Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | 19-May-15 | Sep. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | QUALITY SYSTEMS, INC | ||
Entity Central Index Key | 708818 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Mar-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -28 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $687,675 | ||
Entity Common Stock, Shares Outstanding | 60,302,693 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $118,993 | $103,145 |
Restricted cash | 2,419 | 4,351 |
Marketable securities | 11,592 | 10,656 |
Accounts receivable, net | 107,669 | 113,268 |
Inventories | 622 | 834 |
Income taxes receivable | 3,147 | 8,366 |
Deferred income taxes, net | 24,080 | 21,531 |
Other current assets | 11,535 | 11,135 |
Total current assets | 280,057 | 273,286 |
Equipment and improvements, net | 20,807 | 22,801 |
Capitalized software costs, net | 40,397 | 39,152 |
Intangibles, net | 27,689 | 33,016 |
Goodwill | 73,571 | 72,804 |
Other assets | 18,000 | 10,292 |
Total assets | 460,521 | 451,351 |
Current liabilities: | ||
Accounts payable | 10,018 | 7,888 |
Deferred revenue | 66,343 | 71,077 |
Accrued compensation and related benefits | 24,051 | 15,953 |
Income taxes payable | 10,048 | 0 |
Dividends payable | 10,700 | 10,686 |
Other current liabilities | 33,924 | 21,369 |
Total current liabilities | 155,084 | 126,973 |
Deferred revenue, net of current | 1,349 | 2,187 |
Deferred compensation | 5,750 | 4,809 |
Other noncurrent liabilities | 14,798 | 22,292 |
Total liabilities | 176,981 | 156,261 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity: | ||
$0.01 par value; authorized 100,000 shares; issued and outstanding 60,303 and 60,206 shares at March 31, 2015 and 2014, respectively | 603 | 602 |
Additional paid-in capital | 198,650 | 194,739 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -192 | -182 |
Retained earnings | 84,479 | 99,931 |
Total shareholders' equity | 283,540 | 295,090 |
Total liabilities and shareholders' equity | $460,521 | $451,351 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 60,303,000 | 60,206,000 |
Common stock, shares outstanding | 60,303,000 | 60,206,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | |||
Software, hardware and supplies | $61,373 | $60,834 | $88,572 |
Implementation and training services | 23,648 | 25,948 | 35,008 |
System sales | 85,021 | 86,782 | 123,580 |
Maintenance | 169,219 | 160,060 | 156,771 |
Electronic data interchange services | 76,358 | 67,295 | 59,709 |
Revenue cycle management and related services | 74,237 | 62,976 | 59,219 |
Other services | 85,390 | 67,554 | 60,950 |
Maintenance, EDI, RCM and other services | 405,204 | 357,885 | 336,649 |
Total revenues | 490,225 | 444,667 | 460,229 |
Cost of revenue: | |||
Software, hardware and supplies | 24,693 | 44,226 | 21,750 |
Implementation and training services | 23,902 | 29,681 | 30,896 |
Total cost of system sales | 48,595 | 73,907 | 52,646 |
Maintenance | 28,866 | 22,590 | 20,316 |
Electronic data interchange services | 48,244 | 42,567 | 38,350 |
Revenue cycle management and related services | 54,406 | 46,203 | 43,324 |
Other services | 43,053 | 34,896 | 35,016 |
Total cost of maintenance, EDI, RCM and other services | 174,569 | 146,256 | 137,006 |
Total cost of revenue | 223,164 | 220,163 | 189,652 |
Gross profit | 267,061 | 224,504 | 270,577 |
Operating expenses: | |||
Selling, general and administrative | 158,172 | 149,214 | 148,353 |
Research and development costs | 69,240 | 41,524 | 30,865 |
Amortization of acquired intangible assets | 3,693 | 4,805 | 4,859 |
Impairment of goodwill and other assets | 0 | 5,873 | 17,400 |
Total operating expenses | 231,105 | 201,416 | 201,477 |
Income from operations | 35,956 | 23,088 | 69,100 |
Interest Income (Expense), Net | -230 | 269 | -107 |
Other income (expense), net | -62 | -356 | -79 |
Income before provision for income taxes | 35,664 | 23,001 | 68,914 |
Provision for income taxes | 8,332 | 7,321 | 26,190 |
Net income | 27,332 | 15,680 | 42,724 |
Foreign currency translation (net of tax) | -117 | -107 | 34 |
Unrealized gain (loss) on marketable securities (net of tax) | 107 | -64 | 0 |
Comprehensive income | $27,322 | $15,509 | $42,758 |
Net income per share: | |||
Basic | $0.45 | $0.26 | $0.72 |
Diluted | $0.45 | $0.26 | $0.72 |
Weighted-average shares outstanding: | |||
Basic | 60,259 | 59,918 | 59,392 |
Diluted | 60,849 | 60,134 | 59,462 |
Dividends declared per common share | $0.70 | $0.70 | $0.70 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss [Member] |
In Thousands, except Share data | |||||
Beginning Balance at Mar. 31, 2012 | $295,177 | $592 | $169,033 | $125,597 | ($45) |
Beginning Balance, Shares at Mar. 31, 2012 | 59,180,000 | ||||
Exercise of stock options and vesting of restricted stock | 948 | 1 | 947 | ||
Exercise of stock options and vesting of restricted stock, Shares | 56,366 | 83,000 | |||
Common stock issuance for earnout settlement | 3,000 | 1 | 2,999 | ||
Common stock issuance for earnout settlement, Shares | 165,000 | ||||
Common stock issuance for acquisitions | 4,595 | 1 | 4,594 | ||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | -157 | -157 | |||
Common stock issuance for acquisitions, Shares | 115,000 | ||||
Stock-based compensation | 2,327 | 2,327 | |||
Dividends declared | -41,599 | -41,599 | |||
Unrealized loss on AFS securities | 0 | ||||
Translation adjustments | 34 | 34 | |||
Net income | 42,724 | 42,724 | |||
Ending Balance at Mar. 31, 2013 | 307,049 | 595 | 179,743 | 126,722 | -11 |
Ending Balance, Shares at Mar. 31, 2013 | 59,543,000 | ||||
Exercise of stock options and vesting of restricted stock | 2,201 | 2 | 2,199 | ||
Exercise of stock options and vesting of restricted stock, Shares | 111,272 | 167,000 | |||
Common stock issuance for earnout settlement | 1,376 | 1 | 1,375 | ||
Common stock issuance for earnout settlement, Shares | 62,000 | ||||
Common stock issuance for acquisitions | 9,273 | 4 | 9,269 | ||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | -337 | -337 | |||
Common stock issuance for acquisitions, Shares | 434,000 | ||||
Stock-based compensation | 2,490 | 2,490 | |||
Dividends declared | -42,471 | -42,471 | |||
Unrealized loss on AFS securities | -64 | -64 | |||
Translation adjustments | -107 | -107 | |||
Net income | 15,680 | 15,680 | |||
Ending Balance at Mar. 31, 2014 | 295,090 | 602 | 194,739 | 99,931 | -182 |
Ending Balance, Shares at Mar. 31, 2014 | 60,206,000 | ||||
Exercise of stock options and vesting of restricted stock | 384 | 1 | 383 | ||
Exercise of stock options and vesting of restricted stock, Shares | 79,000 | ||||
Common stock issuance for earnout settlement | 284 | 0 | 284 | ||
Common stock issuance for earnout settlement, Shares | 18,000 | ||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | -228 | -228 | |||
Stock-based compensation | 3,472 | 3,472 | |||
Dividends declared | -42,784 | -42,784 | |||
Unrealized loss on AFS securities | 107 | 107 | |||
Translation adjustments | -117 | -117 | |||
Net income | 27,332 | 27,332 | |||
Ending Balance at Mar. 31, 2015 | $283,540 | $603 | $198,650 | $84,479 | ($192) |
Ending Balance, Shares at Mar. 31, 2015 | 60,303,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | |||
Net income | $27,332 | $15,680 | $42,724 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 9,323 | 8,069 | 6,928 |
Amortization of capitalized software costs | 12,817 | 12,338 | 9,668 |
Amortization of other intangibles | 7,127 | 8,330 | 7,559 |
Provision for bad debts | 855 | 1,467 | 6,885 |
Provision (recovery) for inventory obsolescence | 25 | 0 | 193 |
Share-based compensation | 3,472 | 2,490 | 2,327 |
Deferred income tax benefit | -12,061 | -3,984 | -9,565 |
Excess tax benefit from share-based compensation | 0 | -183 | 157 |
Change in fair value of contingent consideration | 1,937 | 101 | 1,272 |
Impairment of goodwill and other assets | 0 | 25,971 | 17,400 |
Loss (gain) on disposal of equipment and improvements | 51 | 192 | 0 |
Changes in assets and liabilities, net of amounts acquired: | |||
Accounts receivable | 4,744 | 37,461 | -7,988 |
Inventories | 187 | -81 | 339 |
Other current assets | 35 | 3,985 | -4,049 |
Other assets | -1,052 | -1,662 | -2,777 |
Accounts payable | 1,281 | -4,170 | 6,223 |
Deferred revenue | -5,610 | 1,036 | -17,993 |
Accrued compensation and related benefits | 8,098 | 4,038 | 45 |
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | 18,178 | -9,227 | 3,710 |
Other current liabilities | 5,081 | 211 | 9,079 |
Deferred compensation | 941 | 1,000 | 312 |
Other noncurrent liabilities | -3 | 989 | -4,384 |
Net cash provided by operating activities | 82,758 | 104,051 | 68,065 |
Cash flows from investing activities: | |||
Additions to capitalized software costs | -14,601 | -20,784 | -29,455 |
Additions to equipment and improvements | -6,531 | -7,934 | -9,969 |
Proceeds from sale of marketable securities | 11,077 | 15,475 | 4,960 |
Purchase of marketable securities | -12,123 | -15,386 | -12,084 |
Payment of contingent consideration related to acquisitions | 0 | -3,423 | -2,353 |
Net cash used in investing activities | -24,523 | -63,662 | -53,654 |
Cash flows from financing activities: | |||
Excess tax benefit from share-based compensation | 0 | 183 | 84 |
Proceeds from exercise of stock options | 383 | 2,200 | 948 |
Dividends paid | -42,770 | -42,203 | -41,535 |
Net cash used in financing activities | -42,387 | -43,243 | -42,856 |
Net increase in cash and cash equivalents | 15,848 | -2,854 | -28,445 |
Cash and cash equivalents at beginning of period | 103,145 | 105,999 | |
Cash and cash equivalents at end of period | 118,993 | 103,145 | 105,999 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the period for income taxes, net of refunds | 2,523 | 20,443 | 31,656 |
Non-cash investing activities: | |||
Tenant improvement allowance received from landlord | 0 | 0 | 965 |
Common stock issued at fair value for ViaTrack earnout settlement | 0 | 0 | 3,000 |
Dividends Payable | 10,700 | 10,686 | 10,418 |
Unpaid additions to equipment and improvements | 849 | 419 | 0 |
Effective March 11, 2015, September 9, 2013, May 1, 2012, and April 16, 2012, the company acquired Gennius, Mirth, Poseidon and Matrix, respectively in transactions summarized as follows: | |||
Common Stock issued at fair value | 0 | 0 | -3,953 |
Poseidon [Member] | |||
Cash flows from investing activities: | |||
Payments to Acquire Businesses, Gross | 0 | 0 | 2,033 |
Payment for acquiring businesses | 0 | 0 | -2,033 |
Effective March 11, 2015, September 9, 2013, May 1, 2012, and April 16, 2012, the company acquired Gennius, Mirth, Poseidon and Matrix, respectively in transactions summarized as follows: | |||
Payments to Acquire Businesses, Gross | 0 | 0 | 2,033 |
Payments to Acquire Businesses, Gross | 0 | 0 | -2,033 |
Purchase price holdback | 0 | 0 | -500 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 0 | 0 | 18 |
Matrix [Member] | |||
Cash flows from investing activities: | |||
Payments to Acquire Businesses, Gross | 0 | 0 | 5,073 |
Payment for acquiring businesses | 0 | 0 | -5,073 |
Effective March 11, 2015, September 9, 2013, May 1, 2012, and April 16, 2012, the company acquired Gennius, Mirth, Poseidon and Matrix, respectively in transactions summarized as follows: | |||
Fair value of assets acquired | 0 | 0 | 14,587 |
Payments to Acquire Businesses, Gross | 0 | 0 | 5,073 |
Payments to Acquire Businesses, Gross | 0 | 0 | -5,073 |
Purchase price holdback | 0 | 0 | -853 |
Fair value of contingent consideration | 0 | 0 | -2,862 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 0 | 0 | 746 |
Business Acquisition, Cost of Acquired Entity, Non-compete Agreement | 0 | 0 | -1,100 |
Mirth [Member] | |||
Cash flows from investing activities: | |||
Payments to Acquire Businesses, Gross | 0 | 35,033 | 0 |
Payment for acquiring businesses | 0 | -35,033 | 0 |
Effective March 11, 2015, September 9, 2013, May 1, 2012, and April 16, 2012, the company acquired Gennius, Mirth, Poseidon and Matrix, respectively in transactions summarized as follows: | |||
Fair value of assets acquired | 0 | 62,787 | 0 |
Payments to Acquire Businesses, Gross | 0 | 35,033 | 0 |
Payments to Acquire Businesses, Gross | 0 | -35,033 | 0 |
Common Stock issued at fair value | 0 | -7,882 | 0 |
Fair value of contingent consideration | 0 | -13,307 | 0 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 0 | 6,565 | 0 |
Gennius [Member] | |||
Cash flows from investing activities: | |||
Payments to Acquire Businesses, Gross | 2,345 | ||
Payment for acquiring businesses | -2,345 | 0 | 0 |
Effective March 11, 2015, September 9, 2013, May 1, 2012, and April 16, 2012, the company acquired Gennius, Mirth, Poseidon and Matrix, respectively in transactions summarized as follows: | |||
Fair value of assets acquired | 2,571 | ||
Payments to Acquire Businesses, Gross | 2,345 | ||
Payments to Acquire Businesses, Gross | -2,345 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $226 | $0 | $0 |
Organization_of_Business
Organization of Business | 12 Months Ended |
Mar. 31, 2015 | |
Organization of Business [Abstract] | |
Organization of Business | Organization of Business |
Description of Business | |
Quality Systems, Inc. ("QSI") and its wholly-owned subsidiaries operate as four business divisions (each, a "Division") which are comprised of: (i) the QSI Dental Division, (ii) the NextGen Division, (iii) the Hospital Solutions Division and (iv) the RCM Services Division. QSI also includes a captive entity in India called Quality Systems India Healthcare Private Limited (“QSIH”) (collectively, with QSI and the four Divisions, the "Company"). The Company primarily derives revenue by developing and marketing healthcare information systems that automate certain aspects of medical and dental practices, networks of practices such as physician hospital organizations (“PHOs”) and management service organizations (“MSOs”), ambulatory care centers, community health centers and medical and dental schools along with comprehensive systems implementation, maintenance and support and add-on complementary services such as revenue cycle management (“RCM”) and electronic data interchange (“EDI”). The Company's systems and services provide its customers with the ability to redesign patient care and other workflow processes while improving productivity through the facilitation of managed access to patient information. Utilizing its proprietary software in combination with third party hardware and software solutions, the Company's products enable the integration of a variety of administrative and clinical information operations. The Company's scalable interoperability and population health offerings help to improve care collaboration, quality and safety. Enabled by the Company's interoperability solutions, data-driven patient population healthcare management decisions can assist in creating more desirable operational, clinical, and financial outcomes that substantiate the value of patient-centered and accountable care models. | |
The Company was founded with an early focus on providing information systems to dental group practices. This focus area would later become the QSI Dental Division. In the mid-1980’s, the Company capitalized on the increasing focus on medical cost containment and further expanded its information processing systems to serve the ambulatory market. In the mid-1990’s, the Company made two acquisitions that accelerated its penetration of the ambulatory market and formed the basis for the NextGen Division. In the last few years, the Company acquired several companies, including Sphere Health Systems, Inc. ("Sphere"), Opus Healthcare Solutions, LLC ("Opus"), IntraNexus, Inc. ("IntraNexus"), CQI Solutions, Inc. ("CQI"), ViaTrack Systems, LLC ("ViaTrack"), Matrix Management Solutions, LLC (“Matrix”), and The Poseidon Group ("Poseidon"), as part of its strategy to enhance its EDI and RCM services capabilities as well as expand into the small and specialty hospital market. More recently the Company acquired Mirth Corporation ("Mirth") and Gennius, Inc. ("Gennius"), both of which operate under the NextGen Division. Mirth enhances the Company's current enterprise interoperability initiatives and broadens its accountable and collaborative care, population health, disease management and clinical data exchange offerings. Gennius is expected to enhance the Company's current healthcare data enterprise analytics competencies while broadening business intelligence capabilities for addressing new value-based care requirements. Today, the Company serves the dental, ambulatory, hospital and RCM services markets through its four business Divisions. | |
The QSI Dental Division, co-located with the Corporate Headquarters in Irvine, California, currently focuses on developing, marketing and supporting software suites sold to dental organizations located throughout the US. | |
The NextGen Division, with headquarters in Horsham, Pennsylvania and significant locations in Atlanta, Georgia and Costa Mesa, California, provides integrated clinical, financial and connectivity solutions for ambulatory and dental provider organizations. | |
The Hospital Solutions Division, with its primary location in Austin, Texas, provides integrated clinical, financial and connectivity solutions for rural and community hospitals. | |
The RCM Services Division, with locations in St. Louis, Missouri, North Canton, Ohio, South Jordan, Utah and Hunt Valley, Maryland, focuses primarily on providing physician practices with RCM services, primarily billing and collection services for medical practices. This Division combines a web-delivered Software as a Service ("SaaS") model and the Company's practice management software platform to execute its service offerings. | |
QSIH, located in Bangalore, India, functions as the Company's India-based captive entity to offshore technology application development and business processing services. | |
A growing number of customers are simultaneously utilizing software or services from more than one of the Company's four Divisions. In an effort to further enhance the Company's ability to cross sell products and services between Divisions, the Company in the process of further integrating its ambulatory and hospital products to provide a more robust and comprehensive platform to offer customers. To achieve greater efficiency and integration within the Company's operations, the divisional sales, marketing, information services, and software development responsibilities have been consolidated into single company-wide roles. The Divisions also share the resources of a “corporate office,” which includes a variety of accounting and other administrative functions. The Company continues to evaluate its organizational structure with the objective of achieving greater synergies and further integration of its products and services, including software implementation and customer support functions. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 consists of NextGen Healthcare Information Systems, LLC (“NextGen”), NextGen RCM Services, LLC, QSI Management, LLC, Quality Systems India Healthcare Private Limited (“QSIH”), ViaTrack Systems, LLC (“ViaTrack”), Matrix Management Solutions, LLC ("Matrix"), Mirth LLC and Mirth Limited ("Mirth"), and Gennius, Inc. ("Gennius") (collectively, the “Company”). Gennius is included in the consolidated financial statements from the date of acquisition (March 11, 2015). All intercompany accounts and transactions have been eliminated. | ||||||||||||
Business Segments. The Company has prepared operating segment information based on the manner in which management disaggregates the Company’s operations for making internal operating decisions. See Note 14. | ||||||||||||
Basis of Presentation. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | ||||||||||||
References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. | ||||||||||||
Revision. The accompanying consolidated statements of cash flows for the years ended March 31, 2014 and 2013 have been retrospectively revised to reflect proceeds from sales and maturities of marketable securities and purchases of marketable securities as investing activities rather than operating activities, which resulted in a decrease of $89 in cash provided by operating activities for the year ended March 31, 2014 and a corresponding decrease in cash used in investing activities and an increase of $24 in cash provided by operating activities for the year ended March 31, 2013 and a corresponding increase in cash used in investing activities. The Company has evaluated the impact of the revision and determined that it did not have a material impact on any of its prior period annual and interim consolidated financial statements. | ||||||||||||
The accompanying consolidated balance sheet and notes to the consolidated financial statements as of and for the year ended March 31, 2014 have been retrospectively revised to correct the immaterial misclassification of certain noncurrent deferred income taxes, previously reported within other assets, as current deferred income taxes, and other noncurrent liabilities, which resulted in a $3,206 increase in total assets with a corresponding $3,206 increase to total liabilities. In addition, the Company has retrospectively revised the accompanying consolidated balance sheet, consolidated statement of cash flows, and notes to the consolidated financial statements as of and for the year ended March 31, 2014 for certain immaterial misclassifications affecting accounts receivable and other current liabilities. As a result, total assets and total liabilities increased by $3,087 on the consolidated balance sheet as of March 31, 2014. The revision had no net impact on cash provided by operating activities on the consolidated statement of cash flows for the year ended March 31, 2014. The Company has evaluated the impact of the revision and determined that it did not have a material impact on any of its prior period annual and interim consolidated financial statements. | ||||||||||||
Revenue Recognition. The Company generates revenue from the sale of licensing rights to its software products directly to end-users and value-added resellers. The Company also generates revenue from sales of hardware and third party software, implementation and training, electronic data interchange (“EDI”), revenue cycle management ("RCM"), maintenance, and other services, including subscriptions, consulting, and hosting services, performed for customers 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 the price charged when the same element is 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 customers 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, then 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 the 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. 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. | ||||||||||||
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 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. | ||||||||||||
Revenue from services are recognized as the corresponding services are performed. Maintenance revenue is recognized ratably over the contractual maintenance period. Revenue from EDI and other transaction processing services are recognized at the time services are provided and billed to customers. RCM service revenue is derived from services fees, which include amounts charged for ongoing billing, collections, and other related services, and are generally billed to the customer as a percentage of total customer collections. The Company does not recognize revenue for services fees until these collections are made by the customer 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 the 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, subscriptions, hosting services, SaaS fees and other services revenue. | ||||||||||||
Cash and Cash Equivalents. Cash and cash equivalents generally consist of cash, money market funds and short-term U.S. Treasury securities with maturities of 90 days or less at the time of purchase. The Company had cash deposits at U.S. banks and financial institutions at March 31, 2015 of which $117,909 was in excess of the Federal Deposit Insurance Corporation insurance limit of $250 per owner. The Company is exposed to credit loss for amounts in excess of insured limits in the event of nonperformance by the institutions; however, the Company does not anticipate nonperformance by these institutions. | ||||||||||||
The money market fund in which the Company holds a portion of its cash invests in only investment grade money market instruments from a variety of industries, and therefore bears relatively low market risk. | ||||||||||||
Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents consist of cash which is being held by the Company acting as an agent for the disbursement of certain state social services programs. The Company records an offsetting “Care Services liability” (see also Note 9) when it initially receives such cash from the government social service programs and relieves both restricted cash and cash equivalents and the Care Services liability when amounts are disbursed. The Company earns an administrative fee which is based on a percentage of funds disbursed on behalf of certain government social service programs. | ||||||||||||
Marketable Securities. Marketable securities are classified as available-for-sale and are recorded at fair value, based on quoted market rates when observable or valuation analysis when appropriate. Unrealized gains and losses, are included in shareholders’ equity. Realized gains and losses on investments are included in other income (expense). | ||||||||||||
Accounts Receivable Reserves. The Company maintains reserves for potential sales returns and other uncollectible accounts receivable. In aggregate, such reserves reduce the Company's gross accounts receivable to its estimated net realizable value. | ||||||||||||
Sales return reserves, which include reserves for returns and other credits, are established based upon the rate of historical returns by revenue type in relation to the corresponding gross revenues. Allowances for doubtful accounts and other uncollectible accounts receivable related to estimated losses resulting from customers’ inability to make required payments are established based on our historical experience of bad debt expense and the aging of accounts receivable balances, net of deferred revenue and specifically reserved accounts. Specific reserves are based on an estimate of the probability of collection for certain troubled accounts. Accounts are written off as uncollectible only after the Company has expended extensive collection efforts. | ||||||||||||
Inventories. Inventories consist of hardware for specific customer orders and spare parts and are valued at lower of cost (first-in, first-out) or market. The Company provides a reserve to reduce inventory to its net realizable value. | ||||||||||||
Equipment and Improvements. Equipment and improvements are stated at cost less accumulated depreciation and amortization. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation and amortization of equipment and improvements are recorded over the estimated useful lives of the assets, or the related lease terms if shorter, by the straight-line method. Useful lives generally have the following ranges: | ||||||||||||
l | Computer equipment | 3-5 years | ||||||||||
l | Furniture and fixtures | 3-7 years | ||||||||||
l | Leasehold improvements | lesser of lease term or estimated useful life of asset | ||||||||||
Costs incurred to develop internal-use software during the application development stage are capitalized, stated at cost, and amortized using the straight-line method over the estimated useful lives of the assets, which is typically three to seven years. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized, whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. | ||||||||||||
Software Development Costs. Development costs, consisting primarily of employee salaries and benefits, 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. Amortization of capitalized software is recorded using the greater of the ratio of current revenues to the total of current and expected revenues of the related product or the straight-line method 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. The Company performs ongoing reviews 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. In addition to the recoverability assessment, the Company routinely reviews the remaining estimated lives of its capitalized software costs. | ||||||||||||
Business Combinations. In accordance with the accounting for business combinations, the Company allocates the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. The purchase price allocation methodology contains uncertainties because it requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities, including, but not limited to, intangible assets, goodwill, and contingent consideration liabilities. The Company estimates the fair value of assets and liabilities based upon quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses depending on the nature of the assets being sold. The Company estimates the fair value of the contingent consideration liabilities based on the probability of achieving certain business milestones and/or management's forecast of expected results. Unanticipated events or circumstances may occur which could affect the accuracy of our fair value estimates, including assumptions regarding industry economic factors and business strategies. Any adjustments to fair value subsequent to the measurement period are reflected in the consolidated statements of comprehensive income. | ||||||||||||
Goodwill. Goodwill acquired in a business combination is measured as the excess of the purchase price, or consideration transferred, over the net acquisition date fair values of the assets acquired and the liabilities assumed. Goodwill is not amortized as it has been determined to have an indefinite useful life. The Company tests goodwill for impairment annually during its first fiscal quarter, referred to as the annual test date, and determined that there was no impairment to its goodwill as of June 30, 2014. 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 year ended March 31, 2015, the Company has not identified any events or circumstances that would require an interim goodwill impairment test. See Note 6. | ||||||||||||
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 ten 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. In addition to the impairment assessment, the Company routinely reviews the remaining estimated lives of its intangible assets. | ||||||||||||
The Company has determined that there was no impairment to its intangible assets during the year ended March 31, 2015. | ||||||||||||
Long-Lived Assets. The Company assesses the recoverability of long-lived 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 long-lived assets to fair value, which is determined by discounting estimated future cash flows. In addition to the impairment assessment, the Company routinely reviews the remaining estimated lives of its long-lived assets. | ||||||||||||
The Company has determined that there was no impairment to its long-lived assets during the year ended March 31, 2015. | ||||||||||||
Income Taxes. Income taxes are provided based on current taxable income and the future tax consequences of temporary differences between the basis of assets and liabilities for financial and tax reporting. The deferred income tax assets and liabilities represent the future state and federal tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future income taxes. At each reporting period, the Company assesses the realizable value of deferred tax assets based on, among other things, estimates of future taxable income and adjusts the related valuation allowance as necessary. The Company makes a number of assumptions and estimates in determining the appropriate amount of expense to record for income taxes. The assumptions and estimates consider the taxing jurisdiction in which the Company operates as well as current tax regulations. Accruals are established for estimates of tax effects for certain transactions and future projected profitability based on the Company's interpretation of existing facts and circumstances. | ||||||||||||
Advertising Costs. Advertising costs are charged to operations as incurred. The Company does not have any direct-response advertising. Advertising costs, which include trade shows and conventions, were approximately $7,079, $5,600 and $6,499 for the years ended March 31, 2015, 2014 and 2013, respectively, and were included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income. | ||||||||||||
Earnings per Share. The Company provides dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. | ||||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net income | $ | 27,332 | $ | 15,680 | $ | 42,724 | ||||||
Basic net income per share: | ||||||||||||
Weighted-average shares outstanding — Basic | 60,259 | 59,918 | 59,392 | |||||||||
Basic net income per common share | $ | 0.45 | $ | 0.26 | $ | 0.72 | ||||||
Net income | $ | 27,332 | $ | 15,680 | $ | 42,724 | ||||||
Diluted net income per share: | ||||||||||||
Weighted-average shares outstanding — Basic | 60,259 | 59,918 | 59,392 | |||||||||
Effect of potentially dilutive securities | 590 | 216 | 70 | |||||||||
Weighted-average shares outstanding — Diluted | 60,849 | 60,134 | 59,462 | |||||||||
Diluted net income per common share | $ | 0.45 | $ | 0.26 | $ | 0.72 | ||||||
The computation of diluted net income per share does not include 1,656, 1,355 and 966 options for the years ended March 31, 2015, 2014 and 2013, respectively, because their inclusion would have an anti-dilutive effect on net income per share. | ||||||||||||
Share-Based Compensation. The Company estimates the fair value of stock options on the date of grant using the Black Scholes option-pricing model. Expected term is estimated based upon the historical exercise behavior and represents the period of time that options granted are expected to be outstanding. Volatility is estimated by using the weighted-average historical volatility of the Company’s common stock, which approximates expected volatility. The risk free rate is the implied yield available on the U.S. Treasury zero-coupon issues with remaining terms equal to the expected term. The expected dividend yield is the average dividend rate during a period equal to the expected term of the option. The Black Scholes model utilizes those inputs to determine the estimated fair value. The fair value of the portion of the award that is ultimately expected to vest is recognized ratably as expense over the requisite service period in the Company’s consolidated statements of comprehensive income. | ||||||||||||
Share-based compensation is adjusted on a monthly basis for changes to estimated forfeitures based on a review of historical forfeiture activity. To the extent that actual forfeitures differ, or are expected to differ, from the estimate, share-based compensation expense is adjusted accordingly. The effect of the forfeiture adjustments for years ended March 31, 2015, 2014 and 2013 was not significant. | ||||||||||||
Share-based compensation expense associated with the restricted performance shares with market conditions under our executive compensations plans is based on the grant date fair value measured at the underlying closing share price on the date of grant using a Monte Carlo-based valuation model. | ||||||||||||
See Note 12 for additional details regarding the Company's share-based awards. | ||||||||||||
The following table shows total share-based compensation expense included in the consolidated statements of comprehensive income for years ended March 31, 2015, 2014 and 2013: | ||||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Costs and expenses: | ||||||||||||
Cost of revenue | $ | 373 | $ | 348 | $ | 201 | ||||||
Research and development costs | 396 | 323 | 230 | |||||||||
Selling, general and administrative | 2,703 | 1,819 | 1,896 | |||||||||
Total share-based compensation | 3,472 | 2,490 | 2,327 | |||||||||
Income tax benefit | (1,054 | ) | (794 | ) | (726 | ) | ||||||
Decrease in net income | $ | 2,418 | $ | 1,696 | $ | 1,601 | ||||||
Sales Taxes. The Company records revenue net of sales tax obligation in the consolidated statements of income. | ||||||||||||
Use of Estimates. The preparation of consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, VSOE, accounts receivable reserves, software development costs, contingent consideration liabilities, goodwill, intangible assets, and income taxes and related credits and deductions. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | ||||||||||||
New 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 May 2014, the FASB, along with the International Accounting Standards Board, issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards and GAAP. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires additional disclosure about revenue and provides improved guidance for multiple element arrangements. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Companies are permitted to adopt this new guidance following either a full retrospective or modified retrospective approach. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2018. The Company is currently evaluating the potential impact of implementation of this updated authoritative guidance on its consolidated financial statements. | ||||||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ("ASU 2014-15"), which incorporates and expands upon certain principles that currently exist in U.S. auditing standards. ASU 2014-15 provides guidance regarding management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. The new standard requires management to perform interim and annual evaluations and sets forth principles for considering the mitigating effect of management's plans. The standard mandates certain disclosures when conditions give rise to substantial doubt about a company’s ability to continue as a going concern within one year from the financial statement issuance date. ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016, and all annual and interim periods thereafter. Early adoption is permitted. ASU 2014-15 is effective for the Company for fiscal year ending March 31, 2017. The Company does not expect the adoption of this new standard to have a material impact on its consolidated financial statements. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Mar. 31, 2015 | |
Cash and Cash Equivalents, at Carrying Value [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
At March 31, 2015 and 2014, the Company had cash and cash equivalents of $118,993 and $103,145, respectively. Cash and cash equivalents consist of cash, money market funds and short-term U.S. Treasury securities with original maturities of less than 90 days. The money market fund in which the Company holds a portion of its cash invests in only investment grade money market instruments from a variety of industries, and therefore bears relatively low market risk. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 March 31, 2015 and March 31, 2014: | ||||||||||||||||
Balance at March 31, 2015 | Quoted Prices | Significant | Unobservable | |||||||||||||
in Active | Other | Inputs | ||||||||||||||
Markets for | Observable | (Level 3) | ||||||||||||||
Identical | Inputs | |||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 118,993 | $ | 118,993 | $ | — | $ | — | ||||||||
Restricted cash and cash equivalents | 2,419 | 2,419 | — | — | ||||||||||||
Marketable securities (2) | 11,592 | 11,592 | — | — | ||||||||||||
$ | 133,004 | $ | 133,004 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 16,155 | — | $ | — | $ | 16,155 | |||||||||
$ | 16,155 | $ | — | $ | — | $ | 16,155 | |||||||||
Balance at March 31, 2014 | Quoted Prices | Significant | Unobservable | |||||||||||||
in Active | Other | Inputs | ||||||||||||||
Markets for | Observable | (Level 3) | ||||||||||||||
Identical | Inputs | |||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 103,145 | $ | 103,145 | $ | — | $ | — | ||||||||
Restricted cash and cash equivalents | 4,351 | 4,351 | — | — | ||||||||||||
Marketable securities (2) | 10,656 | 10,656 | — | — | ||||||||||||
$ | 118,152 | $ | 118,152 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 14,913 | $ | — | $ | — | $ | 14,913 | ||||||||
$ | 14,913 | $ | — | $ | — | $ | 14,913 | |||||||||
____________________ | ||||||||||||||||
-1 | Cash equivalents consist of money market funds. | |||||||||||||||
-2 | Marketable securities consist of money market instruments and fixed-income securities, including certificates of deposit, corporate bonds and notes, and municipal 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 were estimated based on the probability of achieving certain business milestones. | ||||||||||||||||
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 March 31, 2015: | ||||||||||||||||
Total Liabilities | ||||||||||||||||
Balance at March 31, 2013 | $ | 5,336 | ||||||||||||||
Acquisitions | 13,307 | |||||||||||||||
Earnout payments | (3,831 | ) | ||||||||||||||
Fair value adjustments | 101 | |||||||||||||||
Balance at March 31, 2014 | $ | 14,913 | ||||||||||||||
Earnout payments | (695 | ) | ||||||||||||||
Fair value adjustments | 1,937 | |||||||||||||||
Balance at March 31, 2015 | $ | 16,155 | ||||||||||||||
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 year ended March 31, 2015, there were no adjustments to fair value of such assets, except for the intangible assets acquired from Gennius (see Note 5). |
Business_Combinations
Business Combinations | 12 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Business Combinations | Business Combinations | |||
Acquisition of Gennius | ||||
On March 11, 2015, the Company acquired Gennius, a leading provider of healthcare data analytics. The preliminary Gennius purchase price totaled $2,345. The Company accounted for the Gennius 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. 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. Goodwill arising from the acquisition of Gennius was determined as the excess of the preliminary purchase price over the net acquisition date fair values of the acquired assets and the liabilities assumed, and is not deductible for tax purposes. The Gennius goodwill represents the expected future synergies resulting from the integration of the Gennius healthcare data analytics technology, which will enhance the Company's current enterprise analytics competencies and broaden its business intelligence capabilities for addressing new value-based care requirements. Gennius operates under the NextGen Division. | ||||
The total preliminary purchase price for the Gennius acquisition during the year ended March 31, 2015 is summarized as follows: | ||||
Gennius | ||||
Total preliminary cash purchase price | $ | 2,345 | ||
The following table summarizes the preliminary purchase price allocation for the Gennius acquisition: | ||||
Gennius | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | ||||
Other assets | $ | 4 | ||
Deferred revenues | (37 | ) | ||
Other liabilities | (189 | ) | ||
Total net tangible assets acquired and liabilities assumed | (222 | ) | ||
Fair value of identifiable intangible assets acquired: | ||||
Software technology | 1,800 | |||
Goodwill | 767 | |||
Total identifiable intangible assets acquired | 2,567 | |||
Total preliminary purchase price | $ | 2,345 | ||
The actual results to date and pro forma effects of the Gennius acquisition would not have been material to the Company’s results of operations and are therefore not presented. | ||||
Acquisition of Mirth | ||||
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 enhances the Company’s current enterprise interoperability initiatives and broadens its accountable and collaborative care, population health, disease management and clinical data exchange offerings. The Mirth purchase price totaled $56,222, which included 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 share-based contingent consideration was adjusted by a $5,239 fair value discount, which is being amortized over the three year achievement period. 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 future market participant synergies 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 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. 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 purchase price for the Mirth acquisition during the year ended March 31, 2014 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 final 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 $3,939) | $ | 4,231 | ||
Equipment and improvements | 822 | |||
Accounts payable and accrued liabilities | (764 | ) | ||
Deferred revenues | (5,802 | ) | ||
Total net tangible assets acquired and liabilities assumed | (1,513 | ) | ||
Fair value of identifiable intangible assets acquired: | ||||
Trade name | 1,350 | |||
Customer relationships | 2,800 | |||
Software technology | 22,200 | |||
Goodwill | 31,385 | |||
Total identifiable intangible assets acquired | 57,735 | |||
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 | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 reportable segment consists of the following: | ||||||||||||
March 31, 2014 | Acquisitions | March 31, 2015 | ||||||||||
QSI Dental Division (1) | $ | 7,289 | $ | — | $ | 7,289 | ||||||
NextGen Division | 33,225 | 767 | 33,992 | |||||||||
Hospital Solutions Division (2) | — | — | — | |||||||||
RCM Services Division | 32,290 | — | 32,290 | |||||||||
Total goodwill | $ | 72,804 | $ | 767 | $ | 73,571 | ||||||
_______________________ | ||||||||||||
(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. | ||||||||||||
(2) The gross carrying amount of goodwill and corresponding accumulated impairment losses for the Hospital Solutions division were $21,323 for the years ended March 31, 2015 and 2014. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||
In connection with the Gennius acquisition, the Company recorded $1,800 of intangible assets related to software technology. The Company is amortizing the software technology over ten years. The weighted average amortization period for the total amount of intangible assets acquired is 10 years. | ||||||||||||||||
The Company’s definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Customer | Trade Name and Contracts | Software | Total | |||||||||||||
Relationships | Technology | |||||||||||||||
Gross carrying amount | $ | 22,050 | $ | 3,368 | $ | 25,310 | $ | 50,728 | ||||||||
Accumulated amortization | (14,986 | ) | (2,159 | ) | (5,894 | ) | (23,039 | ) | ||||||||
Net intangible assets | $ | 7,064 | $ | 1,209 | $ | 19,416 | $ | 27,689 | ||||||||
March 31, 2014 | ||||||||||||||||
Customer | Trade Name and Contracts | Software | Total | |||||||||||||
Relationships | Technology | |||||||||||||||
Gross carrying amount | $ | 22,050 | $ | 3,368 | $ | 23,510 | $ | 48,928 | ||||||||
Accumulated amortization | (11,837 | ) | (1,599 | ) | (2,476 | ) | (15,912 | ) | ||||||||
Net intangible assets | $ | 10,213 | $ | 1,769 | $ | 21,034 | $ | 33,016 | ||||||||
Amortization expense related to customer relationships and trade name and contracts that is included as operating expenses in the consolidated statements of comprehensive income was $3,709, $4,671 and $4,633 for the years ended March 31, 2015, 2014 and 2013, respectively. Amortization expense related to software technology that is included in cost of revenue for software and hardware was $3,418, $3,659 and $2,926 for the years ended March 31, 2015, 2014 and 2013, respectively. | ||||||||||||||||
The following table represents the remaining estimated amortization of definite-lived intangible assets as of March 31, 2015: | ||||||||||||||||
For the year ended March 31, | ||||||||||||||||
2016 | $ | 7,204 | ||||||||||||||
2017 | 6,733 | |||||||||||||||
2018 | 4,481 | |||||||||||||||
2019 | 3,697 | |||||||||||||||
2020 | 3,352 | |||||||||||||||
2021 and beyond | $ | 2,222 | ||||||||||||||
Total | $ | 27,689 | ||||||||||||||
Capitalized_Software_Costs
Capitalized Software Costs | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Research and Development [Abstract] | ||||||||
Capitalized Software Costs | Capitalized Software Costs | |||||||
The Company’s capitalized software development costs are summarized as follows: | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Gross carrying amount | $ | 113,955 | $ | 100,455 | ||||
Accumulated amortization | (73,558 | ) | (61,303 | ) | ||||
Net capitalized software costs | $ | 40,397 | $ | 39,152 | ||||
Amortization expense related to capitalized software costs was $12,817, $12,338 and $9,668 for the years ended March 31, 2015, 2014 and 2013, respectively. | ||||||||
The following table represents the remaining estimated amortization of capitalized software costs as of March 31, 2015. 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, | ||||||||
2016 | $ | 11,200 | ||||||
2017 | 10,600 | |||||||
2018 | 5,500 | |||||||
2019 | 4,800 | |||||||
2020 | 4,700 | |||||||
2021 and beyond | $ | 3,597 | ||||||
Total | $ | 40,397 | ||||||
Composition_of_Certain_Financi
Composition of Certain Financial Statement Captions | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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. | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Accounts receivable, gross | $ | 119,807 | $ | 130,093 | ||||
Sales return reserve | (8,835 | ) | (10,530 | ) | ||||
Allowance for doubtful accounts | (3,303 | ) | (6,295 | ) | ||||
Accounts receivable, net | $ | 107,669 | $ | 113,268 | ||||
Inventories are summarized as follows: | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Computer systems and components | $ | 622 | $ | 834 | ||||
Equipment and improvements are summarized as follows: | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Computer equipment | $ | 42,668 | $ | 37,322 | ||||
Furniture and fixtures | 10,408 | 9,395 | ||||||
Leasehold improvements | 9,767 | 8,874 | ||||||
62,843 | 55,591 | |||||||
Accumulated depreciation and amortization | (42,036 | ) | (32,790 | ) | ||||
Equipment and improvements, net | $ | 20,807 | $ | 22,801 | ||||
Current and non-current deferred revenue are summarized as follows: | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Maintenance | $ | 15,077 | $ | 15,482 | ||||
Professional services | 30,340 | 36,634 | ||||||
Annual license services | 11,130 | 11,176 | ||||||
Undelivered software and other (1) | 9,796 | 7,785 | ||||||
Deferred revenue | $ | 66,343 | $ | 71,077 | ||||
Deferred revenue, net of current | $ | 1,349 | $ | 2,187 | ||||
(1) Includes deferred revenue for Software as a Service ("SaaS") and other subscriptions. | ||||||||
Accrued compensation and related benefits are summarized as follows: | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Payroll, bonus and commission | $ | 13,505 | $ | 6,193 | ||||
Vacation | 10,546 | 9,760 | ||||||
Accrued compensation and related benefits | $ | 24,051 | $ | 15,953 | ||||
Other current and non-current liabilities are summarized as follows: | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Contingent consideration and other liabilities related to acquisitions | $ | 9,124 | $ | 1,052 | ||||
Customer credit balances and deposits | 4,760 | 3,163 | ||||||
Accrued legal expense | 3,527 | 170 | ||||||
Accrued consulting | 2,603 | 1,707 | ||||||
Care services liabilities | 2,381 | 4,351 | ||||||
Accrued EDI expense | 2,322 | 1,702 | ||||||
Self insurance reserve | 2,290 | 2,090 | ||||||
Accrued royalties | 2,063 | 1,418 | ||||||
Other accrued expenses | 4,854 | 5,716 | ||||||
Other current liabilities | $ | 33,924 | $ | 21,369 | ||||
Contingent consideration and other liabilities related to acquisitions | $ | 7,581 | $ | 14,736 | ||||
Deferred rent | 3,122 | 3,509 | ||||||
Uncertain tax position and related liabilities | 4,095 | 841 | ||||||
Deferred income taxes, net | — | 3,206 | ||||||
Other noncurrent liabilities | $ | 14,798 | $ | 22,292 | ||||
Income_Tax
Income Tax | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Tax | Income Tax | |||||||||||
The provision for income taxes consists of the following components: | ||||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Current: | ||||||||||||
Federal taxes | $ | 18,055 | $ | 8,673 | $ | 30,382 | ||||||
State taxes | 1,887 | 2,380 | 5,019 | |||||||||
Foreign taxes | 262 | 252 | 190 | |||||||||
Total current taxes | 20,204 | 11,305 | 35,591 | |||||||||
Deferred: | ||||||||||||
Federal taxes | $ | (9,804 | ) | $ | (2,894 | ) | $ | (8,469 | ) | |||
State taxes | (1,771 | ) | (897 | ) | (742 | ) | ||||||
Foreign taxes | (297 | ) | (193 | ) | (190 | ) | ||||||
Total deferred taxes | (11,872 | ) | (3,984 | ) | (9,401 | ) | ||||||
Provision for income taxes | $ | 8,332 | $ | 7,321 | $ | 26,190 | ||||||
The provision for income taxes differs from the amount computed at the federal statutory rate as follows: | ||||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Current: | ||||||||||||
Federal income tax statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Increase (decrease) resulting from: | ||||||||||||
State income taxes, net of Federal benefit | 2 | 4.2 | 4 | |||||||||
Research and development tax credits | (4.4 | ) | (5.3 | ) | (2.1 | ) | ||||||
Qualified production activities income deduction | (5.4 | ) | (4.9 | ) | (4.6 | ) | ||||||
Impairment of goodwill | — | 5.7 | 7.5 | |||||||||
Other non-recurring adjustments for State taxes | (1.8 | ) | — | — | ||||||||
Other | (2.0 | ) | (2.9 | ) | (1.8 | ) | ||||||
Effective income tax rate | 23.4 | % | 31.8 | % | 38 | % | ||||||
During the years ended March 31, 2015, 2014, and 2013, the Company recognized federal research and development tax credits of $1,560, $1,196 and $1,461, respectively, and state research and development tax credits of approximately $380, $251 and $145, respectively. The Internal Revenue Service (“IRS”) statute related to research and development credits expired on December 31, 2013 and was retroactively reinstated through December 31, 2014 in December 2014. The research and development credits claimed by the Company for the year ended March 31, 2015 represent credits for the nine-month period from April 1, 2014 through December 31, 2014. | ||||||||||||
The Company also claimed the qualified production activities deduction under Section 199 of the Internal Revenue Code (“IRC”) for $5,528, $3,189, and $9,032 (pre-tax) during the years ended March 31, 2015, 2014, and 2013, respectively. The research and development credits and the qualified production activities income deduction calculated by the Company involve certain assumptions and judgments regarding qualification of expenses under the relevant tax code provisions. | ||||||||||||
The net deferred tax assets and liabilities in the accompanying consolidated balance sheets consist of the following: | ||||||||||||
March 31, | March 31, | |||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Deferred revenue | $ | 11,970 | $ | 10,144 | ||||||||
Inventory valuation | 56 | 46 | ||||||||||
Accrued compensation and benefits | 7,744 | 5,219 | ||||||||||
Deferred compensation | 2,342 | 1,941 | ||||||||||
Compensatory stock option expense | 2,852 | 2,094 | ||||||||||
Allowance for doubtful accounts | 4,944 | 6,791 | ||||||||||
Intangible assets | 7,603 | 6,086 | ||||||||||
Research and development credit | 1,988 | 2,434 | ||||||||||
Net operating loss | 512 | — | ||||||||||
Other | 3,561 | 2,992 | ||||||||||
Total deferred tax assets | 43,572 | 37,747 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Accelerated depreciation | $ | (756 | ) | $ | (1,582 | ) | ||||||
Capitalized software | (8,728 | ) | (13,919 | ) | ||||||||
Prepaid expense | (1,321 | ) | (1,199 | ) | ||||||||
State income taxes | (730 | ) | (433 | ) | ||||||||
Total deferred tax liabilities | (11,535 | ) | (17,133 | ) | ||||||||
Valuation allowance | (1,840 | ) | (2,288 | ) | ||||||||
Deferred tax assets, net | $ | 30,197 | $ | 18,326 | ||||||||
The deferred tax assets and liabilities have been shown net in the accompanying consolidated balance sheets based on the long-term or short-term nature of the items that give rise to the deferred amount. The Company expects to receive the full benefit of the deferred tax assets recorded with the exception of a specific state tax credit for which the Company has recorded a valuation allowance. | ||||||||||||
Uncertain tax positions | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded within other noncurrent liabilities | ||||||||||||
in the Company’s consolidated balance sheet, is as follows: | ||||||||||||
Balance at March 31, 2013 | $ | 733 | ||||||||||
Additions for current/prior year tax positions | 405 | |||||||||||
Reductions for prior year tax positions | (263 | ) | ||||||||||
Balance at March 31, 2014 | $ | 875 | ||||||||||
Additions for prior year tax positions | 3,106 | |||||||||||
Reductions for prior year tax positions | (218 | ) | ||||||||||
Balance at March 31, 2015 | $ | 3,763 | ||||||||||
During the year ended March 31, 2015, the Company recorded additional liabilities of $3,106 mostly related to various state tax planning benefits recorded in the current year for prior year tax positions. The total amount of unrecognized tax benefit that, if recognized, would decrease the income tax provision is $3,763. | ||||||||||||
The Company’s practice is to recognize estimated interest and/or penalties related to income tax matters in selling, general and administrative expenses. The Company had approximately $332 and $80 of accrued interest related to income tax matters at March 31, 2015 and 2014, respectively. No penalties were accrued. | ||||||||||||
The Company is no longer subject to U.S. federal income tax examinations for tax years before 2014. With a few exceptions, the Company is no longer subject to state or local income tax examinations for tax years before 2010. 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. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2015 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans |
The Company has a 401(k) plan available to substantially all of its employees. Participating employees may defer up to the IRS limit based on the IRC per year. The annual contribution is determined by a formula set by the Company’s Board of Directors and may include matching and/or discretionary contributions. The amount of the Company match is discretionary and subject to change. The retirement plans may be amended or discontinued at the discretion of the Board of Directors. Contributions of $949, $820 and $889 were made by the Company to the 401(k) plan for the years ended March 31, 2015, 2014 and 2013, respectively. | |
The Company has a deferred compensation plan (the “Deferral Plan”) for the benefit of those employees who qualify. Participating employees may defer up to 75% of their salary and 100% of their annual bonus for a Deferral Plan year. In addition, the Company may, but is not required to, make contributions into the Deferral Plan on behalf of participating employees, and the amount of the Company match is discretionary and subject to change. Each employee's deferrals together with earnings thereon are accrued as part of the long-term liabilities of the Company. Investment decisions are made by each participating employee from a family of mutual funds. The deferred compensation liability was $5,750 and $4,809 at March 31, 2015 and 2014, respectively. To offset this liability, the Company has purchased life insurance policies on some of the participants. The Company is the owner and beneficiary of the policies and the cash values are intended to produce cash needed to help make the benefit payments to employees when they retire or otherwise leave the Company. The Company intends to hold the life insurance policy until the death of the plan participant. The net cash surrender value of the life insurance policies for deferred compensation was $6,004 and $4,865 at March 31, 2015 and 2014, respectively. The values of the life insurance policies and the related Company obligation are included on the accompanying consolidated balance sheets in long-term other assets and long-term deferred compensation, respectively. The Company made contributions of $86, $62 and $49 to the Deferral Plan for the years ended March 31, 2015, 2014 and 2013, respectively. |
ShareBased_Awards
Share-Based Awards | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Share-Based Awards | Share-Based Awards | ||||||||||||
Employee Stock Option Plans | |||||||||||||
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 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 and directors of the Company may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the 2005 Plan, the exercise price of each option is determined based on the date of grant and expires no later than 10 years from the date of grant. Awards granted pursuant to the 2005 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of the Company, as such term is defined in the 2005 Plan, awards under the 2005 Plan will fully vest under certain circumstances. The 2005 Plan expires on May 25, 2015, unless terminated earlier by the Board of Directors. As of March 31, 2015, there were 1,636,176 outstanding options, 78,205 outstanding shares of restricted stock, restricted stock units and performance based restricted stock, and 2,298,488 shares available for future grant under the 2005 Plan. On May 20, 2015, the Board of Directors approved a stock option and incentive plan (the “2015 Plan”) subject to shareholder approval at the Company’s 2015 Annual Shareholders’ Meeting. The full text the 2015 Plan will be attached to the Company’s definitive proxy statement for the Company’s 2015 Annual Shareholders’ Meeting to be filed with the Securities and Exchange Commission. | |||||||||||||
A summary of stock option transactions during the years ended March 31, 2015, 2014 and 2013 is as follows: | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | (in thousands) | |||||||||||
per Share | Life (years) | ||||||||||||
Outstanding, March 31, 2012 | 988,337 | $ | 32.09 | ||||||||||
Granted | 556,500 | 27.78 | |||||||||||
Exercised | (56,366 | ) | 16.81 | $ | 82 | ||||||||
Forfeited/Canceled | (329,288 | ) | 31.42 | ||||||||||
Outstanding, March 31, 2013 | 1,159,183 | $ | 30.54 | ||||||||||
Granted | 469,000 | 18.78 | |||||||||||
Exercised | (111,272 | ) | 19.78 | $ | 264 | ||||||||
Forfeited/Canceled | (146,810 | ) | 30.28 | ||||||||||
Outstanding, March 31, 2014 | 1,370,101 | $ | 27.85 | 5.8 | |||||||||
Granted | 469,650 | 15.97 | 7.2 | ||||||||||
Forfeited/Canceled | (203,575 | ) | 24.85 | 4.9 | |||||||||
Outstanding, March 31, 2015 | 1,636,176 | $ | 24.82 | 5.5 | $ | 8 | |||||||
Vested and expected to vest, March 31, 2015 | 1,533,192 | $ | 25.03 | 5.5 | $ | 8 | |||||||
Exercisable, March 31, 2015 | 567,886 | $ | 30.81 | 4.1 | $ | — | |||||||
The Company utilizes the Black-Scholes valuation model for estimating the fair value of stock options and related share-based compensation with the following assumptions: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
March 31, 2015 | March 31, 2014 | March 31, 2013 | |||||||||||
Expected life | 4.8 years | 4.9 years | 5.0 years | ||||||||||
Expected volatility | 36.1% - 36.6% | 43.4% - 43.7% | 41.3% - 45.1% | ||||||||||
Expected dividends | 4.3% - 4.4% | 3.1% - 3.9% | 2.4% - 4.0% | ||||||||||
Risk-free rate | 1.6% - 1.7% | 1.0% - 1.5% | 0.7% - 0.8% | ||||||||||
The weighted-average grant date fair value of stock options granted during the years ended March 31, 2015, 2014 and 2013 was $3.50, $5.20 and $8.22 per share, respectively. | |||||||||||||
During the years ended March 31, 2015, 2014 and 2013, a total of 469,650, 469,000 and 556,500 options, respectively, 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 the years ended March 31, 2015, 2014 and 2013 is as follows: | |||||||||||||
Option Grant Date | Number of Shares | Exercise Price | Vesting | Expires | |||||||||
Terms (1) | |||||||||||||
March 11, 2015 | 10,000 | $ | 15.84 | Five years | March 11, 2023 | ||||||||
September 2, 2014 | 20,000 | $ | 15.63 | Five years | September 2, 2022 | ||||||||
June 3, 2014 | 439,650 | $ | 15.99 | Five years | June 3, 2022 | ||||||||
Fiscal year 2015 option grants | 469,650 | ||||||||||||
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. | ||||||||||||
Employee Share Purchase Plan | |||||||||||||
On August 11, 2014, the Company’s shareholders approved an Employee Share Purchase Plan (the “Purchase Plan”) under which 4,000,000 shares of common stock were reserved for future grant. The Purchase Plan allows eligible employees to purchase shares through payroll deductions of up to 15% of total base salary at a price equal to 90% of the lower of the fair market values of the shares as of the beginning or the end of the corresponding offering period. Any shares purchased under the Purchase Plan are subject to a six-month holding period. Employees are limited to purchasing no more than 1,500 shares on any single purchase date and no more than $25,000 in total fair market value of shares during any one calendar year. As of March 31, 2015, the Company has issued 33,609 shares under the Purchase Plan and 3,966,391 shares are available for future issuance. The amount of share-based compensation expense recorded for this plan was insignificant for the year ended March 31, 2015. | |||||||||||||
Performance-Based Awards | |||||||||||||
On May 27, 2014, the Compensation Committee of the Board of Directors approved the Company's fiscal year 2015 Executive Compensation Program (the "Program") under which the Company's named executive officers are eligible to receive cash bonuses based on meeting certain target increases in revenue and non-GAAP financial targets, as defined in the Program (i.e. non-GAAP earnings per share and a measure of free cash flow) for fiscal year 2015. Under the Program, the named executive officers also received certain equity incentive awards issued under the 2005 Plan. These equity awards included (i) an aggregate of 105,000 options to purchase the Company's common stock, which were granted on the first day of the next open trading window under the Company's Insider Trading Policy (June 3, 2014), 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 a vesting schedule of five equal annual installments commencing one year following the date of grant; and (ii) a potential award of up to an aggregate of 170,000 restricted performance shares of the Company's common stock vesting over a three year period based on the achievement of target average daily share prices for the ninety calendar day period ending May 31st of each of the subsequent three fiscal years. In addition, under the Program, a target pool of up to 390,000 options is available for new hires, promotions, and certain for high-performing, non-executive employees based on achievement of performance targets. | |||||||||||||
Share-based compensation expense associated with the restricted performance shares with market conditions under the Program is based on the grant date fair value measured at the underlying closing share price on the date of grant using a Monte Carlo-based valuation model. | |||||||||||||
Share-based compensation expense associated with the options under the Program are initially based on the number of options expected to vest after assessing the probability that the performance targets will be met. Cumulative adjustments are recorded quarterly to reflect subsequent changes in the estimated outcome of performance-related conditions. The Company utilizes the Black-Scholes option valuation model with the assumptions in the table below to calculate the share-based compensation expense related to the options. | |||||||||||||
Share-based compensation expense recorded for these performance-based awards was $463 for the year ended March 31, 2015 and was insignificant for the years ended March 31, 2014 and 2013. | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
31-Mar-15 | 31-Mar-14 | 31-Mar-13 | |||||||||||
Expected life | 4.8 years | 4.9 years | 5.0 years | ||||||||||
Expected volatility | 35.9% - 36.5% | 36.9% - 43.5% | 41.7% - 45.0% | ||||||||||
Expected dividends | 4.3% - 5.0% | 3.2% - 4.1% | 2.5% - 4.0% | ||||||||||
Risk-free rate | 1.4% - 1.8% | 1.4% - 1.8% | 0.6% - 0.7% | ||||||||||
Non-vested stock option award activity, including employee stock options and performance-based awards, during the years ended March 31, 2015, 2014 and 2013 is summarized as follows: | |||||||||||||
Non-Vested | Weighted- | ||||||||||||
Number of | Average | ||||||||||||
Shares | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
per Share | |||||||||||||
Outstanding, March 31, 2012 | 778,319 | $ | 10.76 | ||||||||||
Granted | 556,500 | 8.22 | |||||||||||
Vested | (201,191 | ) | 8.43 | ||||||||||
Forfeited/Canceled | (329,288 | ) | 9.92 | ||||||||||
Outstanding, March 31, 2013 | 804,340 | $ | 9.89 | ||||||||||
Granted | 469,000 | 5.2 | |||||||||||
Vested | (134,970 | ) | 9.3 | ||||||||||
Forfeited/Canceled | (146,810 | ) | 9.33 | ||||||||||
Outstanding, March 31, 2014 | 991,560 | $ | 7.73 | ||||||||||
Granted | 469,650 | 3.5 | |||||||||||
Vested | (269,785 | ) | 8.24 | ||||||||||
Forfeited/Canceled | (123,135 | ) | 6.57 | ||||||||||
Outstanding, March 31, 2015 | 1,068,290 | $ | 5.81 | ||||||||||
As of March 31, 2015, $4,293 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted-average period of 3.2 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 years ended March 31, 2015, 2014 and 2013 was $2,224, $1,255 and $1,696, respectively. | |||||||||||||
Director Awards | |||||||||||||
On May 28, 2014, the Board of Directors approved its 2015 Director Compensation Program, pursuant to which each non-employee director is to be granted shares of restricted stock upon election or re-election to the Board of Directors. 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 $877, $629 and $566 for the years ended March 31, 2015, 2014 and 2013, respectively. Restricted stock activity for the years ended March 31, 2015, 2014 and 2013 is summarized as follows: | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
per Share | |||||||||||||
Outstanding, March 31, 2012 | 30,001 | $ | 36.32 | ||||||||||
Granted | 18,939 | 19.32 | |||||||||||
Vested | (18,555 | ) | 32.14 | ||||||||||
Outstanding, March 31, 2013 | 30,385 | $ | 27.09 | ||||||||||
Granted | 57,324 | 20.75 | |||||||||||
Vested | (16,302 | ) | 30.64 | ||||||||||
Canceled | (6,836 | ) | $ | 22.59 | |||||||||
Outstanding, March 31, 2014 | 64,571 | $ | 20.74 | ||||||||||
Granted | 48,414 | 15.77 | |||||||||||
Vested | (34,780 | ) | 21.33 | ||||||||||
Outstanding, March 31, 2015 | 78,205 | $ | 17.94 | ||||||||||
As of March 31, 2015, $760 of total unrecognized compensation costs related to restricted stock is expected to be recognized over a weighted-average period of 1.0 years. This amount does not include the cost of new restricted stock that may be granted in future periods. |
Commitments_Guarantees_and_Con
Commitments, Guarantees and Contingencies | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||
Commitments, Guarantees and Contingencies | Commitments, Guarantees and Contingencies | |||||||||||||||||||||
The Company leases facilities and offices under irrevocable operating lease agreements expiring at various dates with rent escalation clauses. Rent expense related to these leases is recognized on a straight-line basis over the lease terms. Rent expense for the years ended March 31, 2015, 2014 and 2013 was $7,416, $7,604 and $5,753, respectively. | ||||||||||||||||||||||
The following table summarizes our significant contractual obligations at March 31, 2015 and the effect that such obligations are expected to have on our liquidity and cash in future periods: | ||||||||||||||||||||||
For the year ended March 31, | ||||||||||||||||||||||
Contractual Obligations | Total | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 and beyond | |||||||||||||||
Operating lease obligations | $ | 47,784 | $ | 7,461 | $ | 7,602 | $ | 7,641 | $ | 4,628 | $ | 3,572 | $ | 16,880 | ||||||||
Contingent consideration and other acquisition related liabilities (excluding share-based payments) | 1,400 | 700 | 700 | — | — | — | — | |||||||||||||||
Total | $ | 49,184 | $ | 8,161 | $ | 8,302 | $ | 7,641 | $ | 4,628 | $ | 3,572 | $ | 16,880 | ||||||||
The deferred compensation liability as of March 31, 2015 was $5,750, which is not included in the table above as the timing of future benefit payments to employees is not readily determinable. | ||||||||||||||||||||||
The uncertain tax position liability as of March 31, 2015 was $3,763, which is not included in the table above as the timing of expected payments is not readily determinable. | ||||||||||||||||||||||
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 U.S. 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 Company filed a demurrer to the complaint, which the court granted on April 10, 2014. An amended complaint was filed on April 25, 2014. The amended 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 amended complaint seeks actual damages, exemplary and punitive damages and costs. The Company filed a demurrer to the amended complaint. On July 29, 2014, the court sustained the demurrer with respect to the breach of fiduciary duty claim, and overruled the demurrer with respect to the fraud and deceit claims. On August 28, 2014, the Company filed an answer and cross-complaint. The Company believes that plaintiff’s claims are without merit and continues to defend against them vigorously. | ||||||||||||||||||||||
Federal Securities Class Action | ||||||||||||||||||||||
On November 19, 2013, a putative class action complaint was filed on behalf of the shareholders of the Company other than the defendants against the Company and certain of the Company’s officers and directors in the United States District Court for the Central District of California by a shareholder of the Company. After the court appointed lead plaintiffs and lead counsel for this action, and recaptioned the action In re Quality Systems, Inc. Securities Litigation, No. 8L13-cv-01818-CJC(JPRx), lead plaintiffs filed an amended complaint on April 7, 2014. The amended 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 filed a motion to dismiss the amended complaint on June 20, 2014, which the court granted on October 20, 2014, dismissing the complaint with prejudice. Plaintiffs filed a motion for reconsideration of the Court's order, which the court denied on January 5, 2015. On January 30, 2015, Plaintiffs filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit, captioned In re Quality Systems, Inc. Securities Litigation, No. 15-55173. Briefing on the appeal is scheduled to be completed in the fall of 2015. The Company believes that plaintiff’s claims are without merit and continues 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 parties have agreed to stay this litigation until the United States Court of Appeals for the Ninth Circuit issues a ruling on the pending appeal described above under the caption “Federal Securities Class Action.”. The Company believes that plaintiff’s claims are without merit and intends to defend against them vigorously. |
Operating_Segment_Information
Operating Segment Information | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 (consisting of the Chief Executive Officer, Interim Chief Financial Officer and Chief Operating Officer) in deciding how to allocate resources and in assessing performance. The chief operating decision making group evaluates performance based upon stand-alone segment operating income. Since assets by segment are not reported to or used by the Company’s chief operating decision making group to allocate resources, or to assess performance, total assets by segment are not disclosed. | ||||||||||||
Effective April 1, 2014, the Company refined the measurement of its segment data to better reflect an organizational structure whereby certain expenses managed by functional area leadership are no longer classified within the operating segments but rather as a component of Corporate and unallocated. Such classification is consistent with the disaggregated financial information used by the Company's chief operating decision making group. The amounts classified as Corporate and unallocated have historically consisted primarily of corporate general and administrative costs and other centrally managed overhead costs, including accounting and finance, human resources, and legal costs, as well as non-recurring acquisition costs and the post-acquisition amortization of certain intangible assets. Currently, as a result of the refinement of its segment data, the Company no longer classifies the costs of the marketing and research and development functional areas and the amortization of capitalized software costs within the operating segments. The Company has retroactively reclassified the prior years' operating income in the table below to present all segment information on a comparable basis. | ||||||||||||
Operating segment data is as follows: | ||||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Revenue: | ||||||||||||
QSI Dental Division | $ | 18,451 | $ | 19,840 | $ | 19,990 | ||||||
NextGen Division | 373,765 | 341,120 | 344,315 | |||||||||
Hospital Solutions Division | 18,004 | 15,614 | 31,413 | |||||||||
RCM Services Division | 80,005 | 68,093 | 64,511 | |||||||||
Consolidated revenue | $ | 490,225 | $ | 444,667 | $ | 460,229 | ||||||
Operating income (loss): | ||||||||||||
QSI Dental Division | $ | 5,228 | $ | 6,155 | $ | 5,819 | ||||||
NextGen Division | 178,680 | 155,578 | 158,110 | |||||||||
Hospital Solutions Division | (2,790 | ) | (7,453 | ) | 2,997 | |||||||
RCM Services Division | 12,873 | 9,343 | 8,417 | |||||||||
Unallocated corporate expense | (158,035 | ) | (140,535 | ) | (106,243 | ) | ||||||
Consolidated operating income | $ | 35,956 | $ | 23,088 | $ | 69,100 | ||||||
The major components of the Corporate and unallocated amounts are summarized in the table below: | ||||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Research and development costs | 69,240 | 41,524 | 30,865 | |||||||||
Amortization of capitalized software costs | 12,817 | 12,338 | 9,668 | |||||||||
Marketing expense | 11,913 | 10,123 | 7,012 | |||||||||
Other Corporate and overhead costs (1) | 64,065 | 76,550 | 58,698 | |||||||||
Total Corporate and unallocated | 158,035 | 140,535 | 106,243 | |||||||||
___________________________________ | ||||||||||||
(1) Includes the $25,971 Hospital Solutions Division impairment charge recorded in the year ended March 31, 2014. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On May 20, 2015, 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 June 12, 2015 with an expected distribution date on or about July 6, 2015. |
Selected_Quarterly_Operating_R
Selected Quarterly Operating Results | 12 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Selected Quarterly Operating Results [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Operating Results | Selected Quarterly Operating Results | |||||||||||||||||||||||||||||||
The following table presents quarterly unaudited consolidated financial information for the eight quarters preceding March 31, 2015. Such information is presented on the same basis as the annual information presented in the accompanying consolidated financial statements. In management’s opinion, this information reflects all adjustments that are necessary for a fair statement of the results for these periods. | ||||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
(Unaudited) | 6/30/13 | 9/30/13 | 12/31/13 | 3/31/14 | 6/30/14 | 9/30/14 | 12/31/14 | 3/31/15 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Software and hardware | $ | 15,972 | $ | 15,562 | $ | 14,114 | $ | 15,186 | $ | 14,743 | $ | 14,230 | $ | 16,339 | $ | 16,061 | ||||||||||||||||
Implementation and training services | 6,575 | 7,809 | 5,046 | 6,518 | 6,266 | 7,040 | 3,658 | 6,684 | ||||||||||||||||||||||||
System sales | 22,547 | 23,371 | 19,160 | 21,704 | 21,009 | 21,270 | 19,997 | 22,745 | ||||||||||||||||||||||||
Maintenance | 38,608 | 40,313 | 39,763 | 41,376 | 40,805 | 42,135 | 43,045 | 43,234 | ||||||||||||||||||||||||
Electronic data interchange services | 16,692 | 16,545 | 16,637 | 17,421 | 18,319 | 18,906 | 19,051 | 20,082 | ||||||||||||||||||||||||
Revenue cycle management and related services | 16,015 | 15,467 | 16,178 | 15,316 | 16,693 | 17,432 | 20,392 | 19,720 | ||||||||||||||||||||||||
Other services | 15,667 | 15,385 | 17,116 | 19,386 | 21,068 | 20,776 | 20,939 | 22,607 | ||||||||||||||||||||||||
Maintenance, EDI, RCM and other services | 86,982 | 87,710 | 89,694 | 93,499 | 96,885 | 99,249 | 103,427 | 105,643 | ||||||||||||||||||||||||
Total revenues | 109,529 | 111,081 | 108,854 | 115,203 | 117,894 | 120,519 | 123,424 | 128,388 | ||||||||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||||||||||
Software and hardware | 4,934 | 4,779 | 27,398 | 7,115 | 6,641 | 6,521 | 6,127 | 5,404 | ||||||||||||||||||||||||
Implementation and training services | 7,134 | 6,972 | 7,466 | 8,109 | 7,151 | 6,688 | 4,584 | 5,479 | ||||||||||||||||||||||||
Total cost of system sales | 12,068 | 11,751 | 34,864 | 15,224 | 13,792 | 13,209 | 10,711 | 10,883 | ||||||||||||||||||||||||
Maintenance | 5,302 | 5,262 | 5,642 | 6,384 | 6,914 | 6,785 | 7,365 | 7,802 | ||||||||||||||||||||||||
Electronic data interchange services | 10,796 | 10,650 | 10,276 | 10,845 | 11,999 | 12,015 | 11,956 | 12,274 | ||||||||||||||||||||||||
Revenue cycle management and related services | 11,401 | 11,007 | 11,736 | 12,059 | 12,706 | 13,202 | 14,246 | 14,252 | ||||||||||||||||||||||||
Other services | 8,505 | 9,012 | 8,537 | 8,842 | 10,779 | 11,562 | 10,082 | 10,630 | ||||||||||||||||||||||||
Total cost of maintenance, EDI, RCM and other services | 36,004 | 35,931 | 36,191 | 38,130 | 42,398 | 43,564 | 43,649 | 44,958 | ||||||||||||||||||||||||
Total cost of revenue | 48,072 | 47,682 | 71,055 | 53,354 | 56,190 | 56,773 | 54,360 | 55,841 | ||||||||||||||||||||||||
Gross profit | 61,457 | 63,399 | 37,799 | 61,849 | 61,704 | 63,746 | 69,064 | 72,547 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 35,096 | 38,578 | 36,864 | 38,676 | 36,730 | 38,681 | 41,482 | 41,279 | ||||||||||||||||||||||||
Research and development costs | 5,614 | 7,615 | 13,175 | 15,120 | 16,236 | 16,898 | 18,468 | 17,638 | ||||||||||||||||||||||||
Amortization of acquired intangible assets | 1,194 | 1,260 | 1,219 | 1,132 | 983 | 908 | 904 | 898 | ||||||||||||||||||||||||
Impairment of goodwill and other assets | — | — | 5,873 | — | — | — | — | — | ||||||||||||||||||||||||
Total operating expenses | 41,904 | 47,453 | 57,131 | 54,928 | 53,949 | 56,487 | 60,854 | 59,815 | ||||||||||||||||||||||||
Income (loss) from operations | 19,553 | 15,946 | (19,332 | ) | 6,921 | 7,755 | 7,259 | 8,210 | 12,732 | |||||||||||||||||||||||
Interest income (expense), net | 31 | (205 | ) | 121 | 322 | 54 | 69 | (82 | ) | (271 | ) | |||||||||||||||||||||
Other income (expense), net | (254 | ) | (155 | ) | 18 | 35 | 9 | (26 | ) | — | (45 | ) | ||||||||||||||||||||
Income (loss) before provision for income taxes | 19,330 | 15,586 | (19,193 | ) | 7,278 | 7,818 | 7,302 | 8,128 | 12,416 | |||||||||||||||||||||||
Provision for (benefit of) income taxes | 6,385 | 5,465 | (6,606 | ) | 2,077 | 2,655 | 2,552 | 1,452 | 1,673 | |||||||||||||||||||||||
Net income (loss) | $ | 12,945 | $ | 10,121 | $ | (12,587 | ) | $ | 5,201 | $ | 5,163 | $ | 4,750 | $ | 6,676 | $ | 10,743 | |||||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||||||||||
Basic* | $ | 0.22 | $ | 0.17 | $ | (0.21 | ) | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.11 | $ | 0.18 | |||||||||||||||
Diluted* | $ | 0.22 | $ | 0.17 | $ | (0.21 | ) | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.11 | $ | 0.18 | |||||||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 59,559 | 59,734 | 60,173 | 60,208 | 60,230 | 60,247 | 60,272 | 60,288 | ||||||||||||||||||||||||
Diluted | 59,572 | 59,751 | 60,173 | 60,592 | 60,770 | 60,788 | 60,855 | 60,956 | ||||||||||||||||||||||||
Dividends declared per common share | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | ||||||||||||||||
____________________ | ||||||||||||||||||||||||||||||||
* | Quarterly EPS may not sum to annual EPS due to rounding |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | CHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
Sales Return Reserve | ||||||||||||||||
(in thousands) | Balance at Beginning of Year | Additions Charged Against Revenue | Deductions | Balance at End of Year | ||||||||||||
For the year ended | ||||||||||||||||
31-Mar-15 | $ | 10,530 | $ | 8,038 | $ | (9,733 | ) | $ | 8,835 | |||||||
31-Mar-14 | $ | 6,506 | $ | 17,966 | $ | (13,942 | ) | $ | 10,530 | |||||||
31-Mar-13 | $ | 2,229 | $ | 10,783 | $ | (6,506 | ) | $ | 6,506 | |||||||
Allowance for Doubtful Accounts | ||||||||||||||||
(in thousands) | Balance at Beginning of Year | Additions Charged to Costs and Expenses | Deductions | Balance at End of Year | ||||||||||||
For the year ended | ||||||||||||||||
31-Mar-15 | $ | 6,295 | $ | 855 | $ | (3,847 | ) | $ | 3,303 | |||||||
31-Mar-14 | $ | 11,823 | $ | 1,467 | $ | (6,995 | ) | $ | 6,295 | |||||||
31-Mar-13 | $ | 8,481 | $ | 6,885 | $ | (3,543 | ) | $ | 11,823 | |||||||
Valuation Allowance on Deferred Tax Assets | ||||||||||||||||
(in thousands) | Balance at Beginning of Year | Additions Charged to Costs and Expenses | Deductions | Balance at End of Year | ||||||||||||
For the year ended | ||||||||||||||||
March 31, 2015 | $ | 2,288 | $ | — | $ | (448 | ) | $ | 1,840 | |||||||
March 31, 2014 | $ | 2,003 | $ | 285 | $ | — | $ | 2,288 | ||||||||
March 31, 2013 | $ | 1,446 | $ | 557 | $ | — | $ | 2,003 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 consists of NextGen Healthcare Information Systems, LLC (“NextGen”), NextGen RCM Services, LLC, QSI Management, LLC, Quality Systems India Healthcare Private Limited (“QSIH”), ViaTrack Systems, LLC (“ViaTrack”), Matrix Management Solutions, LLC ("Matrix"), Mirth LLC and Mirth Limited ("Mirth"), and Gennius, Inc. ("Gennius") (collectively, the “Company”). Gennius is included in the consolidated financial statements from the date of acquisition (March 11, 2015). All intercompany accounts and transactions have been eliminated. | |||||||||||
Business Segments | Business Segments. The Company has prepared operating segment information based on the manner in which management disaggregates the Company’s operations for making internal operating decisions. See Note 14. | |||||||||||
Basis of Presentation | Basis of Presentation. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | |||||||||||
References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. | ||||||||||||
Revision [Text Block] | Revision. The accompanying consolidated statements of cash flows for the years ended March 31, 2014 and 2013 have been retrospectively revised to reflect proceeds from sales and maturities of marketable securities and purchases of marketable securities as investing activities rather than operating activities, which resulted in a decrease of $89 in cash provided by operating activities for the year ended March 31, 2014 and a corresponding decrease in cash used in investing activities and an increase of $24 in cash provided by operating activities for the year ended March 31, 2013 and a corresponding increase in cash used in investing activities. The Company has evaluated the impact of the revision and determined that it did not have a material impact on any of its prior period annual and interim consolidated financial statements. | |||||||||||
The accompanying consolidated balance sheet and notes to the consolidated financial statements as of and for the year ended March 31, 2014 have been retrospectively revised to correct the immaterial misclassification of certain noncurrent deferred income taxes, previously reported within other assets, as current deferred income taxes, and other noncurrent liabilities, which resulted in a $3,206 increase in total assets with a corresponding $3,206 increase to total liabilities. In addition, the Company has retrospectively revised the accompanying consolidated balance sheet, consolidated statement of cash flows, and notes to the consolidated financial statements as of and for the year ended March 31, 2014 for certain immaterial misclassifications affecting accounts receivable and other current liabilities. As a result, total assets and total liabilities increased by $3,087 on the consolidated balance sheet as of March 31, 2014. The revision had no net impact on cash provided by operating activities on the consolidated statement of cash flows for the year ended March 31, 2014. The Company has evaluated the impact of the revision and determined that it did not have a material impact on any of its prior period annual and interim consolidated financial statements. | ||||||||||||
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. The Company also generates revenue from sales of hardware and third party software, implementation and training, electronic data interchange (“EDI”), revenue cycle management ("RCM"), maintenance, and other services, including subscriptions, consulting, and hosting services, performed for customers 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 the price charged when the same element is 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 customers 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, then 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 the 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. 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. | ||||||||||||
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 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. | ||||||||||||
Revenue from services are recognized as the corresponding services are performed. Maintenance revenue is recognized ratably over the contractual maintenance period. Revenue from EDI and other transaction processing services are recognized at the time services are provided and billed to customers. RCM service revenue is derived from services fees, which include amounts charged for ongoing billing, collections, and other related services, and are generally billed to the customer as a percentage of total customer collections. The Company does not recognize revenue for services fees until these collections are made by the customer 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 the 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, subscriptions, hosting services, SaaS fees and other services revenue. | ||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents generally consist of cash, money market funds and short-term U.S. Treasury securities with maturities of 90 days or less at the time of purchase. The Company had cash deposits at U.S. banks and financial institutions at March 31, 2015 of which $117,909 was in excess of the Federal Deposit Insurance Corporation insurance limit of $250 per owner. The Company is exposed to credit loss for amounts in excess of insured limits in the event of nonperformance by the institutions; however, the Company does not anticipate nonperformance by these institutions. | |||||||||||
The money market fund in which the Company holds a portion of its cash invests in only investment grade money market instruments from a variety of industries, and therefore bears relatively low market risk. | ||||||||||||
Restricted Cash | Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents consist of cash which is being held by the Company acting as an agent for the disbursement of certain state social services programs. The Company records an offsetting “Care Services liability” (see also Note 9) when it initially receives such cash from the government social service programs and relieves both restricted cash and cash equivalents and the Care Services liability when amounts are disbursed. The Company earns an administrative fee which is based on a percentage of funds disbursed on behalf of certain government social service programs. | |||||||||||
Marketable Securities | Marketable Securities. Marketable securities are classified as available-for-sale and are recorded at fair value, based on quoted market rates when observable or valuation analysis when appropriate. Unrealized gains and losses, are included in shareholders’ equity. Realized gains and losses on investments are included in other income (expense). | |||||||||||
Allowance for Doubtful Accounts | . The Company maintains reserves for potential sales returns and other uncollectible accounts receivable. In aggregate, such reserves reduce the Company's gross accounts receivable to its estimated net realizable value. | |||||||||||
Sales return reserves, which include reserves for returns and other credits, are established based upon the rate of historical returns by revenue type in relation to the corresponding gross revenues. Allowances for doubtful accounts and other uncollectible accounts receivable related to estimated losses resulting from customers’ inability to make required payments are established based on our historical experience of bad debt expense and the aging of accounts receivable balances, net of deferred revenue and specifically reserved accounts. Specific reserves are based on an estimate of the probability of collection for certain troubled accounts. Accounts are written off as uncollectible only after the Company has expended extensive collection efforts. | ||||||||||||
Inventories | Inventories. Inventories consist of hardware for specific customer orders and spare parts and are valued at lower of cost (first-in, first-out) or market. The Company provides a reserve to reduce inventory to its net realizable value. | |||||||||||
Equipment and Improvements | Equipment and Improvements. Equipment and improvements are stated at cost less accumulated depreciation and amortization. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation and amortization of equipment and improvements are recorded over the estimated useful lives of the assets, or the related lease terms if shorter, by the straight-line method. Useful lives generally have the following ranges: | |||||||||||
l | Computer equipment | 3-5 years | ||||||||||
l | Furniture and fixtures | 3-7 years | ||||||||||
l | Leasehold improvements | lesser of lease term or estimated useful life of asset | ||||||||||
Costs incurred to develop internal-use software during the application development stage are capitalized, stated at cost, and amortized using the straight-line method over the estimated useful lives of the assets, which is typically three to seven years. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized, whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. | ||||||||||||
Software Development Costs | Software Development Costs. Development costs, consisting primarily of employee salaries and benefits, 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. Amortization of capitalized software is recorded using the greater of the ratio of current revenues to the total of current and expected revenues of the related product or the straight-line method 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. The Company performs ongoing reviews 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. In addition to the recoverability assessment, the Company routinely reviews the remaining estimated lives of its capitalized software costs. | |||||||||||
Business Combinations | Business Combinations. In accordance with the accounting for business combinations, the Company allocates the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. The purchase price allocation methodology contains uncertainties because it requires the Company to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities, including, but not limited to, intangible assets, goodwill, and contingent consideration liabilities. The Company estimates the fair value of assets and liabilities based upon quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses depending on the nature of the assets being sold. The Company estimates the fair value of the contingent consideration liabilities based on the probability of achieving certain business milestones and/or management's forecast of expected results. Unanticipated events or circumstances may occur which could affect the accuracy of our fair value estimates, including assumptions regarding industry economic factors and business strategies. | |||||||||||
Goodwill | Goodwill. Goodwill acquired in a business combination is measured as the excess of the purchase price, or consideration transferred, over the net acquisition date fair values of the assets acquired and the liabilities assumed. Goodwill is not amortized as it has been determined to have an indefinite useful life. The Company tests goodwill for impairment annually during its first fiscal quarter, referred to as the annual test date, and determined that there was no impairment to its goodwill as of June 30, 2014. 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 year ended March 31, 2015, the Company has not identified any events or circumstances that would require an interim goodwill impairment test. See Note 6. | ||||||||||||
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 ten 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. In addition to the impairment assessment, the Company routinely reviews the remaining estimated lives of its intangible assets. | |||||||||||
The Company has determined that there was no impairment to its intangible assets during the year ended March 31, 2015 | ||||||||||||
Long-Lived Assets | Long-Lived Assets. The Company assesses the recoverability of long-lived 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 long-lived assets to fair value, which is determined by discounting estimated future cash flows. In addition to the impairment assessment, the Company routinely reviews the remaining estimated lives of its long-lived assets. | |||||||||||
The Company has determined that there was no impairment to its long-lived assets during the year ended March 31, 2015. | ||||||||||||
Income Taxes | Income Taxes. Income taxes are provided based on current taxable income and the future tax consequences of temporary differences between the basis of assets and liabilities for financial and tax reporting. The deferred income tax assets and liabilities represent the future state and federal tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future income taxes. At each reporting period, the Company assesses the realizable value of deferred tax assets based on, among other things, estimates of future taxable income and adjusts the related valuation allowance as necessary. The Company makes a number of assumptions and estimates in determining the appropriate amount of expense to record for income taxes. The assumptions and estimates consider the taxing jurisdiction in which the Company operates as well as current tax regulations. Accruals are established for estimates of tax effects for certain transactions and future projected profitability based on the Company's interpretation of existing facts and circumstances. | |||||||||||
Advertising Costs | Advertising Costs. Advertising costs are charged to operations as incurred. The Company does not have any direct-response advertising. Advertising costs, which include trade shows and conventions, were approximately $7,079, $5,600 and $6,499 for the years ended March 31, 2015, 2014 and 2013, respectively, and were included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income. | |||||||||||
Earnings Per Share | Earnings per Share. The Company provides dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. | |||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net income | $ | 27,332 | $ | 15,680 | $ | 42,724 | ||||||
Basic net income per share: | ||||||||||||
Weighted-average shares outstanding — Basic | 60,259 | 59,918 | 59,392 | |||||||||
Basic net income per common share | $ | 0.45 | $ | 0.26 | $ | 0.72 | ||||||
Net income | $ | 27,332 | $ | 15,680 | $ | 42,724 | ||||||
Diluted net income per share: | ||||||||||||
Weighted-average shares outstanding — Basic | 60,259 | 59,918 | 59,392 | |||||||||
Effect of potentially dilutive securities | 590 | 216 | 70 | |||||||||
Weighted-average shares outstanding — Diluted | 60,849 | 60,134 | 59,462 | |||||||||
Diluted net income per common share | $ | 0.45 | $ | 0.26 | $ | 0.72 | ||||||
The computation of diluted net income per share does not include 1,656, 1,355 and 966 options for the years ended March 31, 2015, 2014 and 2013, respectively, because their inclusion would have an anti-dilutive effect on net income per share. | ||||||||||||
Share-Based Compensation | Share-Based Compensation. The Company estimates the fair value of stock options on the date of grant using the Black Scholes option-pricing model. Expected term is estimated based upon the historical exercise behavior and represents the period of time that options granted are expected to be outstanding. Volatility is estimated by using the weighted-average historical volatility of the Company’s common stock, which approximates expected volatility. The risk free rate is the implied yield available on the U.S. Treasury zero-coupon issues with remaining terms equal to the expected term. The expected dividend yield is the average dividend rate during a period equal to the expected term of the option. The Black Scholes model utilizes those inputs to determine the estimated fair value. The fair value of the portion of the award that is ultimately expected to vest is recognized ratably as expense over the requisite service period in the Company’s consolidated statements of comprehensive income. | |||||||||||
Share-based compensation is adjusted on a monthly basis for changes to estimated forfeitures based on a review of historical forfeiture activity. To the extent that actual forfeitures differ, or are expected to differ, from the estimate, share-based compensation expense is adjusted accordingly. The effect of the forfeiture adjustments for years ended March 31, 2015, 2014 and 2013 was not significant. | ||||||||||||
Share-based compensation expense associated with the restricted performance shares with market conditions under our executive compensations plans is based on the grant date fair value measured at the underlying closing share price on the date of grant using a Monte Carlo-based valuation model. | ||||||||||||
See Note 12 for additional details regarding the Company's share-based awards. | ||||||||||||
Sales Taxes | Sales Taxes. The Company records revenue net of sales tax obligation in the consolidated statements of income. | |||||||||||
Use of Estimates | Use of Estimates. The preparation of consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, VSOE, accounts receivable reserves, software development costs, contingent consideration liabilities, goodwill, intangible assets, and income taxes and related credits and deductions. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||
New Accounting Standards | New 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 May 2014, the FASB, along with the International Accounting Standards Board, issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards and GAAP. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires additional disclosure about revenue and provides improved guidance for multiple element arrangements. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Companies are permitted to adopt this new guidance following either a full retrospective or modified retrospective approach. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2018. The Company is currently evaluating the potential impact of implementation of this updated authoritative guidance on its consolidated financial statements. | ||||||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ("ASU 2014-15"), which incorporates and expands upon certain principles that currently exist in U.S. auditing standards. ASU 2014-15 provides guidance regarding management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. The new standard requires management to perform interim and annual evaluations and sets forth principles for considering the mitigating effect of management's plans. The standard mandates certain disclosures when conditions give rise to substantial doubt about a company’s ability to continue as a going concern within one year from the financial statement issuance date. ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016, and all annual and interim periods thereafter. Early adoption is permitted. ASU 2014-15 is effective for the Company for fiscal year ending March 31, 2017. The Company does not expect the adoption of this new standard to have a material impact on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Weighted-average shares outstanding for basic and diluted net income per share | The Company provides dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. | |||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net income | $ | 27,332 | $ | 15,680 | $ | 42,724 | ||||||
Basic net income per share: | ||||||||||||
Weighted-average shares outstanding — Basic | 60,259 | 59,918 | 59,392 | |||||||||
Basic net income per common share | $ | 0.45 | $ | 0.26 | $ | 0.72 | ||||||
Net income | $ | 27,332 | $ | 15,680 | $ | 42,724 | ||||||
Diluted net income per share: | ||||||||||||
Weighted-average shares outstanding — Basic | 60,259 | 59,918 | 59,392 | |||||||||
Effect of potentially dilutive securities | 590 | 216 | 70 | |||||||||
Weighted-average shares outstanding — Diluted | 60,849 | 60,134 | 59,462 | |||||||||
Diluted net income per common share | $ | 0.45 | $ | 0.26 | $ | 0.72 | ||||||
Stock-based compensation expense | The following table shows total share-based compensation expense included in the consolidated statements of comprehensive income for years ended March 31, 2015, 2014 and 2013: | |||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Costs and expenses: | ||||||||||||
Cost of revenue | $ | 373 | $ | 348 | $ | 201 | ||||||
Research and development costs | 396 | 323 | 230 | |||||||||
Selling, general and administrative | 2,703 | 1,819 | 1,896 | |||||||||
Total share-based compensation | 3,472 | 2,490 | 2,327 | |||||||||
Income tax benefit | (1,054 | ) | (794 | ) | (726 | ) | ||||||
Decrease in net income | $ | 2,418 | $ | 1,696 | $ | 1,601 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 March 31, 2015 and March 31, 2014: | |||||||||||||||
Balance at March 31, 2015 | Quoted Prices | Significant | Unobservable | |||||||||||||
in Active | Other | Inputs | ||||||||||||||
Markets for | Observable | (Level 3) | ||||||||||||||
Identical | Inputs | |||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 118,993 | $ | 118,993 | $ | — | $ | — | ||||||||
Restricted cash and cash equivalents | 2,419 | 2,419 | — | — | ||||||||||||
Marketable securities (2) | 11,592 | 11,592 | — | — | ||||||||||||
$ | 133,004 | $ | 133,004 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 16,155 | — | $ | — | $ | 16,155 | |||||||||
$ | 16,155 | $ | — | $ | — | $ | 16,155 | |||||||||
Balance at March 31, 2014 | Quoted Prices | Significant | Unobservable | |||||||||||||
in Active | Other | Inputs | ||||||||||||||
Markets for | Observable | (Level 3) | ||||||||||||||
Identical | Inputs | |||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 103,145 | $ | 103,145 | $ | — | $ | — | ||||||||
Restricted cash and cash equivalents | 4,351 | 4,351 | — | — | ||||||||||||
Marketable securities (2) | 10,656 | 10,656 | — | — | ||||||||||||
$ | 118,152 | $ | 118,152 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 14,913 | $ | — | $ | — | $ | 14,913 | ||||||||
$ | 14,913 | $ | — | $ | — | $ | 14,913 | |||||||||
____________________ | ||||||||||||||||
-1 | Cash equivalents consist of money market funds. | |||||||||||||||
-2 | Marketable securities consist of money market instruments and fixed-income securities, including certificates of deposit, corporate bonds and notes, and municipal 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 March 31, 2015: | |||||||||||||||
Total Liabilities | ||||||||||||||||
Balance at March 31, 2013 | $ | 5,336 | ||||||||||||||
Acquisitions | 13,307 | |||||||||||||||
Earnout payments | (3,831 | ) | ||||||||||||||
Fair value adjustments | 101 | |||||||||||||||
Balance at March 31, 2014 | $ | 14,913 | ||||||||||||||
Earnout payments | (695 | ) | ||||||||||||||
Fair value adjustments | 1,937 | |||||||||||||||
Balance at March 31, 2015 | $ | 16,155 | ||||||||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | Mar. 31, 2014 | |||||||
Business Combinations [Abstract] | ||||||||
Purchase price details | The total preliminary purchase price for the Gennius acquisition during the year ended March 31, 2015 is summarized as follows: | The total purchase price for the Mirth acquisition during the year ended March 31, 2014 is summarized as follows: | ||||||
Gennius | Mirth | |||||||
Total preliminary cash purchase price | $ | 2,345 | Cash paid | $ | 35,033 | |||
Common stock issued at fair value | 7,882 | |||||||
Contingent consideration | 13,307 | |||||||
Total purchase price | $ | 56,222 | ||||||
Fair value of the net tangible assets acquired and liabilities assumed | The following table summarizes the preliminary purchase price allocation for the Gennius acquisition: | The following table summarizes the final purchase price allocation for the Mirth acquisition: | ||||||
Gennius | Mirth | |||||||
Fair value of the net tangible assets acquired and liabilities assumed: | Fair value of the net tangible assets acquired and liabilities assumed: | |||||||
Other assets | $ | 4 | Current assets (including accounts receivable of $3,939) | $ | 4,231 | |||
Deferred revenues | (37 | ) | Equipment and improvements | 822 | ||||
Other liabilities | (189 | ) | ||||||
Total net tangible assets acquired and liabilities assumed | (222 | ) | Accounts payable and accrued liabilities | (764 | ) | |||
Fair value of identifiable intangible assets acquired: | Deferred revenues | (5,802 | ) | |||||
Software technology | 1,800 | Total net tangible assets acquired and liabilities assumed | (1,513 | ) | ||||
Fair value of identifiable intangible assets acquired: | ||||||||
Goodwill | 767 | Trade name | 1,350 | |||||
Total identifiable intangible assets acquired | 2,567 | Customer relationships | 2,800 | |||||
Total preliminary purchase price | $ | 2,345 | Software technology | 22,200 | ||||
Goodwill | 31,385 | |||||||
Total identifiable intangible assets acquired | 57,735 | |||||||
Total purchase price | $ | 56,222 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Summary of Goodwill | Goodwill by reportable segment consists of the following: | |||||||||||
March 31, 2014 | Acquisitions | March 31, 2015 | ||||||||||
QSI Dental Division (1) | $ | 7,289 | $ | — | $ | 7,289 | ||||||
NextGen Division | 33,225 | 767 | 33,992 | |||||||||
Hospital Solutions Division (2) | — | — | — | |||||||||
RCM Services Division | 32,290 | — | 32,290 | |||||||||
Total goodwill | $ | 72,804 | $ | 767 | $ | 73,571 | ||||||
_______________________ | ||||||||||||
(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. |
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Intangible assets, other than capitalized software development costs | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Customer | Trade Name and Contracts | Software | Total | |||||||||||||
Relationships | Technology | |||||||||||||||
Gross carrying amount | $ | 22,050 | $ | 3,368 | $ | 25,310 | $ | 50,728 | ||||||||
Accumulated amortization | (14,986 | ) | (2,159 | ) | (5,894 | ) | (23,039 | ) | ||||||||
Net intangible assets | $ | 7,064 | $ | 1,209 | $ | 19,416 | $ | 27,689 | ||||||||
March 31, 2014 | ||||||||||||||||
Customer | Trade Name and Contracts | Software | Total | |||||||||||||
Relationships | Technology | |||||||||||||||
Gross carrying amount | $ | 22,050 | $ | 3,368 | $ | 23,510 | $ | 48,928 | ||||||||
Accumulated amortization | (11,837 | ) | (1,599 | ) | (2,476 | ) | (15,912 | ) | ||||||||
Net intangible assets | $ | 10,213 | $ | 1,769 | $ | 21,034 | $ | 33,016 | ||||||||
Estimated amortization of intangible assets with determinable lives | ||||||||||||||||
For the year ended March 31, | ||||||||||||||||
2016 | $ | 7,204 | ||||||||||||||
2017 | 6,733 | |||||||||||||||
2018 | 4,481 | |||||||||||||||
2019 | 3,697 | |||||||||||||||
2020 | 3,352 | |||||||||||||||
2021 and beyond | $ | 2,222 | ||||||||||||||
Total | $ | 27,689 | ||||||||||||||
Capitalized_Software_Costs_Tab
Capitalized Software Costs (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Research and Development [Abstract] | ||||||||
Capitalized software development costs | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Gross carrying amount | $ | 113,955 | $ | 100,455 | ||||
Accumulated amortization | (73,558 | ) | (61,303 | ) | ||||
Net capitalized software costs | $ | 40,397 | $ | 39,152 | ||||
Estimated amortization of capitalized software costs | ||||||||
For the year ended March 31, | ||||||||
2016 | $ | 11,200 | ||||||
2017 | 10,600 | |||||||
2018 | 5,500 | |||||||
2019 | 4,800 | |||||||
2020 | 4,700 | |||||||
2021 and beyond | $ | 3,597 | ||||||
Total | $ | 40,397 | ||||||
Composition_of_Certain_Financi1
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Summary of accounts receivable | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Accounts receivable, gross | $ | 119,807 | $ | 130,093 | ||||
Sales return reserve | (8,835 | ) | (10,530 | ) | ||||
Allowance for doubtful accounts | (3,303 | ) | (6,295 | ) | ||||
Accounts receivable, net | $ | 107,669 | $ | 113,268 | ||||
Summary of inventories | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Computer systems and components | $ | 622 | $ | 834 | ||||
Summary of equipment and improvements | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Computer equipment | $ | 42,668 | $ | 37,322 | ||||
Furniture and fixtures | 10,408 | 9,395 | ||||||
Leasehold improvements | 9,767 | 8,874 | ||||||
62,843 | 55,591 | |||||||
Accumulated depreciation and amortization | (42,036 | ) | (32,790 | ) | ||||
Equipment and improvements, net | $ | 20,807 | $ | 22,801 | ||||
Summary of current and non-current deferred revenue | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Maintenance | $ | 15,077 | $ | 15,482 | ||||
Professional services | 30,340 | 36,634 | ||||||
Annual license services | 11,130 | 11,176 | ||||||
Undelivered software and other (1) | 9,796 | 7,785 | ||||||
Deferred revenue | $ | 66,343 | $ | 71,077 | ||||
Deferred revenue, net of current | $ | 1,349 | $ | 2,187 | ||||
Summary of accrued compensation and related benefits | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Payroll, bonus and commission | $ | 13,505 | $ | 6,193 | ||||
Vacation | 10,546 | 9,760 | ||||||
Accrued compensation and related benefits | $ | 24,051 | $ | 15,953 | ||||
Summary of other current liabilities | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Contingent consideration and other liabilities related to acquisitions | $ | 9,124 | $ | 1,052 | ||||
Customer credit balances and deposits | 4,760 | 3,163 | ||||||
Accrued legal expense | 3,527 | 170 | ||||||
Accrued consulting | 2,603 | 1,707 | ||||||
Care services liabilities | 2,381 | 4,351 | ||||||
Accrued EDI expense | 2,322 | 1,702 | ||||||
Self insurance reserve | 2,290 | 2,090 | ||||||
Accrued royalties | 2,063 | 1,418 | ||||||
Other accrued expenses | 4,854 | 5,716 | ||||||
Other current liabilities | $ | 33,924 | $ | 21,369 | ||||
Contingent consideration and other liabilities related to acquisitions | $ | 7,581 | $ | 14,736 | ||||
Deferred rent | 3,122 | 3,509 | ||||||
Uncertain tax position and related liabilities | 4,095 | 841 | ||||||
Deferred income taxes, net | — | 3,206 | ||||||
Other noncurrent liabilities | $ | 14,798 | $ | 22,292 | ||||
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Provision (benefit) for income taxes | The provision for income taxes consists of the following components: | |||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Current: | ||||||||||||
Federal taxes | $ | 18,055 | $ | 8,673 | $ | 30,382 | ||||||
State taxes | 1,887 | 2,380 | 5,019 | |||||||||
Foreign taxes | 262 | 252 | 190 | |||||||||
Total current taxes | 20,204 | 11,305 | 35,591 | |||||||||
Deferred: | ||||||||||||
Federal taxes | $ | (9,804 | ) | $ | (2,894 | ) | $ | (8,469 | ) | |||
State taxes | (1,771 | ) | (897 | ) | (742 | ) | ||||||
Foreign taxes | (297 | ) | (193 | ) | (190 | ) | ||||||
Total deferred taxes | (11,872 | ) | (3,984 | ) | (9,401 | ) | ||||||
Provision for income taxes | $ | 8,332 | $ | 7,321 | $ | 26,190 | ||||||
Provision for income taxes differ at the federal statutory rate | The provision for income taxes differs from the amount computed at the federal statutory rate as follows: | |||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Current: | ||||||||||||
Federal income tax statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Increase (decrease) resulting from: | ||||||||||||
State income taxes, net of Federal benefit | 2 | 4.2 | 4 | |||||||||
Research and development tax credits | (4.4 | ) | (5.3 | ) | (2.1 | ) | ||||||
Qualified production activities income deduction | (5.4 | ) | (4.9 | ) | (4.6 | ) | ||||||
Impairment of goodwill | — | 5.7 | 7.5 | |||||||||
Other non-recurring adjustments for State taxes | (1.8 | ) | — | — | ||||||||
Other | (2.0 | ) | (2.9 | ) | (1.8 | ) | ||||||
Effective income tax rate | 23.4 | % | 31.8 | % | 38 | % | ||||||
Net deferred tax assets and liabilities in consolidated balance sheets | The net deferred tax assets and liabilities in the accompanying consolidated balance sheets consist of the following: | |||||||||||
March 31, | March 31, | |||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Deferred revenue | $ | 11,970 | $ | 10,144 | ||||||||
Inventory valuation | 56 | 46 | ||||||||||
Accrued compensation and benefits | 7,744 | 5,219 | ||||||||||
Deferred compensation | 2,342 | 1,941 | ||||||||||
Compensatory stock option expense | 2,852 | 2,094 | ||||||||||
Allowance for doubtful accounts | 4,944 | 6,791 | ||||||||||
Intangible assets | 7,603 | 6,086 | ||||||||||
Research and development credit | 1,988 | 2,434 | ||||||||||
Net operating loss | 512 | — | ||||||||||
Other | 3,561 | 2,992 | ||||||||||
Total deferred tax assets | 43,572 | 37,747 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Accelerated depreciation | $ | (756 | ) | $ | (1,582 | ) | ||||||
Capitalized software | (8,728 | ) | (13,919 | ) | ||||||||
Prepaid expense | (1,321 | ) | (1,199 | ) | ||||||||
State income taxes | (730 | ) | (433 | ) | ||||||||
Total deferred tax liabilities | (11,535 | ) | (17,133 | ) | ||||||||
Valuation allowance | (1,840 | ) | (2,288 | ) | ||||||||
Deferred tax assets, net | $ | 30,197 | $ | 18,326 | ||||||||
Reconciliation of beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded within other noncurrent liabilities | |||||||||||
in the Company’s consolidated balance sheet, is as follows: | ||||||||||||
Balance at March 31, 2013 | $ | 733 | ||||||||||
Additions for current/prior year tax positions | 405 | |||||||||||
Reductions for prior year tax positions | (263 | ) | ||||||||||
Balance at March 31, 2014 | $ | 875 | ||||||||||
Additions for prior year tax positions | 3,106 | |||||||||||
Reductions for prior year tax positions | (218 | ) | ||||||||||
Balance at March 31, 2015 | $ | 3,763 | ||||||||||
Share_Based_Awards_Tables
Share Based Awards (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Summary of stock option activity | A summary of stock option transactions during the years ended March 31, 2015, 2014 and 2013 is as follows: | ||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | (in thousands) | |||||||||||
per Share | Life (years) | ||||||||||||
Outstanding, March 31, 2012 | 988,337 | $ | 32.09 | ||||||||||
Granted | 556,500 | 27.78 | |||||||||||
Exercised | (56,366 | ) | 16.81 | $ | 82 | ||||||||
Forfeited/Canceled | (329,288 | ) | 31.42 | ||||||||||
Outstanding, March 31, 2013 | 1,159,183 | $ | 30.54 | ||||||||||
Granted | 469,000 | 18.78 | |||||||||||
Exercised | (111,272 | ) | 19.78 | $ | 264 | ||||||||
Forfeited/Canceled | (146,810 | ) | 30.28 | ||||||||||
Outstanding, March 31, 2014 | 1,370,101 | $ | 27.85 | 5.8 | |||||||||
Granted | 469,650 | 15.97 | 7.2 | ||||||||||
Forfeited/Canceled | (203,575 | ) | 24.85 | 4.9 | |||||||||
Outstanding, March 31, 2015 | 1,636,176 | $ | 24.82 | 5.5 | $ | 8 | |||||||
Vested and expected to vest, March 31, 2015 | 1,533,192 | $ | 25.03 | 5.5 | $ | 8 | |||||||
Exercisable, March 31, 2015 | 567,886 | $ | 30.81 | 4.1 | $ | — | |||||||
Schedule of share based compensation valuation assumption | The Company utilizes the Black-Scholes valuation model for estimating the fair value of stock options and related share-based compensation with the following assumptions: | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
March 31, 2015 | March 31, 2014 | March 31, 2013 | |||||||||||
Expected life | 4.8 years | 4.9 years | 5.0 years | ||||||||||
Expected volatility | 36.1% - 36.6% | 43.4% - 43.7% | 41.3% - 45.1% | ||||||||||
Expected dividends | 4.3% - 4.4% | 3.1% - 3.9% | 2.4% - 4.0% | ||||||||||
Risk-free rate | 1.6% - 1.7% | 1.0% - 1.5% | 0.7% - 0.8% | ||||||||||
Summary of stock options granted | A summary of stock options granted under the 2005 Plan during the years ended March 31, 2015, 2014 and 2013 is as follows: | ||||||||||||
Option Grant Date | Number of Shares | Exercise Price | Vesting | Expires | |||||||||
Terms (1) | |||||||||||||
March 11, 2015 | 10,000 | $ | 15.84 | Five years | March 11, 2023 | ||||||||
September 2, 2014 | 20,000 | $ | 15.63 | Five years | September 2, 2022 | ||||||||
June 3, 2014 | 439,650 | $ | 15.99 | Five years | June 3, 2022 | ||||||||
Fiscal year 2015 option grants | 469,650 | ||||||||||||
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 | ||||||||||||
Schedule of performance based awards under incentive plan | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
31-Mar-15 | 31-Mar-14 | 31-Mar-13 | |||||||||||
Expected life | 4.8 years | 4.9 years | 5.0 years | ||||||||||
Expected volatility | 35.9% - 36.5% | 36.9% - 43.5% | 41.7% - 45.0% | ||||||||||
Expected dividends | 4.3% - 5.0% | 3.2% - 4.1% | 2.5% - 4.0% | ||||||||||
Risk-free rate | 1.4% - 1.8% | 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 years ended March 31, 2015, 2014 and 2013 is summarized as follows: | ||||||||||||
Non-Vested | Weighted- | ||||||||||||
Number of | Average | ||||||||||||
Shares | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
per Share | |||||||||||||
Outstanding, March 31, 2012 | 778,319 | $ | 10.76 | ||||||||||
Granted | 556,500 | 8.22 | |||||||||||
Vested | (201,191 | ) | 8.43 | ||||||||||
Forfeited/Canceled | (329,288 | ) | 9.92 | ||||||||||
Outstanding, March 31, 2013 | 804,340 | $ | 9.89 | ||||||||||
Granted | 469,000 | 5.2 | |||||||||||
Vested | (134,970 | ) | 9.3 | ||||||||||
Forfeited/Canceled | (146,810 | ) | 9.33 | ||||||||||
Outstanding, March 31, 2014 | 991,560 | $ | 7.73 | ||||||||||
Granted | 469,650 | 3.5 | |||||||||||
Vested | (269,785 | ) | 8.24 | ||||||||||
Forfeited/Canceled | (123,135 | ) | 6.57 | ||||||||||
Outstanding, March 31, 2015 | 1,068,290 | $ | 5.81 | ||||||||||
Restricted stock units award activity | Restricted stock activity for the years ended March 31, 2015, 2014 and 2013 is summarized as follows: | ||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
per Share | |||||||||||||
Outstanding, March 31, 2012 | 30,001 | $ | 36.32 | ||||||||||
Granted | 18,939 | 19.32 | |||||||||||
Vested | (18,555 | ) | 32.14 | ||||||||||
Outstanding, March 31, 2013 | 30,385 | $ | 27.09 | ||||||||||
Granted | 57,324 | 20.75 | |||||||||||
Vested | (16,302 | ) | 30.64 | ||||||||||
Canceled | (6,836 | ) | $ | 22.59 | |||||||||
Outstanding, March 31, 2014 | 64,571 | $ | 20.74 | ||||||||||
Granted | 48,414 | 15.77 | |||||||||||
Vested | (34,780 | ) | 21.33 | ||||||||||
Outstanding, March 31, 2015 | 78,205 | $ | 17.94 | ||||||||||
Commitments_Guarantees_and_Con1
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||
Rental commitments | ||||||||||||||||||||||
For the year ended March 31, | ||||||||||||||||||||||
Contractual Obligations | Total | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 and beyond | |||||||||||||||
Operating lease obligations | $ | 47,784 | $ | 7,461 | $ | 7,602 | $ | 7,641 | $ | 4,628 | $ | 3,572 | $ | 16,880 | ||||||||
Contingent consideration and other acquisition related liabilities (excluding share-based payments) | 1,400 | 700 | 700 | — | — | — | — | |||||||||||||||
Total | $ | 49,184 | $ | 8,161 | $ | 8,302 | $ | 7,641 | $ | 4,628 | $ | 3,572 | $ | 16,880 | ||||||||
Operating_Segment_Information_
Operating Segment Information (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Operating segment data | ||||||||||||
Fiscal Year Ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Revenue: | ||||||||||||
QSI Dental Division | $ | 18,451 | $ | 19,840 | $ | 19,990 | ||||||
NextGen Division | 373,765 | 341,120 | 344,315 | |||||||||
Hospital Solutions Division | 18,004 | 15,614 | 31,413 | |||||||||
RCM Services Division | 80,005 | 68,093 | 64,511 | |||||||||
Consolidated revenue | $ | 490,225 | $ | 444,667 | $ | 460,229 | ||||||
Operating income (loss): | ||||||||||||
QSI Dental Division | $ | 5,228 | $ | 6,155 | $ | 5,819 | ||||||
NextGen Division | 178,680 | 155,578 | 158,110 | |||||||||
Hospital Solutions Division | (2,790 | ) | (7,453 | ) | 2,997 | |||||||
RCM Services Division | 12,873 | 9,343 | 8,417 | |||||||||
Unallocated corporate expense | (158,035 | ) | (140,535 | ) | (106,243 | ) | ||||||
Consolidated operating income | $ | 35,956 | $ | 23,088 | $ | 69,100 | ||||||
Selected_Quarterly_Operating_R1
Selected Quarterly Operating Results (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Selected Quarterly Operating Results [Abstract] | ||||||||||||||||||||||||||||||||
Quarterly unaudited consolidated financial information | ||||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
(Unaudited) | 6/30/13 | 9/30/13 | 12/31/13 | 3/31/14 | 6/30/14 | 9/30/14 | 12/31/14 | 3/31/15 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Software and hardware | $ | 15,972 | $ | 15,562 | $ | 14,114 | $ | 15,186 | $ | 14,743 | $ | 14,230 | $ | 16,339 | $ | 16,061 | ||||||||||||||||
Implementation and training services | 6,575 | 7,809 | 5,046 | 6,518 | 6,266 | 7,040 | 3,658 | 6,684 | ||||||||||||||||||||||||
System sales | 22,547 | 23,371 | 19,160 | 21,704 | 21,009 | 21,270 | 19,997 | 22,745 | ||||||||||||||||||||||||
Maintenance | 38,608 | 40,313 | 39,763 | 41,376 | 40,805 | 42,135 | 43,045 | 43,234 | ||||||||||||||||||||||||
Electronic data interchange services | 16,692 | 16,545 | 16,637 | 17,421 | 18,319 | 18,906 | 19,051 | 20,082 | ||||||||||||||||||||||||
Revenue cycle management and related services | 16,015 | 15,467 | 16,178 | 15,316 | 16,693 | 17,432 | 20,392 | 19,720 | ||||||||||||||||||||||||
Other services | 15,667 | 15,385 | 17,116 | 19,386 | 21,068 | 20,776 | 20,939 | 22,607 | ||||||||||||||||||||||||
Maintenance, EDI, RCM and other services | 86,982 | 87,710 | 89,694 | 93,499 | 96,885 | 99,249 | 103,427 | 105,643 | ||||||||||||||||||||||||
Total revenues | 109,529 | 111,081 | 108,854 | 115,203 | 117,894 | 120,519 | 123,424 | 128,388 | ||||||||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||||||||||
Software and hardware | 4,934 | 4,779 | 27,398 | 7,115 | 6,641 | 6,521 | 6,127 | 5,404 | ||||||||||||||||||||||||
Implementation and training services | 7,134 | 6,972 | 7,466 | 8,109 | 7,151 | 6,688 | 4,584 | 5,479 | ||||||||||||||||||||||||
Total cost of system sales | 12,068 | 11,751 | 34,864 | 15,224 | 13,792 | 13,209 | 10,711 | 10,883 | ||||||||||||||||||||||||
Maintenance | 5,302 | 5,262 | 5,642 | 6,384 | 6,914 | 6,785 | 7,365 | 7,802 | ||||||||||||||||||||||||
Electronic data interchange services | 10,796 | 10,650 | 10,276 | 10,845 | 11,999 | 12,015 | 11,956 | 12,274 | ||||||||||||||||||||||||
Revenue cycle management and related services | 11,401 | 11,007 | 11,736 | 12,059 | 12,706 | 13,202 | 14,246 | 14,252 | ||||||||||||||||||||||||
Other services | 8,505 | 9,012 | 8,537 | 8,842 | 10,779 | 11,562 | 10,082 | 10,630 | ||||||||||||||||||||||||
Total cost of maintenance, EDI, RCM and other services | 36,004 | 35,931 | 36,191 | 38,130 | 42,398 | 43,564 | 43,649 | 44,958 | ||||||||||||||||||||||||
Total cost of revenue | 48,072 | 47,682 | 71,055 | 53,354 | 56,190 | 56,773 | 54,360 | 55,841 | ||||||||||||||||||||||||
Gross profit | 61,457 | 63,399 | 37,799 | 61,849 | 61,704 | 63,746 | 69,064 | 72,547 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 35,096 | 38,578 | 36,864 | 38,676 | 36,730 | 38,681 | 41,482 | 41,279 | ||||||||||||||||||||||||
Research and development costs | 5,614 | 7,615 | 13,175 | 15,120 | 16,236 | 16,898 | 18,468 | 17,638 | ||||||||||||||||||||||||
Amortization of acquired intangible assets | 1,194 | 1,260 | 1,219 | 1,132 | 983 | 908 | 904 | 898 | ||||||||||||||||||||||||
Impairment of goodwill and other assets | — | — | 5,873 | — | — | — | — | — | ||||||||||||||||||||||||
Total operating expenses | 41,904 | 47,453 | 57,131 | 54,928 | 53,949 | 56,487 | 60,854 | 59,815 | ||||||||||||||||||||||||
Income (loss) from operations | 19,553 | 15,946 | (19,332 | ) | 6,921 | 7,755 | 7,259 | 8,210 | 12,732 | |||||||||||||||||||||||
Interest income (expense), net | 31 | (205 | ) | 121 | 322 | 54 | 69 | (82 | ) | (271 | ) | |||||||||||||||||||||
Other income (expense), net | (254 | ) | (155 | ) | 18 | 35 | 9 | (26 | ) | — | (45 | ) | ||||||||||||||||||||
Income (loss) before provision for income taxes | 19,330 | 15,586 | (19,193 | ) | 7,278 | 7,818 | 7,302 | 8,128 | 12,416 | |||||||||||||||||||||||
Provision for (benefit of) income taxes | 6,385 | 5,465 | (6,606 | ) | 2,077 | 2,655 | 2,552 | 1,452 | 1,673 | |||||||||||||||||||||||
Net income (loss) | $ | 12,945 | $ | 10,121 | $ | (12,587 | ) | $ | 5,201 | $ | 5,163 | $ | 4,750 | $ | 6,676 | $ | 10,743 | |||||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||||||||||
Basic* | $ | 0.22 | $ | 0.17 | $ | (0.21 | ) | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.11 | $ | 0.18 | |||||||||||||||
Diluted* | $ | 0.22 | $ | 0.17 | $ | (0.21 | ) | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.11 | $ | 0.18 | |||||||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 59,559 | 59,734 | 60,173 | 60,208 | 60,230 | 60,247 | 60,272 | 60,288 | ||||||||||||||||||||||||
Diluted | 59,572 | 59,751 | 60,173 | 60,592 | 60,770 | 60,788 | 60,855 | 60,956 | ||||||||||||||||||||||||
Dividends declared per common share | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | $ | 0.175 | ||||||||||||||||
Organization_of_Business_Detai
Organization of Business (Details Textual) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2015 | |
Business_Division | ||
Organization of Business [Abstract] | ||
Number of business divisions operates | 4 | |
Number of acquisitions made | 2 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Weighted-average shares outstanding for basic and diluted net income per share | |||||||||||
Net income | $10,743 | $6,676 | $4,750 | $5,163 | $5,201 | ($12,587) | $10,121 | $12,945 | $27,332 | $15,680 | $42,724 |
Basic net income per share: | |||||||||||
Weighted-average shares outstanding - Basic | 60,288 | 60,272 | 60,247 | 60,230 | 60,208 | 60,173 | 59,734 | 59,559 | 60,259 | 59,918 | 59,392 |
Basic net income per common share | $0.18 | $0.11 | $0.08 | $0.09 | $0.09 | ($0.21) | $0.17 | $0.22 | $0.45 | $0.26 | $0.72 |
Diluted net income per share: | |||||||||||
Weighted-average shares outstanding - Basic | 60,288 | 60,272 | 60,247 | 60,230 | 60,208 | 60,173 | 59,734 | 59,559 | 60,259 | 59,918 | 59,392 |
Effect of potentially dilutive securities | 590 | 216 | 70 | ||||||||
Weighted-average shares outstanding - Diluted | 60,956 | 60,855 | 60,788 | 60,770 | 60,592 | 60,173 | 59,751 | 59,572 | 60,849 | 60,134 | 59,462 |
Diluted net income per common share | $0.18 | $0.11 | $0.08 | $0.08 | $0.09 | ($0.21) | $0.17 | $0.22 | $0.45 | $0.26 | $0.72 |
Software and Software Development Costs [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
PropertyPlantandEquipmentMinimumEstimatedUsefulLife | P3Y | ||||||||||
Diluted net income per share: | |||||||||||
PropertyPlantandEquipmentMaximumEstimatedUsefulLife | P7Y |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Costs and expenses: | |||
Total share-based compensation | $3,472 | $2,490 | $2,327 |
Related income tax benefit | -1,054 | -794 | -726 |
Decrease in net income | -2,418 | -1,696 | -1,601 |
Cost of revenue [Member] | |||
Costs and expenses: | |||
Total share-based compensation | 373 | 348 | 201 |
Research and development costs [Member] | |||
Costs and expenses: | |||
Total share-based compensation | 396 | 323 | 230 |
Selling, general and administrative [Member] | |||
Costs and expenses: | |||
Total share-based compensation | $2,703 | $1,819 | $1,896 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Goodwill | $73,571,000 | $72,804,000 | |
Excess amount deposited in excess of limit | 117,900,000 | ||
Limit provided by banks and financial institutions for deposition | 250,000 | ||
Maximum maturities period of cash and cash equivalents | 90 days | ||
Capitalized software costs, net | 40,397,000 | 39,152,000 | |
Self insurance reserve | 2,290,000 | 2,090,000 | |
Advertising cost | 7,079,000 | 5,600,000 | 6,499,000 |
Stock Options [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Options excluded from the computation of diluted net income per share | 1,656,000 | 1,355,000 | 966,000 |
Minimum [Member] | |||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Amortization period of intangible assets | 6 months | ||
Maximum [Member] | |||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Amortization period of intangible assets | 10 years | ||
Computer Equipment [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Useful life | 3 years | ||
Computer Equipment [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Useful life | 5 years | ||
Furniture and Fixtures [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Furniture's and fixtures useful life lesser of lease term | lesser of lease term or estimated useful life of asset | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Useful life | 5 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Useful life | 7 years | ||
Equipment and improvement [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Estimated useful lives of the assets | P3Y | ||
Hospital Solutions Division [Member] | |||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | |||
Goodwill | $0 | $0 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2011 |
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||||
Cash and cash equivalents | $118,993 | $103,145 | $105,999 | $134,444 |
Maximum maturities period of cash and cash equivalents | 90 days |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $118,993 | $103,145 |
Restricted cash | 2,419 | 4,351 |
Marketable securities | 11,592 | 10,656 |
Total | 133,004 | 118,152 |
LIABILITIES | ||
Contingent consideration related to acquisitions | 16,155 | 14,913 |
Total | 16,155 | 14,913 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
ASSETS | ||
Cash and cash equivalents | 118,993 | 103,145 |
Restricted cash | 2,419 | 4,351 |
Marketable securities | 11,592 | 10,656 |
Total | 133,004 | 118,152 |
LIABILITIES | ||
Contingent consideration related to acquisitions | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Marketable securities | 0 | 0 |
Total | 0 | 0 |
LIABILITIES | ||
Contingent consideration related to acquisitions | 0 | 0 |
Total | 0 | 0 |
Unobservable Inputs (Level 3) | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Marketable securities | 0 | 0 |
Total | 0 | 0 |
LIABILITIES | ||
Contingent consideration related to acquisitions | 16,155 | 14,913 |
Total | $16,155 | $14,913 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Company's assets and liabilities measured at fair value using significant unobservable inputs (Level 3) | |||
Acquisition (Note 5) | $13,307,000 | ||
Earnout payments | -695,000 | -3,831,000 | |
Fair value adjustments | 1,937,000 | 101,000 | |
Fair Value Measurement with Unobservable Input Reconciliation Recurring Basis Liability Value | $16,155,000 | $14,913,000 | $5,336,000 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details Textual) (USD $) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Earnout payments | ($695,000) | ($3,831,000) |
Fair Value Adjustments | $0 |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | ||||||
Business Acquisition [Line Items] | |||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the preliminary purchase price allocation for the Gennius acquisition: | The following table summarizes the final purchase price allocation for the Mirth acquisition: | |||||||
Gennius | Mirth | ||||||||
Fair value of the net tangible assets acquired and liabilities assumed: | Fair value of the net tangible assets acquired and liabilities assumed: | ||||||||
Other assets | $ | 4 | Current assets (including accounts receivable of $3,939) | $ | 4,231 | ||||
Deferred revenues | (37 | ) | Equipment and improvements | 822 | |||||
Other liabilities | (189 | ) | |||||||
Total net tangible assets acquired and liabilities assumed | (222 | ) | Accounts payable and accrued liabilities | (764 | ) | ||||
Fair value of identifiable intangible assets acquired: | Deferred revenues | (5,802 | ) | ||||||
Software technology | 1,800 | Total net tangible assets acquired and liabilities assumed | (1,513 | ) | |||||
Fair value of identifiable intangible assets acquired: | |||||||||
Goodwill | 767 | Trade name | 1,350 | ||||||
Total identifiable intangible assets acquired | 2,567 | Customer relationships | 2,800 | ||||||
Total preliminary purchase price | $ | 2,345 | Software technology | 22,200 | |||||
Goodwill | 31,385 | ||||||||
Total identifiable intangible assets acquired | 57,735 | ||||||||
Total purchase price | $ | 56,222 | |||||||
Purchase price details | |||||||||
Common Stock issued at fair value | $0 | $0 | $3,953 | ||||||
Goodwill | 73,571 | 72,804 | |||||||
Gennius [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Current assets (including accounts receivable of $3,939) | 4,231 | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 5,239 | ||||||||
Purchase price details | |||||||||
Cash paid | 0 | 35,033 | 0 | ||||||
Common Stock issued at fair value | 0 | 7,882 | 0 | ||||||
Contingent consideration | 13,307 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 56,222 | ||||||||
Equipment and improvements | 822 | ||||||||
Accounts payable and accrued liabilities | -764 | ||||||||
Deferred revenues | -5,802 | ||||||||
Total net tangible assets acquired and liabilities assumed | -1,513 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Intangible Assets, Including Goodwill | 57,735 | ||||||||
Goodwill | 31,385 | ||||||||
Contingent consideration | 56,222 | ||||||||
Computer Software, Intangible Asset [Member] | Gennius [Member] | |||||||||
Purchase price details | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 22,200 | ||||||||
Trade Names [Member] | Gennius [Member] | |||||||||
Purchase price details | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,350 | ||||||||
Customer Relationships [Member] | Gennius [Member] | |||||||||
Purchase price details | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $2,800 |
Business_Combinations_Details_
Business Combinations (Details 1) (USD $) | 0 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 09, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 11, 2015 |
Fair value of identifiable intangible assets acquired: | ||||
Goodwill | $73,571 | $72,804 | ||
Gennius [Member] | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | ||||
Other assets | 4 | |||
Accounts payable and accrued liabilities | -189 | |||
Deferred revenues | -37 | |||
Total net tangible assets acquired and liabilities assumed | -222 | |||
Fair value of identifiable intangible assets acquired: | ||||
Intangible assets | 1,800 | |||
Goodwill | 767 | |||
Total identifiable intangible assets acquired | 2,567 | |||
Total purchase price | 2,345 | |||
Gennius [Member] | Software Technology [Member] | ||||
Fair value of identifiable intangible assets acquired: | ||||
Intangible assets | 1,800 | |||
Mirth [Member] | ||||
Business Acquisition [Line Items] | ||||
YearsGoodwillDeductibleforIncomeTaxPurposes | 15 years | |||
Fair value of the net tangible assets acquired and liabilities assumed: | ||||
Other assets | 4,231 | |||
Deferred revenues | -5,802 | |||
Total net tangible assets acquired and liabilities assumed | -1,513 | |||
Fair value of identifiable intangible assets acquired: | ||||
Goodwill | 31,385 | |||
Total identifiable intangible assets acquired | 57,735 | |||
Total purchase price | 56,222 | |||
Mirth [Member] | Trade Name [Member] | ||||
Fair value of identifiable intangible assets acquired: | ||||
Intangible assets | 1,350 | |||
Mirth [Member] | Customer Relationships [Member] | ||||
Fair value of identifiable intangible assets acquired: | ||||
Intangible assets | 2,800 | |||
Mirth [Member] | Software Technology [Member] | ||||
Fair value of identifiable intangible assets acquired: | ||||
Intangible assets | $22,200 |
Business_Combinations_Details_1
Business Combinations (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 09, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Gennius [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $2,345 | |||
Business Combinations (Textual) [Abstract] | ||||
Cash paid | 2,345 | |||
Mirth [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 56,222 | |||
Business Combinations (Textual) [Abstract] | ||||
Accounts receivable acquired | ||||
Purchase price of business acquisition | 56,222 | |||
Contingent consideration | 13,307 | |||
Term for contingent consideration | 3 years | |||
Fair value discount on share-based contingent consideration | -5,239 | |||
Cash paid | $0 | $35,033 | $0 |
Business_Combinations_Business
Business Combinations Business Combinations (Details 2) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | |||
Common Stock issued at fair value | $0 | $0 | $3,953 |
Mirth [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments to Acquire Businesses, Gross | 0 | 35,033 | 0 |
Common Stock issued at fair value | 0 | 7,882 | 0 |
Business Acquisition Cost of Acquired Entity Contingent Consideration | 13,307 | ||
Purchase price of business acquisition | $56,222 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Summary of Goodwill | |
Goodwill, Beginning Balance | $72,804 |
Acquisitions | 767 |
Goodwill, Ending Balance | 73,571 |
QSI Dental Division [Member] | |
Summary of Goodwill | |
Goodwill, Beginning Balance | 7,289 |
Acquisitions | 0 |
Goodwill, Ending Balance | 7,289 |
NextGen Division [Member] | |
Summary of Goodwill | |
Goodwill, Beginning Balance | 33,225 |
Acquisitions | 767 |
Goodwill, Ending Balance | 33,992 |
Hospital Solutions Division [Member] | |
Summary of Goodwill | |
Goodwill, Beginning Balance | 0 |
Acquisitions | 0 |
Goodwill, Ending Balance | 0 |
RCM Services Division [Member] | |
Summary of Goodwill | |
Goodwill, Beginning Balance | 32,290 |
Acquisitions | 0 |
Goodwill, Ending Balance | $32,290 |
Goodwill_Details_1
Goodwill (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill [Line Items] | |||
Asset impairment charges | $0 | $25,971 | $17,400 |
Goodwill_Details_Textual
Goodwill (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill [Line Items] | |||
Goodwill | $73,571 | $72,804 | |
Impairment of goodwill and other assets | 0 | 25,971 | 17,400 |
Intangible assets, net | 27,689 | 33,016 | |
Hospital Solutions Division [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $0 | $0 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Intangible assets, other than capitalized software development costs | ||
Gross carrying amount | $50,728 | $48,928 |
Accumulated amortization | -23,039 | -15,912 |
Net intangible assets | 27,689 | 33,016 |
Customer Relationships [Member] | ||
Intangible assets, other than capitalized software development costs | ||
Gross carrying amount | 22,050 | 22,050 |
Accumulated amortization | -14,986 | -11,837 |
Net intangible assets | 7,064 | 10,213 |
Trade Name [Member] | ||
Intangible assets, other than capitalized software development costs | ||
Gross carrying amount | 3,368 | 3,368 |
Accumulated amortization | -2,159 | -1,599 |
Net intangible assets | 1,209 | 1,769 |
Software Technology [Member] | ||
Intangible assets, other than capitalized software development costs | ||
Gross carrying amount | 25,310 | 23,510 |
Accumulated amortization | -5,894 | -2,476 |
Net intangible assets | $19,416 | $21,034 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Activity Related to the intangible assets | |||||||||||
Beginning Balance | $33,016 | $33,016 | |||||||||
Amortization | -898 | -904 | -908 | -983 | -1,132 | -1,219 | -1,260 | -1,194 | -7,127 | -8,330 | -7,559 |
Ending Balance | 27,689 | 27,689 | 33,016 | ||||||||
Customer Relationships [Member] | |||||||||||
Activity Related to the intangible assets | |||||||||||
Ending Balance | 7,064 | 7,064 | 10,213 | ||||||||
Trade Name [Member] | |||||||||||
Activity Related to the intangible assets | |||||||||||
Beginning Balance | 1,769 | 1,769 | |||||||||
Amortization | -3,709 | -4,671 | -4,633 | ||||||||
Ending Balance | 1,209 | 1,209 | 1,769 | ||||||||
Software Technology [Member] | |||||||||||
Activity Related to the intangible assets | |||||||||||
Beginning Balance | 21,034 | 21,034 | |||||||||
Amortization | -3,418 | -3,659 | -2,926 | ||||||||
Ending Balance | $19,416 | $19,416 | $21,034 |
Intangible_Assets_Details_2
Intangible Assets (Details 2) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Estimated amortization of intangible assets with determinable lives | ||
2015 | $7,204 | |
2016 | 6,733 | |
2017 | 4,481 | |
2018 | 3,697 | |
2019 | 3,352 | |
2021 and beyond | 2,222 | |
Net intangible assets | $27,689 | $33,016 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 12, 2015 | Mar. 11, 2015 |
Finite Lived Intangible Assets [Line Items] | |||||||||||||
Amortization of other intangibles | $898 | $904 | $908 | $983 | $1,132 | $1,219 | $1,260 | $1,194 | $7,127 | $8,330 | $7,559 | ||
Trade Names [Member] | |||||||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||||||
Amortization of other intangibles | 3,709 | 4,671 | 4,633 | ||||||||||
Software Technology [Member] | |||||||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||||||
Amortization of other intangibles | 3,418 | 3,659 | 2,926 | ||||||||||
Gennius [Member] | |||||||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||||||
Intangible assets | 1,800 | ||||||||||||
Weighted average amortization period | 10 years | ||||||||||||
Gennius [Member] | Software Technology [Member] | |||||||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||||||
Intangible assets | 1,800 | 1,800 | |||||||||||
Weighted average amortization period | 10 years | ||||||||||||
Mirth [Member] | Trade Names [Member] | |||||||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||||||
Intangible assets | 1,350 | ||||||||||||
Mirth [Member] | Software Technology [Member] | |||||||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||||||
Intangible assets | $22,200 |
Capitalized_Software_Costs_Det
Capitalized Software Costs (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Capitalized software development costs | ||
Gross carrying amount | $113,955 | $100,455 |
Accumulated amortization | -73,558 | -61,303 |
Net capitalized software costs | $40,397 | $39,152 |
Capitalized_Software_Costs_Det1
Capitalized Software Costs (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Activity related to net capitalized software costs | |||
Balance as of April 1 | $39,152 | ||
Amortization of capitalized software costs | -12,817 | -12,338 | -9,668 |
Balance as of December 31 | 40,397 | 39,152 | |
Estimated amortization of capitalized software costs | |||
2015 | 11,200 | ||
2016 | 10,600 | ||
2017 | 5,500 | ||
2018 | 4,800 | ||
2019 | 4,700 | ||
2020 and beyond | 3,597 | ||
Total | $40,397 |
Composition_of_Certain_Financi2
Composition of Certain Financial Statement Captions (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of Accounts Receivable | ||
Accounts receivable, gross | $119,807 | $130,093 |
Sales return reserve | -8,835 | -10,530 |
Allowance for doubtful accounts | -3,303 | -6,295 |
Accounts receivable, net | 107,669 | 113,268 |
Summary of Inventories | ||
Computer systems and components, net | 622 | 834 |
Summary of Equipment and improvements | ||
Computer equipment | 42,668 | 37,322 |
Furniture and fixtures | 10,408 | 9,395 |
Leasehold improvements | 9,767 | 8,874 |
Equipment and improvements, gross | 62,843 | 55,591 |
Accumulated depreciation and amortization | -42,036 | -32,790 |
Equipment and improvements, net | 20,807 | 22,801 |
Summary of Current and non-current deferred revenue | ||
Maintenance | 15,077 | 15,482 |
Professional Services | 30,340 | 36,634 |
Annual license services | 11,130 | 11,176 |
Undelivered software and other | 9,796 | 7,785 |
Deferred revenue | 66,343 | 71,077 |
Deferred revenue, net of current | 1,349 | 2,187 |
Summary of Accrued compensation and related benefits | ||
Payroll, bonus and commission | 13,505 | 6,193 |
Vacation | 10,546 | 9,760 |
Accrued compensation and related benefits | 24,051 | 15,953 |
Other Liabilities [Abstract] | ||
Care services liabilities | 2,381 | 4,351 |
Self insurance reserve | 2,290 | 2,090 |
Accrued consulting | 2,603 | 1,707 |
Accrued EDI expense | 2,322 | 1,702 |
Accrued royalties | 2,063 | 1,418 |
Contingent consideration and other liabilities related to acquisitions | 9,124 | 1,052 |
Professional services | 3,527 | 170 |
Customer deposits | 4,760 | 3,163 |
Other accrued expenses | 4,854 | 5,716 |
Other current liabilities | 33,924 | 21,369 |
Contingent consideration and other liabilities related to acquisitions | 7,581 | 14,736 |
Deferred rent | 3,122 | 3,509 |
Income tax payable | 4,095 | 841 |
Deferred Income Taxes and Other Tax Liabilities, Noncurrent | 0 | 3,206 |
Other non-current liabilities | $14,798 | $22,292 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Current | |||||||||||
Federal taxes | $18,055 | $8,673 | $30,382 | ||||||||
State taxes | 1,887 | 2,380 | 5,019 | ||||||||
Foreign taxes | 262 | 252 | 190 | ||||||||
Total current taxes | 20,204 | 11,305 | 35,591 | ||||||||
Deferred | |||||||||||
Federal taxes | -9,804 | -2,894 | -8,469 | ||||||||
State taxes | -1,771 | -897 | -742 | ||||||||
Foreign taxes | -297 | -193 | -190 | ||||||||
Total deferred taxes | -11,872 | -3,984 | -9,401 | ||||||||
Provision for income taxes | $1,673 | $1,452 | $2,552 | $2,655 | $2,077 | ($6,606) | $5,465 | $6,385 | $8,332 | $7,321 | $26,190 |
Income_Tax_Details_1
Income Tax (Details 1) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Current: | |||
Federal income tax statutory rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
State income taxes, net of Federal benefit | 2.00% | 4.20% | 4.00% |
Research and development tax credits | -4.40% | -5.30% | -2.10% |
Qualified production activities income deduction | -5.40% | -4.90% | -4.60% |
Impairment of goodwill | 0.00% | 5.70% | 7.50% |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | -1.80% | 0.00% | 0.00% |
Other | -2.00% | -2.90% | -1.80% |
Effective income tax rate | 23.40% | 31.80% | 38.00% |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Deferred revenue | $11,970 | $10,144 |
Inventory valuation | 56 | 46 |
Accrued compensation and benefits | 7,744 | 5,219 |
Deferred compensation | 2,342 | 1,941 |
Compensatory stock option expense | 2,852 | 2,094 |
Allowance for doubtful accounts | 4,944 | 6,791 |
Intangible assets | 7,603 | 6,086 |
Research and development credit | 1,988 | 2,434 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 512 | 0 |
Other | 3,561 | 2,992 |
Total deferred tax assets | 43,572 | 37,747 |
Deferred tax liabilities: | ||
Accelerated depreciation | -756 | -1,582 |
Capitalized software | -8,728 | -13,919 |
Prepaid expense | -1,321 | -1,199 |
State income taxes | -730 | -433 |
Total deferred tax liabilities | -11,535 | -17,133 |
Valuation allowance | -1,840 | -2,288 |
Deferred tax assets (liabilities), net | $30,197 | $18,326 |
Income_Tax_Details_3
Income Tax (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Beginning Balance | $875 | $733 |
Additions for prior year tax positions | 3,106 | 405 |
Reductions for prior year tax positions | -218 | -263 |
Ending Balance | $875 |
Income_Tax_Details_Textual
Income Tax (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax (Textual) [Abstract] | |||
Recognized federal research and development tax credits | $1,560 | $1,196 | $1,461 |
State research and development tax credits | 380 | 251 | 145 |
Qualified production activities deduction under Section 199 of the Internal Revenue Code | 5,528 | 3,189 | 9,032 |
Accrued interest related to income tax | $332 | $80 | |
Period within which the company does not anticipate total unrecognized tax benefits to change | within the next twelve months |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Benefit Plans (Textual) [Abstract] | |||
Employee benefit plans employer contributions | $949 | $820 | $889 |
Maximum percentage of salary deferment | 75.00% | ||
Maximum percentage of annual bonus deferment | 100.00% | ||
Deferred compensation liability | 5,750 | 4,809 | |
Net cash surrender value of life insurance policies for deferred compensation | 6,004 | 4,865 | |
Deferral Plan [Member] | |||
Employee Benefit Plans (Textual) [Abstract] | |||
Employee benefit plans employer contributions | $86 | $62 | $49 |
Share_Based_Awards_Details
Share Based Awards (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Outstanding Beginning Balance | 1,370,101 | 1,159,183 | 988,337 |
Weighted Average Exercise Price Outstanding Beginning Balance | $27.85 | $30.54 | $32.09 |
Weighted Average Remaining Contractual Life Outstanding Beginning Balance | 5 years 6 months | 5 years 9 months 18 days | |
Number of Share Granted | 469,650 | 469,000 | 556,500 |
Weighted Average Exercise Price Granted | $15.97 | $18.78 | $27.78 |
Weighted Average Remaining Contractual Life Granted | 7 years 2 months 13 days | ||
Number of Shares Exercised | -111,272 | -56,366 | |
Weighted Average Exercise Price Exercised | $19.78 | $16.81 | |
Aggregate Intrinsic Value, Exercised | $264,000 | $82,000 | |
Number of Shares Forfeited/Canceled | -203,575 | -146,810 | -329,288 |
Weighted Average Exercise Price Forfeited/Canceled | $24.85 | $30.28 | $31.42 |
Weighted Average Remaining Contractual Life Forfeited/Canceled | 4 years 10 months 24 days | ||
Number of Shares Outstanding Ending Balance | 1,636,176 | 1,370,101 | 1,159,183 |
Weighted Average Exercise Price Outstanding Ending Balance | $24.82 | $27.85 | $30.54 |
Weighted Average Remaining Contractual Life Outstanding Ending Balance | 5 years 6 months | 5 years 9 months 18 days | |
Aggregate Intrinsic Value Outstanding Ending Balance | 8,000 | ||
Number of Shares Vested and expected to vest | 1,533,192 | ||
Weighted Average Exercise Price Vested and expected to vest | $25.03 | ||
Weighted Average Remaining Contractual Life Vested and expected to vest | 5 years 5 months 24 days | ||
Aggregate Intrinsic Value Vested and expected to vest | 8,000 | ||
Number of Shares Exercisable | 567,886 | ||
Weighted Average Exercise Price Exercisable | $30.81 | ||
Weighted Average Remaining Contractual Life Exercisable | 4 years 1 month 6 days | ||
Aggregate Intrinsic Value Exercisable | 0 | ||
Compensation expense | 3,472,000 | 2,490,000 | 2,327,000 |
Employee Stock Ownership Plan (ESOP), Plan [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 4,000,000 | ||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 3,966,391 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 15.00% | ||
EmployeeSharePurchasePlanPurchasePricePercentage | 90.00% | ||
SharePurchaseMaximumLimit | 1,500 | ||
PurchaseMaximumLimit | 25,000 | ||
Shares, Issued | 33,609 | ||
FiscalYear2015ExecutiveCompensationPlan [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
OptionsGranted | 105,000 | ||
RestrictedPerformanceShares | 170,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 390,000 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $463,000 |
Share_Based_Awards_Details_1
Share Based Awards (Details 1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
Schedule of Share Based Compensation Valuation Assumption | ||
Expected life | 4 years 10 months 24 days | 5 years 0 months 12 days |
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 | 1.50% | 0.80% |
Share_Based_Awards_Details_2
Share Based Awards (Details 2) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of stock options granted | |||
Number of Share Granted | 469,650 | 469,000 | 556,500 |
Exercise Price Granted | $17.68 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 5-Nov-20 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Eleven March Two Thousand Fifteen [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 11-Mar-15 | ||
Number of Share Granted | 10,000 | ||
Exercise Price Granted | $15.84 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 11-Mar-23 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Two September Two Thousand Fourteen [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 2-Sep-14 | ||
Number of Share Granted | 20,000 | ||
Exercise Price Granted | $15.63 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 2-Sep-22 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Three June Two Thousand Fourteen [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 3-Jun-14 | ||
Number of Share Granted | 439,650 | ||
Exercise Price Granted | $15.99 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 3-Jun-22 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Dates Fiscal Year Two Thousand Fifteen [Member] [Domain] | |||
Summary of stock options granted | |||
Option Grant Date | Fiscal year 2015 option grants | ||
Number of Share Granted | 469,650 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Fifteen August Two Thousand Thirteen [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 15-Aug-13 | ||
Number of Share Granted | 85,000 | ||
Exercise Price Granted | $20.85 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 15-Aug-21 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Thirty July Two Thousand Thirteen [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 30-Jul-13 | ||
Number of Share Granted | 28,000 | ||
Exercise Price Granted | $22.59 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 30-Jul-21 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Twenty Nine May Two Thousand Thirteen [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 29-May-13 | ||
Number of Share Granted | 356,000 | ||
Exercise Price Granted | $17.95 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 29-May-21 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Dates Fiscal Year Two Thousand Fourteen [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] | Option Grant Date Twenty Three January Two Thousand Thirteen [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 23-Jan-13 | ||
Number of Share Granted | 40,000 | ||
Exercise Price Granted | $19 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 23-Jan-21 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Five November Two Thousand Twelve [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 5-Nov-12 | ||
Number of Share Granted | 5,000 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Twenty Five September Two Thousand Twelve [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 25-Sep-12 | ||
Number of Share Granted | 20,000 | ||
Exercise Price Granted | $18.42 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 25-Sep-20 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Twenty Four May Two Thousand Twelve [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 24-May-12 | ||
Number of Share Granted | 346,000 | ||
Exercise Price Granted | $29.17 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 24-May-20 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date twenty fourth May two thousand twelve (Second Grand) [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 24-May-12 | ||
Number of Share Granted | 30,000 | ||
Exercise Price Granted | $29.17 | ||
Exercise of option grants | 4 years | ||
Option Grants Expires | 24-May-20 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Twenty three May two thousand twelve [Member] | |||
Summary of stock options granted | |||
Option Grant Date | 23-May-12 | ||
Number of Share Granted | 115,500 | ||
Exercise Price Granted | $29.45 | ||
Exercise of option grants | 5 years | ||
Option Grants Expires | 23-May-20 | ||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Fiscal Year Two Thousand Thirteen [Member] | |||
Summary of stock options granted | |||
Option Grant Date | Fiscal year 2013 option grants | ||
Number of Share Granted | 556,500 |
Share_Based_Awards_Details_3
Share Based Awards (Details 3) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
Schedule of Performance Based Awards Under Incentive plan | ||
Expected life | 4 years 10 months 24 days | 5 years 0 months 12 days |
Performance Based Awards [Member] | ||
Schedule of Performance Based Awards Under Incentive plan | ||
Expected life | 4 years 10 months 24 days | 5 years 0 months 18 days |
Expected volatility, Minimum Rate | 36.90% | 41.70% |
Expected volatility, Maximum Rate | 43.50% | 45.00% |
Risk-free rate, Minimum Rate | 1.40% | 0.60% |
Risk-free rate, Maximum Rate | 1.80% | 0.70% |
Performance Based Awards [Member] | Minimum [Member] | ||
Schedule of Performance Based Awards Under Incentive plan | ||
Expected dividends | 3.20% | 2.50% |
Performance Based Awards [Member] | Maximum [Member] | ||
Schedule of Performance Based Awards Under Incentive plan | ||
Expected dividends | 4.10% | 4.00% |
Share_Based_Awards_Details_4
Share Based Awards (Details 4) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule of Employee Stock Options and Performance Based Awards by Nonvested Stock Options | |||
Non-Vested Number of Shares Outstanding Beginning Balance | -778,319 | ||
Weighted Average Fair Value Price Outstanding Beginning Balance | $7.73 | $10.76 | |
Non-Vested Number of Shares Granted | 469,650 | 469,000 | 556,500 |
Weighted Average Fair Value Price Granted | $3.50 | $5.20 | $8.22 |
Non-Vested Number of Shares Vested | 269,785 | 134,970 | -201,191 |
Weighted Average Fair Value Price Vested | $8.24 | $9.30 | $8.43 |
Non-Vested Number of Shares Forfeited | -123,135 | -146,810 | -329,288 |
Weighted Average Fair Value Price Forfeited | $6.57 | $9.33 | $9.92 |
Non-Vested Number of Share Outstanding Ending Balance | -1,068,290 | -991,560 | 804,340 |
Weighted Average Fair Value Price Outstanding Ending Balance | $5.81 | $9.89 |
Share_Based_Awards_Details_5
Share Based Awards (Details 5) (USD $) | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Restricted stock units award activity | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,636,176 | 1,370,101 | 1,159,183 | 988,337 |
Restricted Stock Units Award [Member] | ||||
Restricted stock units award activity | ||||
Number of Shares, Beginning of the year | 64,571 | 30,385 | 30,001 | |
Weighted average Grant Date Fair value Per Share, Beginning of the year | $20.74 | $27.09 | $36.32 | |
Number of Shares Granted | 48,414 | 57,324 | 18,939 | |
Weighted average Grant Date Fair value Per Share, Granted | $15.77 | $20.75 | $19.32 | |
Number of Shares Vested | -34,780 | -16,302 | -18,555 | |
Weighted average Grant Date Fair value Per Share, Vested | $21.33 | $30.64 | $32.14 | |
Number of Shares Cancelled | -6,836 | |||
Weighted average Grant Date Fair value Per Share, Cancelled | $22.59 | |||
Number of Shares, Ending of the year | 64,571 | 30,385 | ||
Weighted average Grant Date Fair value Per Share Outstanding, Ending of the year | $17.94 | $20.74 | $27.09 | |
Two Thousand Five Stock Options Plan [Member] | ||||
Restricted stock units award activity | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,636,176 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 78,205 |
Share_Based_Awards_Details_Tex
Share Based Awards (Details Textual) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Oct. 31, 2005 |
Share Based Awards (Textual) [Abstract] | |||||
Exercise of option grants | 5 years | ||||
Outstanding options under 1998 and 2005 plan | 1,636,176 | 1,370,101 | 1,159,183 | 988,337 | |
Weighted-average grant date fair value of stock options | $3.50 | $5.20 | $8.22 | ||
Options granted under 2005 plan | 469,650 | 469,000 | 556,500 | ||
Fair value of options vested | $2,224 | $1,255 | $1,696 | ||
Compensation expense | 3,472 | 2,490 | 2,327 | ||
Stock Options [Member] | |||||
Share Based Awards (Textual) [Abstract] | |||||
Total unrecognized compensation costs | 4,293 | ||||
Stock option recognized over weighted average period | 3 years 2 months 20 days | ||||
Restricted Stock Units Award [Member] | |||||
Share Based Awards (Textual) [Abstract] | |||||
Total unrecognized compensation costs | 760 | ||||
Stock option recognized over weighted average period | 1 year 4 days | ||||
Compensation expense | 877 | 629 | 566 | ||
Director Options [Member] | |||||
Share Based Awards (Textual) [Abstract] | |||||
Annualized forfeiture rate | 0.00% | ||||
Two Thousand Five Stock Options Plan [Member] | |||||
Share Based Awards (Textual) [Abstract] | |||||
Common stock reserved | 4,800,000 | ||||
Outstanding options under 1998 and 2005 plan | 1,636,176 | ||||
Shares available for future grants | 2,298,488 | ||||
Two Thousand Five Stock Options Plan [Member] | Option Grant Dates Fiscal Year Two Thousand Fourteen [Member] | |||||
Share Based Awards (Textual) [Abstract] | |||||
Options granted under 2005 plan | 469,000 | ||||
Two Thousand Five Stock Options Plan [Member] | Option Grant Date Fiscal Year Two Thousand Thirteen [Member] | |||||
Share Based Awards (Textual) [Abstract] | |||||
Options granted under 2005 plan | 556,500 | ||||
Employee Share Purchase Plan (ESPP), Plan [Domain] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares, Issued | 33,609 | ||||
Share Based Awards (Textual) [Abstract] | |||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 3,966,391 | ||||
Performance Based Awards [Member] | |||||
Share Based Awards (Textual) [Abstract] | |||||
Compensation expense | $463 |
Recovered_Sheet1
Commitments, Guarantees And Contingencies (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Rental commitments under these agreements | |
Operating lease obligations | $47,784 |
2015 | 7,461 |
2016 | 7,602 |
2017 | 7,641 |
2018 | 4,628 |
2019 | 3,572 |
2021 and beyond | 16,880 |
Contingent Consideration and Other Acquisition Related Liabilities Due | |
Contingent consideration and other acquisition related liabilities (excluding share-based payments) | 1,400 |
2015 | 700 |
2016 | 700 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
2020 and beyond | 0 |
Contractual Obligation, Fiscal Year Maturity | |
Total contractual obligations | 49,184 |
2015 | 8,161 |
2016 | 8,302 |
2017 | 7,641 |
2018 | 4,628 |
2019 | 3,572 |
2020 and beyond | $16,880 |
Commitments_Guarantees_and_Con2
Commitments Guarantees and Contingencies (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Liability for Uncertain Tax Positions, Noncurrent | $3,763 | |||
Commitments Guarantees and Contingencies (Textual) | ||||
Rent expense | $7,416 | $7,604 | $5,753 | |
Applicable program documentation period | 365 days |
Operating_Segment_Information_1
Operating Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | |||||||||||
Research and development costs | $17,638 | $18,468 | $16,898 | $16,236 | $15,120 | $13,175 | $7,615 | $5,614 | $69,240 | $41,524 | $30,865 |
Segment Operating Data | |||||||||||
Revenue | 128,388 | 123,424 | 120,519 | 117,894 | 115,203 | 108,854 | 111,081 | 109,529 | 490,225 | 444,667 | 460,229 |
Operating income | 12,732 | 8,210 | 7,259 | 7,755 | 6,921 | -19,332 | 15,946 | 19,553 | 35,956 | 23,088 | 69,100 |
Amortization of capitalized software costs | 12,817 | 12,338 | 9,668 | ||||||||
Marketing expense | 11,913 | 10,123 | 7,012 | ||||||||
Other Corporate and overhead costs (1) | 64,065 | 76,550 | 58,698 | ||||||||
Total Corporate and unallocated | 158,035 | 140,535 | 106,243 | ||||||||
QSI Dental Division [Member] | |||||||||||
Segment Operating Data | |||||||||||
Revenue | 18,451 | 19,840 | 19,990 | ||||||||
Operating income | 5,228 | 6,155 | 5,819 | ||||||||
NextGen Division [Member] | |||||||||||
Segment Operating Data | |||||||||||
Revenue | 373,765 | 341,120 | 344,315 | ||||||||
Operating income | 178,680 | 155,578 | 158,110 | ||||||||
Hospital Solutions Division [Member] | |||||||||||
Segment Operating Data | |||||||||||
Revenue | 18,004 | 15,614 | 31,413 | ||||||||
Operating income | -2,790 | -7,453 | 2,997 | ||||||||
RCM Services Division [Member] | |||||||||||
Segment Operating Data | |||||||||||
Revenue | 80,005 | 68,093 | 64,511 | ||||||||
Operating income | 12,873 | 9,343 | 8,417 | ||||||||
Unallocated corporate expense [Member] | |||||||||||
Segment Operating Data | |||||||||||
Operating income | ($158,035) | ($140,535) | ($106,243) |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (Subsequent Event [Member], USD $) | 28-May-14 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Cash dividend | $0.18 |
Selected_Quarterly_Operating_R2
Selected Quarterly Operating Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | |||||||||||
Software, hardware and supplies | $16,061 | $16,339 | $14,230 | $14,743 | $15,186 | $14,114 | $15,562 | $15,972 | $61,373 | $60,834 | $88,572 |
Implementation and training services | 6,684 | 3,658 | 7,040 | 6,266 | 6,518 | 5,046 | 7,809 | 6,575 | 23,648 | 25,948 | 35,008 |
System sales | 22,745 | 19,997 | 21,270 | 21,009 | 21,704 | 19,160 | 23,371 | 22,547 | 85,021 | 86,782 | 123,580 |
Maintenance | 43,234 | 43,045 | 42,135 | 40,805 | 41,376 | 39,763 | 40,313 | 38,608 | 169,219 | 160,060 | 156,771 |
Electronic data interchange services | 20,082 | 19,051 | 18,906 | 18,319 | 17,421 | 16,637 | 16,545 | 16,692 | 76,358 | 67,295 | 59,709 |
Revenue cycle management and related services | 19,720 | 20,392 | 17,432 | 16,693 | 15,316 | 16,178 | 15,467 | 16,015 | 74,237 | 62,976 | 59,219 |
Other services | 22,607 | 20,939 | 20,776 | 21,068 | 19,386 | 17,116 | 15,385 | 15,667 | 85,390 | 67,554 | 60,950 |
Maintenance, EDI, RCM and other services | 105,643 | 103,427 | 99,249 | 96,885 | 93,499 | 89,694 | 87,710 | 86,982 | 405,204 | 357,885 | 336,649 |
Total revenues | 128,388 | 123,424 | 120,519 | 117,894 | 115,203 | 108,854 | 111,081 | 109,529 | 490,225 | 444,667 | 460,229 |
Cost of revenue: | |||||||||||
Software, hardware and supplies | 5,404 | 6,127 | 6,521 | 6,641 | 7,115 | 27,398 | 4,779 | 4,934 | 24,693 | 44,226 | 21,750 |
Implementation and training services | 5,479 | 4,584 | 6,688 | 7,151 | 8,109 | 7,466 | 6,972 | 7,134 | 23,902 | 29,681 | 30,896 |
Total cost of system sales | 10,883 | 10,711 | 13,209 | 13,792 | 15,224 | 34,864 | 11,751 | 12,068 | 48,595 | 73,907 | 52,646 |
Maintenance | 7,802 | 7,365 | 6,785 | 6,914 | 6,384 | 5,642 | 5,262 | 5,302 | 28,866 | 22,590 | 20,316 |
Electronic data interchange services | 12,274 | 11,956 | 12,015 | 11,999 | 10,845 | 10,276 | 10,650 | 10,796 | 48,244 | 42,567 | 38,350 |
Revenue cycle management and related services | 14,252 | 14,246 | 13,202 | 12,706 | 12,059 | 11,736 | 11,007 | 11,401 | 54,406 | 46,203 | 43,324 |
Other services | 10,630 | 10,082 | 11,562 | 10,779 | 8,842 | 8,537 | 9,012 | 8,505 | 43,053 | 34,896 | 35,016 |
Total cost of maintenance, EDI, RCM and other services | 44,958 | 43,649 | 43,564 | 42,398 | 38,130 | 36,191 | 35,931 | 36,004 | 174,569 | 146,256 | 137,006 |
Total cost of revenue | 55,841 | 54,360 | 56,773 | 56,190 | 53,354 | 71,055 | 47,682 | 48,072 | 223,164 | 220,163 | 189,652 |
Gross profit | 72,547 | 69,064 | 63,746 | 61,704 | 61,849 | 37,799 | 63,399 | 61,457 | 267,061 | 224,504 | 270,577 |
Operating expenses: | |||||||||||
Selling, general and administrative | 41,279 | 41,482 | 38,681 | 36,730 | 38,676 | 36,864 | 38,578 | 35,096 | 158,172 | 149,214 | 148,353 |
Research and development costs | 17,638 | 18,468 | 16,898 | 16,236 | 15,120 | 13,175 | 7,615 | 5,614 | 69,240 | 41,524 | 30,865 |
Amortization of acquired intangible assets | 898 | 904 | 908 | 983 | 1,132 | 1,219 | 1,260 | 1,194 | 7,127 | 8,330 | 7,559 |
Impairment of goodwill and other assets | 0 | 0 | 0 | 0 | 0 | 5,873 | 0 | 0 | 0 | 5,873 | 17,400 |
Total operating expenses | 59,815 | 60,854 | 56,487 | 53,949 | 54,928 | 57,131 | 47,453 | 41,904 | 231,105 | 201,416 | 201,477 |
Income from operations | 12,732 | 8,210 | 7,259 | 7,755 | 6,921 | -19,332 | 15,946 | 19,553 | 35,956 | 23,088 | 69,100 |
Interest Income (Expense), Net | -271 | -82 | 69 | 54 | 322 | 121 | -205 | 31 | -230 | 269 | -107 |
Other income (expense), net | -45 | 0 | -26 | 9 | 35 | 18 | -155 | -254 | -62 | -356 | -79 |
Income before provision for income taxes | 12,416 | 8,128 | 7,302 | 7,818 | 7,278 | -19,193 | 15,586 | 19,330 | 35,664 | 23,001 | 68,914 |
Provision for income taxes | 1,673 | 1,452 | 2,552 | 2,655 | 2,077 | -6,606 | 5,465 | 6,385 | 8,332 | 7,321 | 26,190 |
Net income | $10,743 | $6,676 | $4,750 | $5,163 | $5,201 | ($12,587) | $10,121 | $12,945 | $27,332 | $15,680 | $42,724 |
Net income per share: | |||||||||||
Basic | $0.18 | $0.11 | $0.08 | $0.09 | $0.09 | ($0.21) | $0.17 | $0.22 | $0.45 | $0.26 | $0.72 |
Diluted | $0.18 | $0.11 | $0.08 | $0.08 | $0.09 | ($0.21) | $0.17 | $0.22 | $0.45 | $0.26 | $0.72 |
Weighted-average shares outstanding: | |||||||||||
Basic | 60,288 | 60,272 | 60,247 | 60,230 | 60,208 | 60,173 | 59,734 | 59,559 | 60,259 | 59,918 | 59,392 |
Diluted | 60,956 | 60,855 | 60,788 | 60,770 | 60,592 | 60,173 | 59,751 | 59,572 | 60,849 | 60,134 | 59,462 |
Dividends declared per common share | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0.70 | $0.70 | $0.70 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Sales Return Reserves [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $10,530 | $6,506 | $2,229 |
Additions Charged to Costs and Expenses | 8,038 | 17,966 | 10,783 |
Deductions | -9,733 | -13,942 | -6,506 |
Balance at End of Year | 8,835 | 10,530 | 6,506 |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 6,295 | 11,823 | 8,481 |
Additions Charged to Costs and Expenses | 855 | 1,467 | 6,885 |
Deductions | -3,847 | -6,995 | -3,543 |
Balance at End of Year | 3,303 | 6,295 | 11,823 |
Valuation Allowance on Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 2,288 | 2,003 | 1,446 |
Additions Charged to Costs and Expenses | 0 | 285 | 557 |
Deductions | -448 | 0 | 0 |
Balance at End of Year | $1,840 | $2,288 | $2,003 |