Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'CVLT | ' |
Entity Registrant Name | 'COMMVAULT SYSTEMS INC | ' |
Entity Central Index Key | '0001169561 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 47,282,467 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $462,167 | $433,964 |
Short-term investments | 22,982 | 1,948 |
Trade accounts receivable, less allowance for doubtful accounts of $111 at September 30, 2013 and $103 at March 31, 2013 | 86,785 | 85,033 |
Prepaid expenses and other current assets | 13,154 | 15,225 |
Deferred tax assets, net | 21,698 | 19,328 |
Total current assets | 606,786 | 555,498 |
Deferred tax assets, net | 23,761 | 21,166 |
Property and equipment, net | 50,919 | 21,112 |
Other assets | 6,845 | 7,078 |
Total assets | 688,311 | 604,854 |
Current liabilities: | ' | ' |
Accounts payable | 4,129 | 3,860 |
Accrued liabilities | 54,841 | 55,577 |
Deferred revenue | 157,103 | 152,967 |
Total current liabilities | 216,073 | 212,404 |
Deferred revenue, less current portion | 34,117 | 31,303 |
Other liabilities | 7,203 | 7,130 |
Commitments and contingencies (Note 5) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding at September 30, 2013 and March 31, 2013 | ' | ' |
Common stock, $0.01 par value: 250,000 shares authorized, 47,075 shares and 46,397 shares issued and outstanding at September 30, 2013 and March 31, 2013, respectively | 471 | 464 |
Additional paid-in capital | 438,622 | 391,772 |
Accumulated deficit | -7,114 | -37,930 |
Accumulated other comprehensive loss | -1,061 | -289 |
Total stockholders' equity | 430,918 | 354,017 |
Total liabilities and stockholders' equity | $688,311 | $604,854 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Allowance for doubtful trade accounts receivable | $111 | $103 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 47,075 | 46,397 |
Common stock, shares outstanding | 47,075 | 46,397 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Software | $70,831 | $59,219 | $136,130 | $113,454 |
Services | 71,032 | 58,943 | 140,141 | 115,975 |
Total revenues | 141,863 | 118,162 | 276,271 | 229,429 |
Cost of revenues: | ' | ' | ' | ' |
Software | 636 | 644 | 1,291 | 1,322 |
Services | 17,520 | 14,699 | 34,643 | 29,311 |
Total cost of revenues | 18,156 | 15,343 | 35,934 | 30,633 |
Gross margin | 123,707 | 102,819 | 240,337 | 198,796 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 67,147 | 55,700 | 134,348 | 112,087 |
Research and development | 13,344 | 11,431 | 26,195 | 22,382 |
General and administrative | 15,298 | 12,161 | 29,026 | 23,251 |
Depreciation and amortization | 1,498 | 1,174 | 2,951 | 2,307 |
Income from operations | 26,420 | 22,353 | 47,817 | 38,769 |
Interest income | 213 | 261 | 455 | 497 |
Income before income taxes | 26,633 | 22,614 | 48,272 | 39,266 |
Income tax expense | 9,279 | 8,715 | 17,456 | 15,242 |
Net income | $17,354 | $13,899 | $30,816 | $24,024 |
Net income per common share: | ' | ' | ' | ' |
Basic | $0.37 | $0.31 | $0.66 | $0.53 |
Diluted | $0.35 | $0.29 | $0.62 | $0.50 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic | 46,910 | 45,106 | 46,727 | 44,934 |
Diluted | 49,745 | 47,815 | 49,533 | 47,720 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $17,354 | $13,899 | $30,816 | $24,024 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 844 | 888 | -772 | 366 |
Comprehensive income | $18,198 | $14,787 | $30,044 | $24,390 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid - In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
In Thousands | |||||
Beginning Balance at Mar. 31, 2013 | $354,017 | $464 | $391,772 | ($37,930) | ($289) |
Beginning Balance (in shares) at Mar. 31, 2013 | ' | 46,397 | ' | ' | ' |
Stock-based compensation, net | 20,290 | ' | 20,290 | ' | ' |
Tax benefits relating to stock-based payments | 16,897 | ' | 16,897 | ' | ' |
Exercise of common stock options and vesting of restricted stock units (in shares) | ' | 678 | ' | ' | ' |
Exercise of common stock options and vesting of restricted stock units | 9,670 | 7 | 9,663 | ' | ' |
Net income | 30,816 | ' | ' | 30,816 | ' |
Foreign currency translation adjustment | -772 | ' | ' | ' | -772 |
Ending Balance at Sep. 30, 2013 | $430,918 | $471 | $438,622 | ($7,114) | ($1,061) |
Ending Balance (in shares) at Sep. 30, 2013 | ' | 47,075 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $30,816 | $24,024 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 3,017 | 2,361 |
Noncash stock-based compensation | 20,290 | 12,077 |
Excess tax benefits from stock-based compensation | -16,843 | -7,287 |
Deferred income taxes | -1,208 | 2,816 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | -1,402 | -1,618 |
Prepaid expenses and other current assets | 2,108 | 795 |
Other assets | 197 | -1,704 |
Accounts payable | -138 | 509 |
Accrued liabilities | 5,524 | 2,819 |
Deferred revenue | 6,760 | 7,371 |
Other liabilities | -65 | 180 |
Net cash provided by operating activities | 49,056 | 42,343 |
Cash flows from investing activities | ' | ' |
Purchase of short-term investments | -22,982 | -1,948 |
Proceeds from maturity of short-term investments | 1,948 | 3,146 |
Purchases for corporate campus headquarters | -23,872 | -612 |
Purchase of property and equipment | -2,586 | -2,742 |
Net cash used in investing activities | -47,492 | -2,156 |
Cash flows from financing activities | ' | ' |
Proceeds from the exercise of stock options | 9,670 | 7,196 |
Excess tax benefits from stock-based compensation | 16,843 | 7,287 |
Net cash provided by financing activities | 26,513 | 14,483 |
Effects of exchange rate - changes in cash | 126 | 227 |
Net increase in cash and cash equivalents | 28,203 | 54,897 |
Cash and cash equivalents at beginning of period | 433,964 | 297,088 |
Cash and cash equivalents at end of period | 462,167 | 351,985 |
Supplemental disclosures of cash flow information | ' | ' |
Purchases for corporate campus headquarters in accounts payable and accrued expenses | $6,369 | ' |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |
Sep. 30, 2013 | ||
Basis of Presentation | ' | |
1 | Basis of Presentation | |
CommVault Systems, Inc. and its subsidiaries (“CommVault” or the “Company”) is a leading provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with high-performance data protection, including backup and recovery; data migration and archiving; snapshot management and replication of data; integrated source, and target data deduplication; eDiscovery and compliance solutions; self-service access; a secure virtual repository using Simpana ContentStore; enterprise-wide search capabilities; protection, recovery and discovery of data in virtual server environments; and robust built-in analytics and troubleshooting tools. The Company’s unified suite of data and information management software applications, which is sold under the Simpana brand, shares an underlying architecture that has been developed to minimize the cost and complexity of managing data on globally distributed and networked storage infrastructures. The Company also provides its customers with a broad range of professional and customer support services. | ||
The consolidated financial statements as of September 30, 2013 and for the three and six months ended September 30, 2013 and 2012 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2013. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. | ||
The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, allowance for doubtful accounts, income taxes and related reserves and stock-based compensation. Actual results could differ from those estimates. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2 | Summary of Significant Accounting Policies | ||||||||||||||||
There have been no significant changes in the Company’s accounting policies during the six months ended September 30, 2013 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2013. | |||||||||||||||||
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 software 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-copy basis, on a capacity basis or as site licenses. 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. 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. Under the sell-through model the Company recognizes 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, assessment and design services, installation services and training. 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, assessment and design services and installation 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, assessment and design services and installation services are based upon a daily or weekly rate and are recognized when the services are completed. Training includes 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. Training fees are recognized as revenue after the training 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. | ||||||||||||||||
• | Collection is probable. Probability of collection is assessed on a customer-by-customer basis. Each new customer undergoes a credit review process to evaluate its financial position and ability to pay. If the Company determines from the outset of an arrangement that collection is not probable based upon the review process, revenue is recognized at the earlier of when cash is collected or when sufficient credit becomes available, assuming all of the other basic revenue recognition criteria are met. | ||||||||||||||||
The Company’s sales arrangements generally do not include acceptance clauses. However, if an arrangement does include an acceptance clause, revenue for such an arrangement is deferred and recognized upon acceptance. Acceptance occurs upon the earliest of receipt of a written customer acceptance, waiver of customer acceptance or expiration of the acceptance period. | |||||||||||||||||
Deferred Revenue | |||||||||||||||||
Deferred revenues represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from the billing of annual customer support agreements, as well as billings for other professional services fees that have not yet been performed by the Company and billings for license fees that are deferred due to one of the revenue recognition criteria not being met. The value of deferred revenues will increase or decrease based on the timing of invoices and recognition of revenue. The Company expenses internal direct and incremental costs related to contract acquisition and origination as incurred. | |||||||||||||||||
Deferred revenue consists of the following: | |||||||||||||||||
September 30, 2013 | March 31, 2013 | ||||||||||||||||
Current: | |||||||||||||||||
Deferred software revenue | $ | 4,700 | $ | 9,193 | |||||||||||||
Deferred services revenue | 152,403 | 143,774 | |||||||||||||||
$ | 157,103 | $ | 152,967 | ||||||||||||||
Non-current: | |||||||||||||||||
Deferred services revenue | $ | 34,117 | $ | 31,303 | |||||||||||||
Total Deferred Revenue | $ | 191,220 | $ | 184,270 | |||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The Company considers all liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. As of September 30, 2013, the Company’s cash equivalents consisted of money market funds and US Treasury Bills. | |||||||||||||||||
Short-term Investments | |||||||||||||||||
Short-term investments consist of investments with maturities of twelve months or less that do not meet the criteria of 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 and purchase of investments are classified as investing activities in the Company’s Consolidated Statements of Cash Flows. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying amounts of the Company’s cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. As of September 30, 2013, the Company’s short-term investments balance consisted of US 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 tables summarize the fair value of the Company’s financial assets measured at fair value at September 30, 2013 and March 31, 2013: | |||||||||||||||||
30-Sep-13 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 359,427 | $ | 2,000 | — | $ | 361,427 | ||||||||||
Short-term Investments | — | $ | 22,999 | — | $ | 22,999 | |||||||||||
31-Mar-13 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 342,458 | — | — | $ | 342,458 | |||||||||||
Short-term Investments | $ | 1,948 | — | — | $ | 1,948 | |||||||||||
Valuations of level 2 instruments can be verified to quoted prices, recent trading activity for identical or similar instruments, or broker or dealer quotations. There were no transfers between levels in any periods presented. | |||||||||||||||||
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 have historically not been significant. | |||||||||||||||||
Sales through the Company’s reseller and original equipment manufacturer agreements with Dell Inc. (“Dell”) totaled 20% and 21% of total revenues for the six months ended September 30, 2013 and 2012, respectively. Dell accounted for 12% and 23% of accounts receivable as of September 30, 2013 and March 31, 2013, respectively. | |||||||||||||||||
Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 31% and 28% of total revenues for the six months ended September 30, 2013 and 2012, respectively. Arrow accounted for approximately 43% and 39% of total accounts receivable as of September 30, 2013 and March 31, 2013, respectively. | |||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This amendment requires an entity to present, either on the face of the financial statement or in the notes, the effects on the line items of net income due to significant amounts reclassified out of accumulated other comprehensive income, as well as provide cross-references to other required reclassification disclosures, where applicable. The adoption of the new pronouncement on April 1, 2013 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. There have been no amounts reclassified out of accumulated other comprehensive income in any periods presented. | |||||||||||||||||
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. |
Property_and_Equipment
Property and Equipment | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property and Equipment | ' | ||||||||
3 | Property and Equipment | ||||||||
Property and equipment consist of the following: | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Computers, servers and other equipment | $ | 27,349 | $ | 25,513 | |||||
Construction in process | 40,404 | 10,162 | |||||||
Leasehold improvements | 8,617 | 8,279 | |||||||
Furniture and fixtures | 2,319 | 2,183 | |||||||
Purchased software | 2,018 | 1,970 | |||||||
80,707 | 48,107 | ||||||||
Less: Accumulated depreciation and amortization | (29,788 | ) | (26,995 | ) | |||||
$ | 50,919 | $ | 21,112 | ||||||
Construction in process at September 30, 2013 is comprised of the purchase of land and related design and construction cost for the Company’s planned corporate campus headquarters, which the Company expects to finalize over approximately the next 14-20 months. The cost of land included in construction in process at September 30, 2013 is $5,915. |
Net_Income_per_Common_Share
Net Income per Common Share | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Net Income per Common Share | ' | ||||||||||||||||
4 | 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 and the vesting of restricted stock units. 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: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 17,354 | $ | 13,899 | $ | 30,816 | $ | 24,024 | |||||||||
Basic net income per common share: | |||||||||||||||||
Basic weighted average shares outstanding | 46,910 | 45,106 | 46,727 | 44,934 | |||||||||||||
Basic net income per common share | $ | 0.37 | $ | 0.31 | $ | 0.66 | $ | 0.53 | |||||||||
Diluted net income per common share: | |||||||||||||||||
Basic weighted average shares outstanding | 46,910 | 45,106 | 46,727 | 44,934 | |||||||||||||
Dilutive effect of stock options and restricted stock units | 2,835 | 2,709 | 2,806 | 2,786 | |||||||||||||
Diluted weighted average shares outstanding | 49,745 | 47,815 | 49,533 | 47,720 | |||||||||||||
Diluted net income per common share | $ | 0.35 | $ | 0.29 | $ | 0.62 | $ | 0.5 | |||||||||
The diluted weighted average shares outstanding in the table above exclude outstanding stock options and restricted stock units totaling approximately 316 and 1,144 for the three months ended September 30, 2013 and 2012, respectively, and 311 and 1,085 for the six months ended September 30, 2013 and 2012, respectively, because the effect would have been anti-dilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies | ' | |
5 | Commitments and Contingencies | |
In the normal course of its business, the Company may be involved in various claims, negotiations and legal actions. As of September 30, 2013, the Company is not aware of any asserted or unasserted claims, negotiations and legal actions for which a loss is considered reasonably possible. |
Capitalization
Capitalization | 6 Months Ended | |
Sep. 30, 2013 | ||
Capitalization | ' | |
6 | Capitalization | |
As of September 30, 2013 the Company has repurchased approximately $117,157 of common stock under the stock repurchase authorization and may repurchase an additional $102,843 of its common stock under the current program through March 31, 2014. The Company did not repurchase any shares during the six months ended September 30, 2013. |
Stock_Plans
Stock Plans | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Plans | ' | ||||||||||||||||
7 | Stock Plans | ||||||||||||||||
The following summarizes the activity by award type for the Company’s two stock incentive plans, the 1996 Stock Option Plan and the 2006 Long-Term Stock Incentive Plan, for the six months ended September 30, 2013: | |||||||||||||||||
Options | Number | Weighted- | Weighted- | Aggregate | |||||||||||||
of | Average | Average | Intrinsic | ||||||||||||||
Options | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(Years) | |||||||||||||||||
Outstanding as of March 31, 2013 | 6,439 | $ | 28.31 | ||||||||||||||
Options granted | 41 | 76.02 | |||||||||||||||
Options exercised | (510 | ) | 18.97 | ||||||||||||||
Options forfeited | (46 | ) | 44.42 | ||||||||||||||
Options expired | — | — | |||||||||||||||
Outstanding as of September 30, 2013 | 5,924 | $ | 29.32 | 5.98 | $ | 347,154 | |||||||||||
Vested or expected to vest as of September 30, 2013 | 5,846 | $ | 28.73 | 5.91 | $ | 344,692 | |||||||||||
Exercisable as of September 30, 2013 | 3,681 | $ | 16.7 | 4.46 | $ | 262,186 | |||||||||||
The weighted average fair value of stock options granted was $32.48 per option and $29.32 per option during the three and six months ended September 30, 2013, respectively, and $20.12 per option and $20.34 per option during the three and six months ended September 30, 2012, respectively. The total intrinsic value of options exercised was $6,613 and $9,670 as of the three and six months ended September 30, 2013, respectively, and $13,368 and $21,677 as of the three and six months ended September 30, 2012, respectively. The Company’s policy is to issue new shares upon exercise of options as the Company does not hold shares in treasury. | |||||||||||||||||
The assumptions used in the Black-Scholes option-pricing model are as follows: | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Dividend yield | None | None | None | None | |||||||||||||
Expected volatility | 44%-45% | 46%-48% | 44%-47% | 45%-48% | |||||||||||||
Weighted average expected volatility | 44% | 47% | 45% | 47% | |||||||||||||
Risk-free interest rates | 1.43%-1.65% | 0.60%-0.97% | 0.70%-1.65% | 0.60%-0.97% | |||||||||||||
Weighted average expected life (in years) | 4.6 | 5.7 | 4.6 | 5.5 | |||||||||||||
Restricted stock unit activity for the six months ended September 30, 2013 is as follows: | |||||||||||||||||
Non-vested Restricted Stock Units | Number of | Weighted | |||||||||||||||
Awards | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Non-vested as of March 31, 2013 | 1,198 | $ | 46.45 | ||||||||||||||
Awarded | 51 | 78.42 | |||||||||||||||
Vested | (168 | ) | 32.84 | ||||||||||||||
Forfeited | (44 | ) | 47.34 | ||||||||||||||
Non-vested as of September 30, 2013 | 1,037 | $ | 50.2 | ||||||||||||||
The weighted average fair value of restricted stock units awarded was $84.85 per unit and $78.42 per unit during the three and six months ended September 30, 2013, respectively, and $47.83 per unit and $48.94 per unit during the three and six months ended September 30, 2012. | |||||||||||||||||
The following table presents the stock-based compensation expense included in cost of services revenue, sales and marketing, research and development and general and administrative expenses for the three and six months ended September 30, 2013 and 2012. | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of services revenue | $ | 293 | $ | 195 | $ | 591 | $ | 379 | |||||||||
Sales and marketing | 4,085 | 2,786 | 8,346 | 5,422 | |||||||||||||
Research and development | 939 | 638 | 1,896 | 1,262 | |||||||||||||
General and administrative | 5,465 | 2,530 | 9,457 | 5,014 | |||||||||||||
Stock-based compensation expense | $ | 10,782 | $ | 6,149 | $ | 20,290 | $ | 12,077 | |||||||||
As of September 30, 2013, there was approximately $77,935 of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested stock option and restricted stock unit awards that is expected to be recognized over a weighted average period of 2.34 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. |
Income_Taxes
Income Taxes | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Income Taxes | ' | ||||
8 | Income Taxes | ||||
Income Tax Expense | |||||
Income tax expense was $9,279 and $17,456 in the three and six months ended September 30, 2013, respectively with an effective tax rate of 35% and 36% in the three and six months ended September 30, 2013, respectively. The effective rate in the three and six months ended September 30, 2013 approximates the federal statutory rate but is impacted by state income taxes and permanent differences in both the United States and foreign jurisdictions partially offset by income tax benefits from research and development tax credits, foreign tax credits, and domestic production activities deductions. | |||||
The provision for income taxes for the three and six months ended September 30, 2012 was $8,715 and $15,242 respectively, with effective tax rates of 39% in the three and six months ended September 30, 2012. The effective rate in the three and six months ended September 30, 2012 is higher than the expected federal statutory rate of 35% primarily due to state income taxes and permanent differences in both the United States and foreign jurisdictions partially offset by income tax benefits from foreign tax credits and domestic production activities deductions. | |||||
Unrecognized Tax Benefits | |||||
The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in each of its tax jurisdictions. The number of years with open tax audits varies depending on the tax jurisdiction. A number of years may lapse before a particular matter is audited and finally resolved. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | |||||
Balance at March 31, 2013 | $ | 4,570 | |||
Additions for tax positions related to fiscal 2014 | 205 | ||||
Additions for tax positions related to prior years | — | ||||
Settlements | — | ||||
Reductions related to the expiration of statutes of limitations | — | ||||
Foreign currency translation adjustment | 48 | ||||
Balance at September 30, 2013 | $ | 4,823 | |||
All of the Company’s unrecognized tax benefits at September 30, 2013 of $4,823, if recognized, would favorably impact 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. Accordingly, the Company has recorded its unrecognized tax benefits of $4,823 and $4,570 and the related accrued interest and penalties of $930 and $842 in Other Liabilities on the Consolidated Balance Sheet at September 30, 2013 and March 31, 2013, respectively. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. | |||||
Other Tax Items | |||||
The Company conducts business globally and as a result, files income tax returns in the United States and in various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as the United States, Australia, Canada, Germany, Netherlands and United Kingdom. The Company’s U.S. Federal income tax return for the fiscal year ended March 31, 2011 is currently under audit by the U.S. Internal Revenue Service. In addition, the Company’s German subsidiary’s income tax returns for the fiscal years ended March 31, 2006 through March 31, 2010 are currently under audit by the German tax authorities. We believe that it is reasonably possible that approximately $0.1 million of our currently remaining unrecognized tax benefits and approximately less than $0.1 million of related accrued interest and penalties may be realized by the end of fiscal 2014 as a result of the lapse of the statute of limitations. |
Subsequent_Events
Subsequent Events | 6 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events | ' | |
9 | Subsequent Events | |
On October 24, 2013, the Company’s Board of Directors authorized a $47,157 increase to the Company’s existing stock repurchase program and extended the expiration of the stock repurchase program to March 31, 2015. As of October 31, 2013, the Company has repurchased $117,157 of common stock out of the $267,157 in total that is now authorized under its stock repurchase program. As a result, the Company may repurchase an additional $150,000 of its common stock through March 31, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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 software 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-copy basis, on a capacity basis or as site licenses. 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. 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. Under the sell-through model the Company recognizes 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, assessment and design services, installation services and training. 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, assessment and design services and installation 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, assessment and design services and installation services are based upon a daily or weekly rate and are recognized when the services are completed. Training includes 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. Training fees are recognized as revenue after the training 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. | ||||||||||||||||
• | Collection is probable. Probability of collection is assessed on a customer-by-customer basis. Each new customer undergoes a credit review process to evaluate its financial position and ability to pay. If the Company determines from the outset of an arrangement that collection is not probable based upon the review process, revenue is recognized at the earlier of when cash is collected or when sufficient credit becomes available, assuming all of the other basic revenue recognition criteria are met. | ||||||||||||||||
The Company’s sales arrangements generally do not include acceptance clauses. However, if an arrangement does include an acceptance clause, revenue for such an arrangement is deferred and recognized upon acceptance. Acceptance occurs upon the earliest of receipt of a written customer acceptance, waiver of customer acceptance or expiration of the acceptance period. | |||||||||||||||||
Deferred Revenue | ' | ||||||||||||||||
Deferred 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, as well as billings for other professional services fees that have not yet been performed by the Company and billings for license fees that are deferred due to one of the revenue recognition criteria not being met. The value of deferred revenues will increase or decrease based on the timing of invoices and recognition of revenue. The Company expenses internal direct and incremental costs related to contract acquisition and origination as incurred. | |||||||||||||||||
Deferred revenue consists of the following: | |||||||||||||||||
September 30, 2013 | March 31, 2013 | ||||||||||||||||
Current: | |||||||||||||||||
Deferred software revenue | $ | 4,700 | $ | 9,193 | |||||||||||||
Deferred services revenue | 152,403 | 143,774 | |||||||||||||||
$ | 157,103 | $ | 152,967 | ||||||||||||||
Non-current: | |||||||||||||||||
Deferred services revenue | $ | 34,117 | $ | 31,303 | |||||||||||||
Total Deferred Revenue | $ | 191,220 | $ | 184,270 | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The Company considers all liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. As of September 30, 2013, the Company’s cash equivalents consisted of money market funds and US Treasury Bills. | |||||||||||||||||
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 of 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 and purchase of investments are classified as investing activities in the Company’s Consolidated Statements of Cash Flows. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying amounts of the Company’s cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. As of September 30, 2013, the Company’s short-term investments balance consisted of US 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 tables summarize the fair value of the Company’s financial assets measured at fair value at September 30, 2013 and March 31, 2013: | |||||||||||||||||
30-Sep-13 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 359,427 | $ | 2,000 | — | $ | 361,427 | ||||||||||
Short-term Investments | — | $ | 22,999 | — | $ | 22,999 | |||||||||||
31-Mar-13 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 342,458 | — | — | $ | 342,458 | |||||||||||
Short-term Investments | $ | 1,948 | — | — | $ | 1,948 | |||||||||||
Valuations of level 2 instruments can be verified to quoted prices, recent trading activity for identical or similar instruments, or broker or dealer quotations. There were no transfers between levels in any periods presented. | |||||||||||||||||
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 have historically not been significant. | |||||||||||||||||
Sales through the Company’s reseller and original equipment manufacturer agreements with Dell Inc. (“Dell”) totaled 20% and 21% of total revenues for the six months ended September 30, 2013 and 2012, respectively. Dell accounted for 12% and 23% of accounts receivable as of September 30, 2013 and March 31, 2013, respectively. | |||||||||||||||||
Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 31% and 28% of total revenues for the six months ended September 30, 2013 and 2012, respectively. Arrow accounted for approximately 43% and 39% of total accounts receivable as of September 30, 2013 and March 31, 2013, respectively. | |||||||||||||||||
Recently Issued Accounting Standards | ' | ||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This amendment requires an entity to present, either on the face of the financial statement or in the notes, the effects on the line items of net income due to significant amounts reclassified out of accumulated other comprehensive income, as well as provide cross-references to other required reclassification disclosures, where applicable. The adoption of the new pronouncement on April 1, 2013 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. There have been no amounts reclassified out of accumulated other comprehensive income in any periods presented. | |||||||||||||||||
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_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Deferred Revenue | ' | ||||||||||||||||
Deferred revenue consists of the following: | |||||||||||||||||
September 30, 2013 | March 31, 2013 | ||||||||||||||||
Current: | |||||||||||||||||
Deferred software revenue | $ | 4,700 | $ | 9,193 | |||||||||||||
Deferred services revenue | 152,403 | 143,774 | |||||||||||||||
$ | 157,103 | $ | 152,967 | ||||||||||||||
Non-current: | |||||||||||||||||
Deferred services revenue | $ | 34,117 | $ | 31,303 | |||||||||||||
Total Deferred Revenue | $ | 191,220 | $ | 184,270 | |||||||||||||
Financial Assets Measured at Fair Value | ' | ||||||||||||||||
The following tables summarize the fair value of the Company’s financial assets measured at fair value at September 30, 2013 and March 31, 2013: | |||||||||||||||||
30-Sep-13 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 359,427 | $ | 2,000 | — | $ | 361,427 | ||||||||||
Short-term Investments | — | $ | 22,999 | — | $ | 22,999 | |||||||||||
31-Mar-13 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 342,458 | — | — | $ | 342,458 | |||||||||||
Short-term Investments | $ | 1,948 | — | — | $ | 1,948 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property and Equipment | ' | ||||||||
Property and equipment consist of the following: | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Computers, servers and other equipment | $ | 27,349 | $ | 25,513 | |||||
Construction in process | 40,404 | 10,162 | |||||||
Leasehold improvements | 8,617 | 8,279 | |||||||
Furniture and fixtures | 2,319 | 2,183 | |||||||
Purchased software | 2,018 | 1,970 | |||||||
80,707 | 48,107 | ||||||||
Less: Accumulated depreciation and amortization | (29,788 | ) | (26,995 | ) | |||||
$ | 50,919 | $ | 21,112 | ||||||
Net_Income_per_Common_Share_Ta
Net Income per Common Share (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 17,354 | $ | 13,899 | $ | 30,816 | $ | 24,024 | |||||||||
Basic net income per common share: | |||||||||||||||||
Basic weighted average shares outstanding | 46,910 | 45,106 | 46,727 | 44,934 | |||||||||||||
Basic net income per common share | $ | 0.37 | $ | 0.31 | $ | 0.66 | $ | 0.53 | |||||||||
Diluted net income per common share: | |||||||||||||||||
Basic weighted average shares outstanding | 46,910 | 45,106 | 46,727 | 44,934 | |||||||||||||
Dilutive effect of stock options and restricted stock units | 2,835 | 2,709 | 2,806 | 2,786 | |||||||||||||
Diluted weighted average shares outstanding | 49,745 | 47,815 | 49,533 | 47,720 | |||||||||||||
Diluted net income per common share | $ | 0.35 | $ | 0.29 | $ | 0.62 | $ | 0.5 | |||||||||
Stock_Plans_Tables
Stock Plans (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||
The following summarizes the activity by award type for the Company’s two stock incentive plans, the 1996 Stock Option Plan and the 2006 Long-Term Stock Incentive Plan, for the six months ended September 30, 2013: | |||||||||||||||||
Options | Number | Weighted- | Weighted- | Aggregate | |||||||||||||
of | Average | Average | Intrinsic | ||||||||||||||
Options | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(Years) | |||||||||||||||||
Outstanding as of March 31, 2013 | 6,439 | $ | 28.31 | ||||||||||||||
Options granted | 41 | 76.02 | |||||||||||||||
Options exercised | (510 | ) | 18.97 | ||||||||||||||
Options forfeited | (46 | ) | 44.42 | ||||||||||||||
Options expired | — | — | |||||||||||||||
Outstanding as of September 30, 2013 | 5,924 | $ | 29.32 | 5.98 | $ | 347,154 | |||||||||||
Vested or expected to vest as of September 30, 2013 | 5,846 | $ | 28.73 | 5.91 | $ | 344,692 | |||||||||||
Exercisable as of September 30, 2013 | 3,681 | $ | 16.7 | 4.46 | $ | 262,186 | |||||||||||
Schedule of Stock Option Valuation Assumptions | ' | ||||||||||||||||
The assumptions used in the Black-Scholes option-pricing model are as follows: | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Dividend yield | None | None | None | None | |||||||||||||
Expected volatility | 44%-45% | 46%-48% | 44%-47% | 45%-48% | |||||||||||||
Weighted average expected volatility | 44% | 47% | 45% | 47% | |||||||||||||
Risk-free interest rates | 1.43%-1.65% | 0.60%-0.97% | 0.70%-1.65% | 0.60%-0.97% | |||||||||||||
Weighted average expected life (in years) | 4.6 | 5.7 | 4.6 | 5.5 | |||||||||||||
Schedule of Restricted Stock Unit Activity | ' | ||||||||||||||||
Restricted stock unit activity for the six months ended September 30, 2013 is as follows: | |||||||||||||||||
Non-vested Restricted Stock Units | Number of | Weighted | |||||||||||||||
Awards | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Non-vested as of March 31, 2013 | 1,198 | $ | 46.45 | ||||||||||||||
Awarded | 51 | 78.42 | |||||||||||||||
Vested | (168 | ) | 32.84 | ||||||||||||||
Forfeited | (44 | ) | 47.34 | ||||||||||||||
Non-vested as of September 30, 2013 | 1,037 | $ | 50.2 | ||||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table presents the stock-based compensation expense included in cost of services revenue, sales and marketing, research and development and general and administrative expenses for the three and six months ended September 30, 2013 and 2012. | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of services revenue | $ | 293 | $ | 195 | $ | 591 | $ | 379 | |||||||||
Sales and marketing | 4,085 | 2,786 | 8,346 | 5,422 | |||||||||||||
Research and development | 939 | 638 | 1,896 | 1,262 | |||||||||||||
General and administrative | 5,465 | 2,530 | 9,457 | 5,014 | |||||||||||||
Stock-based compensation expense | $ | 10,782 | $ | 6,149 | $ | 20,290 | $ | 12,077 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Reconciliation of Amounts of Unrecognized Tax Benefits | ' | ||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | |||||
Balance at March 31, 2013 | $ | 4,570 | |||
Additions for tax positions related to fiscal 2014 | 205 | ||||
Additions for tax positions related to prior years | — | ||||
Settlements | — | ||||
Reductions related to the expiration of statutes of limitations | — | ||||
Foreign currency translation adjustment | 48 | ||||
Balance at September 30, 2013 | $ | 4,823 | |||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Sources of primary revenue | 2 | ' | ' |
Length of customer support agreement - in years | 1 | ' | ' |
Number of days for other professional services | 90 | ' | ' |
Dell | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of sales in relation to total revenues through Company's reseller and original equipment manufacturer agreement | 20.00% | 21.00% | ' |
Percentage of accounts receivable | 12.00% | ' | 23.00% |
Arrow | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of accounts receivable | 43.00% | ' | 39.00% |
Percentage of sales in relation to total revenues through Company's reseller agreement | 31.00% | 28.00% | ' |
Deferred_Revenue_Detail
Deferred Revenue (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue, Current | $157,103 | $152,967 |
Deferred revenue, Non-current | 34,117 | 31,303 |
Total Deferred Revenue | 191,220 | 184,270 |
Deferred software revenue | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue, Current | 4,700 | 9,193 |
Deferred services revenue | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue, Current | 152,403 | 143,774 |
Deferred revenue, Non-current | $34,117 | $31,303 |
Financial_Assets_Measured_at_F
Financial Assets Measured at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $361,427 | $342,458 |
Short-term investments | 22,999 | 1,948 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 359,427 | 342,458 |
Short-term investments | ' | 1,948 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 2,000 | ' |
Short-term investments | $22,999 | ' |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $80,707 | $48,107 |
Less: Accumulated depreciation and amortization | -29,788 | -26,995 |
Property and equipment, net | 50,919 | 21,112 |
Computers, servers and other equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 27,349 | 25,513 |
Construction in process | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 40,404 | 10,162 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 8,617 | 8,279 |
Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 2,319 | 2,183 |
Purchased software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $2,018 | $1,970 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (Construction in process, USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Construction in process | ' |
Property, Plant and Equipment [Line Items] | ' |
Cost of land | $5,915 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Income Per Common Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' | ' | ' |
Net income | $17,354 | $13,899 | $30,816 | $24,024 |
Basic net income per common share: | ' | ' | ' | ' |
Basic weighted average shares outstanding | 46,910 | 45,106 | 46,727 | 44,934 |
Basic net income per common share | $0.37 | $0.31 | $0.66 | $0.53 |
Diluted net income per common share: | ' | ' | ' | ' |
Basic weighted average shares outstanding | 46,910 | 45,106 | 46,727 | 44,934 |
Dilutive effect of stock options and restricted stock units | 2,835 | 2,709 | 2,806 | 2,786 |
Diluted weighted average shares outstanding | 49,745 | 47,815 | 49,533 | 47,720 |
Diluted net income per common share | $0.35 | $0.29 | $0.62 | $0.50 |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities exclude outstanding stock options and restricted stock units | 316 | 1,144 | 311 | 1,085 |
Capitalization_Additional_Info
Capitalization - Additional Information (Detail) (Common Stock Repurchased, USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Common Stock Repurchased | ' |
Class of Stock [Line Items] | ' |
Value of common stock repurchased under share repurchase program | $117,157 |
Remaining value of common stock to be repurchased under share repurchase program | $102,843 |
Share repurchase program expiration date | 31-Mar-14 |
Activity_for_Companys_Two_Stoc
Activity for Company's Two Stock Incentive Plans (Detail) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Number of Options | ' |
Outstanding beginning balance | 6,439 |
Options granted | 41 |
Options exercised | -510 |
Options forfeited | -46 |
Options expired | ' |
Outstanding ending balance | 5,924 |
Vested or expected to vest as of September 30, 2013 | 5,846 |
Exercisable as of September 30, 2013 | 3,681 |
Weighted- Average Exercise Price | ' |
Outstanding beginning balance | $28.31 |
Options granted | $76.02 |
Options exercised | $18.97 |
Options forfeited | $44.42 |
Options expired | ' |
Outstanding ending balance | $29.32 |
Vested or expected to vest as of September 30, 2013 | $28.73 |
Exercisable as of September 30, 2013 | $16.70 |
Weighted- Average Remaining Contractual Term (Years) | ' |
Outstanding as of September 30, 2013 | '5 years 11 months 23 days |
Vested or expected to vest as of September 30, 2013 | '5 years 10 months 28 days |
Exercisable as of September 30, 2013 | '4 years 5 months 16 days |
Aggregate intrinsic value | ' |
Outstanding as of September 30, 2013 | $347,154 |
Vested or expected to vest as of September 30, 2013 | 344,692 |
Exercisable as of September 30, 2013 | $262,186 |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average fair value of stock options granted per share | $32.48 | $20.12 | $29.32 | $20.34 |
Total intrinsic value of options exercised | $6,613 | $13,368 | $9,670 | $21,677 |
Unrecognized stock-based compensation expense, net of estimated forfeitures | $77,935 | ' | $77,935 | ' |
Awards expected to be recognized over a weighted average period | ' | ' | '2 years 4 months 2 days | ' |
Restricted Stock Units | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average fair value, units awarded | $84.85 | $47.83 | $78.42 | $48.94 |
Assumptions_Used_in_BlackSchol
Assumptions Used in Black-Scholes Option-Pricing Model (Detail) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Black-Scholes Option-Pricing Model Assumptions | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | ' |
Expected volatility, minimum | 44.00% | 46.00% | 44.00% | 45.00% |
Expected volatility, maximum | 45.00% | 48.00% | 47.00% | 48.00% |
Weighted average expected volatility | 44.00% | 47.00% | 45.00% | 47.00% |
Risk-free interest rates, minimum | 1.43% | 0.60% | 0.70% | 0.60% |
Risk-free interest rates, maximum | 1.65% | 0.97% | 1.65% | 0.97% |
Weighted average expected life (in years) | '4 years 7 months 6 days | '5 years 8 months 12 days | '4 years 7 months 6 days | '5 years 6 months |
Restricted_Stock_Unit_Activity
Restricted Stock Unit Activity (Detail) (Restricted Stock Units, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restricted Stock Units | ' | ' | ' | ' |
Number of Awards | ' | ' | ' | ' |
Non-vested beginning balance | ' | ' | 1,198 | ' |
Awarded | ' | ' | 51 | ' |
Vested | ' | ' | -168 | ' |
Forfeited | ' | ' | -44 | ' |
Non-vested ending balance | 1,037 | ' | 1,037 | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' |
Non-vested beginning balance | ' | ' | $46.45 | ' |
Awarded | $84.85 | $47.83 | $78.42 | $48.94 |
Vested | ' | ' | $32.84 | ' |
Forfeited | ' | ' | $47.34 | ' |
Non-vested ending balance | $50.20 | ' | $50.20 | ' |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $10,782 | $6,149 | $20,290 | $12,077 |
Cost of services revenue | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 293 | 195 | 591 | 379 |
Sales and marketing | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 4,085 | 2,786 | 8,346 | 5,422 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 939 | 638 | 1,896 | 1,262 |
General and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $5,465 | $2,530 | $9,457 | $5,014 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' |
Income tax expense | $9,279 | $8,715 | $17,456 | $15,242 | ' |
Effective income tax rate | 35.00% | 39.00% | 36.00% | 39.00% | ' |
Expected federal statutory rate | ' | 35.00% | ' | 35.00% | ' |
Unrecognized tax benefits which would favorably impact the effective tax rate once recognized | 4,823 | ' | 4,823 | ' | 4,570 |
Accrued interest and penalties | 930 | ' | 930 | ' | 842 |
Reasonably possible amount of currently remaining unrecognized tax benefits | 100 | ' | 100 | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' |
Reasonably possible amount of currently remaining accrued interest and penalties | $100 | ' | $100 | ' | ' |
Reconciliation_of_Amounts_of_U
Reconciliation of Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Reconciliation of Unrecognized Tax Benefits [Line Items] | ' |
Beginning Balance | $4,570 |
Additions for tax positions related to fiscal 2014 | 205 |
Additions for tax positions related to prior years | ' |
Settlements | ' |
Reductions related to the expiration of statutes of limitations | ' |
Foreign currency translation adjustment | 48 |
Ending Balance | $4,823 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Common Stock Repurchased, USD $) | 6 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Oct. 24, 2013 | Oct. 31, 2013 |
Subsequent Event | Subsequent Event | ||
Subsequent Event [Line Items] | ' | ' | ' |
Increase in stock repurchase program authorized amount | ' | $47,157 | ' |
Value of common stock repurchased under the share repurchase program | 117,157 | ' | 117,157 |
Maximum amount authorized for repurchase of common stock under the share repurchase program | ' | ' | 267,157 |
Remaining value of common stock to be repurchased under the share repurchase program | $102,843 | $150,000 | ' |
Share repurchase program expiration date | 31-Mar-14 | 31-Mar-15 | ' |