Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 30, 2014 | Dec. 31, 2014 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Nov-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | EOPN | |
Entity Registrant Name | E2OPEN INC | |
Entity Central Index Key | 1540400 | |
Current Fiscal Year End Date | -26 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,317,807 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Nov. 30, 2014 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $18,900 | $42,723 |
Short-term investments | 5,271 | 14,374 |
Accounts receivable, net of allowance of $80 and $78 | 18,134 | 21,995 |
Prepaid expenses and other current assets | 4,655 | 4,380 |
Total current assets | 46,960 | 83,472 |
Long-term investments | 900 | 8,541 |
Goodwill | 35,992 | 22,556 |
Intangible assets, net | 23,436 | 11,395 |
Property and equipment, net | 3,441 | 3,431 |
Other assets | 1,245 | 1,316 |
Total assets | 111,974 | 130,711 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 12,263 | 12,366 |
Deferred revenue | 33,705 | 43,672 |
Acquisition-related obligations | 9,960 | 5,473 |
Current portion of notes payable and capital lease obligations | 3,915 | 2,995 |
Total current liabilities | 59,843 | 64,506 |
Deferred revenue | 2,472 | 1,587 |
Notes payable and capital lease obligations, net of current portion | 2,557 | 2,599 |
Other noncurrent liabilities | 1,907 | 2,195 |
Total liabilities | 66,779 | 70,887 |
Commitments and contingencies (note 10) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value. 10,000 authorized shares, no shares issued and outstanding | ||
Common stock, $0.001 par value. 100,000 authorized shares, 29,314 and 28,825 shares issued and outstanding as of November 30, 2014 and February 28, 2014 | 29 | 29 |
Additional paid-in capital | 437,154 | 426,031 |
Accumulated other comprehensive income | 13 | 31 |
Accumulated deficit | -392,001 | -366,267 |
Total stockholders' equity | 45,195 | 59,824 |
Total liabilities and stockholders' equity | $111,974 | $130,711 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowance | $80 | $78 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized shares | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized shares | 100,000 | 100,000 |
Common stock, shares issued | 29,314 | 28,825 |
Common stock, shares outstanding | 29,314 | 28,825 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Revenue | ||||
Total revenue | $20,150 | $18,260 | $59,162 | $51,871 |
Cost of revenue | ||||
Amortization of acquired intangible assets | 735 | 408 | 1,807 | 466 |
Total cost of revenue | 8,130 | 7,486 | 23,695 | 21,260 |
Gross profit (loss) | ||||
Total gross profit | 12,020 | 10,774 | 35,467 | 30,611 |
Operating expenses: | ||||
Research and development | 5,451 | 5,099 | 16,110 | 13,705 |
Sales and marketing | 11,204 | 9,683 | 32,109 | 26,334 |
General and administrative | 3,061 | 2,413 | 9,665 | 7,502 |
Acquisition-related expenses | 44 | 340 | 960 | 1,131 |
Amortization of acquired intangible assets | 685 | 369 | 1,651 | 394 |
Total operating expenses | 20,445 | 17,904 | 60,495 | 49,066 |
Loss from operations | -8,425 | -7,130 | -25,028 | -18,455 |
Interest and other expense, net | -576 | -461 | -564 | -379 |
Loss before income taxes | -9,001 | -7,591 | -25,592 | -18,834 |
Benefit from (provision for) income taxes | -65 | 209 | -142 | 135 |
Net loss | -9,066 | -7,382 | -25,734 | -18,699 |
Net loss per share: | ||||
Basic and diluted | ($0.31) | ($0.28) | ($0.89) | ($0.72) |
Weighted average shares used to compute net loss per share: | ||||
Basic and diluted | 29,253 | 26,545 | 29,065 | 26,061 |
Subscriptions and support | ||||
Revenue | ||||
Revenue | 16,650 | 14,400 | 49,689 | 40,125 |
Cost of revenue | ||||
Cost of revenue | 3,383 | 2,769 | 9,893 | 7,942 |
Gross profit (loss) | ||||
Total gross profit | 12,532 | 11,223 | 37,989 | 31,717 |
Professional services and other | ||||
Revenue | ||||
Revenue | 3,500 | 3,860 | 9,473 | 11,746 |
Cost of revenue | ||||
Cost of revenue | 4,012 | 4,309 | 11,995 | 12,852 |
Gross profit (loss) | ||||
Total gross profit | ($512) | ($449) | ($2,522) | ($1,106) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Net loss | ($9,066) | ($7,382) | ($25,734) | ($18,699) |
Other comprehensive income (loss), net: | ||||
Net change in unrealized gains (losses) on investments | -11 | 19 | -1 | |
Net foreign currency translation gains (losses) | -28 | 71 | -18 | 65 |
Total other comprehensive income (loss), net | -39 | 90 | -18 | 64 |
Comprehensive loss | ($9,105) | ($7,292) | ($25,752) | ($18,635) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 |
Cash flows from operating activities: | ||
Net loss | ($25,734) | ($18,699) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 7,128 | 4,009 |
Depreciation and amortization | 5,329 | 2,312 |
Other | 846 | -80 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 4,708 | 454 |
Prepaid expenses and other current assets | 1,362 | -608 |
Accounts payable and accrued liabilities | 1,106 | 3,100 |
Deferred revenue | -12,539 | -6,370 |
Other noncurrent liabilities | -578 | 476 |
Net cash used in operating activities | -18,372 | -15,406 |
Cash flows from investing activities: | ||
Capital expenditures | -391 | -165 |
Purchase of marketable securities | -15,807 | -10,465 |
Proceeds from sale and maturities of marketable securities | 32,225 | 37,242 |
Payment for acquisition of businesses, net of cash acquired | -16,320 | -11,489 |
Cash placed in escrow in connection with acquisition of business | -1,424 | 0 |
Other assets | 1 | 67 |
Net cash provided by (used in) investing activities | -1,716 | 15,190 |
Cash flows from financing activities: | ||
Proceeds from bank credit facilities | 4,171 | 2,518 |
Repayments of bank credit facilities | -4,171 | -3,346 |
Repayments of notes payable and capital lease obligations | -3,055 | -1,533 |
Repayment of debt assumed from acquired company | -143 | -7,126 |
Payments of stock offering costs | -533 | 0 |
Proceeds from exercise of common share options | 559 | 1,821 |
Other | -503 | -17 |
Net cash used in financing activities | -3,675 | -7,683 |
Effect of exchange rate changes on cash and cash equivalents | -60 | 18 |
Net decrease in cash and cash equivalents | -23,823 | -7,881 |
Cash and cash equivalents at beginning of period | 42,723 | 20,262 |
Cash and cash equivalents at end of period | 18,900 | 12,381 |
Supplemental cash flow information: | ||
Interest | 269 | 143 |
Income taxes | 222 | 121 |
Non-cash financing and investing activities: | ||
Property, software and equipment acquired under notes payable and capital leases | 1,242 | 2,072 |
Prepaid software, maintenance and services under notes payable and capital leases | 1,939 | 2,919 |
Issuance of common stock in connection with business acquisitions | $3,966 | $8,849 |
Organization_and_Business_Desc
Organization and Business Description | 9 Months Ended |
Nov. 30, 2014 | |
Organization and Business Description | (1) Organization and Business Description |
E2open, Inc. and subsidiaries (the “Company”), a Delaware corporation, was incorporated in September 2003. The Company provides cloud-based, on-demand software solutions delivered on an integrated platform that enables companies to collaborate with their trading partners to procure, manufacture, sell and distribute products more efficiently. The Company’s customers depend on outsourced manufacturing strategies and complex trading networks to compete in today’s global economy. They use the Company’s solutions to gain visibility into and control over their trading networks. The Company’s solutions enable its customers and their trading partners to overcome problems arising from communications across disparate systems by offering a reliable source of data, processes and analytics, which its customers rely on as the single version of the truth. The Company’s solutions empower its customers to manage demand they cannot predict and supply they do not control. | |
The Company acquired Serus Corporation (“Serus”) on June 4, 2014 (see note 3 to the condensed consolidated financial statements). | |
The Company’s corporate headquarters are located in Foster City, California, with additional offices in San Jose, California, Austin and Dallas, Texas, China, Finland, France, Germany, India, Malaysia, Taiwan and the United Kingdom. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 30, 2014 | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies |
Basis of Presentation | |
The accompanying condensed consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and notes normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). | |
Unaudited Interim Financial Information | |
These unaudited interim financial statements have been prepared in accordance with GAAP. In management’s opinion, the unaudited interim financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position and operating results for the periods presented. The results for the three and nine months ended November 30, 2014 are not necessarily indicative of the results expected for the full fiscal year or any other period. | |
Accounting Policies | |
The accompanying unaudited interim condensed consolidated financial statements and accompanying related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2014. | |
Accounting Updates | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective retrospectively for annual or interim reporting periods beginning after December 15, 2016, with early application not permitted. The Company is currently assessing the impact the adoption of this update will have on its consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-12-Compensation-Stock Compensation, which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The amendments may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented. The Company assessed that the adoption of this update will not have a material impact on its consolidated financial statements. | |
Use of Estimates | |
The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. Such estimates include the allowance for doubtful accounts receivable, revenue allocations, deferred tax asset valuation allowance, unrecognized tax benefits, fair value of acquired tangible and intangible assets, useful lives of tangible and intangible assets, potential impairment of goodwill or other long-lived assets, accrued liabilities, loss contingencies and stock-based compensation amortization periods and forfeiture rates. Actual results could differ from those estimates. | |
Revenue Recognition | |
The Company generates revenue primarily from the sale of subscriptions and support and professional services. | |
Subscriptions and Support. The Company offers on-demand software solutions, which enable its customers to have constant access to its solutions without the need to manage and support the software and associated hardware themselves. The Company houses the hardware and software in third-party facilities, and provides its customers with access to the software solutions, along with data security and storage, backup and recovery services and solution support. The Company’s customer contracts typically have terms of three to five years. The Company invoices its customers for subscriptions and support in advance for annual use of the software solutions. The Company’s payment terms typically require customers to pay within 30 to 90 days from the invoice date. | |
Professional Services. Professional services revenue is derived primarily from fees for enabling services, including solution consulting and solution deployment. These services are sold in conjunction with the sale of the Company’s on-demand software solutions. The Company provides professional services, both on a fixed fee and a time and materials basis, and invoices customers either in advance, monthly, or upon reaching project milestones. | |
The Company enters into arrangements with multiple elements, comprising subscriptions and support and professional services. Arrangements with customers typically do not provide the customer with the right to take possession of the software supporting the on-demand solutions. The Company commences revenue recognition when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the Company’s price to the customer is fixed or determinable, and collectability of the fees is reasonably assured. | |
The Company evaluates each of these criteria as follows: | |
Evidence of an Arrangement. The Company considers a binding agreement signed by it and the customer to be evidence of an arrangement. | |
Delivery. The Company typically considers delivery to have occurred when the on-demand software solutions are made available to the customer or services have been rendered. In arrangements where an existing customer purchases additional solutions, delivery occurs upon commencement of the contractual term. | |
Fixed or Determinable Fee. The Company considers the fee to be fixed or determinable unless the fee is subject to refund or adjustment or is not payable within its standard payment terms. If the fee is not fixed or determinable, the Company recognizes the revenue as amounts become due and payable. | |
Collectability of the Fees is Reasonably Assured. Collectability of the fees is reasonably assured if the Company expects that the customer will be able to pay amounts under the arrangement as payments become due. If the Company determines that collection is not reasonably assured, the Company defers the recognition of revenue until cash collection. | |
The Company accounts for subscriptions and support and professional services revenue as separate units of accounting and allocates revenue to each deliverable in an arrangement based on a selling price hierarchy. As the Company has been unable to establish vendor specific objective evidence (“VSOE”) or third party evidence (“TPE”) for the elements of its arrangements, the Company determines the best estimated selling price (“BESP”) for each element primarily by considering prices the Company charges for similar offerings, size of the order and historical pricing practices. Revenue allocated to subscriptions and support is recognized over the contractual term. Professional services revenue sold on a fixed fee basis is recognized either under the proportional performance method of accounting using estimated labor hours, or upon acceptance of the services. Revenue from professional services sold on a time and material basis is recognized as services are delivered. | |
Impairment of Long-Lived Assets | |
The Company evaluates the recoverability of its long-lived assets, which consist principally of property and equipment and acquired intangible assets with finite lives, whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability of an asset is measured by comparing the carrying amount to the expected future undiscounted cash flows that the asset is expected to generate. If that review indicates that the carrying amount of the long-lived asset is not recoverable, an impairment charge is recorded for the amount by which the carrying amount of the asset exceeds its fair value. The Company did not record any long-lived asset impairment charges during the nine months ended November 30, 2014 and 2013. |
Acquisition
Acquisition | 9 Months Ended | ||||||||
Nov. 30, 2014 | |||||||||
Acquisition | (3) Acquisition | ||||||||
On June 4, 2014, the Company acquired all of the outstanding shares of Serus, a Company headquartered in Santa Clara, California and a leading provider of cloud-based manufacturing and supply chain visibility and intelligence solutions to semiconductor and other high tech companies, for approximately $24.8 million. The total initial purchase consideration comprised the following (in thousands): | |||||||||
Cash payment | $ | 12,405 | |||||||
238,194 shares of the Company’s common stock | 3,966 | ||||||||
Cash holdback | 1,850 | ||||||||
Fair value of earn-out liability | 6,600 | ||||||||
Total | $ | 24,821 | |||||||
The Company held back $1.9 million of the purchase price consideration, which constitutes partial security for indemnification obligations. This amount was recorded as “acquisition-related obligations to sellers” in the balance sheet, and is payable twelve months after the closing date, subject to agreement between the Company and the former shareholders of Serus. | |||||||||
Additionally, the former shareholders of Serus have rights to receive contingent cash consideration (“earn-out liability”) of up to $7.5 million, based upon the achievement of certain revenue-related financial performance milestones over a period of 12 months. The Company has recorded the estimated fair value of this earn-out liability based on probability weighted-payout discounted using a discount rate of 10% as of the acquisition date of $6.6 million under “acquisition-related obligations to sellers” in the balance sheet. Subsequent to the date of acquisition, the estimated fair value of the earn-out liability increased to $6.8 million as of November 30, 2014 primarily as a result of the passage of time and the corresponding impact of discounting. The change in fair value of the earn-out liability is recorded under acquisition-related expenses as a part of operating expenses in our condensed consolidated statements of operations. This preliminary amount of the earn-out liability may, however, differ from the amount that is ultimately settled. | |||||||||
Transaction costs of $1.0 million associated with the acquisition of Serus were expensed as incurred and presented as acquisition-related expenses as a part of operating expenses in our condensed consolidated statements of operations for the nine months ended November 30, 2014. | |||||||||
Allocation of Consideration | |||||||||
The identifiable assets acquired and liabilities assumed were recognized and measured as of the acquisition date based on their estimated fair values. The excess of the fair value of consideration transferred over estimated fair value of the net tangible assets and intangible assets was recorded as goodwill. | |||||||||
The Company is accounting for the Serus acquisition under the purchase method of accounting as a business combination. The following table summarizes the preliminary estimates of fair values of the assets and liabilities assumed at the acquisition date based on the preliminary purchase price allocation. The Company is in the process of validating and refining the assumptions and estimates required in establishing the fair values of the identifiable assets and liabilities, including identifiable intangible assets. The final purchase price allocation may differ from the preliminary amounts disclosed below (in thousands): | |||||||||
Cash and cash equivalents | $ | 82 | |||||||
Accounts receivable | 846 | ||||||||
Prepaid expenses and other current assets | 136 | ||||||||
Property and equipment | 172 | ||||||||
Identifiable intangible assets | 15,500 | ||||||||
Other assets | 66 | ||||||||
Total identifiable assets acquired | 16,802 | ||||||||
Accounts payable and accrued liabilities | (1,646 | ) | |||||||
Deferred revenue | (3,457 | ) | |||||||
Capital lease obligations and notes payable | (64 | ) | |||||||
Other noncurrent liabilities | (22 | ) | |||||||
Total liabilities assumed | (5,189 | ) | |||||||
Net identifiable assets acquired | 11,613 | ||||||||
Goodwill | 13,208 | ||||||||
Total consideration | $ | 24,821 | |||||||
The key factor attributable to the creation of goodwill by the transaction is that, by combining Serus’ robust technology with the E2open Business Network, the Company extends its dominance in the high tech supply chain with the addition of technology for design for manufacturing, contracts and compliance, as well as early stage visibility in the semiconductor and technology-driven discrete manufacturing industries. | |||||||||
As of the date of acquisition, the identifiable intangible assets comprised developed technology of approximately $7.7 million and a customer relationship intangible of approximately $7.8 million. The Company is amortizing the intangible assets over the expected useful life of 5 years. The amortization for the post-acquisition period from June 4, 2014 to November 30, 2014 was $1.5 million. | |||||||||
Revenue earned by Serus was $2.3 million for the period from the acquisition date of June 4, 2014 to November 30, 2014 and was included in our condensed consolidated statements of operations. Immediately following the acquisition, Serus’ operations in the United States were merged into the Company’s operations, as such, the standalone Serus net income (loss) post-acquisition is not readily determinable. The unaudited pro forma revenue and net loss for the nine months ended November 30, 2014 presented below combine the consolidated results of the Company and Serus giving effect to the acquisition of Serus as if it had been completed on March 1, 2013, the beginning of the annual reporting period prior to the year of acquisition. This unaudited pro forma financial information is presented for informational purposes only and is not indicative of future operations or results had the acquisition been completed as of March 1, 2013. The unaudited pro forma financial results presented below do not include any anticipated synergies or other expected benefits of the acquisition and include certain adjustments for additional depreciation and amortization expense based upon the fair value step-up and estimated useful lives of Serus’ amortizable assets acquired in the transaction, adjustments to net interest expense based upon settlement of debt assumed upon acquisition, and adjustments to net income to reflect the decrease of interest income arising from the reduction of investments in available-for-sale securities. The provision for income taxes from continuing operations has also been adjusted for all periods, based upon the foregoing adjustments to historical results. | |||||||||
Nine Months Ended | |||||||||
November 30, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share data) | |||||||||
Pro forma revenue | $ | 60,957 | $ | 54,951 | |||||
Pro forma net loss | (24,325 | ) | (24,669 | ) | |||||
Pro forma net income (loss) per share: | |||||||||
Basic and diluted | (0.92 | ) | (0.94 | ) |
Cash_and_Investments
Cash and Investments | 9 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Cash and Investments | (4) Cash and Investments | ||||||||||||||||
The following table presents cash, cash equivalents and investments for the periods presented (in thousands): | |||||||||||||||||
Amortized Cost | Gross | Gross | Estimated Fair | ||||||||||||||
Unrealized | Unrealized | Market Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
As of November 30, 2014: | |||||||||||||||||
Cash | $ | 5,428 | $ | — | $ | — | $ | 5,428 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market accounts | 7,564 | — | — | 7,564 | |||||||||||||
Money market funds | 5,908 | — | — | 5,908 | |||||||||||||
Commercial paper | — | — | — | — | |||||||||||||
Short-term investments: | |||||||||||||||||
Commercial paper | 650 | — | — | 650 | |||||||||||||
Corporate debt securities | 4,118 | 3 | (1 | ) | 4,120 | ||||||||||||
Agency bonds | — | — | — | — | |||||||||||||
Certificate of deposit | 501 | — | — | 501 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate debt securities | 672 | — | — | 672 | |||||||||||||
Asset-backed securities | 198 | — | — | 198 | |||||||||||||
U.S. government securities | — | — | — | — | |||||||||||||
Common trust funds | 15 | — | — | 15 | |||||||||||||
Insurance company contracts | 15 | — | — | 15 | |||||||||||||
Total cash, cash equivalents, and investments | $ | 25,069 | $ | 3 | $ | (1 | ) | $ | 25,071 | ||||||||
Amortized Cost | Gross | Gross | Estimated Fair | ||||||||||||||
Unrealized | Unrealized | Market Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
As of February 28, 2014: | |||||||||||||||||
Cash | $ | 3,300 | $ | — | $ | — | $ | 3,300 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market accounts | 11,905 | — | — | 11,905 | |||||||||||||
Money market funds | 19,221 | — | — | 19,221 | |||||||||||||
Commercial paper | 8,296 | 1 | — | 8,297 | |||||||||||||
Short-term investments: | |||||||||||||||||
Commercial paper | 10,492 | — | (1 | ) | 10,491 | ||||||||||||
Corporate debt securities | 2,378 | 1 | (1 | ) | 2,378 | ||||||||||||
Agency bonds | 1,504 | 1 | — | 1,505 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate debt securities | 3,154 | 3 | (6 | ) | 3,151 | ||||||||||||
Asset-backed securities | 250 | — | — | 250 | |||||||||||||
U.S. government securities | 5,005 | 3 | — | 5,008 | |||||||||||||
Common trust funds | 120 | — | (4 | ) | 116 | ||||||||||||
Insurance company contracts | 16 | — | — | 16 | |||||||||||||
Total cash, cash equivalents, and investments | $ | 65,641 | $ | 9 | $ | (12 | ) | $ | 65,638 | ||||||||
The available-for-sale securities that the Company intends to hold for less than one year are classified as short-term investments, and the securities that the Company intends to hold for more than one year are classified as long-term investments. The following table presents available-for-sale securities, recorded in cash equivalents and investments, by contractual maturity date as of November 30, 2014 (in thousands): | |||||||||||||||||
Amortized | Estimated | ||||||||||||||||
Cost | Fair Market | ||||||||||||||||
Value | |||||||||||||||||
Matures in one year or less | $ | 5,269 | $ | 5,271 | |||||||||||||
Matures after one year through two years | 901 | 900 | |||||||||||||||
Total | $ | 6,170 | $ | 6,171 | |||||||||||||
For the three and nine months ended November 30, 2014, the realized gains and losses, and unrealized losses on these available-for-sale securities were not material. Additionally, none of these securities were in a continuous unrealized loss position for more than 12 months. As of November 30, 2014, the Company did not consider any of its available-for-sale securities to be other-than-temporarily impaired. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||
Nov. 30, 2014 | |||||||||
Goodwill and Intangible Assets | (5) Goodwill and Intangible Assets | ||||||||
Goodwill and intangible assets are as follows (in thousands): | |||||||||
November 30, | February 28, | ||||||||
2014 | 2014 | ||||||||
Goodwill | |||||||||
ICON | $ | 22,784 | $ | 22,556 | |||||
Serus (see note 3) | 13,208 | — | |||||||
$ | 35,992 | $ | 22,556 | ||||||
Intangible assets | |||||||||
Acquired technology | $ | 14,700 | $ | 7,000 | |||||
Less: accumulated amortization | (2,624 | ) | (817 | ) | |||||
Net acquired technology | 12,076 | 6,183 | |||||||
Customer relationships | 13,700 | 5,900 | |||||||
Less: accumulated amortization | (2,340 | ) | (688 | ) | |||||
Net customer relationships | 11,360 | 5,212 | |||||||
Net intangible assets | $ | 23,436 | $ | 11,395 | |||||
The changes in the carrying amount of goodwill for the nine months ended November 30, 2014 are as follows (in thousands): | |||||||||
As of February 28, 2014 | $ | 22,556 | |||||||
Acquisition of Serus | 13,208 | ||||||||
Adjustments to ICON goodwill | 228 | ||||||||
As of November 30, 2014 | $ | 35,992 | |||||||
During the nine months ended November 30, 2014, the Company recorded intangible assets comprising developed technology of approximately $7.7 million and customer relationship intangible of approximately $7.8 million from the acquisition of Serus. The Company is amortizing these intangible assets over the expected useful life of 5 years. The amortization expense of these intangible assets for the nine months ended November 30, 2014 was $1.5 million. | |||||||||
Total amortization expense of intangible assets for the three months ended November 30, 2014 was $1.4 million, of which, $0.7 million was recorded in cost of revenues, and $0.7 million in operating expenses. Total amortization expense of intangible assets for the nine months ended November 30, 2014 was $3.5 million, of which, $1.8 million was recorded in cost of revenues, and $1.7 million in operating expenses. | |||||||||
The expected future annual amortization expense related to the acquired intangible assets existing as of November 30, 2014, is as follows (in thousands): | |||||||||
Fiscal year ending: | |||||||||
2015 (remaining three months) | $ | 1,420 | |||||||
2016 | 5,680 | ||||||||
2017 | 5,680 | ||||||||
2018 | 5,680 | ||||||||
2019 onwards | 4,976 | ||||||||
Total | $ | 23,436 |
Consolidated_Balance_Sheet_Com
Consolidated Balance Sheet Components | 9 Months Ended | ||||||||
Nov. 30, 2014 | |||||||||
Consolidated Balance Sheet Components | (6) Consolidated Balance Sheet Components | ||||||||
Consolidated balance sheet components as of the dates presented comprised the following: | |||||||||
November 30, | February 28, | ||||||||
2014 | 2014 | ||||||||
Prepaid expenses and other current assets (in thousands): | |||||||||
Prepaid software license fees, hardware and software maintenance | $ | 1,503 | $ | 1,215 | |||||
Restricted cash held in escrow (see note 10) | 1,424 | — | |||||||
Other prepaid expenses and other current assets | 1,728 | 3,165 | |||||||
$ | 4,655 | $ | 4,380 | ||||||
The total cost of software licenses, maintenance, and insurance premiums financed under capital leases and notes payable included above was $4.7 million and $5.1 million as of November 30, 2014 and February 28, 2014. Accumulated amortization of software licenses under capital leases and notes payable was $1.3 million and $1.2 million as of November 30, 2014 and February 28, 2014. Amortization of software licenses held under capital leases and notes payable is included in cost of revenue and operating expenses. Prepaid maintenance and services are expensed over the term of the agreements. | |||||||||
November 30, | February 28, | ||||||||
2014 | 2014 | ||||||||
Property and equipment, net (in thousands): | |||||||||
Computer equipment | $ | 10,687 | $ | 9,569 | |||||
Software | 9,635 | 9,461 | |||||||
Furniture and fixtures | 419 | 214 | |||||||
Leasehold improvements | 546 | 511 | |||||||
21,287 | 19,755 | ||||||||
Less: accumulated depreciation and amortization | (17,846 | ) | (16,324 | ) | |||||
$ | 3,441 | $ | 3,431 | ||||||
Property and equipment financed through capital leases and notes payable included above aggregated $4.4 million and $3.4 million as of November 30, 2014 and February 28, 2014. Accumulated depreciation and amortization on these assets aggregated $2.0 million and $1.0 million as of November 30, 2014 and February 28, 2014. | |||||||||
November 30, | February 28, | ||||||||
2014 | 2014 | ||||||||
Accounts payable and accrued liabilities (in thousands): | |||||||||
Accrued compensation costs | $ | 7,185 | $ | 7,494 | |||||
Trade accounts payable | 3,502 | 3,242 | |||||||
Accrued taxes and other | 1,576 | 1,630 | |||||||
$ | 12,263 | $ | 12,366 | ||||||
Notes_Payable_and_Capital_Leas
Notes Payable and Capital Lease Obligations | 9 Months Ended | ||||
Nov. 30, 2014 | |||||
Notes Payable and Capital Lease Obligations | (7) Notes Payable and Capital Lease Obligations | ||||
The Company finances the purchase of certain equipment, software and related support and maintenance with notes payable and capital leases. The terms of the notes payable and capital leases range from nine months to three years and bear interest at rates ranging from 0.00% to 13.13% per annum. Total minimum payments due under notes payable and capital lease obligations as of November 30, 2014 are as follows (in thousands): | |||||
Total minimum payments due under capital lease obligations as of November 30, 2014 are as follows (in thousands): | |||||
Fiscal year ending: | |||||
2015 (remaining 3 months) | $ | 533 | |||
2016 | 1,720 | ||||
2017 | 499 | ||||
2018 | 122 | ||||
Total minimum payments | 2,874 | ||||
Less: portion representing interest | (181 | ) | |||
Total principal portion of minimum payments | 2,693 | ||||
Less: current portion | (1,715 | ) | |||
Total principal portion of minimum payments, net of current portion | $ | 978 | |||
Total amounts due under notes payable as of November 30, 2014 are as follows (in thousands): | |||||
Fiscal year ending: | |||||
2015 (remaining 3 months) | $ | 617 | |||
2016 | 2,055 | ||||
2017 | 959 | ||||
2018 | 148 | ||||
Total | 3,779 | ||||
Less: current portion | (2,200 | ) | |||
Total notes payable, net of current portion | $ | 1,579 | |||
Bank_Credit_Facilities
Bank Credit Facilities | 9 Months Ended |
Nov. 30, 2014 | |
Bank Credit Facilities | (8) Bank Credit Facilities |
On October 7, 2013, the Company entered into a business financing agreement for a revolving loan facility with a borrowing capacity of up to $20.0 million. Funds available are subject to a borrowing formula which is secured by the Company’s accounts receivable and contracted backlog. As of November 30, 2014, the available borrowing capacity amount is $15.6 million. This agreement is effective for a period of two years through October 2015. The revolving loan facility bears interest at a per annum rate ranging from the Wall Street Journal prime rate minus 0.25% to the Wall Street Journal prime rate plus 0.25%, with a floor for the prime rate of 3.25%. The revolving loan facility is a general obligation of the Company secured by the Company’s tangible and intangible assets, as well as a negative pledge whereby the Company agrees not to give any creditor a security interest on the Company’s intellectual property. There were no borrowings as of and for the nine months ended November 30, 2014. | |
A wholly-owned subsidiary in Germany maintains a bank overdraft facility with a local bank used primarily to fund working capital. For the nine months ended November 30, 2014, the Company borrowed and repaid $4.2 million from these overdraft facilities. As of November 30, 2014, the Company had approximately $0.7 million (€0.5 million) of overdraft capacity, with no outstanding balance. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Nov. 30, 2014 | |
Related Party Transactions | (9) Related Party Transactions |
One of the Company’s directors, Patrick J. O’Malley, III, is the Chief Financial Officer of Seagate Technology Public Limited Company, or Seagate PLC. Seagate LLC, a wholly-owned subsidiary of Seagate PLC (“Seagate”), is one of the Company’s customers and the Company earned revenue of $0.7 million and $0.9 million for the three months ended November 30, 2014 and 2013, and $2.1 million and $2.5 million for the nine months ended November 30, 2014 and 2013 from this customer. The Company received payments from Seagate of $2.5 million and $1.6 million for the three months ended November 30, 2014 and 2013, and $2.5 million and $2.8 million for the nine months ended November 30, 2014 and 2013. The Company has outstanding receivables from Seagate of $0.1 million and $0.1 million as of November 30, 2014 and February 28, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Nov. 30, 2014 | |||||
Commitments and Contingencies | (10) Commitments and Contingencies | ||||
Acquisition-related Obligations | |||||
In accordance with the share purchase agreement for the acquisition of ICON, the Company placed in escrow approximately $5.4 million (€4.0 million) payable to ICON’s former shareholders. In September 2014, the Company released $4.0 million to ICON’s former shareholders. As of November 30, 2014, the remaining $1.4 million is recorded as restricted cash, under prepaid expenses and other current assets in the balance sheet, with the corresponding liability recorded under acquisition-related obligations in the balance sheet. | |||||
During the three months ended August 31, 2014, the Company completed the acquisition of Serus. The purchase consideration includes a contingent payment earnout of up to $7.5 million based upon the achievement of certain revenue-related financial performance milestones. This contingent consideration (“earn-out liability’) is recorded at fair value on the acquisition date and is re-measured quarterly based on the then-assessed fair value and adjusted if necessary. As of November 30, 2014, the estimated fair value of the earn-out liability was approximately $6.8 million and was recorded in acquisition-related obligations in our consolidated balance sheet. Additionally, there is a $1.9 million cash holdback payable on May 31, 2015, which was also reported under acquisition-related obligations in our consolidated balance sheet. | |||||
Leases | |||||
The Company leases its primary office space under noncancelable operating leases with various expiration dates through January 2020. Rent expense was $0.8 million and $0.7 million for the three months ended November 30, 2014 and 2013, and $2.3 million and $2.0 million for the nine months ended November 30, 2014 and 2013. Future minimum lease payments under noncancelable operating leases as of November 30, 2014 are as follows (in thousands): | |||||
Fiscal year ending: | |||||
2015 (remaining 3 months) | $ | 714 | |||
2016 | 2,645 | ||||
2017 | 2,375 | ||||
2018 | 2,245 | ||||
2019 | 1,372 | ||||
2020 | 694 | ||||
Total minimum lease payments | $ | 10,045 | |||
Several of the operating lease agreements require the Company to provide security deposits. As of November 30, 2014 and February 28, 2014, lease deposits totaled $0.5 million and $0.5 million. The deposits are generally refundable at the expiration of the lease, assuming all of the Company’s obligations under the lease agreement have been met, and are included in other assets in the condensed consolidated balance sheets. | |||||
Contingencies | |||||
From time to time, the Company is subject to contingencies that arise in the ordinary course of business. The Company records an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company does not currently believe the resolution of any such contingencies will have a material effect upon the Company’s financial position, results of operations or cash flows. | |||||
In the normal course of business, the Company enters into contracts that include provisions indemnifying customers against liabilities if the Company’s products infringe a third-party’s intellectual property rights. The Company has not incurred any costs as a result of such indemnifications and has not accrued any liabilities related to such obligations. |
Interest_and_other_income_expe
Interest and other income (expense), net | 9 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Interest and other income (expense), net | (11) Interest and other income (expense), net | ||||||||||||||||
Interest and other income (expense), net for the periods presented consisted of the following (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest income | $ | 34 | $ | 4 | $ | 100 | $ | 85 | |||||||||
Interest expense | (116 | ) | (77 | ) | (293 | ) | (145 | ) | |||||||||
Bank financing fees | (30 | ) | (34 | ) | (91 | ) | (35 | ) | |||||||||
Foreign exchange gains (losses)—realized and unrealized, net | (27 | ) | (181 | ) | 2 | (224 | ) | ||||||||||
Gains (losses) from foreign currency contracts—realized and unrealized, net | (449 | ) | (174 | ) | (220 | ) | (71 | ) | |||||||||
Other, net | 12 | 1 | (62 | ) | 11 | ||||||||||||
$ | (576 | ) | $ | (461 | ) | $ | (564 | ) | $ | (379 | ) | ||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 30, 2014 | |
Income Taxes | (12) Income Taxes |
The Company records its interim income tax benefit or provision based on its estimated annual effective tax rate for the year. The benefit from (provision for) income taxes for the three months ended November 30, 2014 and 2013 was $(0.1) million and $0.2 million, and for the nine months ended November 30, 2014 and 2013, was $(0.1) million and $0.1 million. The provision for income taxes comprised primarily foreign and state income taxes. | |
The Company has incurred operating losses for most years since inception. As of February 28, 2014, it had net operating loss (“NOL”) carryforwards for federal income tax purposes of $340.9 million, which begin to expire in fiscal 2023, and had NOL carryforwards for state income tax purposes of $69.2 million, which begin to expire in fiscal 2015. In order to utilize the NOL carryforwards, the Company must generate consolidated taxable income which can offset such carryforwards. The deferred tax asset associated with the NOL carryforwards is $98.0 million. As a result of continuing losses, management has determined that insufficient evidence exists to support that it is more likely than not that the Company will realize the benefits of its U.S. net deferred tax assets and therefore has recorded a valuation allowance to reduce the net carrying value of these deferred tax assets to zero. Accordingly, the Company has not recorded a provision for income taxes for any of the periods presented other than provisions for estimated federal alternative minimum taxes, state and foreign taxes, as well as income taxes in foreign jurisdictions. The Company’s effective tax rate differs from the statutory rate due primarily to valuation allowances on deferred taxes, state taxes, foreign taxes, and tax contingencies. | |
The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income taxes. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are expected to be reinvested indefinitely. There is $1.4 million of undistributed earnings of the Company’s foreign subsidiaries as of November 30, 2014. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be repatriated. | |
As of November 30, 2014 and February 28, 2014, the total amount of gross unrecognized tax benefits was $8.3 million and $8.4 million, of which $0.6 million, if recognized, would affect the Company’s effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The total amount of gross interest and penalties accrued was $0.1 million as of November 30, 2014 and February 28, 2014, and was classified as other noncurrent liabilities in the consolidated balance sheets. The Company believes that it has adequately provided for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. The Company is not currently under examination or audit by any taxing authorities. For the three and nine months ended November 30, 2014, there has been no material change in the total amount or composition of the Company’s unrecognized tax benefits. The Company is subject to taxation in the U.S., various states and foreign jurisdictions. The 2000 to 2014 tax years’ statutes of limitations generally remain open and are subject to U.S. federal and state tax examinations. The statutes of limitations in foreign jurisdictions range from four to seven years, and the open tax years subject to examination are from 2007 to 2014. |
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Stock-based Compensation | (13) Stock-based Compensation | ||||||||||||||||
Options and Awards Granted to Employees | |||||||||||||||||
The Company has the ability to issue incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance units and performance shares to service providers, including employees and directors, upon Board approval. As of November 30, 2014, there were 6,744,706 shares of common stock reserved for issuance under all stock plans. | |||||||||||||||||
Options may be granted for periods of up to 10 years; provided, however, that (i) the exercise price of an ISO and NSO shall not be less than 100% of the estimated fair value of the shares of common stock on the date of grant, and (ii) the exercise price of an ISO granted to a 10% stockholder shall not be less than 110% of the estimated fair value of the underlying shares on the date of grant. Options generally vest 25% on the one-year anniversary of the option grant date, and then monthly for three additional years, and are exercisable for a period of 10 years after the date of grant. RSUs generally vest 25% on the first annual anniversary of the award grant date, and 25% each year thereafter on the annual anniversary of the award grant date for three additional years. | |||||||||||||||||
The determination of the fair value of stock-based payment awards on the date of grant using a pricing model is affected by the Company’s stock price as well as by certain assumptions including the Company’s expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behavior, risk-free interest rates, and expected dividends. The estimated grant date fair values of the employee stock options were calculated using the Black Scholes valuation model, based on the following assumptions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Expected term (in years) | 6.04 | 6.08 | 6.07 | 5.94 | |||||||||||||
Expected stock price volatility | 50.07% | 50.02% | 50.07% - 50.96% | 50.02% - 51.76% | |||||||||||||
Risk-free interest rate | 1.80% - 1.82% | 1.78% | 1.80% - 1.94% | 0.73% - 1.81% | |||||||||||||
Expected dividend yield | — | — | — | — | |||||||||||||
The expected term represents the period that stock-based awards are expected to be outstanding, giving consideration to the contractual terms of the stock-based awards, vesting schedules, and expectations of future employee behavior as influenced by changes to the terms of the Company’s stock-based awards. The Company estimated the expected term, using the simplified method due to limited exercise data, to be the period of time between the date of grant and the midpoint between option vesting and expiration. The Company estimated the expected volatility of its common stock based on the average of historical and implied volatility of comparable companies from a representative peer group based on industry and market capitalization data. The risk-free interest rate represents the yield on a constant maturity U.S. Treasury security with a term equal to the expected term of the options. Expected dividend yield is set at 0% because the Company does not expect to pay dividends during the term of the option, and historically has not paid any dividends to its stockholders. Management made an estimate of expected forfeitures and is recognizing compensation costs only for those equity awards expected to vest. | |||||||||||||||||
In July 2011, the Company awarded 749,464 stock options that were subject to certain financial performance requirements to be achieved by February 28, 2013, before vesting could occur. The vesting of these stock options was also dependent upon the employees’ continued employment after February 28, 2013. In March 2012, the Board of Directors approved a modification of the financial performance requirements. At the date of the modification, the Company determined that the achievement of the modified performance requirements was probable and, accordingly, the recording of compensation cost related to the modified awards commenced. Prior to this date, the Company had not recognized compensation expense associated with these grants because the Company believed that, based on the then-current and expected operational results, it was not probable that the associated financial performance requirements would be achieved. The modified financial performance requirements were achieved by February 28, 2013. The unrecognized compensation cost related to these options is $0.3 million as of November 30, 2014, and is being recognized over the remaining vesting term of three years from the measurement date of February 28, 2013. | |||||||||||||||||
In July 2013, the Company awarded 125,250 restricted stock units that were subject to certain financial performance requirements to be achieved by February 28, 2014 before vesting could occur. The vesting of these stock awards is also dependent upon the employees’ continued employment after February 28, 2014. In May 2014, the Board of Directors approved a modification of these awards which resulted in an incremental compensation expense to be recognized over the remaining vesting period. For the three and nine months ended November 30, 2014, the compensation cost related to these awards is $0.1 million and $1.0 million. The unrecognized compensation cost related to these awards as of November 30, 2014 is $0.3 million, and is being recognized over the remaining vesting period of nine months. | |||||||||||||||||
For the nine months ended November 30, 2014 and fiscal 2014, the Company awarded 233,332 and 356,500 restricted stock units that are subject to certain financial performance requirements before vesting can occur, and the employees’ continued employment. The Company records compensation expense related to these awards based on the estimated probability of achievement of the financial performance requirements. The compensation cost related to the awards deemed probable of vesting amounting to $0.3 million and $0.9 million was recorded in the condensed consolidated statement of operations for the three and nine months ended November 30, 2014. The unrecognized compensation cost related to the awards is $1.2 million as of November 30, 2014, and is being recognized over the remaining vesting period ranging from nine months to two years and nine months. | |||||||||||||||||
Stock Options: | |||||||||||||||||
Stock option activity under the Company’s 2012 Plan for the years presented is as follows: | |||||||||||||||||
Number of | Weighted | Weighted | |||||||||||||||
shares | average | average | |||||||||||||||
exercise | remaining | ||||||||||||||||
price | term | ||||||||||||||||
Balance of options outstanding, February 28, 2014 | 2,241,784 | $ | 9.86 | 7.97 years | |||||||||||||
Options granted | 376,366 | 14.9 | |||||||||||||||
Options exercised | (143,835 | ) | 3.89 | ||||||||||||||
Options canceled and forfeited | (195,949 | ) | 16.84 | ||||||||||||||
Balance of options outstanding, November 30, 2014 | 2,278,366 | 10.47 | 7.38 years | ||||||||||||||
Balance of options expected to vest as of February 28, 2014 | 2,179,660 | 9.71 | 7.95 years | ||||||||||||||
Balance of options exercisable as of February 28, 2014 | 841,902 | 6.38 | 7.29 years | ||||||||||||||
Balance of options expected to vest as of November 30, 2014 | 2,197,617 | 10.32 | 7.34 years | ||||||||||||||
Balance of options exercisable as of November 30, 2014 | 1,167,281 | 8.03 | 6.77 years | ||||||||||||||
The weighted average grant date fair value per share of the employee stock options granted during the three months ended November 30, 2014 and 2013 was $6.13 and $19.40, and for the nine months ended November 30, 2014 and 2013 was $14.90 and $18.60. | |||||||||||||||||
The intrinsic values of employee stock options exercised during the three months ended November 30, 2014 and 2013 was $0.1 million and $2.4 million, and for the nine months ended November 30, 2014 and 2013 was $1.3 million and $11.2 million. The intrinsic values of vested shares as of November 30, 2014 and February 28, 2014 were $2.7 million and $18.0 million. | |||||||||||||||||
As of November 30, 2014, the number of unvested options was 1,111,085. | |||||||||||||||||
As of November 30, 2014, the Company had $6.7 million of unrecognized compensation cost excluding estimated forfeitures, related to unvested stock option awards, which is expected to be recognized over a weighted average period of 2.35 years. | |||||||||||||||||
Restricted Stock Units: | |||||||||||||||||
The RSU activity under the Company’s 2012 Plan for the years presented is as follows: | |||||||||||||||||
Number of | Weighted | Weighted | |||||||||||||||
shares | average grant | average | |||||||||||||||
date fair value | remaining term | ||||||||||||||||
per share | |||||||||||||||||
Balance of awards outstanding, February 28, 2014 | 568,195 | $ | 19.83 | 2.11 years | |||||||||||||
Awards granted | 1,548,284 | 11.58 | |||||||||||||||
Awards released | (159,757 | ) | 12.55 | ||||||||||||||
Awards canceled and forfeited | (65,184 | ) | 18.36 | ||||||||||||||
Balance of awards outstanding, November 30, 2014 | 1,891,538 | $ | 13.27 | 1.69 years | |||||||||||||
Balance of awards expected to vest, February 28, 2014 | 520,774 | $ | 19.83 | 2.11 years | |||||||||||||
Balance of awards expected to vest, November 30, 2014 | 1,665,013 | $ | 13.27 | 2.98 years | |||||||||||||
The weighted average grant date fair value per share of the RSUs granted during the three months ended November 30, 2014 and 2013 was $5.65 and $22.41, and for the nine months ended November 30, 2014 and 2013 was $11.58 and $20.87. | |||||||||||||||||
The intrinsic value of outstanding RSUs as of November 30, 2014 was $12.7 million. | |||||||||||||||||
Total compensation expense for these awards recorded in the condensed consolidated statement of operations for the three months ended November 30, 2014 and 2013 was $1.4 million and $0.3 million, and for the nine months ended November 30, 2014 and November 30, 2013 was $4.6 million and $0.7 million. As of November 30, 2014, none of the outstanding awards were vested. | |||||||||||||||||
As of November 30, 2014, the Company had $1.5 million of unrecognized compensation expense related to these RSUs, which is expected to be recognized over a weighted average period of 2.98 years. | |||||||||||||||||
Total share-based compensation: | |||||||||||||||||
Total compensation expense recorded for share-based awards for the three months ended November 30, 2014 and 2013 was $2.3 million and $1.4 million, and for the nine months ended November 30, 2014 and November 30, 2013 was $7.1 million and $4.0 million. No compensation cost was capitalized during the three and nine months ended November 30, 2014 and 2013. | |||||||||||||||||
The table below sets forth the functional classification of share-based compensation expense for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of revenue | $ | 649 | $ | 403 | $ | 2,075 | $ | 1,132 | |||||||||
Research and development | 206 | 133 | 581 | 349 | |||||||||||||
Sales and marketing | 887 | 559 | 2,614 | 1,466 | |||||||||||||
General and administrative | 572 | 351 | 1,858 | 1,062 | |||||||||||||
$ | 2,314 | $ | 1,446 | $ | 7,128 | $ | 4,009 | ||||||||||
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Net Loss Per Share | (14) Net Loss Per Share | ||||||||||||||||
Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding, including potential dilutive common shares assuming the dilutive effect of outstanding stock options, restricted stock units and warrants using the treasury stock method. For periods in which the Company has generated a net loss, the Company does not include stock options, warrants, and unvested restricted stock units in its computation of diluted net loss per share, as the impact of these awards is anti-dilutive. | |||||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss | $ | (9,066 | ) | $ | (7,382 | ) | $ | (25,734 | ) | $ | (18,699 | ) | |||||
Basic and diluted shares: | 29,253 | 26,545 | 29,065 | 26,061 | |||||||||||||
Net loss per share: | |||||||||||||||||
Basic and diluted | $ | (0.31 | ) | $ | (0.28 | ) | $ | (0.89 | ) | $ | (0.72 | ) | |||||
The following weighted average outstanding shares, options, restricted stock units and warrants were excluded from the computation of diluted net income per share in the periods presented because including them would have had an anti-dilutive effect (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Options to purchase common stock | 609 | 1,189 | 893 | 1,312 | |||||||||||||
Restricted stock units | 627 | 320 | 745 | 230 |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Measurements | (15) Fair Value Measurements | ||||||||||||||||||||||||||||||||
The Company’s financial instruments include cash and cash equivalents, investments, accounts receivable, net, accounts payable, acquisition-related obligations, notes payable and capital lease obligations. Accounts receivable, net, accounts payable and acquisition-related obligations are stated at their carrying value, which approximates fair value, due to their short maturity. The Company measures its cash equivalents, investments and foreign currency forward contracts at fair value based on an exchange or exit price as defined by the authoritative guidance on fair value measurements which represents the amount that would be received for an asset sale or an exit price, or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants. The Company estimates the fair value for notes payable and capital lease obligations by discounting the future cash flows of the related note and lease payments. | |||||||||||||||||||||||||||||||||
As a basis for considering such assumptions, accounting guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||||||||||||||||||||||||
Level 1 | — | Observable inputs such as quoted prices in an active market; | |||||||||||||||||||||||||||||||
Level 2 | — | Inputs other than the quoted prices in active markets that are observable either directly or indirectly; and | |||||||||||||||||||||||||||||||
Level 3 | — | Unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. | |||||||||||||||||||||||||||||||
Observable inputs are based on market data obtained from independent sources. Unobservable inputs reflect the Company’s assessment of the assumptions market participants would use to value certain financial instruments. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. | |||||||||||||||||||||||||||||||||
The Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of November 30, 2014 and February 28, 2014, are summarized as follows (in thousands): | |||||||||||||||||||||||||||||||||
November 30, 2014 | February 28, 2014 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||
Money market accounts | $ | 7,564 | $ | — | $ | — | $ | 7,564 | $ | 11,905 | $ | — | $ | — | $ | 11,905 | |||||||||||||||||
Money market funds | 5,908 | — | — | 5,908 | 19,221 | — | — | 19,221 | |||||||||||||||||||||||||
Commercial paper | — | — | — | — | — | 8,297 | — | 8,297 | |||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||
Commercial paper | — | 650 | — | 650 | — | 10,491 | — | 10,491 | |||||||||||||||||||||||||
Corporate debt securities | — | 4,120 | — | 4,120 | — | 2,378 | — | 2,378 | |||||||||||||||||||||||||
Agency bonds | — | — | — | — | — | 1,505 | — | 1,505 | |||||||||||||||||||||||||
Certificate of deposit | 501 | — | — | 501 | — | — | — | — | |||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | — | — | — | — | 60 | — | 60 | |||||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||||
Corporate debt securities | — | 672 | — | 672 | — | 3,151 | — | 3,151 | |||||||||||||||||||||||||
Asset-backed securities | — | 198 | — | 198 | — | 250 | — | 250 | |||||||||||||||||||||||||
Common trust funds | — | 15 | — | 15 | — | 116 | — | 116 | |||||||||||||||||||||||||
Insurance company contracts | — | 15 | — | 15 | — | 16 | — | 16 | |||||||||||||||||||||||||
U.S. government securities | — | — | — | — | 5,008 | — | — | 5,008 | |||||||||||||||||||||||||
Other noncurrent assets: | |||||||||||||||||||||||||||||||||
Certificate of deposit | 16 | — | — | 16 | 16 | — | — | 16 | |||||||||||||||||||||||||
Total assets | $ | 13,989 | $ | 5,670 | $ | — | $ | 19,659 | $ | 36,150 | $ | 26,264 | $ | — | $ | 62,414 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Acquisition-related obligations: | |||||||||||||||||||||||||||||||||
Earn-out liability (see note 3) | — | — | 6,800 | 6,800 | — | — | — | — | |||||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | 364 | — | 364 | — | (163 | ) | — | (163 | ) | |||||||||||||||||||||||
Total liabilities | $ | — | $ | 364 | $ | 6,800 | $ | 7,164 | $ | — | (163 | ) | — | (163 | ) | ||||||||||||||||||
The fair values of the Company’s Level 1 financial instruments, which are traded in active markets, are based on quoted market prices for identical instruments. The fair values of the Company’s Level 2 financial instruments are based on quoted market prices for comparable instruments or model driven valuations using observable market data or inputs corroborated by observable market data. The Company’s foreign currency forward contracts are valued using pricing models that use observable market inputs and, therefore, are classified as Level 2. The Company’s earn-out liability is valued based on probability-weighted payout approach that use unobservable market input and, therefore, is classified as Level 3. | |||||||||||||||||||||||||||||||||
In the nine months ended November 30, 2014, the Company sought to hedge the risks associated with exchange rate fluctuations through entry into forward exchange contracts. The contracts are classified as Level 2. The tables below present the notional amounts (at the contract exchange rates), the weighted-average contractual foreign currency exchange rates, and the estimated fair value of contracts outstanding as of November 30, 2014 and February 28, 2014 (in USD thousands, except average contract rate): | |||||||||||||||||||||||||||||||||
November 30, 2014 | February 28, 2014 | ||||||||||||||||||||||||||||||||
Notional | Average | Estimated | Notional | Average | Estimated | ||||||||||||||||||||||||||||
Sell | Contract | Fair | Sell | Contract | Fair | ||||||||||||||||||||||||||||
(Buy) | Rate | Value | (Buy) | Rate | Value | ||||||||||||||||||||||||||||
Foreign currency forward exchange contracts: | |||||||||||||||||||||||||||||||||
Euro | $ | 65 | 1.3 | $ | 11 | $ | 7,401 | 1.4 | $ | (256 | ) | ||||||||||||||||||||||
Malaysian Ringgit | (2,763 | ) | 3.3 | (101 | ) | (2,146 | ) | 3.2 | (59 | ) | |||||||||||||||||||||||
British Pound | (5,769 | ) | 1.6 | (274 | ) | (4,317 | ) | 1.6 | 212 | ||||||||||||||||||||||||
Total | $ | (8,467 | ) | $ | (364 | ) | $ | 938 | $ | (103 | ) | ||||||||||||||||||||||
The Company entered into the foreign exchange contracts with two counterparties. The Company has the right of offset for gains earned and losses incurred under contracts with the same counterparty, and therefore has recorded contracts with the same counterparty on a net basis in the balance sheet. | |||||||||||||||||||||||||||||||||
The Company does not use derivatives for speculative or trading purposes. |
Significant_Customer_Informati
Significant Customer Information | 9 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||||||||||
Significant Customer Information | (16) Significant Customer Information | ||||||||||||||||||||||||||||||||
Customers accounting for 10% or more of revenue or accounts receivable were as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
November 30, 2014 | November 30, 2013 | November 30, 2014 | November 30, 2013 | ||||||||||||||||||||||||||||||
Percentage | Percentage | Percentage | Percentage | Percentage | Percentage | Percentage | Percentage | ||||||||||||||||||||||||||
of Total | of | of Total | of | of Total | of | of Total | of | ||||||||||||||||||||||||||
Revenue | Accounts | Revenue | Accounts | Revenue | Accounts | Revenue | Accounts | ||||||||||||||||||||||||||
Receivable | Receivable | Receivable | Receivable | ||||||||||||||||||||||||||||||
Customer A | * | 10 | % | * | * | * | 10 | % | * | * | |||||||||||||||||||||||
Customer B | * | * | * | 16 | % | * | * | * | 16 | % | |||||||||||||||||||||||
* | Indicates less than 10% | ||||||||||||||||||||||||||||||||
Revenue by geographic region, based on the billing address of the customer, was as follows (in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
November 30, | November 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Revenue by geographic region: | |||||||||||||||||||||||||||||||||
Americas | $ | 15,770 | $ | 14,600 | $ | 45,895 | $ | 42,146 | |||||||||||||||||||||||||
Europe | 4,140 | 3,476 | 12,603 | 9,157 | |||||||||||||||||||||||||||||
Asia | 240 | 184 | 664 | 568 | |||||||||||||||||||||||||||||
Total | $ | 20,150 | $ | 18,260 | $ | 59,162 | $ | 51,871 | |||||||||||||||||||||||||
Countries accounting for 10% or more of revenue were as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
November 30, | November 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Revenue by country: | |||||||||||||||||||||||||||||||||
United States | 76.5 | % | 74.4 | % | 74.3 | % | 75.6 | % | |||||||||||||||||||||||||
United Kingdom | 13.7 | * | 12.8 | * | |||||||||||||||||||||||||||||
* | Indicates less than 10% |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 30, 2014 | |
Basis of Presentation | Basis of Presentation |
The accompanying condensed consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and notes normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). | |
Unaudited Interim Financial Information | |
These unaudited interim financial statements have been prepared in accordance with GAAP. In management’s opinion, the unaudited interim financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position and operating results for the periods presented. The results for the three and nine months ended November 30, 2014 are not necessarily indicative of the results expected for the full fiscal year or any other period. | |
Accounting Policies | Accounting Policies |
The accompanying unaudited interim condensed consolidated financial statements and accompanying related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2014. | |
Accounting Updates | Accounting Updates |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective retrospectively for annual or interim reporting periods beginning after December 15, 2016, with early application not permitted. The Company is currently assessing the impact the adoption of this update will have on its consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-12-Compensation-Stock Compensation, which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The amendments may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented. The Company assessed that the adoption of this update will not have a material impact on its consolidated financial statements. | |
Use of Estimates | Use of Estimates |
The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. Such estimates include the allowance for doubtful accounts receivable, revenue allocations, deferred tax asset valuation allowance, unrecognized tax benefits, fair value of acquired tangible and intangible assets, useful lives of tangible and intangible assets, potential impairment of goodwill or other long-lived assets, accrued liabilities, loss contingencies and stock-based compensation amortization periods and forfeiture rates. Actual results could differ from those estimates. | |
Revenue Recognition | Revenue Recognition |
The Company generates revenue primarily from the sale of subscriptions and support and professional services. | |
Subscriptions and Support. The Company offers on-demand software solutions, which enable its customers to have constant access to its solutions without the need to manage and support the software and associated hardware themselves. The Company houses the hardware and software in third-party facilities, and provides its customers with access to the software solutions, along with data security and storage, backup and recovery services and solution support. The Company’s customer contracts typically have terms of three to five years. The Company invoices its customers for subscriptions and support in advance for annual use of the software solutions. The Company’s payment terms typically require customers to pay within 30 to 90 days from the invoice date. | |
Professional Services. Professional services revenue is derived primarily from fees for enabling services, including solution consulting and solution deployment. These services are sold in conjunction with the sale of the Company’s on-demand software solutions. The Company provides professional services, both on a fixed fee and a time and materials basis, and invoices customers either in advance, monthly, or upon reaching project milestones. | |
The Company enters into arrangements with multiple elements, comprising subscriptions and support and professional services. Arrangements with customers typically do not provide the customer with the right to take possession of the software supporting the on-demand solutions. The Company commences revenue recognition when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the Company’s price to the customer is fixed or determinable, and collectability of the fees is reasonably assured. | |
The Company evaluates each of these criteria as follows: | |
Evidence of an Arrangement. The Company considers a binding agreement signed by it and the customer to be evidence of an arrangement. | |
Delivery. The Company typically considers delivery to have occurred when the on-demand software solutions are made available to the customer or services have been rendered. In arrangements where an existing customer purchases additional solutions, delivery occurs upon commencement of the contractual term. | |
Fixed or Determinable Fee. The Company considers the fee to be fixed or determinable unless the fee is subject to refund or adjustment or is not payable within its standard payment terms. If the fee is not fixed or determinable, the Company recognizes the revenue as amounts become due and payable. | |
Collectability of the Fees is Reasonably Assured. Collectability of the fees is reasonably assured if the Company expects that the customer will be able to pay amounts under the arrangement as payments become due. If the Company determines that collection is not reasonably assured, the Company defers the recognition of revenue until cash collection. | |
The Company accounts for subscriptions and support and professional services revenue as separate units of accounting and allocates revenue to each deliverable in an arrangement based on a selling price hierarchy. As the Company has been unable to establish vendor specific objective evidence (“VSOE”) or third party evidence (“TPE”) for the elements of its arrangements, the Company determines the best estimated selling price (“BESP”) for each element primarily by considering prices the Company charges for similar offerings, size of the order and historical pricing practices. Revenue allocated to subscriptions and support is recognized over the contractual term. Professional services revenue sold on a fixed fee basis is recognized either under the proportional performance method of accounting using estimated labor hours, or upon acceptance of the services. Revenue from professional services sold on a time and material basis is recognized as services are delivered. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
The Company evaluates the recoverability of its long-lived assets, which consist principally of property and equipment and acquired intangible assets with finite lives, whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability of an asset is measured by comparing the carrying amount to the expected future undiscounted cash flows that the asset is expected to generate. If that review indicates that the carrying amount of the long-lived asset is not recoverable, an impairment charge is recorded for the amount by which the carrying amount of the asset exceeds its fair value. The Company did not record any long-lived asset impairment charges during the nine months ended November 30, 2014 and 2013. |
Acquisition_Tables
Acquisition (Tables) | 9 Months Ended | ||||||||
Nov. 30, 2014 | |||||||||
Components of Purchase Consideration | The total initial purchase consideration comprised the following (in thousands): | ||||||||
Cash payment | $ | 12,405 | |||||||
238,194 shares of the Company’s common stock | 3,966 | ||||||||
Cash holdback | 1,850 | ||||||||
Fair value of earn-out liability | 6,600 | ||||||||
Total | $ | 24,821 | |||||||
Summary of Estimated Fair Values of Assets and Liabilities Assumed at Date of Acquisition Based on Purchase Price Allocation | The final purchase price allocation may differ from the preliminary amounts disclosed below (in thousands): | ||||||||
Cash and cash equivalents | $ | 82 | |||||||
Accounts receivable | 846 | ||||||||
Prepaid expenses and other current assets | 136 | ||||||||
Property and equipment | 172 | ||||||||
Identifiable intangible assets | 15,500 | ||||||||
Other assets | 66 | ||||||||
Total identifiable assets acquired | 16,802 | ||||||||
Accounts payable and accrued liabilities | (1,646 | ) | |||||||
Deferred revenue | (3,457 | ) | |||||||
Capital lease obligations and notes payable | (64 | ) | |||||||
Other noncurrent liabilities | (22 | ) | |||||||
Total liabilities assumed | (5,189 | ) | |||||||
Net identifiable assets acquired | 11,613 | ||||||||
Goodwill | 13,208 | ||||||||
Total consideration | $ | 24,821 | |||||||
Adjusted Unaudited Pro Forma Financial Results | The provision for income taxes from continuing operations has also been adjusted for all periods, based upon the foregoing adjustments to historical results. | ||||||||
Nine Months Ended | |||||||||
November 30, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share data) | |||||||||
Pro forma revenue | $ | 60,957 | $ | 54,951 | |||||
Pro forma net loss | (24,325 | ) | (24,669 | ) | |||||
Pro forma net income (loss) per share: | |||||||||
Basic and diluted | (0.92 | ) | (0.94 | ) |
Cash_and_Investments_Tables
Cash and Investments (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Schedule of Cash, Cash Equivalents and Investments | The following table presents cash, cash equivalents and investments for the periods presented (in thousands): | ||||||||||||||||
Amortized Cost | Gross | Gross | Estimated Fair | ||||||||||||||
Unrealized | Unrealized | Market Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
As of November 30, 2014: | |||||||||||||||||
Cash | $ | 5,428 | $ | — | $ | — | $ | 5,428 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market accounts | 7,564 | — | — | 7,564 | |||||||||||||
Money market funds | 5,908 | — | — | 5,908 | |||||||||||||
Commercial paper | — | — | — | — | |||||||||||||
Short-term investments: | |||||||||||||||||
Commercial paper | 650 | — | — | 650 | |||||||||||||
Corporate debt securities | 4,118 | 3 | (1 | ) | 4,120 | ||||||||||||
Agency bonds | — | — | — | — | |||||||||||||
Certificate of deposit | 501 | — | — | 501 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate debt securities | 672 | — | — | 672 | |||||||||||||
Asset-backed securities | 198 | — | — | 198 | |||||||||||||
U.S. government securities | — | — | — | — | |||||||||||||
Common trust funds | 15 | — | — | 15 | |||||||||||||
Insurance company contracts | 15 | — | — | 15 | |||||||||||||
Total cash, cash equivalents, and investments | $ | 25,069 | $ | 3 | $ | (1 | ) | $ | 25,071 | ||||||||
Amortized Cost | Gross | Gross | Estimated Fair | ||||||||||||||
Unrealized | Unrealized | Market Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
As of February 28, 2014: | |||||||||||||||||
Cash | $ | 3,300 | $ | — | $ | — | $ | 3,300 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market accounts | 11,905 | — | — | 11,905 | |||||||||||||
Money market funds | 19,221 | — | — | 19,221 | |||||||||||||
Commercial paper | 8,296 | 1 | — | 8,297 | |||||||||||||
Short-term investments: | |||||||||||||||||
Commercial paper | 10,492 | — | (1 | ) | 10,491 | ||||||||||||
Corporate debt securities | 2,378 | 1 | (1 | ) | 2,378 | ||||||||||||
Agency bonds | 1,504 | 1 | — | 1,505 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate debt securities | 3,154 | 3 | (6 | ) | 3,151 | ||||||||||||
Asset-backed securities | 250 | — | — | 250 | |||||||||||||
U.S. government securities | 5,005 | 3 | — | 5,008 | |||||||||||||
Common trust funds | 120 | — | (4 | ) | 116 | ||||||||||||
Insurance company contracts | 16 | — | — | 16 | |||||||||||||
Total cash, cash equivalents, and investments | $ | 65,641 | $ | 9 | $ | (12 | ) | $ | 65,638 | ||||||||
Schedule of Available-For-Sale Investments by Contractual Maturity Date | The following table presents available-for-sale securities, recorded in cash equivalents and investments, by contractual maturity date as of November 30, 2014 (in thousands): | ||||||||||||||||
Amortized | Estimated | ||||||||||||||||
Cost | Fair Market | ||||||||||||||||
Value | |||||||||||||||||
Matures in one year or less | $ | 5,269 | $ | 5,271 | |||||||||||||
Matures after one year through two years | 901 | 900 | |||||||||||||||
Total | $ | 6,170 | $ | 6,171 | |||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||
Nov. 30, 2014 | |||||||||
Goodwill and Intangible Assets | Goodwill and intangible assets are as follows (in thousands): | ||||||||
November 30, | February 28, | ||||||||
2014 | 2014 | ||||||||
Goodwill | |||||||||
ICON | $ | 22,784 | $ | 22,556 | |||||
Serus (see note 3) | 13,208 | — | |||||||
$ | 35,992 | $ | 22,556 | ||||||
Intangible assets | |||||||||
Acquired technology | $ | 14,700 | $ | 7,000 | |||||
Less: accumulated amortization | (2,624 | ) | (817 | ) | |||||
Net acquired technology | 12,076 | 6,183 | |||||||
Customer relationships | 13,700 | 5,900 | |||||||
Less: accumulated amortization | (2,340 | ) | (688 | ) | |||||
Net customer relationships | 11,360 | 5,212 | |||||||
Net intangible assets | $ | 23,436 | $ | 11,395 | |||||
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended November 30, 2014 are as follows (in thousands): | ||||||||
As of February 28, 2014 | $ | 22,556 | |||||||
Acquisition of Serus | 13,208 | ||||||||
Adjustments to ICON goodwill | 228 | ||||||||
As of November 30, 2014 | $ | 35,992 | |||||||
Expected Future Annual Amortization Expense Related to Acquired Intangible Assets | The expected future annual amortization expense related to the acquired intangible assets existing as of November 30, 2014, is as follows (in thousands): | ||||||||
Fiscal year ending: | |||||||||
2015 (remaining three months) | $ | 1,420 | |||||||
2016 | 5,680 | ||||||||
2017 | 5,680 | ||||||||
2018 | 5,680 | ||||||||
2019 onwards | 4,976 | ||||||||
Total | $ | 23,436 | |||||||
Consolidated_Balance_Sheet_Com1
Consolidated Balance Sheet Components (Tables) | 9 Months Ended | ||||||||
Nov. 30, 2014 | |||||||||
Components of Consolidated Balance Sheet | Consolidated balance sheet components as of the dates presented comprised the following: | ||||||||
November 30, | February 28, | ||||||||
2014 | 2014 | ||||||||
Prepaid expenses and other current assets (in thousands): | |||||||||
Prepaid software license fees, hardware and software maintenance | $ | 1,503 | $ | 1,215 | |||||
Restricted cash held in escrow (see note 10) | 1,424 | — | |||||||
Other prepaid expenses and other current assets | 1,728 | 3,165 | |||||||
$ | 4,655 | $ | 4,380 | ||||||
November 30, | February 28, | ||||||||
2014 | 2014 | ||||||||
Property and equipment, net (in thousands): | |||||||||
Computer equipment | $ | 10,687 | $ | 9,569 | |||||
Software | 9,635 | 9,461 | |||||||
Furniture and fixtures | 419 | 214 | |||||||
Leasehold improvements | 546 | 511 | |||||||
21,287 | 19,755 | ||||||||
Less: accumulated depreciation and amortization | (17,846 | ) | (16,324 | ) | |||||
$ | 3,441 | $ | 3,431 | ||||||
November 30, | February 28, | ||||||||
2014 | 2014 | ||||||||
Accounts payable and accrued liabilities (in thousands): | |||||||||
Accrued compensation costs | $ | 7,185 | $ | 7,494 | |||||
Trade accounts payable | 3,502 | 3,242 | |||||||
Accrued taxes and other | 1,576 | 1,630 | |||||||
$ | 12,263 | $ | 12,366 | ||||||
Notes_Payable_and_Capital_Leas1
Notes Payable and Capital Lease Obligations (Tables) | 9 Months Ended | ||||
Nov. 30, 2014 | |||||
Future Minimum Payments Due under Capital Lease Obligations | Total minimum payments due under capital lease obligations as of November 30, 2014 are as follows (in thousands): | ||||
Fiscal year ending: | |||||
2015 (remaining 3 months) | $ | 533 | |||
2016 | 1,720 | ||||
2017 | 499 | ||||
2018 | 122 | ||||
Total minimum payments | 2,874 | ||||
Less: portion representing interest | (181 | ) | |||
Total principal portion of minimum payments | 2,693 | ||||
Less: current portion | (1,715 | ) | |||
Total principal portion of minimum payments, net of current portion | $ | 978 | |||
Amounts Due under Notes Payable | Total amounts due under notes payable as of November 30, 2014 are as follows (in thousands): | ||||
Fiscal year ending: | |||||
2015 (remaining 3 months) | $ | 617 | |||
2016 | 2,055 | ||||
2017 | 959 | ||||
2018 | 148 | ||||
Total | 3,779 | ||||
Less: current portion | (2,200 | ) | |||
Total notes payable, net of current portion | $ | 1,579 | |||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Nov. 30, 2014 | |||||
Future Minimum Lease Payments Under Noncancelable Operating Leases | Future minimum lease payments under noncancelable operating leases as of November 30, 2014 are as follows (in thousands): | ||||
Fiscal year ending: | |||||
2015 (remaining 3 months) | $ | 714 | |||
2016 | 2,645 | ||||
2017 | 2,375 | ||||
2018 | 2,245 | ||||
2019 | 1,372 | ||||
2020 | 694 | ||||
Total minimum lease payments | $ | 10,045 | |||
Interest_and_other_income_expe1
Interest and other income (expense), net (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Interest and Other Income (Expense), Net | Interest and other income (expense), net for the periods presented consisted of the following (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest income | $ | 34 | $ | 4 | $ | 100 | $ | 85 | |||||||||
Interest expense | (116 | ) | (77 | ) | (293 | ) | (145 | ) | |||||||||
Bank financing fees | (30 | ) | (34 | ) | (91 | ) | (35 | ) | |||||||||
Foreign exchange gains (losses)—realized and unrealized, net | (27 | ) | (181 | ) | 2 | (224 | ) | ||||||||||
Gains (losses) from foreign currency contracts—realized and unrealized, net | (449 | ) | (174 | ) | (220 | ) | (71 | ) | |||||||||
Other, net | 12 | 1 | (62 | ) | 11 | ||||||||||||
$ | (576 | ) | $ | (461 | ) | $ | (564 | ) | $ | (379 | ) | ||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Schedule of Estimated Grant Date Fair Values Employee Stock Options Assumptions | The estimated grant date fair values of the employee stock options were calculated using the Black Scholes valuation model, based on the following assumptions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Expected term (in years) | 6.04 | 6.08 | 6.07 | 5.94 | |||||||||||||
Expected stock price volatility | 50.07% | 50.02% | 50.07% - 50.96% | 50.02% - 51.76% | |||||||||||||
Risk-free interest rate | 1.80% - 1.82% | 1.78% | 1.80% - 1.94% | 0.73% - 1.81% | |||||||||||||
Expected dividend yield | — | — | — | — | |||||||||||||
Stock Options Activity | Stock option activity under the Company’s 2012 Plan for the years presented is as follows: | ||||||||||||||||
Number of | Weighted | Weighted | |||||||||||||||
shares | average | average | |||||||||||||||
exercise | remaining | ||||||||||||||||
price | term | ||||||||||||||||
Balance of options outstanding, February 28, 2014 | 2,241,784 | $ | 9.86 | 7.97 years | |||||||||||||
Options granted | 376,366 | 14.9 | |||||||||||||||
Options exercised | (143,835 | ) | 3.89 | ||||||||||||||
Options canceled and forfeited | (195,949 | ) | 16.84 | ||||||||||||||
Balance of options outstanding, November 30, 2014 | 2,278,366 | 10.47 | 7.38 years | ||||||||||||||
Balance of options expected to vest as of February 28, 2014 | 2,179,660 | 9.71 | 7.95 years | ||||||||||||||
Balance of options exercisable as of February 28, 2014 | 841,902 | 6.38 | 7.29 years | ||||||||||||||
Balance of options expected to vest as of November 30, 2014 | 2,197,617 | 10.32 | 7.34 years | ||||||||||||||
Balance of options exercisable as of November 30, 2014 | 1,167,281 | 8.03 | 6.77 years | ||||||||||||||
Restricted Stock Units Activity | The RSU activity under the Company’s 2012 Plan for the years presented is as follows: | ||||||||||||||||
Number of | Weighted | Weighted | |||||||||||||||
shares | average grant | average | |||||||||||||||
date fair value | remaining term | ||||||||||||||||
per share | |||||||||||||||||
Balance of awards outstanding, February 28, 2014 | 568,195 | $ | 19.83 | 2.11 years | |||||||||||||
Awards granted | 1,548,284 | 11.58 | |||||||||||||||
Awards released | (159,757 | ) | 12.55 | ||||||||||||||
Awards canceled and forfeited | (65,184 | ) | 18.36 | ||||||||||||||
Balance of awards outstanding, November 30, 2014 | 1,891,538 | $ | 13.27 | 1.69 years | |||||||||||||
Balance of awards expected to vest, February 28, 2014 | 520,774 | $ | 19.83 | 2.11 years | |||||||||||||
Balance of awards expected to vest, November 30, 2014 | 1,665,013 | $ | 13.27 | 2.98 years | |||||||||||||
Functional Classification of Share-Based Compensation Expense | The table below sets forth the functional classification of share-based compensation expense for the periods presented (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of revenue | $ | 649 | $ | 403 | $ | 2,075 | $ | 1,132 | |||||||||
Research and development | 206 | 133 | 581 | 349 | |||||||||||||
Sales and marketing | 887 | 559 | 2,614 | 1,466 | |||||||||||||
General and administrative | 572 | 351 | 1,858 | 1,062 | |||||||||||||
$ | 2,314 | $ | 1,446 | $ | 7,128 | $ | 4,009 | ||||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Computation of Basic and Diluted Net Loss per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss | $ | (9,066 | ) | $ | (7,382 | ) | $ | (25,734 | ) | $ | (18,699 | ) | |||||
Basic and diluted shares: | 29,253 | 26,545 | 29,065 | 26,061 | |||||||||||||
Net loss per share: | |||||||||||||||||
Basic and diluted | $ | (0.31 | ) | $ | (0.28 | ) | $ | (0.89 | ) | $ | (0.72 | ) | |||||
Computation of Diluted Net Income Per Share Excluding Shares Options and Warrants | The following weighted average outstanding shares, options, restricted stock units and warrants were excluded from the computation of diluted net income per share in the periods presented because including them would have had an anti-dilutive effect (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 30, | November 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Options to purchase common stock | 609 | 1,189 | 893 | 1,312 | |||||||||||||
Restricted stock units | 627 | 320 | 745 | 230 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of November 30, 2014 and February 28, 2014, are summarized as follows (in thousands): | ||||||||||||||||||||||||||||||||
November 30, 2014 | February 28, 2014 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||
Money market accounts | $ | 7,564 | $ | — | $ | — | $ | 7,564 | $ | 11,905 | $ | — | $ | — | $ | 11,905 | |||||||||||||||||
Money market funds | 5,908 | — | — | 5,908 | 19,221 | — | — | 19,221 | |||||||||||||||||||||||||
Commercial paper | — | — | — | — | — | 8,297 | — | 8,297 | |||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||
Commercial paper | — | 650 | — | 650 | — | 10,491 | — | 10,491 | |||||||||||||||||||||||||
Corporate debt securities | — | 4,120 | — | 4,120 | — | 2,378 | — | 2,378 | |||||||||||||||||||||||||
Agency bonds | — | — | — | — | — | 1,505 | — | 1,505 | |||||||||||||||||||||||||
Certificate of deposit | 501 | — | — | 501 | — | — | — | — | |||||||||||||||||||||||||
Other current assets: | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | — | — | — | — | 60 | — | 60 | |||||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||||
Corporate debt securities | — | 672 | — | 672 | — | 3,151 | — | 3,151 | |||||||||||||||||||||||||
Asset-backed securities | — | 198 | — | 198 | — | 250 | — | 250 | |||||||||||||||||||||||||
Common trust funds | — | 15 | — | 15 | — | 116 | — | 116 | |||||||||||||||||||||||||
Insurance company contracts | — | 15 | — | 15 | — | 16 | — | 16 | |||||||||||||||||||||||||
U.S. government securities | — | — | — | — | 5,008 | — | — | 5,008 | |||||||||||||||||||||||||
Other noncurrent assets: | |||||||||||||||||||||||||||||||||
Certificate of deposit | 16 | — | — | 16 | 16 | — | — | 16 | |||||||||||||||||||||||||
Total assets | $ | 13,989 | $ | 5,670 | $ | — | $ | 19,659 | $ | 36,150 | $ | 26,264 | $ | — | $ | 62,414 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Acquisition-related obligations: | |||||||||||||||||||||||||||||||||
Earn-out liability (see note 3) | — | — | 6,800 | 6,800 | — | — | — | — | |||||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | 364 | — | 364 | — | (163 | ) | — | (163 | ) | |||||||||||||||||||||||
Total liabilities | $ | — | $ | 364 | $ | 6,800 | $ | 7,164 | $ | — | (163 | ) | — | (163 | ) | ||||||||||||||||||
Summary of Foreign Exchange Contracts Details | The tables below present the notional amounts (at the contract exchange rates), the weighted-average contractual foreign currency exchange rates, and the estimated fair value of contracts outstanding as of November 30, 2014 and February 28, 2014 (in USD thousands, except average contract rate): | ||||||||||||||||||||||||||||||||
November 30, 2014 | February 28, 2014 | ||||||||||||||||||||||||||||||||
Notional | Average | Estimated | Notional | Average | Estimated | ||||||||||||||||||||||||||||
Sell | Contract | Fair | Sell | Contract | Fair | ||||||||||||||||||||||||||||
(Buy) | Rate | Value | (Buy) | Rate | Value | ||||||||||||||||||||||||||||
Foreign currency forward exchange contracts: | |||||||||||||||||||||||||||||||||
Euro | $ | 65 | 1.3 | $ | 11 | $ | 7,401 | 1.4 | $ | (256 | ) | ||||||||||||||||||||||
Malaysian Ringgit | (2,763 | ) | 3.3 | (101 | ) | (2,146 | ) | 3.2 | (59 | ) | |||||||||||||||||||||||
British Pound | (5,769 | ) | 1.6 | (274 | ) | (4,317 | ) | 1.6 | 212 | ||||||||||||||||||||||||
Total | $ | (8,467 | ) | $ | (364 | ) | $ | 938 | $ | (103 | ) | ||||||||||||||||||||||
Significant_Customer_Informati1
Significant Customer Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||||||||||
Summary of Customers Accounting 10% or More of Revenue or Accounts Receivable | Customers accounting for 10% or more of revenue or accounts receivable were as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
November 30, 2014 | November 30, 2013 | November 30, 2014 | November 30, 2013 | ||||||||||||||||||||||||||||||
Percentage | Percentage | Percentage | Percentage | Percentage | Percentage | Percentage | Percentage | ||||||||||||||||||||||||||
of Total | of | of Total | of | of Total | of | of Total | of | ||||||||||||||||||||||||||
Revenue | Accounts | Revenue | Accounts | Revenue | Accounts | Revenue | Accounts | ||||||||||||||||||||||||||
Receivable | Receivable | Receivable | Receivable | ||||||||||||||||||||||||||||||
Customer A | * | 10 | % | * | * | * | 10 | % | * | * | |||||||||||||||||||||||
Customer B | * | * | * | 16 | % | * | * | * | 16 | % | |||||||||||||||||||||||
* | Indicates less than 10% | ||||||||||||||||||||||||||||||||
Summary of Revenue by Geographic Region | Revenue by geographic region, based on the billing address of the customer, was as follows (in thousands): | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
November 30, | November 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Revenue by geographic region: | |||||||||||||||||||||||||||||||||
Americas | $ | 15,770 | $ | 14,600 | $ | 45,895 | $ | 42,146 | |||||||||||||||||||||||||
Europe | 4,140 | 3,476 | 12,603 | 9,157 | |||||||||||||||||||||||||||||
Asia | 240 | 184 | 664 | 568 | |||||||||||||||||||||||||||||
Total | $ | 20,150 | $ | 18,260 | $ | 59,162 | $ | 51,871 | |||||||||||||||||||||||||
Country Specific | |||||||||||||||||||||||||||||||||
Summary of Revenue by Geographic Region | Countries accounting for 10% or more of revenue were as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
November 30, | November 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Revenue by country: | |||||||||||||||||||||||||||||||||
United States | 76.5 | % | 74.4 | % | 74.3 | % | 75.6 | % | |||||||||||||||||||||||||
United Kingdom | 13.7 | * | 12.8 | * | |||||||||||||||||||||||||||||
* | Indicates less than 10% |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 6 Months Ended | |||
Jun. 04, 2014 | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Feb. 28, 2014 | |
Business Acquisition [Line Items] | |||||||
Business acquisition, contingent consideration | $9,960,000 | $9,960,000 | $9,960,000 | $5,473,000 | |||
Acquisition expenses | 44,000 | 340,000 | 960,000 | 1,131,000 | |||
Estimated useful life of identifiable intangible assets | 5 years | 5 years | |||||
Amortization of acquired intangible assets | 685,000 | 369,000 | 1,651,000 | 394,000 | |||
Developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 7,700,000 | 7,700,000 | 7,700,000 | 7,700,000 | |||
Customer relationship | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 7,800,000 | 7,800,000 | 7,800,000 | 7,800,000 | |||
SERUS | |||||||
Business Acquisition [Line Items] | |||||||
Initial purchase consideration for Serus | 24,821,000 | ||||||
Earn-out period | 12 months | ||||||
Probability weighted-payout discount rate | 10.00% | ||||||
Acquisition expenses | 960,000 | ||||||
Identifiable intangible assets | 15,500,000 | ||||||
Amortization of acquired intangible assets | 1,500,000 | 1,500,000 | |||||
Revenues earned since acquisition date | 2,300,000 | ||||||
SERUS | Cash Holdback Liabilities | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, contingent consideration | 1,850,000 | 1,850,000 | 1,850,000 | 1,850,000 | |||
SERUS | Earn-out liability | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, contingent consideration | 6,600,000 | 6,800,000 | 6,800,000 | 6,800,000 | |||
SERUS | Earn-out liability | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Estimated fair value of earn-out liability | $7,500,000 | $7,500,000 | $7,500,000 |
Components_of_Purchase_Conside
Components of Purchase Consideration (Detail) (USD $) | 9 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Jun. 04, 2014 | Feb. 28, 2014 |
Business Acquisition [Line Items] | ||||
Shares of the Company's common stock | $3,966 | $8,849 | ||
Business acquisition, contingent consideration | 9,960 | 5,473 | ||
SERUS | ||||
Business Acquisition [Line Items] | ||||
Cash payment | 12,405 | |||
Shares of the Company's common stock | 3,966 | |||
Total | 24,821 | |||
SERUS | Cash Holdback Liabilities | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, contingent consideration | 1,850 | 1,850 | ||
SERUS | Earn-out liability | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, contingent consideration | $6,800 | $6,600 |
Components_of_Purchase_Conside1
Components of Purchase Consideration (Parenthetical) (Detail) (SERUS) | 0 Months Ended |
Jun. 04, 2014 | |
SERUS | |
Business Acquisition [Line Items] | |
Common stock issued, shares | 238,194 |
Summary_of_Estimated_Fair_Valu
Summary of Estimated Fair Values of Assets and Liabilities Assumed at Date of Acquisition Based on Purchase Price Allocation (Detail) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 | Jun. 04, 2014 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Goodwill | $35,992 | $22,556 | |
SERUS | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 82 | ||
Accounts receivable | 846 | ||
Prepaid expenses and other current assets | 136 | ||
Property and equipment | 172 | ||
Identifiable intangible assets | 15,500 | ||
Other assets | 66 | ||
Total identifiable assets acquired | 16,802 | ||
Accounts payable and accrued liabilities | -1,646 | ||
Deferred revenue | -3,457 | ||
Capital lease obligations and notes payable | -64 | ||
Other noncurrent liabilities | -22 | ||
Total liabilities assumed | -5,189 | ||
Net identifiable assets acquired | 11,613 | ||
Goodwill | 13,208 | 13,208 | |
Total consideration | $24,821 |
Adjusted_Unaudited_Pro_Forma_F
Adjusted Unaudited Pro Forma Financial Results (Detail) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma revenue | $60,957 | $54,951 |
Pro forma net loss | ($24,325) | ($24,669) |
Basic and diluted | ($0.92) | ($0.94) |
Schedule_of_Cash_Cash_Equivale
Schedule of Cash, Cash Equivalents and Investments (Detail) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | $6,170 | |||
Cash and cash equivalents | 18,900 | 42,723 | 12,381 | 20,262 |
Estimated Fair Market Value | 6,171 | |||
Short-term investments | Agency bonds | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 1,504 | |||
Gross Unrealized Gains | 1 | |||
Estimated Fair Market Value | 1,505 | |||
Short-term investments | Commercial paper | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 650 | 10,492 | ||
Gross Unrealized Losses | -1 | |||
Estimated Fair Market Value | 650 | 10,491 | ||
Short-term investments | Corporate debt securities | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 4,118 | 2,378 | ||
Gross Unrealized Gains | 3 | 1 | ||
Gross Unrealized Losses | -1 | -1 | ||
Estimated Fair Market Value | 4,120 | 2,378 | ||
Short-term investments | Certificate of deposit | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 501 | |||
Estimated Fair Market Value | 501 | |||
Long-term investments | Corporate debt securities | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 672 | 3,154 | ||
Gross Unrealized Gains | 3 | |||
Gross Unrealized Losses | -6 | |||
Estimated Fair Market Value | 672 | 3,151 | ||
Long-term investments | Asset-backed securities | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 198 | 250 | ||
Estimated Fair Market Value | 198 | 250 | ||
Long-term investments | U.S. government securities | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 5,005 | |||
Gross Unrealized Gains | 3 | |||
Estimated Fair Market Value | 5,008 | |||
Long-term investments | Common trust funds | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 15 | 120 | ||
Gross Unrealized Losses | -4 | |||
Estimated Fair Market Value | 15 | 116 | ||
Long-term investments | Insurance company contracts | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 15 | 16 | ||
Estimated Fair Market Value | 15 | 16 | ||
Cash | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Cash and cash equivalents | 5,428 | 3,300 | ||
Estimated Fair Market Value | 5,428 | 3,300 | ||
Cash equivalents | Money market accounts | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Cash and cash equivalents | 7,564 | 11,905 | ||
Estimated Fair Market Value | 7,564 | 11,905 | ||
Cash equivalents | Money market funds | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Cash and cash equivalents | 5,908 | 19,221 | ||
Estimated Fair Market Value | 5,908 | 19,221 | ||
Cash equivalents | Commercial paper | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Cash and cash equivalents | 8,296 | |||
Gross Unrealized Gains | 1 | |||
Estimated Fair Market Value | 8,297 | |||
Total cash, cash equivalents, and investments | ||||
Cash Cash Equivalents And Available For Sale Investments [Line Items] | ||||
Amortized Cost | 25,069 | 65,641 | ||
Gross Unrealized Gains | 3 | 9 | ||
Gross Unrealized Losses | -1 | -12 | ||
Estimated Fair Market Value | $25,071 | $65,638 |
Schedule_of_AvailableForSale_I
Schedule of Available-For-Sale Investments by Contractual Maturity Date (Detail) (USD $) | Nov. 30, 2014 |
In Thousands, unless otherwise specified | |
Cash Cash Equivalents And Available For Sale Investments [Line Items] | |
Amortized Cost | $6,170 |
Estimated Fair Market Value | 6,171 |
Matures in one year or less | |
Cash Cash Equivalents And Available For Sale Investments [Line Items] | |
Amortized Cost | 5,269 |
Estimated Fair Market Value | 5,271 |
Matures after one year through two years | |
Cash Cash Equivalents And Available For Sale Investments [Line Items] | |
Amortized Cost | 901 |
Estimated Fair Market Value | $900 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Detail) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 | Jun. 04, 2014 |
In Thousands, unless otherwise specified | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | $35,992 | $22,556 | |
Net intangible assets | 23,436 | 11,395 | |
ICON | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | 22,784 | 22,556 | |
SERUS | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | 13,208 | 13,208 | |
Acquired Technology | |||
Goodwill And Intangible Assets [Line Items] | |||
Intangible assets | 14,700 | 7,000 | |
Less: accumulated amortization | -2,624 | -817 | |
Net intangible assets | 12,076 | 6,183 | |
Customer relationship | |||
Goodwill And Intangible Assets [Line Items] | |||
Intangible assets | 13,700 | 5,900 | |
Less: accumulated amortization | -2,340 | -688 | |
Net intangible assets | $11,360 | $5,212 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2014 | Feb. 28, 2014 | Jun. 04, 2014 |
Goodwill [Line Items] | |||
Goodwill | $22,556 | ||
Goodwill | 35,992 | 22,556 | |
SERUS | |||
Goodwill [Line Items] | |||
Goodwill | 13,208 | ||
Acquisition | 13,208 | ||
Goodwill | 13,208 | 13,208 | |
ICON | |||
Goodwill [Line Items] | |||
Goodwill | 22,556 | ||
Adjustments to goodwill | 228 | ||
Goodwill | $22,784 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 04, 2014 | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 |
Goodwill And Intangible Assets [Line Items] | ||||||
Estimated useful life of intangible assets | 5 years | 5 years | ||||
Amortization of acquired intangible assets | $685 | $369 | $1,651 | $394 | ||
Developed technology | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Intangible assets | 7,700 | 7,700 | 7,700 | 7,700 | ||
Customer relationship | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Intangible assets | 7,800 | 7,800 | 7,800 | 7,800 | ||
SERUS | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Intangible assets | 15,500 | |||||
Amortization of acquired intangible assets | 1,500 | 1,500 | ||||
Total amortization of intangible assets | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Amortization of acquired intangible assets | 1,400 | 3,500 | ||||
Cost of Revenue | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Amortization of acquired intangible assets | 700 | 1,800 | ||||
Operating Expenses | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Amortization of acquired intangible assets | $700 | $1,700 |
Expected_Future_Annual_Amortiz
Expected Future Annual Amortization Expense Related to Acquired Intangible Assets (Detail) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2015 (remaining three months) | $1,420 | |
2016 | 5,680 | |
2017 | 5,680 | |
2018 | 5,680 | |
2019 onwards | 4,976 | |
Net intangible assets | $23,436 | $11,395 |
Components_of_Consolidated_Bal
Components of Consolidated Balance Sheet (Detail) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other current assets: | ||
Prepaid software license fees, hardware and software maintenance | $1,503 | $1,215 |
Restricted cash held in escrow (see note 10) | 1,424 | 0 |
Other prepaid expenses and other current assets | 1,728 | 3,165 |
Prepaid expenses and other current assets | 4,655 | 4,380 |
Property and equipment, net: | ||
Property and equipment | 21,287 | 19,755 |
Less accumulated depreciation and amortization | -17,846 | -16,324 |
Property and equipment net | 3,441 | 3,431 |
Accounts payable and accrued liabilities: | ||
Accrued compensation costs | 7,185 | 7,494 |
Trade accounts payable | 3,502 | 3,242 |
Accrued taxes and other | 1,576 | 1,630 |
Total accounts payable and accrued liabilities | 12,263 | 12,366 |
Software | ||
Property and equipment, net: | ||
Property and equipment | 9,635 | 9,461 |
Computer Equipment | ||
Property and equipment, net: | ||
Property and equipment | 10,687 | 9,569 |
Furniture and Fixtures | ||
Property and equipment, net: | ||
Property and equipment | 419 | 214 |
Leasehold Improvements | ||
Property and equipment, net: | ||
Property and equipment | $546 | $511 |
Consolidated_Balance_Sheet_Com2
Consolidated Balance Sheet Components - Additional Information (Detail) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 |
In Millions, unless otherwise specified | ||
Property and equipment financed through capital leases and notes payable | ||
Balance Sheet Components [Line Items] | ||
Capital leased assets | $4.40 | $3.40 |
Accumulated depreciation and amortization | 2 | 1 |
Software Licenses, Maintenance, and Insurance Premiums | ||
Balance Sheet Components [Line Items] | ||
Capital leased assets | 4.7 | 5.1 |
Accumulated amortization | $1.30 | $1.20 |
Notes_Payable_and_Capital_Leas2
Notes Payable and Capital Lease Obligations - Additional Information (Detail) | 9 Months Ended |
Nov. 30, 2014 | |
Lease Commitments And Notes Payable [Line Items] | |
Minimum interest rates | 0.00% |
Maximum interest rates | 13.13% |
Minimum | |
Lease Commitments And Notes Payable [Line Items] | |
Term of notes | Nine months |
Maximum | |
Lease Commitments And Notes Payable [Line Items] | |
Term of notes | Three years |
Future_Minimum_Payments_Due_un
Future Minimum Payments Due under Capital Lease Obligations (Detail) (USD $) | Nov. 30, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Capitalization, Long-term Debt [Line Items] | |
2015 (remaining 3 months) | $533 |
2016 | 1,720 |
2017 | 499 |
2018 | 122 |
Total minimum payments | 2,874 |
Less: portion representing interest | -181 |
Total principal portion of minimum payments | 2,693 |
Less: current portion | -1,715 |
Total principal portion of minimum payments, net of current portion | 978 |
Total principal portion of minimum payments | $2,693 |
Amounts_Due_under_Notes_Payabl
Amounts Due under Notes Payable (Detail) (USD $) | Nov. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | |
2015 (remaining 3 months) | $617 |
2016 | 2,055 |
2017 | 959 |
2018 | 148 |
Total | 3,779 |
Less: current portion | -2,200 |
Total notes payable, net of current portion | $1,579 |
Bank_Credit_Facilities_Additio
Bank Credit Facilities - Additional Information (Detail) | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||
Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2014 | Oct. 07, 2013 | Nov. 30, 2014 | Oct. 07, 2013 | Oct. 07, 2013 | Oct. 07, 2013 | Oct. 07, 2013 | |
USD ($) | USD ($) | Bank overdraft | Bank overdraft | Revolving Line of Credit | Revolving Line of Credit | Revolving Line of Credit | Revolving Line of Credit | Revolving Line of Credit | Revolving Line of Credit | |
USD ($) | EUR (€) | USD ($) | USD ($) | Prime Rate | Prime Rate | Prime Rate | ||||
Minimum | Maximum | |||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | $20,000,000 | |||||||||
Available borrowing capacity | 15,600,000 | |||||||||
Basis spread on variable rate | -0.25% | 0.25% | ||||||||
Interest floor rate | 3.25% | |||||||||
Bank overdraft facility amount outstanding | 0 | 0 | ||||||||
Revolving loan facility effective period | 2 years | |||||||||
Proceeds from bank credit facilities | 4,171,000 | 2,518,000 | ||||||||
Repayments of bank credit facilities | 4,171,000 | 3,346,000 | ||||||||
Bank overdraft facility remaining balance | $700,000 | € 500,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Seagate LLC, USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | Feb. 28, 2014 |
Customer | |||||
Seagate LLC | |||||
Related Party Transaction [Line Items] | |||||
Number of customer payment received | 1 | ||||
Revenue earned | $0.70 | $0.90 | $2.10 | $2.50 | |
Related party transactions payments received | 2.5 | 1.6 | 2.5 | 2.8 | |
Outstanding receivables | $0.10 | $0.10 | $0.10 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||
Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | Feb. 28, 2014 | Sep. 30, 2014 | Nov. 30, 2014 | Sep. 30, 2014 | Nov. 30, 2014 | Jun. 04, 2014 | Nov. 30, 2014 | Nov. 30, 2014 | Jun. 04, 2014 | Nov. 30, 2014 | Feb. 28, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ICON | ICON | ICON | SERUS | SERUS | SERUS | SERUS | SERUS | Operating Lease | Operating Lease | |
USD ($) | USD ($) | EUR (€) | Earn-out liability | Earn-out liability | Earn-out liability | Cash Holdback Liabilities | Cash Holdback Liabilities | USD ($) | USD ($) | ||||||
USD ($) | USD ($) | Maximum | USD ($) | USD ($) | |||||||||||
USD ($) | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Business acquisition, contingent consideration | $9,960,000 | $9,960,000 | $5,473,000 | $5,400,000 | € 4,000,000 | $6,800,000 | $6,600,000 | $1,850,000 | $1,850,000 | ||||||
Icon shareholders payment released | 4,000,000 | ||||||||||||||
Remaining balance to Icon shareholders | 1,400,000 | ||||||||||||||
Estimated fair value of earn-out liability | 7,500,000 | ||||||||||||||
Rent expense | 800,000 | 700,000 | 2,300,000 | 2,000,000 | |||||||||||
Noncancelable operating leases expiration date | Jan-20 | ||||||||||||||
Security deposits | $500,000 | $500,000 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Noncancelable Operating Leases (Detail) (USD $) | Nov. 30, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 (remaining 3 months) | $714 |
2016 | 2,645 |
2017 | 2,375 |
2018 | 2,245 |
2019 | 1,372 |
2020 | 694 |
Total minimum lease payments | $10,045 |
Recovered_Sheet1
Interest and Other Income (Expense), Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Interest Expense [Line Items] | ||||
Interest income | $34 | $4 | $100 | $85 |
Interest expense | -116 | -77 | -293 | -145 |
Bank financing fees | -30 | -34 | -91 | -35 |
Foreign exchange gains (losses)-realized and unrealized, net | -27 | -181 | 2 | -224 |
Gains (losses) from foreign currency contracts-realized and unrealized, net | -449 | -174 | -220 | -71 |
Other, net | 12 | 1 | -62 | 11 |
Interest and other expense, net | ($576) | ($461) | ($564) | ($379) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | Feb. 28, 2014 | |
Income Tax Contingency [Line Items] | |||||
Provision for income taxes | $65,000 | ($209,000) | $142,000 | ($135,000) | |
Deferred tax asset associated with Net operating loss carryforwards | 98,000,000 | ||||
Undistributed earnings of the Company's foreign subsidiaries | 1,400,000 | 1,400,000 | |||
Gross unrecognized tax benefits | 8,300,000 | 8,300,000 | 8,400,000 | ||
Gross unrecognized tax benefits that would impact effective tax rate | 600,000 | 600,000 | 600,000 | ||
Gross interest and penalties accrued | 100,000 | 100,000 | 100,000 | ||
Federal | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | 340,900,000 | ||||
Net operating loss carryforwards, expiration year | 2023 | ||||
State | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | $69,200,000 | ||||
Net operating loss carryforwards, expiration year | 2015 | ||||
U.S. Federal And State Jurisdictions | Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Open tax years subject to examination | 2000 | ||||
Statutes of limitations in foreign jurisdictions | 4 years | ||||
U.S. Federal And State Jurisdictions | Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Open tax years subject to examination | 2014 | ||||
Statutes of limitations in foreign jurisdictions | 7 years |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | Jul. 31, 2011 | Feb. 28, 2013 | Jul. 31, 2013 | Feb. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of common stock reserved for issuance | 6,744,706 | 6,744,706 | ||||||
Share-based Compensation granted for period | 10 years | |||||||
Shareholder ownership percentage level for ISO grant exercise price | 10.00% | 10.00% | ||||||
Percentage of options vest on one-year anniversary | 25.00% | |||||||
Exercisable for period | 10 years | |||||||
Anniversary of option grant date, additional years | 3 years | |||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Options granted | 376,366 | |||||||
Stock options, unrecognized compensation expense | $6,700,000 | $6,700,000 | ||||||
Stock-based compensation | 7,128,000 | 4,009,000 | ||||||
Weighted average grant date fair value for granted stock options | $6.13 | $19.40 | $14.90 | $18.60 | ||||
Total intrinsic value of employee stock options exercised | 100,000 | 2,400,000 | 1,300,000 | 11,200,000 | ||||
Aggregate intrinsic value for fully vested options | 2,700,000 | 2,700,000 | 18,000,000 | |||||
Number of unvested options | 1,111,085 | 1,111,085 | ||||||
Employee service share based compensation unrecognized compensation costs on non vested award weighted average period of recognition | 2 years 4 months 6 days | |||||||
Allocated Shares Based Compensation | 2,314,000 | 1,446,000 | 7,128,000 | 4,009,000 | ||||
Compensation cost capitalized | 0 | 0 | 0 | 0 | ||||
Dividend Declared | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected dividend yield | 0.00% | |||||||
Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Estimated fair value of common stock shares, percentage | 110.00% | |||||||
Performance Based Grants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted | 749,464 | |||||||
Stock options, unrecognized compensation expense | 300,000 | 300,000 | ||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Estimated fair value of common stock shares, percentage | 100.00% | |||||||
Employee Stock Option | Performance Based Grants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Remaining vesting period | 3 years | |||||||
Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted | 1,548,284 | |||||||
Unrecognized compensation cost | 1,500,000 | 1,500,000 | ||||||
Weighted average grant date fair value | $5.65 | $22.41 | $11.58 | $20.87 | ||||
Intrinsic value of outstanding RSUs | 12,700,000 | 12,700,000 | ||||||
Allocated Shares Based Compensation | 1,400,000 | 300,000 | 4,600,000 | 700,000 | ||||
Unrecognized compensation costs on restricted stock units weighted average period of recognition | 2 years 11 months 23 days | |||||||
Restricted stock units | Performance Based Grants | Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted | 233,332 | 125,250 | 356,500 | |||||
Stock-based compensation | 300,000 | 900,000 | ||||||
Unrecognized compensation cost | 1,200,000 | 1,200,000 | ||||||
Restricted stock units | Performance Based Grants | Employee modification plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Remaining vesting period | 9 months | |||||||
Stock-based compensation | 100,000 | 1,000,000 | ||||||
Unrecognized compensation cost | $300,000 | $300,000 | ||||||
Restricted stock units | Performance Based Grants | Minimum | Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Remaining vesting period | 9 months | |||||||
Restricted stock units | Performance Based Grants | Maximum | Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Remaining vesting period | 2 years 9 months |
Schedule_of_Estimated_Grant_Da
Schedule of Estimated Grant Date Fair Values Employee Stock Options Assumptions (Detail) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ||||
Expected term (in years) | 6 years 15 days | 6 years 29 days | 6 years 26 days | 5 years 11 months 9 days |
Expected stock price volatility | 50.07% | 50.02% | ||
Expected stock price volatility, minimum | 50.07% | 50.02% | ||
Expected stock price volatility, maximum | 50.96% | 51.76% | ||
Risk-free interest rate | 1.78% | |||
Risk-free interest rate, minimum | 1.80% | 1.80% | 0.73% | |
Risk-free interest rate, maximum | 1.82% | 1.94% | 1.81% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock_Options_Activity_Detail
Stock Options Activity (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
Nov. 30, 2014 | Feb. 28, 2014 | |
Number of shares | ||
Balance of options outstanding, beginning balance | 2,241,784 | |
Options granted | 376,366 | |
Options exercised | -143,835 | |
Options canceled and forfeited | -195,949 | |
Balance of options outstanding, ending balance | 2,278,366 | 2,241,784 |
Balance of options expected to vest | 2,197,617 | 2,179,660 |
Balance of options exercisable | 1,167,281 | 841,902 |
Weighted average exercise price | ||
Balance of options outstanding, beginning balance | $9.86 | |
Options granted | $14.90 | |
Options exercised | $3.89 | |
Options canceled and forfeited | $16.84 | |
Balance of options outstanding, ending balance | $10.47 | $9.86 |
Balance of options expected to vest | $10.32 | $9.71 |
Balance of options exercisable | $8.03 | $6.38 |
Weighted average remaining term | ||
Balance of options outstanding | 7 years 4 months 17 days | 7 years 11 months 19 days |
Balance of options expected to vest | 7 years 4 months 2 days | 7 years 11 months 12 days |
Balance of options exercisable | 6 years 9 months 7 days | 7 years 3 months 15 days |
Restricted_Stock_Units_Activit
Restricted Stock Units Activity (Detail) (Restricted stock units, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | Feb. 28, 2014 | |
Restricted stock units | |||||
Number of shares | |||||
Balance of awards outstanding, beginning balance | 568,195 | ||||
Awards granted | 1,548,284 | ||||
Awards released | -159,757 | ||||
Awards canceled and forfeited | -65,184 | ||||
Balance of awards outstanding, ending balance | 1,891,538 | 1,891,538 | 568,195 | ||
Balance of awards expected to vest | 1,665,013 | 1,665,013 | 520,774 | ||
Weighted average grant date fair value | |||||
Balance of awards outstanding, beginning balance | $19.83 | ||||
Awards granted | $5.65 | $22.41 | $11.58 | $20.87 | |
Awards released | $12.55 | ||||
Awards canceled and forfeited | $18.36 | ||||
Balance of awards outstanding, ending balance | $13.27 | $13.27 | $19.83 | ||
Balance of awards expected to vest | $13.27 | $13.27 | $19.83 | ||
Weighted average remaining term | |||||
Balance of awards outstanding, beginning balance | 1 year 8 months 9 days | 2 years 1 month 10 days | |||
Balance of awards expected to vest | 2 years 11 months 23 days | 2 years 1 month 10 days |
Functional_Classification_of_S
Functional Classification of Share-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Shares Based Compensation | $2,314 | $1,446 | $7,128 | $4,009 |
Cost of Revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Shares Based Compensation | 649 | 403 | 2,075 | 1,132 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Shares Based Compensation | 206 | 133 | 581 | 349 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Shares Based Compensation | 887 | 559 | 2,614 | 1,466 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Shares Based Compensation | $572 | $351 | $1,858 | $1,062 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Loss Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net loss | ($9,066) | ($7,382) | ($25,734) | ($18,699) |
Basic and diluted shares: | 29,253 | 26,545 | 29,065 | 26,061 |
Net loss per share: | ||||
Basic and diluted | ($0.31) | ($0.28) | ($0.89) | ($0.72) |
Outstanding_Shares_Options_and
Outstanding Shares, Options and Warrants Excluded from Computation of Diluted Net Income (Loss) Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Option to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Earnings per share excluding anti-dilutive securities | 609 | 1,189 | 893 | 1,312 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Earnings per share excluding anti-dilutive securities | 627 | 320 | 745 | 230 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | $19,659 | $62,414 |
Fair value liabilities | -7,164 | 163 |
Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 501 | |
Cash equivalents | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 7,564 | 11,905 |
Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 5,908 | 19,221 |
Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 8,297 | |
Long-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 672 | 3,151 |
Long-term investments | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 198 | 250 |
Long-term investments | Common trust funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 15 | 116 |
Long-term investments | Insurance company contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 15 | 16 |
Long-term investments | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 5,008 | |
Other current assets | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 60 | |
Other noncurrent assets | Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 16 | 16 |
Business Combination Contingent Consideration Liability Current | Earn-out liability | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value liabilities | 6,800 | |
Other current liabilities | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value liabilities | -364 | 163 |
Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 650 | 10,491 |
Short-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 4,120 | 2,378 |
Agency bonds | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 1,505 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 13,989 | 36,150 |
Level 1 | Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 501 | |
Level 1 | Cash equivalents | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 7,564 | 11,905 |
Level 1 | Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 5,908 | 19,221 |
Level 1 | Long-term investments | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 5,008 | |
Level 1 | Other noncurrent assets | Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 16 | 16 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 5,670 | 26,264 |
Fair value liabilities | -364 | 163 |
Level 2 | Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 8,297 | |
Level 2 | Long-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 672 | 3,151 |
Level 2 | Long-term investments | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 198 | 250 |
Level 2 | Long-term investments | Common trust funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 15 | 116 |
Level 2 | Long-term investments | Insurance company contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 15 | 16 |
Level 2 | Other current assets | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 60 | |
Level 2 | Other current liabilities | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value liabilities | -364 | 163 |
Level 2 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 650 | 10,491 |
Level 2 | Short-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 4,120 | 2,378 |
Level 2 | Agency bonds | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value assets | 1,505 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value liabilities | -6,800 | |
Level 3 | Business Combination Contingent Consideration Liability Current | Earn-out liability | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value liabilities | $6,800 |
Summary_of_Foreign_Exchange_Co
Summary of Foreign Exchange Contracts Details (Detail) (USD $) | Nov. 30, 2014 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Notional Sell (Buy) | ($8,467) | $938 |
Estimated Fair Value | -364 | -103 |
Sell | Euro | ||
Derivative [Line Items] | ||
Notional Sell (Buy) | 65 | 7,401 |
Average Contract Rate | 1.3 | 1.4 |
Estimated Fair Value | 11 | -256 |
Buy | Malaysian Ringgit | ||
Derivative [Line Items] | ||
Notional Sell (Buy) | -2,763 | -2,146 |
Average Contract Rate | 3.3 | 3.2 |
Estimated Fair Value | -101 | -59 |
Buy | British Pounds | ||
Derivative [Line Items] | ||
Notional Sell (Buy) | -5,769 | -4,317 |
Average Contract Rate | 1.6 | 1.6 |
Estimated Fair Value | ($274) | $212 |
Summary_of_Customers_Accountin
Summary of Customers Accounting 10% or More of Revenue or Accounts Receivable (Detail) | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | |||||
Accounts Receivable | Customer A | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | 10.00% | [1] | 10.00% | [1] | ||||
Accounts Receivable | Customer B | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | [1] | 16.00% | [1] | 16.00% | ||||
Revenue | Customer A | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | [1] | [1] | [1] | [1] | ||||
Revenue | Customer B | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | [1] | [1] | [1] | [1] | ||||
[1] | Indicates less than 10% |
Summary_of_Revenue_by_Geograph
Summary of Revenue by Geographic Region (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Revenue From External Customers Attributed To Foreign Countries By Geographic Area [Line Items] | ||||
Total revenue | $20,150 | $18,260 | $59,162 | $51,871 |
Americas | ||||
Revenue From External Customers Attributed To Foreign Countries By Geographic Area [Line Items] | ||||
Total revenue | 15,770 | 14,600 | 45,895 | 42,146 |
Europe | ||||
Revenue From External Customers Attributed To Foreign Countries By Geographic Area [Line Items] | ||||
Total revenue | 4,140 | 3,476 | 12,603 | 9,157 |
Asia | ||||
Revenue From External Customers Attributed To Foreign Countries By Geographic Area [Line Items] | ||||
Total revenue | $240 | $184 | $664 | $568 |
Summary_of_Revenue_by_Country_
Summary of Revenue by Country Wise (Detail) (Revenue) | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | |||
United States | ||||||
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | ||||||
Concentration risk percentage | 76.50% | 74.40% | 74.30% | 75.60% | ||
United Kingdom | ||||||
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | ||||||
Concentration risk percentage | 13.70% | [1] | 12.80% | [1] | ||
[1] | Indicates less than 10% |