Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jun. 30, 2014 | Jul. 22, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
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 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 45,314,957 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $373,543 | $457,733 |
Short-term investments | 24,974 | 24,976 |
Trade accounts receivable, less allowance for doubtful accounts of $111 at June 30, 2014 and $111 at March 31, 2014 | 100,925 | 118,527 |
Prepaid expenses and other current assets | 10,810 | 11,329 |
Deferred tax assets, net | 18,075 | 17,966 |
Total current assets | 528,327 | 630,531 |
Deferred tax assets, net | 29,160 | 28,737 |
Property and equipment, net | 105,115 | 88,901 |
Other assets | 8,131 | 7,215 |
Total assets | 670,733 | 755,384 |
Current liabilities: | ' | ' |
Accounts payable | 1,417 | 1,218 |
Accrued liabilities | 60,812 | 76,166 |
Deferred revenue | 171,782 | 166,143 |
Total current liabilities | 234,011 | 243,527 |
Deferred revenue, less current portion | 42,110 | 43,432 |
Other liabilities | 4,266 | 5,847 |
Commitments and contingencies (Note 5) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding at June 30, 2014 and March 31, 2014 | 0 | 0 |
Common stock, $0.01 par value: 250,000 shares authorized, 45,244 shares and 47,094 shares issued and outstanding at June 30, 2014 and March 31, 2014, respectively | 453 | 471 |
Additional paid-in capital | 485,948 | 481,083 |
Accumulated deficit | -95,879 | -18,059 |
Accumulated other comprehensive loss | -176 | -917 |
Total stockholders’ equity | 390,346 | 462,578 |
Total liabilities and stockholders’ equity | $670,733 | $755,384 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful trade accounts receivable | $111 | $111 |
Preferred stock, par value (in Dollars per Share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per Share) | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 45,244,000 | 47,094,000 |
Common stock, shares outstanding | 45,244,000 | 47,094,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' |
Software | $72,058 | $65,299 |
Services | 80,585 | 69,109 |
Total revenues | 152,643 | 134,408 |
Cost of revenues: | ' | ' |
Software | 590 | 655 |
Services | 20,337 | 17,123 |
Total cost of revenues | 20,927 | 17,778 |
Gross margin | 131,716 | 116,630 |
Operating expenses: | ' | ' |
Sales and marketing | 80,311 | 67,201 |
Research and development | 15,040 | 12,851 |
General and administrative | 16,505 | 13,728 |
Depreciation and amortization | 1,646 | 1,453 |
Total operating expenses | 113,502 | 95,233 |
Income from operations | 18,214 | 21,397 |
Interest income | 195 | 242 |
Income before income taxes | 18,409 | 21,639 |
Income tax expense | 5,680 | 8,177 |
Net income | $12,729 | $13,462 |
Net income per common share: | ' | ' |
Basic (in Dollars per share) | $0.28 | $0.29 |
Diluted (in Dollars per share) | $0.27 | $0.27 |
Weighted average common shares outstanding: | ' | ' |
Basic (in shares) | 46,067 | 46,542 |
Diluted (in shares) | 47,875 | 49,289 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $12,729 | $13,462 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustment | 741 | -1,616 |
Comprehensive income | $13,470 | $11,846 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid - In Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | |||||
Beginning Balance at Mar. 31, 2014 | $462,578 | $471 | $481,083 | ($18,059) | ($917) |
Beginning Balance (in shares) at Mar. 31, 2014 | ' | 47,094 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Stock-based compensation, net | 14,415 | ' | 14,415 | ' | ' |
Tax benefits relating to stock-based payments | 2,791 | ' | 2,791 | ' | ' |
Exercise of common stock options and vesting of restricted stock units (in shares) | ' | 289 | ' | ' | ' |
Exercise of common stock options and vesting of restricted stock units | 2,177 | 3 | 2,174 | ' | ' |
Repurchase of common stock (in shares) | ' | -2,139 | ' | ' | ' |
Repurchase of common stock | -105,085 | -21 | -14,515 | -90,549 | ' |
Net income | 12,729 | ' | ' | 12,729 | ' |
Other Comprehensive Income | 741 | ' | ' | ' | 741 |
Ending Balance at Jun. 30, 2014 | $390,346 | $453 | $485,948 | ($95,879) | ($176) |
Ending Balance (in shares) at Jun. 30, 2014 | ' | 45,244 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $12,729 | $13,462 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,670 | 1,473 |
Noncash stock-based compensation | 14,415 | 9,508 |
Excess tax benefits from stock-based compensation | -2,789 | -8,285 |
Deferred income taxes | -323 | -3,994 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | 18,136 | 9,050 |
Prepaid expenses and other current assets | 537 | 3,150 |
Other assets | 202 | 47 |
Accounts payable | 195 | 217 |
Accrued liabilities | -11,220 | -7,192 |
Deferred revenue | 3,494 | 7,182 |
Other liabilities | -1,602 | -44 |
Net cash provided by operating activities | 35,444 | 24,574 |
Cash flows from investing activities | ' | ' |
Purchase of short-term investments | -3,998 | 0 |
Proceeds from maturity of short-term investments | 4,000 | 1,948 |
Purchases for corporate campus headquarters | -18,160 | -8,715 |
Purchase of property and equipment | -1,372 | -1,312 |
Net cash used in investing activities | -19,530 | -8,079 |
Cash flows from financing activities | ' | ' |
Repurchase of common stock | -105,085 | 0 |
Debt issuance costs | -1,081 | 0 |
Proceeds from the exercise of stock options | 2,177 | 3,057 |
Excess tax benefits from stock-based compensation | 2,789 | 8,285 |
Net cash provided by (used in) financing activities | -101,200 | 11,342 |
Effects of exchange rate — changes in cash | 1,096 | -2,983 |
Net increase (decrease) in cash and cash equivalents | -84,190 | 24,854 |
Cash and cash equivalents at beginning of period | 457,733 | 433,964 |
Cash and cash equivalents at end of period | 373,543 | 458,818 |
Supplemental disclosures of cash flow information | ' | ' |
Purchases for corporate campus headquarters in accounts payable and accrued expenses | $5,083 | $5,897 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
CommVault Systems, Inc. and its subsidiaries (“CommVault” or the “Company”) is a leading provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with 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 and cloud 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 June 30, 2014 and for the three months ended June 30, 2014 and 2013 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 2014. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. | |
The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, allowance for doubtful accounts, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||
There have been no significant changes in the Company’s accounting policies during the three months ended June 30, 2014 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2014. | |||||||||||||||
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 capacity basis, on a per-copy 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. 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. Educational 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. Educational 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. | |||||||||||||||
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 33% and 29% of total revenues for the three months ended June 30, 2014 and 2013, respectively. Arrow accounted for approximately 37% of total accounts receivable as of June 30, 2014 and 41% of total accounts receivable as of March 31, 2014. | |||||||||||||||
The Company has an original equipment manufacturer agreement with Hitachi Data Systems ("HDS") for them to market, sell and support our software applications and services on a stand-alone basis and/or incorporate our software applications into their own hardware products. HDS accounted for 10% of total revenues for the three months ended June 30, 2014. | |||||||||||||||
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. 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: | |||||||||||||||
June 30, | March 31, | ||||||||||||||
2014 | 2014 | ||||||||||||||
Current: | |||||||||||||||
Deferred software revenue | $ | 324 | $ | 666 | |||||||||||
Deferred services revenue | 171,458 | 165,477 | |||||||||||||
$ | 171,782 | $ | 166,143 | ||||||||||||
Non-current: | |||||||||||||||
Deferred services revenue | $ | 42,110 | $ | 43,432 | |||||||||||
Total Deferred Revenue | $ | 213,892 | $ | 209,575 | |||||||||||
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 June 30, 2014, and March 31, 2014 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 June 30, 2014 and March 31, 2014: | |||||||||||||||
30-Jun-14 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents | $ | 241,380 | — | — | $ | 241,380 | |||||||||
Short-term Investments | $ | — | 24,995 | — | $ | 24,995 | |||||||||
31-Mar-14 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents | $ | 326,952 | — | — | $ | 326,952 | |||||||||
Short-term Investments | $ | — | 24,993 | — | $ | 24,993 | |||||||||
Recently Issued Accounting Standards | |||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This amendment provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. This amendment will be effective for the Company's fiscal year beginning April 1, 2017. Early adoption is not permitted. The Company is currently evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. | |||||||||||||||
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 | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment consist of the following: | |||||||||
June 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Construction in process | $ | 95,618 | $ | 79,182 | |||||
Computers, servers and other equipment | 28,968 | 27,827 | |||||||
Leasehold improvements | 8,943 | 8,911 | |||||||
Furniture and fixtures | 2,457 | 2,409 | |||||||
Purchased software | 2,351 | 2,291 | |||||||
138,337 | 120,620 | ||||||||
Less: Accumulated depreciation and amortization | (33,222 | ) | (31,719 | ) | |||||
$ | 105,115 | $ | 88,901 | ||||||
Construction in process at June 30, 2014 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 nine months. The value of land included in construction in process at June 30, 2014 is $5,915. |
Net_Income_per_Common_Share
Net Income per Common Share | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
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. | |||||||||
The following table sets forth the computation of basic and diluted net income per common share: | |||||||||
Three Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Net income | $ | 12,729 | $ | 13,462 | |||||
Basic net income per common share: | |||||||||
Basic weighted average shares outstanding | 46,067 | 46,542 | |||||||
Basic net income per common share | $ | 0.28 | $ | 0.29 | |||||
Diluted net income per common share: | |||||||||
Basic weighted average shares outstanding | 46,067 | 46,542 | |||||||
Dilutive effect of stock options, restricted stock units, and employee stock purchase plan | 1,808 | 2,747 | |||||||
Diluted weighted average shares outstanding | 47,875 | 49,289 | |||||||
Diluted net income per common share | $ | 0.27 | $ | 0.27 | |||||
The diluted weighted average shares outstanding in the table above exclude outstanding stock options, restricted stock units and shares to be purchased under the employee stock purchase plan totaling approximately 2,761 and 1,166 for the three months ended June 30, 2014 and 2013, respectively, because the effect would have been anti-dilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
In the normal course of its business, the Company may be involved in various claims, negotiations and legal actions. As of June 30, 2014, 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. |
Revolving_Credit_Facility
Revolving Credit Facility | 3 Months Ended |
Jun. 30, 2014 | |
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 June 30, 2014, 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 June 30, 2014 were $1,131. |
Capitalization
Capitalization | 3 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Capitalization | ' |
Capitalization | |
During the first quarter of fiscal 2015, the Company repurchased $105,085 of common stock (2,139 shares) under its share repurchase program. As of June 30, 2014 $45,002 remained in the stock repurchase authorization program through March 31, 2015. |
Stock_Plans
Stock Plans | 3 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock Plans | ' | |||||||||||||
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 three months ended June 30, 2014: | ||||||||||||||
Options | Number | Weighted- | Weighted- | Aggregate | ||||||||||
of | Average | Average | Intrinsic | |||||||||||
Options | Exercise | Remaining | Value | |||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(Years) | ||||||||||||||
Outstanding as of March 31, 2014 | 6,388 | $ | 39.03 | |||||||||||
Options granted | 46 | 50.78 | ||||||||||||
Options exercised | (194 | ) | 11.25 | |||||||||||
Options forfeited | (37 | ) | 67.9 | |||||||||||
Options expired | (1 | ) | 56.57 | |||||||||||
Outstanding as of June 30, 2014 | 6,202 | $ | 39.82 | 6.23 | $ | 108,872 | ||||||||
Vested or expected to vest as of June 30, 2014 | 6,134 | $ | 39.2 | 6.18 | $ | 108,811 | ||||||||
Exercisable as of June 30, 2014 | 3,866 | $ | 23.21 | 4.84 | $ | 103,363 | ||||||||
The weighted average fair value of stock options granted was $19.93 per option during the three months ended June 30, 2014 and $28.35 per option during the three months ended June 30, 2013. The total intrinsic value of options exercised was $7,263 for the three months ended June 30, 2014 and $8,068 for the three months ended June 30, 2013. 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 June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Dividend yield | None | None | ||||||||||||
Expected volatility | 43%-46% | 45%-47% | ||||||||||||
Weighted average expected volatility | 45% | 45% | ||||||||||||
Risk-free interest rates | 1.57%-1.70% | 0.70%-1.04% | ||||||||||||
Weighted average expected life (in years) | 4.5 | 4.6 | ||||||||||||
Restricted stock unit activity for the three months ended June 30, 2014 is as follows: | ||||||||||||||
Non-vested Restricted Stock Units | Number of | Weighted | ||||||||||||
Awards | Average Grant | |||||||||||||
Date Fair Value | ||||||||||||||
Non-vested as of March 31, 2014 | 1,202 | $ | 65.63 | |||||||||||
Awarded | 48 | 52.07 | ||||||||||||
Vested | (95 | ) | 43.83 | |||||||||||
Forfeited | (26 | ) | 64.93 | |||||||||||
Non-vested as of June 30, 2014 | 1,129 | $ | 66.9 | |||||||||||
The weighted average fair value of restricted stock units awarded was $52.07 per unit during the three months ended June 30, 2014 and $73.30 per unit during the three months ended June 30, 2013. | ||||||||||||||
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 months ended June 30, 2014 and 2013. | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Cost of services revenue | $ | 669 | $ | 298 | ||||||||||
Sales and marketing | 6,176 | 4,261 | ||||||||||||
Research and development | 1,314 | 957 | ||||||||||||
General and administrative | 6,256 | 3,992 | ||||||||||||
Stock-based compensation expense | $ | 14,415 | $ | 9,508 | ||||||||||
As of June 30, 2014, there was approximately $117,578 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 2.41 years. To the extent the actual forfeiture rate is different from what the Company has estimated, stock-based compensation related to these awards will be different from the Company’s current estimate. | ||||||||||||||
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. As of June 30, 2014, 3,000 shares were reserved for future issuance under the Purchase Plan. The Purchase Plan is considered compensatory and the fair value of the discount and look back provision are estimated using the Black-Scholes formula and recognized over the six month withholding period prior to purchase. The total expense associated with the Purchase Plan for the three months ended June 30, 2014 is $609. As of June 30, 2014, there was approximately $201 of unrecognized cost related to the current purchase period of our Employee Stock Purchase Plan. |
Income_Taxes
Income Taxes | 3 Months Ended | |||
Jun. 30, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
Income Taxes | ' | |||
Income Taxes | ||||
Income Tax Expense | ||||
Income tax expense was $5,680 in the three months ended June 30, 2014 with an effective tax rate of 31%. The effective rate in the three months ended June 30, 2014 is lower than the federal statutory rate due to the recognition of certain previously unrecognized tax benefits and tax benefits from foreign tax credits and domestic production activities deductions. These benefits were partially offset by state income taxes and permanent differences in both the United States and foreign jurisdictions. | ||||
Income tax expense was $8,177 in the three months ended June 30, 2013 with effective tax rate of 38%. The effective rate in the three months ended June 30, 2013 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 recording research and development tax credits, 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 as of March 31, 2014 | $ | 4,113 | ||
Additions for tax positions related to fiscal 2015 | 71 | |||
Additions for tax positions related to prior years | — | |||
Settlements and effective settlements with tax authorities and remeasurements | (1,435 | ) | ||
Reductions related to the expiration of statutes of limitations | — | |||
Foreign currency translation adjustment | — | |||
Balance as of June 30, 2014 | $ | 2,749 | ||
All of the Company’s unrecognized tax benefits would favorably impact the effective tax rate if they were recognized. Components of the reserve are classified as either current or long-term in the Consolidated Balance Sheet based on when the Company expects each of the items to be settled. Accordingly, the Company has recorded its unrecognized tax benefits of $2,749 and $4,113 and the related accrued interest and penalties of $325 and $555 in Other Liabilities on the Consolidated Balance Sheet at June 30, 2014 and March 31, 2014, respectively. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. | ||||
Other Tax Items | ||||
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 $2,791 and $8,296 for the three months ended June 30, 2014 and 2013, respectively. | ||||
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 Federal income tax returns for fiscal 2012 and 2013 are currently under audit. Additionally, the Company's New Jersey tax returns for fiscal 2010 through 2013 are currently under audit. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On July 24, 2014, the Company's Board of Directors authorized a $104,998 increase to the Company's existing stock repurchase program and extended the expiration of the stock repurchase program to March 31, 2016. As a result, the Company may repurchase an additional $150,000 of its common stock through March 31, 2016. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
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 capacity basis, on a per-copy 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. 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. Educational 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. Educational 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. | ||
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. | ||
Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 33% and 29% of total revenues for the three months ended June 30, 2014 and 2013, respectively. Arrow accounted for approximately 37% of total accounts receivable as of June 30, 2014 and 41% of total accounts receivable as of March 31, 2014. | ||
The Company has an original equipment manufacturer agreement with Hitachi Data Systems ("HDS") for them to market, sell and support our software applications and services on a stand-alone basis and/or incorporate our software applications into their own hardware products. HDS accounted for 10% of total revenues for the three months ended June 30, 2014. | ||
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. 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. | ||
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 June 30, 2014, and March 31, 2014 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. | ||
Recently Issued Accounting Standards | ' | |
Recently Issued Accounting Standards | ||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This amendment provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. This amendment will be effective for the Company's fiscal year beginning April 1, 2017. Early adoption is not permitted. The Company is currently evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. | ||
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) | 3 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Deferred Revenue | ' | ||||||||||||||
Deferred revenue consists of the following: | |||||||||||||||
June 30, | March 31, | ||||||||||||||
2014 | 2014 | ||||||||||||||
Current: | |||||||||||||||
Deferred software revenue | $ | 324 | $ | 666 | |||||||||||
Deferred services revenue | 171,458 | 165,477 | |||||||||||||
$ | 171,782 | $ | 166,143 | ||||||||||||
Non-current: | |||||||||||||||
Deferred services revenue | $ | 42,110 | $ | 43,432 | |||||||||||
Total Deferred Revenue | $ | 213,892 | $ | 209,575 | |||||||||||
Financial Assets Measured at Fair Value | ' | ||||||||||||||
The following table summarizes the composition of the Company’s financial assets measured at fair value on a recurring basis at June 30, 2014 and March 31, 2014: | |||||||||||||||
30-Jun-14 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents | $ | 241,380 | — | — | $ | 241,380 | |||||||||
Short-term Investments | $ | — | 24,995 | — | $ | 24,995 | |||||||||
31-Mar-14 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents | $ | 326,952 | — | — | $ | 326,952 | |||||||||
Short-term Investments | $ | — | 24,993 | — | $ | 24,993 | |||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and equipment consist of the following: | |||||||||
June 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Construction in process | $ | 95,618 | $ | 79,182 | |||||
Computers, servers and other equipment | 28,968 | 27,827 | |||||||
Leasehold improvements | 8,943 | 8,911 | |||||||
Furniture and fixtures | 2,457 | 2,409 | |||||||
Purchased software | 2,351 | 2,291 | |||||||
138,337 | 120,620 | ||||||||
Less: Accumulated depreciation and amortization | (33,222 | ) | (31,719 | ) | |||||
$ | 105,115 | $ | 88,901 | ||||||
Net_Income_per_Common_Share_Ta
Net Income per Common Share (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [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: | |||||||||
Three Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Net income | $ | 12,729 | $ | 13,462 | |||||
Basic net income per common share: | |||||||||
Basic weighted average shares outstanding | 46,067 | 46,542 | |||||||
Basic net income per common share | $ | 0.28 | $ | 0.29 | |||||
Diluted net income per common share: | |||||||||
Basic weighted average shares outstanding | 46,067 | 46,542 | |||||||
Dilutive effect of stock options, restricted stock units, and employee stock purchase plan | 1,808 | 2,747 | |||||||
Diluted weighted average shares outstanding | 47,875 | 49,289 | |||||||
Diluted net income per common share | $ | 0.27 | $ | 0.27 | |||||
Stock_Plans_Tables
Stock Plans (Tables) | 3 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
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 three months ended June 30, 2014: | ||||||||||||||
Options | Number | Weighted- | Weighted- | Aggregate | ||||||||||
of | Average | Average | Intrinsic | |||||||||||
Options | Exercise | Remaining | Value | |||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(Years) | ||||||||||||||
Outstanding as of March 31, 2014 | 6,388 | $ | 39.03 | |||||||||||
Options granted | 46 | 50.78 | ||||||||||||
Options exercised | (194 | ) | 11.25 | |||||||||||
Options forfeited | (37 | ) | 67.9 | |||||||||||
Options expired | (1 | ) | 56.57 | |||||||||||
Outstanding as of June 30, 2014 | 6,202 | $ | 39.82 | 6.23 | $ | 108,872 | ||||||||
Vested or expected to vest as of June 30, 2014 | 6,134 | $ | 39.2 | 6.18 | $ | 108,811 | ||||||||
Exercisable as of June 30, 2014 | 3,866 | $ | 23.21 | 4.84 | $ | 103,363 | ||||||||
Schedule of Stock Option Valuation Assumptions | ' | |||||||||||||
The assumptions used in the Black-Scholes option-pricing model are as follows: | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Dividend yield | None | None | ||||||||||||
Expected volatility | 43%-46% | 45%-47% | ||||||||||||
Weighted average expected volatility | 45% | 45% | ||||||||||||
Risk-free interest rates | 1.57%-1.70% | 0.70%-1.04% | ||||||||||||
Weighted average expected life (in years) | 4.5 | 4.6 | ||||||||||||
Schedule of Restricted Stock Unit Activity | ' | |||||||||||||
Restricted stock unit activity for the three months ended June 30, 2014 is as follows: | ||||||||||||||
Non-vested Restricted Stock Units | Number of | Weighted | ||||||||||||
Awards | Average Grant | |||||||||||||
Date Fair Value | ||||||||||||||
Non-vested as of March 31, 2014 | 1,202 | $ | 65.63 | |||||||||||
Awarded | 48 | 52.07 | ||||||||||||
Vested | (95 | ) | 43.83 | |||||||||||
Forfeited | (26 | ) | 64.93 | |||||||||||
Non-vested as of June 30, 2014 | 1,129 | $ | 66.9 | |||||||||||
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 months ended June 30, 2014 and 2013. | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Cost of services revenue | $ | 669 | $ | 298 | ||||||||||
Sales and marketing | 6,176 | 4,261 | ||||||||||||
Research and development | 1,314 | 957 | ||||||||||||
General and administrative | 6,256 | 3,992 | ||||||||||||
Stock-based compensation expense | $ | 14,415 | $ | 9,508 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||
Jun. 30, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
Reconciliation of Amounts of Unrecognized Tax Benefits | ' | |||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | ||||
Balance as of March 31, 2014 | $ | 4,113 | ||
Additions for tax positions related to fiscal 2015 | 71 | |||
Additions for tax positions related to prior years | — | |||
Settlements and effective settlements with tax authorities and remeasurements | (1,435 | ) | ||
Reductions related to the expiration of statutes of limitations | — | |||
Foreign currency translation adjustment | — | |||
Balance as of June 30, 2014 | $ | 2,749 | ||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | |
Arrow | Arrow | Arrow | Arrow | Hitachi | ||
Revenue | Revenue | Accounts Receivable | Accounts Receivable | Revenue | ||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Sources of primary revenue | 2 | ' | ' | ' | ' | ' |
Length of customer support agreement - in years | '1 year | ' | ' | ' | ' | ' |
Number of days for other professional services | '90 days | ' | ' | ' | ' | ' |
Percentage of sales in respect to total revenue through companies reseller agreement | ' | 33.00% | 29.00% | ' | ' | ' |
Percentage of accounts receivable | ' | ' | ' | 37.00% | 41.00% | ' |
Percentage of sales in relation to total revenues through Company's reseller and original equipment manufacturer agreement | ' | ' | ' | ' | ' | 10.00% |
Deferred_Revenue_Detail
Deferred Revenue (Detail) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue, Current | $171,782 | $166,143 |
Deferred revenue, Non-current | 42,110 | 43,432 |
Total Deferred Revenue | 213,892 | 209,575 |
Deferred software revenue | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue, Current | 324 | 666 |
Deferred services revenue | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred revenue, Current | 171,458 | 165,477 |
Deferred revenue, Non-current | $42,110 | $43,432 |
Summary_of_Fair_Value_of_Finan
Summary of Fair Value of Financial Assets (Detail) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $241,380 | $326,952 |
Short-term investments | 24,995 | 24,993 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 241,380 | 326,952 |
Short-term investments | 0 | 0 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Short-term investments | $24,995 | $24,993 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $138,337 | $120,620 |
Less: Accumulated depreciation and amortization | -33,222 | -31,719 |
Property and equipment, net | 105,115 | 88,901 |
Construction in process | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 95,618 | 79,182 |
Computers, servers and other equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 28,968 | 27,827 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 8,943 | 8,911 |
Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 2,457 | 2,409 |
Purchased software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $2,351 | $2,291 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (Construction in process, USD $) | Jun. 30, 2014 |
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 | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $12,729 | $13,462 |
Basic net income per common share: | ' | ' |
Basic weighted average shares outstanding (in shares) | 46,067 | 46,542 |
Basic net income per common share (in Dollars per share) | $0.28 | $0.29 |
Diluted net income per common share: | ' | ' |
Basic weighted average shares outstanding (in shares) | 46,067 | 46,542 |
Dilutive effect of stock options, restricted stock units, and employee stock purchase plan (in shares) | 1,808 | 2,747 |
Diluted weighted average shares outstanding (in shares) | 47,875 | 49,289 |
Diluted net income per common share (in Dollars per share) | $0.27 | $0.27 |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Antidilutive securities excluded from computation | 2,761 | 1,166 |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) (Revolving Credit Facility, USD $) | 0 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | |
Line of Credit Facility [Line Items] | ' | ' |
Debt term | '5 years | ' |
Borrowing capacity | ' | $250,000,000 |
Unused capacity fee (as a percentage) | 0.25% | ' |
Unamortized debt issuance costs | ' | $1,131,000 |
LIBOR Rate | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Variable rate | 1.50% | ' |
Capitalization_Additional_Info
Capitalization - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Class of Stock [Line Items] | ' |
Repurchase of common stock | $105,085 |
Common Stock Repurchased | ' |
Class of Stock [Line Items] | ' |
Repurchase of common stock | 105,085 |
Repurchase of common stock (in shares) | 2,139 |
Remaining value of common stock to be repurchased under share repurchase program | $45,002 |
Share repurchase program expiration date | 31-Mar-15 |
Activity_for_Companys_Two_Stoc
Activity for Company's Two Stock Incentive Plans (Detail) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Number of Options | ' |
Outstanding (Shares) as of March 31, 2014 | 6,388 |
Options granted (Shares) | 46 |
Options exercised (Shares) | -194 |
Options forfeited (Shares) | -37 |
Options expired (Shares) | -1 |
Outstanding (Shares) as of June 30, 2014 | 6,202 |
Vested or expected to vest (Shares) as of June 30, 2014 | 6,134 |
Exercisable (Shares) as of June 30, 2014 | 3,866 |
Weighted- Average Exercise Price | ' |
Outstanding (in Dollars per share) as of March 31, 2014 | $39.03 |
Options granted (in Dollars per share) | $50.78 |
Options exercised (in Dollars per share) | $11.25 |
Options forfeited (in Dollars per share) | $67.90 |
Options expired (in Dollars per share) | $56.57 |
Outstanding (in Dollars per share) as of June 30, 2014 | $39.82 |
Vested or expected to vest (in Dollars per share) as of June 30, 2014 | $39.20 |
Exercisable (in Dollars per share) as of June 30, 2014 | $23.21 |
Weighted- Average Remaining Contractual Term (Years) | ' |
Outstanding (years) as of June 30, 2014 | '6 years 2 months 23 days |
Vested or expected to vest (years) as of June 30, 2014 | '6 years 2 months 4 days |
Exercisable (years) as of June 30, 2014 | '4 years 10 months 2 days |
Aggregate Intrinsic Value | ' |
Outstanding as of June 30, 2014 | $108,872 |
Vested or expected to vest as of June 30, 2014 | 108,811 |
Exercisable as of June 30, 2014 | $103,363 |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average fair value of stock options granted per share (in Dollars per share) | $19.93 | $28.35 |
Total intrinsic value of options exercised | $7,263 | $8,068 |
Unrecognized stock-based compensation expense, net of estimated forfeitures | $117,578 | ' |
Weighted average period awards expected to be recognized over | '2 years 4 months 27 days | ' |
Restricted Stock Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average fair value, units awarded (in Dollars per unit) | $52.07 | $73.30 |
Assumptions_Used_in_BlackSchol
Assumptions Used in Black-Scholes Option-Pricing Model (Detail) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Black-Scholes Option-Pricing Model Assumptions | ' | ' |
Expected volatility, minimum | 43.00% | 45.00% |
Expected volatility, maximum | 46.00% | 47.00% |
Weighted average expected volatility | 45.00% | 45.00% |
Risk-free interest rates, minimum | 1.57% | 0.70% |
Risk-free interest rates, maximum | 1.70% | 1.04% |
Weighted average expected life (in years) | '4 years 6 months | '4 years 7 months 6 days |
Restricted_Stock_Unit_Activity
Restricted Stock Unit Activity (Detail) (Restricted Stock Units, USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Restricted Stock Units | ' | ' |
Number of Awards | ' | ' |
Non-vested (Shares) as of March 31, 2014 | 1,202 | ' |
Awarded (Shares) | 48 | ' |
Vested (Shares) | -95 | ' |
Forfeited (Shares) | -26 | ' |
Non-vested (Shares) as of June 30, 2014 | 1,129 | ' |
Weighted Average Grant Date Fair Value | ' | ' |
Non-vested (in Dollars per Share) as of March 31, 2014 | $65.63 | ' |
Awarded (in Dollars per Share) | $52.07 | $73.30 |
Vested (in Dollars per Share) | $43.83 | ' |
Forfeited (in Dollars per Share) | $64.93 | ' |
Non-vested (in Dollars per Share) as of June 30, 2014 | $66.90 | ' |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $14,415 | $9,508 |
Cost of services revenue | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 669 | 298 |
Sales and marketing | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 6,176 | 4,261 |
Research and development | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 1,314 | 957 |
General and administrative | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $6,256 | $3,992 |
Stock_Plans_Employee_Stock_Pur
Stock Plans Employee Stock Purchase Plan (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized stock-based compensation expense, net of estimated forfeitures | $117,578 |
Purchase Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock purchase price (percentage) | 85.00% |
Offering period | '6 months |
Maximum employee subscription rate | 10.00% |
Maximum annual purchases per employee | 0 |
Shares reserved for future issuance | 3,000 |
Compensation expense | 609 |
Unrecognized stock-based compensation expense, net of estimated forfeitures | $201 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income tax expense | $5,680 | $8,177 | ' |
Effective income tax rate | 31.00% | 38.00% | ' |
Expected federal statutory rate | ' | 35.00% | ' |
Unrecognized tax benefits which would favorably impact the effective tax rate once recognized | 2,749 | ' | 4,113 |
Accrued interest and penalties | 325 | ' | 555 |
Tax benefits relating to stock-based payments | $2,791 | $8,296 | ' |
Reconciliation_of_Amounts_of_U
Reconciliation of Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' |
Beginning Balance | $4,113 |
Additions for tax positions related to fiscal 2015 | 71 |
Additions for tax positions related to prior years | 0 |
Settlements and effective settlements with tax authorities and remeasurements | -1,435 |
Reductions related to the expiration of statutes of limitations | 0 |
Foreign currency translation adjustment | 0 |
Ending Balance | $2,749 |
Subsequent_Events_Details
Subsequent Events (Details) (Common Stock Repurchased, USD $) | 3 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jul. 24, 2014 | Jul. 24, 2014 |
Subsequent Event | Subsequent Event | ||
Subsequent Event [Line Items] | ' | ' | ' |
Increase in authorized amount | ' | $104,998 | ' |
Share repurchase program expiration date | 31-Mar-15 | 31-Mar-16 | ' |
Remaining value of common stock to be repurchased under share repurchase program | $45,002 | ' | $150,000 |