Covisint (COVS) 10-Q 9 Feb 17 2017 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Dec. 31, 2016	Feb. 07, 2017
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	Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		40,865,897

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 30,438	$ 39,681
Accounts receivable, net of allowance for doubtful accounts of $93 and $39 as of December 31, 2016 and March 31, 2016, respectively	8,266	12,836
Prepaid expenses	2,281	2,167
Other current assets	629	1,603
Total current assets	41,614	56,287
PROPERTY AND EQUIPMENT, NET	5,731	7,847
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS, NET	10,514	11,486
OTHER:
Goodwill	25,385	25,385
Deferred costs	291	580
Deferred tax asset, net	170	171
Other assets	173	289
Total other assets	26,019	26,425
TOTAL ASSETS	83,878	102,045
CURRENT LIABILITIES:
Accounts payable	6,267	5,061
Accrued commissions	1,993	1,071
Deferred revenue	12,589	15,952
Accrued expenses	1,525	2,377
Total current liabilities	22,374	24,461
DEFERRED REVENUE	423	3,595
ACCRUED LIABILITIES	2,310	2,327
DEFERRED TAX LIABILITY, NET	382	353
Total liabilities	25,489	30,736
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 40,865,897 (40,490,928 issued and outstanding as of March 31, 2016)	0	0
Additional paid-in capital	163,644	161,997
Accumulated deficit	(104,842)	(90,527)
Accumulated other comprehensive loss	(413)	(161)
Total shareholders' equity	58,389	71,309
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 83,878	$ 102,045

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 93	$ 39
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	40,865,897	40,490,928
Common stock, shares outstanding (in shares)	40,865,897	40,490,928

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
REVENUE	$ 16,646	$ 19,162	$ 51,261	$ 56,037
COST OF REVENUE	8,500	8,822	25,594	27,068
GROSS PROFIT	8,146	10,340	25,667	28,969
OPERATING EXPENSES:
Research and development	2,578	3,100	9,315	9,890
Sales and marketing	7,128	8,564	21,392	23,223
General and administrative	2,813	2,699	9,207	10,516
Total operating expenses	12,519	14,363	39,914	43,629
OPERATING LOSS	(4,373)	(4,023)	(14,247)	(14,660)
Other income (expense)	13	3	46	(28)
LOSS BEFORE INCOME TAX PROVISION	(4,360)	(4,020)	(14,201)	(14,688)
INCOME TAX PROVISION	40	52	114	96
NET LOSS	$ (4,400)	$ (4,072)	$ (14,315)	$ (14,784)
Basic and diluted loss per share (in dollars per share)	$ (0.11)	$ (0.10)	$ (0.35)	$ (0.38)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Foreign currency translation adjustments	$ (144)	$ (72)	$ (252)	$ (154)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(144)	(72)	(252)	(154)
COMPREHENSIVE LOSS	$ (4,544)	$ (4,144)	$ (14,567)	$ (14,938)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 9 months ended Dec. 31, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Mar. 31, 2016		40,490,928
Beginning balance at Mar. 31, 2016	$ 71,309	$ 0	$ 161,997	$ (90,527)	$ (161)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(14,315)			(14,315)
Covisint stock based compensation expense (Note 5)	1,419		1,419
Covisint stock option exercise/ RSU Vesting Net (Note 5) (in shares)		374,969
Covisint stock option exercise / RSU vesting	239		239
Income tax items	(11)		(11)
Foreign currency translation	(252)				(252)
Ending balance (in shares) at Dec. 31, 2016		40,865,897
Ending balance at Dec. 31, 2016	$ 58,389	$ 0	$ 163,644	$ (104,842)	$ (413)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net loss	$ (14,315)	$ (14,784)
Adjustments to reconcile net loss to cash provided by (used in) operations:
Depreciation and amortization	5,410	5,144
Deferred income taxes	50	64
Stock award compensation	1,419	2,339
Other	3	0
Net change in assets and liabilities:
Accounts receivable	4,497	5,684
Other assets	1,236	4,611
Accounts payable and accrued expenses	1,809	(2,600)
Deferred revenue	(6,475)	(8,101)
Net cash used in operating activities	(6,366)	(7,643)
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Property and equipment	(189)	(3,772)
Capitalized software	(2,175)	(2,565)
Proceeds from asset disposals	0	33
Net cash used in investing activities	(2,364)	(6,304)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Vendor financing payments	(614)	(548)
Net proceeds from exercise of stock awards	239	2,074
Net cash provided by (used in) financing activities	(375)	1,526
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(138)	(41)
NET CHANGE IN CASH	(9,243)	(12,462)
CASH AT BEGINNING OF PERIOD	39,681	50,077
CASH AT END OF PERIOD	$ 30,438	$ 37,615

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The accompanying unaudited consolidated financial statements (“Financial Statements”) include the accounts of Covisint Corporation, a Michigan corporation, and subsidiaries (“Covisint”, the “Company”, “we”, “our”, and “us”). 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 December 31, 2016 , 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2016 (“ 2016 Annual Report”). There have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2016 Annual Report. Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting, requiring all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. ASU 2016-09 will also allow an employer to repurchase more of an employee's shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the effect that the provisions of ASU 2016-09 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases, requiring a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018. ASU 2016-02 requires entities to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Full retrospective application is prohibited. The Company is currently evaluating the effect that the provisions of ASU 2016-02 will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires all deferred income taxes to be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard prospectively as of March 31, 2016. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and a subsequent amendment to the standard in March 2016 with ASU 2016-08, 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 on its consolidated financial statements and related disclosures of adopting this guidance.

CAPITALIZED SOFTWARE AND OTHER

CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Dec. 31, 2016
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): December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Trademarks (1) $358 $358 Amortizing intangible assets: Capitalized software (2) $40,753 ($30,597 ) $10,156 Customer relationship agreements 2,585 (2,585 ) — Trademarks 80 (80 ) — Total amortizing intangible assets $43,418 ($33,262 ) $10,156 March 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Trademarks (1) $358 $358 Amortizing intangible assets: Capitalized software (2) $38,578 ($27,450 ) $11,128 Customer relationship agreements 2,585 (2,585 ) — Trademarks 80 (80 ) — Total amortizing intangible assets $41,243 ($30,115 ) $11,128 _____________________________________________________ (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 consolidated statements of comprehensive loss. Historically, capitalized software has been amortized over five years . Beginning in fiscal year 2017, capitalized software is being amortized over three years. Based on the current competitive environment and rapidly changing landscape for cloud based platform software, effective April 1, 2016, the Company changed its estimate of the useful life of capitalized software from five years to three years. This change in useful life has been accounted for as a change in accounting estimate and will be applied to all new capitalized software. Remaining carrying amounts of capitalized software intangible assets will be amortized prospectively over a maximum of three years, or the remaining useful lives if less than three years. The change in estimated useful life had a less than ($0.01) unfavorable impact on the earnings per share disclosed in the Consolidated Statements of Comprehensive Loss for the nine months ended December 31, 2016 . Amortization expense of intangible assets was $1.2 million and $0.8 million for the three months ended December 31, 2016 and 2015 , respectively, and $3.1 million and $2.6 million for the nine months ended December 31, 2016 and 2015 , respectively. Estimated future amortization expense, based on identified intangible assets at December 31, 2016 , is expected to be as follows (in thousands): At December 31, 2016 for the Year Ending March 31, 2017 2018 2019 2020 Capitalized software $1,170 $4,634 $3,279 $1,073

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE	9 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
LOSS PER COMMON SHARE	LOSS 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 December 31, Nine Months Ended 2016 2015 2016 2015 Basic loss per share: Numerator: Net loss ($4,400 ) ($4,072 ) ($14,315 ) ($14,784 ) Denominator: Weighted-average common shares outstanding 40,846 39,791 40,670 39,400 Basic loss per share ($0.11 ) ($0.10 ) ($0.35 ) ($0.38 ) Diluted loss per share: Numerator: Net loss ($4,400 ) ($4,072 ) ($14,315 ) ($14,784 ) Denominator: Weighted-average common shares outstanding 40,846 39,791 40,670 39,400 Dilutive effect of stock awards — — — — Total shares 40,846 39,791 40,670 39,400 Diluted loss per share ($0.11 ) ($0.10 ) ($0.35 ) ($0.38 ) Stock awards to purchase approximately 3,509,000 and 4,162,000 shares for the three months ended December 31, 2016 and 2015 , respectively, and 3,375,000 and 4,423,000 shares for the nine months ended December 31, 2016 and 2015 , respectively, were excluded from the diluted EPS calculation because they were anti-dilutive.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Dec. 31, 2016
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 2016 Annual Report. 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 us, our directors and former directors, and certain of our officers and former officers alleging violation of securities laws in connection with Covisint's initial public offering (“IPO”) and seeking unspecified damages. These lawsuits were consolidated in the action entitled Desrocher v. Covisint Corporation, et al., No. 14-cv-03878 (the “Securities Class Action”). 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 alleged, 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. On May 5, 2016, the parties entered into a stipulation and agreement of settlement to dismiss all claims with prejudice and settle the Securities Class Action (the “Settlement”). The Company's uninsured portion of the settlement amount is $0.4 million , which was recorded as a liability as of March 31, 2016 and paid in July 2016. On December 13, 2016, the Court approved the Settlement, which provided for a payment by the defendants of $8.0 million , and the Court dismissed the Securities Class Action with prejudice.

BENEFIT PLANS

BENEFIT PLANS	9 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
BENEFIT PLANS	BENEFIT PLANS Covisint 401(k) 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 December 31, 2016 and 2015 , respectively, and $0.3 million and $0.3 million for the nine months ended December 31, 2016 and 2015 , respectively, related to this program. 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 under this plan. As of December 31, 2016 , there were 2.6 million stock options and 1.0 million RSUs outstanding under the 2009 Covisint LTIP. No options or RSUs issued contain performance conditions. For the nine months ended December 31, 2016 and 2015 , 0.1 million options and 1.2 million options, respectively, 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 December 31, 2016 , and changes during the nine months then ended is presented below (shares and intrinsic value in thousands): Nine Months Ended December 31, 2016 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding as of April 1, 2016 2,943 $4.52 Granted 355 1.91 Exercised (138 ) 1.73 Forfeited/Canceled (602 ) 4.97 Options outstanding as of December 31, 2016 2,558 $4.20 7.70 $26 Options vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 2,437 $4.29 7.64 $22 Options exercisable as of December 31, 2016 1,413 $5.13 7.15 $— All options were originally granted at estimated fair market value for those granted prior to our 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. Restricted Stock Unit Activity A summary of non-vested RSU activity as of December 31, 2016 , and changes during the nine months then ended is presented below (shares and intrinsic value are presented in thousands): Nine Months Ended December 31, 2016 Shares Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value RSUs outstanding as of April 1, 2016 298 $3.50 Granted 893 2.29 Released (237 ) 3.16 Forfeited — — RSUs outstanding as of December 31, 2016 954 $2.45 $1,813 Stock Awards Compensation For the three months ended December 31, 2016 and 2015 , and for the nine months ended December 31, 2016 and 2015 , net stock awards compensation expense was recorded as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Stock awards compensation classified as: Cost of revenue $16 $16 $38 $68 Research and development 11 22 26 76 Sales and marketing 93 69 211 410 General and administrative 371 410 1,144 1,785 Total stock awards compensation expense before income taxes $491 $517 $1,419 $2,339 For the three months ended December 31, 2016 and 2015 total stock compensation expense is comprised of $0.5 million and $0.5 million , respectively, according to the normal expense recognition of the grant. For the nine months ended December 31, 2016 and 2015 total stock compensation expense is comprised of $1.4 million and $1.9 million , respectively, according to the normal expense recognition of the grant. For the nine months ended December 31, 2015 , stock compensation expense was comprised of $0.4 million for accelerated expense recognized due to the cancellation of options for certain current employees. As of December 31, 2016 , total unrecognized compensation cost of $3.1 million , net of estimated forfeitures, related to nonvested equity awards granted is expected to be recognized over a weighted-average period of approximately 2.2 years. The following table summarizes the Company’s estimated future recognition of its unrecognized compensation cost related to stock awards as of December 31, 2016 (in thousands). Year Ending March 31, Covisint Stock-Based Compensation Plan: Total 2017 2018 2019 2020 2021 Stock Compensation Expense $3,135 $519 $1,264 $669 $496 $187

SUMMARY OF SIGNIFICANT ACCOUN12

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The accompanying unaudited consolidated financial statements (“Financial Statements”) include the accounts of Covisint Corporation, a Michigan corporation, and subsidiaries (“Covisint”, the “Company”, “we”, “our”, and “us”). 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 December 31, 2016 , 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2016 (“ 2016 Annual Report”). There have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2016 Annual Report.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting, requiring all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. ASU 2016-09 will also allow an employer to repurchase more of an employee's shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the effect that the provisions of ASU 2016-09 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases, requiring a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018. ASU 2016-02 requires entities to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Full retrospective application is prohibited. The Company is currently evaluating the effect that the provisions of ASU 2016-02 will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires all deferred income taxes to be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard prospectively as of March 31, 2016. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and a subsequent amendment to the standard in March 2016 with ASU 2016-08, 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 on its consolidated financial statements and related disclosures of adopting this guidance.

CAPITALIZED SOFTWARE AND OTHE13

CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	The components of the Company’s intangible assets are as follows (in thousands): December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Trademarks (1) $358 $358 Amortizing intangible assets: Capitalized software (2) $40,753 ($30,597 ) $10,156 Customer relationship agreements 2,585 (2,585 ) — Trademarks 80 (80 ) — Total amortizing intangible assets $43,418 ($33,262 ) $10,156 March 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived intangible assets: Trademarks (1) $358 $358 Amortizing intangible assets: Capitalized software (2) $38,578 ($27,450 ) $11,128 Customer relationship agreements 2,585 (2,585 ) — Trademarks 80 (80 ) — Total amortizing intangible assets $41,243 ($30,115 ) $11,128 _____________________________________________________ (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 consolidated statements of comprehensive loss. Historically, capitalized software has been amortized over five years . Beginning in fiscal year 2017, capitalized software is being amortized over three years.
Schedule of intangible assets, future amortization expense	Estimated future amortization expense, based on identified intangible assets at December 31, 2016 , is expected to be as follows (in thousands): At December 31, 2016 for the Year Ending March 31, 2017 2018 2019 2020 Capitalized software $1,170 $4,634 $3,279 $1,073

LOSS PER COMMON SHARE (Tables)

LOSS PER COMMON SHARE (Tables)	9 Months Ended
	Dec. 31, 2016
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 December 31, Nine Months Ended 2016 2015 2016 2015 Basic loss per share: Numerator: Net loss ($4,400 ) ($4,072 ) ($14,315 ) ($14,784 ) Denominator: Weighted-average common shares outstanding 40,846 39,791 40,670 39,400 Basic loss per share ($0.11 ) ($0.10 ) ($0.35 ) ($0.38 ) Diluted loss per share: Numerator: Net loss ($4,400 ) ($4,072 ) ($14,315 ) ($14,784 ) Denominator: Weighted-average common shares outstanding 40,846 39,791 40,670 39,400 Dilutive effect of stock awards — — — — Total shares 40,846 39,791 40,670 39,400 Diluted loss per share ($0.11 ) ($0.10 ) ($0.35 ) ($0.38 )

BENEFIT PLANS (Tables)

BENEFIT PLANS (Tables)	9 Months Ended
	Dec. 31, 2016
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 December 31, 2016 , and changes during the nine months then ended is presented below (shares and intrinsic value in thousands): Nine Months Ended December 31, 2016 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding as of April 1, 2016 2,943 $4.52 Granted 355 1.91 Exercised (138 ) 1.73 Forfeited/Canceled (602 ) 4.97 Options outstanding as of December 31, 2016 2,558 $4.20 7.70 $26 Options vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 2,437 $4.29 7.64 $22 Options exercisable as of December 31, 2016 1,413 $5.13 7.15 $—
Schedule of RSU activity	A summary of non-vested RSU activity as of December 31, 2016 , and changes during the nine months then ended is presented below (shares and intrinsic value are presented in thousands): Nine Months Ended December 31, 2016 Shares Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value RSUs outstanding as of April 1, 2016 298 $3.50 Granted 893 2.29 Released (237 ) 3.16 Forfeited — — RSUs outstanding as of December 31, 2016 954 $2.45 $1,813
Schedule of allocation of award costs	For the three months ended December 31, 2016 and 2015 , and for the nine months ended December 31, 2016 and 2015 , net stock awards compensation expense was recorded as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Stock awards compensation classified as: Cost of revenue $16 $16 $38 $68 Research and development 11 22 26 76 Sales and marketing 93 69 211 410 General and administrative 371 410 1,144 1,785 Total stock awards compensation expense before income taxes $491 $517 $1,419 $2,339
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 December 31, 2016 (in thousands). Year Ending March 31, Covisint Stock-Based Compensation Plan: Total 2017 2018 2019 2020 2021 Stock Compensation Expense $3,135 $519 $1,264 $669 $496 $187

CAPITALIZED SOFTWARE AND OTHE16

CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount		$ 43,418		$ 43,418		$ 41,243
Accumulated Amortization		(33,262)		(33,262)		(30,115)
Net Carrying Amount		10,156		10,156		11,128
Amortization expense of intangible assets		1,200	$ 800	3,100	$ 2,600
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]	40,753		40,753		38,578
Accumulated Amortization	[2]	(30,597)		(30,597)		(27,450)
Net Carrying Amount	[2]	10,156		$ 10,156		$ 11,128
Finite-lived intangible asset, useful life				3 years		5 years
Estimated future amortization expense
2,017		1,170		$ 1,170
2,018		4,634		4,634
2,019		3,279		3,279
2,020		1,073		1,073
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 consolidated statements of comprehensive loss. Historically, capitalized software has been amortized over five years. Beginning in fiscal year 2017, capitalized software is being amortized over three years.

LOSS PER COMMON SHARE (Details)

LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Basic loss per share:
Numerator: Net loss (in dollars)	$ (4,400)	$ (4,072)	$ (14,315)	$ (14,784)
Basic loss per share (in dollars per share)	$ (0.11)	$ (0.10)	$ (0.35)	$ (0.38)
Diluted loss per share:
Numerator: Net loss (in dollars)	$ (4,400)	$ (4,072)	$ (14,315)	$ (14,784)
Denominator:
Weighted-average common shares outstanding	40,846	39,791	40,670	39,400
Dilutive effect of stock awards (in shares)	0	0	0	0
Total shares	40,846	39,791	40,670	39,400
Diluted loss per share (in dollars per share)	$ (0.11)	$ (0.10)	$ (0.35)	$ (0.38)
Antidilutive shares	3,509	4,162	3,375	4,423

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	May 05, 2016USD ($)	May 30, 2014claim	Mar. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of putative class actions filed | claim		2
Litigation liability			$ 0.4
Litigation settlement, amount	$ 8

BENEFIT PLANS (Details)

BENEFIT PLANS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
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	$ 300	$ 300
Common shares reserved for issuance (in shares)	7,500,000		7,500,000
Number of Options
Outstanding, beginning balance (in shares)			2,943,000
Granted (shares)			355,000
Exercised (shares)			(138,000)
Forfeited/Cancelled			(602,000)
Outstanding, beginning balance (in shares)	2,558,000		2,558,000
Number of Options vested and expected to vest, net of estimated forfeitures (in shares)	2,437,000		2,437,000
Number of Options exercisable (in shares)	1,413,000		1,413,000
Weighted Average Exercise Price
Outstanding, beginning balance (in dollars per share)			$ 4.52
Granted (in dollars per share)			1.91
Exercised (in dollars per share)			1.73
Forfeited/Canceled (in dollars per share)			4.97
Outstanding, ending balance (in dollars per share)	$ 4.20		4.20
Options vested and expected to vest, net of estimated forfeitures, Weighted Average Exercise Price (in dollars per share)	4.29		4.29
Options exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.13		$ 5.13
Additional Disclosures [Abstract]
Outstanding options, Weighted Average Remaining Contractual Term in Years			7 years 8 months 12 days
Outstanding vested and expected to vest, net of estimated forfeitures, Weighted Average Remaining Contractual Term in Years			7 years 7 months 21 days
Options exercisable, Weighted Average Remaining Contractual Term in Years			7 years 1 month 24 days
Options outstanding, Aggregate Intrinsic Value	$ 26		$ 26
Options vested and expected to vest, net of estimated forfeitures, Aggregate Intrinsic Value	22		22
Options exercisable, Aggregate Intrinsic Value	0		0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Stock awards compensation expense before income taxes	491	517	1,419	2,339
Stock awards compensation expense before income taxes, normal expense recognition of grant			$ 1,400	1,900
Stock awards compensation expense before income taxes, accelerated expense due to cancellation of options				400
Unrecognized compensation cost, weighted-average period			2 years 2 months 12 days
Unrecognized compensation cost
Unrecognized compensation cost	3,135		$ 3,135
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	16	16	38	68
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	11	22	26	76
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	93	69	211	410
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	371	$ 410	$ 1,144	$ 1,785
2009 Covisint LTIP
Number of Options
Exercised (shares)			(100,000)	(1,200,000)
Unrecognized compensation cost
2,017	519		$ 519
2,018	1,264		1,264
2,019	669		669
2,020	496		496
2,021	$ 187		$ 187
Stock options
Additional Disclosures [Abstract]
Expiration period			10 years
Stock options | 2009 Covisint LTIP
Number of Options
Outstanding, beginning balance (in shares)	2,600,000		2,600,000
Restricted Stock Units (RSUs)
Shares
Non-vested RSU outstanding, beginning balance (in shares)			298,000
Granted (in shares)			893,000
Released (in shares)			(237,000)
Forfeited (in shares)			0
Non-vested RSU outstanding, ending balance (in shares)	954,000		954,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Non-vested RSU outstanding, Weighted Average Grant-Date Fair Value, beginning balance (in dollars per share)			$ 3.50
Granted (in dollars per share)			2.29
Released (in dollars per share)			3.16
Forfeited (in dollars per share)			0
Non-vested RSU outstanding, Weighted Average Grant-Date Fair Value, ending balance (in dollars per share)	$ 2.45		$ 2.45
Non-vested RSU outstanding at end of period	$ 1,813		$ 1,813
Restricted Stock Units (RSUs) | 2009 Covisint LTIP
Number of Options
Outstanding, beginning balance (in shares)	1,000,000		1,000,000