DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 6 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Covisint Corp | ' |
Entity Central Index Key | '0001563699 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 38,241,403 |
CONDENSED_AND_CONSOLIDATED_BAL
CONDENSED AND CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash | $44,168 | $49,536 |
Accounts receivable, net | 19,712 | 21,838 |
Deferred tax asset, net | 888 | 1,017 |
Due from parent and affiliates | 2,885 | 2,813 |
Other current assets | 6,007 | 5,983 |
Total current assets | 73,660 | 81,187 |
PROPERTY AND EQUIPMENT, LESS ACCUMULATED DEPRECIATION AND AMORTIZATION | 5,446 | 4,751 |
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS, NET | 20,878 | 23,040 |
OTHER: | ' | ' |
Goodwill | 25,385 | 25,385 |
Deferred costs | 4,354 | 6,188 |
Deferred tax asset, net | 124 | 131 |
Other assets | 664 | 766 |
Total other assets | 30,527 | 32,470 |
TOTAL ASSETS | 130,511 | 141,448 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 6,288 | 3,893 |
Accrued commissions | 2,281 | 1,640 |
Deferred revenue | 14,254 | 16,606 |
Accrued expenses | 2,931 | 3,752 |
Total current liabilities | 25,754 | 25,891 |
DEFERRED REVENUE | 7,787 | 11,223 |
ACCRUED LIABILITIES | 59 | 56 |
DEFERRED TAX LIABILITY, NET | 2,730 | 2,668 |
Total liabilities | 36,330 | 39,838 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
Preferred stock, no par value - authorized 5,000,000 shares; none issued and outstanding | 0 | 0 |
Common stock, no par value - authorized 50,000,000 shares; issued and outstanding 38,079,889 (37,490,500 issued and outstanding as of March 31, 2014) | 0 | 0 |
Additional paid-in capital | 152,523 | 140,569 |
Retained deficit | -58,367 | -38,947 |
Accumulated other comprehensive income (loss) | 25 | -12 |
Total shareholders' equity | 94,181 | 101,610 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $130,511 | $141,448 |
CONDENSED_AND_CONSOLIDATED_BAL1
CONDENSED AND CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Sep. 30, 2014 | Mar. 31, 2014 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, no par value (in dollars per share) | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 38,079,889 | 37,490,500 |
Common stock, shares outstanding | 38,079,889 | 37,490,500 |
CONDENSED_COMBINED_AND_CONSOLI
CONDENSED, COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
REVENUE | $21,735 | $24,525 | $43,322 | $48,626 |
COST OF REVENUE | 14,326 | 14,126 | 29,592 | 27,436 |
GROSS PROFIT | 7,409 | 10,399 | 13,730 | 21,190 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Research and development | 2,583 | 3,244 | 5,699 | 5,829 |
Sales and marketing | 8,003 | 10,787 | 17,775 | 18,126 |
General and administrative | 4,111 | 9,080 | 9,657 | 14,614 |
Total operating expenses | 14,697 | 23,111 | 33,131 | 38,569 |
OPERATING LOSS | -7,288 | -12,712 | -19,401 | -17,379 |
Other Income | 17 | 0 | 39 | 0 |
LOSS BEFORE INCOME TAX PROVISION | -7,271 | -12,712 | -19,362 | -17,379 |
INCOME TAX PROVISION | 33 | 34 | 58 | 37 |
NET LOSS | -7,304 | -12,746 | -19,420 | -17,416 |
Basic and diluted loss per share (in dollars per share) | ($0.19) | ($0.42) | ($0.51) | ($0.58) |
OTHER COMPREHENSIVE INCOME, NET OF TAX | ' | ' | ' | ' |
Foreign currency translation adjustments | 30 | 21 | 37 | 20 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 30 | 21 | 37 | 20 |
COMPREHENSIVE LOSS | ($7,274) | ($12,725) | ($19,383) | ($17,396) |
CONDENSED_AND_CONSOLIDATED_STA
CONDENSED AND CONSOLIDATED STATEMENTS OF SHAREHOLDERbS EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning balance at Mar. 31, 2014 | $101,610 | $0 | $140,569 | ($38,947) | ($12) |
Beginning balance (in shares) at Mar. 31, 2014 | ' | 37,490,500 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -19,420 | ' | ' | -19,420 | ' |
Parent contribution of stock awards and related taxes, net | -25 | ' | -25 | ' | ' |
Covisint stock compensation (Note 5) | 3,747 | ' | 3,747 | ' | ' |
Covisint stock option exercise (in shares) | 589,000 | 589,389 | ' | ' | ' |
Covisint stock option exercise | 1,184 | ' | 1,184 | ' | ' |
Income taxes | 7,048 | ' | 7,048 | ' | ' |
Foreign currency translation | 37 | ' | ' | ' | 37 |
Ending balance at Sep. 30, 2014 | $94,181 | $0 | $152,523 | ($58,367) | $25 |
Ending balance (in shares) at Sep. 30, 2014 | ' | 38,079,889 | ' | ' | ' |
CONDENSED_COMBINED_AND_CONSOLI1
CONDENSED, COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ' | ' |
Net loss | ($19,420) | ($17,416) |
Adjustments to reconcile net income (loss) to cash provided by (used in) operations: | ' | ' |
Depreciation and amortization | 4,687 | 4,203 |
Deferred income taxes | -56 | 34 |
Stock award compensation | 3,874 | 10,506 |
Net change in assets and liabilities: | ' | ' |
Accounts receivable | 2,168 | 3,066 |
Other assets | 1,984 | 1,246 |
Accounts payable and accrued expenses | 2,207 | -211 |
Deferred revenue | -5,747 | -3,729 |
Net cash used in operating activities | -10,303 | -2,301 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ' | ' |
Property and equipment | -1,873 | -475 |
Capitalized software | -1,429 | -3,348 |
Net cash used in investing activities | -3,302 | -3,823 |
CASH FLOWS PROVIDED BY FINANCING ACTIVITES: | ' | ' |
Cash payments to parent company | 16,347 | 38,427 |
Cash payments to parent company | -9,247 | -31,634 |
Initial public offering costs | 0 | -608 |
Net proceeds from exercise of stock awards | 1,184 | ' |
Net cash provided by financing activities | 8,284 | 6,185 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -47 | 40 |
NET CHANGE IN CASH | -5,368 | 101 |
CASH AT BEGINNING OF PERIOD | 49,536 | 966 |
CASH AT END OF PERIOD | $44,168 | $1,067 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation - The accompanying unaudited condensed consolidated financial statements (“Financial Statements”) include the accounts of Covisint Corporation and subsidiaries, a Michigan corporation majority-owned by Compuware Corporation (“Compuware” or the “Parent”). | |
The Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), for interim financial information and with the instructions of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, contingencies and results of operations. While management has based its assumptions and estimates on the facts and circumstances existing at September 30, 2014, final amounts may differ from these estimates. In the opinion of the Company’s management, the accompanying Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. | |
The Company evaluated subsequent events through the date its financial statements were issued. | |
These financial statements should be read in conjunction with the Company's 2014 Annual Report on Form 10-K. Prior to April 1, 2014, Compuware expense allocations were recorded within general and administrative expense. Effective April 1, 2014, the allocations were replaced with actual expenses and these have been recorded in each respective income statement line item. Other than the change in the presentation of the expenses, there have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2014 Annual Report on Form 10-K. | |
Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this ASU provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company adopted this ASU effective April 1, 2014, and the adoption did not have a significant impact on the Company's financial statements. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," a new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that revenue should be recognized as goods or services are transferred to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for annual and interim periods beginning on or after December 15, 2016, and early adoption is not permitted. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in the ASU. The Company is currently evaluating the impact of adopting this guidance. |
CAPITALIZED_SOFTWARE_AND_OTHER
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS | 6 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||
The components of the Company’s intangible assets are as follows (in thousands): | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||||
Amount | Amortization | Amount | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||
Trademarks(1) | $358 | $358 | ||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||
Capitalized software(2) | $50,418 | ($30,504 | ) | $19,914 | ||||||||||||||||
Customer relationship agreements(3) | 4,715 | (4,109 | ) | 606 | ||||||||||||||||
Trademarks(4) | 340 | (340 | ) | — | ||||||||||||||||
Total amortizing intangible assets | $55,473 | ($34,953 | ) | $20,520 | ||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||||
Amount | Amortization | Amount | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||
Trademarks(1) | $358 | $358 | ||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||
Capitalized software(2) | $48,989 | ($27,067 | ) | $21,922 | ||||||||||||||||
Customer relationship agreements(3) | 4,715 | (3,955 | ) | 760 | ||||||||||||||||
Trademarks(4) | 340 | (340 | ) | — | ||||||||||||||||
Total amortizing intangible assets | $54,044 | ($31,362 | ) | $22,682 | ||||||||||||||||
_____________________________________________________ | ||||||||||||||||||||
-1 | The Covisint trademarks were acquired by Compuware in an acquisition in March 2004 and contributed to Covisint by Compuware effective January 1, 2013. These trademarks are deemed to have an indefinite life and therefore are not being amortized. | |||||||||||||||||||
-2 | Amortization of capitalized software is included in “cost of revenue” in the condensed consolidated statements of comprehensive loss. Capitalized software is generally amortized over five years. | |||||||||||||||||||
-3 | Amortization of customer relationship agreements is included in “sales and marketing” in the condensed consolidated statements of comprehensive loss. Customer relationship agreements were acquired as part of acquisitions and are being amortized over periods up to six years. | |||||||||||||||||||
-4 | Amortization of trademarks is included in “general and administrative” in the condensed consolidated statements of comprehensive loss. Trademarks were acquired as part of acquisitions and are being amortized over three years. | |||||||||||||||||||
Amortization expense of intangible assets was $1.8 million and $1.8 million for the three months ended September 30, 2014 and 2013, respectively, and $3.6 million and $3.5 million for the six months ended September 30, 2014 and 2013, respectively. Estimated future amortization expense, based on identified intangible assets at September 30, 2014, is expected to be as follows (in thousands): | ||||||||||||||||||||
At September 30, 2014 for the Year Ending March 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Capitalized software | $3,441 | $6,357 | $5,407 | $3,369 | $1,064 | |||||||||||||||
Customer relationships | 154 | 308 | 144 | |||||||||||||||||
Total | $3,595 | $6,665 | $5,551 | $3,369 | $1,064 | |||||||||||||||
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||||
EARNINGS PER COMMON SHARE | ||||||||||||||||
Basic earnings per common share (“EPS”) is computed by dividing earnings available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS assumes the issuance of common stock for all potentially dilutive equivalent shares outstanding using the treasury method. | ||||||||||||||||
EPS data were computed as follows (in thousands, except for per share data): | ||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic loss per share: | ||||||||||||||||
Numerator: Net loss | ($7,304 | ) | ($12,746 | ) | ($19,420 | ) | ($17,416 | ) | ||||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding | 37,972 | 30,403 | 37,730 | 30,204 | ||||||||||||
Basic loss per share | ($0.19 | ) | ($0.42 | ) | ($0.51 | ) | ($0.58 | ) | ||||||||
Diluted loss per share: | ||||||||||||||||
Numerator: Net loss | ($7,304 | ) | ($12,746 | ) | ($19,420 | ) | ($17,416 | ) | ||||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding | 37,972 | 30,403 | 37,730 | 30,204 | ||||||||||||
Dilutive effect of stock awards | — | — | — | — | ||||||||||||
Total shares | 37,972 | 30,403 | 37,730 | 30,204 | ||||||||||||
Diluted loss per share | ($0.19 | ) | ($0.42 | ) | ($0.51 | ) | ($0.58 | ) | ||||||||
Stock awards to purchase approximately 4,413,000 and 4,326,000 shares for the three months ended September 30, 2014 and 2013, respectively, and 4,472,000 and 4,299,000 shares for the six months ended September 30, 2014 and 2013, respectively, were excluded from the diluted EPS calculation because they were anti-dilutive. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
Contractual Obligations | |
The Company entered into standalone operating lease agreements for its Shanghai, China and Detroit locations in the first quarter of our fiscal year 2015. The Shanghai lease expires on April 30, 2017 and does not contain any purchase obligations associated with the lease. The total future minimum lease obligation of the Shanghai lease is approximately $1.4 million as of September 30, 2014. The lease agreement for the Company's Detroit location expires March 31, 2015. | |
Legal Matters | |
The Company is subject to legal proceedings, claims, investigations and proceedings in the ordinary course of business. In accordance with U.S. GAAP, the Company makes a provision for a liability when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. | |
Beginning on May 30, 2014, two putative class actions were filed in the U.S. District Court for the Southern District of New York against the Company, directors and certain officers at the time of the Company's initial public offering ("IPO") alleging violation of securities laws in connection with the Company's IPO and seeking unspecified damages. On August 15, 2014, the cases were consolidated with Charles Rankin appointed lead plaintiff. October 15, 2014, the lead plaintiff filed an amended complaint We believe these lawsuits are without merit, and we intend to vigorously defend them. The Company currently has no other outstanding material litigation. |
BENEFIT_PLANS
BENEFIT PLANS | 6 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||
BENEFIT PLANS | ' | |||||||||||||||||||
BENEFIT PLANS | ||||||||||||||||||||
Compuware Stock-Based Compensation Plans | ||||||||||||||||||||
While the Company was a majority-owned subsidiary of Compuware, a few Covisint employees were granted Compuware stock compensation awards prior to fiscal year 2015. In accordance with the provisions of Staff Accounting Bulletin (“SAB”) 1.B.1, “Costs Reflected in Historical Financial Statements,” the expense for these awards is included within the condensed consolidated statements of comprehensive loss. | ||||||||||||||||||||
Compuware Stock Option Activity | ||||||||||||||||||||
A summary of option activity for Covisint employees under Compuware’s stock-based compensation plans as of September 30, 2014, and changes during the six months then ended is presented below. Shares and intrinsic value are presented in thousands. | ||||||||||||||||||||
Six Months Ended September 30, 2014 | ||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | ||||||||||||||||||
Price | Contractual | |||||||||||||||||||
Term in Years | ||||||||||||||||||||
Options outstanding as of April 1, 2014 | 472 | $9.23 | ||||||||||||||||||
Granted | ||||||||||||||||||||
Exercised | (48 | ) | 8.8 | $71 | ||||||||||||||||
Forfeited | (61 | ) | 9.89 | |||||||||||||||||
Cancelled/expired | (45 | ) | 10.17 | |||||||||||||||||
Options outstanding as of September 30, 2014 | 318 | $9.03 | 1.47 | $542 | ||||||||||||||||
Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2014 | 312 | $9.01 | 1.41 | $538 | ||||||||||||||||
Options exercisable as of September 30, 2014 | 266 | $8.85 | 0.93 | $506 | ||||||||||||||||
The vesting schedule of options has varied over the years with the following vesting terms being the most common: (1) 50 percent of shares vest on the third anniversary date and 25 percent on the fourth and fifth anniversary dates; (2) 25 percent of shares vest on each annual anniversary date over four years; or (3) 30 percent of shares vest on the first and second anniversary dates and 40 percent vest on the third anniversary date. | ||||||||||||||||||||
All options were granted with exercise prices at or above fair market value on the date of grant and expire ten years from the date of grant. Option expense is recognized on a straight-line basis over the vesting period unless the options vest more quickly than the expense would be recognized. In this case, additional expense is taken to ensure the expense is proportionate to the percent of options vested at any point in time. | ||||||||||||||||||||
During the six months ended September 30, 2014, 19,333 Compuware option shares granted to Covisint employees vested, with an average fair value of $5.74 per share. | ||||||||||||||||||||
Compuware Restricted Stock Units | ||||||||||||||||||||
A summary of non-vested restricted stock units (“RSUs”) activity for Covisint employees and directors under the Compuware LTIP as of September 30, 2014, and changes during the six months then ended is presented below. Shares and intrinsic value are presented in thousands. | ||||||||||||||||||||
Six Months Ended September 30, 2014 | ||||||||||||||||||||
Shares | Weighted | Aggregate | ||||||||||||||||||
Average | Intrinsic | |||||||||||||||||||
Grant-Date | Value | |||||||||||||||||||
Fair Value | ||||||||||||||||||||
Non-vested RSU outstanding at April 1, 2014 | 182 | |||||||||||||||||||
Granted | ||||||||||||||||||||
Released | (152 | ) | $1,514 | |||||||||||||||||
Forfeited | (18 | ) | ||||||||||||||||||
Dividend equivalents, net | ||||||||||||||||||||
Non-vested RSU outstanding at September 30, 2014 | 12 | |||||||||||||||||||
RSUs have various vesting terms related to the purpose of the award. The most common vesting term is 25 percent of shares vest on each annual anniversary date over four years. | ||||||||||||||||||||
The awards are settled by the issuance of one common share of Compuware stock for each unit upon vesting and vesting accelerates upon death, disability or a change in control of Compuware. | ||||||||||||||||||||
Covisint Stock-Based Compensation Plan | ||||||||||||||||||||
In August 2009, Covisint established a 2009 Long-Term Incentive Plan (“2009 Covisint LTIP”) allowing the Board of Directors of Covisint to grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based cash or restricted stock unit awards and annual cash incentive awards to employees and directors of Covisint and its affiliates. The 2009 Covisint LTIP reserves 4.5 million common shares of Covisint for issuance under this plan. On December 30, 2013, the Board of Directors of Covisint Corporation adopted the First Amendment to the 2009 Covisint LTIP, subject to shareholder approval. The Amendment increased the number of shares of Covisint’s common stock available for issuance pursuant to stock-based awards granted under the LTIP by 3 million shares (increasing the number of shares available for issuance under the LTIP from 4.5 million to 7.5 million). On January 2, 2014, Compuware approved the Amendment to increase the shares available. The increase in shares set forth in the Amendment became effective on February 13, 2014, twenty (20) days after the date of mailing of the Company’s Schedule 14C Information Statement to the Company's shareholders. | ||||||||||||||||||||
As of September 30, 2014, there were 4.6 million stock options and 0.2 million RSUs outstanding from the 2009 Covisint LTIP. The Company recognized stock compensation expense of $1.3 million and $3.9 million for the three and six months ended September 30, 2014. | ||||||||||||||||||||
Certain individuals, who received stock options from the 2009 Covisint LTIP, were also eligible to be awarded performance stock awards ("PSAs") from the Compuware 2007 LTIP. As of September 30, 2014, there were 681,000 PSAs that were cancelled upon the closing of the Covisint IPO. As a result, $2.9 million of expense associated with the PSAs was reversed during the quarter ended September 30, 2013. PSA credit totaling $2.8 million and $2.5 million was recorded to “general and administrative” during the three and six months ended September 30, 2013, respectively. | ||||||||||||||||||||
Stock Option Activity | ||||||||||||||||||||
A summary of option activity under the Company’s stock-based compensation plans as of September 30, 2014, and changes during the six months then ended is presented below (shares and intrinsic value in thousands): | ||||||||||||||||||||
Six Months Ended September 30, 2014 | ||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | ||||||||||||||||||
Price | Contractual | |||||||||||||||||||
Term in Years | ||||||||||||||||||||
Options outstanding as of April 1, 2014 | 4,458 | $3.48 | ||||||||||||||||||
Granted | 890 | 5.23 | ||||||||||||||||||
Exercised | (589 | ) | ||||||||||||||||||
Forfeited | (122 | ) | 8.27 | |||||||||||||||||
Options outstanding as of September 30, 2014 | 4,637 | $3.87 | 4.37 | $6,416 | ||||||||||||||||
Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2014 | 4,573 | $3.78 | 4.3 | $6,416 | ||||||||||||||||
Options exercisable as of September 30, 2014 | 1,088 | $3.03 | 2.22 | $1,928 | ||||||||||||||||
All options were originally granted at estimated fair market value for those granted prior to IPO, and at fair market value for those granted post IPO. Options expire ten years from the date of grant unless expiration has been otherwise accelerated in accordance with a termination and/or separation agreement. | ||||||||||||||||||||
On July 1, 2014, 750,000 stock options with an estimated fair market value of $2.25 per option and 182,193 restricted stock units with a fair market value as of the grant date of $4.86 were granted to an employee. Both instruments vest at 33.3% on each the first, second and third anniversary of the grant date. There are no other outstanding Covisint restricted stock units as of September 30, 2014. | ||||||||||||||||||||
For the six months ending September 30, 2014, 589,389 options were exercised by participants of the 2009 Covisint LTIP. | ||||||||||||||||||||
Stock Awards Compensation | ||||||||||||||||||||
For the three months ended September 30, 2014 and 2013, respectively, and for the six months ended September 30, 2014 and 2013, respectively, stock awards compensation expense was recorded as follows in thousands: | ||||||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Stock awards compensation classified as: | ||||||||||||||||||||
Cost of revenue | $69 | $593 | $584 | $598 | ||||||||||||||||
Research and development | 28 | 451 | 94 | 498 | ||||||||||||||||
Sales and marketing | 341 | 3,989 | 946 | 4,036 | ||||||||||||||||
Administrative and general | 817 | 4,987 | 2,249 | 5,374 | ||||||||||||||||
Total stock awards compensation expense before income taxes | $1,255 | $10,020 | $3,873 | $10,506 | ||||||||||||||||
As of September 30, 2014, total unrecognized compensation cost of $6.7 million, net of estimated forfeitures, related to nonvested equity awards granted is expected to be recognized over a weighted-average period of approximately 1.8 years. The following table summarizes the Company’s estimated future recognition of its unrecognized compensation cost related to stock awards as of September 30, 2014 (in thousands). | ||||||||||||||||||||
Year Ending March 31, | ||||||||||||||||||||
Stock-Based Compensation Plan: | Total | 2015 | 2016 | 2017 | 2018 | |||||||||||||||
Covisint | $6,519 | $1,982 | $2,559 | $1,400 | $578 | |||||||||||||||
Compuware | 162 | 39 | 86 | 37 | — | |||||||||||||||
Total | $6,681 | $2,021 | $2,645 | $1,437 | $578 | |||||||||||||||
On September 2, 2014, Compuware entered into a merger agreement with an affiliate of Thoma Bravo, under which Thoma Bravo will acquire all of the outstanding stock of Compuware (the “Merger”). If the Merger closes before March 31, 2015, all unrecognized compensation costs for Covisint employees under Compuware’s stock-based compensation plan would be accelerated and recognized in the current fiscal year. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
The Company previously utilized professional services staff of Compuware to provide certain services to customers and to provide additional resources for research and development activities. These costs were included in “cost of revenue” and “research and development” as applicable. Effective January 31, 2014, Compuware sold substantially all of the assets related to Compuware's Professional Services business unit to Marlin Equity Partners. As such, related party charges for professional services totaled $0.0 million for both the three and six months ended September 30, 2014. Related party charges for professional services were $0.3 million and $1.0 million for the three and six months ended September 30, 2013, respectively. | |
Certain related party transactions are settled in cash and are reflected as due to or due from parent and affiliates within the condensed consolidated balance sheet. At September 30, 2014, the Company had a net receivable due from parent of $2.9 million as compared to a net receivable of $2.8 million at March 31, 2014. The activity in the six months ended September 30, 2014 was primarily comprised of Compuware's repayments of the ($2.8) and ($4.1) million receivable as of March 31, 2014, and June 30, 2014, respectively offset by $7.1 million related to the required payment from Compuware for its use of the Company’s tax loss and other tax related attributes. In addition there was ($0.1) million due to miscellaneous intercompany activity, primarily working capital movements such as customer collections and vendor payments. | |
Compuware is the lessor of the Company's Detroit real estate lease. Refer to Note 4. "Commitments and Contingencies" for additional information. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
On October 30, 2014, the Company received from Compuware $2.8 million, the balance due from parent and affiliates as of September 30, 2014. | |
On October 31, 2014, Compuware distributed all of its 31,384,920 shares in Covisint Corporation common stock as a pro rata dividend on shares of Compuware common stock, and on shares of Compuware common stock deliverable under restricted stock units relating to Compuware common stock. As a result of this distribution, Compuware no longer owns shares of Covisint common stock. Further, Compuware and the Company entered into a Second Amended and Restated Master Separation Agreement and Second Amended and Restated Tax Sharing Agreement. See "Mangement's Discussion and Analysis of Financial Condition and Results of Operations - Agreements with Compuware" in Item 2 of this report. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation - The accompanying unaudited condensed consolidated financial statements (“Financial Statements”) include the accounts of Covisint Corporation and subsidiaries, a Michigan corporation majority-owned by Compuware Corporation (“Compuware” or the “Parent”). | |
The Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), for interim financial information and with the instructions of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, contingencies and results of operations. While management has based its assumptions and estimates on the facts and circumstances existing at September 30, 2014, final amounts may differ from these estimates. In the opinion of the Company’s management, the accompanying Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this ASU provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company adopted this ASU effective April 1, 2014, and the adoption did not have a significant impact on the Company's financial statements. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," a new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that revenue should be recognized as goods or services are transferred to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for annual and interim periods beginning on or after December 15, 2016, and early adoption is not permitted. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in the ASU. The Company is currently evaluating the impact of adopting this guidance. |
CAPITALIZED_SOFTWARE_AND_OTHER1
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||||
The components of the Company’s intangible assets are as follows (in thousands): | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||||
Amount | Amortization | Amount | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||
Trademarks(1) | $358 | $358 | ||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||
Capitalized software(2) | $50,418 | ($30,504 | ) | $19,914 | ||||||||||||||||
Customer relationship agreements(3) | 4,715 | (4,109 | ) | 606 | ||||||||||||||||
Trademarks(4) | 340 | (340 | ) | — | ||||||||||||||||
Total amortizing intangible assets | $55,473 | ($34,953 | ) | $20,520 | ||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||||
Amount | Amortization | Amount | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||
Trademarks(1) | $358 | $358 | ||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||
Capitalized software(2) | $48,989 | ($27,067 | ) | $21,922 | ||||||||||||||||
Customer relationship agreements(3) | 4,715 | (3,955 | ) | 760 | ||||||||||||||||
Trademarks(4) | 340 | (340 | ) | — | ||||||||||||||||
Total amortizing intangible assets | $54,044 | ($31,362 | ) | $22,682 | ||||||||||||||||
_____________________________________________________ | ||||||||||||||||||||
-1 | The Covisint trademarks were acquired by Compuware in an acquisition in March 2004 and contributed to Covisint by Compuware effective January 1, 2013. These trademarks are deemed to have an indefinite life and therefore are not being amortized. | |||||||||||||||||||
-2 | Amortization of capitalized software is included in “cost of revenue” in the condensed consolidated statements of comprehensive loss. Capitalized software is generally amortized over five years. | |||||||||||||||||||
-3 | Amortization of customer relationship agreements is included in “sales and marketing” in the condensed consolidated statements of comprehensive loss. Customer relationship agreements were acquired as part of acquisitions and are being amortized over periods up to six years. | |||||||||||||||||||
-4 | Amortization of trademarks is included in “general and administrative” in the condensed consolidated statements of comprehensive loss. Trademarks were acquired as part of acquisitions and are being amortized over three years. | |||||||||||||||||||
Schedule of intangible assets, future amortization expense | ' | |||||||||||||||||||
Estimated future amortization expense, based on identified intangible assets at September 30, 2014, is expected to be as follows (in thousands): | ||||||||||||||||||||
At September 30, 2014 for the Year Ending March 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Capitalized software | $3,441 | $6,357 | $5,407 | $3,369 | $1,064 | |||||||||||||||
Customer relationships | 154 | 308 | 144 | |||||||||||||||||
Total | $3,595 | $6,665 | $5,551 | $3,369 | $1,064 | |||||||||||||||
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||||||
EPS data were computed as follows (in thousands, except for per share data): | ||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic loss per share: | ||||||||||||||||
Numerator: Net loss | ($7,304 | ) | ($12,746 | ) | ($19,420 | ) | ($17,416 | ) | ||||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding | 37,972 | 30,403 | 37,730 | 30,204 | ||||||||||||
Basic loss per share | ($0.19 | ) | ($0.42 | ) | ($0.51 | ) | ($0.58 | ) | ||||||||
Diluted loss per share: | ||||||||||||||||
Numerator: Net loss | ($7,304 | ) | ($12,746 | ) | ($19,420 | ) | ($17,416 | ) | ||||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding | 37,972 | 30,403 | 37,730 | 30,204 | ||||||||||||
Dilutive effect of stock awards | — | — | — | — | ||||||||||||
Total shares | 37,972 | 30,403 | 37,730 | 30,204 | ||||||||||||
Diluted loss per share | ($0.19 | ) | ($0.42 | ) | ($0.51 | ) | ($0.58 | ) | ||||||||
BENEFIT_PLANS_Tables
BENEFIT PLANS (Tables) | 6 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||||||||
Schedule of stock option activity | ' | |||||||||||||||||||
A summary of option activity under the Company’s stock-based compensation plans as of September 30, 2014, and changes during the six months then ended is presented below (shares and intrinsic value in thousands): | ||||||||||||||||||||
Six Months Ended September 30, 2014 | ||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | ||||||||||||||||||
Price | Contractual | |||||||||||||||||||
Term in Years | ||||||||||||||||||||
Options outstanding as of April 1, 2014 | 4,458 | $3.48 | ||||||||||||||||||
Granted | 890 | 5.23 | ||||||||||||||||||
Exercised | (589 | ) | ||||||||||||||||||
Forfeited | (122 | ) | 8.27 | |||||||||||||||||
Options outstanding as of September 30, 2014 | 4,637 | $3.87 | 4.37 | $6,416 | ||||||||||||||||
Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2014 | 4,573 | $3.78 | 4.3 | $6,416 | ||||||||||||||||
Options exercisable as of September 30, 2014 | 1,088 | $3.03 | 2.22 | $1,928 | ||||||||||||||||
Schedule of allocation of award costs | ' | |||||||||||||||||||
For the three months ended September 30, 2014 and 2013, respectively, and for the six months ended September 30, 2014 and 2013, respectively, stock awards compensation expense was recorded as follows in thousands: | ||||||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Stock awards compensation classified as: | ||||||||||||||||||||
Cost of revenue | $69 | $593 | $584 | $598 | ||||||||||||||||
Research and development | 28 | 451 | 94 | 498 | ||||||||||||||||
Sales and marketing | 341 | 3,989 | 946 | 4,036 | ||||||||||||||||
Administrative and general | 817 | 4,987 | 2,249 | 5,374 | ||||||||||||||||
Total stock awards compensation expense before income taxes | $1,255 | $10,020 | $3,873 | $10,506 | ||||||||||||||||
Schedule of unrecognized compensation | ' | |||||||||||||||||||
The following table summarizes the Company’s estimated future recognition of its unrecognized compensation cost related to stock awards as of September 30, 2014 (in thousands). | ||||||||||||||||||||
Year Ending March 31, | ||||||||||||||||||||
Stock-Based Compensation Plan: | Total | 2015 | 2016 | 2017 | 2018 | |||||||||||||||
Covisint | $6,519 | $1,982 | $2,559 | $1,400 | $578 | |||||||||||||||
Compuware | 162 | 39 | 86 | 37 | — | |||||||||||||||
Total | $6,681 | $2,021 | $2,645 | $1,437 | $578 | |||||||||||||||
Compuware | ' | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||||||||
Schedule of stock option activity | ' | |||||||||||||||||||
A summary of option activity for Covisint employees under Compuware’s stock-based compensation plans as of September 30, 2014, and changes during the six months then ended is presented below. Shares and intrinsic value are presented in thousands. | ||||||||||||||||||||
Six Months Ended September 30, 2014 | ||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | ||||||||||||||||||
Price | Contractual | |||||||||||||||||||
Term in Years | ||||||||||||||||||||
Options outstanding as of April 1, 2014 | 472 | $9.23 | ||||||||||||||||||
Granted | ||||||||||||||||||||
Exercised | (48 | ) | 8.8 | $71 | ||||||||||||||||
Forfeited | (61 | ) | 9.89 | |||||||||||||||||
Cancelled/expired | (45 | ) | 10.17 | |||||||||||||||||
Options outstanding as of September 30, 2014 | 318 | $9.03 | 1.47 | $542 | ||||||||||||||||
Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2014 | 312 | $9.01 | 1.41 | $538 | ||||||||||||||||
Options exercisable as of September 30, 2014 | 266 | $8.85 | 0.93 | $506 | ||||||||||||||||
Schedule of RSU activity | ' | |||||||||||||||||||
A summary of non-vested restricted stock units (“RSUs”) activity for Covisint employees and directors under the Compuware LTIP as of September 30, 2014, and changes during the six months then ended is presented below. Shares and intrinsic value are presented in thousands. | ||||||||||||||||||||
Six Months Ended September 30, 2014 | ||||||||||||||||||||
Shares | Weighted | Aggregate | ||||||||||||||||||
Average | Intrinsic | |||||||||||||||||||
Grant-Date | Value | |||||||||||||||||||
Fair Value | ||||||||||||||||||||
Non-vested RSU outstanding at April 1, 2014 | 182 | |||||||||||||||||||
Granted | ||||||||||||||||||||
Released | (152 | ) | $1,514 | |||||||||||||||||
Forfeited | (18 | ) | ||||||||||||||||||
Dividend equivalents, net | ||||||||||||||||||||
Non-vested RSU outstanding at September 30, 2014 | 12 | |||||||||||||||||||
CAPITALIZED_SOFTWARE_AND_OTHER2
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | ||||
Schedule of Intangible Assets [Line Items] | ' | ' | ' | ' | ' | |||
Amortized intangible assets, Gross Carrying Amount | $55,473,000 | ' | $55,473,000 | ' | $54,044,000 | |||
Accumulated Amortization | -34,953,000 | ' | -34,953,000 | ' | -31,362,000 | |||
Amortized intangible assets, Net Carrying Amount | 20,520,000 | ' | 20,520,000 | ' | 22,682,000 | |||
Amortization expense of intangible assets | 1,800,000 | 1,800,000 | 3,600,000 | 3,500,000 | ' | |||
Estimated future amortization expense | ' | ' | ' | ' | ' | |||
2016 | 3,595,000 | ' | 3,595,000 | ' | ' | |||
2017 | 6,665,000 | ' | 6,665,000 | ' | ' | |||
2018 | 5,551,000 | ' | 5,551,000 | ' | ' | |||
2019 | 3,369,000 | ' | 3,369,000 | ' | ' | |||
2020 | 1,064,000 | ' | 1,064,000 | ' | ' | |||
Trademarks | ' | ' | ' | ' | ' | |||
Schedule of Intangible Assets [Line Items] | ' | ' | ' | ' | ' | |||
Unamortized intangible assets | 358,000 | [1] | ' | 358,000 | [1] | ' | 358,000 | [1] |
Capitalized software | ' | ' | ' | ' | ' | |||
Schedule of Intangible Assets [Line Items] | ' | ' | ' | ' | ' | |||
Amortized intangible assets, Gross Carrying Amount | 50,418,000 | [2] | ' | 50,418,000 | [2] | ' | 48,989,000 | [2] |
Accumulated Amortization | -30,504,000 | [2] | ' | -30,504,000 | [2] | ' | -27,067,000 | [2] |
Amortized intangible assets, Net Carrying Amount | 19,914,000 | [2] | ' | 19,914,000 | [2] | ' | 21,922,000 | [2] |
Finite-lived intangible asset, useful life | ' | ' | '5 years | ' | ' | |||
Estimated future amortization expense | ' | ' | ' | ' | ' | |||
2016 | 3,441,000 | ' | 3,441,000 | ' | ' | |||
2017 | 6,357,000 | ' | 6,357,000 | ' | ' | |||
2018 | 5,407,000 | ' | 5,407,000 | ' | ' | |||
2019 | 3,369,000 | ' | 3,369,000 | ' | ' | |||
2020 | 1,064,000 | ' | 1,064,000 | ' | ' | |||
Customer relationship agreements | ' | ' | ' | ' | ' | |||
Schedule of Intangible Assets [Line Items] | ' | ' | ' | ' | ' | |||
Amortized intangible assets, Gross Carrying Amount | 4,715,000 | [3] | ' | 4,715,000 | [3] | ' | 4,715,000 | [3] |
Accumulated Amortization | -4,109,000 | [3] | ' | -4,109,000 | [3] | ' | -3,955,000 | [3] |
Amortized intangible assets, Net Carrying Amount | 606,000 | [3] | ' | 606,000 | [3] | ' | 760,000 | [3] |
Estimated future amortization expense | ' | ' | ' | ' | ' | |||
2016 | 154,000 | ' | 154,000 | ' | ' | |||
2017 | 308,000 | ' | 308,000 | ' | ' | |||
2018 | 144,000 | ' | 144,000 | ' | ' | |||
2019 | ' | ' | ' | ' | ' | |||
2020 | ' | ' | ' | ' | ' | |||
Customer relationship agreements | Maximum | ' | ' | ' | ' | ' | |||
Schedule of Intangible Assets [Line Items] | ' | ' | ' | ' | ' | |||
Finite-lived intangible asset, useful life | ' | ' | '6 years | ' | ' | |||
Trademarks | ' | ' | ' | ' | ' | |||
Schedule of Intangible Assets [Line Items] | ' | ' | ' | ' | ' | |||
Amortized intangible assets, Gross Carrying Amount | 340,000 | [4] | ' | 340,000 | [4] | ' | 340,000 | [4] |
Accumulated Amortization | -340,000 | [4] | ' | -340,000 | [4] | ' | -340,000 | [4] |
Amortized intangible assets, Net Carrying Amount | $0 | [4] | ' | $0 | [4] | ' | $0 | [4] |
Finite-lived intangible asset, useful life | ' | ' | '3 years | ' | ' | |||
[1] | The Covisint trademarks were acquired by Compuware in an acquisition in March 2004 and contributed to Covisint by Compuware effective January 1, 2013. These trademarks are deemed to have an indefinite life and therefore are not being amortized. | |||||||
[2] | Amortization of capitalized software is included in bcost of revenueb in the condensed consolidated statements of comprehensive loss. Capitalized software is generally amortized over five years. | |||||||
[3] | Amortization of customer relationship agreements is included in bsales and marketingb in the condensed consolidated statements of comprehensive loss. Customer relationship agreements were acquired as part of acquisitions and are being amortized over periods up to six years. | |||||||
[4] | Amortization of trademarks is included in bgeneral and administrativeb in the condensed consolidated statements of comprehensive loss. Trademarks were acquired as part of acquisitions and are being amortized over three years. |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basic loss per share: | ' | ' | ' | ' |
Numerator: Net loss (in dollars) | ($7,304) | ($12,746) | ($19,420) | ($17,416) |
Basic loss per share (in dollars per share) | ($0.19) | ($0.42) | ($0.51) | ($0.58) |
Diluted loss per share: | ' | ' | ' | ' |
Numerator: Net loss (in dollars) | ($7,304) | ($12,746) | ($19,420) | ($17,416) |
Denominator: | ' | ' | ' | ' |
Weighted-average common shares outstanding | 37,972 | 30,403 | 37,730 | 30,204 |
Dilutive effect of stock awards | 0 | 0 | 0 | 0 |
Total shares | 37,972 | 30,403 | 37,730 | 30,204 |
Diluted loss per share (in dollars per share) | ($0.19) | ($0.42) | ($0.51) | ($0.58) |
Antidilutive shares | 4,413 | 4,326 | 4,472 | 4,299 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | 30-May-14 | Sep. 30, 2014 |
claim | Shanghai, China Property [Member] | |
Operating Leased Assets [Line Items] | ' | ' |
Future minimum lease obligation of Shanghai lease | ' | $1.40 |
Number of putative class actions filed | 2 | ' |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 31, 2009 | |
Number of Options | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance (in shares) | ' | ' | ' | ' | 4,458,000 | ' | ' |
Granted (in shares) | 750,000 | ' | ' | ' | 890,000 | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | -589,000 | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | -122,000 | ' | ' |
Outstanding, ending balance (in shares) | ' | ' | 4,637,000 | ' | 4,637,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $2.25 | ' | ' | ' | ' | ' | ' |
Number of Options vested and expected to vest, net of estimated forfeitures (in shares) | ' | ' | 4,573,000 | ' | 4,573,000 | ' | ' |
Number of Options exercisable (in shares) | ' | ' | 1,088,000 | ' | 1,088,000 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance (in dollars per share) | ' | ' | ' | ' | $3.48 | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | $5.23 | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | $8.27 | ' | ' |
Outstanding, ending balance (in dollars per share) | ' | ' | $3.87 | ' | $3.87 | ' | ' |
Options vested and expected to vest, net of estimated forfeitures, Weighted Average Exercise Price (in dollars per share) | ' | ' | $3.78 | ' | $3.78 | ' | ' |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | ' | ' | $3.03 | ' | $3.03 | ' | ' |
Outstanding options, Weighted Average Remaining Contractual Term in Years | ' | ' | ' | ' | '4 years 4 months 13 days | ' | ' |
Outstanding vested and expected to vest, net of estimated forfeitures, Weighted Average Remaining Contractual Term in Years | ' | ' | ' | ' | '4 years 3 months 18 days | ' | ' |
Options exercisable, Weighted Average Remaining Contractual Term in Years | ' | ' | ' | ' | '2 years 2 months 19 days | ' | ' |
Options outstanding, Aggregate Intrinsic Value | ' | ' | $6,416,000 | ' | $6,416,000 | ' | ' |
Options vested and expected to vest, net of estimated forfeitures, Aggregate Intrinsic Value | ' | ' | 6,416,000 | ' | 6,416,000 | ' | ' |
Options exercisable, Aggregate Intrinsic Value | ' | ' | 1,928,000 | ' | 1,928,000 | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Common shares reserved for issuance (in shares) | ' | 7,500,000 | ' | ' | ' | ' | 4,500,000 |
Increase in common shares reserved for issuance (in shares) | ' | 3,000,000 | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | 1,255,000 | 10,020,000 | 3,873,000 | 10,506,000 | ' |
Unrecognized compensation cost, weighted-average period | ' | ' | ' | ' | '1 year 9 months 15 days | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | 6,681,000 | ' | 6,681,000 | ' | ' |
2014 | ' | ' | 2,021,000 | ' | 2,021,000 | ' | ' |
2015 | ' | ' | 2,645,000 | ' | 2,645,000 | ' | ' |
2016 | ' | ' | 1,437,000 | ' | 1,437,000 | ' | ' |
2017 | ' | ' | 578,000 | ' | 578,000 | ' | ' |
2009 Covisint LTIP | ' | ' | ' | ' | ' | ' | ' |
Number of Options | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | -589,389 | ' | ' | ' | ' |
Outstanding, ending balance (in shares) | ' | ' | 4,600,000 | ' | 4,600,000 | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | 6,519,000 | ' | 6,519,000 | ' | ' |
2014 | ' | ' | 1,982,000 | ' | 1,982,000 | ' | ' |
2015 | ' | ' | 2,559,000 | ' | 2,559,000 | ' | ' |
2016 | ' | ' | 1,400,000 | ' | 1,400,000 | ' | ' |
2017 | ' | ' | 578,000 | ' | 578,000 | ' | ' |
Cost of revenue | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | 69,000 | 593,000 | 584,000 | 598,000 | ' |
Research and development | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | 28,000 | 451,000 | 94,000 | 498,000 | ' |
Selling and marketing | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | 341,000 | 3,989,000 | 946,000 | 4,036,000 | ' |
Administrative and general | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | 817,000 | 4,987,000 | 2,249,000 | 5,374,000 | ' |
Stock options | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Expiration period | ' | ' | ' | ' | '10 years | ' | ' |
Stock options | Vesting schedule one, fifth anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 25.00% | ' | ' |
Stock options | Vesting schedule three, second anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 30.00% | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | 182,193 | ' | ' | ' | ' | ' | ' |
Granted, Weighted Average Grant-Date Fair Value (in dollars per share) | $4.86 | ' | ' | ' | ' | ' | ' |
Restricted Stock Units (RSUs) | 2009 Covisint LTIP | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Non-vested RSU outstanding, ending balance (in shares) | ' | ' | 200,000 | ' | 200,000 | ' | ' |
Restricted Stock Units (RSUs) | First anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 33.30% | ' | ' |
Restricted Stock Units (RSUs) | Second anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 33.30% | ' | ' |
Restricted Stock Units (RSUs) | Third anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 33.30% | ' | ' |
Performance-based Stock Awards | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Non-vested RSU outstanding, ending balance (in shares) | ' | ' | 681,000 | ' | 681,000 | ' | ' |
Share-based compensation reversed due to cancellations | ' | ' | ' | -2,900,000 | ' | ' | ' |
Performance-based Stock Awards | 2009 Covisint LTIP | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | 1,300,000 | ' | 3,900,000 | ' | ' |
Performance-based Stock Awards | Administrative and general | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | -2,800,000 | ' | -2,500,000 | ' |
Compuware | ' | ' | ' | ' | ' | ' | ' |
Number of Options | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance (in shares) | ' | ' | ' | ' | 472,000 | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | -48,000 | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | -61,000 | ' | ' |
Cancelled/expired (in shares) | ' | ' | ' | ' | -45,000 | ' | ' |
Outstanding, ending balance (in shares) | ' | ' | 318,000 | ' | 318,000 | ' | ' |
Number of Options vested and expected to vest, net of estimated forfeitures (in shares) | ' | ' | 312,000 | ' | 312,000 | ' | ' |
Number of Options exercisable (in shares) | ' | ' | 266,000 | ' | 266,000 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning balance (in dollars per share) | ' | ' | ' | ' | $9.23 | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | $8.80 | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | $9.89 | ' | ' |
Cancelled/expired (in dollars per share) | ' | ' | ' | ' | $10.17 | ' | ' |
Outstanding, ending balance (in dollars per share) | ' | ' | $9.03 | ' | $9.03 | ' | ' |
Options vested and expected to vest, net of estimated forfeitures, Weighted Average Exercise Price (in dollars per share) | ' | ' | $9.01 | ' | $9.01 | ' | ' |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | ' | ' | $8.85 | ' | $8.85 | ' | ' |
Outstanding options, Weighted Average Remaining Contractual Term in Years | ' | ' | ' | ' | '1 year 5 months 19 days | ' | ' |
Outstanding vested and expected to vest, net of estimated forfeitures, Weighted Average Remaining Contractual Term in Years | ' | ' | ' | ' | '1 year 4 months 28 days | ' | ' |
Options exercisable, Weighted Average Remaining Contractual Term in Years | ' | ' | ' | ' | '11 months 5 days | ' | ' |
Exercised, Aggregate Intrinsic Value | ' | ' | ' | ' | 71,000 | ' | ' |
Options outstanding, Aggregate Intrinsic Value | ' | ' | 542,000 | ' | 542,000 | ' | ' |
Options vested and expected to vest, net of estimated forfeitures, Aggregate Intrinsic Value | ' | ' | 538,000 | ' | 538,000 | ' | ' |
Options exercisable, Aggregate Intrinsic Value | ' | ' | 506,000 | ' | 506,000 | ' | ' |
Options vested (in shares) | ' | ' | ' | ' | 19,333 | ' | ' |
Options vested, weighted average fair value (in dollars per share) | ' | ' | ' | ' | $5.74 | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | 162,000 | ' | 162,000 | ' | ' |
2014 | ' | ' | 39,000 | ' | 39,000 | ' | ' |
2015 | ' | ' | 86,000 | ' | 86,000 | ' | ' |
2016 | ' | ' | 37,000 | ' | 37,000 | ' | ' |
2017 | ' | ' | $0 | ' | $0 | ' | ' |
Compuware | Stock options | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Expiration period | ' | ' | ' | ' | '10 years | ' | ' |
Compuware | Stock options | Vesting schedule one, third anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 50.00% | ' | ' |
Compuware | Stock options | Vesting schedule one, fourth anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 25.00% | ' | ' |
Compuware | Stock options | Vesting schedule two | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 25.00% | ' | ' |
Award vesting period | ' | ' | ' | ' | '4 years | ' | ' |
Compuware | Stock options | Vesting schedule three, first anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 30.00% | ' | ' |
Compuware | Stock options | Vesting schedule three, third anniversary | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 40.00% | ' | ' |
Compuware | Restricted Stock Units (RSUs) | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | 25.00% | ' | ' |
Award vesting period | ' | ' | ' | ' | '4 years | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' |
Non-vested RSU outstanding, beginning balance (in shares) | ' | ' | ' | ' | 182,000 | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' |
Released (in shares) | ' | ' | ' | ' | -152,000 | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | -18,000 | ' | ' |
Dividend equivalents, net (in shares) | ' | ' | ' | ' | ' | ' | ' |
Non-vested RSU outstanding, ending balance (in shares) | ' | ' | 12,000 | ' | 12,000 | ' | ' |
Granted, Weighted Average Grant-Date Fair Value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' |
Dividend equivalents, net, Weighted Average Grant-Date Fair Value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' |
Released, Aggregate Intrinsic Value | ' | ' | ' | ' | $1,514,000 | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Due from parent and affiliates | ' | $2,885,000 | ' | ' | $2,813,000 |
Compuware | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Expenses from transactions with Parent | 300,000 | 0 | 1,000,000 | ' | ' |
Due from parent and affiliates | ' | 2,900,000 | ' | ' | 2,800,000 |
Net offset due to parent and affiliates | ' | ' | ' | 4,100,000 | 2,800,000 |
Compuware | Parent's Utilization of Tax Loss and Other Tax Related Attributes | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Due from parent and affiliates | ' | 7,100,000 | ' | ' | ' |
Compuware | Net Change in Working Capital | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Net offset due to parent and affiliates | ' | ' | ' | $100,000 | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Compuware, Subsequent Event [Member], USD $) | 0 Months Ended | |
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 30, 2014 |
Compuware | Subsequent Event [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Decrease in related party receivable due from Compuware | ' | $2.80 |
Shares of Covisisnt Corporation distributed as pro rata dividend | 31,384,920 | ' |