957) | (933) | (665) |
Interest income | 1,163 | 862 | 773 |
Equity in loss of affiliate | (958) | (83) | 0 |
Income (loss) before income taxes | (523) | 1,845 | 38,892 |
Income tax expense (benefit) | (1,063) | 1,709 | 13,242 |
Net income (loss) | $ 540 | $ 136 | $ 25,650 |
Net income per common share: | |||
Basic (in dollars per share) | $ 0.01 | $ 0 | $ 0.56 |
Diluted (in dollars per share) | $ 0.01 | $ 0 | $ 0.54 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 44,700 | 45,159 | 45,464 |
Diluted (in shares) | 46,621 | 46,489 | 47,222 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 540 | $ 136 | $ 25,650 |
Other comprehensive loss: | |||
Foreign currency translation adjustment | (3,106) | (1,705) | (6,587) |
Comprehensive income (loss) | $ (2,566) | $ (1,569) | $ 19,063 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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, 2014 | 47,094 | ||||
Beginning Balance at Mar. 31, 2014 | $ 462,578 | $ 471 | $ 481,083 | $ (18,059) | $ (917) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 60,663 | 60,663 | |||
Tax benefits relating to share-based payments | 2,141 | 2,141 | |||
Share issuances related to stock-based compensation (in shares) | 1,199 | ||||
Share issuances related to stock-based compensation | 17,690 | $ 12 | 17,678 | ||
Repurchase of common stock (in shares) | (3,171) | ||||
Repurchase of common stock | (155,125) | $ (32) | (22,000) | (133,093) | |
Net income | 25,650 | 25,650 | |||
Other comprehensive loss | (6,587) | (6,587) | |||
Ending Balance (in shares) at Mar. 31, 2015 | 45,122 | ||||
Ending Balance at Mar. 31, 2015 | 407,010 | $ 451 | 539,565 | (125,502) | (7,504) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 64,196 | 64,196 | |||
Tax benefits relating to share-based payments | 3,265 | 3,265 | |||
Share issuances related to stock-based compensation (in shares) | 1,575 | ||||
Share issuances related to stock-based compensation | 14,843 | $ 15 | 14,828 | ||
Repurchase of common stock (in shares) | (2,563) | ||||
Repurchase of common stock | (91,477) | $ (26) | (18,855) | (72,596) | |
Net income | 136 | 136 | |||
Other comprehensive loss | (1,705) | (1,705) | |||
Ending Balance (in shares) at Mar. 31, 2016 | 44,134 | ||||
Ending Balance at Mar. 31, 2016 | 396,268 | $ 440 | 602,999 | (197,962) | (9,209) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 73,928 | 73,928 | |||
Tax benefits relating to share-based payments | 3,682 | 3,682 | |||
Share issuances related to stock-based compensation (in shares) | 1,664 | ||||
Share issuances related to stock-based compensation | 21,321 | $ 17 | 21,304 | ||
Repurchase of common stock (in shares) | (982) | ||||
Repurchase of common stock | (49,998) | $ (10) | (7,436) | (42,552) | |
Net income | 540 | 540 | |||
Other comprehensive loss | (3,106) | (3,106) | |||
Ending Balance (in shares) at Mar. 31, 2017 | 44,816 | ||||
Ending Balance at Mar. 31, 2017 | $ 442,635 | $ 447 | $ 694,477 | $ (239,974) | $ (12,315) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 540 | $ 136 | $ 25,650 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 10,232 | 11,179 | 9,046 |
Noncash stock-based compensation | 73,928 | 64,196 | 60,663 |
Excess tax benefits from stock-based compensation | (6,242) | (6,664) | (5,057) |
Deferred income taxes | (11,045) | (9,332) | 4,072 |
Equity in loss of affiliate | 958 | 83 | 0 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (21,493) | 3,879 | (6,581) |
Other current assets and Other assets | (55) | 2,843 | (10,678) |
Accounts payable | (190) | (454) | (267) |
Accrued liabilities | 15,088 | 1,972 | 13,221 |
Deferred revenue | 37,988 | 16,317 | 35,818 |
Other liabilities | 330 | 258 | (2,040) |
Net cash provided by operating activities | 100,039 | 84,413 | 123,847 |
Cash flows from investing activities | |||
Purchase of short-term investments | (96,306) | (99,071) | (68,933) |
Proceeds from maturity of short-term investments | 74,685 | 49,935 | 43,973 |
Purchase of equity method investment | 0 | (4,662) | 0 |
Purchases for corporate campus headquarters | 0 | (2,111) | (59,297) |
Purchase of property and equipment | (6,424) | (6,280) | (5,784) |
Net cash used in investing activities | (28,045) | (62,189) | (90,041) |
Cash flows from financing activities | |||
Repurchase of common stock | (49,998) | (91,477) | (155,125) |
Debt issuance costs | 0 | 0 | (1,262) |
Proceeds from stock-based compensation plans | 21,321 | 14,843 | 17,690 |
Excess tax benefits from stock-based compensation | 6,242 | 6,664 | 5,057 |
Net cash used in financing activities | (22,435) | (69,970) | (133,640) |
Effects of exchange rate — changes in cash | (8,175) | (1,820) | (20,226) |
Net increase (decrease) in cash and cash equivalents | 41,384 | (49,566) | (120,060) |
Cash and cash equivalents at beginning of year | 288,107 | 337,673 | 457,733 |
Cash and cash equivalents at end of year | 329,491 | 288,107 | 337,673 |
Supplemental disclosures of cash flow information | |||
Interest paid | 680 | 635 | 475 |
Income taxes paid, net | 5,413 | 1,989 | 15,590 |
Purchases for corporate campus headquarters in accounts payable and accrued liabilities | $ 0 | $ 0 | $ 2,111 |
Nature of Business
Nature of Business | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. 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. 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. Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares during the period. Diluted net income 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 following table sets forth the computation of basic and diluted net income per common share: Year Ended March 31, 2017 2016 2015 Net income $ 540 $ 136 $ 25,650 Basic net income per common share: Basic weighted average shares outstanding 44,700 45,159 45,464 Basic net income per common share $ 0.01 $ 0.00 $ 0.56 Diluted net income per common share: Basic weighted average shares outstanding 44,700 45,159 45,464 Dilutive effect of stock options, restricted stock units, and employee stock purchase plan 1,921 1,330 1,758 Diluted weighted average shares outstanding 46,621 46,489 47,222 Diluted net income per common share $ 0.01 $ 0.00 $ 0.54 The following table summarizes the potential outstanding common stock equivalents of the Company at the end of each period, which have been excluded from the computation of diluted net income per common share, as its effect is anti-dilutive. Year Ended March 31, 2017 2016 2015 Stock options, restricted stock units, and shares under the employee stock purchase plan 2,492 4,183 3,136 Software Development Costs Research and development expenditures are charged to operations as incurred. Based on the Company’s software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release are immaterial. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of amounts due to the Company from normal business activities. The Company maintains an allowance for estimated losses resulting from the inability of its customers to make required payments. The Company estimates uncollectible amounts based upon historical bad debts, evaluation of current customer receivable balances, age of customer receivable balances, the customer’s financial condition and current economic trends. Accounting for Income Taxes As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves estimating actual current tax exposure, including assessing the risks associated with tax audits, and assessing temporary differences resulting from different treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities. As of March 31, 2017 , the Company had net deferred tax assets of approximately $61,018 , which were primarily related to stock-based compensation, deferred revenue, and tax credits. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income, and to the extent that the Company believes recovery is not likely, the Company establishes a valuation allowance. As of March 31, 2017 , the Company maintains a valuation allowance related to its deferred tax assets totaling $1,796 primarily related to the uncertainty of the Company’s ability to utilize New Jersey state research tax credits before expiration. The Company based its valuation allowance on its estimates of taxable income and the period over which its state research tax credits will be recoverable. 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. The Company applies the guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of March 31, 2017 , the Company had unrecognized tax benefits of $2,098 , all of which, if recognized, would favorably affect the effective tax rate. In addition, the Company had accrued interest and penalties of $400 related to the unrecognized tax benefits. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. Components of the reserve are classified as either current or long-term in the Consolidated Balance Sheet based on when we expect each of the items to be settled. However, unrecognized tax benefits which are related to a Deferred Tax Asset recorded in the Consolidated Balance Sheet are presented as a reduction against the related Deferred Tax Asset. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with maturities of three months or less at the date of purchase to be cash equivalents. As of March 31, 2017 , the Company’s cash and cash equivalents balance consisted primarily of money market funds. Short-term Investments Short-term investments consist of investments with maturities of twelve months or less that do not meet the criteria to be cash equivalents. The company determines classification of the investment as trading, available-for-sale or held-to-maturity at the time of purchase and reevaluates classification whenever changes in circumstances indicate changes in classification may be necessary. The Company’s current short-term investments are classified as held-to-maturity. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. Held-to-maturity investments are initially recorded at cost and adjusted for the amortization of discounts from the date of purchase through maturity. Income related to investments is recorded as interest income in the Consolidated Statement of Income. Cash inflows and outflows related to the sale, maturity and purchase of investments are classified as investing activities in the Company’s Consolidated Statements of Cash Flows. 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 approximately 36% , 38% and 36% of total revenues for the years ended March 31, 2017 , 2016 and 2015 , respectively. Arrow accounted for approximately 40% and 43% of total accounts receivable as of March 31, 2017 and 2016 , respectively. Sales through the Company’s distribution agreement with Avnet Technology Solutions ("Avnet") totaled 10% of total revenues for the year ended March 31, 2017 . Avnet accounted for approximately 12% of total accounts receivable as of March 31, 2017 . 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. As of March 31, 2017 and 2016 , the Company’s short-term investments balance consisted of U.S. Treasury Bills. 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 on a recurring basis at March 31, 2017 and March 31, 2016 : March 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 70,190 — — $ 70,190 Short-term investments — $ 120,989 — $ 120,989 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 are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. The Company provides for depreciation on a straight-line basis over the estimated useful lives of the assets. The depreciable assets that comprise the Company's owned headquarters classified as Buildings are being depreciated over lives ranging from ten to sixty years. Computer and related equipment is generally depreciated over eighteen months to three years and furniture and fixtures are generally depreciated over three to twelve years . Leasehold improvements are amortized over the shorter of the useful life of the improvement or the term of the related lease. Expenditures for routine maintenance and repairs are charged against operations. Major replacements, improvements and additions are capitalized. Asset Retirement Obligation A liability for the fair value of an asset retirement obligation and corresponding increase to the carrying value of the related leasehold improvements are recorded at the time leasehold improvements are acquired. The Company maintains certain office space for which the lease agreement requires that the Company return the office space to its original condition upon vacating the premises. Accordingly, the balance of the asset retirement obligation was $1,204 as of March 31, 2017 and $1,071 as of March 31, 2016 . Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine the recoverability of its long-lived assets, the Company evaluates the estimated future undiscounted cash flows that are directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the long-lived asset. If the estimated future undiscounted cash flows demonstrate that recoverability is not probable, an impairment loss would be recognized. An impairment loss would be calculated based on the excess carrying amount of the long-lived asset over the long-lived asset’s fair value. The fair value would be determined based on valuation techniques such as a comparison to fair values of similar assets. There were no impairment charges recognized during the years ended March 31, 2017 , 2016 and 2015 . Equity Method Investment In fiscal 2016, the Company acquired a 34% ownership in Laitek, Inc. ("Laitek"). The Company also has an option to acquire the remaining ownership of Laitek at a fixed price until December 2017. Laitek develops solutions for acquiring, processing and presenting scientific and medical image information. The Company uses the equity method to account for its investment. In the event that management identifies an other than temporary decline in the estimated fair value of an equity method investment to an amount below its carrying value, such investment is written down to its estimated fair value. The Company also has development and original equipment manufacturing agreements with Laitek to jointly develop healthcare related software products. Certain employees of Laitek were also provided restricted stock units in exchange for consultative services provided to the Company. The awards are included in the information in Note 8. 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: March 31, 2017 2016 Current: Deferred software revenue $ 2,793 $ 1,578 Deferred services revenue 203,984 193,399 206,777 194,977 Non-current: Deferred services revenue 70,803 49,889 Total Deferred Revenue $ 277,580 $ 244,866 Accounting for Stock-Based Compensation The Company utilizes the Black-Scholes pricing model to determine the fair value of non-qualified stock options on the dates of grant. Restricted stock units without a market condition are measured based on the fair market values of the underlying stock on the date of grant. The Company recognizes stock-based compensation using the straight-line method for all stock awards that don't include a market or performance condition. The Company has granted certain executive officers and other senior employees performance stock units that vest over three years based upon the Company's stock performance versus the Russell 3000 Index. The performance of the stock versus the index is a market condition performance criteria so the Company used a Monte Carlo simulation model to determine the fair value of the restricted stock units. Expense related to stock based compensation that includes market or performance conditions is recognized using the accelerated method. Share Repurchases The Company considers all shares repurchased as canceled shares restored to the status of authorized but unissued shares on the trade date. The aggregate purchase price of the shares of the Company’s common stock repurchased is reflected as a reduction to Stockholders’ Equity. The Company accounts for shares repurchased as an adjustment to common stock (at par value) with the excess repurchase price allocated between Additional Paid-in Capital and Accumulated Deficit. Sales Tax The Company records revenue net of sales tax. Advertising Costs The Company expenses advertising costs as incurred. Advertising expenses were $7,816 , $5,083 , and $5,401 for the years ended March 31, 2017 , 2016 and 2015 , respectively. Shipping and Handling Costs Shipping and handling costs are included in cost of revenues for all periods presented. Foreign Currency Translation The functional currencies of the Company’s foreign operations are deemed to be the local country’s currency. Assets and liabilities of the Company’s international subsidiaries are translated at their respective period-end exchange rates, and revenues and expenses are translated at average currency exchange rates for the period. The resulting balance sheet translation adjustments are included in Other Comprehensive Loss and are reflected as a separate component of Stockholders’ Equity. Foreign currency transaction gains and losses are recorded in “General and administrative expenses” in the Consolidated Statements of Income. The Company recognized net foreign currency transaction gains of $644 , $195 and $127 in the years ended March 31, 2017 , 2016, and 2015, respectively. The net foreign currency transaction gains recorded in “General and administrative expenses” include settlement gains and losses on forward contracts disclosed below. To date, the Company has selectively hedged its exposure to foreign currency transaction gains and losses on the balance sheet through the use of forward contracts, which were not designated as hedging instruments. The duration of forward contracts utilized for hedging the Company’s balance sheet exposure is generally one month to three months . As of March 31, 2017 and March 31, 2016 , the Company did not have any forward contracts outstanding. The Company recorded net realized gains in general and administrative expenses of $15 in fiscal 2017 , losses of $53 in fiscal 2016 and gains of $33 in fiscal 2015 related to the settlement of a forward exchange contracts. In the future, the Company may enter into additional foreign currency-based hedging contracts to reduce its exposure to significant fluctuations in currency exchange rates on the balance sheet. Comprehensive Income (Loss) Comprehensive income (loss) is defined to include all changes in equity, except those resulting from investments by stockholders and distribution to stockholders. Recently Issued Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This standard replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. The ASU also includes guidance regarding the accounting for contract acquisition costs, which includes sales commissions. The Company has early adopted the new standard as of April 1, 2017 using the full retrospective method which will require each prior reporting period presented to be recast in future issuances of the Company’s financial statements. Over the last two years the Company has worked to assess all potential impacts of the new standard and prepare for adoption. As part of this process the Company closely monitored FASB activity, as well as working with non-authoritative groups to conclude on specific interpretative issues. As part of the adoption process, findings and progress of the project were regularly reported to senior management and the Audit Committee. The most significant impacts of the new standard upon adoption relate to the accounting for commissions costs and the timing of revenue recognition of certain perpetual software license arrangements. Specifically, under the new standard: • A portion of sales commissions cost will be recorded as an asset and recognized as an operating expense over the time period that the Company expects to recover the costs. Currently, the Company expenses commissions cost as incurred. • The software revenue associated with certain sales of perpetual licenses is recognized sooner due to the updated revenue recognition guidance which amended certain policies previously adopted by the Company. These policies related primarily to the requirement to obtain certain documentation from an end user in an indirect transaction, the elimination of the requirement to establish vendor specific objective evidence of fair value in a multiple element arrangement, and the previous practice of recognizing revenue on a cash basis in certain geographies. Select recast unaudited financial statement information, which reflect the adoption of the ASU is below. The Company’s historical net cash flows are not impacted by this accounting change. Year Ended March 31, 2016 Unaudited As Reported Adjustments Recast for Adoption of ASC 606 Revenues: Software $ 258,793 $ (702 ) $ 258,091 Services 336,333 (657 ) 335,676 Total revenues 595,126 (1,359 ) 593,767 Total cost of revenues 82,712 — 82,712 Gross margin 512,414 (1,359 ) 511,055 Total operating expenses 510,415 (3,470 ) 506,945 Income from operations 1,999 2,111 4,110 Interest expense (933 ) — (933 ) Interest income 862 — 862 Equity in loss of affiliate (83 ) — (83 ) Income before income taxes 1,845 2,111 3,956 Income tax expense 1,709 527 2,236 Net income $ 136 $ 1,584 $ 1,720 Year Ended March 31, 2017 Unaudited As Reported Adjustments Recast for Adoption of ASC 606 Revenues: Software $ 296,421 $ (5,753 ) $ 290,668 Services 354,097 240 354,337 Total revenues 650,518 (5,513 ) 645,005 Total cost of revenues 85,192 — 85,192 Gross margin 565,326 (5,513 ) 559,813 Total operating expenses 565,097 (4,042 ) 561,055 Income (loss) from operations 229 (1,471 ) (1,242 ) Interest expense (957 ) — (957 ) Interest income 1,163 — 1,163 Equity in loss of affiliate (958 ) — (958 ) Loss before income taxes (523 ) (1,471 ) (1,994 ) Income tax benefit (1,063 ) (423 ) (1,486 ) Net income (loss) $ 540 $ (1,048 ) $ (508 ) March 31, 2017 Unaudited Balance Sheet Data As Reported Adjustments Recast for Adoption of ASC 606 Current assets: Trade accounts receivable $ 132,761 $ 1,789 $ 134,550 Unbilled receivables $ — $ 1,211 $ 1,211 Total current assets $ 598,736 $ 3,000 $ 601,736 Deferred commissions $ — $ 30,378 $ 30,378 Deferred tax assets, net $ 61,018 $ (10,790 ) $ 50,228 Total assets $ 802,967 $ 22,588 $ 825,555 Current Liabilities: Deferred revenue $ 206,777 $ (2,001 ) $ 204,776 Total current liabilities $ 285,595 $ (2,001 ) $ 283,594 Other liabilities $ 3,934 $ 292 $ 4,226 Accumulated deficit $ (239,974 ) $ 24,297 $ (215,677 ) Total stockholders’ equity $ 442,635 $ 24,297 $ 466,932 Total liabilities and stockholders’ equity $ 802,967 $ 22,588 $ 825,555 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 will adopt this standard in the first quarter of fiscal 2018. The Company is in the process of evaluating the transition and disclosure requirements of the standard. Statement of Cash Flows In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230), which requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for the fiscal 2019. Early adoption is permitted. The amendments will be applied using a retrospective transition method to each period presented. The Company is in the process of evaluating the transition and disclosure requirements of the standard and anticipates the adoption will not have a significant impact on the consolidated statements of cash flows. 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 ear |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: March 31, 2017 2016 Land $ 9,445 $ 9,445 Buildings 103,244 103,193 Computers, servers and other equipment 35,274 33,120 Furniture and fixtures 14,912 14,458 Leasehold improvements 7,040 6,948 Purchased software 1,335 1,279 Construction in process 1,147 165 172,397 168,608 Less: Accumulated depreciation and amortization (40,078 ) (32,704 ) $ 132,319 $ 135,904 The Company recorded depreciation and amortization expense of $9,980 , $10,927 , and $8,856 for the years ended March 31, 2017 , 2016 and 2015 , respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: March 31, 2017 2016 Compensation and related payroll taxes $ 45,149 $ 36,789 Other 33,552 32,889 $ 78,701 $ 69,678 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company leases various office facilities under non-cancelable leases, which expire on various dates through April 2022. Future minimum lease payments under all operating leases at March 31, 2017 are as follows: Year Ending March 31, 2018 $ 9,504 2019 7,588 2020 6,391 2021 5,238 2022 and thereafter 6,002 $ 34,723 Rent expenses were $10,377 , $9,856 , and $10,845 for the years ended March 31, 2017 , 2016 and 2015 , respectively. Rent expense is calculated by amortizing total rental payments (net of any rental abatements, allowances and other rental concessions), on a straight-line basis, over the lease term. Accordingly, rent expense charged to operations differs from rent paid resulting in the Company recording deferred rent. Purchase Commitments The Company, in the normal course of business, enters into various purchase commitments for goods or services. Total non-cancellable purchase commitments as of March 31, 2017 are approximately $11,051 for fiscal 2018 , $6,615 for fiscal 2019 , $3,373 for fiscal 2020 and $221 for fiscal 2021 , totaling $21,260 for all periods through fiscal 2021 . These purchase commitments relate primarily to marketing and IT services. The Company has certain software royalty commitments associated with the shipment and licensing of certain products. Royalty expense is generally based on a fixed cost per unit shipped or a fixed fee for unlimited units shipped over a designated period. Royalty expense, included in cost of software revenues, was $2,646 in fiscal 2017 , $1,933 in fiscal 2016 and $1,768 in fiscal 2015 . Warranties and Indemnifications The Company offers a 90 -day limited product warranty for its software. To date, costs related to this product warranty have not been material. The Company provides certain provisions within its software licensing agreements to indemnify its customers from any claim, suit or proceeding arising from alleged or actual intellectual property infringement. These provisions continue in perpetuity, along with the Company’s software licensing agreements. The Company has never incurred a liability relating to one of these indemnification provisions, and management believes that the likelihood of any future payout relating to these provisions is remote. Therefore, the Company has no t recorded a liability during any period for these indemnification provisions. Legal Proceedings In the normal course of its business, the Company may be involved in various claims, negotiations and legal actions. As of March 31, 2017 , 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 remains was denied by the court on September 30, 2016. Discovery has commenced in this action and is ongoing. Due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of this matter. The Company are unable at this time to determine whether the outcome of the litigation will have a material impact on our results of operations, financial condition or cash flows. As of March 31, 2017, the Company has not recorded an accrual for this matter as it has concluded the probability of a loss is remote. On April 12, 2017, a shareholder derivative complaint was filed in the United States District Court for the District of New Jersey against the Company (nominally), certain of its executive officers, and certain of its current and former members of the board of directors. The complaint is entitled Murashko v. Hammer, et al. (Civ. No. 3:17-cv-02533-PGS-TJB). The action alleges that certain of the Company’s executive officers and board members breached their fiduciary duties to the Company by causing, or allowing, the Company to manipulate its financial results and conceal the state of its business prospects. The suit also alleges that through these breaches, the Company’s executive officers and board members unjustly enriched themselves at the expense of the Company. The suit asserts factual allegations similar to the allegations made in In re Commvault Systems, Inc. Securities Litigation (Master File No. 3:14-cv-05628-PGS-LHG), a securities litigation also pending in the United States District Court for the District of New Jersey. The allegations asserted in the shareholder derivate action purport to cover a period from 2013 through the present. As a derivative action, the complaint is brought nominally on behalf of the Company, and seeks compensatory damages, restitution, costs and expenses, as well as equitable or other relief. 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 March 31, 2017, the Company has not recorded an accrual for this matter as it has concluded the probability of a loss is remote. On February 27, 2017, Realtime Data LLC d/b/a/ IXO (“Realtime”), a non-practicing entity, sued the Company and Spectra Logic Corporation in the Eastern District of Texas for alleged infringement of four patents: U.S. Patent Nos. 9,054,728, 7,415,530, 9,116,908, and 8,717,204. Realtime has sued numerous other companies for infringement of these and other patents. Realtime seeks monetary damages and an injunction. The Company has not yet answered the complaint. 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. The Company intends to defend itself vigorously. As of March 31, 2017, the Company has not recorded an accrual for this matter as it has concluded the probability of a loss is remote. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , 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 March 31, 2017 were $568 and $820 as of March 31, 2016 . The amortization of debt issuance costs was $252 for years ended March 31, 2017 and 2016. Amortization of debt issuances costs is included in Interest expense. |
Capitalization
Capitalization | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Capitalization | Capitalization As of March 31, 2017 and 2016 , the Company had 250,000 shares of common stock and 50,000 shares of preferred stock authorized. As of March 31, 2017 and 2016 there were no shares of preferred stock outstanding. On November 13, 2008, the Board of Directors of the Company adopted a Rights Plan and declared a dividend distribution of one Right for each outstanding share of common stock to shareholders of record on November 24, 2008. Each Right, when exercisable, entitles the registered holder to purchase one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share, at a purchase price of eighty dollars per one one thousandth of a share, subject to adjustment. Of the 50,000 shares of preferred stock authorized under the Company’s certificate of incorporation, 150 have been designated as Series A Junior Participating Preferred. The Rights will become exercisable following the tenth business day after (i) a person or group announces the acquisition of 15% or more of the Company’s common stock or (ii) commencement of a tender or exchange offer, the consummation of which would result in ownership by the person or group of 15% or more of the Company’s common stock. The Company is also entitled to redeem the Rights at $0.001 per right under certain circumstances. The Rights expire on November 14, 2018 , if not exercised or redeemed. Common Stock The Company had 44,816 and 44,134 shares of common stock, par value $0.01 , outstanding at March 31, 2017 and March 31, 2016 , respectively. During fiscal 2017 , the Company repurchased $49,998 of common stock, or 982 shares, under its share repurchase program. As of March 31, 2017 , $125,000 remained in the current stock repurchase authorization which expires on March 31, 2018. Shares Reserved for Issuance The Company has reserved 4,478 shares in connection with its Stock Plans discussed in Note 8 at March 31, 2017 . |
Stock Plans
Stock Plans | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Stock Plans As of March 31, 2017 , the Company maintains one stock incentive plan for purposes of granting awards, the Omnibus Incentive Plan (the “2016 Incentive Plan”). The Company has one additional plan, the 2006 Long-Term Stock Incentive Plan (the “LTIP”), with outstanding options and awards but cannot be used for future grants. The 2016 Incentive Plan permits the grant of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance stock awards and stock unit awards based on, or related to, shares of the Company’s common stock. As of March 31, 2017 , approximately 2,078 shares were available for future issuance under the 2016 Incentive Plan. As of March 31, 2017 , the Company has granted non-qualified stock options, restricted stock units and performance stock awards under its stock incentive plans. Historically, equity awards granted by the Company under its stock incentive plans generally vest quarterly over a four -year period, except that the shares that would otherwise vest quarterly over the first twelve months do not vest until the first anniversary of the grant. Beginning in October of 2015, the Company began granting its equity awards with a three -year vest period, and retained the practice that shares that would otherwise vest quarterly over the first twelve months do not vest until the first anniversary of the grant. However, from time to time the company grants equity awards that vest between one and three years. The Company anticipates that future grants under its stock incentive plans will be restricted stock units and performance stock awards and does not anticipate that it will grant stock options. As of March 31, 2017 , there was approximately $95,364 of unrecognized stock-based compensation expense related to all of the Company's employee stock plans, net of estimated forfeitures, that is expected to be recognized over a weighted average period of 1.51 years. To the extent the actual forfeiture rate is different from what the Company has anticipated, stock-based compensation related to these awards will be different from the Company’s expectations. The Company estimated the fair value of stock options granted using the Black-Scholes formula. The Company’s calculation of expected term includes a combination of actual exercise data and an assumption on when the remaining outstanding options with similar characteristics would be exercised based on the Company’s historical data. In determining expected life, the Company separates employees into groups that have historically exhibited similar behavior with regard to option exercises. Expected volatility is calculated based on a blended approach that included the implied volatility of the Company’s traded options with a remaining maturity greater than six months and the historical realized volatility of the Company’s common stock. The risk-free interest rate is determined by reference to U.S. Treasury yield curve rates with a remaining term that is approximately the expected life assumed at the date of grant. Forfeitures are estimated based on the Company’s historical analysis of actual stock option forfeitures. The assumptions used in the Black-Scholes option-pricing model are as follows: Year Ended March 31, 2016 2015 Dividend yield None None Expected volatility 39% - 43% 41% - 47% Weighted average expected volatility 41% 46% Risk-free interest rates 1.29% - 1.75% 1.22% - 2.18% Weighted average expected life (in years) 4.6 5.7 The following summarizes the activity for the Company’s stock incentive plans from March 31, 2014 to March 31, 2017 : Options Number of Weighted- Weighted- Aggregate Outstanding at March 31, 2014 6,388 $ 39.03 Options granted 1,155 46.08 Options exercised (504 ) 19.44 Options forfeited (159 ) 65.93 Options expired (27 ) 68.84 Outstanding at March 31, 2015 6,853 40.91 Options granted 148 41.84 Options exercised (764 ) 8.80 Options forfeited (172 ) 59.79 Options expired (126 ) 61.81 Outstanding at March 31, 2016 5,939 44.07 Options granted — — Options exercised (446 ) 28.44 Options forfeited (77 ) 51.55 Options expired (116 ) 68.98 Outstanding at March 31, 2017 5,300 $ 44.74 4.81 $ 70,743 Vested or expected to vest at March 31, 2017 5,287 $ 44.73 4.80 $ 70,667 Exercisable at March 31, 2017 4,686 $ 43.42 4.46 $ 68,022 The weighted average fair value of stock options granted was $15.20 per share and $20.16 per share during the years ended March 31, 2016 , and 2015 , respectively. The total intrinsic value of options exercised was $9,896 , $23,391 , and $15,069 in the years ended March 31, 2017 , 2016 and 2015 , respectively. The Company’s policy is to issue new shares upon exercise of options as the Company does not hold shares in treasury. The following table summarizes information on stock options outstanding at March 31, 2017 : Range of Exercise Prices Options Weighted-Average Options Weighted- Remaining Exercise Price $11.12 - 13.81 864 1.36 $ 12.36 864 $ 12.36 15.88 - 23.88 395 2.13 20.79 395 20.79 26.83 533 3.54 26.83 533 26.83 27.02 - 41.31 144 5.99 36.02 93 34.51 41.55 670 4.54 41.55 670 41.55 43.30 - 45.39 65 7.96 44.47 32 44.40 45.44 689 7.54 45.44 363 45.44 46.59 - 55.58 250 6.76 49.89 192 50.31 56.57 650 5.53 56.57 650 56.57 58.25 - 87.20 1,040 6.42 84.11 894 83.80 $11.12 - 87.20 5,300 4.81 $ 44.74 4,686 $ 43.42 Restricted stock unit activity is as follows: Non-Vested Restricted Stock Units Number Weighted Non-vested as of March 31, 2014 1,202 $ 65.63 Granted 815 46.62 Vested (491 ) 59.22 Forfeited (114 ) 63.70 Non-vested as of March 31, 2015 1,412 56.82 Granted 1,543 37.27 Vested (547 ) 38.38 Forfeited (196 ) 49.24 Non-vested as of March 31, 2016 2,212 43.43 Granted 1,333 50.66 Vested (975 ) 51.35 Forfeited (174 ) 43.56 Non-vested as of March 31, 2017 2,396 $ 45.53 The total fair value of the restricted stock units that vested during the years ended March 31, 2017 , 2016 and 2015 was $50,051 , $20,981 and $24,592 , respectively. 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 years ended March 31, 2017 , 2016 and 2015 . Year Ended March 31, 2017 2016 2015 Cost of services revenue $ 3,925 $ 3,106 $ 2,930 Sales and marketing 34,005 28,557 26,853 Research and development 7,335 6,722 5,908 General and administrative 28,663 25,811 24,972 Stock-based compensation expense $ 73,928 $ 64,196 $ 60,663 The Company recognized a tax benefit related to stock-based compensation of $23,473 in the year ended March 31, 2017 , $17,010 in the year ended March 31, 2016 and $18,570 in the year ended March 31, 2015 . Performance Based Awards In fiscal 2017 , 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 each financial period, management estimates the probable number of PSU’s that would vest until the ultimate achievement of the performance goals is known. The Company currently estimates that the PSU's will vest at 132% . The awards are included in the restricted stock units table. Awards with a Market Condition In fiscal 2017 , 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 year was $57.28 . The awards are included in the restricted stock unit table above. 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 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. Employees purchased 243 shares in exchange for $8,634 of proceeds in fiscal 2017 and 263 shares in exchange for $8,116 of proceeds in fiscal 2016 . 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 for fiscal 2017 , 2016 and 2015 was $2,620 , $2,418 and $2,960 , respectively. As of March 31, 2017 , there was approximately $1,014 of unrecognized cost related to the current purchase period of our Employee Stock Purchase Plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) before income taxes were as follows: Year Ended March 31, 2017 2016 2015 Domestic $ (7,698 ) $ (6,869 ) $ 28,048 Foreign 7,175 8,714 10,844 $ (523 ) $ 1,845 $ 38,892 The components of income tax expense (benefit) were as follows: Year Ended March 31, 2017 2016 2015 Current: Federal $ 6,138 $ 4,983 $ 1,777 State (977 ) 1,076 2,533 Foreign 4,818 4,982 4,791 Deferred: Federal (11,144 ) (9,171 ) 4,237 State (56 ) 324 (24 ) Foreign 158 (485 ) (72 ) $ (1,063 ) $ 1,709 $ 13,242 A reconciliation of the statutory tax rates and the effective tax rates for the years ended March 31, 2017 , 2016 and 2015 are as follows: Year Ended March 31, 2017 2016 2015 Statutory federal income tax expense (benefit) rate (35.0 )% 35.0 % 35.0 % State and local income tax expense, net of federal income tax effect 11.2 % 11.2 % 3.0 % Impact of limit on executive compensation — % — % 3.2 % Foreign earnings taxed at different rates 501.2 % 67.9 % 1.0 % Domestic permanent differences 368.4 % 116.8 % 4.1 % Foreign tax credits (258.2 )% (54.1 )% (2.8 )% Research credits (622.2 )% (141.2 )% (4.9 )% Tax reserves 15.6 % 8.7 % (5.3 )% Valuation allowance (121.4 )% 50.1 % — % Statutory tax rate changes 60.8 % (20.1 )% — % Other differences, net (123.7 )% 18.3 % 0.7 % Effective income tax expense (benefit) (203.3 )% 92.6 % 34.0 % Net deferred tax assets arise due to the recognition of income and expense items for tax purposes, which differ from those used for financial statement purposes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income, and to the extent that the Company believes recovery is not likely, the Company establishes a valuation allowance. The significant components of the Company’s deferred tax assets are as follows: March 31, 2017 2016 Deferred tax assets: Stock-based compensation $ 45,867 $ 40,033 Deferred revenue 11,810 12,496 Tax credits 12,810 6,970 Accrued expenses 1,249 1,155 Allowance for doubtful accounts and other reserves 601 753 Less: valuation allowance (1,796 ) (2,772 ) Total deferred tax assets 70,541 58,635 Deferred tax liabilities: Depreciation and amortization (9,523 ) (8,659 ) Net deferred tax asset $ 61,018 $ 49,976 At March 31, 2017 the Company maintained valuation allowances totaling $1,796 against New Jersey state research tax credits due to uncertainties related to the ability to utilize such state research tax credits before they expire. The Company decreased the valuation allowance $976 in fiscal 2017 due to the expiration of a portion of the NJ research tax credits and higher estimates of forecasted New Jersey taxable income. The Company based its valuation allowance on its estimates of taxable income and the period over which its state research tax credits will be recoverable. It is the Company’s intention to reinvest undistributed earnings of its foreign subsidiaries and thereby infinitely postpone their remittance. As a result, deferred U.S. income taxes have not been provided on undistributed earnings of foreign subsidiaries of the Company. In the event we needed to repatriate funds from outside of the United States, such repatriation would likely be subject to restrictions by local laws and/or tax consequences including foreign withholding taxes or U.S. income taxes. It is not currently practical to estimate the legal restrictions or tax liability that would arise from such repatriations. The cumulative amount of unremitted earnings from the foreign subsidiaries that is expected to be permanently reinvested was approximately $26,176 on March 31, 2017 . Excess tax benefits related to share-based payments are credited to equity. When determining this excess tax benefit, the Company elected to follow the tax law approach. As a result, the Company’s excess tax benefit which was recorded to equity was approximately $3,682 and $3,265 for the years ended March 31, 2017 and 2016 , respectively. At March 31, 2017 , the Company has federal and state research tax credit (R&D credits) carryforwards of approximately $3,253 and $3,175 , respectively. The federal research tax credit carryforwards expire from 2025 through 2036 , and the state research tax credit carryforwards expire from 2017 through 2023 . At March 31, 2017 , the Company has federal Alternative Minimum Tax credit carryforwards of $1,149 . 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 are the United States, Australia, Canada, Germany, Netherlands and United Kingdom. The Company is currently under audit in the United Kingdom, India, and New Jersey. The following table summarizes the tax years in the Company’s major tax jurisdictions that remain subject to income tax examinations by tax authorities as of March 31, 2017. 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 NOL carryforwards, in some cases the tax years continue to remain subject to examination with respect to such NOLs. Tax Jurisdiction Years Subject to Income U.S. Federal 2013 - Present New Jersey 2012 - Present Foreign jurisdictions 2012 - Present 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 amounts of unrecognized tax benefits is as follows: Balance at March 31, 2014 $ 4,113 Additions for tax positions related to fiscal 2015 490 Additions for tax positions related to prior years 252 Settlements and effective settlements with tax authorities and remeasurements (2,838 ) Reductions related to the expiration of statutes of limitations — Foreign currency translation adjustment (12 ) Balance at March 31, 2015 2,005 Additions for tax positions related to fiscal 2016 — Additions for tax positions related to prior years 170 Settlements and effective settlements with tax authorities and remeasurements (171 ) Reductions related to the expiration of statutes of limitations (64 ) Foreign currency translation adjustment 12 Balance at March 31, 2016 1,952 Additions for tax positions related to fiscal 2017 — Additions for tax positions related to prior years 179 Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations — Foreign currency translation adjustment (33 ) Balance at March 31, 2017 $ 2,098 All of the Company’s unrecognized tax benefits at March 31, 2017 of $2,098 , if recognized, would favorably affect the effective tax rate. 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 $1,950 are recorded as Other Liabilities on the Consolidated Balance Sheet, of which $287 represents interest and penalties. The Company also has unrecognized tax benefits and related accrued interest and penalties totaling $548 as a reduction of Deferred Tax Assets on the Consolidated Balance Sheet, of which $113 represents interest and penalties. The Company estimates that no remaining unrecognized tax benefits will be realized during the fiscal year ending March 31, 2018 . Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. In the years ended March 31, 2017 , 2016 and 2015 , the Company recognized $61 , $52 and $224 , respectively, of interest and penalties in the Consolidated Statement of Income. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company has a defined contribution plan, as allowed under Section 401(k) of the Internal Revenue Code, covering substantially all employees. Effective January 1, 2012, the Company makes contributions equal to a discretionary percentage of the employee’s contributions determined by the Company. During the years ended March 31, 2017 , 2016 and 2015 , the Company made contributions of $2,998 , $2,047 , and $1,955 , respectively. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in one segment. The Company’s products and services are sold throughout the world, through direct and indirect sales channels. The Company’s chief operating decision maker (the “CODM”) is the chief executive officer. The CODM makes operating performance assessment and resource allocation decisions on a global basis. The CODM does not receive discrete financial information about asset allocation, expense allocation or profitability by product or geography. Revenues by geography are based upon the billing address of the customer. All transfers between geographic regions have been eliminated from consolidated revenues. The following table sets forth revenue and long-lived assets by geographic area: Year Ended March 31, 2017 2016 2015 Revenue: United States $ 367,423 $ 343,015 $ 344,931 Other 283,095 252,111 262,612 $ 650,518 $ 595,126 $ 607,543 No individual country other than the United States accounts for 10% or more of revenues in the years ended March 31, 2017 , 2016 and 2015 . Revenue included in the “Other” caption above primarily relates to the Company’s operations in Europe, Australia, Canada and Asia. March 31, 2017 2016 Long-lived assets: United States $ 131,083 $ 135,562 Other 8,509 7,079 $ 139,592 $ 142,641 At March 31, 2017 and 2016 no other individual country, other than the United States, accounts for 10% or more of long-lived assets. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Selected Quarterly Financial Data (unaudited) Quarter Ended June 30 September 30 December 31 March 31 Fiscal 2017 Total revenue $ 152,413 $ 159,333 $ 165,841 $ 172,931 Gross margin 131,418 137,676 144,675 151,557 Net income (loss) (2,044 ) (562 ) (42 ) 3,188 Net income (loss) per common share: Basic (1) $ (0.05 ) $ (0.01 ) $ (0.00 ) $ 0.07 Diluted (1) $ (0.05 ) $ (0.01 ) $ (0.00 ) $ 0.07 Quarter Ended June 30 September 30 December 31 March 31 Fiscal 2016 Total revenue $ 139,123 $ 140,742 $ 155,696 $ 159,565 Gross margin 118,576 119,803 135,267 138,768 Net income (loss) (1,300 ) (9,236 ) 4,878 5,794 Net income (loss) per common share: Basic (1) $ (0.03 ) $ (0.20 ) $ 0.11 $ 0.13 Diluted (1) $ (0.03 ) $ (0.20 ) $ 0.10 $ 0.13 (1) Per common share amounts for the quarters and full year have been calculated separately. Accordingly, quarterly amounts do not add to the annual amount because of differences in the weighted average common shares outstanding during each period used in the basic and diluted calculations. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts Balance at Beginning of Year Charged (Credited) to Costs and Expenses Deductions Balance at End of Year (In thousands) Year Ended March 31, 2015 Allowance for doubtful accounts $ 111 $ 1 $ 8 $ 104 Valuation allowance for deferred taxes $ 1,382 $ (39 ) $ — $ 1,343 Year Ended March 31, 2016 Allowance for doubtful accounts $ 104 $ 247 $ 36 $ 315 Valuation allowance for deferred taxes $ 1,343 $ 1,429 $ — $ 2,772 Year Ended March 31, 2017 Allowance for doubtful accounts $ 315 $ (161 ) $ 51 $ 103 Valuation allowance for deferred taxes $ 2,772 $ (976 ) $ — $ 1,796 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. |
Use of Estimates | 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. |
Revenue Recognition | 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. |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares during the period. Diluted net income 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. |
Software Development Costs | Software Development Costs Research and development expenditures are charged to operations as incurred. Based on the Company’s software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release are immaterial. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of amounts due to the Company from normal business activities. The Company maintains an allowance for estimated losses resulting from the inability of its customers to make required payments. The Company estimates uncollectible amounts based upon historical bad debts, evaluation of current customer receivable balances, age of customer receivable balances, the customer’s financial condition and current economic trends. |
Accounting for Income Taxes | Accounting for Income Taxes As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves estimating actual current tax exposure, including assessing the risks associated with tax audits, and assessing temporary differences resulting from different treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities. As of March 31, 2017 , the Company had net deferred tax assets of approximately $61,018 , which were primarily related to stock-based compensation, deferred revenue, and tax credits. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income, and to the extent that the Company believes recovery is not likely, the Company establishes a valuation allowance. As of March 31, 2017 , the Company maintains a valuation allowance related to its deferred tax assets totaling $1,796 primarily related to the uncertainty of the Company’s ability to utilize New Jersey state research tax credits before expiration. The Company based its valuation allowance on its estimates of taxable income and the period over which its state research tax credits will be recoverable. 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. The Company applies the guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of March 31, 2017 , the Company had unrecognized tax benefits of $2,098 , all of which, if recognized, would favorably affect the effective tax rate. In addition, the Company had accrued interest and penalties of $400 related to the unrecognized tax benefits. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. Components of the reserve are classified as either current or long-term in the Consolidated Balance Sheet based on when we expect each of the items to be settled. However, unrecognized tax benefits which are related to a Deferred Tax Asset recorded in the Consolidated Balance Sheet are presented as a reduction against the related Deferred Tax Asset. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with maturities of three months or less at the date of purchase to be cash equivalents. As of March 31, 2017 , the Company’s cash and cash equivalents balance consisted primarily of money market funds. |
Short-term Investments | Short-term Investments Short-term investments consist of investments with maturities of twelve months or less that do not meet the criteria to be cash equivalents. The company determines classification of the investment as trading, available-for-sale or held-to-maturity at the time of purchase and reevaluates classification whenever changes in circumstances indicate changes in classification may be necessary. The Company’s current short-term investments are classified as held-to-maturity. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. Held-to-maturity investments are initially recorded at cost and adjusted for the amortization of discounts from the date of purchase through maturity. Income related to investments is recorded as interest income in the Consolidated Statement of Income. Cash inflows and outflows related to the sale, maturity and purchase of investments are classified as investing activities in the Company’s Consolidated Statements of Cash Flows. |
Concentration of Credit Risk | 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 | 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. As of March 31, 2017 and 2016 , the Company’s short-term investments balance consisted of U.S. Treasury Bills. 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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. The Company provides for depreciation on a straight-line basis over the estimated useful lives of the assets. The depreciable assets that comprise the Company's owned headquarters classified as Buildings are being depreciated over lives ranging from ten to sixty years. Computer and related equipment is generally depreciated over eighteen months to three years and furniture and fixtures are generally depreciated over three to twelve years . Leasehold improvements are amortized over the shorter of the useful life of the improvement or the term of the related lease. Expenditures for routine maintenance and repairs are charged against operations. Major replacements, improvements and additions are capitalized. |
Asset Retirement Obligation | Asset Retirement Obligation A liability for the fair value of an asset retirement obligation and corresponding increase to the carrying value of the related leasehold improvements are recorded at the time leasehold improvements are acquired. The Company maintains certain office space for which the lease agreement requires that the Company return the office space to its original condition upon vacating the premises. |
Long-Lived Assets | Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine the recoverability of its long-lived assets, the Company evaluates the estimated future undiscounted cash flows that are directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the long-lived asset. If the estimated future undiscounted cash flows demonstrate that recoverability is not probable, an impairment loss would be recognized. An impairment loss would be calculated based on the excess carrying amount of the long-lived asset over the long-lived asset’s fair value. The fair value would be determined based on valuation techniques such as a comparison to fair values of similar assets. |
Equity Method Investment | Equity Method Investment In fiscal 2016, the Company acquired a 34% ownership in Laitek, Inc. ("Laitek"). The Company also has an option to acquire the remaining ownership of Laitek at a fixed price until December 2017. Laitek develops solutions for acquiring, processing and presenting scientific and medical image information. The Company uses the equity method to account for its investment. In the event that management identifies an other than temporary decline in the estimated fair value of an equity method investment to an amount below its carrying value, such investment is written down to its estimated fair value. The Company also has development and original equipment manufacturing agreements with Laitek to jointly develop healthcare related software products. Certain employees of Laitek were also provided restricted stock units in exchange for consultative services provided to the Company. |
Deferred Revenue | 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. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation The Company utilizes the Black-Scholes pricing model to determine the fair value of non-qualified stock options on the dates of grant. Restricted stock units without a market condition are measured based on the fair market values of the underlying stock on the date of grant. The Company recognizes stock-based compensation using the straight-line method for all stock awards that don't include a market or performance condition. The Company has granted certain executive officers and other senior employees performance stock units that vest over three years based upon the Company's stock performance versus the Russell 3000 Index. The performance of the stock versus the index is a market condition performance criteria so the Company used a Monte Carlo simulation model to determine the fair value of the restricted stock units. Expense related to stock based compensation that includes market or performance conditions is recognized using the accelerated method. |
Share Repurchases | Share Repurchases The Company considers all shares repurchased as canceled shares restored to the status of authorized but unissued shares on the trade date. The aggregate purchase price of the shares of the Company’s common stock repurchased is reflected as a reduction to Stockholders’ Equity. The Company accounts for shares repurchased as an adjustment to common stock (at par value) with the excess repurchase price allocated between Additional Paid-in Capital and Accumulated Deficit. |
Sales Tax | Sales Tax The Company records revenue net of sales tax. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in cost of revenues for all periods presented. |
Foreign Currency Translation | Foreign Currency Translation The functional currencies of the Company’s foreign operations are deemed to be the local country’s currency. Assets and liabilities of the Company’s international subsidiaries are translated at their respective period-end exchange rates, and revenues and expenses are translated at average currency exchange rates for the period. The resulting balance sheet translation adjustments are included in Other Comprehensive Loss and are reflected as a separate component of Stockholders’ Equity. Foreign currency transaction gains and losses are recorded in “General and administrative expenses” in the Consolidated Statements of Income. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined to include all changes in equity, except those resulting from investments by stockholders and distribution to stockholders. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This standard replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. The ASU also includes guidance regarding the accounting for contract acquisition costs, which includes sales commissions. The Company has early adopted the new standard as of April 1, 2017 using the full retrospective method which will require each prior reporting period presented to be recast in future issuances of the Company’s financial statements. Over the last two years the Company has worked to assess all potential impacts of the new standard and prepare for adoption. As part of this process the Company closely monitored FASB activity, as well as working with non-authoritative groups to conclude on specific interpretative issues. As part of the adoption process, findings and progress of the project were regularly reported to senior management and the Audit Committee. The most significant impacts of the new standard upon adoption relate to the accounting for commissions costs and the timing of revenue recognition of certain perpetual software license arrangements. Specifically, under the new standard: • A portion of sales commissions cost will be recorded as an asset and recognized as an operating expense over the time period that the Company expects to recover the costs. Currently, the Company expenses commissions cost as incurred. • The software revenue associated with certain sales of perpetual licenses is recognized sooner due to the updated revenue recognition guidance which amended certain policies previously adopted by the Company. These policies related primarily to the requirement to obtain certain documentation from an end user in an indirect transaction, the elimination of the requirement to establish vendor specific objective evidence of fair value in a multiple element arrangement, and the previous practice of recognizing revenue on a cash basis in certain geographies. 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 will adopt this standard in the first quarter of fiscal 2018. The Company is in the process of evaluating the transition and disclosure requirements of the standard. Statement of Cash Flows In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230), which requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for the fiscal 2019. Early adoption is permitted. The amendments will be applied using a retrospective transition method to each period presented. The Company is in the process of evaluating the transition and disclosure requirements of the standard and anticipates the adoption will not have a significant impact on the consolidated statements of cash flows. 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. 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. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Net Income Per Common Share | The following table sets forth the computation of basic and diluted net income per common share: Year Ended March 31, 2017 2016 2015 Net income $ 540 $ 136 $ 25,650 Basic net income per common share: Basic weighted average shares outstanding 44,700 45,159 45,464 Basic net income per common share $ 0.01 $ 0.00 $ 0.56 Diluted net income per common share: Basic weighted average shares outstanding 44,700 45,159 45,464 Dilutive effect of stock options, restricted stock units, and employee stock purchase plan 1,921 1,330 1,758 Diluted weighted average shares outstanding 46,621 46,489 47,222 Diluted net income per common share $ 0.01 $ 0.00 $ 0.54 |
Summary of Potential Outstanding Common Stock Equivalents | The following table summarizes the potential outstanding common stock equivalents of the Company at the end of each period, which have been excluded from the computation of diluted net income per common share, as its effect is anti-dilutive. Year Ended March 31, 2017 2016 2015 Stock options, restricted stock units, and shares under the employee stock purchase plan 2,492 4,183 3,136 |
Financial Assets Measured At Fair Value On Recurring Basis | The following table summarizes the composition of the Company’s financial assets measured at fair value on a recurring basis at March 31, 2017 and March 31, 2016 : March 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 70,190 — — $ 70,190 Short-term investments — $ 120,989 — $ 120,989 March 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 95,735 — — $ 95,735 Short-term investments — $ 99,215 — $ 99,215 |
Deferred Revenue | Deferred revenue consists of the following: March 31, 2017 2016 Current: Deferred software revenue $ 2,793 $ 1,578 Deferred services revenue 203,984 193,399 206,777 194,977 Non-current: Deferred services revenue 70,803 49,889 Total Deferred Revenue $ 277,580 $ 244,866 |
New Accounting Pronouncement, Early Adoption | Select recast unaudited financial statement information, which reflect the adoption of the ASU is below. The Company’s historical net cash flows are not impacted by this accounting change. Year Ended March 31, 2016 Unaudited As Reported Adjustments Recast for Adoption of ASC 606 Revenues: Software $ 258,793 $ (702 ) $ 258,091 Services 336,333 (657 ) 335,676 Total revenues 595,126 (1,359 ) 593,767 Total cost of revenues 82,712 — 82,712 Gross margin 512,414 (1,359 ) 511,055 Total operating expenses 510,415 (3,470 ) 506,945 Income from operations 1,999 2,111 4,110 Interest expense (933 ) — (933 ) Interest income 862 — 862 Equity in loss of affiliate (83 ) — (83 ) Income before income taxes 1,845 2,111 3,956 Income tax expense 1,709 527 2,236 Net income $ 136 $ 1,584 $ 1,720 Year Ended March 31, 2017 Unaudited As Reported Adjustments Recast for Adoption of ASC 606 Revenues: Software $ 296,421 $ (5,753 ) $ 290,668 Services 354,097 240 354,337 Total revenues 650,518 (5,513 ) 645,005 Total cost of revenues 85,192 — 85,192 Gross margin 565,326 (5,513 ) 559,813 Total operating expenses 565,097 (4,042 ) 561,055 Income (loss) from operations 229 (1,471 ) (1,242 ) Interest expense (957 ) — (957 ) Interest income 1,163 — 1,163 Equity in loss of affiliate (958 ) — (958 ) Loss before income taxes (523 ) (1,471 ) (1,994 ) Income tax benefit (1,063 ) (423 ) (1,486 ) Net income (loss) $ 540 $ (1,048 ) $ (508 ) March 31, 2017 Unaudited Balance Sheet Data As Reported Adjustments Recast for Adoption of ASC 606 Current assets: Trade accounts receivable $ 132,761 $ 1,789 $ 134,550 Unbilled receivables $ — $ 1,211 $ 1,211 Total current assets $ 598,736 $ 3,000 $ 601,736 Deferred commissions $ — $ 30,378 $ 30,378 Deferred tax assets, net $ 61,018 $ (10,790 ) $ 50,228 Total assets $ 802,967 $ 22,588 $ 825,555 Current Liabilities: Deferred revenue $ 206,777 $ (2,001 ) $ 204,776 Total current liabilities $ 285,595 $ (2,001 ) $ 283,594 Other liabilities $ 3,934 $ 292 $ 4,226 Accumulated deficit $ (239,974 ) $ 24,297 $ (215,677 ) Total stockholders’ equity $ 442,635 $ 24,297 $ 466,932 Total liabilities and stockholders’ equity $ 802,967 $ 22,588 $ 825,555 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: March 31, 2017 2016 Land $ 9,445 $ 9,445 Buildings 103,244 103,193 Computers, servers and other equipment 35,274 33,120 Furniture and fixtures 14,912 14,458 Leasehold improvements 7,040 6,948 Purchased software 1,335 1,279 Construction in process 1,147 165 172,397 168,608 Less: Accumulated depreciation and amortization (40,078 ) (32,704 ) $ 132,319 $ 135,904 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of the following: March 31, 2017 2016 Compensation and related payroll taxes $ 45,149 $ 36,789 Other 33,552 32,889 $ 78,701 $ 69,678 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under All Operating Leases | Future minimum lease payments under all operating leases at March 31, 2017 are as follows: Year Ending March 31, 2018 $ 9,504 2019 7,588 2020 6,391 2021 5,238 2022 and thereafter 6,002 $ 34,723 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Valuation Assumptions | The assumptions used in the Black-Scholes option-pricing model are as follows: Year Ended March 31, 2016 2015 Dividend yield None None Expected volatility 39% - 43% 41% - 47% Weighted average expected volatility 41% 46% Risk-free interest rates 1.29% - 1.75% 1.22% - 2.18% Weighted average expected life (in years) 4.6 5.7 |
Schedule of Stock Option Activity | The following summarizes the activity for the Company’s stock incentive plans from March 31, 2014 to March 31, 2017 : Options Number of Weighted- Weighted- Aggregate Outstanding at March 31, 2014 6,388 $ 39.03 Options granted 1,155 46.08 Options exercised (504 ) 19.44 Options forfeited (159 ) 65.93 Options expired (27 ) 68.84 Outstanding at March 31, 2015 6,853 40.91 Options granted 148 41.84 Options exercised (764 ) 8.80 Options forfeited (172 ) 59.79 Options expired (126 ) 61.81 Outstanding at March 31, 2016 5,939 44.07 Options granted — — Options exercised (446 ) 28.44 Options forfeited (77 ) 51.55 Options expired (116 ) 68.98 Outstanding at March 31, 2017 5,300 $ 44.74 4.81 $ 70,743 Vested or expected to vest at March 31, 2017 5,287 $ 44.73 4.80 $ 70,667 Exercisable at March 31, 2017 4,686 $ 43.42 4.46 $ 68,022 |
Summary of Stock Options Outstanding Under Plan And LTIP | The following table summarizes information on stock options outstanding at March 31, 2017 : Range of Exercise Prices Options Weighted-Average Options Weighted- Remaining Exercise Price $11.12 - 13.81 864 1.36 $ 12.36 864 $ 12.36 15.88 - 23.88 395 2.13 20.79 395 20.79 26.83 533 3.54 26.83 533 26.83 27.02 - 41.31 144 5.99 36.02 93 34.51 41.55 670 4.54 41.55 670 41.55 43.30 - 45.39 65 7.96 44.47 32 44.40 45.44 689 7.54 45.44 363 45.44 46.59 - 55.58 250 6.76 49.89 192 50.31 56.57 650 5.53 56.57 650 56.57 58.25 - 87.20 1,040 6.42 84.11 894 83.80 $11.12 - 87.20 5,300 4.81 $ 44.74 4,686 $ 43.42 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity is as follows: Non-Vested Restricted Stock Units Number Weighted Non-vested as of March 31, 2014 1,202 $ 65.63 Granted 815 46.62 Vested (491 ) 59.22 Forfeited (114 ) 63.70 Non-vested as of March 31, 2015 1,412 56.82 Granted 1,543 37.27 Vested (547 ) 38.38 Forfeited (196 ) 49.24 Non-vested as of March 31, 2016 2,212 43.43 Granted 1,333 50.66 Vested (975 ) 51.35 Forfeited (174 ) 43.56 Non-vested as of March 31, 2017 2,396 $ 45.53 |
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 years ended March 31, 2017 , 2016 and 2015 . Year Ended March 31, 2017 2016 2015 Cost of services revenue $ 3,925 $ 3,106 $ 2,930 Sales and marketing 34,005 28,557 26,853 Research and development 7,335 6,722 5,908 General and administrative 28,663 25,811 24,972 Stock-based compensation expense $ 73,928 $ 64,196 $ 60,663 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes | The components of income (loss) before income taxes were as follows: Year Ended March 31, 2017 2016 2015 Domestic $ (7,698 ) $ (6,869 ) $ 28,048 Foreign 7,175 8,714 10,844 $ (523 ) $ 1,845 $ 38,892 |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows: Year Ended March 31, 2017 2016 2015 Current: Federal $ 6,138 $ 4,983 $ 1,777 State (977 ) 1,076 2,533 Foreign 4,818 4,982 4,791 Deferred: Federal (11,144 ) (9,171 ) 4,237 State (56 ) 324 (24 ) Foreign 158 (485 ) (72 ) $ (1,063 ) $ 1,709 $ 13,242 |
Reconciliation of Statutory Tax Rates and Effective Tax Rates | A reconciliation of the statutory tax rates and the effective tax rates for the years ended March 31, 2017 , 2016 and 2015 are as follows: Year Ended March 31, 2017 2016 2015 Statutory federal income tax expense (benefit) rate (35.0 )% 35.0 % 35.0 % State and local income tax expense, net of federal income tax effect 11.2 % 11.2 % 3.0 % Impact of limit on executive compensation — % — % 3.2 % Foreign earnings taxed at different rates 501.2 % 67.9 % 1.0 % Domestic permanent differences 368.4 % 116.8 % 4.1 % Foreign tax credits (258.2 )% (54.1 )% (2.8 )% Research credits (622.2 )% (141.2 )% (4.9 )% Tax reserves 15.6 % 8.7 % (5.3 )% Valuation allowance (121.4 )% 50.1 % — % Statutory tax rate changes 60.8 % (20.1 )% — % Other differences, net (123.7 )% 18.3 % 0.7 % Effective income tax expense (benefit) (203.3 )% 92.6 % 34.0 % |
Components of Deferred Tax Assets | The significant components of the Company’s deferred tax assets are as follows: March 31, 2017 2016 Deferred tax assets: Stock-based compensation $ 45,867 $ 40,033 Deferred revenue 11,810 12,496 Tax credits 12,810 6,970 Accrued expenses 1,249 1,155 Allowance for doubtful accounts and other reserves 601 753 Less: valuation allowance (1,796 ) (2,772 ) Total deferred tax assets 70,541 58,635 Deferred tax liabilities: Depreciation and amortization (9,523 ) (8,659 ) Net deferred tax asset $ 61,018 $ 49,976 |
Schedule of Tax Years Subject to Income Tax Examination | The following table summarizes the tax years in the Company’s major tax jurisdictions that remain subject to income tax examinations by tax authorities as of March 31, 2017. 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 NOL carryforwards, in some cases the tax years continue to remain subject to examination with respect to such NOLs. Tax Jurisdiction Years Subject to Income U.S. Federal 2013 - Present New Jersey 2012 - Present Foreign jurisdictions 2012 - Present |
Reconciliation of Amounts of Unrecognized Tax Benefits | A reconciliation of the amounts of unrecognized tax benefits is as follows: Balance at March 31, 2014 $ 4,113 Additions for tax positions related to fiscal 2015 490 Additions for tax positions related to prior years 252 Settlements and effective settlements with tax authorities and remeasurements (2,838 ) Reductions related to the expiration of statutes of limitations — Foreign currency translation adjustment (12 ) Balance at March 31, 2015 2,005 Additions for tax positions related to fiscal 2016 — Additions for tax positions related to prior years 170 Settlements and effective settlements with tax authorities and remeasurements (171 ) Reductions related to the expiration of statutes of limitations (64 ) Foreign currency translation adjustment 12 Balance at March 31, 2016 1,952 Additions for tax positions related to fiscal 2017 — Additions for tax positions related to prior years 179 Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations — Foreign currency translation adjustment (33 ) Balance at March 31, 2017 $ 2,098 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table sets forth revenue and long-lived assets by geographic area: Year Ended March 31, 2017 2016 2015 Revenue: United States $ 367,423 $ 343,015 $ 344,931 Other 283,095 252,111 262,612 $ 650,518 $ 595,126 $ 607,543 |
Schedule of Long-Lived Assets by Geographic Area | March 31, 2017 2016 Long-lived assets: United States $ 131,083 $ 135,562 Other 8,509 7,079 $ 139,592 $ 142,641 |
Selected Quarterly Financial 29
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | Quarter Ended June 30 September 30 December 31 March 31 Fiscal 2017 Total revenue $ 152,413 $ 159,333 $ 165,841 $ 172,931 Gross margin 131,418 137,676 144,675 151,557 Net income (loss) (2,044 ) (562 ) (42 ) 3,188 Net income (loss) per common share: Basic (1) $ (0.05 ) $ (0.01 ) $ (0.00 ) $ 0.07 Diluted (1) $ (0.05 ) $ (0.01 ) $ (0.00 ) $ 0.07 Quarter Ended June 30 September 30 December 31 March 31 Fiscal 2016 Total revenue $ 139,123 $ 140,742 $ 155,696 $ 159,565 Gross margin 118,576 119,803 135,267 138,768 Net income (loss) (1,300 ) (9,236 ) 4,878 5,794 Net income (loss) per common share: Basic (1) $ (0.03 ) $ (0.20 ) $ 0.11 $ 0.13 Diluted (1) $ (0.03 ) $ (0.20 ) $ 0.10 $ 0.13 (1) Per common share amounts for the quarters and full year have been calculated separately. Accordingly, quarterly amounts do not add to the annual amount because of differences in the weighted average common shares outstanding during each period used in the basic and diluted calculations. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Mar. 31, 2017USD ($)revenue_source | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of sources of primary revenue | revenue_source | 2 | ||
Length of customer support agreement (in years) | 1 year | ||
Number of days for other professional services | 90 days | ||
Net deferred tax assets | $ 61,018,000 | $ 49,976,000 | |
Valuation allowance for deferred tax assets | 1,796,000 | ||
Unrecognized tax benefits which would favorably affect the effective tax rate once recognized | 2,098,000 | ||
Accrued interest and penalties | 400,000 | ||
Asset retirement obligation | 1,204,000 | 1,071,000 | |
Asset impairment charges | 0 | 0 | $ 0 |
Advertising expenses | 7,816,000 | 5,083,000 | 5,401,000 |
Net foreign currency transaction gain (loss) | $ 644,000 | 195,000 | 127,000 |
Duration of forward contracts utilized for hedging, Minimum (in months) | 1 month | ||
Duration of forward contracts utilized for hedging, Maximum (in months) | 3 months | ||
Net realized gains (losses) related to settlement of forward exchange contracts recorded in general and administrative expenses | $ 15,000 | $ (53,000) | $ 33,000 |
PSU | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Stock options granted, vesting period (in years) | 3 years | ||
Laitek, Inc. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership percentage of equity method investment | 34.00% | ||
Minimum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 10 years | ||
Minimum | Computers, servers and other equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 18 months | ||
Minimum | Furniture and fixtures | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 3 years | ||
Maximum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 60 years | ||
Maximum | Computers, servers and other equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 3 years | ||
Maximum | Furniture and fixtures | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 12 years | ||
Revenue | Arrow | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 36.00% | 38.00% | 36.00% |
Revenue | Customer Concentration Risk | Avent | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 10.00% | ||
Accounts Receivable | Customer Concentration Risk | Arrow | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 40.00% | 43.00% | |
Accounts Receivable | Customer Concentration Risk | Avent | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 12.00% |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||||||||
Net income | $ 3,188 | $ (42) | $ (562) | $ (2,044) | $ 5,794 | $ 4,878 | $ (9,236) | $ (1,300) | $ 540 | $ 136 | $ 25,650 | ||||||||
Basic net income per common share: | |||||||||||||||||||
Basic weighted average shares outstanding (shares) | 44,700 | 45,159 | 45,464 | ||||||||||||||||
Basic net income per common share (in dollars per share) | $ 0.07 | [1] | $ 0 | [1] | $ (0.01) | [1] | $ (0.05) | [1] | $ 0.13 | [1] | $ 0.11 | [1] | $ (0.20) | [1] | $ (0.03) | [1] | $ 0.01 | $ 0 | $ 0.56 |
Diluted net income per common share: | |||||||||||||||||||
Basic weighted average shares outstanding (shares) | 44,700 | 45,159 | 45,464 | ||||||||||||||||
Dilutive effect of stock options, restricted stock units, and employee stock purchase plan (in shares) | 1,921 | 1,330 | 1,758 | ||||||||||||||||
Diluted weighted average shares outstanding (in shares) | 46,621 | 46,489 | 47,222 | ||||||||||||||||
Diluted net income per common share (in dollars per share) | $ 0.07 | [1] | $ 0 | [1] | $ (0.01) | [1] | $ (0.05) | [1] | $ 0.13 | [1] | $ 0.10 | [1] | $ (0.20) | [1] | $ (0.03) | [1] | $ 0.01 | $ 0 | $ 0.54 |
[1] | Per common share amounts for the quarters and full year have been calculated separately. Accordingly, quarterly amounts do not add to the annual amount because of differences in the weighted average common shares outstanding during each period used in the basic and diluted calculations. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Summary of Potential Outstanding Common Stock Equivalents (Detail) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | |||
Stock options, restricted stock units, and shares under the employee stock purchase plan (in shares) | 2,492 | 4,183 | 3,136 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 70,190 | $ 95,735 |
Short-term investments | 120,989 | 99,215 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 70,190 | 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 | 120,989 | 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 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Deferred Revenue (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, Current | $ 206,777 | $ 194,977 |
Deferred services revenue | 70,803 | 49,889 |
Total Deferred Revenue | 277,580 | 244,866 |
Deferred software revenue | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, Current | 2,793 | 1,578 |
Deferred services revenue | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, Current | $ 203,984 | $ 193,399 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Recently Issued Accounting Standards - ASU 2014-09 I (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | |||||||||||
Software | $ 296,421 | $ 258,793 | $ 283,254 | ||||||||
Services | 354,097 | 336,333 | 324,289 | ||||||||
Total revenues | $ 172,931 | $ 165,841 | $ 159,333 | $ 152,413 | $ 159,565 | $ 155,696 | $ 140,742 | $ 139,123 | 650,518 | 595,126 | 607,543 |
Total cost of revenues | 85,192 | 82,712 | 82,068 | ||||||||
Gross margin | 151,557 | 144,675 | 137,676 | 131,418 | 138,768 | 135,267 | 119,803 | 118,576 | 565,326 | 512,414 | 525,475 |
Total operating expenses | 565,097 | 510,415 | 486,691 | ||||||||
Income (loss) from operations | 229 | 1,999 | 38,784 | ||||||||
Interest expense | (957) | (933) | (665) | ||||||||
Interest income | 1,163 | 862 | 773 | ||||||||
Equity in loss of affiliate | (958) | (83) | 0 | ||||||||
Income (loss) before income taxes | (523) | 1,845 | 38,892 | ||||||||
Income tax expense (benefit) | (1,063) | 1,709 | 13,242 | ||||||||
Net income (loss) | $ 3,188 | $ (42) | $ (562) | $ (2,044) | $ 5,794 | $ 4,878 | $ (9,236) | $ (1,300) | 540 | 136 | $ 25,650 |
Pro Forma | Accounting Standards Update 2014-09 | |||||||||||
Revenues: | |||||||||||
Software | 290,668 | 258,091 | |||||||||
Services | 354,337 | 335,676 | |||||||||
Total revenues | 645,005 | 593,767 | |||||||||
Total cost of revenues | 85,192 | 82,712 | |||||||||
Gross margin | 559,813 | 511,055 | |||||||||
Total operating expenses | 561,055 | 506,945 | |||||||||
Income (loss) from operations | (1,242) | 4,110 | |||||||||
Interest expense | (957) | (933) | |||||||||
Interest income | 1,163 | 862 | |||||||||
Equity in loss of affiliate | (958) | (83) | |||||||||
Income (loss) before income taxes | (1,994) | 3,956 | |||||||||
Income tax expense (benefit) | (1,486) | 2,236 | |||||||||
Net income (loss) | (508) | 1,720 | |||||||||
Difference between Revenue Guidance In Effect before And After Topic 606 | Pro Forma | Accounting Standards Update 2014-09 | |||||||||||
Revenues: | |||||||||||
Software | (5,753) | (702) | |||||||||
Services | 240 | (657) | |||||||||
Total revenues | (5,513) | (1,359) | |||||||||
Total cost of revenues | 0 | 0 | |||||||||
Gross margin | (5,513) | (1,359) | |||||||||
Total operating expenses | (4,042) | (3,470) | |||||||||
Income (loss) from operations | (1,471) | 2,111 | |||||||||
Interest expense | 0 | 0 | |||||||||
Interest income | 0 | 0 | |||||||||
Equity in loss of affiliate | 0 | 0 | |||||||||
Income (loss) before income taxes | (1,471) | 2,111 | |||||||||
Income tax expense (benefit) | (423) | 527 | |||||||||
Net income (loss) | $ (1,048) | $ 1,584 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Recently Issued Accounting Standards - ASU 2014-09 II (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Current assets: | ||||
Trade accounts receivable | $ 132,761 | $ 113,429 | ||
Total current assets | 598,736 | 517,377 | ||
Deferred tax assets, net | 61,018 | 49,976 | ||
Total assets | 802,967 | 714,573 | ||
Current Liabilities: | ||||
Deferred revenue | 206,777 | 194,977 | ||
Total current liabilities | 285,595 | 264,964 | ||
Other liabilities | 3,934 | 3,452 | ||
Accumulated deficit | (239,974) | (197,962) | ||
Total stockholders’ equity | 442,635 | 396,268 | $ 407,010 | $ 462,578 |
Total liabilities and stockholders’ equity | 802,967 | $ 714,573 | ||
Pro Forma | Accounting Standards Update 2014-09 | ||||
Current assets: | ||||
Trade accounts receivable | 134,550 | |||
Unbilled receivables | 1,211 | |||
Total current assets | 601,736 | |||
Deferred commissions | 30,378 | |||
Deferred tax assets, net | 50,228 | |||
Total assets | 825,555 | |||
Current Liabilities: | ||||
Deferred revenue | 204,776 | |||
Total current liabilities | 283,594 | |||
Other liabilities | 4,226 | |||
Accumulated deficit | (215,677) | |||
Total stockholders’ equity | 466,932 | |||
Total liabilities and stockholders’ equity | 825,555 | |||
Difference between Revenue Guidance In Effect before And After Topic 606 | Pro Forma | Accounting Standards Update 2014-09 | ||||
Current assets: | ||||
Trade accounts receivable | 1,789 | |||
Unbilled receivables | 1,211 | |||
Total current assets | 3,000 | |||
Deferred commissions | 30,378 | |||
Deferred tax assets, net | (10,790) | |||
Total assets | 22,588 | |||
Current Liabilities: | ||||
Deferred revenue | (2,001) | |||
Total current liabilities | (2,001) | |||
Other liabilities | 292 | |||
Accumulated deficit | 24,297 | |||
Total stockholders’ equity | 24,297 | |||
Total liabilities and stockholders’ equity | $ 22,588 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 172,397 | $ 168,608 |
Less: Accumulated depreciation and amortization | (40,078) | (32,704) |
Property and equipment, net | 132,319 | 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 | 35,274 | 33,120 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,912 | 14,458 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,040 | 6,948 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,335 | 1,279 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,147 | $ 165 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 9,980 | $ 10,927 | $ 8,856 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Payables and Accruals [Abstract] | ||
Compensation and related payroll taxes | $ 45,149 | $ 36,789 |
Other | 33,552 | 32,889 |
Total accrued liabilities | $ 78,701 | $ 69,678 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments Under All Operating Leases (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 9,504 |
2,019 | 7,588 |
2,020 | 6,391 |
2,021 | 5,238 |
2022 and thereafter | 6,002 |
Future minimum lease payments, Total | $ 34,723 |
Commitments and Contingencies41
Commitments and Contingencies - Additional Information (Detail) | Feb. 27, 2017patent | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expenses | $ 10,377,000 | $ 9,856,000 | $ 10,845,000 | |
Non-cancellable purchase commitments, 2018 | 11,051,000 | |||
Non-cancellable purchase commitments, 2019 | 6,615,000 | |||
Non-cancellable purchase commitments, 2020 | 3,373,000 | |||
Non-cancellable purchase commitments, 2021 | 221,000 | |||
Non-cancellable purchase commitments, Total for all periods through fiscal 2021 | 21,260,000 | |||
Royalty expense | $ 2,646,000 | 1,933,000 | 1,768,000 | |
Maximum software warranty period (in days) | 90 days | |||
Product warranty accrual | $ 0 | $ 0 | $ 0 | |
Realtime Data LLC d/b/a IXO | ||||
Loss Contingencies [Line Items] | ||||
Number of patents involved in alleged infringement | patent | 4 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - Revolving Credit Facility - USD ($) | Jun. 30, 2014 | Mar. 31, 2017 | Mar. 31, 2016 |
Line of Credit Facility [Line Items] | |||
Term (in years) | 5 years | ||
Borrowing capacity | $ 250,000,000 | ||
Commitment fee percentage | 0.25% | ||
Outstanding borrowings under credit facility | $ 0 | ||
Unamortized debt issuance expense | 568,000 | $ 820,000 | |
Amortization of debt issuance expense | $ 252,000 | $ 252,000 | |
LIBOR | |||
Line of Credit Facility [Line Items] | |||
Variable rate (percent) | 1.50% |
Capitalization - Additional Inf
Capitalization - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($)business_day$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Nov. 13, 2008right | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||
Number of rights declared as dividend distribution for each outstanding share of common stock | right | 1 | |||
Description of exercise entitlement of each right | Each Right, when exercisable, entitles the registered holder to purchase one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share, at a purchase price of eighty dollars per one one-thousandth of a share, subject to adjustment. | |||
Conditions under which rights become exercisable | The Rights will become exercisable following the tenth business day after (i) a person or group announces the acquisition of 15% or more of the Company’s common stock or (ii) commencement of a tender or exchange offer, the consummation of which would result in ownership by the person or group of 15% or more of the Company’s common stock. | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Period before rights become exercisable | business_day | 10 | |||
Minimum acquisition percentage of company stock needed for rights to become exercisable | 15.00% | |||
Redemption price of each right (in dollars per share) | $ / shares | $ 0.001 | |||
Expiration date of rights | Nov. 14, 2018 | |||
Common stock, shares outstanding (in shares) | 44,816,000 | 44,134,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Amount of common stock repurchased | $ | $ 49,998 | $ 91,477 | $ 155,125 | |
Options outstanding (in shares) | 5,300,000 | |||
Restricted Stock Units | ||||
Class of Stock [Line Items] | ||||
Options outstanding (in shares) | 4,478,000 | |||
Common Stock Repurchased | ||||
Class of Stock [Line Items] | ||||
Amount of common stock repurchased | $ | $ 49,998 | |||
Number of shares repurchased (in shares) | 982,000 | |||
Remaining value of common stock to be repurchased under share repurchase program | $ | $ 125,000 | |||
Series A Junior Participating Preferred | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized (in shares) | 150,000 | |||
Number of shares per Right (in shares) | 0.001 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||
Exercise purchase price of preferred stock rights (in dollars per share) | $ / shares | $ 80 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017USD ($)stock_planshares | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense | $ 95,364 | ||
Awards expected to be recognized over a weighted average period (in years) | 1 year 6 months 3 days | ||
Weighted average fair value of stock options granted per share (in dollars per share) | $ / shares | $ 15.20 | $ 20.16 | |
Total intrinsic value of options exercised | $ 9,896 | $ 23,391 | $ 15,069 |
Total fair value of restricted stock units - vested | 50,051 | 20,981 | 24,592 |
Recognized tax benefit related to stock-based compensation | $ 23,473 | $ 17,010 | $ 18,570 |
Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted, vesting period (in years) | 4 years | ||
Equity Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted, vesting period (in years) | 3 years | ||
Minimum | Equity Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted, vesting period (in years) | 1 year | ||
Maximum | Equity Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted, vesting period (in years) | 3 years | ||
2016 Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock incentive plans | stock_plan | 1 | ||
Options available for future grant (in shares) | shares | 2,078 | ||
2006 Long-Term Stock Inventive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock incentive plans | stock_plan | 1 |
Stock Plans - Assumptions Used
Stock Plans - Assumptions Used in Black-Scholes Option-Pricing Model (Detail) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected volatility, minimum | 39.00% | 41.00% |
Expected volatility, maximum | 43.00% | 47.00% |
Weighted average expected volatility | 41.00% | 46.00% |
Risk-free interest rates, minimum | 1.29% | 1.22% |
Risk-free interest rates, maximum | 1.75% | 2.18% |
Weighted average expected life (in years) | 4 years 7 months 6 days | 5 years 8 months 1 day |
Stock Plans - Activity for Comp
Stock Plans - Activity for Company's Two Stock Incentive Plans (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Number of Options | |||
Number of Options, Outstanding beginning balance (in shares) | 5,939 | 6,853 | 6,388 |
Number of Options, Options granted (in shares) | 0 | 148 | 1,155 |
Number of Options, Options exercised (in shares) | (446) | (764) | (504) |
Number of Options, Options forfeited (in shares) | (77) | (172) | (159) |
Number of Options, Options expired (in shares) | (116) | (126) | (27) |
Number of Options, Outstanding ending balance (in shares) | 5,300 | 5,939 | 6,853 |
Number of Options, Vested or expected to vest at March 31, 2017 (in shares) | 5,287 | ||
Number of Options, Exercisable at March 31, 2017 (in shares) | 4,686 | ||
Weighted- Average Exercise Price | |||
Weighted-Average Exercise Price, Outstanding beginning balance (in dollars per share) | $ 44.07 | $ 40.91 | $ 39.03 |
Weighted-Average Exercise Price, Options granted (in dollars per share) | 0 | 41.84 | 46.08 |
Weighted-Average Exercise Price, Options exercised (in dollars per share) | 28.44 | 8.80 | 19.44 |
Weighted-Average Exercise Price, Options forfeited (in dollars per share) | 51.55 | 59.79 | 65.93 |
Weighted-Average Exercise Price, Options expired (in dollars per share) | 68.98 | 61.81 | 68.84 |
Weighted-Average Exercise Price, Outstanding ending balance (in dollars per share) | 44.74 | $ 44.07 | $ 40.91 |
Weighted-Average Exercise Price, Vested or expected to vest at March 31, 2017 (in dollars per share) | 44.73 | ||
Weighted-Average Exercise Price, Exercisable at March 31, 2017 (in dollars per share) | $ 43.42 | ||
Weighted- Average Remaining Contractual Term (Years) | |||
Weighted-Average Remaining Contractual Term, Outstanding at March 31, 2017 (in years) | 4 years 9 months 21 days | ||
Weighted-Average Remaining Contractual Term, Vested or expected to vest at March 31, 2017 (in years) | 4 years 9 months 18 days | ||
Weighted-Average Remaining Contractual Term, Exercisable at March 31, 2017 (in years) | 4 years 5 months 15 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Outstanding at March 31, 2017 | $ 70,743 | ||
Aggregate Intrinsic Value, Vested or expected to vest at March 31, 2017 | 70,667 | ||
Aggregate Intrinsic Value, Exercisable at March 31, 2017 | $ 68,022 |
Stock Plans - Summary of Stock
Stock Plans - Summary of Stock Options Outstanding Under Plan and LTIP (Detail) shares in Thousands | 12 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 11.12 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 87.20 |
Options Outstanding at March 31, 2017 (in shares) | shares | 5,300 |
Weighted-Average Remaining Contractual Life (in years) | 4 years 9 months 21 days |
Weighted-Average Exercise Price (in dollars per share) | $ 44.74 |
Options Exercisable at March 31, 2017 (in shares) | shares | 4,686 |
Weighted- Average Exercise Price (in dollars per share) | $ 43.42 |
$11.12 - 13.81 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 11.12 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 13.81 |
Options Outstanding at March 31, 2017 (in shares) | shares | 864 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 4 months 9 days |
Weighted-Average Exercise Price (in dollars per share) | $ 12.36 |
Options Exercisable at March 31, 2017 (in shares) | shares | 864 |
Weighted- Average Exercise Price (in dollars per share) | $ 12.36 |
15.88 - 23.88 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 15.88 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 23.88 |
Options Outstanding at March 31, 2017 (in shares) | shares | 395 |
Weighted-Average Remaining Contractual Life (in years) | 2 years 1 month 17 days |
Weighted-Average Exercise Price (in dollars per share) | $ 20.79 |
Options Exercisable at March 31, 2017 (in shares) | shares | 395 |
Weighted- Average Exercise Price (in dollars per share) | $ 20.79 |
26.83 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 26.83 |
Options Outstanding at March 31, 2017 (in shares) | shares | 533 |
Weighted-Average Remaining Contractual Life (in years) | 3 years 6 months 14 days |
Weighted-Average Exercise Price (in dollars per share) | $ 26.83 |
Options Exercisable at March 31, 2017 (in shares) | shares | 533 |
Weighted- Average Exercise Price (in dollars per share) | $ 26.83 |
27.02 - 41.31 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 27.02 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 41.31 |
Options Outstanding at March 31, 2017 (in shares) | shares | 144 |
Weighted-Average Remaining Contractual Life (in years) | 5 years 11 months 26 days |
Weighted-Average Exercise Price (in dollars per share) | $ 36.02 |
Options Exercisable at March 31, 2017 (in shares) | shares | 93 |
Weighted- Average Exercise Price (in dollars per share) | $ 34.51 |
41.55 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 41.55 |
Options Outstanding at March 31, 2017 (in shares) | shares | 670 |
Weighted-Average Remaining Contractual Life (in years) | 4 years 6 months 14 days |
Weighted-Average Exercise Price (in dollars per share) | $ 41.55 |
Options Exercisable at March 31, 2017 (in shares) | shares | 670 |
Weighted- Average Exercise Price (in dollars per share) | $ 41.55 |
43.30 - 45.39 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 43.30 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 45.39 |
Options Outstanding at March 31, 2017 (in shares) | shares | 65 |
Weighted-Average Remaining Contractual Life (in years) | 7 years 11 months 15 days |
Weighted-Average Exercise Price (in dollars per share) | $ 44.47 |
Options Exercisable at March 31, 2017 (in shares) | shares | 32 |
Weighted- Average Exercise Price (in dollars per share) | $ 44.40 |
45.44 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 45.44 |
Options Outstanding at March 31, 2017 (in shares) | shares | 689 |
Weighted-Average Remaining Contractual Life (in years) | 7 years 6 months 14 days |
Weighted-Average Exercise Price (in dollars per share) | $ 45.44 |
Options Exercisable at March 31, 2017 (in shares) | shares | 363 |
Weighted- Average Exercise Price (in dollars per share) | $ 45.44 |
46.59 - 55.58 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 46.59 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 55.58 |
Options Outstanding at March 31, 2017 (in shares) | shares | 250 |
Weighted-Average Remaining Contractual Life (in years) | 6 years 9 months 3 days |
Weighted-Average Exercise Price (in dollars per share) | $ 49.89 |
Options Exercisable at March 31, 2017 (in shares) | shares | 192 |
Weighted- Average Exercise Price (in dollars per share) | $ 50.31 |
56.57 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | $ 56.57 |
Options Outstanding at March 31, 2017 (in shares) | shares | 650 |
Weighted-Average Remaining Contractual Life (in years) | 5 years 6 months 10 days |
Weighted-Average Exercise Price (in dollars per share) | $ 56.57 |
Options Exercisable at March 31, 2017 (in shares) | shares | 650 |
Weighted- Average Exercise Price (in dollars per share) | $ 56.57 |
58.25 - 87.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 58.25 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 87.20 |
Options Outstanding at March 31, 2017 (in shares) | shares | 1,040 |
Weighted-Average Remaining Contractual Life (in years) | 6 years 5 months 1 day |
Weighted-Average Exercise Price (in dollars per share) | $ 84.11 |
Options Exercisable at March 31, 2017 (in shares) | shares | 894 |
Weighted- Average Exercise Price (in dollars per share) | $ 83.80 |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Unit Activity (Detail) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Number of Awards | |||
Number of Awards, Non-vested beginning balance (in shares) | 2,212 | 1,412 | 1,202 |
Number of Awards, Granted (in shares) | 1,333 | 1,543 | 815 |
Number of Awards, Vested (in shares) | (975) | (547) | (491) |
Number of Awards, Forfeited (in shares) | (174) | (196) | (114) |
Number of Awards, Non-vested ending balance (in shares) | 2,396 | 2,212 | 1,412 |
Weighted Average Grant Date Fair Value | |||
Weighted Average grant Date Fair Value, Non-vested beginning balance (in dollars per share) | $ 43.43 | $ 56.82 | $ 65.63 |
Weighted Average grant Date Fair Value, Granted (in dollars per share) | 50.66 | 37.27 | 46.62 |
Weighted Average grant Date Fair Value, Vested (in dollars per share) | 51.35 | 38.38 | 59.22 |
Weighted Average grant Date Fair Value, Forfeited (in dollars per share) | 43.56 | 49.24 | 63.70 |
Weighted Average grant Date Fair Value, Non-vested ending balance (in dollars per share) | $ 45.53 | $ 43.43 | $ 56.82 |
Stock Plans - Stock-Based Compe
Stock Plans - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 73,928 | $ 64,196 | $ 60,663 |
Cost of services revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,925 | 3,106 | 2,930 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 34,005 | 28,557 | 26,853 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 7,335 | 6,722 | 5,908 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 28,663 | $ 25,811 | $ 24,972 |
Stock Plans - Performance-based
Stock Plans - Performance-based and Market-based Awards (Details) | 12 Months Ended |
Mar. 31, 2017tranche$ / sharesshares | |
PSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards, granted (in shares) | 115,000 |
Number of annual tranches | tranche | 3 |
Maximum potential for awards to vest (as a percent) | 200.00% |
Maximum number of awards to vest (in shares) | 230,000 |
Estimated number of awards to vest (in shares) | 132.00% |
Stock options granted, vesting period (in years) | 3 years |
Market performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards, granted (in shares) | 123,000 |
Number of annual tranches | tranche | 3 |
Maximum potential for awards to vest (as a percent) | 200.00% |
Maximum number of awards to vest (in shares) | 246,000 |
Stock options granted, vesting period (in years) | 3 years |
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | $ 57.28 |
Stock Plans - Employee Stock Pu
Stock Plans - Employee Stock Purchase Plan (Details) - USD ($) shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 73,928,000 | $ 64,196,000 | $ 60,663,000 |
Unrecognized stock-based compensation expense | $ 95,364,000 | ||
Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price as a percentage of fair market value | 85.00% | ||
Length of offering period (in months) | 6 months | ||
Maximum employee payroll percent deduction of salary (as a percent) | 10.00% | ||
Maximum amount of stock purchasable by employees within a calendar year | $ 25,000 | ||
Number of shares purchased by employees (in shares) | 243 | 263 | |
Proceeds received | $ 8,634,000 | $ 8,116,000 | |
Compensation expense | 2,620,000 | $ 2,418,000 | $ 2,960,000 |
Unrecognized stock-based compensation expense | $ 1,014,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Domestic | $ (7,698) | $ (6,869) | $ 28,048 |
Foreign | 7,175 | 8,714 | 10,844 |
Income (loss) before income taxes | $ (523) | $ 1,845 | $ 38,892 |
Income Taxes - Components of 53
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Current: | |||
Federal | $ 6,138 | $ 4,983 | $ 1,777 |
State | (977) | 1,076 | 2,533 |
Foreign | 4,818 | 4,982 | 4,791 |
Deferred: | |||
Federal | (11,144) | (9,171) | 4,237 |
State | (56) | 324 | (24) |
Foreign | 158 | (485) | (72) |
Income tax expense (benefit) | $ (1,063) | $ 1,709 | $ 13,242 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Rates and Effective Tax Rates (Detail) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory federal income tax expense (benefit) rate | 35.00% | 35.00% | 35.00% |
State and local income tax expense, net of federal income tax effect | (11.20%) | 11.20% | 3.00% |
Impact of limit on executive compensation | 0.00% | 0.00% | 3.20% |
Foreign earnings taxed at different rates | (501.20%) | 67.90% | 1.00% |
Domestic permanent differences | (368.40%) | 116.80% | 4.10% |
Foreign tax credits | 258.20% | (54.10%) | (2.80%) |
Research credits | 622.20% | (141.20%) | (4.90%) |
Tax reserves | (15.60%) | 8.70% | (5.30%) |
Valuation allowance | 121.40% | 50.10% | 0.00% |
Statutory tax rate changes | (60.80%) | (20.10%) | (0.00%) |
Other differences, net | 123.70% | 18.30% | 0.70% |
Effective income tax expense (benefit) | 203.30% | 92.60% | 34.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred tax assets: | ||
Stock-based compensation | $ 45,867 | $ 40,033 |
Deferred revenue | 11,810 | 12,496 |
Tax credits | 12,810 | 6,970 |
Accrued expenses | 1,249 | 1,155 |
Allowance for doubtful accounts and other reserves | 601 | 753 |
Less: valuation allowance | (1,796) | (2,772) |
Total deferred tax assets | 70,541 | 58,635 |
Deferred tax liabilities: | ||
Depreciation and amortization | (9,523) | (8,659) |
Net deferred tax asset | $ 61,018 | $ 49,976 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Tax Credit Carryforward [Line Items] | ||||
Valuation allowances against deferred tax assets | $ 1,796,000 | $ 2,772,000 | ||
Cumulative unremitted foreign earnings | 26,176,000 | |||
Tax benefits relating to share-based payments | 3,682,000 | 3,265,000 | $ 2,141,000 | |
Federal Alternative Minimum Tax credit carryforwards | 1,149,000 | |||
Unrecognized Tax Benefits | ||||
Unrecognized tax benefits which would favorably affect the effective tax rate once recognized | 2,098,000 | 1,952,000 | 2,005,000 | $ 4,113,000 |
Accrued interest and penalties | 400,000 | |||
Remaining unrecognized tax benefits | 0 | |||
New Jersey | ||||
Tax Credit Carryforward [Line Items] | ||||
Valuation allowances against deferred tax assets | 1,796,000 | |||
Decrease to valuation allowances against deferred tax assets | 976,000 | |||
Unrecognized Tax Benefits | ||||
Unrecognized tax benefits which would favorably affect the effective tax rate once recognized | 2,098,000 | |||
Interest and penalties | 61,000 | $ 52,000 | $ 224,000 | |
New Jersey | Other Liabilities | ||||
Unrecognized Tax Benefits | ||||
Unrecognized tax benefits which would favorably affect the effective tax rate once recognized | 1,950,000 | |||
Accrued interest and penalties | 287,000 | |||
New Jersey | Deferred Tax Assets | ||||
Unrecognized Tax Benefits | ||||
Unrecognized tax benefits which would favorably affect the effective tax rate once recognized | 548,000 | |||
Accrued interest and penalties | 113,000 | |||
Research Tax Credit Carryforward | U.S. Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | $ 3,253,000 | |||
Research Tax Credit Carryforward | U.S. Federal | Minimum | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward, expiration year | 2,025 | |||
Research Tax Credit Carryforward | U.S. Federal | Maximum | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward, expiration year | 2,036 | |||
Research Tax Credit Carryforward | New Jersey | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | $ 3,175,000 | |||
Research Tax Credit Carryforward | New Jersey | Minimum | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward, expiration year | 2,017 | |||
Research Tax Credit Carryforward | New Jersey | Maximum | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward, expiration year | 2,023 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Years Subject to Income Tax Examination (Detail) | 12 Months Ended |
Mar. 31, 2017 | |
U.S. Federal | Minimum | |
Income Tax Examination [Line Items] | |
Tax Years Subject to Income Tax Examination | 2,013 |
U.S. Federal | Maximum | |
Income Tax Examination [Line Items] | |
Tax Years Subject to Income Tax Examination | 2,017 |
New Jersey | Minimum | |
Income Tax Examination [Line Items] | |
Tax Years Subject to Income Tax Examination | 2,012 |
New Jersey | Maximum | |
Income Tax Examination [Line Items] | |
Tax Years Subject to Income Tax Examination | 2,017 |
Foreign jurisdictions | Minimum | |
Income Tax Examination [Line Items] | |
Tax Years Subject to Income Tax Examination | 2,012 |
Foreign jurisdictions | Maximum | |
Income Tax Examination [Line Items] | |
Tax Years Subject to Income Tax Examination | 2,017 |
Income Taxes - Reconciliation58
Income Taxes - Reconciliation of Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 1,952 | $ 2,005 | $ 4,113 |
Additions for tax positions related to current fiscal period | 0 | 0 | 490 |
Additions for tax positions related to prior years | 179 | 170 | 252 |
Settlements and effective settlements with tax authorities and remeasurements | 0 | (171) | (2,838) |
Reductions related to the expiration of statutes of limitations | 0 | (64) | 0 |
Decrease resulting from foreign currency translation adjustment | (33) | (12) | |
Increase resulting from foreign currency translation adjustment | 12 | ||
Ending balance | $ 2,098 | $ 1,952 | $ 2,005 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Company contributions to defined contribution plan | $ 2,998 | $ 2,047 | $ 1,955 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - segment | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 1 | ||
Percentage of revenues below which countries other than the U.S. account for | 10.00% | 10.00% | 10.00% |
United States | |||
Segment Reporting Information [Line Items] | |||
Percentage of long-lived assets | 10.00% | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 172,931 | $ 165,841 | $ 159,333 | $ 152,413 | $ 159,565 | $ 155,696 | $ 140,742 | $ 139,123 | $ 650,518 | $ 595,126 | $ 607,543 |
United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 367,423 | 343,015 | 344,931 | ||||||||
Other | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 283,095 | $ 252,111 | $ 262,612 |
Segment Information - Schedul62
Segment Information - Schedule of Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 139,592 | $ 142,641 |
United States | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 131,083 | 135,562 |
Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 8,509 | $ 7,079 |
Selected Quarterly Financial 63
Selected Quarterly Financial Data (unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Total revenue | $ 172,931 | $ 165,841 | $ 159,333 | $ 152,413 | $ 159,565 | $ 155,696 | $ 140,742 | $ 139,123 | $ 650,518 | $ 595,126 | $ 607,543 | ||||||||
Gross margin | 151,557 | 144,675 | 137,676 | 131,418 | 138,768 | 135,267 | 119,803 | 118,576 | 565,326 | 512,414 | 525,475 | ||||||||
Net income (loss) | $ 3,188 | $ (42) | $ (562) | $ (2,044) | $ 5,794 | $ 4,878 | $ (9,236) | $ (1,300) | $ 540 | $ 136 | $ 25,650 | ||||||||
Net income (loss) per common share: | |||||||||||||||||||
Basic (in dollars per share) | $ 0.07 | [1] | $ 0 | [1] | $ (0.01) | [1] | $ (0.05) | [1] | $ 0.13 | [1] | $ 0.11 | [1] | $ (0.20) | [1] | $ (0.03) | [1] | $ 0.01 | $ 0 | $ 0.56 |
Diluted (in dollars per share) | $ 0.07 | [1] | $ 0 | [1] | $ (0.01) | [1] | $ (0.05) | [1] | $ 0.13 | [1] | $ 0.10 | [1] | $ (0.20) | [1] | $ (0.03) | [1] | $ 0.01 | $ 0 | $ 0.54 |
[1] | Per common share amounts for the quarters and full year have been calculated separately. Accordingly, quarterly amounts do not add to the annual amount because of differences in the weighted average common shares outstanding during each period used in the basic and diluted calculations. |
Schedule II - Valuation and Q64
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 315 | $ 104 | $ 111 |
Charged (Credited) to Costs and Expenses | (161) | 247 | 1 |
Deductions | 51 | 36 | 8 |
Balance at End of Year | 103 | 315 | 104 |
Valuation allowance for deferred taxes | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 2,772 | 1,343 | 1,382 |
Charged (Credited) to Costs and Expenses | (976) | 1,429 | (39) |
Deductions | 0 | 0 | 0 |
Balance at End of Year | $ 1,796 | $ 2,772 | $ 1,343 |