Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jan. 31, 2015 | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Jan-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Guidewire Software, Inc. |
Entity Central Index Key | 1528396 |
Entity Filer Category | Large Accelerated Filer |
Current Fiscal Year End Date | -24 |
Entity Common Stock, Shares Outstanding | 70,161,817 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $125,224 | $148,101 |
Short-term investments | 420,161 | 296,231 |
Accounts receivable | 61,797 | 49,839 |
Deferred tax assets, current | 12,056 | 11,431 |
Prepaid expenses and other current assets | 9,279 | 10,828 |
Total current assets | 628,517 | 516,430 |
Long-term investments | 81,779 | 203,449 |
Property and equipment, net | 12,372 | 12,607 |
Intangible assets, net | 4,719 | 5,439 |
Deferred tax assets, noncurrent | 11,504 | 8,681 |
Goodwill | 9,205 | 9,205 |
Other assets | 924 | 1,416 |
TOTAL ASSETS | 749,020 | 757,227 |
CURRENT LIABILITIES: | ||
Accounts payable | 7,008 | 7,030 |
Accrued employee compensation | 20,875 | 34,912 |
Deferred revenues, current | 51,181 | 48,937 |
Other current liabilities | 5,085 | 4,507 |
Total current liabilities | 84,149 | 95,386 |
Deferred revenues, noncurrent | 1,290 | 6,395 |
Other liabilities | 4,510 | 4,760 |
Total liabilities | 89,949 | 106,541 |
STOCKHOLDERS’ EQUITY: | ||
Common stock | 7 | 7 |
Additional paid-in capital | 640,573 | 629,076 |
Accumulated other comprehensive loss | -5,458 | -1,367 |
Accumulated deficit | 23,949 | 22,970 |
Total stockholders’ equity | 659,071 | 650,686 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $749,020 | $757,227 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | ||||
Revenues : | ||||||||
License | $43,655 | $35,215 | $72,475 | $54,085 | ||||
Maintenance | 12,163 | 9,890 | 24,683 | 19,529 | ||||
Services | 33,628 | 38,370 | 72,022 | 76,390 | ||||
Total revenues | 89,446 | 83,475 | 169,180 | 150,004 | ||||
Cost of revenues: | ||||||||
License | 1,145 | 1,593 | 2,227 | 2,439 | ||||
Maintenance | 2,271 | 1,902 | 4,513 | 3,684 | ||||
Services | 30,664 | 32,672 | 63,111 | 67,901 | ||||
Total cost of revenues | 34,080 | 36,167 | 69,851 | 74,024 | ||||
Gross profit : | ||||||||
License | 42,510 | 33,622 | 70,248 | 51,646 | ||||
Maintenance | 9,892 | 7,988 | 20,170 | 15,845 | ||||
Services | 2,964 | 5,698 | 8,911 | 8,489 | ||||
Total gross profit | 55,366 | 47,308 | 99,329 | 75,980 | ||||
Operating expenses: | ||||||||
Research and development | 22,282 | 17,525 | 42,592 | 35,052 | ||||
Sales and marketing | 20,176 | 17,278 | 37,705 | 32,951 | ||||
General and administrative | 9,573 | 8,024 | 19,335 | 16,123 | ||||
Total operating expenses | 52,031 | 42,827 | 99,632 | 84,126 | ||||
Income (loss) from operations | 3,335 | 4,481 | -303 | -8,146 | ||||
Interest income, net | 495 | 346 | 1,007 | 504 | ||||
Other income (expense), net | -861 | -58 | -1,344 | 57 | ||||
Income (loss) before income taxes (1) | 2,969 | [1] | 4,769 | [1] | -640 | -7,585 | ||
Provision for (benefit from) income taxes | -1,007 | [1] | 1,437 | [1] | -1,619 | [1] | -4,462 | [1] |
Net income (loss) | $3,976 | [1] | $3,332 | [1] | $979 | [1] | ($3,123) | [1] |
Earnings (loss) per share: | ||||||||
Basic | $0.06 | [1] | $0.05 | [1] | $0.01 | [1] | ($0.05) | |
Diluted | $0.06 | [1] | $0.05 | [1] | $0.01 | ($0.05) | ||
Shares used in computing earnings (loss) per share: | ||||||||
Basic | 69,883,622 | 67,360,775 | 69,600,161 | 63,005,064 | ||||
Diluted | 72,056,861 | 70,904,255 | 71,914,972 | 63,005,064 | ||||
[1] | See Note 2 “Change in Accounting Policy - Stock-Based Compensation†of Notes to Consolidated Financial Statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Comprehensive Income (Loss) Statement (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | ||||
Statement of Comprehensive Income [Abstract] | ||||||||
Net loss | $3,976 | [1] | $3,332 | [1] | $979 | [1] | ($3,123) | [1] |
Foreign currency translation adjustments | -2,949 | [1] | -783 | [1] | -4,218 | -312 | ||
Unrealized gains on available-for-sale securities, net of tax of $64 and $15; $72 and $32 | 101 | 10 | 134 | 44 | ||||
Reclassification adjustment for gains included in net income (loss) | -4 | -11 | -7 | -20 | ||||
Other comprehensive income (loss) | -2,852 | -784 | -4,091 | -288 | ||||
Comprehensive income (loss) | $1,124 | $2,548 | ($3,112) | ($3,411) | ||||
[1] | See Note 2 “Change in Accounting Policy - Stock-Based Compensation†of Notes to Consolidated Financial Statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Comprehensive Income (Loss) Condensed Consolidated Statement of Comprehensive Income (Loss) Parenthetical (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision on unrealized gains on available-for-sale securities | $64 | $15 | $72 | $32 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $979 | [1] | ($3,123) | [1] |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 3,621 | 3,208 | ||
Stock-based compensation | 25,486 | [1] | 21,325 | [1] |
Excess tax benefit from exercise of stock options and vesting of RSUs | 0 | -289 | ||
Deferred taxes | -3,459 | [1] | -5,936 | [1] |
Other noncash items affecting net loss | 2,884 | 1,139 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | -12,775 | -16,118 | ||
Prepaid expenses and other assets | 1,727 | 1,103 | ||
Accounts payable | 817 | -443 | ||
Accrued employee compensation | -13,215 | -4,937 | ||
Other liabilities | 457 | -685 | ||
Deferred revenues | -2,455 | 10,485 | ||
Net cash provided by operating activities | 4,067 | 5,729 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchases of available-for-sale securities | -236,841 | -354,101 | ||
Sales and maturities of available-for-sale securities | 231,895 | 110,228 | ||
Purchase of property and equipment | -3,651 | -2,581 | ||
Acquisition of business, net of cash acquired | 0 | -95 | ||
Net cash used in investing activities | -8,597 | -246,549 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from issuance of common stock upon exercise of stock options | 3,859 | 4,143 | ||
Taxes remitted on RSU awards vested | -17,848 | -15,198 | ||
Proceeds from issuance of common stock in connection with public offering, net of underwriting discounts and commissions | 0 | 389,949 | ||
Costs paid in connection with public offerings | 0 | -410 | ||
Excess tax benefit from exercise of stock options and vesting of RSUs | 0 | 289 | ||
Net cash provided by (used in) financing activities | -13,989 | 378,773 | ||
Effect of foreign exchange rate changes on cash and cash equivalents | -4,358 | -91 | ||
NET CHANGE IN CASH AND CASH EQUIVALENTS | -22,877 | 137,862 | ||
CASH AND CASH EQUIVALENTS—Beginning of period | 148,101 | 79,767 | ||
CASH AND CASH EQUIVALENTS—End of period | 125,224 | 217,629 | ||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||
Cash paid for income taxes | 1,521 | 1,246 | ||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||
Accruals for purchase of property and equipment | $145 | $313 | ||
[1] | See Note 2 “Change in Accounting Policy - Stock-Based Compensation†of Notes to Consolidated Financial Statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K. |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies and Estimates | 6 Months Ended | |
Jan. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
The Company and Summary of Significant Accounting Policies and Estimates | ||
The Company and Summary of Significant Accounting Policies and Estimates | ||
Business | ||
Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc., together with its subsidiaries (the “Company”), provides Internet-based software platforms for core insurance operations, including underwriting and policy administration, claim management and billing. The Company’s customers include insurance carriers for property and casualty and workers’ compensation insurance. The Company has wholly-owned subsidiaries in Australia, Canada, China, France, Germany, Hong Kong, Ireland, Italy, Japan, Poland, the United Kingdom and Switzerland. | ||
The Company offers a suite of applications to enable core property and casualty (“P&C”) insurance operations comprised of the following products: PolicyCenter, ClaimCenter and BillingCenter. The Company also provides maintenance support and professional services to the extent requested by its customers. | ||
Public Offerings | ||
On October 28, 2013, the Company closed its follow-on public offering of 8,306,291 shares of its common stock, including the underwriters’ partial exercise of their over-allotment option from the Company. The public offering price of the shares sold in the offering was $48.75 per share. The Company received aggregate proceeds of approximately $389.9 million from the follow-on offering, net of underwriters’ discounts and commissions applicable to the sale of shares by the Company, but before deduction of offering costs of approximately $0.4 million payable by the Company. No shares were sold by the Company’s stockholders in this follow-on public offering. | ||
Basis of Presentation | ||
The accompanying unaudited condensed consolidated financial statements and accompanying notes include the Company and its wholly-owned subsidiaries, and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All inter-company balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). | ||
These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K. | ||
Use of Estimates | ||
The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Significant items subject to such estimates include revenue recognition, the useful lives of property and equipment and intangible assets, allowance for doubtful accounts, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, valuation of goodwill and intangible assets, and contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. | ||
Cash, Cash Equivalents and Investments | ||
Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents consist of commercial paper and money market funds. The Company classifies investments as short-term when they have remaining contractual maturities of less than one year from the balance sheet date, and as long-term when the investments have remaining contractual maturities of more than one year from the balance sheet date. The Company’s investment policy is consistent with the definition of available-for-sale securities. From time to time, the Company may sell certain securities but the objectives are generally not to generate profits on short-term differences in price. | ||
Concentration of Credit Risk | ||
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments and accounts receivable. The Company maintains its cash and cash equivalents with high quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded on the balance sheet are in excess of amounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”). | ||
No customer accounted for 10% or more of the Company’s revenues for the three and six months ended January 31, 2015 or 2014. One customer accounted for 10% or more of the Company’s total accounts receivable as of January 31, 2015 and July 31, 2014. | ||
Revenue Recognition | ||
The Company enters into arrangements to deliver multiple products or services (multiple-elements). The Company applies software revenue recognition rules and allocates the total revenues among elements based on vendor-specific objective evidence (“VSOE”) of fair value of each element. The Company recognizes revenue on a net basis excluding taxes collected from customers and remitted to government authorities. | ||
Revenues are derived from three sources: | ||
(i) | License fees, related to term (or time-based) licenses, perpetual software licenses, and other; | |
(ii) | Maintenance fees, related to email and phone support, bug fixes and unspecified software updates and upgrades released when, and if, available during the maintenance term; and | |
(iii) | Services fees, related to professional services related to implementation of our software, reimbursable travel and training. | |
Revenues are recognized when all of the following criteria are met: | ||
• | Persuasive evidence of an arrangement exists. Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period. | |
• | Delivery or performance has occurred. The Company’s software is delivered electronically to the customer. Delivery is considered to have occurred when the Company provides the customer access to the software along with login credentials. | |
• | Fees are fixed or determinable. Arrangements where a significant portion of the fee is due beyond 90 days from delivery are not considered to be fixed or determinable. Revenues from such arrangements are recognized as payments become due, assuming all other revenue recognition criteria have been met. Fees from term licenses are generally due in annual or, in certain cases, quarterly, installments over the term of the agreement beginning on the effective date of the license. Accordingly, fees from term licenses are not considered to be fixed or determinable until they become due. | |
• | Collectability is probable. Collectability is assessed on a customer-by-customer basis, based primarily on creditworthiness as determined by credit checks and analysis, as well as customer payment history. Payment terms generally range from 30 to 90 days from invoice date. If it is determined prior to revenue recognition that collection of an arrangement fee is not probable, revenues are deferred until collection becomes probable or cash is collected, assuming all other revenue recognition criteria are satisfied. | |
VSOE of fair value does not exist for the Company’s software licenses; therefore, the Company allocates revenues to software licenses using the residual method. Under the residual method, the amount recognized for license fees is the difference between the total fixed and determinable fees and the VSOE of fair value for the undelivered elements under the arrangement. | ||
The VSOE of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for those elements when sold separately. VSOE of fair value for maintenance is established using the stated maintenance renewal rate in the customer’s contract. The Company generally enters into term licenses ranging from 3 to 7 years. For term licenses with duration of one year or less, no VSOE of fair value for maintenance exists. VSOE of fair value for services is established if a substantial majority of historical stand-alone selling prices for a service fall within a reasonably narrow price range. | ||
If the undelivered elements are all service elements and VSOE of fair value does not exist for one or more service element, the total arrangement fee is recognized ratably over the longest service period starting at software delivery, assuming all the related services have been made available to the customer. | ||
In certain offerings sold as fixed fee arrangements, the Company recognizes services revenues on a proportional performance basis as performance obligations are completed by using the ratio of labor hours to date as an input measure compared to total estimated labor hours for the consulting services. | ||
In cases where professional services are deemed to be essential to the functionality of the software, the arrangement is accounted for using contract accounting until the essential services are complete. If reliable estimates of total project costs can be made, the Company applies the percentage-of-completion method whereby percentage toward completion is measured by using the ratio of service billings to date compared to total estimated service billings for the consulting services. Service billings approximate labor hours as an input measure since they are generally billed monthly on a time and material basis. The fees related to the maintenance are recognized over the period the maintenance is provided. | ||
If reliable estimates of total project costs cannot be made or VSOE for maintenance has not been established and it is reasonably assured that no loss will be incurred under the arrangement, revenues are recognized pursuant to the zero gross margin method. Under this method, revenues recognized are limited to the costs incurred for the implementation services. When the zero gross margin method is applied for lack of reliable project estimates and subsequently project estimates become reliable, the Company switches to the percentage-of-completion method; resulting in a cumulative effect adjustment for deferred license revenues to the extent of progress toward completion, and the related deferred professional service margin is recognized in full as revenues. There were no such cumulative effect adjustments for revenues for the three and six months ended January 31, 2015 or 2014. | ||
Deferred Revenues | ||
Deferred revenues represent license, maintenance and professional services amounts, which are billed to or collected from customers for which the related revenues have not been recognized. The revenues are deferred when one or more of the revenue recognition criteria have not been met. The current portion of deferred revenues represents the amount that is expected to be recognized as revenues within one year from the balance sheet date. The Company generally invoices fees for licenses and maintenance to its customers in annual or, in certain cases, quarterly installments payable in advance. Accordingly, the deferred revenues balance does not represent the total contract value of annual or multi-year, non-cancellable arrangements. | ||
Income Taxes | ||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets related to excess tax benefits are recorded when utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount of which realization is more likely than not. | ||
Accounting guidance related to accounting for uncertainties in income taxes provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | ||
The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its condensed consolidated statement of operations. | ||
Stock-Based Compensation | ||
The Company recognizes compensation expense related to its stock options and restricted stock units (“RSUs”) granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The RSUs are subject to time-based vesting, which generally occurs over a period of 4 years. The awards expire 10 years from the grant date. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, of the Company’s stock options using the Black-Scholes option-pricing model. The Company determines the grant date fair value of its RSUs based on the closing market price of the Company’s common stock on the date of grant. The Company recognizes the fair value of stock-based compensation for awards which contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards which contain performance conditions based upon the probability of that performance condition being met, net of estimated forfeitures, using the graded method. | ||
In the fourth quarter of fiscal 2014, the Company changed its policy for recognizing stock-based compensation expense from the accelerated attribution method of accounting to the straight-line method of accounting for certain share-based compensation awards. Comparative financial statements for prior periods have been adjusted to apply the straight-line method retrospectively. See Note 2 “Change in Accounting Policy - Stock-based Compensation” of Notes to Consolidated Financial Statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on September 17, 2014. | ||
Recent Accounting Pronouncement | ||
Stock-Based Compensation | ||
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718). This ASU provides authoritative guidance for share-based payments with a performance condition that could be achieved after the requisite service period is achieved. The standard will be effective for the Company beginning August 1, 2016. The Company currently does not have such share-based arrangements and does not expect the adoption of this standard will have material impact on its condensed consolidated financial statements. | ||
Revenue from Contracts with Customers | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard will be effective for the Company beginning August 1, 2017. The Company is currently evaluating the impact of the adoption of this accounting standard update on its condensed consolidated financial statements. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||||||||||
Available-for-sale investments within cash equivalents and investments consist of the following: | ||||||||||||||||||||||||
31-Jan-15 | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. agency securities | $ | 92,107 | $ | 52 | $ | (3 | ) | $ | 92,156 | |||||||||||||||
Commercial paper | 99,469 | 14 | (11 | ) | 99,472 | |||||||||||||||||||
Corporate bonds | 316,905 | 113 | (53 | ) | 316,965 | |||||||||||||||||||
U.S. government bonds | 20,767 | 28 | — | 20,795 | ||||||||||||||||||||
Foreign government bonds | 2,726 | 5 | — | 2,731 | ||||||||||||||||||||
Money market funds | 60,516 | — | — | 60,516 | ||||||||||||||||||||
Certificates of deposit | 6,703 | — | (1 | ) | 6,702 | |||||||||||||||||||
Municipal debt securities | 4,696 | 4 | — | 4,700 | ||||||||||||||||||||
Total | $ | 603,889 | $ | 216 | $ | (68 | ) | $ | 604,037 | |||||||||||||||
31-Jul-14 | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. agency securities | $ | 94,048 | $ | 30 | $ | (21 | ) | $ | 94,057 | |||||||||||||||
Asset-backed securities | 1,363 | — | (2 | ) | 1,361 | |||||||||||||||||||
Commercial paper | 132,442 | 14 | (4 | ) | 132,452 | |||||||||||||||||||
Corporate bonds | 297,731 | 104 | (182 | ) | 297,653 | |||||||||||||||||||
U.S. government bonds | 17,991 | 3 | (3 | ) | 17,991 | |||||||||||||||||||
Foreign government bonds | 2,755 | — | (1 | ) | 2,754 | |||||||||||||||||||
Certificates of deposit | 6,709 | — | (1 | ) | 6,708 | |||||||||||||||||||
Money market funds | 53,959 | — | — | 53,959 | ||||||||||||||||||||
Municipal debt securities | 12,985 | 13 | (1 | ) | 12,997 | |||||||||||||||||||
Total | $ | 619,983 | $ | 164 | $ | (215 | ) | $ | 619,932 | |||||||||||||||
The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: | ||||||||||||||||||||||||
31-Jan-15 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Commercial paper | $ | 23,768 | $ | (11 | ) | $ | — | $ | — | $ | 23,768 | $ | (11 | ) | ||||||||||
U. S. Agency Securities | 11,373 | (3 | ) | — | — | 11,373 | (3 | ) | ||||||||||||||||
Corporate bonds | 122,288 | (53 | ) | — | — | 122,288 | (53 | ) | ||||||||||||||||
Certificate of deposit | 4,001 | (1 | ) | — | — | 4,001 | (1 | ) | ||||||||||||||||
Total | $ | 161,430 | $ | (68 | ) | $ | — | $ | — | $ | 161,430 | $ | (68 | ) | ||||||||||
As of January 31, 2015, the Company had 59 investments in an unrealized loss position. The unrealized losses on its available-for-sale securities were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The Company does not intend to sell, nor believe it will need to sell, these securities before recovering the associated unrealized losses. The Company does not consider any portion of the unrealized losses at January 31, 2015 to be an other-than-temporary impairment, nor are any unrealized losses considered to be credit losses. The Company has recorded the securities at fair value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive loss. The amounts of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold. The realized gains and losses from sales of securities in the periods presented were immaterial. | ||||||||||||||||||||||||
The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of January 31, 2015: | ||||||||||||||||||||||||
Expected maturities for the quarter ending January 31, | ||||||||||||||||||||||||
2016 | 2017 | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. agency securities | $ | 63,296 | $ | 28,860 | $ | 92,156 | ||||||||||||||||||
Commercial paper | 99,472 | — | 99,472 | |||||||||||||||||||||
Corporate bonds | 272,586 | 44,379 | 316,965 | |||||||||||||||||||||
U.S. government bonds | 14,986 | 5,809 | 20,795 | |||||||||||||||||||||
Foreign government bonds | — | 2,731 | 2,731 | |||||||||||||||||||||
Money market funds | 60,516 | — | 60,516 | |||||||||||||||||||||
Certificates of deposit | 6,702 | — | 6,702 | |||||||||||||||||||||
Municipal debt securities | 4,700 | — | 4,700 | |||||||||||||||||||||
Total | $ | 522,258 | $ | 81,779 | $ | 604,037 | ||||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows: | ||||||||||||||||||||||||
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||||||||||
Level 2—Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and | ||||||||||||||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions. | ||||||||||||||||||||||||
The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying value of the Company’s accounts receivable, accounts payable and accrued liabilities approximates their fair value due to the short-term nature of these instruments. | ||||||||||||||||||||||||
The Company bases the fair value of its Level 1 financial instruments, which are in active markets, using quoted market prices for identical instruments. | ||||||||||||||||||||||||
The Company obtains the fair value of its Level 2 financial instruments, which are not in active markets, from a third-party professional pricing service using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The Company’s professional pricing service gathers observable inputs for all of its fixed income securities from a variety of industry data providers (e.g. large custodial institutions) and other third-party sources. Once the observable inputs are gathered, all data points are considered and an average price is determined. | ||||||||||||||||||||||||
The Company validates the quoted market prices provided by its primary pricing service by comparing their assessment of the fair values of its Level 2 investment portfolio balance against the fair values of its Level 2 investment portfolio balance provided by its investment managers. Its investment managers use similar techniques to its professional pricing service to derive pricing as described above. | ||||||||||||||||||||||||
The Company did not have any Level 3 financial assets or liabilities as of January 31, 2015 or July 31, 2014. | ||||||||||||||||||||||||
The following tables summarize the Company’s financial assets measured at fair value on a recurring basis, by level within the fair value hierarchy as of January 31, 2015 and July 31, 2014: | ||||||||||||||||||||||||
31-Jan-15 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Commercial paper | $ | — | $ | 41,581 | $ | — | $ | 41,581 | ||||||||||||||||
Money market funds | 60,516 | — | — | 60,516 | ||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
U.S. agency securities | — | 63,296 | — | 63,296 | ||||||||||||||||||||
Commercial paper | — | 57,891 | — | 57,891 | ||||||||||||||||||||
Corporate bonds | — | 272,586 | — | 272,586 | ||||||||||||||||||||
U.S. government bonds | — | 14,986 | — | 14,986 | ||||||||||||||||||||
Municipal debt securities | — | 4,700 | — | 4,700 | ||||||||||||||||||||
Certificates of deposit | — | 6,702 | — | 6,702 | ||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||
U.S. agency securities | — | 28,860 | — | 28,860 | ||||||||||||||||||||
U.S. government bonds | — | 5,809 | — | 5,809 | ||||||||||||||||||||
Corporate bonds | — | 44,379 | — | 44,379 | ||||||||||||||||||||
Foreign government bonds | — | 2,731 | — | 2,731 | ||||||||||||||||||||
Total assets | $ | 60,516 | $ | 543,521 | $ | — | $ | 604,037 | ||||||||||||||||
31-Jul-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Commercial paper | $ | — | $ | 66,293 | $ | — | $ | 66,293 | ||||||||||||||||
Money market funds | 53,959 | — | — | 53,959 | ||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
U.S. agency securities | — | 29,062 | — | 29,062 | ||||||||||||||||||||
Asset-backed securities | — | 1,361 | — | 1,361 | ||||||||||||||||||||
Commercial paper | — | 66,159 | — | 66,159 | ||||||||||||||||||||
U. S. government bonds | — | 9,995 | — | 9,995 | ||||||||||||||||||||
Corporate bonds | — | 172,648 | — | 172,648 | ||||||||||||||||||||
Certificate of deposit | — | 4,009 | — | 4,009 | ||||||||||||||||||||
Municipal debt securities | — | 12,997 | — | 12,997 | ||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||
U.S. agency securities | — | 64,995 | — | 64,995 | ||||||||||||||||||||
Certificate of deposit | — | 2,699 | — | 2,699 | ||||||||||||||||||||
Corporate bonds | — | 125,005 | — | 125,005 | ||||||||||||||||||||
U.S. government bonds | — | 7,996 | — | 7,996 | ||||||||||||||||||||
Foreign government bonds | — | 2,754 | — | 2,754 | ||||||||||||||||||||
Total assets | $ | 53,959 | $ | 565,973 | $ | — | $ | 619,932 | ||||||||||||||||
Balance_Sheet_Components
Balance Sheet Components | 6 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Balance Sheet Components | Balance Sheet Components | |||||||||||
Property and Equipment, Net | ||||||||||||
Property and equipment consist of the following: | ||||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||
(in thousands) | ||||||||||||
Computer hardware | $ | 12,577 | $ | 11,882 | ||||||||
Software | 4,666 | 4,605 | ||||||||||
Furniture and fixtures | 3,017 | 2,732 | ||||||||||
Leasehold improvements | 7,967 | 7,069 | ||||||||||
Total property and equipment | 28,227 | 26,288 | ||||||||||
Less accumulated depreciation | (15,855 | ) | (13,681 | ) | ||||||||
Property and equipment, net | $ | 12,372 | $ | 12,607 | ||||||||
As of January 31, 2015 and July 31, 2014, no property and equipment was pledged as collateral against borrowings. Depreciation expense was $1.5 million and $2.9 million for the three and six months ended January 31, 2015, respectively, and $1.3 million and $2.5 million for the three and six months ended January 31, 2014, respectively. | ||||||||||||
Goodwill and Intangible Assets | ||||||||||||
The following table presents changes in the carrying amount of goodwill: | ||||||||||||
Total | ||||||||||||
(in thousands) | ||||||||||||
Goodwill, July 31, 2014 | $ | 9,205 | ||||||||||
Changes in carrying value | — | |||||||||||
Goodwill, January 31, 2015 | $ | 9,205 | ||||||||||
Intangible assets consist of the following: | ||||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||
Acquired technology: | (in thousands) | |||||||||||
Cost | $ | 7,200 | $ | 7,200 | ||||||||
Accumulated amortization | (2,481 | ) | (1,761 | ) | ||||||||
Intangible assets, net | $ | 4,719 | $ | 5,439 | ||||||||
Amortization expense was $0.4 million and $0.7 million for the three and six months ended January 31, 2015, respectively, and $0.4 million and $0.7 million for the three and six months ended January 31, 2014, respectively. Estimated aggregate amortization expense for each of the next four fiscal years is as follows: | ||||||||||||
Future Amortization | ||||||||||||
(in thousands) | ||||||||||||
Fiscal year ending July 31, | ||||||||||||
2015 (remainder of fiscal year) | 720 | |||||||||||
2016 | 1,440 | |||||||||||
2017 | 1,440 | |||||||||||
2018 | 1,119 | |||||||||||
Total | $ | 4,719 | ||||||||||
Accrued Employee Compensation | ||||||||||||
Accrued employee compensation consists of the following: | ||||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||
(in thousands) | ||||||||||||
Accrued bonuses | $ | 8,077 | $ | 19,213 | ||||||||
Accrued commission | 1,811 | 3,593 | ||||||||||
Accrued vacation | 7,295 | 8,100 | ||||||||||
Accrued salaries, payroll taxes and benefits | 3,692 | 4,006 | ||||||||||
Total | $ | 20,875 | $ | 34,912 | ||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
Changes in accumulated other comprehensive loss by component during the six months ended January 31, 2015 were as follows: | ||||||||||||
Foreign Currency Items | Unrealized gain (loss) on available-for-sale securities | Total | ||||||||||
(in thousands) | ||||||||||||
Balance as of July 31, 2014 | $ | (1,310 | ) | $ | (57 | ) | $ | (1,367 | ) | |||
Other comprehensive gain (loss) before reclassification | (4,218 | ) | 206 | (4,012 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | — | (7 | ) | (7 | ) | |||||||
Tax effect | — | (72 | ) | (72 | ) | |||||||
Balance as of January 31, 2015 | $ | (5,528 | ) | $ | 70 | $ | (5,458 | ) | ||||
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 6 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Share | |||||||||||||||
The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share for the three and six months ended January 31, 2015 and 2014: | ||||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 3,976 | $ | 3,332 | $ | 979 | $ | (3,123 | ) | |||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.05 | $ | 0.01 | $ | (0.05 | ) | |||||||
Diluted | $ | 0.06 | $ | 0.05 | $ | 0.01 | $ | (0.05 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted average shares used in computing net income (loss) per share: | ||||||||||||||||
Basic | 69,883,622 | 67,360,775 | 69,600,161 | 63,005,064 | ||||||||||||
Weighted average effect of dilutive stock options | 1,264,242 | 2,073,035 | 1,321,308 | — | ||||||||||||
Weighted average effect of dilutive restricted stock units | 908,997 | 1,470,445 | 993,503 | — | ||||||||||||
Diluted | 72,056,861 | 70,904,255 | 71,914,972 | 63,005,064 | ||||||||||||
The following outstanding shares of common stock equivalents were excluded from the computation of diluted income (loss) per share for the periods presented because including them would have been antidilutive: | ||||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Stock options to purchase common stock | 302,569 | 226,542 | 296,894 | 3,433,537 | ||||||||||||
Restricted stock units | 2,250 | 141,626 | 28,611 | 4,561,515 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
There has been no material change in the Company’s contractual obligations and commitments other than in the ordinary course of business since the Company’s fiscal year ended July 31, 2014. See the Annual Report on Form 10-K for the fiscal year ended July 31, 2014 for additional information regarding the Company’s contractual obligations. | |
Leases | |
The Company leases certain facilities and equipment under operating leases. On December 5, 2011, the Company entered into a seven-year lease for a facility to serve as its corporate headquarters, located in Foster City, California, for approximately 97,674 square feet of space which commenced on August 1, 2012. In connection with this lease, the Company opened an unsecured letter of credit with Silicon Valley Bank for $1.2 million. On August 1, 2014, the Company amended its operating lease agreement to reduce the unsecured letter of credit to $0.8 million. | |
Lease expense for all worldwide facilities and equipment, which is being recognized on a straight-line basis over terms of the various leases, was $1.6 million and $3.2 million for the three and six months ended January 31, 2015, respectively, and $1.4 million and $2.9 million for the three and six months ended January 31, 2014, respectively. | |
Letters of Credit | |
The Company had two outstanding letters of credit required to secure contractual commitments and prepayments as of January 31, 2015 and July 31, 2014, respectively. In addition to the unsecured letter of credit for the building lease, the Company had an unsecured letter of credit agreement related to a customer arrangement for Polish Zloty 10.0 million (approximately $2.7 million as of January 31, 2015) to secure contractual commitments and prepayments. No amounts were outstanding under the Company’s unsecured letters of credit as of January 31, 2015 or July 31, 2014. | |
Legal Proceedings | |
From time to time, the Company is involved in various legal proceedings and receives claims, arising from the normal course of business activities. The Company accrues for estimated losses in the accompanying condensed consolidated financial statements for matters with respect to which the Company believes the likelihood of an adverse outcome is probable and the amount of the loss is reasonably estimable. | |
Indemnification | |
The Company sells software licenses and services to its customers under contracts (“Software License”). Each Software License contains the terms of the contractual arrangement with the customer and generally includes certain provisions for defending the customer against any claims that the Company’s software infringes upon a patent, copyright, trademark, or other proprietary right of a third party. Software Licenses also indemnify the customer against losses, expenses, and liabilities from damages that may be assessed against the customer in the event the Company’s software is found to infringe upon such third party rights. | |
The Company has not had to reimburse any of its customers for losses related to indemnification provisions and no material claims against the Company are outstanding as of January 31, 2015 or July 31, 2014. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under various Software Licenses, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions. | |
The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of these persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable the Company to recover a portion of any future amounts paid. |
Stockholders_Equity_and_Stockb
Stockholders' Equity and Stock-based Compensation | 6 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Stockholders' Equity and Stock-based Compensation [Abstract] | ||||||||||||||||
Stockholders' Equity and Stock-based Compensation | Stockholders’ Equity and Stock-Based Compensation | |||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||
Stock-based compensation expense related to all employee and non-employee stock-based awards is as follows: | ||||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Stock-based compensation expenses: | (in thousands) | |||||||||||||||
Cost of license | $ | 55 | $ | 51 | $ | 104 | $ | 96 | ||||||||
Cost of maintenance revenues | 309 | 201 | 586 | 361 | ||||||||||||
Cost of services revenues | 3,878 | 3,120 | 7,391 | 5,834 | ||||||||||||
Research and development | 2,662 | 2,402 | 4,805 | 4,397 | ||||||||||||
Sales and marketing | 3,442 | 3,790 | 6,429 | 5,849 | ||||||||||||
General and administrative | 3,152 | 2,575 | 6,171 | 4,788 | ||||||||||||
Total stock-based compensation expenses | $ | 13,498 | $ | 12,139 | $ | 25,486 | $ | 21,325 | ||||||||
As of January 31, 2015, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows: | ||||||||||||||||
As of January 31, 2015 | ||||||||||||||||
Unrecognized Expense | Average Expected Recognition Period | |||||||||||||||
(in thousands) | (in years) | |||||||||||||||
Restricted stock units | $ | 104,415 | 2.5 | |||||||||||||
Stock options | 6,046 | 2.2 | ||||||||||||||
$ | 110,461 | |||||||||||||||
RSUs | ||||||||||||||||
RSU activity under the Company’s equity incentive plans is as follows: | ||||||||||||||||
RSUs Outstanding | ||||||||||||||||
Number of RSUs Outstanding | Weighted Average Grant Date Fair Value | |||||||||||||||
Balance as of July 31, 2014 | 3,384,221 | $ | 30.7 | |||||||||||||
Granted | 1,208,223 | 45.78 | ||||||||||||||
Released | (1,053,907 | ) | 23.27 | |||||||||||||
Canceled | (204,006 | ) | 34.28 | |||||||||||||
Balance as of January 31, 2015 | 3,334,531 | $ | 38.29 | |||||||||||||
The fair value of RSUs released was $25.4 million and $49.2 million during the three and six months ended January 31, 2015, respectively, and $23.1 million and $43.6 million during the three and six months ended January 31, 2014, respectively. | ||||||||||||||||
Stock Options | ||||||||||||||||
Stock option activity under the Company’s equity incentive plans is as follows: | ||||||||||||||||
Stock Options Outstanding | ||||||||||||||||
Number of Stock Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (1) | |||||||||||||
(in years) | (in thousands) | |||||||||||||||
Balance as of July 31, 2014 | 2,400,253 | $ | 11.24 | 5.5 | $ | 71,640 | ||||||||||
Granted | 103,643 | 45.27 | ||||||||||||||
Exercised | (408,471 | ) | 9.45 | |||||||||||||
Canceled | (40,803 | ) | 24.18 | |||||||||||||
Balance as of January 31, 2015 | 2,054,622 | $ | 13.05 | 5.2 | $ | 76,128 | ||||||||||
Vested and expected to vest as of January 31, 2015 | 2,033,105 | $ | 12.74 | 5.1 | $ | 75,968 | ||||||||||
Exercisable as of January 31, 2015 | 1,702,642 | $ | 7.27 | 5.2 | $ | 72,925 | ||||||||||
(1) | Aggregate intrinsic value represents the difference between the Company's closing stock prices of $50.10 and $40.50 on January 31, 2015 and July 31, 2014, respectively, and the exercise price of outstanding, in-the-money options. | |||||||||||||||
The options exercisable as of January 31, 2015 include options that are exercisable prior to vesting. The total intrinsic value of options exercised was approximately $9.3 million and $16.0 million for the three and six months ended January 31, 2015, respectively, and $28.5 million and $48.9 million for the three and six months ended January 31, 2014, respectively. There were no options granted during the three months ended January 31, 2015. The weighted average grant date fair value of options granted was $20.53 for the six months ended January 31, 2015, and $19.52 and $21.26 for the three and six months ended January 31, 2014, respectively. | ||||||||||||||||
Valuation of Awards | ||||||||||||||||
The per share fair value of each stock option was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: | ||||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Expected life (in years) | * | 5.0 - 6.1 | 6 | 5.0 - 6.1 | ||||||||||||
Risk-free interest rate | * | 1.5% - 1.9% | 1.92% | 1.5% - 2.0% | ||||||||||||
Expected volatility | * | 41.3% - 45.8% | 45.10% | 41.3% - 46.2% | ||||||||||||
Expected dividend yield | * | —% | —% | —% | ||||||||||||
* There were no options granted during the three months ended January 31, 2015. | ||||||||||||||||
Common Stock Reserved for Issuance | ||||||||||||||||
As of January 31, 2015 and July 31, 2014, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share, and 70,161,817 and 69,082,261 shares of common stock were issued and outstanding, respectively. As of January 31, 2015 and July 31, 2014, the Company had reserved shares of common stock for future issuance as follows: | ||||||||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||||||
Exercise of stock options to purchase common stock | 2,054,622 | 2,400,253 | ||||||||||||||
Vesting of restricted stock units | 3,334,531 | 3,384,221 | ||||||||||||||
Shares available under stock plans | 14,523,410 | 11,703,962 | ||||||||||||||
Total common stock reserved for issuance | 19,912,563 | 17,488,436 | ||||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The Company recognized income tax benefits of $1.0 million and $1.6 million for the three and six months ended January 31, 2015, respectively, and recognized an income tax provision of $1.4 million for the three months ended January 31, 2014 and an income tax benefit of $4.5 million for the six months ended January 31, 2014. The change for the three months ended January 31, 2015 is primarily due to a decrease in profitability. The change for the six months ended January 31, 2015 is primarily due to an increase in profitability, as compared to the same periods a year ago. On December 19, 2014, President Obama signed H.R.5771, The Tax Increase Prevention Act, extending the federal research and development ("R&D") credit through December 31, 2014. For the three and six months ended January 31, 2015, a tax benefit of $1.2 million was recorded for federal R&D credits for the period from January 1, 2014 through July 31, 2014. The effective tax rate of (33.9)% and 253.0% for the three and six months ended January 31, 2015 differs from the statutory U.S. federal income tax rate of 35% mainly due to the benefit from incentive stock options tax deduction, permanent differences for stock-based compensation, the impact of state income taxes, the tax rate differences between the United States and foreign countries, and R&D credits. | |
The Company provides U.S. income taxes on the earnings of foreign subsidiaries, unless the subsidiaries’ earnings are considered indefinitely reinvested outside the United States. As of January 31, 2015, U.S. income taxes were not provided for on the cumulative total of $22.3 million undistributed earnings from certain foreign subsidiaries. As of January 31, 2015, the unrecognized deferred tax liability for these earnings was approximately $2.9 million. | |
During the six months ended January 31, 2015, the change in unrecognized tax benefits from the beginning of the period was $1.3 million. Accordingly, as of January 31, 2015, the Company had unrecognized tax benefits of $5.1 million that, if recognized, would affect the Company’s effective tax rate. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
The Company operates in one segment. The Company’s chief operating decision maker (the “CODM”), its Chief Executive Officer, manages the Company’s operations on a consolidated basis for purposes of allocating resources. When evaluating the Company’s financial performance, the CODM reviews separate revenues information for the Company’s license, maintenance and professional services offerings, while all other financial information is reviewed on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States. | ||||||||||||||||
The following table sets forth revenues by country and region based on the billing address of the customer: | ||||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in thousands) | ||||||||||||||||
United States | $ | 43,928 | $ | 40,707 | $ | 82,876 | $ | 77,933 | ||||||||
Canada | 10,830 | 11,731 | 19,217 | 20,955 | ||||||||||||
Other Americas | 2,755 | 3,420 | 4,613 | 5,239 | ||||||||||||
Total Americas | 57,513 | 55,858 | 106,706 | 104,127 | ||||||||||||
United Kingdom | 11,815 | 14,799 | 24,013 | 20,654 | ||||||||||||
Other EMEA | 8,838 | 8,034 | 20,627 | 16,025 | ||||||||||||
Total EMEA | 20,653 | 22,833 | 44,640 | 36,679 | ||||||||||||
Total APAC | 11,280 | 4,784 | 17,834 | 9,198 | ||||||||||||
Total revenues | $ | 89,446 | $ | 83,475 | $ | 169,180 | $ | 150,004 | ||||||||
No country, other than those presented above, accounted for more than 10% of revenues during the three and six months ended January 31, 2015 and 2014. | ||||||||||||||||
The following table sets forth the Company’s long-lived assets, including intangibles and goodwill, net by geographic region: | ||||||||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||||||
(in thousands) | ||||||||||||||||
Americas | $ | 23,540 | $ | 25,573 | ||||||||||||
EMEA | 2,208 | 950 | ||||||||||||||
APAC | 548 | 728 | ||||||||||||||
Total | $ | 26,296 | $ | 27,251 | ||||||||||||
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 6 Months Ended | |
Jan. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Business | Business | |
Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc., together with its subsidiaries (the “Company”), provides Internet-based software platforms for core insurance operations, including underwriting and policy administration, claim management and billing. The Company’s customers include insurance carriers for property and casualty and workers’ compensation insurance. The Company has wholly-owned subsidiaries in Australia, Canada, China, France, Germany, Hong Kong, Ireland, Italy, Japan, Poland, the United Kingdom and Switzerland. | ||
The Company offers a suite of applications to enable core property and casualty (“P&C”) insurance operations comprised of the following products: PolicyCenter, ClaimCenter and BillingCenter. The Company also provides maintenance support and professional services to the extent requested by its customers. | ||
Basis of Presentation | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and accompanying notes include the Company and its wholly-owned subsidiaries, and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All inter-company balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). | ||
These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K. | ||
Use of Estimates | Use of Estimates | |
The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Significant items subject to such estimates include revenue recognition, the useful lives of property and equipment and intangible assets, allowance for doubtful accounts, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, valuation of goodwill and intangible assets, and contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. | ||
Cash. Cash Equivalents and Investments | Cash, Cash Equivalents and Investments | |
Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents consist of commercial paper and money market funds. The Company classifies investments as short-term when they have remaining contractual maturities of less than one year from the balance sheet date, and as long-term when the investments have remaining contractual maturities of more than one year from the balance sheet date. The Company’s investment policy is consistent with the definition of available-for-sale securities. From time to time, the Company may sell certain securities but the objectives are generally not to generate profits on short-term differences in price. | ||
Concentration of Credit Risk | Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments and accounts receivable. The Company maintains its cash and cash equivalents with high quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded on the balance sheet are in excess of amounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”). | ||
Revenue Recognition | Revenue Recognition | |
The Company enters into arrangements to deliver multiple products or services (multiple-elements). The Company applies software revenue recognition rules and allocates the total revenues among elements based on vendor-specific objective evidence (“VSOE”) of fair value of each element. The Company recognizes revenue on a net basis excluding taxes collected from customers and remitted to government authorities. | ||
Revenues are derived from three sources: | ||
(i) | License fees, related to term (or time-based) licenses, perpetual software licenses, and other; | |
(ii) | Maintenance fees, related to email and phone support, bug fixes and unspecified software updates and upgrades released when, and if, available during the maintenance term; and | |
(iii) | Services fees, related to professional services related to implementation of our software, reimbursable travel and training. | |
Revenues are recognized when all of the following criteria are met: | ||
• | Persuasive evidence of an arrangement exists. Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period. | |
• | Delivery or performance has occurred. The Company’s software is delivered electronically to the customer. Delivery is considered to have occurred when the Company provides the customer access to the software along with login credentials. | |
• | Fees are fixed or determinable. Arrangements where a significant portion of the fee is due beyond 90 days from delivery are not considered to be fixed or determinable. Revenues from such arrangements are recognized as payments become due, assuming all other revenue recognition criteria have been met. Fees from term licenses are generally due in annual or, in certain cases, quarterly, installments over the term of the agreement beginning on the effective date of the license. Accordingly, fees from term licenses are not considered to be fixed or determinable until they become due. | |
• | Collectability is probable. Collectability is assessed on a customer-by-customer basis, based primarily on creditworthiness as determined by credit checks and analysis, as well as customer payment history. Payment terms generally range from 30 to 90 days from invoice date. If it is determined prior to revenue recognition that collection of an arrangement fee is not probable, revenues are deferred until collection becomes probable or cash is collected, assuming all other revenue recognition criteria are satisfied. | |
VSOE of fair value does not exist for the Company’s software licenses; therefore, the Company allocates revenues to software licenses using the residual method. Under the residual method, the amount recognized for license fees is the difference between the total fixed and determinable fees and the VSOE of fair value for the undelivered elements under the arrangement. | ||
The VSOE of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for those elements when sold separately. VSOE of fair value for maintenance is established using the stated maintenance renewal rate in the customer’s contract. The Company generally enters into term licenses ranging from 3 to 7 years. For term licenses with duration of one year or less, no VSOE of fair value for maintenance exists. VSOE of fair value for services is established if a substantial majority of historical stand-alone selling prices for a service fall within a reasonably narrow price range. | ||
If the undelivered elements are all service elements and VSOE of fair value does not exist for one or more service element, the total arrangement fee is recognized ratably over the longest service period starting at software delivery, assuming all the related services have been made available to the customer. | ||
In certain offerings sold as fixed fee arrangements, the Company recognizes services revenues on a proportional performance basis as performance obligations are completed by using the ratio of labor hours to date as an input measure compared to total estimated labor hours for the consulting services. | ||
In cases where professional services are deemed to be essential to the functionality of the software, the arrangement is accounted for using contract accounting until the essential services are complete. If reliable estimates of total project costs can be made, the Company applies the percentage-of-completion method whereby percentage toward completion is measured by using the ratio of service billings to date compared to total estimated service billings for the consulting services. Service billings approximate labor hours as an input measure since they are generally billed monthly on a time and material basis. The fees related to the maintenance are recognized over the period the maintenance is provided. | ||
If reliable estimates of total project costs cannot be made or VSOE for maintenance has not been established and it is reasonably assured that no loss will be incurred under the arrangement, revenues are recognized pursuant to the zero gross margin method. Under this method, revenues recognized are limited to the costs incurred for the implementation services. When the zero gross margin method is applied for lack of reliable project estimates and subsequently project estimates become reliable, the Company switches to the percentage-of-completion method; resulting in a cumulative effect adjustment for deferred license revenues to the extent of progress toward completion, and the related deferred professional service margin is recognized in full as revenues. There were no such cumulative effect adjustments for revenues for the three and six months ended January 31, 2015 or 2014. | ||
Deferred Revenues | Deferred Revenues | |
Deferred revenues represent license, maintenance and professional services amounts, which are billed to or collected from customers for which the related revenues have not been recognized. The revenues are deferred when one or more of the revenue recognition criteria have not been met. The current portion of deferred revenues represents the amount that is expected to be recognized as revenues within one year from the balance sheet date. The Company generally invoices fees for licenses and maintenance to its customers in annual or, in certain cases, quarterly installments payable in advance. Accordingly, the deferred revenues balance does not represent the total contract value of annual or multi-year, non-cancellable arrangements. | ||
Income Taxes | Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets related to excess tax benefits are recorded when utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount of which realization is more likely than not. | ||
Accounting guidance related to accounting for uncertainties in income taxes provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | ||
The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its condensed consolidated statement of operations. | ||
Stock-Based Compensation | Stock-Based Compensation | |
The Company recognizes compensation expense related to its stock options and restricted stock units (“RSUs”) granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The RSUs are subject to time-based vesting, which generally occurs over a period of 4 years. The awards expire 10 years from the grant date. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, of the Company’s stock options using the Black-Scholes option-pricing model. The Company determines the grant date fair value of its RSUs based on the closing market price of the Company’s common stock on the date of grant. The Company recognizes the fair value of stock-based compensation for awards which contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards which contain performance conditions based upon the probability of that performance condition being met, net of estimated forfeitures, using the graded method. | ||
In the fourth quarter of fiscal 2014, the Company changed its policy for recognizing stock-based compensation expense from the accelerated attribution method of accounting to the straight-line method of accounting for certain share-based compensation awards. Comparative financial statements for prior periods have been adjusted to apply the straight-line method retrospectively. See Note 2 “Change in Accounting Policy - Stock-based Compensation” of Notes to Consolidated Financial Statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on September 17, 2014. | ||
Recent Accounting Pronouncement | Recent Accounting Pronouncement | |
Stock-Based Compensation | ||
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718). This ASU provides authoritative guidance for share-based payments with a performance condition that could be achieved after the requisite service period is achieved. The standard will be effective for the Company beginning August 1, 2016. The Company currently does not have such share-based arrangements and does not expect the adoption of this standard will have material impact on its condensed consolidated financial statements. | ||
Revenue from Contracts with Customers | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The standard will be effective for the Company beginning August 1, 2017. The Company is currently evaluating the impact of the adoption of this accounting standard update on its condensed consolidated financial statements. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | Available-for-sale investments within cash equivalents and investments consist of the following: | |||||||||||||||||||||||
31-Jan-15 | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. agency securities | $ | 92,107 | $ | 52 | $ | (3 | ) | $ | 92,156 | |||||||||||||||
Commercial paper | 99,469 | 14 | (11 | ) | 99,472 | |||||||||||||||||||
Corporate bonds | 316,905 | 113 | (53 | ) | 316,965 | |||||||||||||||||||
U.S. government bonds | 20,767 | 28 | — | 20,795 | ||||||||||||||||||||
Foreign government bonds | 2,726 | 5 | — | 2,731 | ||||||||||||||||||||
Money market funds | 60,516 | — | — | 60,516 | ||||||||||||||||||||
Certificates of deposit | 6,703 | — | (1 | ) | 6,702 | |||||||||||||||||||
Municipal debt securities | 4,696 | 4 | — | 4,700 | ||||||||||||||||||||
Total | $ | 603,889 | $ | 216 | $ | (68 | ) | $ | 604,037 | |||||||||||||||
31-Jul-14 | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. agency securities | $ | 94,048 | $ | 30 | $ | (21 | ) | $ | 94,057 | |||||||||||||||
Asset-backed securities | 1,363 | — | (2 | ) | 1,361 | |||||||||||||||||||
Commercial paper | 132,442 | 14 | (4 | ) | 132,452 | |||||||||||||||||||
Corporate bonds | 297,731 | 104 | (182 | ) | 297,653 | |||||||||||||||||||
U.S. government bonds | 17,991 | 3 | (3 | ) | 17,991 | |||||||||||||||||||
Foreign government bonds | 2,755 | — | (1 | ) | 2,754 | |||||||||||||||||||
Certificates of deposit | 6,709 | — | (1 | ) | 6,708 | |||||||||||||||||||
Money market funds | 53,959 | — | — | 53,959 | ||||||||||||||||||||
Municipal debt securities | 12,985 | 13 | (1 | ) | 12,997 | |||||||||||||||||||
Total | $ | 619,983 | $ | 164 | $ | (215 | ) | $ | 619,932 | |||||||||||||||
Schedule of Unrealized Loss on Investments | The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: | |||||||||||||||||||||||
31-Jan-15 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Commercial paper | $ | 23,768 | $ | (11 | ) | $ | — | $ | — | $ | 23,768 | $ | (11 | ) | ||||||||||
U. S. Agency Securities | 11,373 | (3 | ) | — | — | 11,373 | (3 | ) | ||||||||||||||||
Corporate bonds | 122,288 | (53 | ) | — | — | 122,288 | (53 | ) | ||||||||||||||||
Certificate of deposit | 4,001 | (1 | ) | — | — | 4,001 | (1 | ) | ||||||||||||||||
Total | $ | 161,430 | $ | (68 | ) | $ | — | $ | — | $ | 161,430 | $ | (68 | ) | ||||||||||
Investments Classified by Contractual Maturity Date | The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of January 31, 2015: | |||||||||||||||||||||||
Expected maturities for the quarter ending January 31, | ||||||||||||||||||||||||
2016 | 2017 | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. agency securities | $ | 63,296 | $ | 28,860 | $ | 92,156 | ||||||||||||||||||
Commercial paper | 99,472 | — | 99,472 | |||||||||||||||||||||
Corporate bonds | 272,586 | 44,379 | 316,965 | |||||||||||||||||||||
U.S. government bonds | 14,986 | 5,809 | 20,795 | |||||||||||||||||||||
Foreign government bonds | — | 2,731 | 2,731 | |||||||||||||||||||||
Money market funds | 60,516 | — | 60,516 | |||||||||||||||||||||
Certificates of deposit | 6,702 | — | 6,702 | |||||||||||||||||||||
Municipal debt securities | 4,700 | — | 4,700 | |||||||||||||||||||||
Total | $ | 522,258 | $ | 81,779 | $ | 604,037 | ||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The following tables summarize the Company’s financial assets measured at fair value on a recurring basis, by level within the fair value hierarchy as of January 31, 2015 and July 31, 2014: | |||||||||||||||||||||||
31-Jan-15 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Commercial paper | $ | — | $ | 41,581 | $ | — | $ | 41,581 | ||||||||||||||||
Money market funds | 60,516 | — | — | 60,516 | ||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
U.S. agency securities | — | 63,296 | — | 63,296 | ||||||||||||||||||||
Commercial paper | — | 57,891 | — | 57,891 | ||||||||||||||||||||
Corporate bonds | — | 272,586 | — | 272,586 | ||||||||||||||||||||
U.S. government bonds | — | 14,986 | — | 14,986 | ||||||||||||||||||||
Municipal debt securities | — | 4,700 | — | 4,700 | ||||||||||||||||||||
Certificates of deposit | — | 6,702 | — | 6,702 | ||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||
U.S. agency securities | — | 28,860 | — | 28,860 | ||||||||||||||||||||
U.S. government bonds | — | 5,809 | — | 5,809 | ||||||||||||||||||||
Corporate bonds | — | 44,379 | — | 44,379 | ||||||||||||||||||||
Foreign government bonds | — | 2,731 | — | 2,731 | ||||||||||||||||||||
Total assets | $ | 60,516 | $ | 543,521 | $ | — | $ | 604,037 | ||||||||||||||||
31-Jul-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Commercial paper | $ | — | $ | 66,293 | $ | — | $ | 66,293 | ||||||||||||||||
Money market funds | 53,959 | — | — | 53,959 | ||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
U.S. agency securities | — | 29,062 | — | 29,062 | ||||||||||||||||||||
Asset-backed securities | — | 1,361 | — | 1,361 | ||||||||||||||||||||
Commercial paper | — | 66,159 | — | 66,159 | ||||||||||||||||||||
U. S. government bonds | — | 9,995 | — | 9,995 | ||||||||||||||||||||
Corporate bonds | — | 172,648 | — | 172,648 | ||||||||||||||||||||
Certificate of deposit | — | 4,009 | — | 4,009 | ||||||||||||||||||||
Municipal debt securities | — | 12,997 | — | 12,997 | ||||||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||
U.S. agency securities | — | 64,995 | — | 64,995 | ||||||||||||||||||||
Certificate of deposit | — | 2,699 | — | 2,699 | ||||||||||||||||||||
Corporate bonds | — | 125,005 | — | 125,005 | ||||||||||||||||||||
U.S. government bonds | — | 7,996 | — | 7,996 | ||||||||||||||||||||
Foreign government bonds | — | 2,754 | — | 2,754 | ||||||||||||||||||||
Total assets | $ | 53,959 | $ | 565,973 | $ | — | $ | 619,932 | ||||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Property and equipment | Property and equipment consist of the following: | |||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||
(in thousands) | ||||||||||||
Computer hardware | $ | 12,577 | $ | 11,882 | ||||||||
Software | 4,666 | 4,605 | ||||||||||
Furniture and fixtures | 3,017 | 2,732 | ||||||||||
Leasehold improvements | 7,967 | 7,069 | ||||||||||
Total property and equipment | 28,227 | 26,288 | ||||||||||
Less accumulated depreciation | (15,855 | ) | (13,681 | ) | ||||||||
Property and equipment, net | $ | 12,372 | $ | 12,607 | ||||||||
Goodwill and Intangible Assets | The following table presents changes in the carrying amount of goodwill: | |||||||||||
Total | ||||||||||||
(in thousands) | ||||||||||||
Goodwill, July 31, 2014 | $ | 9,205 | ||||||||||
Changes in carrying value | — | |||||||||||
Goodwill, January 31, 2015 | $ | 9,205 | ||||||||||
Intangible assets consist of the following: | ||||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||
Acquired technology: | (in thousands) | |||||||||||
Cost | $ | 7,200 | $ | 7,200 | ||||||||
Accumulated amortization | (2,481 | ) | (1,761 | ) | ||||||||
Intangible assets, net | $ | 4,719 | $ | 5,439 | ||||||||
Future Amortization Expense | Estimated aggregate amortization expense for each of the next four fiscal years is as follows: | |||||||||||
Future Amortization | ||||||||||||
(in thousands) | ||||||||||||
Fiscal year ending July 31, | ||||||||||||
2015 (remainder of fiscal year) | 720 | |||||||||||
2016 | 1,440 | |||||||||||
2017 | 1,440 | |||||||||||
2018 | 1,119 | |||||||||||
Total | $ | 4,719 | ||||||||||
Accrued Employee Compensation | Accrued employee compensation consists of the following: | |||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||
(in thousands) | ||||||||||||
Accrued bonuses | $ | 8,077 | $ | 19,213 | ||||||||
Accrued commission | 1,811 | 3,593 | ||||||||||
Accrued vacation | 7,295 | 8,100 | ||||||||||
Accrued salaries, payroll taxes and benefits | 3,692 | 4,006 | ||||||||||
Total | $ | 20,875 | $ | 34,912 | ||||||||
Components of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss by component during the six months ended January 31, 2015 were as follows: | |||||||||||
Foreign Currency Items | Unrealized gain (loss) on available-for-sale securities | Total | ||||||||||
(in thousands) | ||||||||||||
Balance as of July 31, 2014 | $ | (1,310 | ) | $ | (57 | ) | $ | (1,367 | ) | |||
Other comprehensive gain (loss) before reclassification | (4,218 | ) | 206 | (4,012 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | — | (7 | ) | (7 | ) | |||||||
Tax effect | — | (72 | ) | (72 | ) | |||||||
Balance as of January 31, 2015 | $ | (5,528 | ) | $ | 70 | $ | (5,458 | ) | ||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Company's basic and diluted earnings per share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share for the three and six months ended January 31, 2015 and 2014: | |||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 3,976 | $ | 3,332 | $ | 979 | $ | (3,123 | ) | |||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.05 | $ | 0.01 | $ | (0.05 | ) | |||||||
Diluted | $ | 0.06 | $ | 0.05 | $ | 0.01 | $ | (0.05 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted average shares used in computing net income (loss) per share: | ||||||||||||||||
Basic | 69,883,622 | 67,360,775 | 69,600,161 | 63,005,064 | ||||||||||||
Weighted average effect of dilutive stock options | 1,264,242 | 2,073,035 | 1,321,308 | — | ||||||||||||
Weighted average effect of dilutive restricted stock units | 908,997 | 1,470,445 | 993,503 | — | ||||||||||||
Diluted | 72,056,861 | 70,904,255 | 71,914,972 | 63,005,064 | ||||||||||||
Schedule of Antidilutive Securities excluded from EPS | The following outstanding shares of common stock equivalents were excluded from the computation of diluted income (loss) per share for the periods presented because including them would have been antidilutive: | |||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Stock options to purchase common stock | 302,569 | 226,542 | 296,894 | 3,433,537 | ||||||||||||
Restricted stock units | 2,250 | 141,626 | 28,611 | 4,561,515 | ||||||||||||
Stockholders_Equity_and_Stockb1
Stockholders' Equity and Stock-based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Stockholders' Equity and Stock-based Compensation [Abstract] | ||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense related to all employee and non-employee stock-based awards is as follows: | |||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Stock-based compensation expenses: | (in thousands) | |||||||||||||||
Cost of license | $ | 55 | $ | 51 | $ | 104 | $ | 96 | ||||||||
Cost of maintenance revenues | 309 | 201 | 586 | 361 | ||||||||||||
Cost of services revenues | 3,878 | 3,120 | 7,391 | 5,834 | ||||||||||||
Research and development | 2,662 | 2,402 | 4,805 | 4,397 | ||||||||||||
Sales and marketing | 3,442 | 3,790 | 6,429 | 5,849 | ||||||||||||
General and administrative | 3,152 | 2,575 | 6,171 | 4,788 | ||||||||||||
Total stock-based compensation expenses | $ | 13,498 | $ | 12,139 | $ | 25,486 | $ | 21,325 | ||||||||
Unrecognized compensation cost, adjusted for estimated forfeitures | As of January 31, 2015, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows: | |||||||||||||||
As of January 31, 2015 | ||||||||||||||||
Unrecognized Expense | Average Expected Recognition Period | |||||||||||||||
(in thousands) | (in years) | |||||||||||||||
Restricted stock units | $ | 104,415 | 2.5 | |||||||||||||
Stock options | 6,046 | 2.2 | ||||||||||||||
$ | 110,461 | |||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU activity under the Company’s equity incentive plans is as follows: | |||||||||||||||
RSUs Outstanding | ||||||||||||||||
Number of RSUs Outstanding | Weighted Average Grant Date Fair Value | |||||||||||||||
Balance as of July 31, 2014 | 3,384,221 | $ | 30.7 | |||||||||||||
Granted | 1,208,223 | 45.78 | ||||||||||||||
Released | (1,053,907 | ) | 23.27 | |||||||||||||
Canceled | (204,006 | ) | 34.28 | |||||||||||||
Balance as of January 31, 2015 | 3,334,531 | $ | 38.29 | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity under the Company’s equity incentive plans is as follows: | |||||||||||||||
Stock Options Outstanding | ||||||||||||||||
Number of Stock Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (1) | |||||||||||||
(in years) | (in thousands) | |||||||||||||||
Balance as of July 31, 2014 | 2,400,253 | $ | 11.24 | 5.5 | $ | 71,640 | ||||||||||
Granted | 103,643 | 45.27 | ||||||||||||||
Exercised | (408,471 | ) | 9.45 | |||||||||||||
Canceled | (40,803 | ) | 24.18 | |||||||||||||
Balance as of January 31, 2015 | 2,054,622 | $ | 13.05 | 5.2 | $ | 76,128 | ||||||||||
Vested and expected to vest as of January 31, 2015 | 2,033,105 | $ | 12.74 | 5.1 | $ | 75,968 | ||||||||||
Exercisable as of January 31, 2015 | 1,702,642 | $ | 7.27 | 5.2 | $ | 72,925 | ||||||||||
(1) | Aggregate intrinsic value represents the difference between the Company's closing stock prices of $50.10 and $40.50 on January 31, 2015 and July 31, 2014, respectively, and the exercise price of outstanding, in-the-money options. | |||||||||||||||
Black-Scholes valuation assumptions | The per share fair value of each stock option was determined on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Expected life (in years) | * | 5.0 - 6.1 | 6 | 5.0 - 6.1 | ||||||||||||
Risk-free interest rate | * | 1.5% - 1.9% | 1.92% | 1.5% - 2.0% | ||||||||||||
Expected volatility | * | 41.3% - 45.8% | 45.10% | 41.3% - 46.2% | ||||||||||||
Expected dividend yield | * | —% | —% | —% | ||||||||||||
Common Stock Reserved for Issuance | As of January 31, 2015 and July 31, 2014, the Company had reserved shares of common stock for future issuance as follows: | |||||||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||||||
Exercise of stock options to purchase common stock | 2,054,622 | 2,400,253 | ||||||||||||||
Vesting of restricted stock units | 3,334,531 | 3,384,221 | ||||||||||||||
Shares available under stock plans | 14,523,410 | 11,703,962 | ||||||||||||||
Total common stock reserved for issuance | 19,912,563 | 17,488,436 | ||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Revenues by country | The following table sets forth revenues by country and region based on the billing address of the customer: | |||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in thousands) | ||||||||||||||||
United States | $ | 43,928 | $ | 40,707 | $ | 82,876 | $ | 77,933 | ||||||||
Canada | 10,830 | 11,731 | 19,217 | 20,955 | ||||||||||||
Other Americas | 2,755 | 3,420 | 4,613 | 5,239 | ||||||||||||
Total Americas | 57,513 | 55,858 | 106,706 | 104,127 | ||||||||||||
United Kingdom | 11,815 | 14,799 | 24,013 | 20,654 | ||||||||||||
Other EMEA | 8,838 | 8,034 | 20,627 | 16,025 | ||||||||||||
Total EMEA | 20,653 | 22,833 | 44,640 | 36,679 | ||||||||||||
Total APAC | 11,280 | 4,784 | 17,834 | 9,198 | ||||||||||||
Total revenues | $ | 89,446 | $ | 83,475 | $ | 169,180 | $ | 150,004 | ||||||||
Property and equipment, net by geographic region | The following table sets forth the Company’s long-lived assets, including intangibles and goodwill, net by geographic region: | |||||||||||||||
31-Jan-15 | 31-Jul-14 | |||||||||||||||
(in thousands) | ||||||||||||||||
Americas | $ | 23,540 | $ | 25,573 | ||||||||||||
EMEA | 2,208 | 950 | ||||||||||||||
APAC | 548 | 728 | ||||||||||||||
Total | $ | 26,296 | $ | 27,251 | ||||||||||||
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies and Estimates (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 28, 2013 | Jul. 31, 2014 | |
customer | customer | customer | customer | ||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||||
Proceeds from issuance of common stock in connection with public offering, net of underwriting discounts and commissions | $0 | $389,949,000 | |||
Number of Customers Concentration Of Credit Risk | 0 | 0 | 0 | ||
Percentage of Revenue | 10.00% | 10.00% | 10.00% | ||
Number of Customers Concentration of Credit Risk Receivables | 1 | 1 | 1 | ||
Percentage of accounts receivable | 10.00% | 10.00% | 10.00% | ||
Adjustment for license revenues | 0 | 0 | |||
Adjustment for service revenues | 0 | 0 | |||
Restricted Stock Units (RSUs) | |||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||||
Period of RSUs time based Vesting | 4 years | ||||
Stock Options | |||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||||
Period of expiration for share based payment awards | 10 years | ||||
Minimum | |||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||||
Range of General Payment Terms | 30 days | ||||
Minimum | Licensing Agreements | |||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||||
Period of standard license agreement term | 3 years | ||||
Maximum | |||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||||
Range of General Payment Terms | 90 days | ||||
Maximum | Licensing Agreements | |||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||||
Period of standard license agreement term | 7 years | ||||
Follow-on Public Offerings | |||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||||
Shares of common stock | 8,306,291 | ||||
Price per share, USD | $48.75 | ||||
Proceeds from issuance of common stock in connection with public offering, net of underwriting discounts and commissions | 389,900,000 | ||||
Issuance costs | $400,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details 1) (USD $) | Jan. 31, 2015 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $603,889 | $619,983 |
Unrealized Gains | 216 | 164 |
Unrealized Losses | -68 | -215 |
Total assets | 604,037 | 619,932 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 92,107 | 94,048 |
Unrealized Gains | 52 | 30 |
Unrealized Losses | -3 | -21 |
Total assets | 92,156 | 94,057 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,363 | |
Unrealized Gains | 0 | |
Unrealized Losses | -2 | |
Total assets | 1,361 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 99,469 | 132,442 |
Unrealized Gains | 14 | 14 |
Unrealized Losses | -11 | -4 |
Total assets | 99,472 | 132,452 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 316,905 | 297,731 |
Unrealized Gains | 113 | 104 |
Unrealized Losses | -53 | -182 |
Total assets | 316,965 | 297,653 |
U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 20,767 | 17,991 |
Unrealized Gains | 28 | 3 |
Unrealized Losses | 0 | -3 |
Total assets | 20,795 | 17,991 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2,726 | 2,755 |
Unrealized Gains | 5 | 0 |
Unrealized Losses | 0 | -1 |
Total assets | 2,731 | 2,754 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 60,516 | 53,959 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Total assets | 60,516 | 53,959 |
Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 6,703 | 6,709 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | -1 | -1 |
Total assets | 6,702 | 6,708 |
Municipal debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 4,696 | 12,985 |
Unrealized Gains | 4 | 13 |
Unrealized Losses | 0 | -1 |
Total assets | $4,700 | $12,997 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | investment |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | $161,430 |
Less than 12 Months, Aggregate Losses | -68 |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 161,430 |
Aggregate Losses | 68 |
Number of Positions | 59 |
Commercial paper | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | 23,768 |
Less than 12 Months, Aggregate Losses | -11 |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 23,768 |
Aggregate Losses | 11 |
U.S. agency securities | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | 11,373 |
Less than 12 Months, Aggregate Losses | -3 |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 11,373 |
Aggregate Losses | 3 |
Corporate bonds | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | 122,288 |
Less than 12 Months, Aggregate Losses | -53 |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 122,288 |
Aggregate Losses | 53 |
Certificate of deposit | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | 4,001 |
Less than 12 Months, Aggregate Losses | -1 |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 4,001 |
Aggregate Losses | $1 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details 3) (USD $) | Jan. 31, 2015 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | $522,258 | |
2017 | 81,779 | |
Estimated Fair Value | 604,037 | 619,932 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | 63,296 | |
2017 | 28,860 | |
Estimated Fair Value | 92,156 | 94,057 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated Fair Value | 1,361 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | 99,472 | |
2017 | 0 | |
Estimated Fair Value | 99,472 | 132,452 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | 272,586 | |
2017 | 44,379 | |
Estimated Fair Value | 316,965 | 297,653 |
U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | 14,986 | |
2017 | 5,809 | |
Estimated Fair Value | 20,795 | 17,991 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | 0 | |
2017 | 2,731 | |
Estimated Fair Value | 2,731 | 2,754 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | 60,516 | |
2017 | 0 | |
Estimated Fair Value | 60,516 | 53,959 |
Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | 6,702 | |
2017 | 0 | |
Estimated Fair Value | 6,702 | 6,708 |
Municipal debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2016 | 4,700 | |
2017 | 0 | |
Estimated Fair Value | $4,700 | $12,997 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details 4) (USD $) | Jan. 31, 2015 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $604,037 | $619,932 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 60,516 | 53,959 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 543,521 | 565,973 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 63,296 | 29,062 |
Municipal debt securities | 28,860 | 64,995 |
Total assets | 92,156 | 94,057 |
U.S. agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | 0 | 0 |
U.S. agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 63,296 | 29,062 |
Municipal debt securities | 28,860 | 64,995 |
U.S. agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 1,361 | |
Municipal debt securities | 5,809 | |
Total assets | 1,361 | |
Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | |
Municipal debt securities | 0 | |
Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 1,361 | |
Municipal debt securities | 5,809 | |
Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | |
Municipal debt securities | 0 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 57,891 | 66,159 |
Total assets | 99,472 | 132,452 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 57,891 | 66,159 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 272,586 | 172,648 |
Municipal debt securities | 44,379 | 125,005 |
Total assets | 316,965 | 297,653 |
Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | 0 | 0 |
Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 272,586 | 172,648 |
Municipal debt securities | 44,379 | 125,005 |
Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | 0 | 0 |
U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 14,986 | 9,995 |
Municipal debt securities | 7,996 | |
Total assets | 20,795 | 17,991 |
U.S. government bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | 0 | |
U.S. government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 14,986 | 9,995 |
Municipal debt securities | 7,996 | |
U.S. government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | 0 | |
Municipal debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 4,700 | 12,997 |
Total assets | 4,700 | 12,997 |
Municipal debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 4,700 | 12,997 |
Municipal debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 6,702 | 4,009 |
Municipal debt securities | 2,699 | |
Total assets | 6,702 | 6,708 |
Certificate of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | 0 | |
Certificate of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 6,702 | 4,009 |
Municipal debt securities | 2,699 | |
Certificate of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Municipal debt securities | 0 | |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal debt securities | 2,731 | 2,754 |
Total assets | 2,731 | 2,754 |
Foreign government bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal debt securities | 0 | 0 |
Foreign government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal debt securities | 2,731 | 2,754 |
Foreign government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal debt securities | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 41,581 | 66,293 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 41,581 | 66,293 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 60,516 | 53,959 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 60,516 | 53,959 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | $0 | $0 |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details 1) (USD $) | Jan. 31, 2015 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Computer hardware | $12,577 | $11,882 |
Software | 4,666 | 4,605 |
Furniture and fixtures | 3,017 | 2,732 |
Leasehold improvements | 7,967 | 7,069 |
Total property and equipment | 28,227 | 26,288 |
Less accumulated depreciation | -15,855 | -13,681 |
Property, Plant and Equipment, Net | $12,372 | $12,607 |
Balance_Sheet_Components_Detai1
Balance Sheet Components (Details 2) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 |
Goodwill [Roll Forward] | |
Balance at beginning of period | $9,205 |
Changes in carrying value | 0 |
Balance at end of period | $9,205 |
Balance_Sheet_Components_Detai2
Balance Sheet Components (Details 3) (USD $) | Jan. 31, 2015 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $4,719 | |
Acquired Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 7,200 | 7,200 |
Accumulated amortization | -2,481 | -1,761 |
Intangible assets, net | $4,719 | $5,439 |
Balance_Sheet_Components_Detai3
Balance Sheet Components (Details 4) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Balance Sheet Related Disclosures [Abstract] | |
2015 (remainder of fiscal year) | $720 |
2016 | 1,440 |
2017 | 1,440 |
2018 | 1,119 |
Intangible assets, net | $4,719 |
Balance_Sheet_Components_Detai4
Balance Sheet Components (Details 5) (USD $) | Jan. 31, 2015 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Accrued bonuses | $8,077 | $19,213 |
Accrued commission | 1,811 | 3,593 |
Accrued vacation | 7,295 | 8,100 |
Accrued salaries, payroll taxes and benefits | 3,692 | 4,006 |
Total | $20,875 | $34,912 |
Balance_Sheet_Components_Detai5
Balance Sheet Components (Details 6) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | ($1,367) |
Other comprehensive gain (loss) before reclassification | -4,012 |
Amounts reclassified from accumulated other comprehensive loss to earnings | -7 |
Tax effect | -72 |
Balance at end of period | -5,458 |
Accumulated Translation Adjustment [Member] | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | -1,310 |
Other comprehensive gain (loss) before reclassification | -4,218 |
Amounts reclassified from accumulated other comprehensive loss to earnings | 0 |
Tax effect | 0 |
Balance at end of period | -5,528 |
Available-for-sale Securities [Member] | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | -57 |
Other comprehensive gain (loss) before reclassification | 206 |
Amounts reclassified from accumulated other comprehensive loss to earnings | -7 |
Tax effect | -72 |
Balance at end of period | $70 |
Balance_Sheet_Components_Detai6
Balance Sheet Components (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Jul. 31, 2014 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Property and equipment pledged as collateral | $0 | $0 | $0 | ||
Depreciation | 1,500,000 | 1,300,000 | 2,900,000 | 2,500,000 | |
Amortization expense | $360,000 | $360,000 | $720,000 | $720,000 |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | ||||
Numerator: | ||||||||
Net loss | $3,976 | [1] | $3,332 | [1] | $979 | [1] | ($3,123) | [1] |
Net income (loss) per share: | ||||||||
Basic | $0.06 | [1] | $0.05 | [1] | $0.01 | [1] | ($0.05) | |
Diluted | $0.06 | [1] | $0.05 | [1] | $0.01 | ($0.05) | ||
Weighted average shares used in computing net income (loss) per share: | ||||||||
Basic | 69,883,622 | 67,360,775 | 69,600,161 | 63,005,064 | ||||
Weighted average effect of dilutive stock options | 1,264,242 | 2,073,035 | 1,321,308 | 0 | ||||
Weighted average effect of dilutive restricted stock units | 908,997 | 1,470,445 | 993,503 | 0 | ||||
Diluted | 72,056,861 | 70,904,255 | 71,914,972 | 63,005,064 | ||||
[1] | See Note 2 “Change in Accounting Policy - Stock-Based Compensation†of Notes to Consolidated Financial Statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K. |
Net_Income_Loss_Per_Share_Deta1
Net Income (Loss) Per Share (Details 2) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |
Stock options to purchase common stock | ||||
Net Income (Loss) Per Share (Textual) [Abstract] | ||||
Schedule of antidilutive securities excluded from EPS | 302,569 | 226,542 | 296,894 | 3,433,537 |
Restricted stock units | ||||
Net Income (Loss) Per Share (Textual) [Abstract] | ||||
Schedule of antidilutive securities excluded from EPS | 2,250 | 141,626 | 28,611 | 4,561,515 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) | 3 Months Ended | 6 Months Ended | |||||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2015 | Aug. 01, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | PLN | Line of Credit Associated With Operating Lease | Line of Credit Associated With Operating Lease | |
sqft | sqft | USD ($) | USD ($) | ||||
Line of Credit Facility [Line Items] | |||||||
Duration of lease for a facility to serve as its corporate headquarters | 7 years | ||||||
Rentable area of current corporate headquarters | 97,674 | 97,674 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 | $800,000 | $1,200,000 | ||||
Lease expense for all worldwide facilities and equipment | 1,600,000 | 1,400,000 | 3,200,000 | 2,900,000 | |||
Line of Credit Facility, Current Borrowing Capacity | $2,700,000 | $2,700,000 |
Stockholders_Equity_and_Stockb2
Stockholders' Equity and Stock-based Compensation (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation expenses | $13,498 | $12,139 | $25,486 | [1] | $21,325 | [1] |
Unrecognized Expense | 110,461 | 110,461 | ||||
Cost of license | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation expenses | 55 | 51 | 104 | 96 | ||
Cost of maintenance revenues | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation expenses | 309 | 201 | 586 | 361 | ||
Cost of services revenues | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation expenses | 3,878 | 3,120 | 7,391 | 5,834 | ||
Research and development | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation expenses | 2,662 | 2,402 | 4,805 | 4,397 | ||
Sales and marketing | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation expenses | 3,442 | 3,790 | 6,429 | 5,849 | ||
General and administrative | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation expenses | 3,152 | 2,575 | 6,171 | 4,788 | ||
Restricted Stock Units (RSUs) | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Unrecognized Expense | 104,415 | 104,415 | ||||
Average Expected Recognition Period | 2 years 6 months | |||||
Stock Options | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Unrecognized Expense | $6,046 | $6,046 | ||||
Average Expected Recognition Period | 2 years 2 months 13 days | |||||
[1] | See Note 2 “Change in Accounting Policy - Stock-Based Compensation†of Notes to Consolidated Financial Statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K. |
Stockholders_Equity_and_Stockb3
Stockholders' Equity and Stock-based Compensation (Details 2) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2015 | ||
Number of Stock Options Outstanding | |||||
Balance at beginning of period | 2,400,253 | ||||
Granted | 103,643 | ||||
Exercised | -408,471 | ||||
Canceled | -40,803 | ||||
Balance at end of period | 2,054,622 | 2,400,253 | |||
Vested and expected to vest as of January 31, 2015 | 2,033,105 | ||||
Exercisable as of January 31, 2015 | 1,702,642 | ||||
Weighted Average Exercise Price | |||||
Balance at beginning of period | $11.24 | ||||
Granted | $45.27 | ||||
Exercised | $9.45 | ||||
Canceled | $24.18 | ||||
Balance at end of period | $13.05 | $11.24 | |||
Vested and expected to vest as of January 31, 2015 | $12.74 | ||||
Exercisable as of January 31, 2015 | $7.27 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Weighted Average Remaining Contractual Life | 5 years 2 months 13 days | 5 years 6 months | |||
Vested and expected to vest as of January 31, 2015 | 5 years 1 month 6 days | ||||
Exercisable as of January 31, 2015 | 5 years 2 months 13 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Aggregate Intrinsic Value [Abstract] | |||||
Balance at beginning of period | $71,640 | [1] | |||
Balance at end of period | 76,128 | [1] | 71,640 | [1] | |
Vested and expected to vest as of January 31, 2015 | 75,968 | [1] | |||
Exercisable as of January 31, 2015 | $72,925 | [1] | |||
Share Price | $50.10 | $40.50 | |||
Restricted Stock Units (RSUs) | |||||
Number of RSUs Outstanding | |||||
Balance at beginning of period | 3,384,221 | ||||
Granted | 1,208,223 | ||||
Released | -1,053,907 | ||||
Canceled | -204,006 | ||||
Balance at end of period | 3,334,531 | ||||
Weighted Average Grant Date Fair Value | |||||
Balance at beginning of period | $30.70 | ||||
Granted | $45.78 | ||||
Released | $23.27 | ||||
Canceled | $34.28 | ||||
Balance at end of period | $38.29 | ||||
[1] | Aggregate intrinsic value represents the difference between the Company's closing stock prices of $50.10 and $40.50 on January 31, 2015 and July 31, 2014, respectively, and the exercise price of outstanding, in-the-money options. |
Stockholders_Equity_and_Stockb4
Stockholders' Equity and Stock-based Compensation (Details 3) | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |
Summary of assumptions for fair value of employee stock option estimates | |||
Risk-free interest rate, minimum | 1.50% | 1.92% | 1.50% |
Risk-free interest rate, maximum | 1.90% | 1.92% | 2.00% |
Expected volatility, minimum | 41.30% | 45.10% | 41.30% |
Expected volatility, maximum | 45.80% | 45.10% | 46.20% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Summary of assumptions for fair value of employee stock option estimates | |||
Expected life (in years) | 5 years | 6 years 0 months | 5 years |
Maximum | |||
Summary of assumptions for fair value of employee stock option estimates | |||
Expected life (in years) | 6 years 1 month 6 days | 6 years 0 months | 6 years 1 month 6 days |
Stockholders_Equity_and_Stockb5
Stockholders' Equity and Stock-based Compensation (Details 4) | Jan. 31, 2015 | Jul. 31, 2014 |
Common Stock Reserved for Issuance | ||
Exercise of stock options to purchase common stock | 2,054,622 | 2,400,253 |
Issuances of shares available under stock plans | 14,523,410 | 11,703,962 |
Total common stock reserved for issuance | 19,912,563 | 17,488,436 |
Restricted Stock Units (RSUs) | ||
Common Stock Reserved for Issuance | ||
Vesting of restricted stock units | 3,334,531 | 3,384,221 |
Stockholders_Equity_and_Stockb6
Stockholders' Equity and Stock-based Compensation (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Jul. 31, 2014 |
Class of Stock [Line Items] | |||||
Total intrinsic value of options exercised | $9.30 | $28.50 | $16 | $48.90 | |
Grant date fair value (USD per share), Options | $19.52 | $20.53 | $21.26 | ||
Stockholders Equity and Stock Based Compensation (Additional Textual) [Abstract] | |||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||
Common stock, par value | $0.00 | $0.00 | $0.00 | ||
Common Stock, Shares, Outstanding | 70,161,817 | 70,161,817 | 69,082,261 | ||
Restricted Stock Units (RSUs) | |||||
Class of Stock [Line Items] | |||||
Grant date fair value (USD per share) | $45.78 | ||||
Fair Value of RSU's released | $25.40 | $23.10 | $49.20 | $43.60 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | ||||||||
Benefit from income taxes | ($1,007,000) | [1] | $1,437,000 | [1] | ($1,619,000) | [1] | ($4,462,000) | [1] |
Tax benefit for federal R&D | 1,200,000 | 1,200,000 | ||||||
Effective Income Tax Rate, Continuing Operations | -33.90% | 253.00% | ||||||
Percentage of Statutory federal income tax rate | 35.00% | |||||||
Undistributed Earnings of Foreign Subsidiaries | 22,300,000 | 22,300,000 | ||||||
Undistributed earnings from certain foreign subsidiaries | 2,900,000 | 2,900,000 | ||||||
Unrecognized Tax Benefits, Period Increase (Decrease) | 1,300,000 | |||||||
Unrecognized tax benefits | $5,100,000 | $5,100,000 | ||||||
[1] | See Note 2 “Change in Accounting Policy - Stock-Based Compensation†of Notes to Consolidated Financial Statements for the fiscal year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K. |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
country | country | |||
Revenues : | ||||
Total revenues | $89,446 | $83,475 | $169,180 | $150,004 |
Entity-wide revenue attributable to other country | 0 | 0 | ||
EntityWideRevenueMajorCountryPercentage | 10.00% | 10.00% | ||
United States | ||||
Revenues : | ||||
Total revenues | 43,928 | 40,707 | 82,876 | 77,933 |
Canada | ||||
Revenues : | ||||
Total revenues | 10,830 | 11,731 | 19,217 | 20,955 |
United Kingdom | ||||
Revenues : | ||||
Total revenues | 11,815 | 14,799 | 24,013 | 20,654 |
Other EMEA | ||||
Revenues : | ||||
Total revenues | 8,838 | 8,034 | 20,627 | 16,025 |
Other | ||||
Revenues : | ||||
Total revenues | 2,755 | 3,420 | 4,613 | 5,239 |
Americas | ||||
Revenues : | ||||
Total revenues | 57,513 | 55,858 | 106,706 | 104,127 |
EMEA | ||||
Revenues : | ||||
Total revenues | 20,653 | 22,833 | 44,640 | 36,679 |
APAC | ||||
Revenues : | ||||
Total revenues | $11,280 | $4,784 | $17,834 | $9,198 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | Jan. 31, 2015 | Jul. 31, 2014 |
In Thousands, unless otherwise specified | ||
Long-lived asset, including intangibles and goodwill | ||
Total | $26,296 | $27,251 |
Americas | ||
Long-lived asset, including intangibles and goodwill | ||
Total | 23,540 | 25,573 |
EMEA | ||
Long-lived asset, including intangibles and goodwill | ||
Total | 2,208 | 950 |
APAC | ||
Long-lived asset, including intangibles and goodwill | ||
Total | $548 | $728 |