Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2013 | Jan. 27, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'QUALITY SYSTEMS, INC | ' |
Entity Central Index Key | '0000708818 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 60,210,487 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $82,101 | $105,999 |
Restricted cash | 4,079 | 5,488 |
Marketable securities | 11,888 | 12,012 |
Accounts receivable, net | 126,298 | 148,257 |
Inventories | 928 | 710 |
Income taxes receivable | 15,270 | 0 |
Deferred income taxes, net | 12,181 | 12,140 |
Other current assets | 12,048 | 12,720 |
Total current assets | 264,793 | 297,326 |
Equipment and improvements, net | 24,266 | 21,887 |
Capitalized software costs, net | 40,267 | 39,781 |
Intangibles, net | 35,006 | 27,550 |
Goodwill | 72,107 | 45,761 |
Other assets | 11,338 | 10,750 |
Total assets | 447,777 | 443,055 |
Current liabilities: | ' | ' |
Accounts payable | 4,797 | 11,501 |
Deferred revenue | 72,726 | 65,207 |
Accrued compensation and related benefits | 13,692 | 11,915 |
Income taxes payable | 0 | 1,480 |
Dividends payable | 10,687 | 10,418 |
Other current liabilities | 27,747 | 26,508 |
Total current liabilities | 129,649 | 127,029 |
Deferred revenue, net of current | 2,087 | 1,219 |
Deferred compensation | 4,557 | 3,809 |
Other noncurrent liabilities | 11,740 | 3,949 |
Total liabilities | 148,033 | 136,006 |
Commitments and contingencies (Note 11) | ' | ' |
Shareholders' equity: | ' | ' |
Common stock $0.01 par value; authorized 100,000 shares; issued and outstanding 59,588 and 59,543 shares at June 30, 2013 and March 31, 2013, respectively | 602 | 595 |
Additional paid-in capital | 193,960 | 179,743 |
Accumulated other comprehensive loss | -235 | -11 |
Retained earnings | 105,417 | 126,722 |
Total shareholders' equity | 299,744 | 307,049 |
Total liabilities and shareholders' equity | $447,777 | $443,055 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in usd per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 60,210 | 59,543 |
Common stock, shares outstanding | 60,210 | 59,543 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | ' | ' | ' | ' |
Software and hardware | $14,114 | $21,899 | $45,648 | $71,463 |
Implementation and training services | 5,046 | 7,266 | 19,430 | 27,847 |
System sales | 19,160 | 29,165 | 65,078 | 99,310 |
Maintenance | 39,763 | 39,463 | 118,684 | 116,746 |
Electronic data interchange services | 16,637 | 15,209 | 49,874 | 44,056 |
Revenue cycle management and related services | 16,178 | 15,015 | 47,660 | 43,902 |
Other services | 17,116 | 15,658 | 48,168 | 44,920 |
Maintenance, EDI, RCM and other services | 89,694 | 85,345 | 264,386 | 249,624 |
Total revenues | 108,854 | 114,510 | 329,464 | 348,934 |
Cost of revenue: | ' | ' | ' | ' |
Software and hardware | 27,398 | 4,660 | 37,111 | 16,055 |
Implementation and training services | 7,466 | 7,221 | 21,572 | 23,873 |
Total cost of system sales | 34,864 | 11,881 | 58,683 | 39,928 |
Maintenance | 5,642 | 5,259 | 16,206 | 14,811 |
Electronic data interchange services | 10,276 | 9,852 | 31,722 | 28,251 |
Revenue cycle management and related services | 11,736 | 10,918 | 34,144 | 32,344 |
Other services | 8,537 | 8,686 | 26,054 | 26,021 |
Total cost of maintenance, EDI, RCM and other services | 36,191 | 34,715 | 108,126 | 101,427 |
Total cost of revenue | 71,055 | 46,596 | 166,809 | 141,355 |
Gross profit | 37,799 | 67,914 | 162,655 | 207,579 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 36,864 | 35,532 | 110,538 | 110,045 |
Research and development costs | 13,175 | 7,786 | 26,404 | 22,634 |
Amortization of acquired intangible assets | 1,219 | 1,212 | 3,673 | 3,665 |
Impairment of goodwill and other assets | 5,873 | 0 | 5,873 | 0 |
Total operating expenses | 57,131 | 44,530 | 146,488 | 136,344 |
Income (loss) from operations | -19,332 | 23,384 | 16,167 | 71,235 |
Interest income (expense), net | 121 | 13 | -53 | -14 |
Other income (expense), net | -18 | 122 | 391 | 115 |
Income (loss) before income taxes | -19,193 | 23,275 | 15,723 | 71,106 |
Provision for (benefit of) income taxes | -6,606 | 7,649 | 5,244 | 24,292 |
Net income (loss) | -12,587 | 15,626 | 10,479 | 46,814 |
Foreign currency translation (net of $0 tax) | 21 | 10 | -172 | 0 |
Unrealized loss on AFS securities (net of $0 tax) | -51 | 0 | -51 | 0 |
Comprehensive income (loss) | ($12,617) | $15,636 | $10,256 | $46,814 |
Net income (loss) per share: | ' | ' | ' | ' |
Basic (in usd per share) | ($0.21) | $0.26 | $0.18 | $0.79 |
Diluted (in usd per share) | ($0.21) | $0.26 | $0.17 | $0.79 |
Weighted-average shares outstanding: | ' | ' | ' | ' |
Basic (in usd per share) | 60,173 | 59,400 | 59,823 | 59,343 |
Diluted (in usd per share) | 60,173 | 59,405 | 59,984 | 59,411 |
Dividends declared per common share | $0.18 | $0.18 | $0.53 | $0.53 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Loss) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Other comprehensive loss, foreign currency translation, tax | $0 | $0 | $0 | $0 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $0 | $0 | $0 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Poseidon Group [Member] | Poseidon Group [Member] | Mirth [Member] | Matrix Management Solutions [Member] | Matrix Management Solutions [Member] | |||||
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ||
Net income | $10,479 | $46,814 | ' | ' | ' | ' | ' | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ||
Depreciation | 5,897 | 5,075 | ' | ' | ' | ' | ' | ||
Amortization of capitalized software costs | 9,353 | 7,261 | ' | ' | ' | ' | ' | ||
Amortization of other intangibles | 6,340 | [1] | 5,694 | [1] | ' | ' | ' | ' | ' |
Provision for bad debts | 2,791 | 4,324 | ' | ' | ' | ' | ' | ||
Share-based compensation | 1,832 | 1,966 | ' | ' | ' | ' | ' | ||
Deferred income tax expense (benefit) | 896 | -1,255 | ' | ' | ' | ' | ' | ||
Excess tax benefit from share-based compensation | -62 | -75 | ' | ' | ' | ' | ' | ||
Change in fair value of contingent consideration | -384 | 998 | ' | ' | ' | ' | ' | ||
Impairment of goodwill and other assets | 25,971 | 0 | ' | ' | ' | ' | ' | ||
Changes in assets and liabilities, net of amounts acquired: | ' | ' | ' | ' | ' | ' | ' | ||
Accounts receivable | 23,451 | -8,665 | ' | ' | ' | ' | ' | ||
Inventories | -174 | -197 | ' | ' | ' | ' | ' | ||
Income taxes receivable | -15,270 | 715 | ' | ' | ' | ' | ' | ||
Other current assets | 2,478 | -878 | ' | ' | ' | ' | ' | ||
Other assets | -1,444 | -1,543 | ' | ' | ' | ' | ' | ||
Accounts payable | -6,842 | 1,285 | ' | ' | ' | ' | ' | ||
Deferred revenue | 2,585 | -20,111 | ' | ' | ' | ' | ' | ||
Accrued compensation and related benefits | 1,777 | -3,275 | ' | ' | ' | ' | ' | ||
Income taxes payable | -701 | 0 | ' | ' | ' | ' | ' | ||
Other current liabilities | 454 | 10,596 | ' | ' | ' | ' | ' | ||
Deferred compensation | 748 | -43 | ' | ' | ' | ' | ' | ||
Other noncurrent liabilities | 295 | -3,965 | ' | ' | ' | ' | ' | ||
Net cash provided by operating activities | 70,470 | 44,721 | ' | ' | ' | ' | ' | ||
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ||
Additions to capitalized software costs | -18,914 | -20,148 | ' | ' | ' | ' | ' | ||
Additions to equipment and improvements | -7,448 | -7,159 | ' | ' | ' | ' | ' | ||
Purchase of Poseidon and Matrix | ' | ' | 0 | -2,033 | -35,033 | 0 | -5,073 | ||
Net cash used in investing activities | -61,395 | -34,413 | ' | ' | ' | ' | ' | ||
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ||
Excess tax benefit from share-based compensation | 62 | 75 | ' | ' | ' | ' | ' | ||
Proceeds from exercise of stock options | 2,200 | 763 | ' | ' | ' | ' | ' | ||
Dividends paid | -31,515 | -41,535 | ' | ' | ' | ' | ' | ||
Payment of contingent consideration related to acquisitions | -3,720 | -2,353 | ' | ' | ' | ' | ' | ||
Net cash used in financing activities | -32,973 | -43,050 | ' | ' | ' | ' | ' | ||
Net (decrease) increase in cash and cash equivalents | -23,898 | -32,742 | ' | ' | ' | ' | ' | ||
Cash and cash equivalents at beginning of period | 105,999 | 134,444 | ' | ' | ' | ' | ' | ||
Cash and cash equivalents at end of period | 82,101 | 101,702 | ' | ' | ' | ' | ' | ||
Supplemental disclosures of cash flow information: | ' | ' | ' | ' | ' | ' | ' | ||
Cash paid during the period for income taxes, net of refunds | 20,443 | 24,691 | ' | ' | ' | ' | ' | ||
Effective September 9, 3013 and May 1, 2012 and April 16, 2012 the company acquired Poseidon, Matrix and IntraNexus in transactions summarized as follows: | ' | ' | ' | ' | ' | ' | ' | ||
Cash paid | ' | ' | 0 | -2,033 | -35,033 | 0 | -5,073 | ||
Common Stock issued at fair value | ' | ' | ' | ' | -7,882 | ' | -3,953 | ||
Fair value of contingent consideration | ' | ' | ' | ' | -13,307 | -2,862 | ' | ||
Purchase price holdback | ' | ' | ' | 500 | ' | ' | 853 | ||
Fair value of non-compete agreement (liability) | ' | ' | ' | ' | ' | ' | 1,100 | ||
Liabilities assumed | ' | ' | ' | 18 | 6,549 | ' | 746 | ||
Fair value of assets acquired | ' | ' | ' | $2,551 | $62,771 | ' | $14,587 | ||
[1] | Amortization of the customer relationships and the trade name & contracts intangible assets is included in operating expenses and amortization of the software technology intangible assets is included in cost of revenue for software and hardware. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||
Principles of Consolidation. The consolidated financial statements include the accounts of Quality Systems, Inc. and its wholly-owned subsidiaries, which consist of NextGen Healthcare Information Systems, LLC (“NextGen”), NextGen RCM Services, LLC, Opus Healthcare Solutions, LLC (“Opus”), ViaTrack Systems, LLC (“ViaTrack”), Matrix Management Solutions, LLC ("Matrix"), QSI Management, LLC and Quality Systems India Healthcare Private Limited (“QSIH”) (collectively, the “Company”). Mirth Corporation (“Mirth”) is included in the consolidated financial statements from the date of acquisition (September 9, 2013). All intercompany accounts and transactions have been eliminated. | ||||||||||||||||
Basis of Presentation. The accompanying unaudited consolidated financial statements as of December 31, 2013 and for the three and nine months ended December 31, 2013 and 2012 have been prepared in accordance with the requirements of Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Amounts related to disclosures of March 31, 2013 balances within these interim consolidated financial statements were derived from the aforementioned Form 10-K. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair presentation of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. | ||||||||||||||||
References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. | ||||||||||||||||
Revenue Recognition. The Company generates revenue from the sale of licensing rights to its software products directly to end-users and value-added resellers ("VARs"). The Company also generates revenue from sales of hardware and third-party software, implementation, training, electronic data interchange (“EDI”), post-contract support (maintenance) and other services, including revenue cycle management (“RCM”), performed for clients who license its products. | ||||||||||||||||
A typical system contract contains multiple elements of the above items. Revenue earned on software arrangements involving multiple elements is allocated to each element based on the relative fair values of those elements. The fair value of an element is based on vendor-specific objective evidence (“VSOE”). The Company limits its assessment of VSOE for each element to either the price charged when the same element is sold separately or the price established by management having the relevant authority to do so for an element not yet sold separately. VSOE calculations are updated and reviewed quarterly or annually depending on the nature of the product or service. The Company generally establishes VSOE for the related undelivered elements based on the bell-shaped curve method. VSOE is established on maintenance for the Company's largest clients based on stated renewal rates only if the rate is determined to be substantive and falls within the Company's customary pricing practices. | ||||||||||||||||
When evidence of fair value exists for the delivered and undelivered elements of a transaction, discounts for individual elements are aggregated and the total discount is allocated to the individual elements in proportion to the elements' fair value relative to the total contract fair value. | ||||||||||||||||
When evidence of fair value exists for the undelivered elements only, the residual method is used. Under the residual method, the Company defers revenue related to the undelivered elements in a system sale based on VSOE of fair value of each of the undelivered elements and allocates the remainder of the contract price net of all discounts to revenue recognized from the delivered elements. If VSOE of fair value of any undelivered element does not exist, all revenue is deferred until VSOE of fair value of the undelivered element is established or the element has been delivered. | ||||||||||||||||
Provided that fees are fixed or determinable and collection is considered probable, revenue from licensing rights and sales of hardware and third-party software is generally recognized upon physical or electronic shipment and transfer of title. In certain transactions where collection risk is high, the revenue is deferred until collection occurs or becomes probable. If the fee is not fixed or determinable, then the revenue recognized in each period (subject to application of other revenue recognition criteria) will be the lesser of the aggregate amounts due and payable or the amount of the arrangement fee that would have been recognized if the fees were being recognized using the residual method. Fees which are considered fixed or determinable at the inception of the Company's arrangements must be negotiated at the outset of an arrangement and generally be based on the specific volume of products to be delivered without being subject to change based on variable pricing mechanisms such as the number of units copied or distributed or the expected number of users. | ||||||||||||||||
Revenue from implementation and training services is recognized as the corresponding services are performed. Maintenance revenue is recognized ratably over the contractual maintenance period. | ||||||||||||||||
Contract accounting is applied where services include significant modification, development or customization. | ||||||||||||||||
The Company ensures that the following criteria have been met prior to recognition of revenue: | ||||||||||||||||
▪ | the price is fixed or determinable; | |||||||||||||||
▪ | the customer is obligated to pay and there are no contingencies surrounding the obligation or the payment; | |||||||||||||||
▪ | the customer's obligation would not change in the event of theft or damage to the product; | |||||||||||||||
▪ | the customer has economic substance; | |||||||||||||||
▪ | the amount of returns can be reasonably estimated; and | |||||||||||||||
▪ | the Company does not have significant obligations for future performance in order to bring about resale of the product by the customer. | |||||||||||||||
The Company has historically offered short-term rights of return in certain sales arrangements. If the Company is able to estimate returns for these types of arrangements, revenue is recognized, net of an allowance for returns, and these arrangements are recorded in the consolidated financial statements. If the Company is unable to estimate returns for these types of arrangements, revenue is not recognized in the consolidated financial statements until the rights of return expire, provided also, that all other criteria for revenue recognition have been met. | ||||||||||||||||
Revenue related to sales arrangements that include hosting or the right to use software stored on the Company's hardware is recognized in accordance to the same revenue recognition criteria discussed above only if the customer has the contractual right to take possession of the software without incurring a significant penalty and it is feasible for the customer to either host the software themselves or through another third-party. Otherwise, the arrangement is accounted for as a service contract in which the entire arrangement is deferred and recognized over the period that the hosting services are being performed. | ||||||||||||||||
From time to time, the Company offers future purchase discounts on its products and services as part of its sales arrangements. Such discounts that are incremental to the range of discounts reflected in the pricing of the other elements of the arrangement, that are incremental to the range of discounts typically given in comparable transactions, and that are significant, are treated as an additional element of the contract to be deferred. Amounts deferred related to future purchase options are not recognized until either the customer exercises the discount offer or the offer expires. | ||||||||||||||||
RCM service revenue is derived from services fees, which include amounts charged for ongoing billing and other related services, and are generally billed to the customer as a percentage of total collections. The Company does not recognize revenue for services fees until these collections are made, as the services fees are not fixed or determinable until such time. | ||||||||||||||||
Revenue is divided into two categories, “system sales” and “maintenance, EDI, RCM and other services.” Revenue in the system sales category includes software license fees, third-party hardware and software and implementation and training services related to purchase of the Company's software systems. Revenue in the maintenance, EDI, RCM and other services category includes maintenance, EDI, RCM services, consulting services, annual third-party license fees, hosting services, Software as a Service ("SaaS") fees and other services revenue. | ||||||||||||||||
Goodwill. The Company tests goodwill for impairment annually during its first fiscal quarter, referred to as the annual test date. The Company will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. An impairment loss would generally be recognized when the carrying amount of the reporting unit's net assets exceeds the estimated fair value of the reporting unit. | ||||||||||||||||
During the quarter ended December 31, 2013, the Company recorded a charge of $4,342 related to impairment of the goodwill at the Hospital Solutions Division, which reduced the amount of goodwill associated with the division to zero. See Note 4 for additional information. | ||||||||||||||||
Intangible Assets. Intangible assets consist of customer relationships, trade names and contracts and certain software technology. These intangible assets are recorded at fair value and are stated net of accumulated amortization. The Company currently amortizes the intangible assets over periods ranging from six months to nine years using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed. The Company assesses the recoverability of intangible assets at least annually or whenever adverse events or changes in circumstances indicate that impairment may have occurred. If the future undiscounted cash flows expected to result from the use of the related assets are less than the carrying value of such assets, impairment has been incurred and a loss is recognized to reduce the carrying value of the intangible assets to fair value, which is determined by discounting estimated future cash flows. | ||||||||||||||||
During the quarter ended December 31, 2013, the Company recorded a charge of $12,554 related to impairment of the customer relationships and software technology intangible assets at the Hospital Solutions Division, which reduced the net carrying value of such intangible assets associated with the division to zero. See Note 4 for additional information. | ||||||||||||||||
Software Development Costs. Development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any additional external software development costs are capitalized and amortized on a straight-line basis over the estimated economic life of the related product, which is typically three years. The Company provides support services on the current and prior two versions of its software. Management performs an annual review of the estimated economic life and the recoverability of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. | ||||||||||||||||
During the quarter ended December 31, 2013, the Company recorded a charge of $9,075 related to the write down of capitalized software development costs at the Hospital Solutions Division, which reduced the net carrying amount of capitalized software costs associated with the division to zero. See Note 4 for additional information. | ||||||||||||||||
Share-Based Compensation. The following table shows total share-based compensation expense included in the consolidated statements of comprehensive income (loss) for the three and nine months ended December 31, 2013 and 2012: | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue | $ | 90 | $ | 51 | $ | 253 | $ | 200 | ||||||||
Research and development costs | 100 | 76 | 231 | 209 | ||||||||||||
Selling, general and administrative | 517 | 456 | 1,348 | 1,557 | ||||||||||||
Total share-based compensation | 707 | 583 | 1,832 | 1,966 | ||||||||||||
Income tax benefit | (233 | ) | (174 | ) | (585 | ) | (621 | ) | ||||||||
Decrease in net income | $ | 474 | $ | 409 | $ | 1,247 | $ | 1,345 | ||||||||
Recent Accounting Standards. New accounting pronouncements implemented by the Company during the current year or requiring implementation in future periods are discussed below or in the notes, where applicable. | ||||||||||||||||
In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02). The new standard requires an entity to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income by component. The adoption of this guidance had no impact on the Company's consolidated financial statements, but may have an effect on the required disclosures for future reporting periods. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2013 and March 31, 2013: | ||||||||||||||||
Balance at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
December 31, | ||||||||||||||||
2013 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 82,101 | $ | 82,101 | $ | — | $ | — | ||||||||
Restricted cash | 4,079 | 4,079 | — | — | ||||||||||||
Marketable securities (2) | 11,888 | 11,888 | — | — | ||||||||||||
$ | 98,068 | $ | 98,068 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 14,539 | $ | — | $ | — | $ | 14,539 | ||||||||
$ | 14,539 | $ | — | $ | — | $ | 14,539 | |||||||||
Balance at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
March 31, | ||||||||||||||||
2013 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 105,999 | $ | 105,999 | $ | — | $ | — | ||||||||
Restricted cash | 5,488 | 5,488 | — | — | ||||||||||||
Marketable securities (2) | 12,012 | 12,012 | — | — | ||||||||||||
$ | 123,499 | $ | 123,499 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 5,336 | $ | — | $ | — | $ | 5,336 | ||||||||
$ | 5,336 | $ | — | $ | — | $ | 5,336 | |||||||||
___________________________________ | ||||||||||||||||
(1) Cash equivalents consists of money market funds. | ||||||||||||||||
(2) Marketable securities consist of fixed-income securities. | ||||||||||||||||
The Company’s contingent consideration liability is accounted for at fair value on a recurring basis and is adjusted to fair value when the carrying value differs from fair value. Key assumptions include discount rates and probability-adjusted achievement of revenue and strategic targets that are not observable in the market. The categorization of the framework used to measure fair value of the contingent consideration liability is considered Level 3 due to the subjective nature of the unobservable inputs used. The fair values of the contingent consideration liability related to the acquisitions of Sphere Health Systems, Inc. ("Sphere"), IntraNexus, Inc. ("IntraNexus"), Matrix, and Mirth were estimated based on the probability of achieving certain business milestones and management’s forecast of expected revenues. | ||||||||||||||||
The following table presents activity in the Company’s financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the nine months ended December 31, 2013: | ||||||||||||||||
Total Liabilities | ||||||||||||||||
Balance as of April 1, 2013 | $ | 5,336 | ||||||||||||||
Acquisitions (Note 3) | 13,307 | |||||||||||||||
Earnout payments | (3,720 | ) | ||||||||||||||
Fair value adjustments | (384 | ) | ||||||||||||||
Balance as of December 31, 2013 | $ | 14,539 | ||||||||||||||
Non-Recurring Fair Value Measurements | ||||||||||||||||
The Company has certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered Level 3 due to the subjective nature of the unobservable inputs used. During the nine months ended December 31, 2013, there were no adjustments to fair value of such assets, except for the impairment charge related to the Hospital Solutions Division's goodwill and other assets (see Note 4) and the intangible assets acquired from Mirth as discussed in Note 3. |
Business_Combinations
Business Combinations | 9 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Business Combinations | ' | |||
Business Combinations | ||||
On September 9, 2013, the Company acquired 100% of the outstanding capital stock of Mirth, a global leader in health information technology that helps clients achieve interoperability. The acquisition will enhance the Company’s current enterprise interoperability initiatives and broaden its accountable and collaborative care, population health, disease management and clinical data exchange offerings. The preliminary Mirth purchase price totaled $56,222, which includes share-based contingent consideration with an estimated fair value of $13,307 payable over a three year period subject to achievement of certain strategic milestones. The goodwill arising from the acquisition of Mirth represents the opportunity for the Company to sell Mirth-powered health information technology solutions as a complement to its other products as well as other expected market participant synergies going forward and is expected to be deductible for income tax purposes over a period of 15 years. Mirth operates under the NextGen Division. | ||||
The Company accounted for the Mirth acquisition as a purchase business combination. The preliminary purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are considered preliminary. The estimated fair values may be further adjusted as additional information obtained about facts and circumstances that existed as of the acquisition date becomes available during the twelve-month period after the acquisition date (“measurement period”). Any changes in the values allocated to tangible and identified intangible assets acquired and liabilities assumed during the measurement period may result in material adjustments to goodwill. During the third quarter of fiscal 2014, the Company recorded a $0.2 million measurement period adjustment relating to a change in estimated working capital. | ||||
The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach. | ||||
The total preliminary purchase price for the Mirth acquisition is summarized as follows: | ||||
Mirth | ||||
Cash paid | $ | 35,033 | ||
Common stock issued at fair value | 7,882 | |||
Contingent consideration | 13,307 | |||
Total purchase price | $ | 56,222 | ||
The following table summarizes the preliminary purchase price allocation for the Mirth acquisition: | ||||
Mirth | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | ||||
Current assets (including accounts receivable of $4,283) | $ | 4,905 | ||
Equipment and improvements | 828 | |||
Accounts payable and accrued liabilities | (747 | ) | ||
Deferred revenues | (5,802 | ) | ||
Total net tangible assets acquired and (liabilities) assumed | (816 | ) | ||
Fair value of identifiable intangible assets acquired: | ||||
Trade name | 1,350 | |||
Customer relationships | 2,800 | |||
Software technology | 22,200 | |||
Goodwill | 30,688 | |||
Total identifiable intangible assets acquired | 57,038 | |||
Total purchase price | $ | 56,222 | ||
The pro forma effects of the Mirth acquisition would not have been material to the Company’s results of operations and are therefore not presented. |
Goodwill
Goodwill | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill | ' | |||||||||||||||
Goodwill | ||||||||||||||||
The Company does not amortize goodwill as it has been determined to have an indefinite useful life. | ||||||||||||||||
Goodwill by division consists of the following: | ||||||||||||||||
March 31, | Acquisitions | Impairment | December 31, | |||||||||||||
2013 | 2013 | |||||||||||||||
QSI Dental Division (1) | $ | 7,289 | $ | — | $ | — | $ | 7,289 | ||||||||
NextGen Division | 1,840 | 30,688 | — | 32,528 | ||||||||||||
Hospital Solutions Division | 4,342 | — | (4,342 | ) | — | |||||||||||
RCM Services Division | 32,290 | — | — | 32,290 | ||||||||||||
Total goodwill | $ | 45,761 | $ | 30,688 | $ | (4,342 | ) | $ | 72,107 | |||||||
(1) QSI Dental Division goodwill is presented on a basis consistent with that of the management reporting structures within QSI. For the purposes of testing goodwill for impairment annually and as otherwise may be required; however, the QSI Dental Division goodwill is allocated to all business units that derive cash flows from the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of such goodwill being ascribed to the NextGen Division. | ||||||||||||||||
Approximately 70% of the goodwill balance as of December 31, 2013 is expected to be deductible for income tax purposes over the periods prescribed by the Internal Revenue Code ("IRC"). | ||||||||||||||||
As reported in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013, a goodwill impairment charge of $17,400 was recognized during the fourth quarter of fiscal 2013 relating to the Hospital Solutions Division (the "Hospital reporting unit" or "Hospital"), which reduced the book value of goodwill associated with the division to $4,342. At that time, although triggering events occurred for the potential impairment of intangible assets, management concluded there was no impairment to such assets. | ||||||||||||||||
During the third quarter of fiscal 2014, management identified additional factors, including a further decline in revenues and operating results, key management turnover and other qualitative indicators of potential impairment, which warranted a reassessment of the Hospital reporting unit's multi-year forecast. Based upon such reassessment, the Company concluded that it was more likely than not that the fair value of the Hospital reporting unit was less than its carrying amount. Accordingly, management re-evaluated the Hospital reporting unit's residual goodwill balance for potential impairment. In the course of such assessment, other long-term assets of the Hospital reporting unit were also evaluated for potential impairment as described below. | ||||||||||||||||
The Company performed step one of the goodwill impairment test to estimate the fair value of the Hospital reporting unit based on a discounted cash flow analysis considering various scenarios as well as market approach. The step one analysis indicated that the fair value of the Hospital reporting unit was lower than the carrying value. The failure of step one triggered step two of the impairment test, which required the Company to determine the implied fair value of the Hospital reporting unit's assets and liabilities in the same manner of determining such amounts in a business combination. | ||||||||||||||||
Based on the Company's assessment of the fair value of the Hospital reporting unit's assets and liabilities, the Company concluded that the net carrying amount of all assets and liabilities approximated their respective fair values, other than capitalized software development costs, customer relationships intangible assets and acquired software technology intangible assets. The capitalized software development costs and intangible assets were deemed to have zero fair value based on the following analysis: | ||||||||||||||||
• | Capitalized software development costs - such costs represent the capitalized portion of research and development costs applicable to the Hospital reporting unit, net of cumulative amortization of such costs. Management performed an assessment of the recoverability of such capitalized software costs and determined that the capitalized amounts are not recoverable based on a negative net realizable value expected to be generated from the Hospital reporting unit's software. As a result, the remaining net capitalized software costs of $9,075 were deemed to be impaired and were fully written off. | |||||||||||||||
• | Intangible assets - the Company determined that the acquired software technology intangible asset class represents the primary long-term asset of the Hospital reporting unit. The Company then estimated the expected future undiscounted cash flows associated with this asset class, including the residual value of other long-term assets of this business unit. Based upon such cash flow estimates, the Company deemed the customer relationships and acquired software technology intangible assets to have no fair value, and an impairment charge of $12,554 was recognized to reduce the carrying value of this asset class to zero. | |||||||||||||||
The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. As a result of the step two analysis, the Company concluded that the carrying value of goodwill exceeded the reporting unit's implied fair value and that the implied fair value of the goodwill balance was zero as of the measurement date. Accordingly, a goodwill impairment charge of $4,342 was recognized to reduce the value of Hospital goodwill to zero as of December 31, 2013. | ||||||||||||||||
Key assumptions underlying the estimation of the fair value of the Hospital reporting unit include: a) the near-term continuation of recent results of operations for the Division, b) management's detailed reassessment of the strategies of the Hospital reporting unit and the actions required to achieve those strategies, and c) the technology roadmap pertinent to the Hospital reporting unit. The Company remains committed to the hospital market and continues to invest in implementation and training, infrastructure and support, customer service and software development. The Company intends to maintain the sufficiency of these investments while effectively managing the operating efficiencies of the Hospital reporting unit. | ||||||||||||||||
In aggregate, the Hospital reporting unit's impairment charge relating to goodwill, capitalized software development costs, customer relationships and acquired software technology intangible assets was $25,971 for the third quarter of fiscal 2014, as summarized below: | ||||||||||||||||
Goodwill | Intangible | Capitalized | Total | |||||||||||||
Assets | Software Costs | |||||||||||||||
Cost of revenue: | ||||||||||||||||
Software and hardware - Hospital Solutions Division | $ | — | $ | — | $ | 9,075 | $ | 9,075 | ||||||||
Software and hardware - unallocated corporate expenses | — | 11,023 | — | 11,023 | ||||||||||||
Total impairment in cost of revenue | — | 11,023 | 9,075 | 20,098 | ||||||||||||
Operating expenses: | ||||||||||||||||
Impairment of goodwill and other assets - unallocated corporate expenses | 4,342 | 1,531 | — | 5,873 | ||||||||||||
Total impairment in operating expenses | 4,342 | 1,531 | — | 5,873 | ||||||||||||
Total impairment of goodwill and other assets | $ | 4,342 | $ | 12,554 | $ | 9,075 | $ | 25,971 | ||||||||
Although goodwill and acquired intangible assets are allocated to the Hospital Solutions Division for the purposes of impairment testing, such assets are deemed corporate assets and the related impairment charges for such assets are recorded as unallocated corporate expenses. The classification of the impairment charge between cost of revenue and operating expenses is consistent with the historic accounting for costs associated with each impaired asset class. |
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangible Assets | ' | |||||||||||||||
Intangible Assets | ||||||||||||||||
In connection with the Mirth acquisition, the Company recorded $26,350 of intangible assets related to trade name, customer relationships and software technology. The Company is amortizing the trade name and customer relationships over five years and the software technology over seven years. The weighted average amortization period for the total amount of intangible assets acquired is 6.7 years. | ||||||||||||||||
Approximately 95% of the acquired intangible assets are expected to be deductible for income tax purposes over the periods prescribed by the IRC. | ||||||||||||||||
The Company’s definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Gross carrying amount | $ | 22,050 | $ | 3,368 | $ | 23,510 | $ | 48,928 | ||||||||
Accumulated amortization | (10,857 | ) | (1,449 | ) | (1,616 | ) | (13,922 | ) | ||||||||
Net intangible assets | $ | 11,193 | $ | 1,919 | $ | 21,894 | $ | 35,006 | ||||||||
March 31, 2013 | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Gross carrying amount | $ | 23,156 | $ | 2,018 | $ | 20,509 | $ | 45,683 | ||||||||
Accumulated amortization | (10,028 | ) | (1,112 | ) | (6,993 | ) | (18,133 | ) | ||||||||
Net intangible assets | $ | 13,128 | $ | 906 | $ | 13,516 | $ | 27,550 | ||||||||
Activity related to the intangible assets for the nine months ended December 31, 2013 and 2012 is summarized as follows: | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Balance as of April 1, 2013 | $ | 13,128 | $ | 906 | $ | 13,516 | $ | 27,550 | ||||||||
Acquisition | 2,800 | 1,350 | 22,200 | 26,350 | ||||||||||||
Amortization (1) | (3,204 | ) | (337 | ) | (2,799 | ) | (6,340 | ) | ||||||||
Impairment (2) | (1,531 | ) | — | (11,023 | ) | (12,554 | ) | |||||||||
Balance as of December 31, 2013 | $ | 11,193 | $ | 1,919 | $ | 21,894 | $ | 35,006 | ||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Balance as of April 1, 2012 | $ | 7,805 | $ | 162 | $ | 15,292 | $ | 23,259 | ||||||||
Acquisition | 9,450 | 1,250 | 1,150 | 11,850 | ||||||||||||
Amortization (1) | (3,075 | ) | (424 | ) | (2,195 | ) | (5,694 | ) | ||||||||
Balance as of December 31, 2012 | $ | 14,180 | $ | 988 | $ | 14,247 | $ | 29,415 | ||||||||
_______________________________ | ||||||||||||||||
(1) Amortization of the customer relationships and the trade name & contracts intangible assets is included in operating expenses and amortization of the software technology intangible assets is included in cost of revenue for software and hardware. | ||||||||||||||||
(2) Refer to Note 4 for details on the impairment charge recorded in the current period | ||||||||||||||||
The following table represents the remaining estimated amortization of definite-lived intangible assets as of December 31, 2013: | ||||||||||||||||
For the year ended March 31, | ||||||||||||||||
2014 (remaining three months) | $ | 1,985 | ||||||||||||||
2015 | 7,171 | |||||||||||||||
2016 | 7,024 | |||||||||||||||
2017 | 6,553 | |||||||||||||||
2018 | 4,301 | |||||||||||||||
2019 and beyond | 7,972 | |||||||||||||||
Total | $ | 35,006 | ||||||||||||||
Capitalized_Software_Costs
Capitalized Software Costs | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Research and Development [Abstract] | ' | |||||||
Capitalized Software Costs | ' | |||||||
Capitalized Software Costs | ||||||||
The Company’s capitalized software development costs are summarized as follows: | ||||||||
December 31, | March 31, 2013 | |||||||
2013 | ||||||||
Gross carrying amount | $ | 98,587 | $ | 94,676 | ||||
Accumulated amortization | (58,320 | ) | (54,895 | ) | ||||
Net capitalized software costs | $ | 40,267 | $ | 39,781 | ||||
Activity related to net capitalized software costs for the nine months ended December 31, 2013 and 2012 is summarized as follows: | ||||||||
2013 | 2012 | |||||||
Balance as of April 1 | $ | 39,781 | $ | 19,994 | ||||
Capitalized | 18,914 | 20,148 | ||||||
Amortization | (9,353 | ) | (7,261 | ) | ||||
Impairment (1) | (9,075 | ) | — | |||||
Balance as of December 31 | $ | 40,267 | $ | 32,881 | ||||
____________________________ | ||||||||
(1) Refer to Note 4 for details on the impairment charge recorded in the current period | ||||||||
The following table presents the remaining estimated amortization of capitalized software costs as of December 31, 2013. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates. | ||||||||
For the year ended March 31, | ||||||||
2014 (remaining three months) | $ | 2,600 | ||||||
2015 | 10,200 | |||||||
2016 | 8,500 | |||||||
2017 | 8,300 | |||||||
2018 | 5,700 | |||||||
2019 and beyond | 4,967 | |||||||
Total | $ | 40,267 | ||||||
Composition_of_Certain_Financi
Composition of Certain Financial Statement Captions | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Composition of Certain Financial Statement Captions | ' | |||||||
Composition of Certain Financial Statement Captions | ||||||||
Accounts receivable include amounts related to maintenance and services that were billed but not yet rendered at each period end. Undelivered maintenance and services are included as a component of the deferred revenue balance on the accompanying consolidated balance sheets. | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Accounts receivable, gross | $ | 136,386 | $ | 160,080 | ||||
Allowance for doubtful accounts | (10,088 | ) | (11,823 | ) | ||||
Accounts receivable, net | $ | 126,298 | $ | 148,257 | ||||
Inventories are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Computer systems and components | $ | 928 | $ | 710 | ||||
Inventories | $ | 928 | $ | 710 | ||||
Equipment and improvements are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Computer equipment | $ | 36,224 | $ | 31,633 | ||||
Furniture and fixtures | 9,251 | 8,416 | ||||||
Leasehold improvements | 9,975 | 7,125 | ||||||
55,450 | 47,174 | |||||||
Accumulated depreciation and amortization | (31,184 | ) | (25,287 | ) | ||||
Equipment and improvements, net | $ | 24,266 | $ | 21,887 | ||||
Current and non-current deferred revenue are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Maintenance | $ | 16,337 | $ | 12,085 | ||||
Implementation services | 33,476 | 36,899 | ||||||
Annual license services | 10,051 | 9,906 | ||||||
Undelivered software, subscriptions and other | 12,862 | 6,317 | ||||||
Deferred revenue | $ | 72,726 | $ | 65,207 | ||||
Deferred revenue, net of current | $ | 2,087 | $ | 1,219 | ||||
Accrued compensation and related benefits are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Payroll, bonus and commission | $ | 4,805 | $ | 3,842 | ||||
Vacation | 8,887 | 8,073 | ||||||
Accrued compensation and related benefits | $ | 13,692 | $ | 11,915 | ||||
Other current and non-current liabilities are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Contingent consideration and other liabilities related to acquisitions | $ | 8,241 | $ | 8,426 | ||||
Care services liabilities | 4,079 | 5,488 | ||||||
Accrued consulting | 2,766 | 2,602 | ||||||
Accrued EDI expense | 2,506 | 1,452 | ||||||
Users group meeting deposits | 2,236 | — | ||||||
Self insurance reserve | 1,589 | 1,336 | ||||||
Accrued royalties | 1,285 | 1,331 | ||||||
Deferred rent | 911 | 689 | ||||||
Sales tax payable | 464 | 869 | ||||||
Accrued travel | 271 | 384 | ||||||
Outside commission payable | 267 | 461 | ||||||
Customer deposits | 60 | 262 | ||||||
Other accrued expenses | 3,072 | 3,208 | ||||||
Other current liabilities | $ | 27,747 | $ | 26,508 | ||||
Contingent consideration and other liabilities related to acquisitions | $ | 6,798 | $ | 1,382 | ||||
Deferred rent | 3,705 | 2,448 | ||||||
Income tax payable | 1,237 | — | ||||||
Other liabilities | — | 119 | ||||||
Other non-current liabilities | $ | 11,740 | $ | 3,949 | ||||
Income_Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The provision for (benefit of) income taxes for the three months ended December 31, 2013 and 2012 was approximately $(6.6) million and $7.6 million, respectively. The effective tax rates were 34.4% and 32.9% for the three months ended December 31, 2013 and 2012, respectively. The effective rate for the three months ended December 31, 2013 increased as compared to the same prior year period primarily due to the increase of the blended state effective tax rates and the non-deductible portion of the impairment charge, offset by the net benefit from the federal research and development tax credit and a benefit in qualified production activities deduction. The federal research and development tax credit statute expired on December 31, 2011, and in January 2013, was retroactively enacted through December 31, 2013. | |
The provision for income taxes for the nine months ended December 31, 2013 and 2012 was approximately $5.2 million and $24.3 million, respectively. The effective tax rates were 33.4% and 34.2% for the nine months ended December 31, 2013 and 2012, respectively. The effective rate for the nine months ended December 31, 2013 decreased as compared to the same prior year period due to a net benefit from the federal research and development tax credit and a benefit in qualified production activities deduction, offset by the non-deductible portion of the impairment charge. The federal research and development tax credit statute expired on December 31, 2011, and in January 2013, was retroactively enacted through December 31, 2013. | |
Uncertain tax positions | |
As of December 31, 2013, the Company had recorded a liability of $1.2 million for unrecognized tax benefits related to various federal, state and local income tax matters. If recognized, this amount would reduce the Company’s effective tax rate. The tax liability for the nine months ended December 31, 2013 increased from the same prior year period by $0.6 million due to additional local income tax contingent liability and certain tax positions related to acquired companies. | |
The Company is no longer subject to U.S. federal income tax examinations for tax years before 2012. With few exceptions, the Company is no longer subject to state income tax examinations for tax years before 2008. The Company does not anticipate that total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings per Share | ||||||||||||||||
The Company provides presentation of “basic” and “diluted” earnings per share (“EPS”). Shares discussed below are in thousands. | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) | $ | (12,587 | ) | $ | 15,626 | $ | 10,479 | $ | 46,814 | |||||||
Basic net income (loss) per share: | ||||||||||||||||
Weighted-average shares outstanding — Basic | 60,173 | 59,400 | 59,823 | 59,343 | ||||||||||||
Basic net income (loss) per common share | $ | (0.21 | ) | $ | 0.26 | $ | 0.18 | $ | 0.79 | |||||||
Net income (loss) | $ | (12,587 | ) | $ | 15,626 | $ | 10,479 | $ | 46,814 | |||||||
Diluted net income (loss) per share: | ||||||||||||||||
Weighted-average shares outstanding — Basic | 60,173 | 59,400 | 59,823 | 59,343 | ||||||||||||
Effect of potentially dilutive securities | — | 5 | 161 | 68 | ||||||||||||
Weighted-average shares outstanding — Diluted | 60,173 | 59,405 | 59,984 | 59,411 | ||||||||||||
Diluted net income (loss) per common share | $ | (0.21 | ) | $ | 0.26 | $ | 0.17 | $ | 0.79 | |||||||
The computation of diluted net income per share does not include 1,386 and 1,347 options to acquire shares of common stock for the three and nine months ended December 31, 2013, respectively, because their inclusion would have an anti-dilutive effect on net income per share. | ||||||||||||||||
The computation of diluted net income per share does not include 1,250 and 1,027 options to acquire shares of common stock for the three and nine months ended December 31, 2012, respectively, because their inclusion would have an anti-dilutive effect on net income per share. |
ShareBased_Awards
Share-Based Awards | 9 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Share-Based Awards | ' | |||||||||||||
Share-Based Awards | ||||||||||||||
Employee Stock Option Plans | ||||||||||||||
In September 1998, the Company’s shareholders approved a stock option plan (the “1998 Plan”) under which 8,000,000 shares of common stock were reserved for the issuance of options. The 1998 Plan provides that employees, directors and consultants of the Company may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted options to purchase shares of common stock. The exercise price of each option granted was determined by the Board of Directors at the date of grant, and options under the 1998 Plan expire no later than 10 years from the grant date. Options granted will generally become exercisable in accordance with the terms of the agreement pursuant to which they were granted. Certain option grants to directors became exercisable three months from the date of grant. Upon an acquisition of the Company by merger or asset sale, each outstanding option may be subject to accelerated vesting under certain circumstances. The 1998 Plan terminated on December 31, 2007. As of December 31, 2013, there were 20,000 outstanding options related to the 1998 Plan. | ||||||||||||||
In October 2005, the Company’s shareholders approved a stock option and incentive plan (the “2005 Plan”) under which 4,800,000 shares of common stock were reserved for the issuance of awards, including stock options, incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares, performance units (including performance options) and other share-based awards. The 2005 Plan provides that employees, directors and consultants of the Company may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted awards to acquire shares of common stock. The exercise price of each option award shall be determined by the Board of Directors at the date of grant in accordance with the terms of the 2005 Plan, and under the 2005 Plan awards expire no later than 10 years from the grant date. Options granted will generally become exercisable in accordance with the terms of the agreement pursuant to which they were granted. Upon an acquisition of the Company by merger or asset sale, each outstanding option may be subject to accelerated vesting under certain circumstances. The 2005 Plan terminates on May 25, 2015, unless terminated earlier by the Board of Directors. As of December 31, 2013, there were 1,364,101 outstanding options and 2,618,977 shares available for future grant related to the 2005 Plan. | ||||||||||||||
A summary of stock option transactions during the nine months ended December 31, 2013 follows: | ||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | (in thousands) | ||||||||||||
per Share | Life (years) | |||||||||||||
Outstanding, April 1, 2013 | 1,159,183 | $ | 30.54 | 5.5 | ||||||||||
Granted | 469,000 | 18.76 | 7.5 | |||||||||||
Exercised | (111,272 | ) | 19.78 | 0.6 | $ | 142 | ||||||||
Forfeited/Canceled | (132,810 | ) | 31.58 | 5.2 | ||||||||||
Outstanding, December 31, 2013 | 1,384,101 | $ | 27.75 | 6.1 | $ | 1,210 | ||||||||
Vested and expected to vest, December 31, 2013 | 1,298,337 | $ | 27.86 | 6 | $ | 1,109 | ||||||||
Exercisable, December 31, 2013 | 356,911 | $ | 32.29 | 4.6 | $ | 3 | ||||||||
The Company utilizes the Black-Scholes valuation model for estimating the fair value of share-based compensation with the following assumptions: | ||||||||||||||
Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Expected life | 4.9 years | 5.0 years | ||||||||||||
Expected volatility | 43.4% - 43.7% | 41.3% - 45.1% | ||||||||||||
Expected dividends | 3.1% - 3.9% | 2.4% - 4.0% | ||||||||||||
Risk-free rate | 1.0% - 1.5% | 0.7% - 0.8% | ||||||||||||
The weighted-average grant date fair value of stock options granted during the nine months ended December 31, 2013 and 2012 was $5.19 and $8.37 per share, respectively. | ||||||||||||||
The Company issues new shares to satisfy option exercises. Based on historical experience of option cancellations, the Company has estimated an annualized forfeiture rate of 8.4% and 6.2% for employee options for the nine months ended December 31, 2013 and 2012, respectively, and 0.0% for director options for the nine months ended December 31, 2013 and 2012. Forfeiture rates are adjusted over the requisite service period when actual forfeitures differ, or are expected to differ, from the estimate. | ||||||||||||||
During the nine months ended December 31, 2013, a total of 469,000 options to purchase shares of common stock were granted under the 2005 Plan at an exercise price equal to the market price of the Company’s common stock on the date of grant. A summary of stock options granted under the 2005 Plan during fiscal years 2014 and 2013 is as follows: | ||||||||||||||
Number of | Vesting | |||||||||||||
Option Grant Date | Shares | Exercise Price | Terms (1) | Expires | ||||||||||
August 15, 2013 | 85,000 | $ | 20.85 | Five years | August 15, 2021 | |||||||||
July 30, 2013 | 28,000 | $ | 22.59 | Five years | July 30, 2021 | |||||||||
May 29, 2013 | 356,000 | $ | 17.95 | Five years | May 29, 2021 | |||||||||
Fiscal year 2014 option grants | 469,000 | |||||||||||||
January 23, 2013 | 40,000 | $ | 19 | Five years | January 23, 2021 | |||||||||
November 5, 2012 | 5,000 | $ | 17.68 | Five years | November 5, 2020 | |||||||||
September 25, 2012 | 20,000 | $ | 18.42 | Five years | September 25, 2020 | |||||||||
May 24, 2012 | 346,000 | $ | 29.17 | Five years | May 24, 2020 | |||||||||
May 24, 2012 | 30,000 | $ | 29.17 | Four years | May 24, 2020 | |||||||||
May 23, 2012 | 115,500 | $ | 29.45 | Five years | May 23, 2020 | |||||||||
Fiscal year 2013 option grants | 556,500 | |||||||||||||
__________________________________ | ||||||||||||||
(1) Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant. | ||||||||||||||
Performance-Based Awards | ||||||||||||||
On May 22, 2013, the Board of Directors approved its fiscal year 2014 equity incentive program for certain employees to be awarded options to purchase the Company’s common stock. The maximum number of options available under the equity incentive program plan is 600,000, of which 210,000 are reserved for the Company’s named executive officers and 390,000 for non-executive employees of the Company. Under the program, executive officers are eligible to receive cash bonuses and options based on meeting certain target increases in revenue, EPS and operating income growth for fiscal year 2014. Under the program, non-executive employees are eligible to receive options based on meeting certain target increases in revenue and EPS growth for fiscal year 2014 and the recommendations of senior management. The options shall be issued pursuant to the 2005 Plan, have an exercise price equal to the closing price of the Company’s shares on the date of grant, a term of eight years and vesting in five equal annual installments commencing one year following the date of grant. | ||||||||||||||
Compensation expense associated with the performance based awards under the Company’s equity incentive plans are initially based on the number of options expected to vest after assessing the probability that certain performance criteria will be met. Cumulative adjustments are recorded quarterly to reflect subsequent changes in the estimated outcome of performance-related conditions. The Company utilized the Black-Scholes option valuation model with the assumptions below to calculate stock compensation expense related to the performance based awards. Stock compensation expense recorded for these awards was not significant for the nine months ended December 31, 2013 and 2012, respectively. | ||||||||||||||
Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Expected life | 4.9 years | 5.0 years | ||||||||||||
Expected volatility | 37.7% - 43.5% | 41.7% - 45.0% | ||||||||||||
Expected dividends | 3.2% - 3.7% | 2.5% - 4.0% | ||||||||||||
Risk-free rate | 1.4% - 1.8% | 0.6% - 0.7% | ||||||||||||
Non-vested stock option award activity, including employee stock options and performance-based awards, during the nine months ended December 31, 2013 is summarized as follows: | ||||||||||||||
Non-Vested | Weighted- | |||||||||||||
Number of | Average | |||||||||||||
Shares | Grant-Date | |||||||||||||
Fair Value | ||||||||||||||
per Share | ||||||||||||||
Outstanding, April 1, 2013 | 804,340 | $ | 9.89 | |||||||||||
Granted | 469,000 | 5.19 | ||||||||||||
Vested | (113,340 | ) | 10.01 | |||||||||||
Forfeited/Canceled | (132,810 | ) | 9.8 | |||||||||||
Outstanding, December 31, 2013 | 1,027,190 | $ | 7.71 | |||||||||||
As of December 31, 2013, $5,986 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted-average period of 3.6 years. This amount does not include the cost of new options that may be granted in future periods or any changes in the Company’s forfeiture percentage. The total fair value of options vested during the nine months ended December 31, 2013 and 2012 was $1,134 and $1,641, respectively. | ||||||||||||||
Restricted Stock | ||||||||||||||
On May 22, 2013, the Board of Directors approved its 2014 Director Compensation Program, pursuant to which each non-employee director is to be awarded shares of restricted stock upon election or re-election to the Board of Directors. Additionally, as part of the 2014 equity incentive program, each executive officer received, as a component of his or her base salary, a grant of restricted stock. The shares of restricted stock are awarded under the 2005 Plan. Such shares of restricted stock vest in two equal, annual installments on the first and second anniversaries of the grant date and are nontransferable for one year following vesting. The weighted-average grant date fair value for the restricted stock was estimated using the market price of the common stock on the date of grant. The fair value of the restricted stock is amortized on a straight-line basis over the vesting period. | ||||||||||||||
The Company recorded compensation expense related to restricted stock of approximately $473 and $450 for the nine months ended December 31, 2013 and 2012, respectively. Restricted stock activity for the nine months ended December 31, 2013 is summarized as follows: | ||||||||||||||
Number of | Weighted- | |||||||||||||
Shares | Average | |||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
per Share | ||||||||||||||
Outstanding, April 1, 2013 | 30,385 | $ | 27.09 | |||||||||||
Granted | 57,324 | 20.75 | ||||||||||||
Vested | (15,635 | ) | 30.38 | |||||||||||
Canceled | (3,000 | ) | 24.81 | |||||||||||
Outstanding, December 31, 2013 | 69,074 | $ | 20.93 | |||||||||||
As of December 31, 2013, $1,109 of total unrecognized compensation costs related to restricted stock is expected to be recognized over a weighted-average period of 1.6 years. This amount does not include the cost of new restricted stock that may be granted in future periods. |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 9 Months Ended |
Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | ' |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
The Company had cash deposits at U.S. banks and financial institutions which exceeded federally insured limits at December 31, 2013. The Company is exposed to credit loss for amounts in excess of insured limits in the event of non-performance by the institutions; however, the Company does not anticipate non-performance by these institutions. |
Commitments_Guarantees_and_Con
Commitments, Guarantees and Contingencies | 9 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments, Guarantees and Contingencies | ' |
Commitments, Guarantees and Contingencies | |
Commitments and Guarantees | |
The Company's software license agreements include a performance guarantee that the Company's software products will substantially operate as described in the applicable program documentation for a period of 365 days after delivery. To date, the Company has not incurred any significant costs associated with its performance guarantee or other related warranties and does not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated with these warranties. Certain arrangements also include performance guarantees related to response time, availability for operational use, and other performance-related guarantees. Certain arrangements also include penalties in the form of maintenance credits should the performance of the software fail to meet the performance guarantees. To date, the Company has not incurred any significant costs associated with these warranties and does not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated with these warranties. | |
The Company has historically offered short-term rights of return in certain sales arrangements. If the Company is able to estimate returns for these types of arrangements and all other criteria for revenue recognition have been met, revenue is recognized and these arrangements are recorded in the consolidated financial statements. If the Company is unable to estimate returns for these types of arrangements, revenue is not recognized in the consolidated financial statements until the rights of return expire, provided also, that all other criteria of revenue recognition have been met. | |
Certain standard sales agreements contain a money back guarantee providing for a performance guarantee that is already part of the software license agreement as well as training and support. The money back guarantee also warrants that the software will remain robust and flexible to allow participation in the federal health incentive programs. The specific elements of the performance guarantee pertain to aspects of the software, which the Company has already tested and confirmed to consistently meet using the Company's existing software without any modifications or enhancements. To date, the Company has not incurred any costs associated with this guarantee and does not expect to incur significant costs in the future. Therefore, no accrual has been made for potential costs associated with this guarantee. | |
The Company's standard sales agreements contain an indemnification provision pursuant to which it shall indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any United States patent, any copyright or other intellectual property infringement claim by any third-party with respect to its software. As the Company has not incurred any significant costs to defend lawsuits or settle claims related to these indemnification agreements, the Company believes that its estimated exposure on these agreements is currently minimal. Accordingly, the Company has no liabilities recorded for these indemnification obligations. | |
Hussein Litigation | |
On October 7, 2013, a complaint was filed against the Company and certain of the Company’s officers and directors in the Superior Court of the State of California for the County of Orange, captioned Ahmed D. Hussein v. Sheldon Razin, Steven Plochocki, Quality Systems, Inc. and Does 1-10, inclusive, No. 30-2013-00679600-CU-NP-CJC, by Ahmed Hussein, a former director and significant shareholder of the Company. The complaint generally alleges fraud and deceit, constructive fraud, negligent misrepresentation and breach of fiduciary duty in connection with statements made to the Company’s shareholders regarding the Company’s financial condition and projected future performance. The complaint seeks actual damages, exemplary and punitive damages and costs. The Company believes that plaintiff’s claims are without merit and intends to defend against them vigorously. | |
Federal Securities Class Action | |
On November 19, 2013, a complaint was filed against the Company and certain of the Company’s officers and directors in the United States District Court for the Central District of California, captioned Deerfield Beach Police Pension Fund, individually and on behalf of all others similarly situated, v. Quality Systems, Inc., Steven T. Plochocki, Paul A. Holt and Sheldon Razin, No. SACV13-01818-CJC-JPRx, by the Deerfield Beach Police Pension Fund, a shareholder of the Company. The complaint is a putative class action filed on behalf of the shareholders of the Company other than the defendants. The complaint, which is substantially similar to the litigation described above under the caption “Hussein Litigation,” generally alleges that statements made to the Company’s shareholders regarding the Company’s financial condition and projected future performance were false and misleading in violation of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and that the individual defendants are liable for such statements because they are controlling persons under Section 20(a) of the Exchange Act. The complaint seeks compensatory damages, court costs and attorneys' fees. The Company believes that plaintiff’s claims are without merit and intends to defend against them vigorously. | |
Shareholder Derivative Litigation | |
On January 24, 2014, a complaint was filed against the Company and certain of the Company’s officers and current and former directors in the United States District Court for the Central District of California, captioned Timothy J. Foss, derivatively on behalf of himself and all others similarly situated, vs. Craig A. Barbarosh, George H. Bristol, James C. Malone, Peter M. Neupert, Morris Panner, D. Russell Pflueger, Steven T. Plochocki, Sheldon Razin, Lance E. Rosenzweig and Quality Systems, Inc., No. SACV14-00110-DOC-JPPx, by Timothy J. Foss, a shareholder of the Company. The complaint arises from the same allegations described above under the captions “Hussein Litigation” and “Federal Securities Class Action” and generally alleges breach of fiduciary duties, abuse of control and gross mismanagement by the Company’s directors, in addition to unjust enrichment and insider selling by individual directors. The complaint seeks compensatory damages, restitution and disgorgement of all profits, court costs, attorneys’ fees and implementation of enhanced corporate governance procedures. The Company believes that plaintiff’s claims are without merit and intends to defend against them vigorously. |
Operating_Segment_Information
Operating Segment Information | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating Segment Information | ' | ||||||||||||||||
Operating Segment Information | |||||||||||||||||
The Company has four reportable segments that are evaluated regularly by its chief decision making group (Chief Executive Officer, Chief Financial Officer and Chief Operating Officer) in deciding how to allocate resources and in assessing performance. | |||||||||||||||||
Operating segment data is as follows: | |||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue: | |||||||||||||||||
QSI Dental Division | $ | 5,082 | $ | 5,088 | $ | 15,137 | $ | 14,886 | |||||||||
NextGen Division | 83,881 | 85,757 | 250,117 | 259,277 | |||||||||||||
Hospital Solutions Division | 2,483 | 7,365 | 12,683 | 26,903 | |||||||||||||
RCM Services Division | 17,408 | 16,300 | 51,527 | 47,868 | |||||||||||||
Consolidated revenue | $ | 108,854 | $ | 114,510 | $ | 329,464 | $ | 348,934 | |||||||||
Operating income (loss): | |||||||||||||||||
QSI Dental Division | $ | 396 | $ | 1,265 | $ | 2,605 | $ | 2,413 | |||||||||
NextGen Division | 22,614 | 30,906 | 82,600 | 93,643 | |||||||||||||
Hospital Solutions Division (1) | (14,035 | ) | (1,334 | ) | (20,866 | ) | (152 | ) | |||||||||
RCM Services Division | 2,486 | 2,090 | 8,012 | 5,732 | |||||||||||||
Unallocated corporate expense (1) | (30,793 | ) | (9,543 | ) | (56,184 | ) | (30,401 | ) | |||||||||
Consolidated operating income (loss) | $ | (19,332 | ) | $ | 23,384 | $ | 16,167 | $ | 71,235 | ||||||||
______________________________ | |||||||||||||||||
(1) Refer to Note 4 for details on the impairment charge recorded in the current period | |||||||||||||||||
Management evaluates performance based upon stand-alone segment operating income. Because assets by segment are not reported to or used by the Company’s chief decision making group to allocate resources, or to assess performance, total assets by segment are not disclosed. | |||||||||||||||||
Effective April 1, 2013, the Company reorganized certain overhead related departments to unallocated corporate expense from the operating segments in an effort to centralize shared services functions and to be consistent with disaggregated financial information used by the Company's chief decision making group. The Company concluded the impact of the reorganization to prior year operating income was not material to the operating segments or unallocated corporate expense and is therefore not restated. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On January 22, 2014, the Board of Directors approved a quarterly cash dividend of $0.175 per share on the Company’s outstanding shares of common stock, payable to shareholders of record as of March 14, 2014 with an expected distribution date on or about April 4, 2014. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 9 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation. The consolidated financial statements include the accounts of Quality Systems, Inc. and its wholly-owned subsidiaries, which consist of NextGen Healthcare Information Systems, LLC (“NextGen”), NextGen RCM Services, LLC, Opus Healthcare Solutions, LLC (“Opus”), ViaTrack Systems, LLC (“ViaTrack”), Matrix Management Solutions, LLC ("Matrix"), QSI Management, LLC and Quality Systems India Healthcare Private Limited (“QSIH”) (collectively, the “Company”). Mirth Corporation (“Mirth”) is included in the consolidated financial statements from the date of acquisition (September 9, 2013). All intercompany accounts and transactions have been eliminated. | ||
Basis of Presentation | ' | |
Basis of Presentation. The accompanying unaudited consolidated financial statements as of December 31, 2013 and for the three and nine months ended December 31, 2013 and 2012 have been prepared in accordance with the requirements of Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Amounts related to disclosures of March 31, 2013 balances within these interim consolidated financial statements were derived from the aforementioned Form 10-K. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair presentation of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. | ||
References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. | ||
Revenue Recognition | ' | |
Revenue Recognition. The Company generates revenue from the sale of licensing rights to its software products directly to end-users and value-added resellers ("VARs"). The Company also generates revenue from sales of hardware and third-party software, implementation, training, electronic data interchange (“EDI”), post-contract support (maintenance) and other services, including revenue cycle management (“RCM”), performed for clients who license its products. | ||
A typical system contract contains multiple elements of the above items. Revenue earned on software arrangements involving multiple elements is allocated to each element based on the relative fair values of those elements. The fair value of an element is based on vendor-specific objective evidence (“VSOE”). The Company limits its assessment of VSOE for each element to either the price charged when the same element is sold separately or the price established by management having the relevant authority to do so for an element not yet sold separately. VSOE calculations are updated and reviewed quarterly or annually depending on the nature of the product or service. The Company generally establishes VSOE for the related undelivered elements based on the bell-shaped curve method. VSOE is established on maintenance for the Company's largest clients based on stated renewal rates only if the rate is determined to be substantive and falls within the Company's customary pricing practices. | ||
When evidence of fair value exists for the delivered and undelivered elements of a transaction, discounts for individual elements are aggregated and the total discount is allocated to the individual elements in proportion to the elements' fair value relative to the total contract fair value. | ||
When evidence of fair value exists for the undelivered elements only, the residual method is used. Under the residual method, the Company defers revenue related to the undelivered elements in a system sale based on VSOE of fair value of each of the undelivered elements and allocates the remainder of the contract price net of all discounts to revenue recognized from the delivered elements. If VSOE of fair value of any undelivered element does not exist, all revenue is deferred until VSOE of fair value of the undelivered element is established or the element has been delivered. | ||
Provided that fees are fixed or determinable and collection is considered probable, revenue from licensing rights and sales of hardware and third-party software is generally recognized upon physical or electronic shipment and transfer of title. In certain transactions where collection risk is high, the revenue is deferred until collection occurs or becomes probable. If the fee is not fixed or determinable, then the revenue recognized in each period (subject to application of other revenue recognition criteria) will be the lesser of the aggregate amounts due and payable or the amount of the arrangement fee that would have been recognized if the fees were being recognized using the residual method. Fees which are considered fixed or determinable at the inception of the Company's arrangements must be negotiated at the outset of an arrangement and generally be based on the specific volume of products to be delivered without being subject to change based on variable pricing mechanisms such as the number of units copied or distributed or the expected number of users. | ||
Revenue from implementation and training services is recognized as the corresponding services are performed. Maintenance revenue is recognized ratably over the contractual maintenance period. | ||
Contract accounting is applied where services include significant modification, development or customization. | ||
The Company ensures that the following criteria have been met prior to recognition of revenue: | ||
▪ | the price is fixed or determinable; | |
▪ | the customer is obligated to pay and there are no contingencies surrounding the obligation or the payment; | |
▪ | the customer's obligation would not change in the event of theft or damage to the product; | |
▪ | the customer has economic substance; | |
▪ | the amount of returns can be reasonably estimated; and | |
▪ | the Company does not have significant obligations for future performance in order to bring about resale of the product by the customer. | |
The Company has historically offered short-term rights of return in certain sales arrangements. If the Company is able to estimate returns for these types of arrangements, revenue is recognized, net of an allowance for returns, and these arrangements are recorded in the consolidated financial statements. If the Company is unable to estimate returns for these types of arrangements, revenue is not recognized in the consolidated financial statements until the rights of return expire, provided also, that all other criteria for revenue recognition have been met. | ||
Revenue related to sales arrangements that include hosting or the right to use software stored on the Company's hardware is recognized in accordance to the same revenue recognition criteria discussed above only if the customer has the contractual right to take possession of the software without incurring a significant penalty and it is feasible for the customer to either host the software themselves or through another third-party. Otherwise, the arrangement is accounted for as a service contract in which the entire arrangement is deferred and recognized over the period that the hosting services are being performed. | ||
From time to time, the Company offers future purchase discounts on its products and services as part of its sales arrangements. Such discounts that are incremental to the range of discounts reflected in the pricing of the other elements of the arrangement, that are incremental to the range of discounts typically given in comparable transactions, and that are significant, are treated as an additional element of the contract to be deferred. Amounts deferred related to future purchase options are not recognized until either the customer exercises the discount offer or the offer expires. | ||
RCM service revenue is derived from services fees, which include amounts charged for ongoing billing and other related services, and are generally billed to the customer as a percentage of total collections. The Company does not recognize revenue for services fees until these collections are made, as the services fees are not fixed or determinable until such time. | ||
Revenue is divided into two categories, “system sales” and “maintenance, EDI, RCM and other services.” Revenue in the system sales category includes software license fees, third-party hardware and software and implementation and training services related to purchase of the Company's software systems. Revenue in the maintenance, EDI, RCM and other services category includes maintenance, EDI, RCM services, consulting services, annual third-party license fees, hosting services, Software as a Service ("SaaS") fees and other services revenue. | ||
Goodwill | ' | |
Goodwill. The Company tests goodwill for impairment annually during its first fiscal quarter, referred to as the annual test date. The Company will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. An impairment loss would generally be recognized when the carrying amount of the reporting unit's net assets exceeds the estimated fair value of the reporting unit. | ||
Intangible Assets | ' | |
Intangible Assets. Intangible assets consist of customer relationships, trade names and contracts and certain software technology. These intangible assets are recorded at fair value and are stated net of accumulated amortization. The Company currently amortizes the intangible assets over periods ranging from six months to nine years using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed. The Company assesses the recoverability of intangible assets at least annually or whenever adverse events or changes in circumstances indicate that impairment may have occurred. If the future undiscounted cash flows expected to result from the use of the related assets are less than the carrying value of such assets, impairment has been incurred and a loss is recognized to reduce the carrying value of the intangible assets to fair value, which is determined by discounting estimated future cash flows. | ||
Software Development Costs | ' | |
Software Development Costs. Development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any additional external software development costs are capitalized and amortized on a straight-line basis over the estimated economic life of the related product, which is typically three years. The Company provides support services on the current and prior two versions of its software. Management performs an annual review of the estimated economic life and the recoverability of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. | ||
Recent Accounting Standards | ' | |
Recent Accounting Standards. New accounting pronouncements implemented by the Company during the current year or requiring implementation in future periods are discussed below or in the notes, where applicable. | ||
In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02). The new standard requires an entity to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income by component. The adoption of this guidance had no impact on the Company's consolidated financial statements, but may have an effect on the required disclosures for future reporting periods. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Stock-based compensation expense | ' | |||||||||||||||
The following table shows total share-based compensation expense included in the consolidated statements of comprehensive income (loss) for the three and nine months ended December 31, 2013 and 2012: | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue | $ | 90 | $ | 51 | $ | 253 | $ | 200 | ||||||||
Research and development costs | 100 | 76 | 231 | 209 | ||||||||||||
Selling, general and administrative | 517 | 456 | 1,348 | 1,557 | ||||||||||||
Total share-based compensation | 707 | 583 | 1,832 | 1,966 | ||||||||||||
Income tax benefit | (233 | ) | (174 | ) | (585 | ) | (621 | ) | ||||||||
Decrease in net income | $ | 474 | $ | 409 | $ | 1,247 | $ | 1,345 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value of assets and liabilities on a recurring basis | ' | |||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2013 and March 31, 2013: | ||||||||||||||||
Balance at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
December 31, | ||||||||||||||||
2013 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 82,101 | $ | 82,101 | $ | — | $ | — | ||||||||
Restricted cash | 4,079 | 4,079 | — | — | ||||||||||||
Marketable securities (2) | 11,888 | 11,888 | — | — | ||||||||||||
$ | 98,068 | $ | 98,068 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 14,539 | $ | — | $ | — | $ | 14,539 | ||||||||
$ | 14,539 | $ | — | $ | — | $ | 14,539 | |||||||||
Balance at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
March 31, | ||||||||||||||||
2013 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 105,999 | $ | 105,999 | $ | — | $ | — | ||||||||
Restricted cash | 5,488 | 5,488 | — | — | ||||||||||||
Marketable securities (2) | 12,012 | 12,012 | — | — | ||||||||||||
$ | 123,499 | $ | 123,499 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 5,336 | $ | — | $ | — | $ | 5,336 | ||||||||
$ | 5,336 | $ | — | $ | — | $ | 5,336 | |||||||||
___________________________________ | ||||||||||||||||
(1) Cash equivalents consists of money market funds. | ||||||||||||||||
(2) Marketable securities consist of fixed-income securities. | ||||||||||||||||
Company's assets and liabilities measured at fair value using significant unobservable inputs (Level 3) | ' | |||||||||||||||
The following table presents activity in the Company’s financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the nine months ended December 31, 2013: | ||||||||||||||||
Total Liabilities | ||||||||||||||||
Balance as of April 1, 2013 | $ | 5,336 | ||||||||||||||
Acquisitions (Note 3) | 13,307 | |||||||||||||||
Earnout payments | (3,720 | ) | ||||||||||||||
Fair value adjustments | (384 | ) | ||||||||||||||
Balance as of December 31, 2013 | $ | 14,539 | ||||||||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 9 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Preliminary purchase price | ' | |||
The total preliminary purchase price for the Mirth acquisition is summarized as follows: | ||||
Mirth | ||||
Cash paid | $ | 35,033 | ||
Common stock issued at fair value | 7,882 | |||
Contingent consideration | 13,307 | |||
Total purchase price | $ | 56,222 | ||
Summary of purchase price allocation | ' | |||
The following table summarizes the preliminary purchase price allocation for the Mirth acquisition: | ||||
Mirth | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | ||||
Current assets (including accounts receivable of $4,283) | $ | 4,905 | ||
Equipment and improvements | 828 | |||
Accounts payable and accrued liabilities | (747 | ) | ||
Deferred revenues | (5,802 | ) | ||
Total net tangible assets acquired and (liabilities) assumed | (816 | ) | ||
Fair value of identifiable intangible assets acquired: | ||||
Trade name | 1,350 | |||
Customer relationships | 2,800 | |||
Software technology | 22,200 | |||
Goodwill | 30,688 | |||
Total identifiable intangible assets acquired | 57,038 | |||
Total purchase price | $ | 56,222 | ||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Summary of Goodwill | ' | |||||||||||||||
Goodwill by division consists of the following: | ||||||||||||||||
March 31, | Acquisitions | Impairment | December 31, | |||||||||||||
2013 | 2013 | |||||||||||||||
QSI Dental Division (1) | $ | 7,289 | $ | — | $ | — | $ | 7,289 | ||||||||
NextGen Division | 1,840 | 30,688 | — | 32,528 | ||||||||||||
Hospital Solutions Division | 4,342 | — | (4,342 | ) | — | |||||||||||
RCM Services Division | 32,290 | — | — | 32,290 | ||||||||||||
Total goodwill | $ | 45,761 | $ | 30,688 | $ | (4,342 | ) | $ | 72,107 | |||||||
(1) QSI Dental Division goodwill is presented on a basis consistent with that of the management reporting structures within QSI. For the purposes of testing goodwill for impairment annually and as otherwise may be required; however, the QSI Dental Division goodwill is allocated to all business units that derive cash flows from the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of such goodwill being ascribed to the NextGen Division. | ||||||||||||||||
Summary of Impairment Charges | ' | |||||||||||||||
In aggregate, the Hospital reporting unit's impairment charge relating to goodwill, capitalized software development costs, customer relationships and acquired software technology intangible assets was $25,971 for the third quarter of fiscal 2014, as summarized below: | ||||||||||||||||
Goodwill | Intangible | Capitalized | Total | |||||||||||||
Assets | Software Costs | |||||||||||||||
Cost of revenue: | ||||||||||||||||
Software and hardware - Hospital Solutions Division | $ | — | $ | — | $ | 9,075 | $ | 9,075 | ||||||||
Software and hardware - unallocated corporate expenses | — | 11,023 | — | 11,023 | ||||||||||||
Total impairment in cost of revenue | — | 11,023 | 9,075 | 20,098 | ||||||||||||
Operating expenses: | ||||||||||||||||
Impairment of goodwill and other assets - unallocated corporate expenses | 4,342 | 1,531 | — | 5,873 | ||||||||||||
Total impairment in operating expenses | 4,342 | 1,531 | — | 5,873 | ||||||||||||
Total impairment of goodwill and other assets | $ | 4,342 | $ | 12,554 | $ | 9,075 | $ | 25,971 | ||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangible assets, other than capitalized software development costs | ' | |||||||||||||||
The Company’s definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Gross carrying amount | $ | 22,050 | $ | 3,368 | $ | 23,510 | $ | 48,928 | ||||||||
Accumulated amortization | (10,857 | ) | (1,449 | ) | (1,616 | ) | (13,922 | ) | ||||||||
Net intangible assets | $ | 11,193 | $ | 1,919 | $ | 21,894 | $ | 35,006 | ||||||||
March 31, 2013 | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Gross carrying amount | $ | 23,156 | $ | 2,018 | $ | 20,509 | $ | 45,683 | ||||||||
Accumulated amortization | (10,028 | ) | (1,112 | ) | (6,993 | ) | (18,133 | ) | ||||||||
Net intangible assets | $ | 13,128 | $ | 906 | $ | 13,516 | $ | 27,550 | ||||||||
Activity related to the intangible assets | ' | |||||||||||||||
Activity related to the intangible assets for the nine months ended December 31, 2013 and 2012 is summarized as follows: | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Balance as of April 1, 2013 | $ | 13,128 | $ | 906 | $ | 13,516 | $ | 27,550 | ||||||||
Acquisition | 2,800 | 1,350 | 22,200 | 26,350 | ||||||||||||
Amortization (1) | (3,204 | ) | (337 | ) | (2,799 | ) | (6,340 | ) | ||||||||
Impairment (2) | (1,531 | ) | — | (11,023 | ) | (12,554 | ) | |||||||||
Balance as of December 31, 2013 | $ | 11,193 | $ | 1,919 | $ | 21,894 | $ | 35,006 | ||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Balance as of April 1, 2012 | $ | 7,805 | $ | 162 | $ | 15,292 | $ | 23,259 | ||||||||
Acquisition | 9,450 | 1,250 | 1,150 | 11,850 | ||||||||||||
Amortization (1) | (3,075 | ) | (424 | ) | (2,195 | ) | (5,694 | ) | ||||||||
Balance as of December 31, 2012 | $ | 14,180 | $ | 988 | $ | 14,247 | $ | 29,415 | ||||||||
_______________________________ | ||||||||||||||||
(1) Amortization of the customer relationships and the trade name & contracts intangible assets is included in operating expenses and amortization of the software technology intangible assets is included in cost of revenue for software and hardware. | ||||||||||||||||
Estimated amortization of intangible assets with determinable lives | ' | |||||||||||||||
The following table represents the remaining estimated amortization of definite-lived intangible assets as of December 31, 2013: | ||||||||||||||||
For the year ended March 31, | ||||||||||||||||
2014 (remaining three months) | $ | 1,985 | ||||||||||||||
2015 | 7,171 | |||||||||||||||
2016 | 7,024 | |||||||||||||||
2017 | 6,553 | |||||||||||||||
2018 | 4,301 | |||||||||||||||
2019 and beyond | 7,972 | |||||||||||||||
Total | $ | 35,006 | ||||||||||||||
Capitalized_Software_Costs_Tab
Capitalized Software Costs (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Research and Development [Abstract] | ' | |||||||
Capitalized software development costs | ' | |||||||
The Company’s capitalized software development costs are summarized as follows: | ||||||||
December 31, | March 31, 2013 | |||||||
2013 | ||||||||
Gross carrying amount | $ | 98,587 | $ | 94,676 | ||||
Accumulated amortization | (58,320 | ) | (54,895 | ) | ||||
Net capitalized software costs | $ | 40,267 | $ | 39,781 | ||||
Activity related to net capitalized software costs | ' | |||||||
Activity related to net capitalized software costs for the nine months ended December 31, 2013 and 2012 is summarized as follows: | ||||||||
2013 | 2012 | |||||||
Balance as of April 1 | $ | 39,781 | $ | 19,994 | ||||
Capitalized | 18,914 | 20,148 | ||||||
Amortization | (9,353 | ) | (7,261 | ) | ||||
Impairment (1) | (9,075 | ) | — | |||||
Balance as of December 31 | $ | 40,267 | $ | 32,881 | ||||
____________________________ | ||||||||
(1) Refer to Note 4 for details on the impairment charge recorded in the current period | ||||||||
Estimated amortization of capitalized software costs | ' | |||||||
The following table presents the remaining estimated amortization of capitalized software costs as of December 31, 2013. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates. | ||||||||
For the year ended March 31, | ||||||||
2014 (remaining three months) | $ | 2,600 | ||||||
2015 | 10,200 | |||||||
2016 | 8,500 | |||||||
2017 | 8,300 | |||||||
2018 | 5,700 | |||||||
2019 and beyond | 4,967 | |||||||
Total | $ | 40,267 | ||||||
Composition_of_Certain_Financi1
Composition of Certain Financial Statement Captions (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Summary of Accounts Receivable | ' | |||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Accounts receivable, gross | $ | 136,386 | $ | 160,080 | ||||
Allowance for doubtful accounts | (10,088 | ) | (11,823 | ) | ||||
Accounts receivable, net | $ | 126,298 | $ | 148,257 | ||||
Summary of Inventories | ' | |||||||
Inventories are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Computer systems and components | $ | 928 | $ | 710 | ||||
Inventories | $ | 928 | $ | 710 | ||||
Summary of Equipment and improvements | ' | |||||||
Equipment and improvements are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Computer equipment | $ | 36,224 | $ | 31,633 | ||||
Furniture and fixtures | 9,251 | 8,416 | ||||||
Leasehold improvements | 9,975 | 7,125 | ||||||
55,450 | 47,174 | |||||||
Accumulated depreciation and amortization | (31,184 | ) | (25,287 | ) | ||||
Equipment and improvements, net | $ | 24,266 | $ | 21,887 | ||||
Summary of Current and non-current deferred revenue | ' | |||||||
Current and non-current deferred revenue are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Maintenance | $ | 16,337 | $ | 12,085 | ||||
Implementation services | 33,476 | 36,899 | ||||||
Annual license services | 10,051 | 9,906 | ||||||
Undelivered software, subscriptions and other | 12,862 | 6,317 | ||||||
Deferred revenue | $ | 72,726 | $ | 65,207 | ||||
Deferred revenue, net of current | $ | 2,087 | $ | 1,219 | ||||
Summary of Accrued compensation and related benefits | ' | |||||||
Accrued compensation and related benefits are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Payroll, bonus and commission | $ | 4,805 | $ | 3,842 | ||||
Vacation | 8,887 | 8,073 | ||||||
Accrued compensation and related benefits | $ | 13,692 | $ | 11,915 | ||||
Summary of Other current liabilities | ' | |||||||
Other current and non-current liabilities are summarized as follows: | ||||||||
December 31, | March 31, | |||||||
2013 | 2013 | |||||||
Contingent consideration and other liabilities related to acquisitions | $ | 8,241 | $ | 8,426 | ||||
Care services liabilities | 4,079 | 5,488 | ||||||
Accrued consulting | 2,766 | 2,602 | ||||||
Accrued EDI expense | 2,506 | 1,452 | ||||||
Users group meeting deposits | 2,236 | — | ||||||
Self insurance reserve | 1,589 | 1,336 | ||||||
Accrued royalties | 1,285 | 1,331 | ||||||
Deferred rent | 911 | 689 | ||||||
Sales tax payable | 464 | 869 | ||||||
Accrued travel | 271 | 384 | ||||||
Outside commission payable | 267 | 461 | ||||||
Customer deposits | 60 | 262 | ||||||
Other accrued expenses | 3,072 | 3,208 | ||||||
Other current liabilities | $ | 27,747 | $ | 26,508 | ||||
Contingent consideration and other liabilities related to acquisitions | $ | 6,798 | $ | 1,382 | ||||
Deferred rent | 3,705 | 2,448 | ||||||
Income tax payable | 1,237 | — | ||||||
Other liabilities | — | 119 | ||||||
Other non-current liabilities | $ | 11,740 | $ | 3,949 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Weighted-average shares outstanding for basic and diluted net income per share | ' | |||||||||||||||
The Company provides presentation of “basic” and “diluted” earnings per share (“EPS”). Shares discussed below are in thousands. | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) | $ | (12,587 | ) | $ | 15,626 | $ | 10,479 | $ | 46,814 | |||||||
Basic net income (loss) per share: | ||||||||||||||||
Weighted-average shares outstanding — Basic | 60,173 | 59,400 | 59,823 | 59,343 | ||||||||||||
Basic net income (loss) per common share | $ | (0.21 | ) | $ | 0.26 | $ | 0.18 | $ | 0.79 | |||||||
Net income (loss) | $ | (12,587 | ) | $ | 15,626 | $ | 10,479 | $ | 46,814 | |||||||
Diluted net income (loss) per share: | ||||||||||||||||
Weighted-average shares outstanding — Basic | 60,173 | 59,400 | 59,823 | 59,343 | ||||||||||||
Effect of potentially dilutive securities | — | 5 | 161 | 68 | ||||||||||||
Weighted-average shares outstanding — Diluted | 60,173 | 59,405 | 59,984 | 59,411 | ||||||||||||
Diluted net income (loss) per common share | $ | (0.21 | ) | $ | 0.26 | $ | 0.17 | $ | 0.79 | |||||||
Share_Based_Awards_Tables
Share Based Awards (Tables) | 9 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Summary of Stock Option Activity | ' | |||||||||||||
A summary of stock option transactions during the nine months ended December 31, 2013 follows: | ||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | (in thousands) | ||||||||||||
per Share | Life (years) | |||||||||||||
Outstanding, April 1, 2013 | 1,159,183 | $ | 30.54 | 5.5 | ||||||||||
Granted | 469,000 | 18.76 | 7.5 | |||||||||||
Exercised | (111,272 | ) | 19.78 | 0.6 | $ | 142 | ||||||||
Forfeited/Canceled | (132,810 | ) | 31.58 | 5.2 | ||||||||||
Outstanding, December 31, 2013 | 1,384,101 | $ | 27.75 | 6.1 | $ | 1,210 | ||||||||
Vested and expected to vest, December 31, 2013 | 1,298,337 | $ | 27.86 | 6 | $ | 1,109 | ||||||||
Exercisable, December 31, 2013 | 356,911 | $ | 32.29 | 4.6 | $ | 3 | ||||||||
Schedule of Share Based Compensation Valuation Assumption | ' | |||||||||||||
The Company utilizes the Black-Scholes valuation model for estimating the fair value of share-based compensation with the following assumptions: | ||||||||||||||
Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Expected life | 4.9 years | 5.0 years | ||||||||||||
Expected volatility | 43.4% - 43.7% | 41.3% - 45.1% | ||||||||||||
Expected dividends | 3.1% - 3.9% | 2.4% - 4.0% | ||||||||||||
Risk-free rate | 1.0% - 1.5% | 0.7% - 0.8% | ||||||||||||
Summary of stock options granted | ' | |||||||||||||
A summary of stock options granted under the 2005 Plan during fiscal years 2014 and 2013 is as follows: | ||||||||||||||
Number of | Vesting | |||||||||||||
Option Grant Date | Shares | Exercise Price | Terms (1) | Expires | ||||||||||
August 15, 2013 | 85,000 | $ | 20.85 | Five years | August 15, 2021 | |||||||||
July 30, 2013 | 28,000 | $ | 22.59 | Five years | July 30, 2021 | |||||||||
May 29, 2013 | 356,000 | $ | 17.95 | Five years | May 29, 2021 | |||||||||
Fiscal year 2014 option grants | 469,000 | |||||||||||||
January 23, 2013 | 40,000 | $ | 19 | Five years | January 23, 2021 | |||||||||
November 5, 2012 | 5,000 | $ | 17.68 | Five years | November 5, 2020 | |||||||||
September 25, 2012 | 20,000 | $ | 18.42 | Five years | September 25, 2020 | |||||||||
May 24, 2012 | 346,000 | $ | 29.17 | Five years | May 24, 2020 | |||||||||
May 24, 2012 | 30,000 | $ | 29.17 | Four years | May 24, 2020 | |||||||||
May 23, 2012 | 115,500 | $ | 29.45 | Five years | May 23, 2020 | |||||||||
Fiscal year 2013 option grants | 556,500 | |||||||||||||
__________________________________ | ||||||||||||||
(1) Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant. | ||||||||||||||
Schedule of Performance Based Awards Under Incentive plan | ' | |||||||||||||
The Company utilized the Black-Scholes option valuation model with the assumptions below to calculate stock compensation expense related to the performance based awards. Stock compensation expense recorded for these awards was not significant for the nine months ended December 31, 2013 and 2012, respectively. | ||||||||||||||
Nine Months Ended December 31, 2013 | Nine Months Ended December 31, 2012 | |||||||||||||
Expected life | 4.9 years | 5.0 years | ||||||||||||
Expected volatility | 37.7% - 43.5% | 41.7% - 45.0% | ||||||||||||
Expected dividends | 3.2% - 3.7% | 2.5% - 4.0% | ||||||||||||
Risk-free rate | 1.4% - 1.8% | 0.6% - 0.7% | ||||||||||||
Schedule of Employee Stock Options and Performance Based Awards by Nonvested Stock options | ' | |||||||||||||
Non-vested stock option award activity, including employee stock options and performance-based awards, during the nine months ended December 31, 2013 is summarized as follows: | ||||||||||||||
Non-Vested | Weighted- | |||||||||||||
Number of | Average | |||||||||||||
Shares | Grant-Date | |||||||||||||
Fair Value | ||||||||||||||
per Share | ||||||||||||||
Outstanding, April 1, 2013 | 804,340 | $ | 9.89 | |||||||||||
Granted | 469,000 | 5.19 | ||||||||||||
Vested | (113,340 | ) | 10.01 | |||||||||||
Forfeited/Canceled | (132,810 | ) | 9.8 | |||||||||||
Outstanding, December 31, 2013 | 1,027,190 | $ | 7.71 | |||||||||||
Restricted stock units award activity | ' | |||||||||||||
Restricted stock activity for the nine months ended December 31, 2013 is summarized as follows: | ||||||||||||||
Number of | Weighted- | |||||||||||||
Shares | Average | |||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
per Share | ||||||||||||||
Outstanding, April 1, 2013 | 30,385 | $ | 27.09 | |||||||||||
Granted | 57,324 | 20.75 | ||||||||||||
Vested | (15,635 | ) | 30.38 | |||||||||||
Canceled | (3,000 | ) | 24.81 | |||||||||||
Outstanding, December 31, 2013 | 69,074 | $ | 20.93 | |||||||||||
Operating_Segment_Information_
Operating Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating segment data | ' | ||||||||||||||||
Operating segment data is as follows: | |||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue: | |||||||||||||||||
QSI Dental Division | $ | 5,082 | $ | 5,088 | $ | 15,137 | $ | 14,886 | |||||||||
NextGen Division | 83,881 | 85,757 | 250,117 | 259,277 | |||||||||||||
Hospital Solutions Division | 2,483 | 7,365 | 12,683 | 26,903 | |||||||||||||
RCM Services Division | 17,408 | 16,300 | 51,527 | 47,868 | |||||||||||||
Consolidated revenue | $ | 108,854 | $ | 114,510 | $ | 329,464 | $ | 348,934 | |||||||||
Operating income (loss): | |||||||||||||||||
QSI Dental Division | $ | 396 | $ | 1,265 | $ | 2,605 | $ | 2,413 | |||||||||
NextGen Division | 22,614 | 30,906 | 82,600 | 93,643 | |||||||||||||
Hospital Solutions Division (1) | (14,035 | ) | (1,334 | ) | (20,866 | ) | (152 | ) | |||||||||
RCM Services Division | 2,486 | 2,090 | 8,012 | 5,732 | |||||||||||||
Unallocated corporate expense (1) | (30,793 | ) | (9,543 | ) | (56,184 | ) | (30,401 | ) | |||||||||
Consolidated operating income (loss) | $ | (19,332 | ) | $ | 23,384 | $ | 16,167 | $ | 71,235 | ||||||||
______________________________ | |||||||||||||||||
(1) Refer to Note 4 for details on the impairment charge recorded in the current period |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |||
Hospital Solutions Division [Member] | Hospital Solutions Division [Member] | Hospital Solutions Division [Member] | Hospital Solutions Division [Member] | |||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||
Goodwill impairment charges | $4,342,000 | ' | ' | ' | $4,342,000 | $17,400,000 | ' | $4,342,000 | ||
Goodwill | 72,107,000 | ' | 45,761,000 | ' | 0 | 4,342,000 | ' | 0 | ||
Capitalized computer software impairments | 9,075,000 | [1] | 0 | [1] | ' | ' | 9,075,000 | ' | 9,075,000 | ' |
Impairment of intangible assets | 12,554,000 | [1] | ' | ' | ' | 12,554,000 | ' | 12,554,000 | ' | |
Capitalized Computer Software, Net | $40,267,000 | $32,881,000 | $39,781,000 | $19,994,000 | $0 | ' | ' | $0 | ||
[1] | Refer to Note 4 for details on the impairment charge recorded in the current period |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Costs and expenses: | ' | ' | ' | ' |
Total share-based compensation | $707 | $583 | $1,832 | $1,966 |
Software and hardware charges | -27,398 | -4,660 | -37,111 | -16,055 |
Income tax benefit | -233 | -174 | -585 | -621 |
Decrease in net income | -474 | -409 | -1,247 | -1,345 |
Cost of revenue [Member] | ' | ' | ' | ' |
Costs and expenses: | ' | ' | ' | ' |
Total share-based compensation | 90 | 51 | ' | ' |
Software and hardware charges | ' | ' | -253 | -200 |
Research and development costs [Member] | ' | ' | ' | ' |
Costs and expenses: | ' | ' | ' | ' |
Total share-based compensation | 100 | 76 | ' | ' |
Software and hardware charges | ' | ' | -231 | -209 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Costs and expenses: | ' | ' | ' | ' |
Total share-based compensation | 517 | 456 | ' | ' |
Software and hardware charges | ' | ' | ($1,348) | ($1,557) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Mar. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $82,101 | [1] | $105,999 | [1] |
Restricted cash | 4,079 | 5,488 | ||
Marketable securities | 11,888 | [2] | 12,012 | [2] |
Total | 98,068 | 123,499 | ||
LIABILITIES | ' | ' | ||
Contingent consideration related to acquisitions | 14,539 | 5,336 | ||
Total | 14,539 | 5,336 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 82,101 | [1] | 105,999 | [1] |
Restricted cash | 4,079 | 5,488 | ||
Marketable securities | 11,888 | [2] | 12,012 | [2] |
Total | 98,068 | 123,499 | ||
LIABILITIES | ' | ' | ||
Contingent consideration related to acquisitions | 0 | 0 | ||
Total | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 0 | [1] | 0 | [1] |
Restricted cash | 0 | 0 | ||
Marketable securities | 0 | [2] | 0 | [2] |
Total | 0 | 0 | ||
LIABILITIES | ' | ' | ||
Contingent consideration related to acquisitions | 0 | 0 | ||
Total | 0 | 0 | ||
Unobservable Inputs (Level 3) | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 0 | [1] | 0 | [1] |
Restricted cash | 0 | 0 | ||
Marketable securities | 0 | [2] | 0 | [2] |
Total | 0 | 0 | ||
LIABILITIES | ' | ' | ||
Contingent consideration related to acquisitions | 14,539 | 5,336 | ||
Total | $14,539 | $5,336 | ||
[1] | Cash equivalents consists of money market funds. | |||
[2] | Marketable securities consist of fixed-income securities. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Company's assets measured at fair value using significant unobservable inputs (Level 3) | ' |
Balance at April 1, 2013 | $5,336 |
Acquisitions | 13,307 |
Earnout payments | -3,720 |
Fair value adjustments | -384 |
Balance at June 30, 2013 | $14,539 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details Textual) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Fair Value Measurements (Textual) | ' |
Fair Value Adjustments | $0 |
Business_Combinations_Details
Business Combinations (Details) (Mirth [Member], USD $) | 0 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Mirth [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Cash paid | $35,033 | $35,033 | $0 |
Common stock issued at fair value | 7,882 | 7,882 | ' |
Contingent consideration | 13,307 | 13,307 | ' |
Total purchase price | $56,222 | ' | ' |
Business_Combinations_Details_
Business Combinations (Details 1) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Sep. 09, 2013 | Sep. 09, 2013 | Sep. 09, 2013 | Sep. 09, 2013 |
In Thousands, unless otherwise specified | Mirth [Member] | Mirth [Member] | Mirth [Member] | Mirth [Member] | ||
Trade Name [Member] | Customer Relationships [Member] | Software Technology [Member] | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | ' | ' | ' | ' | ' | ' |
Current assets (including accounts receivable of $4,283) | ' | ' | $4,905 | ' | ' | ' |
Equipment and improvements | ' | ' | 828 | ' | ' | ' |
Accounts payable and accrued liabilities | ' | ' | -747 | ' | ' | ' |
Deferred revenues | ' | ' | -5,802 | ' | ' | ' |
Total net tangible assets acquired and (liabilities) assumed | ' | ' | -816 | ' | ' | ' |
Fair value of identifiable intangible assets acquired: | ' | ' | ' | ' | ' | ' |
Identifiable intagnible assets | ' | ' | 26,350 | 1,350 | 2,800 | 22,200 |
Goodwill | 72,107 | 45,761 | 30,688 | ' | ' | ' |
Total identifiable intangible assets acquired | ' | ' | 57,038 | ' | ' | ' |
Total purchase price | ' | ' | 56,222 | ' | ' | ' |
Accounts receivable acquired | ' | ' | $4,283 | ' | ' | ' |
Business_Combinations_Details_1
Business Combinations (Details Textual) (Mirth [Member], USD $) | 0 Months Ended | 3 Months Ended |
Sep. 09, 2013 | Dec. 31, 2013 | |
Mirth [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total purchase price | $56,222,000 | ' |
Period for contingent consideration payable | '3 years | ' |
Contingent consideration | 13,307,000 | 13,307,000 |
Period for tax benefit | '15 years | ' |
Measurement period adjustment to working capital | ' | $200,000 |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | ' | ' | $45,761 | ||
Acquisitions | ' | ' | 30,688 | ||
Impairment | ' | ' | -4,342 | ||
Goodwill, end of period | 72,107 | ' | 72,107 | ||
QSI Dental Division [Member] | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | ' | ' | 7,289 | [1] | |
Acquisitions | ' | ' | 0 | [1] | |
Impairment | ' | ' | 0 | [1] | |
Goodwill, end of period | 7,289 | [1] | ' | 7,289 | [1] |
NextGen Division [Member] | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | ' | ' | 1,840 | ||
Acquisitions | ' | ' | 30,688 | ||
Impairment | ' | ' | 0 | ||
Goodwill, end of period | 32,528 | ' | 32,528 | ||
Hospital Solutions Division [Member] | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | ' | ' | 4,342 | ||
Acquisitions | ' | ' | 0 | ||
Impairment | -4,342 | -17,400 | -4,342 | ||
Goodwill, end of period | 0 | 4,342 | 0 | ||
RCM Services Division [Member] | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | ' | ' | 32,290 | ||
Acquisitions | ' | ' | 0 | ||
Impairment | ' | ' | 0 | ||
Goodwill, end of period | $32,290 | ' | $32,290 | ||
[1] | QSI Dental Division goodwill is presented on a basis consistent with that of the management reporting structures within QSI. For the purposes of testing goodwill for impairment annually and as otherwise may be required; however, the QSI Dental Division goodwill is allocated to all business units that derive cash flows from the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of such goodwill being ascribed to the NextGen Division. |
Goodwill_Details_1
Goodwill (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | $25,971 | $25,971 | $0 |
Intangible Assets [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 12,554 | ' | ' |
Goodwill [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 4,342 | ' | ' |
Capitalized Software Costs [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 9,075 | ' | ' |
Cost of Revenue [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 20,098 | ' | ' |
Cost of Revenue [Member] | Hospital Solutions Division [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 9,075 | ' | ' |
Cost of Revenue [Member] | Unallocated Corporate Expenses [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 11,023 | ' | ' |
Cost of Revenue [Member] | Intangible Assets [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 11,023 | ' | ' |
Cost of Revenue [Member] | Intangible Assets [Member] | Unallocated Corporate Expenses [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 11,023 | ' | ' |
Cost of Revenue [Member] | Capitalized Software Costs [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 9,075 | ' | ' |
Cost of Revenue [Member] | Capitalized Software Costs [Member] | Hospital Solutions Division [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 9,075 | ' | ' |
Operating Expense [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 5,873 | ' | ' |
Operating Expense [Member] | Unallocated Corporate Expenses [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 5,873 | ' | ' |
Operating Expense [Member] | Intangible Assets [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 1,531 | ' | ' |
Operating Expense [Member] | Intangible Assets [Member] | Unallocated Corporate Expenses [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 1,531 | ' | ' |
Operating Expense [Member] | Goodwill [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | 4,342 | ' | ' |
Operating Expense [Member] | Goodwill [Member] | Unallocated Corporate Expenses [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Asset impairment charges | $4,342 | ' | ' |
Goodwill_Details_Textual
Goodwill (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |||
Hospital Solutions Division [Member] | Hospital Solutions Division [Member] | Hospital Solutions Division [Member] | Hospital Solutions Division [Member] | ||||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percent of goodwill expected to be deductible for income tax purposes | 70.00% | ' | 70.00% | ' | ' | ' | ' | ' | ' | ||
Goodwill impairment charges | ' | ' | $4,342,000 | ' | ' | $4,342,000 | $17,400,000 | ' | $4,342,000 | ||
Goodwill | 72,107,000 | 45,761,000 | 72,107,000 | ' | ' | 0 | 4,342,000 | ' | 0 | ||
Impairment of intangible assets | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ||
Capitalized software costs, fair value | ' | ' | ' | ' | ' | 0 | ' | ' | 0 | ||
Capitalized computer software impairments | ' | ' | 9,075,000 | [1] | 0 | [1] | ' | 9,075,000 | ' | 9,075,000 | ' |
Intangible assets, fair value | ' | ' | ' | ' | ' | 0 | ' | ' | 0 | ||
Impairment charges | ' | ' | 12,554,000 | [1] | ' | ' | 12,554,000 | ' | 12,554,000 | ' | |
Net intangible assets | 35,006,000 | 27,550,000 | 35,006,000 | 29,415,000 | 23,259,000 | 0 | ' | ' | 0 | ||
Goodwill, fair value | ' | ' | ' | ' | ' | 0 | ' | ' | 0 | ||
Asset impairment charges | $25,971,000 | ' | $25,971,000 | $0 | ' | ' | ' | ' | ' | ||
[1] | Refer to Note 4 for details on the impairment charge recorded in the current period |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 |
Intangible assets, other than capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | $48,928,000 | $45,683,000 | ' | ' |
Accumulated amortization | -13,922,000 | -18,133,000 | ' | ' |
Net intangible assets | 35,006,000 | 27,550,000 | 29,415,000 | 23,259,000 |
Customer Relationships [Member] | ' | ' | ' | ' |
Intangible assets, other than capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | 22,050,000 | 23,156,000 | ' | ' |
Accumulated amortization | -10,857,000 | -10,028,000 | ' | ' |
Net intangible assets | 11,193,000 | 13,128,000 | 14,180,000 | 7,805,000 |
Trade Name & Contracts [Member] | ' | ' | ' | ' |
Intangible assets, other than capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | 3,368,000 | 2,018,000 | ' | ' |
Accumulated amortization | -1,449,000 | -1,112,000 | ' | ' |
Net intangible assets | 1,919,000 | 906,000 | 988,000 | 162,000 |
Software Technology [Member] | ' | ' | ' | ' |
Intangible assets, other than capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | 23,510,000 | 20,509,000 | ' | ' |
Accumulated amortization | -1,616,000 | -6,993,000 | ' | ' |
Net intangible assets | $21,894,000 | $13,516,000 | $14,247,000 | $15,292,000 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | 9 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Activity Related to the intangible assets | ' | ' | ||
Balance at beginning of period | $27,550,000 | $23,259,000 | ||
Acquisition | 26,350,000 | 11,850,000 | ||
Amortization | -6,340,000 | [1] | -5,694,000 | [1] |
Impairment | -12,554,000 | [2] | ' | |
Balance at end of period | 35,006,000 | 29,415,000 | ||
Customer Relationships [Member] | ' | ' | ||
Activity Related to the intangible assets | ' | ' | ||
Balance at beginning of period | 13,128,000 | 7,805,000 | ||
Acquisition | 2,800,000 | 9,450,000 | ||
Amortization | -3,204,000 | [1] | -3,075,000 | [1] |
Impairment | 1,531,000 | [2] | ' | |
Balance at end of period | 11,193,000 | 14,180,000 | ||
Trade Name & Contracts [Member] | ' | ' | ||
Activity Related to the intangible assets | ' | ' | ||
Balance at beginning of period | 906,000 | 162,000 | ||
Acquisition | 1,350,000 | 1,250,000 | ||
Amortization | -337,000 | [1] | -424,000 | [1] |
Impairment | 0 | [2] | ' | |
Balance at end of period | 1,919,000 | 988,000 | ||
Software Technology [Member] | ' | ' | ||
Activity Related to the intangible assets | ' | ' | ||
Balance at beginning of period | 13,516,000 | 15,292,000 | ||
Acquisition | 22,200,000 | 1,150,000 | ||
Amortization | -2,799,000 | [1] | -2,195,000 | [1] |
Impairment | -11,023,000 | [2] | ' | |
Balance at end of period | $21,894,000 | $14,247,000 | ||
[1] | Amortization of the customer relationships and the trade name & contracts intangible assets is included in operating expenses and amortization of the software technology intangible assets is included in cost of revenue for software and hardware. | |||
[2] | Refer to Note 4 for details on the impairment charge recorded in the current period |
Intangible_Assets_Details_2
Intangible Assets (Details 2) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Estimated amortization of intangible assets with determinable lives | ' | ' | ' | ' |
2014 (remaining three months) | $1,985 | ' | ' | ' |
2015 | 7,171 | ' | ' | ' |
2016 | 7,024 | ' | ' | ' |
2017 | 6,553 | ' | ' | ' |
2018 | 4,301 | ' | ' | ' |
2019 and beyond | 7,972 | ' | ' | ' |
Net intangible assets | $35,006 | $27,550 | $29,415 | $23,259 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Sep. 09, 2013 |
Customer Relationships [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Weighted average amortization period | '5 years |
Mirth [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Identifiable intagnible assets | 26,350 |
Weighted average amortization period | '6 years 8 months 12 days |
Percentage of acquired intangible assets that are expected to be deductible for income tax purposes | 95.00% |
Mirth [Member] | Trade Name [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Identifiable intagnible assets | 1,350 |
Weighted average amortization period | '5 years |
Mirth [Member] | Customer Relationships [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Identifiable intagnible assets | 2,800 |
Mirth [Member] | Computer Software, Intangible Asset [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Identifiable intagnible assets | 22,200 |
Weighted average amortization period | '7 years |
Capitalized_Software_Costs_Det
Capitalized Software Costs (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | $98,587 | $94,676 | ' | ' |
Accumulated amortization | -58,320 | -54,895 | ' | ' |
Net capitalized software costs | $40,267 | $39,781 | $32,881 | $19,994 |
Capitalized_Software_Costs_Det1
Capitalized Software Costs (Details 1) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Activity related to net capitalized software costs | ' | ' | ||
Balance as of April 1 | $39,781 | $19,994 | ||
Capitalized | 18,914 | 20,148 | ||
Amortization | -9,353 | -7,261 | ||
Impairment | -9,075 | [1] | 0 | [1] |
Balance as of June 30 | 40,267 | 32,881 | ||
Estimated amortization of capitalized software costs | ' | ' | ||
2014 (remaining nine months) | 2,600 | ' | ||
2015 | 10,200 | ' | ||
2016 | 8,500 | ' | ||
2017 | 8,300 | ' | ||
2018 | 5,700 | ' | ||
2019 and beyond | 4,967 | ' | ||
Total | $40,267 | ' | ||
[1] | Refer to Note 4 for details on the impairment charge recorded in the current period |
Composition_of_Certain_Financi2
Composition of Certain Financial Statement Captions (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Accounts Receivable | ' | ' |
Accounts receivable, gross | $136,386 | $160,080 |
Allowance for doubtful accounts | -10,088 | -11,823 |
Accounts receivable, net | 126,298 | 148,257 |
Summary of Inventories | ' | ' |
Computer systems and components | 928 | 710 |
Inventories | 928 | 710 |
Summary of Equipment and improvements | ' | ' |
Computer equipment | 36,224 | 31,633 |
Furniture and fixtures | 9,251 | 8,416 |
Leasehold improvements | 9,975 | 7,125 |
Equipment and improvements, gross | 55,450 | 47,174 |
Accumulated depreciation | -31,184 | -25,287 |
Equipment and improvements, net | 24,266 | 21,887 |
Summary of Current and non-current deferred revenue | ' | ' |
Maintenance | 16,337 | 12,085 |
Implementation services | 33,476 | 36,899 |
Annual license services | 10,051 | 9,906 |
Undelivered software, subscriptions and other | 12,862 | 6,317 |
Deferred revenue | 72,726 | 65,207 |
Deferred revenue, net of current | 2,087 | 1,219 |
Summary of Accrued compensation and related benefits | ' | ' |
Payroll, bonus and commission | 4,805 | 3,842 |
Vacation | 8,887 | 8,073 |
Accrued compensation and related benefits | 13,692 | 11,915 |
Summary of Other current liabilities | ' | ' |
Contingent consideration and other liabilities related to acquisitions | 8,241 | 8,426 |
Care services liabilities | 4,079 | 5,488 |
Accrued consulting services | 2,766 | 2,602 |
Accrued EDI expense | 2,506 | 1,452 |
Users Group Meeting (UGM) deposits | 2,236 | 0 |
Self insurance reserve | 1,589 | 1,336 |
Accrued royalties | 1,285 | 1,331 |
Deferred rent | 911 | 689 |
Sales tax payable | 464 | 869 |
Accrued travel | 271 | 384 |
Outside commission payable | 267 | 461 |
Customer deposits | 60 | 262 |
Other accrued expenses | 3,072 | 3,208 |
Other current liabilities | 27,747 | 26,508 |
Contingent consideration and other liabilities related to acquisitions | 6,798 | 1,382 |
Deferred rent | 3,705 | 2,448 |
Income tax payable | 1,237 | 0 |
Other liabilities | 0 | 119 |
Other noncurrent liabilities | $11,740 | $3,949 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes (Textual) ) [Abstract] | ' | ' | ' | ' |
Provision for (benefit of) income taxes | ($6,606,000) | $7,649,000 | $5,244,000 | $24,292,000 |
Effective tax rate (as a percentage) | 34.40% | 32.90% | 33.40% | 34.20% |
Liability for unrecognized tax benefits | 1,200,000 | ' | 1,200,000 | ' |
Decrease in liability for unrecognized tax benefits due to the expiration of the statute of limitations of prior year tax positions of acquired companies | ' | ' | $600,000 | ' |
Period within which the company does not anticipate total unrecognized tax benefits to change | ' | ' | 'within the next twelve months | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted-average shares outstanding for basic and diluted net income per share | ' | ' | ' | ' |
Net income (in dollars) | ($12,587) | $15,626 | $10,479 | $46,814 |
Basic net income per share: | ' | ' | ' | ' |
Weighted-average shares outstanding - Basic | 60,173 | 59,400 | 59,823 | 59,343 |
Basic net income per common share (in usd per share) | ($0.21) | $0.26 | $0.18 | $0.79 |
Diluted net income per share: | ' | ' | ' | ' |
Weighted-average shares outstanding - Basic | 60,173 | 59,400 | 59,823 | 59,343 |
Effect of potentially dilutive securities | 0 | 5 | 161 | 68 |
Weighted-average shares outstanding - Diluted | 60,173 | 59,405 | 59,984 | 59,411 |
Diluted net income per common share (in usd per share) | ($0.21) | $0.26 | $0.17 | $0.79 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earning Per Share (Textual) [Abstract] | ' | ' | ' | ' |
Options excluded from the computation of diluted net income per share | 1,386 | 1,250 | 1,347 | 1,027 |
Share_Based_Awards_Details
Share Based Awards (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2013 |
Summary of Stock Option Activity | ' | ' |
Number of Shares Outstanding Beginning Balance | 1,159,183 | ' |
Weighted Average Exercise Price per Share Outstanding Beginning Balance | $30.54 | ' |
Weighted Average Remaining Contractual Life Outstanding Beginning Balance (in years) | '6 years 1 month 6 days | '5 years 6 months |
Number of Share Granted | 469,000 | ' |
Weighted Average Exercise Price per Share Granted | $18.76 | ' |
Weighted Average Remaining Contractual Life Granted (in years) | '7 years 6 months | ' |
Number of Shares Exercised | -111,272 | ' |
Weighted Average Exercise Price per Share Exercised | $19.78 | ' |
Weighted Average Remaining Contractual Life Exercised (in years) | '7 months 6 days | ' |
Aggregate Intrinsic Value, Exercised | $142 | ' |
Number of Shares Forfeited/Canceled | -132,810 | ' |
Weighted Average Exercise Price per Share Forfeited/Canceled | $31.58 | ' |
Weighted Average Remaining Contractual Life Forfeited/Canceled (in years) | '5 years 2 months 12 days | ' |
Number of Shares Outstanding Ending Balance | 1,384,101 | 1,159,183 |
Weighted Average Exercise Price per Share Outstanding Ending Balance | $27.75 | $30.54 |
Weighted Average Remaining Contractual Life Outstanding Ending Balance (in years) | '6 years 1 month 6 days | '5 years 6 months |
Aggregate Intrinsic Value Outstanding Ending Balance | 1,210 | ' |
Number of Shares Vested and expected to vest | 1,298,337 | ' |
Weighted Average Exercise Price per Share Vested and expected to vest | $27.86 | ' |
Weighted Average Remaining Contractual Life Vested and expected to vest (in years) | '6 years | ' |
Aggregate Intrinsic Value Vested and expected to vest | 1,109 | ' |
Number of Shares Exercisable | 356,911 | ' |
Weighted Average Exercise Price per Share Exercisable | $32.29 | ' |
Weighted Average Remaining Contractual Life Exercisable (in years) | '4 years 7 months 6 days | ' |
Aggregate Intrinsic Value Exercisable | $3 | ' |
Share_Based_Awards_Details_1
Share Based Awards (Details 1) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Share Based Compensation Valuation Assumption | ' | ' | ' |
Expected life (in years) | ' | '4 years 10 months 24 days | '5 years |
Minimum [Member] | ' | ' | ' |
Schedule of Share Based Compensation Valuation Assumption | ' | ' | ' |
Expected volatility | ' | 43.40% | 41.30% |
Expected Dividends | ' | 3.10% | 2.40% |
Risk-free rate | ' | 1.00% | 0.70% |
Maximum [Member] | ' | ' | ' |
Schedule of Share Based Compensation Valuation Assumption | ' | ' | ' |
Expected volatility | ' | 43.70% | 45.10% |
Expected Dividends | ' | 3.90% | 4.00% |
Risk-free rate | 0.80% | 1.50% | ' |
Share_Based_Awards_Details_2
Share Based Awards (Details 2) (USD $) | 9 Months Ended | |
Dec. 31, 2013 | ||
Summary of stock options granted | ' | |
Number of Share Granted | 469,000 | |
Exercise Price Granted (in usd per share) | $17.68 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 5-Nov-20 | |
Two Thousand Five Stock Options Plan [Member] | August 15, 2013 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'August 15, 2013 | |
Number of Share Granted | 85,000 | |
Exercise Price Granted (in usd per share) | $20.85 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 15-Aug-21 | |
Two Thousand Five Stock Options Plan [Member] | July 30, 2013 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'July 30, 2013 | |
Number of Share Granted | 28,000 | |
Exercise Price Granted (in usd per share) | $22.59 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 30-Jul-21 | |
Two Thousand Five Stock Options Plan [Member] | May 29, 2013 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'May 29, 2013 | |
Number of Share Granted | 356,000 | |
Exercise Price Granted (in usd per share) | $17.95 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 29-May-21 | |
Two Thousand Five Stock Options Plan [Member] | November 5, 2012 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'November 5, 2012 | |
Number of Share Granted | 5,000 | |
Two Thousand Five Stock Options Plan [Member] | September 25, 2012 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'September 25, 2012 | |
Number of Share Granted | 20,000 | |
Exercise Price Granted (in usd per share) | $18.42 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 25-Sep-20 | |
Two Thousand Five Stock Options Plan [Member] | Fiscal year 2013 option grants [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'Fiscal year 2014 option grants | |
Number of Share Granted | 469,000 | |
Two Thousand Five Stock Options Plan [Member] | January 23, 2013 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'January 23, 2013 | |
Number of Share Granted | 40,000 | |
Exercise Price Granted (in usd per share) | $19 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 23-Jan-21 | |
Two Thousand Five Stock Options Plan [Member] | May 24, 2012 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'May 24, 2012 | |
Number of Share Granted | 346,000 | |
Exercise Price Granted (in usd per share) | $29.17 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 24-May-20 | |
Two Thousand Five Stock Options Plan [Member] | May 24, 2012 (Second Stated Grant) [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'May 24, 2012 | |
Number of Share Granted | 30,000 | |
Exercise Price Granted (in usd per share) | $29.17 | |
Exercise of option grants | '4 years | [1] |
Option Grants Expires | 24-May-20 | |
Two Thousand Five Stock Options Plan [Member] | May 23, 2012 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'May 23, 2012 | |
Number of Share Granted | 115,500 | |
Exercise Price Granted (in usd per share) | $29.45 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 23-May-20 | |
Two Thousand Five Stock Options Plan [Member] | Fiscal year 2013 option grants [Member] | ' | |
Summary of stock options granted | ' | |
Number of Share Granted | 556,500 | |
[1] | Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant. |
Share_Based_Awards_Details_3
Share Based Awards (Details 3) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected life (in years) | ' | '4 years 10 months 24 days | '5 years |
Performance Based Award [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected life (in years) | ' | '4 years 10 months 24 days | '5 years |
Minimum [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected dividends | ' | 3.10% | 2.40% |
Risk-free rate | ' | 1.00% | 0.70% |
Minimum [Member] | Performance Based Award [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected volatility | ' | 37.70% | 41.70% |
Expected dividends | ' | 3.20% | 2.50% |
Risk-free rate | ' | 1.40% | 0.60% |
Maximum [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected dividends | ' | 3.90% | 4.00% |
Risk-free rate | 0.80% | 1.50% | ' |
Maximum [Member] | Performance Based Award [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected volatility | ' | 43.50% | 45.00% |
Expected dividends | ' | 3.70% | 4.00% |
Risk-free rate | ' | 1.80% | 0.70% |
Share_Based_Awards_Details_4
Share Based Awards (Details 4) (USD $) | 9 Months Ended |
Dec. 31, 2013 | |
Schedule of Employee Stock Options and Performance Based Awards by Nonvested Stock Options | ' |
Non-Vested Number of Shares Outstanding Beginning Balance | 804,340 |
Weighted Average Fair Value Price per Share Outstanding Beginning Balance | $9.89 |
Non-Vested Number of Shares Granted | 469,000 |
Weighted Average Fair Value per Share Price Granted | $5.19 |
Non-Vested Number of Shares Vested | -113,340 |
Weighted Average Fair Value per Share Price Vested | $10.01 |
Non-Vested Number of Shares Forfeited | -132,810 |
Weighted Average Fair Value per Share Price Forfeited | $9.80 |
Non-Vested Number of Share Outstanding Ending Balance | 1,027,190 |
Weighted Average Fair Value per Share Price Outstanding Ending Balance | $7.71 |
Share_Based_Awards_Details_5
Share Based Awards (Details 5) (Restricted Stock Units Award [Member], USD $) | 9 Months Ended |
Dec. 31, 2013 | |
Restricted Stock Units Award [Member] | ' |
Restricted stock units award activity | ' |
Number of Shares Outstanding Beginning Balance | 30,385 |
Weighted average Grant Date Fair value Per Share Outstanding Beginning Balance | $27.09 |
Number of Shares Granted | 57,324 |
Weighted average Grant Date Fair value Per Share Granted | $20.75 |
Number of Shares Vested | -15,635 |
Weighted average Grant Date Fair value Per Share Vested | $30.38 |
Number of Shares Canceled | -3,000 |
Weighted-Average Grant-Date Fair Value per Share Canceled | $24.81 |
Number of Shares Outstanding Ending Balance | 69,074 |
Weighted average Grant Date Fair value Per Share Outstanding Ending Balance | $20.93 |
Share_Based_Awards_Details_Tex
Share Based Awards (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 1998 | Dec. 31, 2013 | Oct. 31, 2005 | 24-May-12 | 24-May-12 | 24-May-12 |
Employee Stock Option [Member] | Restricted Stock Units Award [Member] | Restricted Stock Units Award [Member] | Employee Option [Member] | Employee Option [Member] | Director Options [Member] | Director Options [Member] | Nineteen Ninety Eight Plan [Member] | Nineteen Ninety Eight Plan [Member] | Two Thousand Five Stock Options Plan [Member] | Two Thousand Five Stock Options Plan [Member] | Performance Based Award [Member] | Performance Based Award [Member] | Performance Based Award [Member] | ||||||
Executive Officer [Member] | Non Executive Employees [Member] | ||||||||||||||||||
Share Based Awards (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | 4,800,000 | ' | ' | ' |
Expiration date of options under 1998 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | ' | ' | ' | ' |
Outstanding options under 1998 and 2005 plan | 1,384,101 | ' | 1,384,101 | ' | 1,159,183 | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | 1,364,101 | ' | ' | ' | ' |
Shares available for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,618,977 | ' | 600,000 | ' | ' |
Weighted-average grant date fair value per share of stock options | ' | ' | $5.19 | $8.37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annualized forfeiture rate for employee options | ' | ' | ' | ' | ' | ' | ' | ' | 8.40% | 6.20% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Options granted under 2005 plan | ' | ' | 469,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of options available under the equity incentive program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 210,000 | 390,000 |
Total unrecognized compensation costs | ' | ' | ' | ' | ' | $5,986 | $1,109 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option recognized over weighted average period (in years) | ' | ' | ' | ' | ' | '3 years 7 months 24 days | '1 year 7 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested | 1,134 | ' | ' | 1,641 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | $707 | $583 | $1,832 | $1,966 | ' | ' | $473 | $450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_Guarantees_and_Con1
Commitments Guarantees and Contingencies (Details Textual) | Dec. 31, 2013 |
Commitments Guarantees and Contingencies (Textual) | ' |
Applicable program documentation period | '365 days |
Operating_Segment_Information_1
Operating Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Segment Operating Data | ' | ' | ' | ' | ||||
Revenue | $108,854 | $114,510 | $329,464 | $348,934 | ||||
Operating income | -19,332 | 23,384 | 16,167 | 71,235 | ||||
QSI Dental Division [Member] | ' | ' | ' | ' | ||||
Segment Operating Data | ' | ' | ' | ' | ||||
Revenue | 5,082 | 5,088 | 15,137 | 14,886 | ||||
Operating income | 396 | 1,265 | 2,605 | 2,413 | ||||
NextGen Division [Member] | ' | ' | ' | ' | ||||
Segment Operating Data | ' | ' | ' | ' | ||||
Revenue | 83,881 | 85,757 | 250,117 | 259,277 | ||||
Operating income | 22,614 | 30,906 | 82,600 | 93,643 | ||||
Hospital Solutions Division [Member] | ' | ' | ' | ' | ||||
Segment Operating Data | ' | ' | ' | ' | ||||
Revenue | 2,483 | 7,365 | 12,683 | 26,903 | ||||
Operating income | -14,035 | [1] | -1,334 | [1] | -20,866 | [1] | -152 | [1] |
RCM Services Division [Member] | ' | ' | ' | ' | ||||
Segment Operating Data | ' | ' | ' | ' | ||||
Revenue | 17,408 | 16,300 | 51,527 | 47,868 | ||||
Operating income | 2,486 | 2,090 | 8,012 | 5,732 | ||||
Unallocated corporate expense [Member] | ' | ' | ' | ' | ||||
Segment Operating Data | ' | ' | ' | ' | ||||
Operating income | ($30,793) | [1] | ($9,543) | [1] | ($56,184) | [1] | ($30,401) | [1] |
[1] | Refer to Note 4 for details on the impairment charge recorded in the current period |
Subsequent_Events_Details
Subsequent Events (Details) (Dividend Declared [Member], USD $) | Jan. 22, 2014 |
Dividend Declared [Member] | ' |
Subsequent Event [Line Items] | ' |
Cash dividend (in usd per share) | $0.18 |