Covisint (COVS) 10-Q 12 Nov 15 2016 Q2 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	6 Months Ended
	Sep. 30, 2015	Nov. 10, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Covisint Corp
Entity Central Index Key	1,563,699
Current Fiscal Year End Date	--03-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		39,644,054

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 31, 2015
CURRENT ASSETS:
Cash	$ 41,695	$ 50,077
Accounts receivable, net	12,595	15,348
Deferred tax asset, net	13	16
Prepaid expenses	2,710	3,160
Other current assets	2,345	4,209
Total current assets	59,358	72,810
PROPERTY AND EQUIPMENT, LESS ACCUMULATED DEPRECIATION AND AMORTIZATION	9,190	8,809
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS, NET	10,363	10,646
OTHER:
Goodwill	25,385	25,385
Deferred costs	889	1,736
Deferred tax asset, net	1,457	1,528
Other assets	434	928
Total other assets	28,165	29,577
TOTAL ASSETS	107,076	121,842
CURRENT LIABILITIES:
Accounts payable	6,118	7,703
Accrued commissions	1,907	3,286
Deferred revenue	16,770	18,029
Accrued expenses	2,987	3,344
Deferred tax liability, net	1,564	1,597
Total current liabilities	29,346	33,959
DEFERRED REVENUE	2,190	3,914
ACCRUED LIABILITIES	2,687	2,622
Total liabilities	$ 34,223	$ 40,495
COMMITMENTS AND CONTINGENCIES
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 39,535,604 (39,033,900 issued and outstanding as of March 31, 2015)	0	0
Additional paid-in capital	159,304	157,004
Retained deficit	(86,345)	(75,633)
Accumulated other comprehensive loss	(106)	(24)
Total shareholders' equity	72,853	81,347
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 107,076	$ 121,842

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2015	Mar. 31, 2015
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	39,535,604	39,033,900
Common stock, shares outstanding	39,535,604	39,033,900

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
REVENUE	$ 18,393	$ 21,735	$ 36,875	$ 43,322
COST OF REVENUE	8,469	14,326	18,246	29,592
GROSS PROFIT	9,924	7,409	18,629	13,730
OPERATING EXPENSES:
Research and development	3,127	2,583	6,790	5,699
Sales and marketing	7,183	8,003	14,659	17,775
General and administrative	3,730	4,111	7,817	9,657
Total operating expenses	14,040	14,697	29,266	33,131
OPERATING LOSS	(4,116)	(7,288)	(10,637)	(19,401)
Other income (expense)	(33)	17	(31)	39
LOSS BEFORE INCOME TAXES	(4,149)	(7,271)	(10,668)	(19,362)
INCOME TAX PROVISION (BENEFIT)	(23)	33	44	58
NET LOSS	$ (4,126)	$ (7,304)	$ (10,712)	$ (19,420)
Basic and diluted loss per share (in dollars per share)	$ (0.10)	$ (0.19)	$ (0.27)	$ (0.51)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Foreign currency translation adjustments	$ (85)	$ 30	$ (82)	$ 37
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(85)	30	(82)	37
COMPREHENSIVE LOSS	$ (4,211)	$ (7,274)	$ (10,794)	$ (19,383)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 6 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Mar. 31, 2015		39,033,900
Beginning balance at Mar. 31, 2015	$ 81,347	$ 0	$ 157,004	$ (75,633)	$ (24)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(10,712)			(10,712)
Covisint stock compensation (Note 5)	1,822		1,822
Covisint stock option exercise/ RSU Vesting Net (Note 5) (in shares)		501,704
Covisint stock option exercise/ RSU Vesting Net (Note 5)	486		486
Income taxes	(8)		(8)
Foreign currency translation	(82)				(82)
Ending balance (in shares) at Sep. 30, 2015		39,535,604
Ending balance at Sep. 30, 2015	$ 72,853	$ 0	$ 159,304	$ (86,345)	$ (106)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net loss	$ (10,712)	$ (19,420)
Adjustments to reconcile net loss to cash provided by (used in) operations:
Depreciation and amortization	3,497	4,687
Deferred income taxes	48	(56)
Stock award compensation	1,822	3,874
Other	5	0
Net change in assets and liabilities:
Accounts receivable	2,723	2,168
Other assets	3,658	1,984
Accounts payable and accrued expenses	(1,625)	2,207
Deferred revenue	(2,986)	(5,747)
Net cash (used in) operating activities	(3,570)	(10,303)
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Property and equipment	(3,451)	(1,873)
Capitalized software	(1,526)	(1,429)
Proceeds from asset disposals	29	0
Net cash (used in) investing activities	(4,948)	(3,302)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Cash payments from former parent company	0	16,347
Cash payments to former parent company	0	(9,247)
Vendor financing payments	(369)	0
Net proceeds from exercise of stock awards	486	1,184
Net cash provided by financing activities	117	8,284
EFFECT OF EXCHANGE RATE CHANGES ON CASH	19	(47)
NET CHANGE IN CASH	(8,382)	(5,368)
CASH AT BEGINNING OF PERIOD	50,077	49,536
CASH AT END OF PERIOD	$ 41,695	$ 44,168

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2015
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, a Michigan corporation, and subsidiaries ("Covisint", "the Company", "we", "our", and "us"). On October 31, 2014, Covisint ceased being a subsidiary of Compuware Corporation (“Compuware”) as a result of Compuware's distribution of its holdings of Covisint common stock to Compuware shareholders ("the October 2014 Distribution"). Prior to October 31, 2014, Covisint was majority-owned by Compuware. 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, 2015 , 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 has evaluated subsequent events through the date these Financial Statements were issued. These Financial Statements should be read in conjunction with the Company's 2015 Annual Report on Form 10-K. There have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2015 Annual Report on Form 10-K. Recently Issued Accounting Pronouncements 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. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the delay, this ASU will now be effective for annual and interim periods beginning on or after December 15, 2017, with early adoption 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, 2015
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, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Trademarks(1) $358 $358 Amortizing intangible assets: Capitalized software(2) $35,866 ($25,861 ) $10,005 Customer relationship agreements 2,585 (2,585 ) — Trademarks 80 (80 ) — Total amortizing intangible assets $38,531 ($28,526 ) $10,005 March 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Trademarks(1) $358 $358 Amortizing intangible assets: Capitalized software(2) $34,340 ($24,052 ) $10,288 Customer relationship agreements 2,585 (2,585 ) — Trademarks 80 (80 ) — Total amortizing intangible assets $37,005 ($26,717 ) $10,288 _____________________________________________________ (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 . Amortization expense of intangible assets was $0.9 million and $1.8 million for the three months ended September 30, 2015 and 2014 , respectively, and $1.8 million and $3.6 million for the six months ended September 30, 2015 and 2014 , respectively. Estimated future amortization expense, based on identified intangible assets at September 30, 2015 , is expected to be as follows (in thousands): At September 30, 2015 for the Year Ending March 31, 2016 2017 2018 2019 2020 2021 Capitalized software $1,598 $3,319 $2,621 $1,271 $902 $294

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	6 Months Ended
	Sep. 30, 2015
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, 2015 2014 2015 2014 Basic loss per share: Numerator: Net loss ($4,126 ) ($7,304 ) ($10,712 ) ($19,420 ) Denominator: Weighted-average common shares outstanding 39,346 37,972 39,203 37,730 Basic loss per share ($0.10 ) ($0.19 ) ($0.27 ) ($0.51 ) Diluted loss per share: Numerator: Net loss ($4,126 ) ($7,304 ) ($10,712 ) ($19,420 ) Denominator: Weighted-average common shares outstanding 39,346 37,972 39,203 37,730 Dilutive effect of stock awards — — — — Total shares 39,346 37,972 39,203 37,730 Diluted loss per share ($0.10 ) ($0.19 ) ($0.27 ) ($0.51 ) Stock awards to purchase approximately 4,469,000 and 4,413,000 shares for the three months ended September 30, 2015 and 2014 , respectively, and 4,554,000 and 4,472,000 shares for the six months ended September 30, 2015 and 2014 , respectively, were excluded from the diluted EPS calculation because they were anti-dilutive.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Contractual Obligations The Company conducts its business in various leased facilities which, based on the lease terms, are considered to be operating leases. There have been no material changes in our commitments under the lease agreements or other contractual obligations, as disclosed in our Annual Report on Form 10-K for the year ended 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. On October 14, 2014, the lead plaintiff filed a consolidated class action complaint (the “Complaint”) alleging violations of Regulation S-K and Sections 11 and 15 of the Securities Act. The Complaint alleges, among other things that the IPO’s registration statement contained (1) untrue statements and omissions of material facts related to the Company’s projected revenues for fiscal 2014, (2) materially inaccurate statements regarding the Company’s revenue recognition policy, and (3) omissions of known trends, uncertainties and significant risk factors as required to be disclosed by Regulation S-K. The Company filed a motion to dismiss the Complaint that the Court denied on July 1, 2015. We believe the Complaint is without merit, and we intend to vigorously defend it. As the litigation is early in the process, we are unable to estimate the reasonably possible loss or range of loss. The Company currently has no other outstanding litigation.

BENEFIT PLANS

BENEFIT PLANS	6 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
BENEFIT PLANS	BENEFIT PLANS Covisint 401(k) Plan Effective April 8, 2014, the Company effectively transitioned all Covisint employees from the Compuware 401(k) plan to a newly established Covisint 401(k) plan. All balances were transferred to the new plan. Under the Covisint 401(k) plan, the Company matches 33 percent of employees’ 401(k) contributions up to 2 percent of eligible earnings. Matching contributions vest 100 percent when an employee reaches one year of service. The Company expensed $0.1 million and $0.1 million for the three months ended September 30, 2015 and 2014, respectively, and $0.2 million and $0.3 million for the six months ended September 30, 2015 and 2014, respectively, for our matching contributions to the plan. 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 ("RSUs"), performance-based cash or RSU awards and annual cash incentive awards to employees and directors of Covisint and its affiliates. The 2009 Covisint LTIP reserves 7.5 million common shares of Covisint for issuance. As of September 30, 2015 , there were 4.1 million stock options and 0.3 million RSUs outstanding from the 2009 Covisint LTIP. No options issued subsequent to the IPO contain performance conditions. For the six months ended September 30, 2015 0.3 million options were exercised by participants of the 2009 Covisint LTIP. Stock Option Activity A summary of option activity under the Company’s stock-based compensation plans as of September 30, 2015 , and changes during the six months then ended is presented below (shares and intrinsic value in thousands): Six Months Ended September 30, 2015 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding as of April 1, 2015 4,306 $3.93 Granted 230 2.27 Exercised (304 ) 1.80 Forfeited/Cancelled (136 ) 9.27 Options outstanding as of September 30, 2015 4,096 $3.82 5.69 $555 Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2015 3,944 $3.82 5.56 $555 Options exercisable as of September 30, 2015 1,858 $3.69 3.36 $392 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 an amendment, termination and/or separation agreement. Restricted Stock Unit Activity A summary of non-vested RSU activity as of September 30, 2015 , and changes during the six months then ended is presented below. Shares and intrinsic value are presented in thousands. Six Months Ended September 30, 2015 Shares Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value Non-vested RSU outstanding at April 1, 2015 338 Granted 176 $ 2.57 Released (216 ) Forfeited — Non-vested RSU outstanding at September 30, 2015 298 $ 640 Under the 2009 LTIP, a participant may utilize shares of vesting RSU awards to satisfy the withholding tax requirements. During the quarter ended September 30, 2015, 19,191 shares were exchanged and used for the payment of withholding taxes. Stock Awards Compensation For the three months ended September 30, 2015 and 2014 , net stock awards compensation expense was recorded as follows in thousands: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Stock awards compensation classified as: Cost of revenue $22 $69 $52 $584 Research and development 28 28 54 94 Sales and marketing 232 341 341 946 General and administrative 391 817 1,375 2,249 Total stock awards compensation expense before income taxes $673 $1,255 $1,822 $3,873 For the three months ended September 30, 2015 and 2014 stock compensation expense of $0.7 million and $1.3 million , respectively, was based on normal expense recognition. For the six months ended September 30, 2015 and 2014 total stock compensation expense is comprised of $1.4 million and $2.8 million , respectively, according to the normal expense recognition of the grant, and $0.4 million and $1.1 million , respectively, of accelerated expense recognized due to the cancellation of options for certain current employees, as well as expense recognized due to employee terminations which accelerated vesting pursuant to the terms of these options. As of September 30, 2015 , total unrecognized compensation cost of $3.6 million , net of estimated forfeitures, related to non-vested equity awards granted is expected to be recognized over a weighted-average period of approximately 2.0 years. The following table summarizes the Company’s estimated future recognition of its unrecognized compensation cost related to stock awards as of September 30, 2015 (in thousands). Year Ending March 31, Covisint Stock-Based Compensation Plan: Total 2016 2017 2018 2019 2020 Stock Compensation Expense $3,584 $1,004 $1,613 $742 $217 $8

SUMMARY OF SIGNIFICANT ACCOUN12

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The accompanying unaudited condensed consolidated financial statements (“Financial Statements”) include the accounts of Covisint Corporation, a Michigan corporation, and subsidiaries ("Covisint", "the Company", "we", "our", and "us"). On October 31, 2014, Covisint ceased being a subsidiary of Compuware Corporation (“Compuware”) as a result of Compuware's distribution of its holdings of Covisint common stock to Compuware shareholders ("the October 2014 Distribution"). Prior to October 31, 2014, Covisint was majority-owned by Compuware. 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, 2015 , 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 has evaluated subsequent events through the date these Financial Statements were issued. These Financial Statements should be read in conjunction with the Company's 2015 Annual Report on Form 10-K. There have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2015 Annual Report on Form 10-K.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements 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. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the delay, this ASU will now be effective for annual and interim periods beginning on or after December 15, 2017, with early adoption 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 OTHE13

CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Sep. 30, 2015
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, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Trademarks(1) $358 $358 Amortizing intangible assets: Capitalized software(2) $35,866 ($25,861 ) $10,005 Customer relationship agreements 2,585 (2,585 ) — Trademarks 80 (80 ) — Total amortizing intangible assets $38,531 ($28,526 ) $10,005 March 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Trademarks(1) $358 $358 Amortizing intangible assets: Capitalized software(2) $34,340 ($24,052 ) $10,288 Customer relationship agreements 2,585 (2,585 ) — Trademarks 80 (80 ) — Total amortizing intangible assets $37,005 ($26,717 ) $10,288 _____________________________________________________ (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 .
Schedule of intangible assets, future amortization expense	Estimated future amortization expense, based on identified intangible assets at September 30, 2015 , is expected to be as follows (in thousands): At September 30, 2015 for the Year Ending March 31, 2016 2017 2018 2019 2020 2021 Capitalized software $1,598 $3,319 $2,621 $1,271 $902 $294

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	6 Months Ended
	Sep. 30, 2015
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, 2015 2014 2015 2014 Basic loss per share: Numerator: Net loss ($4,126 ) ($7,304 ) ($10,712 ) ($19,420 ) Denominator: Weighted-average common shares outstanding 39,346 37,972 39,203 37,730 Basic loss per share ($0.10 ) ($0.19 ) ($0.27 ) ($0.51 ) Diluted loss per share: Numerator: Net loss ($4,126 ) ($7,304 ) ($10,712 ) ($19,420 ) Denominator: Weighted-average common shares outstanding 39,346 37,972 39,203 37,730 Dilutive effect of stock awards — — — — Total shares 39,346 37,972 39,203 37,730 Diluted loss per share ($0.10 ) ($0.19 ) ($0.27 ) ($0.51 )

BENEFIT PLANS (Tables)

BENEFIT PLANS (Tables)	6 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	A summary of option activity under the Company’s stock-based compensation plans as of September 30, 2015 , and changes during the six months then ended is presented below (shares and intrinsic value in thousands): Six Months Ended September 30, 2015 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding as of April 1, 2015 4,306 $3.93 Granted 230 2.27 Exercised (304 ) 1.80 Forfeited/Cancelled (136 ) 9.27 Options outstanding as of September 30, 2015 4,096 $3.82 5.69 $555 Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2015 3,944 $3.82 5.56 $555 Options exercisable as of September 30, 2015 1,858 $3.69 3.36 $392
Schedule of RSU activity	A summary of non-vested RSU activity as of September 30, 2015 , and changes during the six months then ended is presented below. Shares and intrinsic value are presented in thousands. Six Months Ended September 30, 2015 Shares Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value Non-vested RSU outstanding at April 1, 2015 338 Granted 176 $ 2.57 Released (216 ) Forfeited — Non-vested RSU outstanding at September 30, 2015 298 $ 640
Schedule of allocation of award costs	For the three months ended September 30, 2015 and 2014 , net stock awards compensation expense was recorded as follows in thousands: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Stock awards compensation classified as: Cost of revenue $22 $69 $52 $584 Research and development 28 28 54 94 Sales and marketing 232 341 341 946 General and administrative 391 817 1,375 2,249 Total stock awards compensation expense before income taxes $673 $1,255 $1,822 $3,873
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, 2015 (in thousands). Year Ending March 31, Covisint Stock-Based Compensation Plan: Total 2016 2017 2018 2019 2020 Stock Compensation Expense $3,584 $1,004 $1,613 $742 $217 $8

CAPITALIZED SOFTWARE AND OTHE16

CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount		$ 38,531		$ 38,531		$ 37,005
Accumulated Amortization		(28,526)		(28,526)		(26,717)
Net Carrying Amount		10,005		10,005		10,288
Amortization expense of intangible assets		900	$ 1,800	1,800	$ 3,600
Trademarks
Schedule of Intangible Assets [Line Items]
Indefinite-lived intangible assets	[1]	358		358		358
Capitalized software
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	[2]	35,866		35,866		34,340
Accumulated Amortization	[2]	(25,861)		(25,861)		(24,052)
Net Carrying Amount	[2]	10,005		$ 10,005		10,288
Finite-lived intangible asset, useful life				5 years
Estimated future amortization expense
2,016		1,598		$ 1,598
2,017		3,319		3,319
2,018		2,621		2,621
2,019		1,271		1,271
2,020		902		902
2,021		294		294
Customer relationship agreements
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount		2,585		2,585		2,585
Accumulated Amortization		(2,585)		(2,585)		(2,585)
Net Carrying Amount		0		0		0
Trademarks
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount		80		80		80
Accumulated Amortization		(80)		(80)		(80)
Net Carrying Amount		$ 0		$ 0		$ 0
[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.

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic loss per share:
Numerator: Net loss (in dollars)	$ (4,126)	$ (7,304)	$ (10,712)	$ (19,420)
Basic loss per share (in dollars per share)	$ (0.10)	$ (0.19)	$ (0.27)	$ (0.51)
Diluted loss per share:
Numerator: Net loss (in dollars)	$ (4,126)	$ (7,304)	$ (10,712)	$ (19,420)
Denominator:
Weighted-average common shares outstanding	39,346	37,972	39,203	37,730
Dilutive effect of stock awards (in shares)	0	0	0	0
Total shares	39,346	37,972	39,203	37,730
Diluted loss per share (in dollars per share)	$ (0.10)	$ (0.19)	$ (0.27)	$ (0.51)
Antidilutive shares	4,469	4,413	4,554	4,472

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	May. 30, 2014claim
Commitments and Contingencies Disclosure [Abstract]
Number of putative class actions filed	2

BENEFIT PLANS (Details)

BENEFIT PLANS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employer matching contribution, percent of match			33.00%
Employer matching contribution, percent of employees' gross pay			2.00%
Contribution vesting rights, percentage			100.00%
Contribution vesting period			1 year
401(k) cost recognized	$ 100	$ 100	$ 200	$ 300
Common shares reserved for issuance (in shares)	7,500,000		7,500,000
Number of Options
Outstanding, beginning balance (in shares)			4,306,000
Granted (shares)			230,000
Exercised (shares)			(304,000)
Forfeited/Cancelled			(136,000)
Outstanding, beginning balance (in shares)	4,096,000		4,096,000
Number of Options vested and expected to vest, net of estimated forfeitures (in shares)	3,944,000		3,944,000
Number of Options exercisable (in shares)	1,858,000		1,858,000
Weighted Average Exercise Price
Outstanding, beginning balance (in dollars per share)			$ 3.93
Granted (in dollars per share)			2.27
Exercised (in dollars per share)			1.80
Forfeited/Canceled (in dollars per share)			9.27
Outstanding, ending balance (in dollars per share)	$ 3.82		3.82
Options vested and expected to vest, net of estimated forfeitures, Weighted Average Exercise Price (in dollars per share)	3.82		3.82
Options exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.69		$ 3.69
Additional Disclosures [Abstract]
Outstanding options, Weighted Average Remaining Contractual Term in Years			5 years 8 months 9 days
Outstanding vested and expected to vest, net of estimated forfeitures, Weighted Average Remaining Contractual Term in Years			5 years 6 months 22 days
Options exercisable, Weighted Average Remaining Contractual Term in Years			3 years 4 months 10 days
Options outstanding, Aggregate Intrinsic Value	$ 555		$ 555
Options vested and expected to vest, net of estimated forfeitures, Aggregate Intrinsic Value	555		555
Options exercisable, Aggregate Intrinsic Value	392		392
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Stock awards compensation expense before income taxes	673	1,255	1,822	3,873
Stock awards compensation expense before income taxes, normal expense recognition of grant			1,400	2,800
Stock awards compensation expense before income taxes, accelerated expense due to cancellation of options			$ 400
Stock awards compensation expense before income taxes, expense recognized due to employee terminations				1,100
Unrecognized compensation cost, weighted-average period			2 years
Unrecognized compensation cost
Unrecognized compensation cost	3,600		$ 3,600
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Stock awards compensation expense before income taxes	22	69	52	584
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Stock awards compensation expense before income taxes	28	28	54	94
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Stock awards compensation expense before income taxes	232	341	341	946
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Stock awards compensation expense before income taxes	391	$ 817	1,375	$ 2,249
2009 Covisint LTIP
Unrecognized compensation cost
Unrecognized compensation cost	3,584		3,584
2,016	1,004		1,004
2,017	1,613		1,613
2,018	742		742
2,019	217		217
2,020	$ 8		$ 8
Stock options
Additional Disclosures [Abstract]
Expiration period			10 years
Stock options | 2009 Covisint LTIP
Number of Options
Outstanding, beginning balance (in shares)	4,100,000		4,100,000
Restricted Stock Units (RSUs)
Shares
Non-vested RSU outstanding, beginning balance (in shares)			338,000
Granted (in shares)			176,000
Released (in shares)			(216,000)
Forfeited (in shares)			0
Non-vested RSU outstanding, ending balance (in shares)	298,000		298,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Weighted Average Grant Date Fair Value - Granted (in dollars per share)			$ 2.57
Non-vested RSU outstanding at end of period	$ 640		$ 640
Restricted Stock Units (RSUs) | 2009 Covisint LTIP
Number of Options
Outstanding, beginning balance (in shares)	300,000		300,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Shares exchanged for the payment of withholding taxes	19,191