Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | May 21, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --03-31 | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-13449 | ||
Entity Registrant Name | QUANTUM CORP /DE/ | ||
Entity Incorporation, State | DE | ||
Entity Tax Identification Number | 94-2665054 | ||
Entity Address, Street | 224 Airport Parkway | ||
Entity Address, Suite | Suite 550 | ||
Entity Address, City | San Jose | ||
Entity Address, State | CA | ||
Entity Address, Postal Zip Code | 95110 | ||
City Area Code | (408) | ||
Local Phone Number | 944-4000 | ||
Title of each class | Common Stock, $0.01 par value per share | ||
Trading Symbol | QMCO | ||
Name of each exchange on which registered | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 88,226,482 | ||
Entity Common Stock, Shares Outstanding | 57,086,961 | ||
Documents Incorporated by Reference | The portions of the registrant's proxy statement to be filed in connection with the Annual Meeting of Stockholders to be held in 2021 have been incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000709283 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 27,430 | $ 6,440 |
Restricted cash, current | 707 | 830 |
Accounts receivable, net of allowance for doubtful accounts of $406 and $1,247, respectively | 73,102 | 70,370 |
Manufacturing inventories | 24,467 | 29,196 |
Service parts inventories | 23,421 | 20,502 |
Other current assets | 6,939 | 8,489 |
Total current assets | 156,066 | 135,827 |
Property and equipment, net | 10,051 | 9,046 |
Intangible assets, net | 5,037 | 0 |
Goodwill | 3,466 | 0 |
Restricted cash, long-term | 5,000 | 5,000 |
Right-of-use assets, net | 9,383 | 12,689 |
Other long-term assets | 5,921 | 3,433 |
Total assets | 194,924 | 165,995 |
Current liabilities: | ||
Accounts payable | 35,245 | 36,949 |
Deferred revenue | 84,027 | 81,492 |
Accrued restructuring charges | 580 | 0 |
Long-term debt, current portion | 1,850 | 7,321 |
Accrued compensation | 19,214 | 14,957 |
Other accrued liabilities | 18,174 | 17,535 |
Total current liabilities | 159,090 | 158,254 |
Deferred revenue | 36,126 | 37,443 |
Long-term debt, net of current portion | 90,890 | 146,847 |
Operating lease liabilities | 8,005 | 10,822 |
Other long-term liabilities | 13,058 | 11,154 |
Total liabilities | 307,169 | 364,520 |
Commitments and Contingencies (Note 11) | ||
Preferred stock: | ||
Preferred stock, 20,000 shares authorized; no shares issued as of March 31, 2021 and 2020 | 0 | 0 |
Common stock: | ||
Common stock, $0.01 par value; 125,000 shares authorized; 56,915 and 39,905 shares issued and outstanding at March 31, 2021 and 2020, respectively | 570 | 399 |
Additional paid-in capital | 626,664 | 505,762 |
Accumulated deficit | (738,623) | (703,164) |
Accumulated other comprehensive loss | (856) | (1,522) |
Total stockholders' deficit | (112,245) | (198,525) |
Total liabilities and stockholders' deficit | $ 194,924 | $ 165,995 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 406 | $ 1,247 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 56,915,000 | 39,905,000 |
Common stock, shares outstanding (in shares) | 56,915,000 | 39,905,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | |||
Revenue | $ 349,576 | $ 402,949 | $ 402,680 |
Cost of revenue: | |||
Cost of revenue | 198,823 | 230,441 | 235,066 |
Gross profit | 150,753 | 172,508 | 167,614 |
Operating expenses: | |||
Research and development | 41,703 | 36,301 | 32,113 |
Sales and marketing | 54,945 | 59,524 | 69,400 |
General and administrative | 42,001 | 54,457 | 65,277 |
Restructuring costs | 3,701 | 1,022 | 5,570 |
Total operating expenses | 142,350 | 151,304 | 172,360 |
Income (loss) from operations | 8,403 | 21,204 | (4,746) |
Other income (expense), net | (1,312) | (261) | 2,878 |
Interest expense | (27,522) | (25,350) | (21,095) |
Loss on debt extinguishment, net | (14,789) | 0 | (17,458) |
Net loss before income taxes | (35,220) | (4,407) | (40,421) |
Income tax provision | 239 | 803 | 2,376 |
Net loss | $ (35,459) | $ (5,210) | $ (42,797) |
Net loss per share - basic and diluted (in dollars per share) | $ (0.83) | $ (0.14) | $ (1.20) |
Weighted average shares - basic and diluted (in shares) | 42,852 | 37,593 | 35,551 |
Foreign currency translation adjustments, net of income taxes | $ 666 | $ (112) | $ (1,136) |
Total comprehensive loss | (34,793) | (5,322) | (43,933) |
Product | |||
Revenue: | |||
Revenue | 209,808 | 251,168 | 244,654 |
Cost of revenue: | |||
Cost of revenue | 150,257 | 179,760 | 179,846 |
Service | |||
Revenue: | |||
Revenue | 124,904 | 131,050 | 134,696 |
Cost of revenue: | |||
Cost of revenue | 48,566 | 50,681 | 55,220 |
Royalty | |||
Revenue: | |||
Revenue | $ 14,864 | $ 20,731 | $ 23,330 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | |||
Net loss | $ (35,459) | $ (5,210) | $ (42,797) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 5,697 | 4,287 | 4,266 |
Amortization of debt issuance costs | 6,301 | 4,017 | 2,825 |
Long-term debt related costs | 167 | 0 | 0 |
Paid-in-kind interest | 0 | 1,858 | 0 |
Provision for manufacturing and service inventories | 6,334 | 6,255 | 8,851 |
Non-cash income tax benefit | (577) | 0 | 0 |
Total share-based compensation | 9,624 | 6,748 | 3,409 |
Deferred income taxes | 34 | 458 | 2,356 |
Bad debt expense | (573) | 1,221 | 315 |
Unrealized foreign exchange (gain) loss, net of income taxes | 1,243 | 128 | (224) |
Non-cash loss on debt extinguishment | 10,087 | 0 | 17,851 |
Gain on investment | 0 | 0 | (2,729) |
Other non-cash | 0 | 0 | 1,795 |
Changes in assets and liabilities, net of effect of acquisition: | |||
Accounts receivable | (1,625) | 15,237 | 8,054 |
Manufacturing inventories | 924 | (11,092) | 13,054 |
Service parts inventories | (5,879) | (3,817) | (3,506) |
Accounts payable | (1,994) | (768) | (25,356) |
Deferred revenue | 418 | (11,334) | (8,367) |
Accrued restructuring charges | 580 | (2,876) | (2,943) |
Accrued compensation | 4,257 | (2,161) | (2,342) |
Other assets and liabilities | (326) | (4,132) | 8,629 |
Net cash used in operating activities | (767) | (1,181) | (16,859) |
Investing activities | |||
Purchases of property and equipment | (6,931) | (2,633) | (2,708) |
Cash distributions from investments | 0 | 0 | 2,943 |
Business acquisitions | (2,655) | (1,966) | 0 |
Net cash provided by (used in) investing activities | (9,586) | (4,599) | 235 |
Financing activities | |||
Borrowings of long-term debt | 19,400 | 0 | 186,780 |
Repayments of long-term debt | (92,782) | (1,238) | (121,807) |
Borrowings of credit facility | 309,920 | 331,632 | 320,927 |
Repayments of credit facility | (313,065) | (329,012) | (369,336) |
Borrowings of paycheck protection program | 10,000 | 0 | 0 |
Proceeds from secondary offering, net | 96,756 | 0 | 0 |
Payment of taxes due upon vesting of restricted stock | (236) | (171) | (354) |
Proceeds from issuance of common stock | 1,335 | 0 | 0 |
Net cash provided by financing activities | 31,328 | 1,211 | 16,210 |
Effect of exchange rate changes on cash and cash equivalents | (108) | (16) | 62 |
Net change in cash, cash equivalents, and restricted cash | 20,867 | (4,585) | (352) |
Cash, cash equivalents, and restricted cash at beginning of period | 12,270 | 16,855 | 17,207 |
Cash, cash equivalents, and restricted cash at end of period | 33,137 | 12,270 | 16,855 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 24,324 | 16,488 | 17,677 |
Cash paid for income taxes, net of refunds | $ (2,283) | $ (490) | $ 68 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Non-cash transactions | |||
Transfer of inventory to property and equipment | $ 429 | $ 400 | $ 408 |
Payment of litigation settlements with insurance proceeds | 0 | 8,950 | 0 |
Accounts Payable | |||
Non-cash transactions | |||
Purchases of property and equipment | 258 | 368 | 105 |
Accrued Liabilities | |||
Non-cash transactions | |||
Purchases of property and equipment | $ 1,212 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS - Cash Reconciliation (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows: | ||||
Cash and cash equivalents | $ 27,430 | $ 6,440 | $ 10,790 | |
Restricted cash, current | 707 | 830 | 1,065 | |
Restricted cash, long-term | 5,000 | 5,000 | 5,000 | |
Total cash, cash equivalents and restricted cash at the end of period | $ 33,137 | $ 12,270 | $ 16,855 | $ 17,207 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance at Mar. 31, 2018 | $ (173,467) | $ 354 | $ 481,610 | $ (655,157) | $ (274) |
Beginning balance (in shares) at Mar. 31, 2018 | 35,443 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (42,797) | (42,797) | |||
Foreign currency translation adjustments, net of income taxes | (1,136) | (1,136) | |||
Shares issued under employee incentive plans, net | (354) | $ 6 | (360) | ||
Shares issued under employee stock incentive plans, net (in shares) | 597 | ||||
Stock-based compensation | 3,409 | 3,409 | |||
Reclassifications of liability classified warrants to equity | 14,565 | 14,565 | |||
Ending balance at Mar. 31, 2019 | (199,780) | $ 360 | 499,224 | (697,954) | (1,410) |
Ending balance (in shares) at Mar. 31, 2019 | 36,040 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (5,210) | (5,210) | |||
Foreign currency translation adjustments, net of income taxes | (112) | (112) | |||
Shares issued under employee incentive plans, net | (171) | $ 11 | (182) | ||
Shares issued under employee stock incentive plans, net (in shares) | 1,082 | ||||
Warrants issued related to long-term debt | 0 | $ 28 | (28) | ||
Stock issued from warrants exercised, net (in shares) | 2,783 | ||||
Stock-based compensation | 6,748 | 6,748 | |||
Ending balance at Mar. 31, 2020 | $ (198,525) | $ 399 | 505,762 | (703,164) | (1,522) |
Ending balance (in shares) at Mar. 31, 2020 | 39,905 | 39,905 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | $ (35,459) | (35,459) | |||
Foreign currency translation adjustments, net of income taxes | 666 | 666 | |||
Shares issued under employee stock purchase plan | 1,335 | $ 4 | 1,331 | ||
Shares issued under employee stock purchase plan (in shares) | 320 | ||||
Shares issued under employee incentive plans, net | 0 | $ 13 | (13) | ||
Shares issued under employee stock incentive plans, net (in shares) | 1,264 | ||||
Shares surrendered for employees' tax liability upon settlement of restricted stock units | (236) | (236) | |||
Shares surrendered for employees' tax liability upon settlement of restricted stock units (in shares) | (44) | ||||
Shares issued in connection with business acquisition | 2,080 | $ 3 | 2,077 | ||
Shares issued in connection with business acquisition (in shares) | 361 | ||||
Shares issued in connection with secondary equity offering, net | 96,755 | $ 151 | 96,604 | ||
Shares issued in connection with secondary equity offering (in shares) | 15,109 | ||||
Warrants issued related to long-term debt | 11,515 | 11,515 | |||
Stock-based compensation | 9,624 | 9,624 | |||
Ending balance at Mar. 31, 2021 | $ (112,245) | $ 570 | $ 626,664 | $ (738,623) | $ (856) |
Ending balance (in shares) at Mar. 31, 2021 | 56,915 | 56,915 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business Quantum Corporation, together with its consolidated subsidiaries (“Quantum” or the “Company”), is a leader in storing and managing digital video and other forms of unstructured data, delivering top streaming performance for video and rich media applications, along with low-cost, long-term storage systems for data protection and archiving. The Company helps customers around the world capture, create and share digital data and preserve and protect it for decades. The Company’s software-defined, hyperconverged storage solutions span from non-violate memory express (“NVMe”), to solid state drives, (“SSD”), hard disk drives, (“HDD”), tape and the cloud and are tied together leveraging a single namespace view of the entire data environment. The Company works closely with a broad network of distributors, value-added resellers (“VARs”), direct marketing resellers (“DMRs”), original equipment manufacturers (“OEMs”) and other suppliers to meet customers’ evolving needs. Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated. The Company reviews subsidiaries and affiliates, as well as other entities, to determine if they should be considered variable interest entities (“VIE”), and whether it should change the consolidation determinations based on changes in their characteristics. The Company considers an entity a VIE if its equity investors own an interest therein that lacks the characteristics of a controlling financial interest or if such investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or if the entity is structured with non-substantive voting interests. To determine whether or not the entity is consolidated with the Company’s results, the Company also evaluates which interests are variable interests in the VIE and which party is the primary beneficiary of the VIE. Principles of Consolidation The consolidated financial statements include the accounts of Quantum and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ from these estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment from the ongoing COVID-19 pandemic. Such estimates include, but are not limited to, the determination of standalone selling price for revenue arrangements with multiple performance obligations, useful lives of intangible assets and property and equipment, stock-based compensation and provision for income taxes including related reserves. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Cash and Cash Equivalents The Company has cash deposits and cash equivalents deposited in or managed by major financial institutions. Cash equivalents include all highly liquid investment instruments with an original maturity of three months or less and consist primarily of money market accounts. At times the related amounts are in excess of amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses with these financial institutions and does not believe such balances are exposed to significant credit risk. Restricted Cash Restricted cash is primarily attributable to minimum cash reserve requirements under the Company’s revolving credit agreements. The remaining restricted cash is comprised of bank guarantees and similar required minimum balances that serve as cash collateral in connection with various items including insurance requirements, value added taxes, ongoing tax audits and leases in certain countries. Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses based on historical experience and expected collectability of outstanding accounts receivable. The Company performs ongoing credit evaluations of its customers’ financial condition, and for the majority of its customers require no collateral. For customers that do not meet the Company’s credit standards, the Company often requires a form of collateral, such as cash deposits or letters of credit, prior to the completion of a transaction. These credit evaluations require significant judgment and are based on multiple sources of information. The Company analyzes such factors as its historical bad debt experience, industry and geographic concentrations of credit risk, current economic trends and changes in customer payment terms. The Company will write-off customer balances in full to the reserve when it has determined that the balance is not recoverable. Changes in the allowance for doubtful accounts are recorded in general and administrative expenses. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Other than quoted prices that are observable in the market for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are unobservable and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company's financial instruments consist of Level 3 liabilities. Manufacturing Inventories Manufacturing inventory is recorded at the lower of cost or net realizable value, with cost being determined on a first-in, first-out (“FIFO”) basis. Costs include material, direct labor, and an allocation of overhead in the case of work in process. Adjustments to reduce the cost of manufacturing inventory to its net realizable value, if required, are made for estimated excess, obsolete or impaired balances. Factors influencing these adjustments include declines in demand, rapid technological changes, product life cycle and development plans, component cost trends, product pricing, physical deterioration and quality issues. Revisions to these adjustments would be required if these factors differ from the Company’s estimates. Service Parts Inventories Service parts inventories are recorded at the lower of cost or net realizable value, with cost being determined on a FIFO basis. The Company carries service parts because it generally provides product warranty for one Property and Equipment Property and equipment are carried at cost, less accumulated depreciation and amortization, computed on a straight-line basis over the estimated useful lives of the assets as follows: Machinery and equipment 3 to 5 years Computer equipment 3 to 5 years Enterprise resource planning software (1) 10 years Other software 3 years Furniture and fixtures 5 years Other office equipment 5 years Leasehold improvements Shorter of useful life or life of lease (1) Included in other long-term assets in the accompanying consolidated balance sheets. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in the consolidated statements of operations and comprehensive income (loss) in the period realized. The Company evaluates the recoverability of the carrying amount of its property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be fully recoverable. A potential impairment charge is evaluated when the undiscounted expected cash flows derived from an asset group are less than its carrying amount. Impairment losses, if applicable, are measured as the amount by which the carrying value of an asset group exceeds its fair value and are recognized in operating results. Judgment is used when applying these impairment rules to determine the timing of impairment testing, the undiscounted cash flows used to assess impairments and the fair value of the asset group. Business Combinations The Company allocates the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the estimated fair value of the assets acquired and liabilities assumed, with the corresponding offset to goodwill. The results of operations of an acquired business is included in its consolidated financial statements from the date of acquisition. Acquisition-related expenses are expensed as incurred. Goodwill Goodwill represents the excess of the purchase price consideration over the estimated fair value of the tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill is evaluated for impairment annually in the third quarter of its fiscal year as a single reporting unit, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company may elect to qualitatively assess whether it is more likely than not that the fair value of its reporting unit is less than its carrying value. If the Company opts not to qualitatively assess, a quantitative goodwill impairment test is performed. The quantitative test compares its reporting unit's carrying amount, including goodwill, to its fair value calculated based on its enterprise value. If the carrying amount exceeds its fair value, an impairment loss is recognized for the excess. The Company did not recognize any impairment of goodwill in any of the periods presented in the consolidated financial statements. Purchased Intangible Assets Purchased intangible assets with finite lives are stated at cost, net of accumulated amortization. The Company amortizes its intangible assets on a straight-line basis over an estimated useful life of three Impairment of Long-Lived Assets We review our long-lived assets, including property and equipment and finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure the recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, we record an impairment charge for the amount by which the carrying amount of the asset exceeds its fair market value. Operating Leases The Company determines if an arrangement contains a lease at inception. Lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in the Company's operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. The operating lease right-of-use ("ROU") asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives. The Company accounts for the lease and non-lease components of operating lease contract consideration as a single lease component. Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the lease cost. Lease cost is recognized on a straight-line basis over the lease term commencing on the date the Company has the right to use the leased property. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that an extension or termination option will be exercised. In addition, certain operating lease agreements contain tenant improvement allowances from the Company's landlords. These allowances are accounted for as lease incentives and reduce its ROU asset and lease cost over the lease term. For short-term leases with lease term no longer than twelve months, and do not include an option to purchase the underlying asset that is reasonably certain to be exercise, the Company recognizes rent expense in the Company's consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but have not yet been recognized as revenue and performance obligations pertaining to subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet dates. Revenue recognition The Company generates revenue from three main sources: (1) product, (2) professional services, and (3) royalties. Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis. The Company's performance obligations are satisfied at a point in time or over time as stand ready obligations. The majority of revenue is recognized at a point in time when products are accepted, installed or delivered. Product Revenue The Company's product revenue is comprised of multiple storage solution hardware and software offerings targeted towards consumer and enterprise customers. Revenue from product sales is recognized at the point in time when the customer takes control of the product. If there are significant post-delivery obligations, the related revenue is deferred until such obligations are fulfilled. Revenue from contracts with customer acceptance criteria are recognized upon end user acceptance. Service Revenue Service revenue primarily consists of three components: (1) post-contract customer support agreements. (2) installation, and (3) consulting & training. Customers have the option to choose between different levels of hardware and software support. The Company's support plans include various stand-ready obligations such as technical assistance hot-lines, replacement parts maintenance, and remote monitoring that are delivered whenever called upon by its customers. Support plans provide additional services and assurance outside the scope of the Company's primary product warranties. Revenue from support plans are recognized ratably over the contractual term of the service contract. The Company offers installation services on all its products. Customers can opt to either have Quantum or a Quantum-approved third-party service provider install its products. Installation services are typically completed within a short period of time and revenue from these services are recognized at the point when installation is complete. A majority of the Company's consulting and training revenue does not take significant time to complete therefore these obligations are satisfied upon completion of such services at a point in time. Royalty Revenue The Company licenses certain intellectual property to third party manufacturers which gives the manufacturers rights to intellectual property including the right to either manufacture or include the intellectual property in their products for resale. Licensees pay the Company a per-unit royalty for sales of their products that incorporate its intellectual property. On a periodic and timely basis, the licensees provide us with reports containing units sold to end users subject to the royalties. The reports substantiate that the performance obligation has been satisfied therefore revenue is recognized based on the reports or when amounts can be reasonably estimated. Significant Judgements The Company generally enters into contracts with customers to provide storage solutions to meet their individual needs. Most of the Company’s contracts contain multiple goods and services designed to meet each customers’ unique storage needs. Contracts with multiple goods and services have multiple distinct performance obligations as the promise to transfer hardware, installation services, and support services are capable of being distinct and provide economic benefit to customers on their own. Stand-alone selling price For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative standalone selling price (“SSP”) of the good or service underlying each performance obligation. The SSP represents the amount for which the Company would sell the good or service to a customer on a standalone basis (i.e., not sold as a bundle with any other products or services). Where SSP may not be directly observable (e.g., the performance obligation is not sold separately), the Company maximized the use of observable inputs by using information including reviewing discounting practices, performance obligations with similar customers and product groupings. The Company evaluated all methods included in ASC 606 to determine SSP and concluded that invoice price is the best representation of what the Company expects to receive from the delivery of each performance obligation. Variable consideration Product revenue includes multiple types of variable consideration, such as rebates, returns, or stock rotations. All contracts with variable consideration require payment upon satisfaction of the performance obligation typically with net 45-day payment terms. The Company does not include significant financing components in its contracts. The Company constrains estimates of variable consideration to amounts that are not expected to result in a significant revenue reversal in the future, primarily based on the most likely level of consideration to be returned to the customer under the specific terms of the underlying programs. The expected value method is used to estimate the consideration expected to be returned to the customer. The Company uses historical data and current trends to drive the estimates. The Company records a reduction to revenue to account for these programs. The Company initially measures this asset at the carrying amount of the inventory, less any expected costs to recover the goods including potential decreases in the value of the returned goods. Cost of Service Revenue The Company classifies expenses as service cost of revenue by estimating the portion of its total cost of revenue that relates to providing field support to its customers under contract. These estimates are based upon a variety of factors, including the nature of the support activity and the level of infrastructure required to support the activities from which it earns service revenue. In the event its service business changes, its estimates of cost of service revenue may be impacted. Research and Development Costs Expenditures relating to the development of new products and processes are expensed as incurred. These costs include expenditures for employee compensation, materials used in the development effort, other internal costs, as well as expenditures for third party professional services. The Company has determined that technological feasibility for its software products is reached shortly before the products are released to manufacturing. Costs incurred after technological feasibility is established have not been material. The Company expenses software-related research and development costs as incurred. Advertising Expense Advertising expense is recorded as incurred and was $1.5 million, $3.4 million, and $4.5 million in fiscal 2021, 2020 and 2019, respectively. Shipping and Handling Fees Shipping and handling fees are included in cost of revenue and were $9.4 million, $9.4 million, and $9.1 million in fiscal 2021, 2020 and 2019, respectively. Restructuring Reserves Restructuring reserves include charges related to the realignment and restructuring of the Company’s business operations. These charges represent judgments and estimates of the Company’s costs of severance, closure and consolidation of facilities and settlement of contractual obligations under its operating leases, including sublease rental rates, asset write-offs and other related costs. The Company reassesses the reserve requirements to complete each individual plan under the restructuring programs at the end of each reporting period. If these estimates change in the future or actual results differ from the Company’s estimates, additional charges may be required. Foreign Currency Translation The Company's international operations generally use their local currency as their functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are reported as a component of other comprehensive income (loss) and recorded in accumulated other comprehensive loss on its consolidated balance sheets. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes in which deferred tax asset and liabilities are recognized based on differences between the financial reporting carrying values of assets and liabilities and the tax basis of those assets and liabilities, measured at the enacted tax rates expected to apply to taxable income in the years in which those tax assets or liabilities are expected to be realized or settled. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance, if any, that results from a change in circumstances, and which causes a change in the Company’s judgment about the realizability of the related deferred tax asset, is included in the tax provision. The Company assesses whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized in the financial statements from such a position is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances and changes in tax law. The Company recognizes penalties and tax-related interest expense as a component of income tax expense in the consolidated statements of operations. Asset Retirement Obligations The Company records an asset retirement obligation for the fair value of legal obligations associated with the retirement of tangible long-lived assets and a corresponding increase in the carrying amount of the related asset in the period in which the obligation is incurred. In periods subsequent to initial measurement, the Company recognizes changes in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate. Over time, the liability is accreted to its present value and the capitalized cost is depreciated over the estimated useful life of the asset. The Company’s obligations relate primarily to certain legal obligations to remediate leased property on which certain assets are located. Warranty Expense The Company warranties its products against certain defects and the terms range from one Debt Issuance Costs Debt issuance costs for revolving credit agreements are capitalized and amortized over the term of the underlying agreements on a straight-line basis. Amortization of these debt issuance costs is included in interest expense while the unamortized debt issuance cost balance is included in other current assets or other assets. Debt issuance costs for the Company’s term loans are recorded as a reduction to the carrying amount and are amortized over their terms using the effective interest method. Amortization of these debt issuance costs is included in interest expense. Stock-Based Compensation The Company classifies stock-based awards granted in exchange for services as either equity awards or liability awards. The classification of an award as either an equity award or a liability award is generally based upon cash settlement options. Equity awards are measured based on the fair value of the award at the grant date. Liability awards are re-measured to fair value each reporting period. Each reporting period, the Company recognizes the change in fair value of awards issued to non-employees as expense. The Company recognizes stock-based compensation on a straight-line basis over the award’s requisite service period, which is generally the vesting period of the award, less actual forfeitures. No compensation expense is recognized for awards for which participants do not render the requisite services. For equity and liability awards earned based on performance or upon occurrence of a contingent event, when and if the awards will be earned is estimated. If an award is not considered probable of being earned, no amount of stock-based compensation is recognized. If the award is deemed probable of being earned, related compensation expense is recorded over the estimated service period. To the extent the estimate of awards considered probable of being earned changes, the amount of stock-based compensation recognized will also change. Concentration of Credit Risk The Company sells products to customers in a wide variety of industries on a worldwide basis. In countries or industries where the Company is exposed to material credit risk, the Company may require collateral, including cash deposits and letters of credit, prior to the completion of a transaction. The Company does not believe it has significant credit risk beyond that provided for in the consolidated financial statements in the ordinary course of business. During the fiscal years ended March 31, 2021, 2020 and 2019 no customers represented 10% or more of the Company’s total revenue. Two customers comprised approximately 22% of accounts receivable as of March 31, 2021. No customers comprised more than 10% of accounts receivable as of March 31, 2020. One customer comprised approximately 21% of accounts receivable as of March 31, 2019. If the Company is unable to obtain adequate quantities of the inventory needed to sell its products, the Company could face costs increases or delays or discontinuations in product shipments, which could have a material adverse effect on the Company’s results of operations. In many cases, the Company’s chosen vendor may be the sole source of supply for the products or parts they manufacture, or services they provide, for the Company. Some of the products the Company purchases from these sources are proprietary or complex in nature, and therefore cannot be readily or easily replaced by alternative sources. Segment Reporting Business segments are defined as components of an enterprise about which discrete financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. Based on the way the Company manages its business, the Company has determined that it currently operates with one reportable segment. The chief operating decision maker focuses on consolidated results in assessing operating performance and allocating resources. Furthermore, the Company offers similar products and services and uses similar processes to sell those products and services to similar classes of customers. The Company’s chief operating decision-maker is its Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. There are no segment managers who are held accountable by the chief operating decision-maker, or anyone else, for operations, operating results, and planning for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single reportable segment and operating segment structure. Based on how the Company manages its business, the Company has determined that it currently operates in one reportable segment. The Company operates in three geographic regions: (a) Americas; (b) Europe, Middle East, and Africa (“EMEA”); and (c) Asia Pacific (“APAC”). The following table summarizes property and equipment, net by geographic region (in thousands): For the year ended March 31, 2021 2020 United States $ 9,787 $ 8,488 International 264 558 Total $ 10,051 $ 9,046 Defined Contribution Plan The Company sponsors a qualified 401(k) retirement plan for its U.S employees. The plan covers substantially all employees who have attained the age of 18. Participants may voluntarily contribute to the plan up to the maximum limits established by Internal Revenue Service regulations. For the year ended March 31, 2021, the Company incurred $1.2 million in matching contributions. No matching contributions were made in the fiscal years ended March 31, 2020 and 2019. Recently Adopted Accounting Pronouncements The Company adopted the guidance in ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses of Financial Instruments ("CECL") on April 1, 2020. The ASU requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses over the lifetime of the asset rather than incurred losses. The adoption of ASU 2016-13 did not have a material impact on the condensed consolidated financial statements. The Company adopted the guidance in ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract on April 1, 2020. The ASU requires implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises as authoritative guidance for internal-use software and deferred over the noncancelable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The adoption of ASU 2018-15 did not have a material impact on the condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity, and modifies the guidance on diluted earnings per share (EPS) calculations as a result of these changes. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, begi |
REVENUE
REVENUE | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE In the following table, revenue is disaggregated by major product offering and geographies (in thousands): Year Ended March 31, 2021 2020 2019 1 Americas 2 Primary storage systems $ 52,295 $ 54,211 $ 33,789 Secondary storage systems 41,948 57,192 72,696 Device and media 24,410 31,228 34,079 Service 76,039 82,607 87,040 Total revenue 194,692 225,238 227,604 EMEA Primary storage systems 12,940 16,078 18,902 Secondary storage systems 33,688 40,008 40,666 Device and media 20,881 25,484 19,064 Service 41,261 39,467 37,216 Total revenue 108,770 121,037 115,848 APAC Primary storage systems 4,409 6,863 6,120 Secondary storage systems 13,364 14,472 13,166 Device and media 5,873 5,632 6,172 Service 7,604 8,976 10,440 Total revenue 31,250 35,943 35,898 Consolidated Primary storage systems 69,644 77,152 58,811 Secondary storage systems 89,000 111,672 126,528 Device and media 51,164 62,344 59,315 Service 124,904 131,050 134,696 Royalty 3 14,864 20,731 23,330 Total revenue $ 349,576 $ 402,949 $ 402,680 1 Primary and Secondary storage system revenue has been adjusted for fiscal year 2019 due to certain reclassifications from Primary to Secondary storage systems. 2 Revenue for Americas geographic region outside of the United States is not significant. 3 Royalty revenue is not allocable to geographic regions. Contract Balances The following table presents the Company’s contract liabilities and certain information related to this balance as of March 31, 2021 (in thousands): March 31, 2021 Deferred revenue $ 120,153 Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 79,921 Remaining Performance Obligations Remaining performance obligations consisted of the following (in thousands): Current Non-Current Total As of March 31, 2021 $ 102,468 $ 38,771 $ 141,239 The Company expects to recognize approximately 72.5% of the remaining performance obligations within the next 12 months. The majority of the Company’s noncurrent remaining performance obligations is expected to be recognized in the next 13 to 60 months. |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | BUSINESS ACQUISITION On December 12, 2020, the Company entered into a Stock Purchase Agreement to acquire all of the issued and outstanding shares of Square Box Systems Limited (“SBS”). The purchase price of approximately $7.7 million was comprised of (a) $2.6 million cash (net of cash acquired); (b) approximately 0.4 million shares of the Company’s common stock, with a fair value of $2.1 million; (c) $2.0 million cash payable at the first anniversary of the Closing date; and (d) $1.0 million cash payable at the second anniversary of the Closing Date. Contingently issuable restricted stock units in the amount of $5.3 million, which is subject to continuous employment, are being recognized as stock-based compensation over the related two years vesting period. The purchase price was allocated to tangible assets of approximately $0.8 million, intangible assets of approximately $5.6 million based on their fair values on the acquisition date, liabilities of approximately $1.0 million, and a net deferred tax liability of $1.1 million. The excess of the purchase price over the amounts allocated to assets acquired and liabilities assumed was approximately $3.4 million, which has been recorded as goodwill. The historical results of operations for SBS were not significant to the Company's consolidated results of operations for the periods presented. The following table summarizes intangible assets related to the SBS acquisition as of March 31, 2021: Intangible assets, net March 31, 2021 Gross Carrying Value Accumulated Amortization Net Carrying Amount Developed technology $ 4,700 $ (473) $ 4,227 Customer lists 900 (90) 810 Intangible assets, net $ 5,600 $ (563) $ 5,037 There was no intangible amortization expense for fiscal years 2020 and 2019. At the end of fiscal 2021, the weighted-average remaining amortization period was 2.7 years for developed technology and customer lists. The Company recorded amortization of developed technology in cost of product revenue, and customer lists in sales and marketing expenses in the consolidated statements of operations. As of March 31, 2021, the future expected amortization expense for intangible assets is as follows (in thousands): Fiscal year ending Estimated future amortization expense 2022 1,867 2023 1,867 2024 1,303 2025 — Thereafter — Total $ 5,037 Goodwill Amount Balance at March 31, 2020 $ — Goodwill acquired 3,466 Balance at March 31, 2021 $ 3,466 |
BALANCE SHEET INFORMATION
BALANCE SHEET INFORMATION | 12 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
BALANCE SHEET INFORMATION | BALANCE SHEET INFORMATION Certain significant amounts included in the Company's consolidated balance sheets consist of the following (in thousands): Manufacturing inventories March 31, 2021 2020 Finished goods Manufactured finished goods $ 12,452 $ 15,790 Distributor inventory 238 504 Total finished goods 12,690 16,294 Work in progress 2,074 1,001 Raw materials 9,703 11,901 Total manufacturing inventories $ 24,467 $ 29,196 Service inventories March 31, 2021 2020 Finished goods $ 18,773 $ 15,845 Component parts 4,648 4,657 Total service inventories $ 23,421 $ 20,502 Property and equipment, net March 31, 2021 2020 Machinery and equipment $ 38,027 $ 33,804 Leasehold improvements 7,080 6,733 Furniture and fixtures 847 1,862 Software 300 — 46,254 42,399 Less: accumulated depreciation (36,203) (33,353) Total property, plant and equipment, net $ 10,051 $ 9,046 Depreciation and amortization expense for property and equipment amounted to $5.7 million, $4.3 million, and $4.3 million for the years ended March 31, 2021, 2020, and 2019, respectively. Other accrued liabilities March 31, 2021 2020 Accrued expenses $ 6,799 $ 3,338 Asset retirement obligation 2,906 1,655 Accrued warranty 2,383 2,668 Accrued interest 57 3,192 Other 6,029 6,682 Total other accrued liabilities $ 18,174 $ 17,535 The following table details the change in the accrued warranty balance (in thousands): Year Ended March 31, 2021 2020 2019 Balance as of April 1 $ 2,668 $ 3,456 2,422 Current period accruals 4,699 3,516 5,766 Adjustments to prior estimates (472) (114) 326 Charges incurred (4,512) (4,190) (5,058) Balance as of March 31 $ 2,383 $ 2,668 $ 3,456 |
DEBT
DEBT | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes the Company's borrowing as of the dates presented (in thousands): Year Ended March 31, 2021 2020 Senior Secured Term Loan $ 92,426 $ 165,208 Amended PNC Credit Facility — 2,620 Paycheck Protection Program 10,000 — Less: current portion (1,850) (7,321) Less unamortized debt issuance costs (1) (9,686) (13,660) Long-term debt, net $ 90,890 $ 146,847 (1) The unamortized debt issuance costs related to the Senior Secured Term Loan are presented as a reduction of the carrying amount of the corresponding debt balance on the accompanying consolidated balance sheets. Unamortized debt issuance costs related to the PNC Credit Facility are presented within other assets on the accompanying consolidated balance sheets. TCW Term Loan and PNC Credit Facility On October 21, 2016 (the “Closing Date”), the Company entered into a term loan and security agreement (the “TCW Term Loan”) with TCW Asset Management Company LLC (“TCW”) and a revolving credit and security agreement (the “PNC Credit Facility” and together with the TCW Term Loan, the “Credit Agreements”) with PNC Bank, National Association (“PNC”). In August 2018, the Company amended the Credit Agreements issued TCW warrants to purchase 1,099,533 of the Company’s common stock at an exercise price of $2.11 per share. To the extent that the Company did not repay the entire TCW Term Loan by September 30, 2018, October 31, 2018, November 30, 2018 and December 31, 2018, then on each such date the Company was required to issue additional warrants to purchase 3% of the then outstanding common stock of the Company with an exercise price equal to the closing price of the Company’s common stock on the business day immediately prior to the date of issuance of the warrants. A total of 4,398,132 warrants to purchase the Company’s common stock were issued related to the amendment (the “August 2018 Amendment Warrants”) with warrants to purchase 1,099,533 shares issued on each of September 30, 2018, October 31, 2018 and November 30, 2018 with exercise prices of $2.40 per share, $2.39 per share and $2.40 per share, respectively. The August 2018 Amendment Warrants were not exercisable until February 1, 2019, on which date, the exercise price of each of the warrants that were issued was reset to the lower of: (a) the applicable existing exercise price for such warrant or (b) the lowest of the 5-day volume-weighted average closing prices of the Company’s common stock for the last five trading days in the months of September 2018, October 2018, November 2018, December 2018 and January 2019. The exercise price for all of the August 2018 Amendment Warrants was adjusted to $1.62 per share on February 1, 2019. Due to the exercise price reset provision in the August 2018 Amendment Warrants, the Company initially recorded the value of the warrants as a liability with changes in fair value recorded as other income (expense) in the accompanying consolidated statements of operations. The Company reclassified the fair value of the warrants of $5.6 million to additional paid in capital on February 1, 2019, the exercise price reset date. A loss of approximately $0.4 million was recorded to other income (expense) during fiscal year 2019 before the reclassification to equity. The August 2018 Amendment provided a repurchase right allowing the Company to repurchase 50% of the August 2018 Amendment Warrants issued within 30 days of repayment of amounts due under the TCW Term Loan for $0.001 per warrant. The Company repaid the TCW Term Loan on December 27, 2018 and repurchased 549,766 warrants for $550 which resulted in a reduction in the fair value of the August 2018 Amendment Warrants liability of $0.4 million which was recorded as other income (expense) in the accompanying consolidated statements of operations and comprehensive income. On November 18, 2019, the 3.8 million outstanding August 2018 Amendment Warrants were exercised on a cashless basis, resulting in the issuance of 2.8 million shares of common stock. The Company accounted for the August 2018 Amendment related to the TCW Term Loan as a debt extinguishment. Accordingly, a $14.9 million loss on debt extinguishment was recorded during the year ended March 31, 2019 related primarily to fees paid to TCW (including $5.7 million related to the value of the August 2018 Amendment Warrants). The Company also accounted for the August 2018 Amendment related to the PNC Credit Facility as a debt extinguishment and recorded a loss on debt extinguishment of approximately $1.8 million related to a portion of the unamortized debt issuance costs. The Company paid PNC an amendment fee of $1.7 million which was included into other current assets and amortized to interest expense over the original term of the PNC Credit Facility. Senior Secured Term Loan and Amended PNC Credit Facility On December 27, 2018 (the “Closing Date”), the Company entered into a senior secured term loan of $150.0 million with U.S. Bank, National Association (“U.S. Bank”), drawn on the Closing Date, and a senior secured delayed draw term loan of $15.0 million (collectively, “the Senior Secured Term Loan”) which was drawn in January 2019. In connection with the Senior Secured Term Loan, the Company amended its existing PNC Credit Facility providing for borrowings up to a maximum principal amount of the lesser of: (a) $45.0 million or (b) the amount of the borrowing base, as defined in the PNC Credit Facility agreement. Borrowings under the Senior Secured Term Loan and Amended PNC Credit Facility (collectively, the “December 2018 Credit Agreements”) mature on December 27, 2023. A portion of the proceeds from the Senior Secured Term Loan was used to repay all outstanding borrowings under the TCW Term Loan. The Company recorded a loss on debt extinguishment of $0.8 million related to repayment of the TCW Term Loan including unamortized debt issuance costs of $0.1 million and costs paid to TCW of $0.7 million. The Company accounted for the Amended PNC Credit Facility as a modification. The Company incurred $1.4 million in costs related to the amendment which was recorded to other assets and is being recognized as interest expense over the term of the Amended PNC Credit Facility. Borrowings under the Senior Secured Term Loan bear interest at a rate per annum, at the Company’s option, equal to (a) the greater of (i) 3.00%, (ii) the Federal funds rate plus 0.50%, (iii) the LIBOR Rate based upon an interest period of 1 month plus 1.0%, and (iv) the Prime Rate as quoted by the Wall Street Journal, plus an applicable margin of 9.00% or (b) LIBOR Rate plus an applicable margin of 10.00%. Interest on the Senior Secured Term Loan is payable quarterly. Principal payments of 0.25% of the original balance of the Senior Secured Term Loan are due quarterly with the remaining principal balance due at maturity. Additionally, on an annual basis the Company is required to perform a calculation of excess cash flow, as defined in the Senior Secured Term Loan agreement, which may require an additional payment of the principal in certain circumstances (the "ECF Payment"). Borrowings under the Amended PNC Credit Facility bear interest, at the Company’s option, equal to, (a) the greater of (i) the base rate, as defined in the PNC Credit Facility, (ii) the daily Overnight Bank Funding Rate plus 0.5% and (iii) the daily LIBOR rate plus 1.0%, plus an applicable margin of (a) 4.50% for the period from the Amendment Date until the date quarterly financial statements are delivered to PNC for the fiscal quarter ending June 30, 2021 and (b) thereafter, ranging from 3.50% to 4.50% based on the Company’s applicable Total Leverage Ratio, as defined, or (b) the LIBOR Rate plus an applicable margin of (a) 5.00% for the period from the Amendment Date until the date quarterly financial statements are delivered to PNC for the fiscal quarter ending June 30, 2021 and (b) thereafter, ranging from 4.50% to 5.00% based on the Company’s applicable total leverage ratio, as defined in the Amended PNC Credit Facility agreement. Interest on the Amended PNC Credit Facility is payable quarterly. In connection with the Senior Secured Term Loan agreement, the Company issued warrants to purchase 7,110,616 shares of the Company’s common stock, at an exercise price of $1.33 per share (the “2018 Term Loan Warrants”). The exercise price and the number of shares underlying the 2018 Term Loan Warrants are subject to adjustment in the event of specified events, including dilutive issuances of common stock linked equity instruments at a price lower than the exercise price of the warrants (“Down Round Feature”), a subdivision or combination of the Company’s common stock, a reclassification of the Company’s common stock or specified dividend payments. The 2018 Term Loan Warrants are exercisable until December 27, 2028. Upon exercise, the aggregate exercise price may be paid, at each warrant holder’s election, in cash or on a net issuance basis, based upon the fair market value of the Company’s common stock at the time of exercise. In accordance with ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features; (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”), the presence of the Down Round Feature does not preclude the Term Loan Warrants from being classified in stockholders’ deficit. Accordingly, the Company determined that the fair value of the warrants of $8.8 million should be classified within stockholders’ deficit upon issuance. The Company incurred $18.3 million in costs related to the Senior Secured Term Loan (including $8.8 million related to the value of the Term Loan Warrants). These debt issuance costs are reflected as a reduction of the carrying amount of the Senior Secured Term Loan and are being recognized as interest expense over the term of the Senior Secured Term Loan. The December 2018 Credit Agreements contain certain covenants, including requirements to prepay the loans in an amount equal to 100% of the net cash proceeds from certain assets dispositions, subject to certain reinvestment rights and other exceptions and equity issuances. Amounts outstanding under the December 2018 Credit Agreements may become due and payable upon the occurrence of specified events, which among other things include (subject to certain exceptions and cure periods) (i) failure to pay principal, interest, or any fees when due, (ii) breach of any representation or warranty, covenant, or other agreement, (iii) the occurrence of a bankruptcy or insolvency proceeding with respect to the Company or any of its subsidiaries, (iv) any event of default with respect to other indebtedness involving an aggregate amount of $1.0 million or more, (v) any lien created by the December 2018 Credit Agreements or any related security documents ceasing to be valid and perfected; (vi) the December 2018 Credit Agreements or any related security documents or guarantees ceasing to be legal, valid, and binding upon the parties thereto; or a change of control shall occur. The December 2018 Credit Agreements contain financial covenants relating to a fixed charge coverage ratio, total net leverage ratio, minimum EBITDA, and minimum liquidity. The Amended PNC Credit Facility also includes a total leverage ratio covenant. As of March 31, 2021, the Company was in compliance with all covenants. The Senior Secured Term Loan contains a prepayment penalty which is calculated based on (i) if prepayment occurs prior to 30-month anniversary of the Closing Date, the prepayment penalty is the present value of all required interest payments due on the Senior Secured Term Loan that are prepaid from the date of prepayment through and including the 30-month anniversary of the Closing Date calculated based on the 3 month LIBOR Rate plus 10%, plus 5.0% of the amount of principal prepaid, (ii) if prepayment occurs between the 30-month anniversary of Closing Date through the third anniversary of the Closing Date, the prepayment penalty is 5.0% of the principal prepaid and (iii) if prepayment occurs between the third anniversary of the Closing Date through the fourth anniversary of Closing Date, the prepayment penalty is 2.0% of the principal prepaid (the “Prepayment Penalty”). There is no Prepayment Penalty after the fourth anniversary of the Closing Date. In the event of a change in control, as defined in the Senior Secured Term Loan agreement, the Company is required to make a change in control premium payment equal to the greater of the Prepayment Penalty or 1.0% of the principal amount being repaid. The Company is permitted to prepay up to 50% of the aggregate principal amount of the outstanding Senior Secured Term Loan balance with cash proceeds of a public offering of the Company’s common stock at a prepayment premium of 5% of the principal amount being repaid (the "Equity Clawback"). In addition to the Prepayment Penalty, the Company is required to pay an exit fee of 2% of the aggregate principal amount repaid excluding amounts repaid that are subject to the Equity Clawback. On March 30, 2020, March 31, 2020 and April 3, 2020, the Company entered into amendments to the December 2018 Credit Agreements which, among other things, included (a) payment deferral of the scheduled amortization payment of $0.4 million due on April 1, 2020 to June 30, 2020; payment of $1.9 million of the interest due on April 1, 2020 in-kind rather than in cash, and (b) the waiver of compliance with the total net leverage ratio covenant, as defined in the Senior Secured Term Loan agreement, for the quarter ended March 31, 2020. On June 16, 2020, the Company entered into an amendment to the December 2018 Credit Agreements (the "June 2020 Amendment" and collectively with the March 30, 2020, March 31, 2020 and April 3, 2020 amendment, (the “2020 Amendments”). The June 2020 Amendment provided an additional borrowing of $20.0 million which was immediately drawn in full. The amendment also (a) waived the ECF Payment of $5.3 million for the year ended March 31, 2020; (b) deferred payment of the scheduled amortization payments due on June 30, 2020, September 30, 2020, and December 31, 2020 until the maturity date; (c) amended the definition of “EBITDA” to, among other things, add an add-back for certain costs, expenses and fees incurred in connection with the transactions contemplated by the amendment; (d) waived compliance with the total net leverage ratio, fixed charge coverage ratio, minimum liquidity and minimum EBITDA financial covenants for the quarters ending on June 30, 2020, September 30, 2020, December 31, 2020, and March 31, 2021; (e) added a financial covenant that requires a minimum monthly average undrawn availability of $7.0 million under the Amended PNC Credit Facility during the period from June 30, 2020 through and including May 31, 2021; and (f) amended the covenant levels for the total net leverage ratio, fixed charge coverage ratio, and minimum EBITDA financial covenants, commencing with the quarter ending June 30, 2021. In connection with the June 2020 Amendment, the Company issued to the lenders warrants (the “2020 Term Loan Warrants”) to purchase 3,400,000 shares of the Company’s common stock, at an exercise price of $3.00 per share. The exercise price and the number of shares underlying the 2020 Term Loan Warrants are subject to adjustment in the event of specified events, including dilutive issuances of common stock linked equity instruments at a price lower than the exercise price of the warrants, a subdivision or combination of the Company’s common stock, a reclassification of the Company’s common stock or specified dividend payments. The 2020 Term Loan Warrants are exercisable until June 16, 2030. Upon exercise, the aggregate exercise price may be paid, at each warrant holder’s election, in cash or on a net issuance basis, based upon the fair market value of the Company’s common stock at the time of exercise. The 2020 Amendments related to the Senior Secured Term Loan were accounted for as modifications. In connection with the modifications, the Company incurred $11.9 million in costs including $11.3 million related to the value of the 2020 Term Loan Warrants and $0.6 million in fees paid to the lenders. These debt issuance costs are reflected as a reduction to the carrying amount of the Senior Secured Term Loan and are amortized to interest expense over the remaining loan term. The 2020 Amendments related to the Amended PNC Credit Facility were accounted for as modifications. Fees paid to PNC of approximately $0.5 million were recorded to other assets and are amortized to interest expense over the remaining term of the agreement. Approximately $0.8 million in third party costs were expensed related to the 2020 Amendments. As of March 31, 2021, the interest rates on the Senior Secured Term Loan and the Amended PNC Credit Facility were 12.0% and 7.75%, respectively, and the Amended PNC Credit Facility had a borrowing base of $32.7 million, all of which was available at that date. The Company is required to maintain a $5.0 million restricted cash reserve as part of the Amended PNC Credit Facility, which is presented as long-term restricted cash within the accompanying consolidated balance sheet as of March 31, 2021 S enior Secured Term Debt Prepayment On February 11, 2021 (the “Prepayment Date”), the Company prepaid $92.3 million of its outstanding Senior Secured Term Loan utilizing the proceeds of the secondary public offering discussed in Note 8: Common Stock . The Company utilized the Equity Clawback which allowed prepayment of up to 50% of the aggregate principal amount of the outstanding Senior Secured Term Loan with net cash proceeds from a public equity offering at a prepayment penalty of 5%. The Company recognized a loss on debt extinguishment of $14.8 million which included the write-off of debt issuance costs of $10.1 million, a prepayment penalty of $4.6 million and other costs of $0.1 million. Registration Rights Agreement In connection with the June 2020 Term Loan Amendment, the Company entered into an amended and restated registration rights agreement (the “Amended Registration Rights Agreement”) with the holders of the warrants previously issued to the Senior Secured Term Loan lenders in December 2018 and the 2020 Term Loan Warrants (collectively, the “Term Loan Warrants”). The Amended Registration Rights Agreement grants the holders of the Term Loan Warrants certain registration rights for the shares of common stock issuable upon the exercise of the applicable Term Loan Warrants, including (a) the ability of a holder to request that the Company file a Form S-1 registration statement with respect to at least 40% of the registrable securities held by such holder as of the issuance date of the applicable Term Loan Warrants; (b) the ability of a holder to request that the Company file a Form S-3 registration statement with respect to outstanding registrable securities if at any time the Company is eligible to use a Form S-3 registration statement; and (c) certain piggyback registration rights related to potential future equity offerings of the Company, subject to certain limitations. Paycheck Protection Program Loan On April 13, 2020, the Company entered into a Paycheck Protection Program (“PPP”) Term Loan (“PPP Loan”) effective April 11, 2020 with PNC in an aggregate principal amount of $10.0 million pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The PPP Loan bears interest at a fixed rate of 1% per annum. The PPP Loan has an initial term of two years and is unsecured and guaranteed by the Small Business Administration. The Company used the proceeds from the PPP Loan for qualifying expenses as defined in the PPP Loan and has applied for forgiveness of the PPP Loan in accordance with the terms of the CARES Act. However, the Company cannot assure at this time that the PPP Loan will be forgiven partially or in full. To the extent that all or a portion of the PPP Loan is not forgiven, payment of the outstanding balance will be required on April 11, 2022. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Supplemental balance sheet information related to leases is as follows (in thousands): Operating leases March 31, 2021 March 31, 2020 Operating lease right-of-use assets $ 9,383 $ 12,689 Other current liabilities $ 2,581 $ 3,065 Operating lease liability 8,005 10,822 Total operating lease liabilities $ 10,586 $ 13,887 The components of lease expense were as follows (in thousands): Year Ended March 31, Lease expense 2021 2020 Operating lease expense $ 4,718 $ 4,901 Variable lease expense 820 277 Short-term lease expense 132 102 Total lease expense $ 5,670 $ 5,280 Maturity of Lease Liabilities Operating Leases 2022 $ 3,818 2023 2,766 2024 2,602 2025 2,310 2026 1,910 Thereafter 1,002 Total lease payments $ 14,408 Less: Imputed interest (3,822) Present value of lease liabilities $ 10,586 Lease Term and Discount Rate March 31, 2021 2020 Weighted average remaining operating lease term (years) 4.53 4.99 Weighted average discount rate for operating leases 13.96 % 13.91 % Operating cash outflows related to operating leases totaled $4.9 million and $4.5 million for the fiscal years ended March 31, 2021 and March 31, 2020, respectively. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES During fiscal years 2021, 2020 and 2019, the Company approved certain restructuring plans to improve operational efficiencies and rationalize its cost structure. The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands): Severance and Facilities Total Balance as of March 31, 2018 $ 1,430 $ 4,389 $ 5,819 Restructuring costs 4,708 862 5,570 Cash payments (6,138) (2,375) (8,513) Balance as of March 31, 2019 — 2,876 2,876 Adjustments of prior estimates — 1,022 1,022 Cash payments — (3,961) (3,961) Other non-cash — 63 63 Balance as of March 31, 2020 — — — Restructuring costs 3,701 — 3,701 Cash payments (3,121) — (3,121) Balance as of March 31, 2021 $ 580 $ — $ 580 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
COMMON STOCK | COMMON STOCK Secondary Public Offering On February 8, 2021, the Company closed a secondary public offering of 15,109,489 shares of its common stock for gross proceeds of $103.5 million. The Company received net proceeds of $96.8 million after deducting underwriters' discounts and other offering related expenses. Amended and Restated 2012 Long-Term Incentive Plan The Company has a stockholder-approved 2012 Long-Term Incentive Plan (the “Plan”) which has 5.2 million shares authorized for issuance of new shares at March 31, 2021. There were 4.4 million performance shares and restricted shares outstanding, and 0.8 million shares available for future issuance under the Plan as of March 31, 2021. Stock options under the Plan are granted at prices determined by the Board of Directors, but at not less than the fair market value of the Company's common stock on the date of grant. The majority of performance share units, restricted stock units and stock options granted to employees vest over three each stock option under the Plan will not exceed seven years. Stock options, performance share units and restricted stock units granted under the Plan are subject to forfeiture if employment terminates. The Company accounts for all forfeitures of stock-based awards when they occur. 2021 Inducement Plan The Company's 2021 Inducement Plan became effective on February 1, 2021 and provides for issuance of inducement equity awards to individuals who were not previously an employee or non-employee director of the Company as an inducement material to such individual's entering into employment with the Company. The number of shares of common stock reserved for issuance under the 2021 Inducement Plan was 0.8 million. The term of each stock option and restricted stock unit under the plan will not exceed seven years, and each award generally vests between two The Company have reserved shares of common stock for future issuance under its 2021 Inducement Plan as follows (in thousands): March 31, 2021 Shares available for issuance at beginning of period — Shares authorized during the period 770 Shares issued during the period (520) Total shares available for future issuance at end of period 250 Employee Stock Purchase Plan The Company's Employee Stock Purchase Plan (the "ESPP") has 9.7 million shares authorized at March 31, 2021. The plan enables eligible employees to purchase shares of its common stock at a discount. Purchases will be accomplished through participation in discrete offering periods. On each purchase date, eligible employees will purchase the Company's common stock at a price per share equal to 85% of the lesser of (i) the fair market value of the Company's common stock on the first trading day of the offering period, and (ii) the fair market value of the Company's common stock on the purchase date. The Company has reserved shares of common stock for future issuance under its ESPP as follows (in thousands): March 31, 2021 2020 Shares available for issuance at beginning of period 1,397 497 Additional shares authorized during the period — 900 Shares issued during the period (320) — Total shares available for future issuance at end of period 1,077 1,397 The Company uses the Black-Scholes-Merton option-pricing model (“Black-Scholes”) to determine the fair value for stock options, shares forecasted to be issued pursuant to its ESPP, and warrants. This requires the use of assumptions about expected life, stock price, volatility, risk-free interest rates and expected dividends. Expected Life —The expected term was based on historical experience with similar awards, giving consideration to the contractual terms, exercise patterns and post-vesting forfeitures. Volatility —The expected stock price volatility for the Company's common stock was based on the historical volatility of its common stock over the most recent period corresponding with the estimated expected life of the award. Risk-Free Rate —The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the options for each option group. Dividend Yield —The Company has never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, an expected dividend yield of zero was used. The weighted-average grant date fair value and the assumptions used in calculating fair values of shares forecasted to be issued pursuant to the Company's ESPP are as follows: Year Ended March 31, 2021 2020 2019 Expected life 0.5 years 0.5 years n/a Volatility 55% - 133% 49.81% n/a Risk-free interest rate 0.05% - 0.11% 0.41% n/a Dividend yield —% —% n/a Fair value of common stock $4.99 - $8.05 $4.78 n/a Performance Stock Units The Company granted 0.9 million, 1.5 million and 0.7 million of performance share units with market conditions (“Market PSUs”) in fiscal 2021, 2020, and 2019, respectively. Market PSUs vest one Assumptions used in the Monte Carlo model to calculate fair values of market PSU’s during each fiscal period are as follows: Weighted-Average 2021 2020 2019 Discount period (years) 2.54 3.00 1.95 Risk-free interest rate 0.31% 1.45% 2.63% Stock price volatility 82.00% 72.00% 69.35% Grant date fair value $3.77 $5.92 $1.70 The Company granted 0.5 million, 0.3 million and 0.0 million of performance share units with financial performance conditions (“Performance PSUs”) in the fiscal years ended March 31, 2021, 2020 and 2019, respectively. Performance PSUs become eligible for vesting based on the Company achieving certain financial performance targets through the end of the fiscal year when the performance PSUs were granted, and are contingent upon continued service of the holder of the award during the vesting period. Performance PSUs are valued at the market closing share price on the date of grant and compensation expense for Performance PSUs is recognized when it is probable that the performance conditions will be achieved. Compensation expense recognized related to Performance PSUs is reversed if the Company determines that it is no longer probable that the performance conditions will be achieved. The following table summarizes activity for Market PSUs and Performance PSUs for the year ended March 31, 2021 (shares in thousands) : Shares Weighted-Average Outstanding as of March 31, 2020 1,944 $ 4.09 Granted 1,346 $ 3.67 Vested (745) $ 3.94 Forfeited or cancelled (190) $ 4.66 Outstanding as of March 31, 2021 2,355 $ 3.85 As of March 31, 2021 , there was $4.1 million and $1.8 million of unrecognized stock-based compensation related to Market PSUs and Performance PSUs, respectively, which is expected to be recognized over a weighted-average period of one year. The total fair value of shares vested during fiscal years ended March 31, 2021 , 2020, and 2019 was $2.9 million, $0.6 million, and $0.1 million, respectively. Restricted Stock Units The Company granted 2.4 million, 0.6 million, and 1.0 million of service-based restricted stock units (“RSUs”) in the fiscal years ended March 31, 2021, 2020 and 2019, respectively, which generally vest ratably over a three-year service period. RSUs are valued at the market closing share price on the date of grant and compensation expense for RSUs is recognized ratably over the applicable vesting period. The following table summarizes activity for restricted stock units for the year ended March 31, 2021 (shares in thousands) : Shares Weighted-Average Outstanding as of March 31, 2020 986 $ 3.42 Granted 2,440 $ 4.41 Vested (518) $ 3.99 Forfeited or cancelled (198) $ 3.78 Outstanding as of March 31, 2021 2,710 $ 4.17 As of March 31, 2021 , there was $11.7 million of total unrecognized stock-based compensation related to RSUs, which is expected to be recognized over a weighted-average period of two years. The total fair value of RSUs vested during fiscal years ended March 31, 2021, 2020, and 2019 was $2.1 million, $4.0 million, and $5.1 million, respectively. Compensation Expense The following table details the Company's stock-based compensation expense, net of forfeitures (in thousands): Year Ended March 31, 2021 2020 2019 Cost of revenue $ 672 $ 452 $ 334 Research and development 2,881 984 440 Sales and marketing 1,757 1,165 179 General and administrative 4,314 4,147 2,456 Total share-based compensation $ 9,624 $ 6,748 $ 3,409 Year Ended March 31, 2021 2020 2019 Restricted stock units $ 4,041 $ 3,610 $ 3,178 Performance share units 4,904 3,103 231 Employee stock purchase plan 679 35 — Total stock-based compensation $ 9,624 $ 6,748 $ 3,409 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE Equity Instruments Outstanding The Company has stock options, performance share units, restricted stock units and options to purchase shares under its ESPP, granted under various stock incentive plans that, upon exercise and vesting, respectively, would increase shares outstanding. The Company has also issued warrants to purchase shares of the Company’s stock. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per-share data): Year Ended March 31, 2021 2020 2019 Numerator: Net loss $ (35,459) $ (5,210) $ (42,797) Denominator: Weighted average shares - basic and diluted 42,852 37,593 35,551 Net loss per share - basic and diluted $ (0.83) $ (0.14) $ (1.20) The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stock for the periods presented because their effect would have been anti-dilutive (in thousands): Year Ended March 31, 2021 2020 2019 Stock awards 1,818 931 307 Warrants 6,573 6,312 4,657 ESPP 11 223 — Total 8,402 7,466 4,964 The dilutive impact related to common shares from stock incentive plans and outstanding warrants is determined by applying the treasury stock method to the assumed vesting of outstanding performance share units and restricted stock units and the exercise of outstanding options and warrants. The dilutive impact related to common shares from contingently issuable performance share units is determined by applying a two-step approach using both the contingently issuable share guidance and the treasury stock method. The Company has outstanding market based restricted stock units as of March 31, 2021 that were eligible to vest into shares of common stock subject to the achievement of certain stock price targets in addition to a time-based vesting period. These contingently issuable shares are excluded from the computation of diluted earnings per share if, based on current period results, the shares would not be issuable if the end of the reporting period were the end of the contingency period. There were 0.5 million shares of contingently issuable market-based restricted stock units that were excluded from the table above as the market conditions were not satisfied as of March 31, 2021. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Pre-tax loss reflected in the consolidated statements of operations for the years ended March 31, 2021, 2020 and 2019 is as follows (in thousands): Year Ended March 31, 2021 2020 2019 U.S. $ (36,648) $ (6,318) $ (40,935) Foreign 1,428 1,911 514 Total $ (35,220) $ (4,407) $ (40,421) Income tax provision consists of the following (in thousands): Year Ended March 31, 2021 2020 2019 Current tax expense Federal $ (76) $ (115) $ (217) State 339 106 31 Foreign 747 1,271 1,103 Total current tax expense 1,010 1,262 917 Deferred tax expense Federal (577) — — State 9 33 32 Foreign (203) (492) 1,427 Total deferred tax expense (benefit) (771) (459) 1,459 Income tax provision $ 239 $ 803 $ 2,376 The income tax provision differs from the amount computed by applying the federal statutory rate of 21% to loss before income taxes as follows (in thousands): For the year ended March 31, 2021 2020 2019 Expiration of attributes $ 9,862 $ 11,679 $ 12,268 Valuation allowance 5,444 (2,639) 10,913 Permanent items 1,295 914 359 Equity compensation 345 280 905 Tax reform — — (207) Credit monetization — — — Foreign taxes (129) 1,612 (2,133) State income taxes (969) (20) (997) Research and development credits (1,829) (1,566) (879) Uncertain tax positions (6,695) (8,654) (9,278) Expense at the federal statutory rate (7396) (925) (8488) Other 311 122 (87) Income tax provision $ 239 $ 803 $ 2,376 Significant components of deferred tax assets and liabilities are as follows (in thousands): As of March 31, 2021 2020 Deferred tax assets Loss carryforwards $ 76,153 $ 85,638 Deferred revenue 21,839 17,043 Tax credits 16,574 17,416 Disallowed interest 12,132 8,958 Other accruals and reserves not currently deductible for tax purposes 8,192 16,339 Capitalized research and development 7,811 — Lease obligations 1,747 3,413 Inventory 1,374 924 Accrued warranty expense 569 650 Acquired intangibles 454 2,660 Gross deferred tax assets 146,845 153,041 Valuation allowance (143,263) (137,814) Total deferred tax assets, net of valuation allowance $ 3,582 $ 15,227 Deferred tax liabilities Depreciation $ (1,440) $ (1,440) Lease assets (1,670) (3,413) Other (1,013) (967) Total deferred tax liabilities $ (4,123) $ (5,820) Net deferred tax assets (liabilities) $ (541) $ 9,407 The valuation allowance increased by $5,449 during the year ended March 31, 2021, decreased by $2,545 during the year ended March 31, 2020, and increased by $10,311 during the year ended March 31, 2019. A reconciliation of the gross unrecognized tax benefits is as follows (in thousands): For the year ended March 31, 2021 2020 2019 Beginning Balance $ 107,282 $ 116,032 $ 150,559 Increase in balances related to tax positions in current period 2,560 2,275 1,718 Increase in balances related to tax positions in prior period — 144 — Increase in balances related to acquisitions 511 — — Decrease in balances related to tax positions in prior period (522) (4) (25,095) Decrease in balances due to lapse in statute of limitations (8,712) (11,165) (11,150) Ending balance $ 101,119 $ 107,282 $ 116,032 During fiscal 2021, excluding interest and penalties, there was a $6.2 million change in the Company's unrecognized tax benefits. Including interest and penalties, the total unrecognized tax benefit at March 31, 2021 was $102.2 million, of which $83.9 million, if recognized, would favorably affect the effective tax rate. At March 31, 2021, accrued interest and penalties totaled $1.2 million. The Company's practice is to recognize interest and penalties related to income tax matters in the income tax provision in the consolidated statements of operations. As of March 31, 2021, $95.5 million of unrecognized tax benefits were recorded as a contra deferred tax asset in other long-term assets in the consolidated balance sheets and $6.7 million (including interest and penalties) were included in other long-term liabilities in the consolidated balance sheets. The Company files its tax returns as prescribed by the laws of the jurisdictions in which it operates. The Company's U.S. tax returns have been audited for years through 2002 by the Internal Revenue Service. In other major jurisdictions, the Company is generally open to examination for the most recent three to five fiscal years. During the next 12 months, it is reasonably possible that approximately $9.1 million of tax benefits, inclusive of interest and penalties, that are currently unrecognized could be recognized as a result of the expiration of applicable statutes of limitations. As of March 31, 2021, the Company had federal net operating loss and tax credit carryforwards of approximately $293.2 million and $59.5 million, respectively. The net operating loss and tax credit carryforwards expire in varying amounts beginning in fiscal year 2022 if not previously utilized, and $12.8 million are indefinite-lived net operating loss carryforwards. These carryforwards include $11.1 million of acquired net operating losses and $8.0 million of acquired credits, the utilization of which is subject to various limitations due to prior changes in ownership. Certain changes in stock ownership could result in a limitation on the amount of both acquired and self-generated net operating loss and tax credit carryovers that can be utilized each year. If the Company has previously undergone, or should it experience in the future, such a change in stock ownership, it could severely limit the usage of these carryover tax attributes against future income, resulting in additional tax charges. Due to its history of net losses and the difficulty in predicting future results, Quantum believes that it cannot rely on projections of future taxable income to realize the deferred tax assets. Accordingly, it has established a full valuation allowance against its U.S. and certain foreign net deferred tax assets. Significant management judgement is required in determining the Company's deferred tax assets and liabilities and valuation allowances for purposes of assessing its ability to realize any future benefit from its net deferred tax assets. The Company intends to maintain this valuation allowance until sufficient positive evidence exists to support the reversal of the valuation allowance. The Company's income tax expense recorded in the future will be reduced to the extent that sufficient positive evidence materializes to support a reversal of, or decrease in, its valuation allowance. The Company recorded an income tax benefit in the fiscal year ended March 31, 2021 of $0.6 million related to foreign currency-related gains recognized in other comprehensive income on U.S. taxes previously imposed on certain income of its foreign subsidiaries. Pursuant to an exception to the incremental method of intraperiod-tax allocation applicable for fiscal years beginning on or before December 15, 2020, tax benefit is recognized on a loss from continuing operations to the extent of income from other comprehensive income. A commensurate amount of tax expense is charged to other comprehensive income for this gain. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments to Purchase Inventory The Company uses contract manufacturers for its manufacturing operations. Under these arrangements, the contract manufacturer procures inventory to manufacture products based upon its forecast of customer demand. The Company has similar arrangements with certain other suppliers. The Company is responsible for the financial impact on the supplier or contract manufacturer of any reduction or product mix shift in the forecast relative to materials that the third party had already purchased under a prior forecast. Such a variance in forecasted demand could require a cash payment for inventory in excess of current customer demand or for costs of excess or obsolete inventory. As of March 31, 2021, the Company had issued non-cancelable commitments for $39.6 million to purchase inventory from its contract manufacturers and suppliers. Legal Proceedings On July 22, 2016, Realtime Data LLC d/b/a IXO (“Realtime Data”) filed a patent infringement lawsuit against the Company in the U.S. District Court for the Eastern District of Texas, alleging infringement of U.S. Patents Nos. 7,161,506, 7,378,992, 7,415,530, 8,643,513, 9,054,728, and 9,116,908. The lawsuit has been transferred to the U.S. District Court for the Northern District of California for further proceedings. Realtime Data asserts that the Company has incorporated Realtime Data’s patented technology into its compression products and services. Realtime Data seeks unspecified monetary damages and other relief that the Court deems appropriate. On July 31, 2017, the District Court stayed proceedings in this litigation pending decision in Inter Partes Review proceedings before the Patent Trial and Appeal Board relating to the Realtime patents. In those proceedings the asserted claims of the ’506 patent, the ’992 patent, and the ’513 patent were found unpatentable. In addition, on July 19, 2019, the United States District Court for the District of Delaware issued a decision finding that all claims of the ’728 patent, the ’530 patent, and the ’908 patent are not eligible for patent protection under 35 U.S.C. § 101 (the “Delaware Action”). On appeal, the Federal Circuit vacated the decision in the Delaware Action and remanded for the Court to “elaborate on its ruling.” The case pending against Quantum in the Northern District of California remains stayed pending the final outcome in the Delaware Action. On May 4, 2021, the Court in the Delaware Action reaffirmed its earlier ruling and granted defendants’ motions to dismiss under Section 101. The Court also granted Realtime Data 14 days to file amended complaints in certain of the Delaware Actions where they sought leave to do so. On May 19, 2021, Realtime Data filed amended complaints including revised bases for claims of infringement of the same patents. Quantum is currently preparing its response to the amended complaints to be filed in the coming weeks. The Company believes the probability that this lawsuit will have a material adverse effect on our business, operating results or financial condition is remote. On July 14, 2020, Starboard Value LP, Starboard Value and Opportunity Master Fund Ltd., Starboard Value and Opportunity S LLC, and Starboard Value and Opportunity C LP (collectively, “Starboard”) filed a lawsuit against Quantum Corporation, Quantum’s former CEO and board member Jon Gacek, and former Quantum board member Paul Auvil in the California Superior Court in Santa Clara County. The complaint alleges that between 2012 and 2014, Starboard purchased a large number of shares of Quantum’s common stock, obtained three seats on Quantum’s board of directors and then, in July 2014, entered into an agreement with Quantum whereby Starboard would not seek control of Quantum’s board but would instead support Quantum’s slate of board nominees so long as Quantum met certain performance objectives by the end of fiscal 2015. The complaint further alleges that Quantum did not meet those performance objectives but hid that by improperly recognizing revenue in fiscal 2015, with the alleged objective of entrenching Messrs. Gacek and Auvil and then-current management. Mr. Gacek resigned from the board effective May 1, 2017 and as CEO effective November 7, 2017; Mr. Auvil resigned from the board effective November 8, 2017. The complaint’s accounting allegations largely repeat allegations made in now-concluded shareholder class actions, shareholder derivative actions and SEC investigation, the settlement of which we previously reported in the Company’s Form 10-Q filed with the SEC on January 29, 2020 and Form 10-K filed with the SEC on August 6, 2019 (among other SEC filings). On September 14, 2020, all defendants filed a joint motion to dismiss this action in California on grounds of forum non conveniens and the mandatory Delaware forum selection clauses set forth in the contracts between Starboard and Quantum. On November 19, 2020, Starboard filed a first amended complaint, in which Quantum was not named as a defendant and therefore, in effect Quantum had been dismissed from the California action. The first amended complaint reasserts with only minor modifications the existing claims against Messrs. Gacek and Auvil, and adds a new claim against Messrs. Gacek and Auvil, alleging that they aided and abetted Quantum in committing a fraud on plaintiffs. The amended complaint sought no relief from Quantum. On January 8, 2021, Messrs. Gacek and Auvil moved to dismiss the amended complaint in California on grounds of forum non conveniens and the mandatory Delaware forum selection clauses set forth in the contracts between Starboard and Quantum. On March 11, 2021, the California Superior Court stayed the California action. On April 14, 2021, Starboard filed a new action in the Delaware Court of Chancery, naming as defendants Messrs. Gacek and Auvil and Quantum. The new action largely repeats the allegations of the California action, alleging claims for fraud against all defendants, fraudulent concealment against all defendants, negligent misrepresentation against all defendants, breach of contract against Quantum, breach of the implied covenant of good faith and fair dealing against Quantum, and breach of fiduciary duty against Messrs. Gacek and Auvil. The complaint prays for unspecified damages in an amount to be determined at trial, costs and attorneys’ fees, and any other relief deemed just or appropriate by the court. On May 10, 2021, Quantum filed a motion to dismiss this Delaware action, as did Messrs. Gacek and Auvil. At this time, Quantum is unable to estimate the range of possible outcomes with respect to this matter. Indemnifications The Company has certain financial guarantees, both express and implied, related to product liability and potential infringement of intellectual property. Other than certain product warranty liabilities recorded as of March 31, 2021 and 2020, the Company did not record a liability associated with these guarantees, as the Company has little, or no history of costs associated with such indemnification requirements. Contingent liabilities associated with product liability may be mitigated by insurance coverage that the Company maintains. In the normal course of business to facilitate transactions of the Company’s services and products, the Company indemnifies certain parties with respect to certain matters. The Company has agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors, and the Company’s bylaws contains similar indemnification obligations to its agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of the Company’s indemnification claims, and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results, financial position, or cash flows. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company has certain non-financial assets that are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when an impairment is recognized. These assets include property and equipment and amortizable intangible assets. The Company did not record impairments to any non-financial assets in the fiscal years ended March 31, 2021, 2020 and 2019. The Company does not have any non-financial liabilities measured and recorded at fair value on a non-recurring basis. The carrying amounts reported in the accompanying consolidated financial statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other current liabilities approximate their respective fair values because of the short-term nature of these accounts. Debt The table below represents the carrying value and total estimated fair value of long-term debt as of March 31, 2021 and March 31, 2020, respectively. The fair value has been classified as Level 2 within the fair value hierarchy. March 31, 2021 2020 Carrying Value Fair Value Carrying Value Fair Value Senior Secured Term Loan $ 92,426 $ 97,047 $ 165,208 $ 151,678 Amended PNC Credit Facility — — 2,620 2,226 |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated. The Company reviews subsidiaries and affiliates, as well as other entities, to determine if they should be considered variable interest entities (“VIE”), and whether it should change the consolidation determinations based on changes in their characteristics. The Company considers an entity a VIE if its equity investors own an interest therein that lacks the characteristics of a controlling financial interest or if such investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or if the entity is structured with non-substantive voting interests. To determine whether or not the entity is consolidated with the Company’s results, the Company also evaluates which interests are variable interests in the VIE and which party is the primary beneficiary of the VIE. |
Principle of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Quantum and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company has cash deposits and cash equivalents deposited in or managed by major financial institutions. Cash equivalents include all highly liquid investment instruments with an original maturity of three months or less and consist primarily of money market accounts. At times the related amounts are in excess of amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses with these financial institutions and does not believe such balances are exposed to significant credit risk. |
Restricted Cash | Restricted Cash Restricted cash is primarily attributable to minimum cash reserve requirements under the Company’s revolving credit agreements. The remaining restricted cash is comprised of bank guarantees and similar required minimum balances that serve as cash collateral in connection with various items including insurance requirements, value added taxes, ongoing tax audits and leases in certain countries. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses based on historical experience and expected collectability of outstanding accounts receivable. The Company performs ongoing credit evaluations of its customers’ financial condition, and for the majority of its customers require no collateral. For customers that do not meet the Company’s credit standards, the Company often requires a form of collateral, such as cash deposits or letters of credit, prior to the completion of a transaction. These credit evaluations require significant judgment and are based on multiple sources of information. The Company analyzes such factors as its historical bad debt experience, industry and geographic concentrations of credit risk, current economic trends and changes in customer payment terms. The Company will write-off customer balances in full to the reserve when it has determined that the balance is not recoverable. Changes in the allowance for doubtful accounts are recorded in general and administrative expenses. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Other than quoted prices that are observable in the market for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are unobservable and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company's financial instruments consist of Level 3 liabilities. |
Inventories | Manufacturing Inventories Manufacturing inventory is recorded at the lower of cost or net realizable value, with cost being determined on a first-in, first-out (“FIFO”) basis. Costs include material, direct labor, and an allocation of overhead in the case of work in process. Adjustments to reduce the cost of manufacturing inventory to its net realizable value, if required, are made for estimated excess, obsolete or impaired balances. Factors influencing these adjustments include declines in demand, rapid technological changes, product life cycle and development plans, component cost trends, product pricing, physical deterioration and quality issues. Revisions to these adjustments would be required if these factors differ from the Company’s estimates. Service Parts Inventories Service parts inventories are recorded at the lower of cost or net realizable value, with cost being determined on a FIFO basis. The Company carries service parts because it generally provides product warranty for one |
Property and Equipment | Property and Equipment Property and equipment are carried at cost, less accumulated depreciation and amortization, computed on a straight-line basis over the estimated useful lives of the assets as follows: Machinery and equipment 3 to 5 years Computer equipment 3 to 5 years Enterprise resource planning software (1) 10 years Other software 3 years Furniture and fixtures 5 years Other office equipment 5 years Leasehold improvements Shorter of useful life or life of lease (1) Included in other long-term assets in the accompanying consolidated balance sheets. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in the consolidated statements of operations and comprehensive income (loss) in the period realized. The Company evaluates the recoverability of the carrying amount of its property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be fully recoverable. A potential impairment charge is evaluated when the undiscounted expected cash flows derived from an asset group are less than its carrying amount. Impairment losses, if applicable, are measured as the amount by which the carrying value of an asset group exceeds its fair value and are recognized in operating results. Judgment is used when applying these impairment rules to determine the timing of impairment testing, the undiscounted cash flows used to assess impairments and the fair value of the asset group. |
Business Combinations | Business Combinations The Company allocates the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of the assets acquired and liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the estimated fair value of the assets acquired and liabilities assumed, with the corresponding offset to goodwill. The results of operations of an acquired business is included in its consolidated financial statements from the date of acquisition. Acquisition-related expenses are expensed as incurred. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price consideration over the estimated fair value of the tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill is evaluated for impairment annually in the third quarter of its fiscal year as a single reporting unit, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company may elect to |
Purchased Intangible Assets | Purchased Intangible Assets Purchased intangible assets with finite lives are stated at cost, net of accumulated amortization. The Company amortizes its intangible assets on a straight-line basis over an estimated useful life of three |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review our long-lived assets, including property and equipment and finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure the recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, we record an impairment charge for the amount by which the carrying amount of the asset exceeds its fair market value. |
Operating Leases | Operating Leases The Company determines if an arrangement contains a lease at inception. Lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in the Company's operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. The operating lease right-of-use ("ROU") asset is determined based on the lease liability initially established and reduced for any prepaid lease payments and any lease incentives. The Company accounts for the lease and non-lease components of operating lease contract consideration as a single lease component. Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the lease cost. Lease cost is recognized on a straight-line basis over the lease term commencing on the date the Company has the right to use the leased property. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that an extension or termination option will be exercised. In addition, certain operating lease agreements contain tenant improvement allowances from the Company's landlords. These allowances are accounted for as lease incentives and reduce its ROU asset and lease cost over the lease term. For short-term leases with lease term no longer than twelve months, and do not include an option to purchase the underlying asset that is reasonably certain to be exercise, the Company recognizes rent expense in the Company's consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Revenue recognition | Deferred Revenue Deferred revenue primarily consists of amounts that have been invoiced but have not yet been recognized as revenue and performance obligations pertaining to subscription services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet dates. Revenue recognition The Company generates revenue from three main sources: (1) product, (2) professional services, and (3) royalties. Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis. The Company's performance obligations are satisfied at a point in time or over time as stand ready obligations. The majority of revenue is recognized at a point in time when products are accepted, installed or delivered. Product Revenue The Company's product revenue is comprised of multiple storage solution hardware and software offerings targeted towards consumer and enterprise customers. Revenue from product sales is recognized at the point in time when the customer takes control of the product. If there are significant post-delivery obligations, the related revenue is deferred until such obligations are fulfilled. Revenue from contracts with customer acceptance criteria are recognized upon end user acceptance. Service Revenue Service revenue primarily consists of three components: (1) post-contract customer support agreements. (2) installation, and (3) consulting & training. Customers have the option to choose between different levels of hardware and software support. The Company's support plans include various stand-ready obligations such as technical assistance hot-lines, replacement parts maintenance, and remote monitoring that are delivered whenever called upon by its customers. Support plans provide additional services and assurance outside the scope of the Company's primary product warranties. Revenue from support plans are recognized ratably over the contractual term of the service contract. The Company offers installation services on all its products. Customers can opt to either have Quantum or a Quantum-approved third-party service provider install its products. Installation services are typically completed within a short period of time and revenue from these services are recognized at the point when installation is complete. A majority of the Company's consulting and training revenue does not take significant time to complete therefore these obligations are satisfied upon completion of such services at a point in time. Royalty Revenue The Company licenses certain intellectual property to third party manufacturers which gives the manufacturers rights to intellectual property including the right to either manufacture or include the intellectual property in their products for resale. Licensees pay the Company a per-unit royalty for sales of their products that incorporate its intellectual property. On a periodic and timely basis, the licensees provide us with reports containing units sold to end users subject to the royalties. The reports substantiate that the performance obligation has been satisfied therefore revenue is recognized based on the reports or when amounts can be reasonably estimated. |
Significant Judgements | Significant Judgements The Company generally enters into contracts with customers to provide storage solutions to meet their individual needs. Most of the Company’s contracts contain multiple goods and services designed to meet each customers’ unique storage needs. Contracts with multiple goods and services have multiple distinct performance obligations as the promise to transfer hardware, installation services, and support services are capable of being distinct and provide economic benefit to customers on their own. Stand-alone selling price For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative standalone selling price (“SSP”) of the good or service underlying each performance obligation. The SSP represents the amount for which the Company would sell the good or service to a customer on a standalone basis (i.e., not sold as a bundle with any other products or services). Where SSP may not be directly observable (e.g., the performance obligation is not sold separately), the Company maximized the use of observable inputs by using information including reviewing discounting practices, performance obligations with similar customers and product groupings. The Company evaluated all methods included in ASC 606 to determine SSP and concluded that invoice price is the best representation of what the Company expects to receive from the delivery of each performance obligation. Variable consideration Product revenue includes multiple types of variable consideration, such as rebates, returns, or stock rotations. All contracts with variable consideration require payment upon satisfaction of the performance obligation typically with net 45-day payment terms. The Company does not include significant financing components in its contracts. The Company constrains estimates of variable consideration to amounts that are not expected to result in a significant revenue reversal in the future, primarily based on the most likely level of consideration to be returned to the customer under the specific terms of the underlying programs. The expected value method is used to estimate the consideration expected to be returned to the customer. The Company uses historical data and current trends to drive the estimates. The Company records a reduction to revenue to account for these programs. The Company initially measures this asset at the carrying amount of the inventory, less any expected costs to recover the goods including potential decreases in the value of the returned goods. |
Cost of Revenue | Cost of Service Revenue The Company classifies expenses as service cost of revenue by estimating the portion of its total cost of revenue that relates to providing field support to its customers under contract. These estimates are based upon a variety of factors, including the nature of the support activity and the level of infrastructure required to support the activities from which it earns service revenue. In the event its service business changes, its estimates of cost of service revenue may be impacted. Shipping and Handling Fees Shipping and handling fees are included in cost of revenue and were $9.4 million, $9.4 million, and $9.1 million in fiscal 2021, 2020 and 2019, respectively. |
Research and Development Costs | Research and Development CostsExpenditures relating to the development of new products and processes are expensed as incurred. These costs include expenditures for employee compensation, materials used in the development effort, other internal costs, as well as expenditures for third party professional services. The Company has determined that technological feasibility for its software products is reached shortly before the products are released to manufacturing. Costs incurred after technological feasibility is established have not been material. The Company expenses software-related research and development costs as incurred. |
Advertising Expense | Advertising Expense Advertising expense is recorded as incurred and was $1.5 million, $3.4 million, and $4.5 million in fiscal 2021, 2020 and 2019, respectively. |
Restructuring Charges | Restructuring Reserves Restructuring reserves include charges related to the realignment and restructuring of the Company’s business operations. These charges represent judgments and estimates of the Company’s costs of severance, closure and consolidation of facilities and settlement of contractual obligations under its operating leases, including sublease rental rates, asset write-offs and other related costs. The Company reassesses the reserve requirements to complete each individual plan under the restructuring programs at the end of each reporting period. If these estimates change in the future or actual results differ from the Company’s estimates, additional charges may be required. |
Foreign Currency Translation | Foreign Currency Translation The Company's international operations generally use their local currency as their functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are reported as a component of other comprehensive income (loss) and recorded in accumulated other comprehensive loss on its consolidated balance sheets. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes in which deferred tax asset and liabilities are recognized based on differences between the financial reporting carrying values of assets and liabilities and the tax basis of those assets and liabilities, measured at the enacted tax rates expected to apply to taxable income in the years in which those tax assets or liabilities are expected to be realized or settled. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance, if any, that results from a change in circumstances, and which causes a change in the Company’s judgment about the realizability of the related deferred tax asset, is included in the tax provision. The Company assesses whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized in the financial statements from such a position is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances and changes in tax law. The Company recognizes penalties and tax-related interest expense as a component of income tax expense in the consolidated statements of operations. |
Asset Retirement Obligations | Asset Retirement Obligations The Company records an asset retirement obligation for the fair value of legal obligations associated with the retirement of tangible long-lived assets and a corresponding increase in the carrying amount of the related asset in the period in which the obligation is incurred. In periods subsequent to initial measurement, the Company recognizes changes in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate. Over time, the liability is accreted to its present value and the capitalized cost is depreciated over the estimated useful life of the asset. The Company’s obligations relate primarily to certain legal obligations to remediate leased property on which certain assets are located. |
Warranty Expense | Warranty Expense The Company warranties its products against certain defects and the terms range from one |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs for revolving credit agreements are capitalized and amortized over the term of the underlying agreements on a straight-line basis. Amortization of these debt issuance costs is included in interest expense while the unamortized debt issuance cost balance is included in other current assets or other assets. Debt issuance costs for the Company’s term loans are recorded as a reduction to the carrying amount and are amortized over their terms using the effective interest method. Amortization of these debt issuance costs is included in interest expense. |
Stock-Based Compensation | Stock-Based Compensation The Company classifies stock-based awards granted in exchange for services as either equity awards or liability awards. The classification of an award as either an equity award or a liability award is generally based upon cash settlement options. Equity awards are measured based on the fair value of the award at the grant date. Liability awards are re-measured to fair value each reporting period. Each reporting period, the Company recognizes the change in fair value of awards issued to non-employees as expense. The Company recognizes stock-based compensation on a straight-line basis over the award’s requisite service period, which is generally the vesting period of the award, less actual forfeitures. No compensation expense is recognized for awards for which participants do not render the requisite services. For equity and liability awards earned based on performance or upon occurrence of a contingent event, when and if the awards will be earned is estimated. If an award is not considered probable of being earned, no amount of stock-based compensation is recognized. If the award is deemed probable of being earned, related compensation expense is recorded over the estimated service period. To the extent the estimate of |
Concentration of Credit Risk | Concentration of Credit Risk The Company sells products to customers in a wide variety of industries on a worldwide basis. In countries or industries where the Company is exposed to material credit risk, the Company may require collateral, including cash deposits and letters of credit, prior to the completion of a transaction. The Company does not believe it has significant credit risk beyond that provided for in the consolidated financial statements in the ordinary course of business. During the fiscal years ended March 31, 2021, 2020 and 2019 no customers represented 10% or more of the Company’s total revenue. Two customers comprised approximately 22% of accounts receivable as of March 31, 2021. No customers comprised more than 10% of accounts receivable as of March 31, 2020. One customer comprised approximately 21% of accounts receivable as of March 31, 2019. If the Company is unable to obtain adequate quantities of the inventory needed to sell its products, the Company could face costs increases or delays or discontinuations in product shipments, which could have a material adverse effect on the Company’s results of operations. In many cases, the Company’s chosen vendor may be the sole source of supply for the products or parts they manufacture, or services they provide, for the Company. Some of the products the Company purchases from these sources are proprietary or complex in nature, and therefore cannot be readily or easily replaced by alternative sources. |
Segment Reporting | Segment Reporting Business segments are defined as components of an enterprise about which discrete financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. Based on the way the Company manages its business, the Company has determined that it currently operates with one reportable segment. The chief operating decision maker focuses on consolidated results in assessing operating performance and allocating resources. Furthermore, the Company offers similar products and services and uses similar processes to sell those products and services to similar classes of customers. The Company’s chief operating decision-maker is its Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. There are no segment managers who are held accountable by the chief operating decision-maker, or anyone else, for operations, operating results, and planning for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single reportable segment and operating segment structure. |
Defined Contribution Plan | Defined Contribution Plan The Company sponsors a qualified 401(k) retirement plan for its U.S employees. The plan covers substantially all employees who have attained the age of 18. Participants may voluntarily contribute to the plan up to the maximum limits established by Internal Revenue Service regulations. For the year ended March 31, 2021, the Company incurred $1.2 million in matching contributions. No matching contributions were made in the fiscal years ended March 31, 2020 and 2019. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted the guidance in ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses of Financial Instruments ("CECL") on April 1, 2020. The ASU requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses over the lifetime of the asset rather than incurred losses. The adoption of ASU 2016-13 did not have a material impact on the condensed consolidated financial statements. The Company adopted the guidance in ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract on April 1, 2020. The ASU requires implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises as authoritative guidance for internal-use software and deferred over the noncancelable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The adoption of ASU 2018-15 did not have a material impact on the condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity, and modifies the guidance on diluted earnings per share (EPS) calculations as a result of these changes. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The Company plans to adopt this pronouncement for our fiscal year ending March 31, 2022, and does not expect it to have a material effect on its consolidated financial statements. |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of property and equipment | Property and equipment are carried at cost, less accumulated depreciation and amortization, computed on a straight-line basis over the estimated useful lives of the assets as follows: Machinery and equipment 3 to 5 years Computer equipment 3 to 5 years Enterprise resource planning software (1) 10 years Other software 3 years Furniture and fixtures 5 years Other office equipment 5 years Leasehold improvements Shorter of useful life or life of lease (1) Included in other long-term assets in the accompanying consolidated balance sheets. Property and equipment, net March 31, 2021 2020 Machinery and equipment $ 38,027 $ 33,804 Leasehold improvements 7,080 6,733 Furniture and fixtures 847 1,862 Software 300 — 46,254 42,399 Less: accumulated depreciation (36,203) (33,353) Total property, plant and equipment, net $ 10,051 $ 9,046 |
Property and equipment, net by geographic region | The following table summarizes property and equipment, net by geographic region (in thousands): For the year ended March 31, 2021 2020 United States $ 9,787 $ 8,488 International 264 558 Total $ 10,051 $ 9,046 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue from external customers by geographic areas | In the following table, revenue is disaggregated by major product offering and geographies (in thousands): Year Ended March 31, 2021 2020 2019 1 Americas 2 Primary storage systems $ 52,295 $ 54,211 $ 33,789 Secondary storage systems 41,948 57,192 72,696 Device and media 24,410 31,228 34,079 Service 76,039 82,607 87,040 Total revenue 194,692 225,238 227,604 EMEA Primary storage systems 12,940 16,078 18,902 Secondary storage systems 33,688 40,008 40,666 Device and media 20,881 25,484 19,064 Service 41,261 39,467 37,216 Total revenue 108,770 121,037 115,848 APAC Primary storage systems 4,409 6,863 6,120 Secondary storage systems 13,364 14,472 13,166 Device and media 5,873 5,632 6,172 Service 7,604 8,976 10,440 Total revenue 31,250 35,943 35,898 Consolidated Primary storage systems 69,644 77,152 58,811 Secondary storage systems 89,000 111,672 126,528 Device and media 51,164 62,344 59,315 Service 124,904 131,050 134,696 Royalty 3 14,864 20,731 23,330 Total revenue $ 349,576 $ 402,949 $ 402,680 1 Primary and Secondary storage system revenue has been adjusted for fiscal year 2019 due to certain reclassifications from Primary to Secondary storage systems. 2 Revenue for Americas geographic region outside of the United States is not significant. 3 Royalty revenue is not allocable to geographic regions. |
Schedule of deferred revenue, by arrangement | The following table presents the Company’s contract liabilities and certain information related to this balance as of March 31, 2021 (in thousands): March 31, 2021 Deferred revenue $ 120,153 Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 79,921 |
Schedule of remaining performance obligations | Remaining performance obligations consisted of the following (in thousands): Current Non-Current Total As of March 31, 2021 $ 102,468 $ 38,771 $ 141,239 |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of finite lived intangibles acquired | The following table summarizes intangible assets related to the SBS acquisition as of March 31, 2021: Intangible assets, net March 31, 2021 Gross Carrying Value Accumulated Amortization Net Carrying Amount Developed technology $ 4,700 $ (473) $ 4,227 Customer lists 900 (90) 810 Intangible assets, net $ 5,600 $ (563) $ 5,037 |
Future expected amortization expense for intangible assets | As of March 31, 2021, the future expected amortization expense for intangible assets is as follows (in thousands): Fiscal year ending Estimated future amortization expense 2022 1,867 2023 1,867 2024 1,303 2025 — Thereafter — Total $ 5,037 |
Schedule of goodwill | Goodwill Amount Balance at March 31, 2020 $ — Goodwill acquired 3,466 Balance at March 31, 2021 $ 3,466 |
BALANCE SHEET INFORMATION (Tabl
BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of manufacturing inventories | Certain significant amounts included in the Company's consolidated balance sheets consist of the following (in thousands): Manufacturing inventories March 31, 2021 2020 Finished goods Manufactured finished goods $ 12,452 $ 15,790 Distributor inventory 238 504 Total finished goods 12,690 16,294 Work in progress 2,074 1,001 Raw materials 9,703 11,901 Total manufacturing inventories $ 24,467 $ 29,196 |
Schedule of service inventories | Service inventories March 31, 2021 2020 Finished goods $ 18,773 $ 15,845 Component parts 4,648 4,657 Total service inventories $ 23,421 $ 20,502 |
Schedule of property and equipment | Property and equipment are carried at cost, less accumulated depreciation and amortization, computed on a straight-line basis over the estimated useful lives of the assets as follows: Machinery and equipment 3 to 5 years Computer equipment 3 to 5 years Enterprise resource planning software (1) 10 years Other software 3 years Furniture and fixtures 5 years Other office equipment 5 years Leasehold improvements Shorter of useful life or life of lease (1) Included in other long-term assets in the accompanying consolidated balance sheets. Property and equipment, net March 31, 2021 2020 Machinery and equipment $ 38,027 $ 33,804 Leasehold improvements 7,080 6,733 Furniture and fixtures 847 1,862 Software 300 — 46,254 42,399 Less: accumulated depreciation (36,203) (33,353) Total property, plant and equipment, net $ 10,051 $ 9,046 |
Schedule of other accrued liabilities | Other accrued liabilities March 31, 2021 2020 Accrued expenses $ 6,799 $ 3,338 Asset retirement obligation 2,906 1,655 Accrued warranty 2,383 2,668 Accrued interest 57 3,192 Other 6,029 6,682 Total other accrued liabilities $ 18,174 $ 17,535 |
Schedule of accrued warranty balance | The following table details the change in the accrued warranty balance (in thousands): Year Ended March 31, 2021 2020 2019 Balance as of April 1 $ 2,668 $ 3,456 2,422 Current period accruals 4,699 3,516 5,766 Adjustments to prior estimates (472) (114) 326 Charges incurred (4,512) (4,190) (5,058) Balance as of March 31 $ 2,383 $ 2,668 $ 3,456 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes the Company's borrowing as of the dates presented (in thousands): Year Ended March 31, 2021 2020 Senior Secured Term Loan $ 92,426 $ 165,208 Amended PNC Credit Facility — 2,620 Paycheck Protection Program 10,000 — Less: current portion (1,850) (7,321) Less unamortized debt issuance costs (1) (9,686) (13,660) Long-term debt, net $ 90,890 $ 146,847 (1) The unamortized debt issuance costs related to the Senior Secured Term Loan are presented as a reduction of the carrying amount of the corresponding debt balance on the accompanying consolidated balance sheets. Unamortized debt issuance costs related to the PNC Credit Facility are presented within other assets on the accompanying consolidated balance sheets. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Supplemental balance sheet | Supplemental balance sheet information related to leases is as follows (in thousands): Operating leases March 31, 2021 March 31, 2020 Operating lease right-of-use assets $ 9,383 $ 12,689 Other current liabilities $ 2,581 $ 3,065 Operating lease liability 8,005 10,822 Total operating lease liabilities $ 10,586 $ 13,887 |
Components of lease cost | The components of lease expense were as follows (in thousands): Year Ended March 31, Lease expense 2021 2020 Operating lease expense $ 4,718 $ 4,901 Variable lease expense 820 277 Short-term lease expense 132 102 Total lease expense $ 5,670 $ 5,280 Lease Term and Discount Rate March 31, 2021 2020 Weighted average remaining operating lease term (years) 4.53 4.99 Weighted average discount rate for operating leases 13.96 % 13.91 % |
Maturity of operating lease liability | Maturity of Lease Liabilities Operating Leases 2022 $ 3,818 2023 2,766 2024 2,602 2025 2,310 2026 1,910 Thereafter 1,002 Total lease payments $ 14,408 Less: Imputed interest (3,822) Present value of lease liabilities $ 10,586 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of activity for accrued restructuring | The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands): Severance and Facilities Total Balance as of March 31, 2018 $ 1,430 $ 4,389 $ 5,819 Restructuring costs 4,708 862 5,570 Cash payments (6,138) (2,375) (8,513) Balance as of March 31, 2019 — 2,876 2,876 Adjustments of prior estimates — 1,022 1,022 Cash payments — (3,961) (3,961) Other non-cash — 63 63 Balance as of March 31, 2020 — — — Restructuring costs 3,701 — 3,701 Cash payments (3,121) — (3,121) Balance as of March 31, 2021 $ 580 $ — $ 580 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of shares of common stock for future issuance under 2021 Inducement Plan | The Company have reserved shares of common stock for future issuance under its 2021 Inducement Plan as follows (in thousands): March 31, 2021 Shares available for issuance at beginning of period — Shares authorized during the period 770 Shares issued during the period (520) Total shares available for future issuance at end of period 250 |
Schedule of shares reserved fro future issuance under the ESPP | The Company has reserved shares of common stock for future issuance under its ESPP as follows (in thousands): March 31, 2021 2020 Shares available for issuance at beginning of period 1,397 497 Additional shares authorized during the period — 900 Shares issued during the period (320) — Total shares available for future issuance at end of period 1,077 1,397 |
Schedule of valuation assumptions | The weighted-average grant date fair value and the assumptions used in calculating fair values of shares forecasted to be issued pursuant to the Company's ESPP are as follows: Year Ended March 31, 2021 2020 2019 Expected life 0.5 years 0.5 years n/a Volatility 55% - 133% 49.81% n/a Risk-free interest rate 0.05% - 0.11% 0.41% n/a Dividend yield —% —% n/a Fair value of common stock $4.99 - $8.05 $4.78 n/a Assumptions used in the Monte Carlo model to calculate fair values of market PSU’s during each fiscal period are as follows: Weighted-Average 2021 2020 2019 Discount period (years) 2.54 3.00 1.95 Risk-free interest rate 0.31% 1.45% 2.63% Stock price volatility 82.00% 72.00% 69.35% Grant date fair value $3.77 $5.92 $1.70 |
Summary of activity for PSUs | The following table summarizes activity for Market PSUs and Performance PSUs for the year ended March 31, 2021 (shares in thousands) : Shares Weighted-Average Outstanding as of March 31, 2020 1,944 $ 4.09 Granted 1,346 $ 3.67 Vested (745) $ 3.94 Forfeited or cancelled (190) $ 4.66 Outstanding as of March 31, 2021 2,355 $ 3.85 |
Summary of activity relating to restricted stock | The following table summarizes activity for restricted stock units for the year ended March 31, 2021 (shares in thousands) : Shares Weighted-Average Outstanding as of March 31, 2020 986 $ 3.42 Granted 2,440 $ 4.41 Vested (518) $ 3.99 Forfeited or cancelled (198) $ 3.78 Outstanding as of March 31, 2021 2,710 $ 4.17 |
Summary of share-based compensation expense | The following table details the Company's stock-based compensation expense, net of forfeitures (in thousands): Year Ended March 31, 2021 2020 2019 Cost of revenue $ 672 $ 452 $ 334 Research and development 2,881 984 440 Sales and marketing 1,757 1,165 179 General and administrative 4,314 4,147 2,456 Total share-based compensation $ 9,624 $ 6,748 $ 3,409 Year Ended March 31, 2021 2020 2019 Restricted stock units $ 4,041 $ 3,610 $ 3,178 Performance share units 4,904 3,103 231 Employee stock purchase plan 679 35 — Total stock-based compensation $ 9,624 $ 6,748 $ 3,409 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per-share data): Year Ended March 31, 2021 2020 2019 Numerator: Net loss $ (35,459) $ (5,210) $ (42,797) Denominator: Weighted average shares - basic and diluted 42,852 37,593 35,551 Net loss per share - basic and diluted $ (0.83) $ (0.14) $ (1.20) |
Schedule of antidilutive securities excluded from computation of diluted net income (loss) per share | The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stock for the periods presented because their effect would have been anti-dilutive (in thousands): Year Ended March 31, 2021 2020 2019 Stock awards 1,818 931 307 Warrants 6,573 6,312 4,657 ESPP 11 223 — Total 8,402 7,466 4,964 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of pre-tax income (loss) | Pre-tax loss reflected in the consolidated statements of operations for the years ended March 31, 2021, 2020 and 2019 is as follows (in thousands): Year Ended March 31, 2021 2020 2019 U.S. $ (36,648) $ (6,318) $ (40,935) Foreign 1,428 1,911 514 Total $ (35,220) $ (4,407) $ (40,421) |
Schedule of income tax provision | Income tax provision consists of the following (in thousands): Year Ended March 31, 2021 2020 2019 Current tax expense Federal $ (76) $ (115) $ (217) State 339 106 31 Foreign 747 1,271 1,103 Total current tax expense 1,010 1,262 917 Deferred tax expense Federal (577) — — State 9 33 32 Foreign (203) (492) 1,427 Total deferred tax expense (benefit) (771) (459) 1,459 Income tax provision $ 239 $ 803 $ 2,376 |
Schedule of federal income tax rate reconciliation | The income tax provision differs from the amount computed by applying the federal statutory rate of 21% to loss before income taxes as follows (in thousands): For the year ended March 31, 2021 2020 2019 Expiration of attributes $ 9,862 $ 11,679 $ 12,268 Valuation allowance 5,444 (2,639) 10,913 Permanent items 1,295 914 359 Equity compensation 345 280 905 Tax reform — — (207) Credit monetization — — — Foreign taxes (129) 1,612 (2,133) State income taxes (969) (20) (997) Research and development credits (1,829) (1,566) (879) Uncertain tax positions (6,695) (8,654) (9,278) Expense at the federal statutory rate (7396) (925) (8488) Other 311 122 (87) Income tax provision $ 239 $ 803 $ 2,376 |
Schedule of components of deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities are as follows (in thousands): As of March 31, 2021 2020 Deferred tax assets Loss carryforwards $ 76,153 $ 85,638 Deferred revenue 21,839 17,043 Tax credits 16,574 17,416 Disallowed interest 12,132 8,958 Other accruals and reserves not currently deductible for tax purposes 8,192 16,339 Capitalized research and development 7,811 — Lease obligations 1,747 3,413 Inventory 1,374 924 Accrued warranty expense 569 650 Acquired intangibles 454 2,660 Gross deferred tax assets 146,845 153,041 Valuation allowance (143,263) (137,814) Total deferred tax assets, net of valuation allowance $ 3,582 $ 15,227 Deferred tax liabilities Depreciation $ (1,440) $ (1,440) Lease assets (1,670) (3,413) Other (1,013) (967) Total deferred tax liabilities $ (4,123) $ (5,820) Net deferred tax assets (liabilities) $ (541) $ 9,407 |
Reconciliation of gross unrecognized tax benefits | A reconciliation of the gross unrecognized tax benefits is as follows (in thousands): For the year ended March 31, 2021 2020 2019 Beginning Balance $ 107,282 $ 116,032 $ 150,559 Increase in balances related to tax positions in current period 2,560 2,275 1,718 Increase in balances related to tax positions in prior period — 144 — Increase in balances related to acquisitions 511 — — Decrease in balances related to tax positions in prior period (522) (4) (25,095) Decrease in balances due to lapse in statute of limitations (8,712) (11,165) (11,150) Ending balance $ 101,119 $ 107,282 $ 116,032 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and total estimated fair value | The table below represents the carrying value and total estimated fair value of long-term debt as of March 31, 2021 and March 31, 2020, respectively. The fair value has been classified as Level 2 within the fair value hierarchy. March 31, 2021 2020 Carrying Value Fair Value Carrying Value Fair Value Senior Secured Term Loan $ 92,426 $ 97,047 $ 165,208 $ 151,678 Amended PNC Credit Facility — — 2,620 2,226 |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | ||
Mar. 31, 2021USD ($)segmentcustomerregioncomponent | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($)customer | |
Concentration Risk | |||
Components of service revenue | component | 3 | ||
Performance obligation, term | 45 days | ||
Advertising expense | $ 1,500,000 | $ 3,400,000 | $ 4,500,000 |
Shipping and handling fees | $ 9,400,000 | 9,400,000 | 9,100,000 |
Number of reportable segments | segment | 1 | ||
Number of geographic regions | region | 3 | ||
Employer contributions | $ 1,200,000 | $ 0 | $ 0 |
Minimum | |||
Concentration Risk | |||
Product warranty term | 1 year | ||
Finite lived assets useful life (years) | 3 years | ||
Maximum | |||
Concentration Risk | |||
Product warranty term | 3 years | ||
Finite lived assets useful life (years) | 7 years | ||
Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk | |||
Concentration risk percentage | 0.00% | ||
Accounts Receivable | Customer Concentration Risk | Customer One | |||
Concentration Risk | |||
Number of customers (customer) | customer | 1 | ||
Concentration risk percentage | 21.00% | ||
Accounts Receivable | Customer Concentration Risk | Customer Two | |||
Concentration Risk | |||
Number of customers (customer) | customer | 2 | ||
Concentration risk percentage | 22.00% |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives of the assets | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives of the assets | 5 years |
Computer equipment | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives of the assets | 3 years |
Computer equipment | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives of the assets | 5 years |
Enterprise resource planning software | |
Property, Plant and Equipment | |
Estimated useful lives of the assets | 10 years |
Other software | |
Property, Plant and Equipment | |
Estimated useful lives of the assets | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment | |
Estimated useful lives of the assets | 5 years |
Other office equipment | |
Property, Plant and Equipment | |
Estimated useful lives of the assets | 5 years |
DESCRIPTION OF BUSINESS AND S_6
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Revenues from External Customers and Long-Lived Assets | ||
Property and equipment, net | $ 10,051 | $ 9,046 |
United States | ||
Revenues from External Customers and Long-Lived Assets | ||
Property and equipment, net | 9,787 | 8,488 |
International | ||
Revenues from External Customers and Long-Lived Assets | ||
Property and equipment, net | $ 264 | $ 558 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | $ 349,576 | $ 402,949 | $ 402,680 |
Americas | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 194,692 | 225,238 | 227,604 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 108,770 | 121,037 | 115,848 |
APAC | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 31,250 | 35,943 | 35,898 |
Primary storage systems | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 69,644 | 77,152 | 58,811 |
Primary storage systems | Americas | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 52,295 | 54,211 | 33,789 |
Primary storage systems | EMEA | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 12,940 | 16,078 | 18,902 |
Primary storage systems | APAC | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 4,409 | 6,863 | 6,120 |
Secondary storage systems | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 89,000 | 111,672 | 126,528 |
Secondary storage systems | Americas | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 41,948 | 57,192 | 72,696 |
Secondary storage systems | EMEA | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 33,688 | 40,008 | 40,666 |
Secondary storage systems | APAC | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 13,364 | 14,472 | 13,166 |
Device and media | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 51,164 | 62,344 | 59,315 |
Device and media | Americas | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 24,410 | 31,228 | 34,079 |
Device and media | EMEA | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 20,881 | 25,484 | 19,064 |
Device and media | APAC | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 5,873 | 5,632 | 6,172 |
Service | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 124,904 | 131,050 | 134,696 |
Service | Americas | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 76,039 | 82,607 | 87,040 |
Service | EMEA | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 41,261 | 39,467 | 37,216 |
Service | APAC | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | 7,604 | 8,976 | 10,440 |
Royalty | |||
Revenues from External Customers and Long-Lived Assets | |||
Total revenue | $ 14,864 | $ 20,731 | $ 23,330 |
REVENUE - Certain Information R
REVENUE - Certain Information Related to Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 120,153 |
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period | $ 79,921 |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligations (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Current | $ 102,468 |
Non-Current | 38,771 |
Total | $ 141,239 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Percentage of revenue for which commitments are to be honored | 72.50% |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation, timing of satisfaction | 13 months |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation, timing of satisfaction | 60 months |
BUSINESS ACQUISITION - Narrativ
BUSINESS ACQUISITION - Narrative (Details) - USD ($) $ in Thousands | Dec. 12, 2022 | Dec. 12, 2021 | Dec. 12, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition | ||||||
Business acquisition, net of cash acquired | $ 2,655 | $ 1,966 | $ 0 | |||
Goodwill | $ 3,466 | $ 0 | ||||
SBS | ||||||
Business Acquisition | ||||||
Consideration transferred | $ 7,700 | |||||
Business acquisition, net of cash acquired | 2,600 | |||||
Contingently issuable restricted stock units | $ 5,300 | |||||
Vesting period | 2 years | |||||
Purchase price was allocated to net tangible assets | $ 800 | |||||
Purchase price was allocated to intangible assets | 5,600 | |||||
Assets acquired and liabilities assumed, liabilities | 1,000 | |||||
Assets acquired and liabilities assumed, deferred tax liabilities | 1,100 | |||||
Goodwill | $ 3,400 | |||||
SBS | Forecast | ||||||
Business Acquisition | ||||||
Future cash payments to acquire business | $ 1,000 | $ 2,000 | ||||
SBS | Common Stock | ||||||
Business Acquisition | ||||||
Number of shares used as consideration | 400,000 | |||||
Shares used as consideration | $ 2,100 |
BUSINESS ACQUISITION - Schedule
BUSINESS ACQUISITION - Schedule of Intangible Assets, Net (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Business Acquisition | |
Net Carrying Amount | $ 5,037 |
SBS | |
Business Acquisition | |
Gross Carrying Value | 5,600 |
Accumulated Amortization | (563) |
Net Carrying Amount | 5,037 |
SBS | Developed technology | |
Business Acquisition | |
Gross Carrying Value | 4,700 |
Accumulated Amortization | (473) |
Net Carrying Amount | 4,227 |
SBS | Customer lists | |
Business Acquisition | |
Gross Carrying Value | 900 |
Accumulated Amortization | (90) |
Net Carrying Amount | $ 810 |
BUSINESS ACQUISITION - Intangib
BUSINESS ACQUISITION - Intangible Assets, Net - Narrative (Details) - SBS - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition | |||
Intangible assets amortization expense | $ 0 | $ 0 | |
Weighted-average remaining amortization period | 2 years 8 months 12 days |
BUSINESS ACQUISITION - Schedu_2
BUSINESS ACQUISITION - Schedule of Estimated Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2022 | $ 1,867 |
2023 | 1,867 |
2024 | 1,303 |
2025 | 0 |
Thereafter | 0 |
Net Carrying Amount | $ 5,037 |
BUSINESS ACQUISITION - Goodwill
BUSINESS ACQUISITION - Goodwill (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill | |
Balance at March 31, 2020 | $ 0 |
Goodwill acquired | 3,466 |
Balance at March 31, 2021 | $ 3,466 |
BALANCE SHEET INFORMATION - Sch
BALANCE SHEET INFORMATION - Schedule of Manufacturing Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Inventory | ||
Finished goods | $ 12,690 | $ 16,294 |
Work in progress | 2,074 | 1,001 |
Raw materials | 9,703 | 11,901 |
Total manufacturing inventories | 24,467 | 29,196 |
Manufactured finished goods | ||
Inventory | ||
Finished goods | 12,452 | 15,790 |
Distributor inventory | ||
Inventory | ||
Finished goods | $ 238 | $ 504 |
BALANCE SHEET INFORMATION - S_2
BALANCE SHEET INFORMATION - Schedule of Service Parts Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Inventory | ||
Finished goods | $ 18,773 | $ 15,845 |
Component parts | 4,648 | 4,657 |
Total service inventories | $ 23,421 | $ 20,502 |
BALANCE SHEET INFORMATION - S_3
BALANCE SHEET INFORMATION - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment | ||
Property and equipment, gross | $ 46,254 | $ 42,399 |
Less: accumulated depreciation | (36,203) | (33,353) |
Total property, plant and equipment, net | 10,051 | 9,046 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 38,027 | 33,804 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 7,080 | 6,733 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 847 | 1,862 |
Software | ||
Property, Plant and Equipment | ||
Property and equipment, gross | $ 300 | $ 0 |
BALANCE SHEET INFORMATION - Nar
BALANCE SHEET INFORMATION - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation and amortization | $ 5,697 | $ 4,287 | $ 4,266 |
BALANCE SHEET INFORMATION - S_4
BALANCE SHEET INFORMATION - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued expenses | $ 6,799 | $ 3,338 |
Asset retirement obligation | 2,906 | 1,655 |
Accrued warranty | 2,383 | 2,668 |
Accrued interest | 57 | 3,192 |
Other | 6,029 | 6,682 |
Total other accrued liabilities | $ 18,174 | $ 17,535 |
BALANCE SHEET INFORMATION - S_5
BALANCE SHEET INFORMATION - Schedule of Change in Accrued Warranty Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Change in accrued warranty: | |||
Balance as of April 1 | $ 2,668 | $ 3,456 | $ 2,422 |
Current period accruals | 4,699 | 3,516 | 5,766 |
Adjustments to prior estimates | (472) | (114) | 326 |
Charges incurred | (4,512) | (4,190) | (5,058) |
Balance as of March 31 | $ 2,383 | $ 2,668 | $ 3,456 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Apr. 13, 2020 | Mar. 31, 2020 | Dec. 28, 2018 |
Debt Instrument | ||||
Long-term Debt, Gross | $ 150,000 | |||
Less: current portion | $ (1,850) | $ (7,321) | ||
Less unamortized debt issuance costs | (9,686) | (13,660) | ||
Long-term debt, net | 90,890 | 146,847 | ||
Senior Secured Term Loan | Senior Secured Debt | ||||
Debt Instrument | ||||
Long-term Debt, Gross | 92,426 | 165,208 | ||
Revolving Credit Agreement with PNC | Line of Credit | ||||
Debt Instrument | ||||
Amended PNC Credit Facility | 0 | 2,620 | ||
Paycheck Protection Program Loan | Notes Payable | ||||
Debt Instrument | ||||
Amended PNC Credit Facility | $ 10,000 | $ 10,000 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Feb. 11, 2021USD ($) | Jun. 16, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Nov. 18, 2019shares | Dec. 27, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Aug. 31, 2018USD ($)$ / sharesshares | Jun. 30, 2020 | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Apr. 13, 2020USD ($) | Sep. 30, 2019shares | Feb. 01, 2019$ / shares | Dec. 28, 2018USD ($) | Nov. 30, 2018$ / sharesshares | Oct. 31, 2018$ / sharesshares | Sep. 30, 2018$ / shares | Feb. 01, 2018day |
Debt Instrument | |||||||||||||||||||
Warrants issued during the period (in shares) | shares | 3,800,000 | ||||||||||||||||||
Loss on debt extinguishment, net | $ 800,000 | $ 14,789,000 | $ 0 | $ 17,458,000 | |||||||||||||||
Debt issuance fees | 1,400,000 | ||||||||||||||||||
Aggregate principal amount | $ 150,000,000 | ||||||||||||||||||
Proceeds of senior secured term loan | 19,400,000 | 0 | 186,780,000 | ||||||||||||||||
Line of credit facility, maximum borrowing amount | 45,000,000 | ||||||||||||||||||
Debt discount | 100,000 | ||||||||||||||||||
Debt extinguishment fees | $ 700,000 | ||||||||||||||||||
Interest payments made in kind | 0 | 1,858,000 | 0 | ||||||||||||||||
Repayment of secured debt | 92,782,000 | 1,238,000 | 121,807,000 | ||||||||||||||||
Long-term debt, current portion | $ 7,321,000 | 1,850,000 | 7,321,000 | ||||||||||||||||
PNC credit facility | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Line of credit facility, maximum borrowing amount | $ 32,700,000 | ||||||||||||||||||
Interest rate during period | 7.75% | ||||||||||||||||||
Restricted cash reserve | $ 5,000,000 | ||||||||||||||||||
Revolving Credit Agreement with PNC | Line of Credit | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Fee paid to lenders | 500,000 | ||||||||||||||||||
Amended PNC Credit Facility | 2,620,000 | $ 0 | 2,620,000 | ||||||||||||||||
Revolving Credit Agreement with PNC | Line of Credit | Minimum | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 4.50% | ||||||||||||||||||
Revolving Credit Agreement with PNC | Line of Credit | Maximum | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 5.00% | ||||||||||||||||||
Revolving Credit Agreement with PNC | Line of Credit | Base rate | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 0.50% | ||||||||||||||||||
Revolving Credit Agreement with PNC | Line of Credit | LIBOR rate plus senior net leverage ratio | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 1.00% | ||||||||||||||||||
Senior Secured Term Loan | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate during period | 12.00% | ||||||||||||||||||
Minimum registrable securities to request a S-1 | 40.00% | ||||||||||||||||||
Senior Secured Term Loan | Senior Secured Debt | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Warrants issued (in shares) | shares | 7,110,616 | ||||||||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 3 | $ 1.33 | |||||||||||||||||
Warrants called in period (in shares) | shares | 3,400,000 | ||||||||||||||||||
Loss on debt extinguishment, net | $ 14,800,000 | ||||||||||||||||||
Debt issuance fees | $ 18,300,000 | ||||||||||||||||||
Aggregate principal amount | 165,208,000 | $ 92,426,000 | 165,208,000 | ||||||||||||||||
Proceeds of senior secured term loan | $ 20,000,000 | $ 15,000,000 | |||||||||||||||||
Percentage of principal payments of the senior secured term loan | 0.25% | ||||||||||||||||||
Fair value of warrants classified within stockholders deficit | $ 8,800,000 | ||||||||||||||||||
Prepayment percentage | 50.00% | 50.00% | |||||||||||||||||
Prepayment penalty period | 30 months | ||||||||||||||||||
Percentage of principal to be repaid upon change in control of interest | 1.00% | ||||||||||||||||||
Prepayment premium percentage | 5.00% | ||||||||||||||||||
Exit fee (percent) | 2.00% | ||||||||||||||||||
Deferred scheduled amortization payments | 400,000 | ||||||||||||||||||
Interest payments made in kind | 1,900,000 | ||||||||||||||||||
Debt instrument, decrease, forgiveness | $ 5,300,000 | ||||||||||||||||||
Minimum monthly undrawn availability | $ 7,000,000 | ||||||||||||||||||
Debt amendment costs | $ 11,900,000 | ||||||||||||||||||
Cost related to term loan warrants | 11,300,000 | ||||||||||||||||||
Fee paid to lenders | 600,000 | ||||||||||||||||||
Debt issuance cost | $ 800,000 | ||||||||||||||||||
Repayment of secured debt | $ 92,300,000 | ||||||||||||||||||
Write off of debt issuance cost | 10,100,000 | ||||||||||||||||||
Prepayment penalty | 4,600,000 | ||||||||||||||||||
Other debt extinguishment cost | $ 100,000 | ||||||||||||||||||
Senior Secured Term Loan | Senior Secured Debt | Federal funds rate | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 0.50% | ||||||||||||||||||
Senior Secured Term Loan | Senior Secured Debt | One month LIBOR | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 1.00% | ||||||||||||||||||
Senior Secured Term Loan | Senior Secured Debt | Base rate | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 3.00% | ||||||||||||||||||
Senior Secured Term Loan | Senior Secured Debt | LIBOR rate plus senior net leverage ratio | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Senior Secured Term Loan | Senior Secured Debt | Prime rate quoted by the Wall Street Journal | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 9.00% | ||||||||||||||||||
Senior Secured Term Loan | Senior Secured Debt | LIBOR | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Senior Secured Term Loan | Senior Secured Debt | Principal Prepaid Amount | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 5.00% | ||||||||||||||||||
December 2018 Credit Agreements | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Prepayment percentage | 100.00% | ||||||||||||||||||
Debt default trigger amount | $ 1,000,000 | ||||||||||||||||||
Paycheck Protection Program Loan | Notes Payable | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Amended PNC Credit Facility | $ 0 | $ 10,000,000 | $ 0 | $ 10,000,000 | |||||||||||||||
Stated interest rate | 1.00% | ||||||||||||||||||
Initial term | 2 years | ||||||||||||||||||
August 2018 amendment | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Warrants issued (in shares) | shares | 1,099,533 | ||||||||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 2.11 | $ 1.62 | $ 2.40 | $ 2.39 | $ 2.40 | ||||||||||||||
Percent of common stock to purchase | 3.00% | ||||||||||||||||||
Total warrants issued (in shares) | shares | 4,398,132 | ||||||||||||||||||
Warrants called in period (in shares) | shares | 1,099,533 | 1,099,533 | 1,099,533 | ||||||||||||||||
Trading days | day | 5 | ||||||||||||||||||
Fair value of warrants issued | $ 5,600,000 | ||||||||||||||||||
Loss from repurchase of warrants | $ 400,000 | ||||||||||||||||||
Repurchase right percentage | 50.00% | ||||||||||||||||||
Warrant repurchase price (in dollars per share) | $ / shares | $ 0.001 | ||||||||||||||||||
Warrants repurchased (in shares) | shares | 549,766 | ||||||||||||||||||
Warrants repurchased, value | $ 550,000 | ||||||||||||||||||
August 2018 amendment | PNC credit facility | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Loss on debt extinguishment, net | 1,800,000 | ||||||||||||||||||
Debt issuance fees | 1,700,000 | ||||||||||||||||||
August 2018 amendment | TWC term loan agreement | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Loss on debt extinguishment, net | (14,900,000) | ||||||||||||||||||
Debt issuance fees | $ 5,700,000 | ||||||||||||||||||
Warrant | Operating expenses | August 2018 amendment | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Loss from repurchase of warrants | $ 400,000 | ||||||||||||||||||
Accounting Standards Update 2017-11 | Warrant | Senior Secured Term Loan | Senior Secured Debt | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Fair value of warrants classified within stockholders deficit | $ 8,800,000 | ||||||||||||||||||
Common Stock | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Warrants issued during the period (in shares) | shares | 2,800,000 | ||||||||||||||||||
Covenant Period One | Revolving Credit Agreement with PNC | Line of Credit | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 4.50% | ||||||||||||||||||
Covenant Period One | Revolving Credit Agreement with PNC | Line of Credit | Minimum | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 3.50% | ||||||||||||||||||
Covenant Period One | Revolving Credit Agreement with PNC | Line of Credit | Maximum | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 4.50% | ||||||||||||||||||
Covenant Period One | Senior Secured Term Loan | Senior Secured Debt | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Prepayment penalty percentage | 5.00% | 5.00% | |||||||||||||||||
Covenant Period Two | Revolving Credit Agreement with PNC | Line of Credit | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Interest rate | 5.00% | ||||||||||||||||||
Covenant Period Two | Senior Secured Term Loan | Senior Secured Debt | |||||||||||||||||||
Debt Instrument | |||||||||||||||||||
Prepayment penalty percentage | 2.00% |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 9,383 | $ 12,689 |
Other current liabilities | $ 2,581 | $ 3,065 |
Operating Lease, Liability, Current, Statement of Financial Position | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Operating lease liabilities | $ 8,005 | $ 10,822 |
Total operating lease liabilities | $ 10,586 | $ 13,887 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 4,718 | $ 4,901 |
Variable lease expense | 820 | 277 |
Short-term lease expense | 132 | 102 |
Total lease expense | $ 5,670 | $ 5,280 |
LEASES - Schedule of Lessee Ope
LEASES - Schedule of Lessee Operating Lease Liability Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Maturity of Lease Liabilities | ||
2022 | $ 3,818 | |
2023 | 2,766 | |
2024 | 2,602 | |
2025 | 2,310 | |
2026 | 1,910 | |
Thereafter | 1,002 | |
Total lease payments | 14,408 | |
Less: Imputed interest | (3,822) | |
Present value of lease liabilities | $ 10,586 | $ 13,887 |
LEASES - Lease Term and Discoun
LEASES - Lease Term and Discount Rate (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Weighted average remaining operating lease term (years) | 4 years 6 months 10 days | 4 years 11 months 26 days |
Weighted average discount rate for operating leases | 13.96% | 13.91% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Cash outflows related to operating leases | $ 4.9 | $ 4.5 |
RESTRUCTURING CHARGES - Summary
RESTRUCTURING CHARGES - Summary of Restructuring Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve | |||
Beginning balance | $ 0 | $ 2,876 | $ 5,819 |
Restructuring costs | 3,701 | 1,022 | 5,570 |
Adjustments of prior estimates | 1,022 | ||
Cash payments | (3,121) | (3,961) | (8,513) |
Other non-cash | 63 | ||
Ending balance | 580 | 0 | 2,876 |
Severance and benefits | |||
Restructuring Reserve | |||
Beginning balance | 0 | 0 | 1,430 |
Restructuring costs | 3,701 | 4,708 | |
Adjustments of prior estimates | 0 | ||
Cash payments | (3,121) | 0 | (6,138) |
Other non-cash | 0 | ||
Ending balance | 580 | 0 | 0 |
Facilities | |||
Restructuring Reserve | |||
Beginning balance | 0 | 2,876 | 4,389 |
Restructuring costs | 0 | 862 | |
Adjustments of prior estimates | 1,022 | ||
Cash payments | 0 | (3,961) | (2,375) |
Other non-cash | 63 | ||
Ending balance | $ 0 | $ 0 | $ 2,876 |
COMMON STOCK - Narrative (Detai
COMMON STOCK - Narrative (Details) - USD ($) $ in Thousands | Feb. 08, 2021 | Feb. 01, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Feb. 01, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares issued in connection with secondary equity offering (in shares) | 15,109,489 | |||||
Proceeds from issuance of common stock | $ 103,500 | $ 1,335 | $ 0 | $ 0 | ||
Proceeds from secondary offering, net | $ 96,800 | $ 96,756 | $ 0 | $ 0 | ||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 3 years | |||||
Shares granted (in shares) | 2,400,000 | 600,000 | 1,000,000 | |||
Unrecognized compensation cost related to stock options granted | $ 11,700 | |||||
Weighted-average period for recognition (in years) | 2 years | |||||
Awards vested, fair value | $ 2,100 | $ 4,000 | $ 5,100 | |||
Employee stock purchase plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares authorized (in shares) | 9,700,000 | |||||
Shares available for future equity grants (in shares) | 1,077,000 | 1,397,000 | 497,000 | |||
Common stock purchase price, percentage | 85.00% | |||||
Performance share units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Awards vested, fair value | $ 2,900 | $ 600 | $ 100 | |||
Market (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares granted (in shares) | 900,000 | 1,500,000 | 700,000 | |||
Unrecognized compensation cost related to stock options granted | $ 4,100 | |||||
Weighted-average period for recognition (in years) | 1 year | |||||
Market (PSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 1 year | |||||
Market (PSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 3 years | |||||
Performance PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares granted (in shares) | 500,000 | 300,000 | 0 | |||
Unrecognized compensation cost related to stock options granted | $ 1,800 | |||||
Weighted-average period for recognition (in years) | 1 year | |||||
2012 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares authorized (in shares) | 5,200,000 | |||||
Shares available for future equity grants (in shares) | 800,000 | |||||
Plan term | 7 years | |||||
2012 Long-Term Incentive Plan | Nonemployee director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 1 year | |||||
2012 Long-Term Incentive Plan | Minimum | Employee | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 3 years | |||||
2012 Long-Term Incentive Plan | Maximum | Employee | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 4 years | |||||
2012 Long-Term Incentive Plan | Stock options, PSUs, and Restricted Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares outstanding (in shares) | 4,400,000 | |||||
2021 Inducement Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares available for future equity grants (in shares) | 250,000 | 0 | ||||
2021 Inducement Plan | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Plan term | 7 years | |||||
2021 Inducement Plan | Restricted stock units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 2 years | |||||
2021 Inducement Plan | Restricted stock units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 4 years | |||||
2021 Inducement Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Plan term | 7 years | |||||
2021 Inducement Plan | Stock options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 2 years | |||||
2021 Inducement Plan | Stock options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Vesting period | 4 years |
COMMON STOCK - Schedule of Rese
COMMON STOCK - Schedule of Reserved Shares for Future Issuance under 2021 Inducement Plan (Details) - 2021 Inducement Plan shares in Thousands | 2 Months Ended |
Mar. 31, 2021shares | |
Stock Options | |
Shares available for issuance at beginning of period (in shares) | 0 |
Additional shares authorized during period (in shares) | 770 |
Shares issued during the period (in shares) | (520) |
Shares available for issuance at end of period (in shares) | 250 |
COMMON STOCK - Schedule of Re_2
COMMON STOCK - Schedule of Reserved Shares for Future Issuance under ESPP (Details) - Employee stock purchase plan - shares shares in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock Options | ||
Shares available for issuance at beginning of period (in shares) | 1,397 | 497 |
Additional shares authorized during period (in shares) | 0 | 900 |
Shares issued during the period (in shares) | (320) | 0 |
Shares available for issuance at end of period (in shares) | 1,077 | 1,397 |
COMMON STOCK - Schedule of Assu
COMMON STOCK - Schedule of Assumptions Used to Valuing Stock Purchase Plan (Details) - Employee stock purchase plan - $ / shares | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected life | 6 months | 6 months |
Volatility | 49.81% | |
Risk-free interest rate | 0.41% | |
Dividend yield | 0.00% | 0.00% |
Weighted-average grant date fair value (in dollars per share) | $ 4.78 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Volatility | 55.00% | |
Risk-free interest rate | 0.05% | |
Weighted-average grant date fair value (in dollars per share) | $ 4.99 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Volatility | 133.00% | |
Risk-free interest rate | 0.11% | |
Weighted-average grant date fair value (in dollars per share) | $ 8.05 |
COMMON STOCK - Fair Value Assum
COMMON STOCK - Fair Value Assumptions PSUs (Details) - Market (PSUs) - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Discount period (years) | 2 years 6 months 14 days | 3 years | 1 year 11 months 12 days |
Risk-free interest rate | 0.31% | 1.45% | 2.63% |
Stock price volatility | 82.00% | 72.00% | 69.35% |
Grant date fair value (in dollars per share) | $ 3.77 | $ 5.92 | $ 1.70 |
COMMON STOCK - Schedule of Perf
COMMON STOCK - Schedule of Performance Stock Unit Activity (Details) - Performance share units shares in Thousands | 12 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 1,944 |
Granted (in shares) | shares | 1,346 |
Vested (in shares) | shares | (745) |
Forfeited or cancelled (in shares) | shares | (190) |
Ending balance (in shares) | shares | 2,355 |
Weighted-Average Grant Date Fair Value per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 4.09 |
Granted (in dollars per share) | $ / shares | 3.67 |
Vested (in dollars per share) | $ / shares | 3.94 |
Forfeited or cancelled (in dollars per share) | $ / shares | 4.66 |
Ending balance (in dollars per share) | $ / shares | $ 3.85 |
COMMON STOCK - Schedule of Rest
COMMON STOCK - Schedule of Restricted Stock Activity (Details) - Restricted stock units shares in Thousands | 12 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 986 |
Granted (in shares) | shares | 2,440 |
Vested (in shares) | shares | (518) |
Forfeited or cancelled (in shares) | shares | (198) |
Ending balance (in shares) | shares | 2,710 |
Weighted-Average Grant Date Fair Value per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 3.42 |
Granted (in dollars per share) | $ / shares | 4.41 |
Vested (in dollars per share) | $ / shares | 3.99 |
Forfeited or cancelled (in dollars per share) | $ / shares | 3.78 |
Ending balance (in dollars per share) | $ / shares | $ 4.17 |
COMMON STOCK - Schedule of Shar
COMMON STOCK - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based compensation expense: | |||
Total share-based compensation | $ 9,624 | $ 6,748 | $ 3,409 |
Restricted stock units | |||
Share-based compensation expense: | |||
Total share-based compensation | 4,041 | 3,610 | 3,178 |
Performance share units | |||
Share-based compensation expense: | |||
Total share-based compensation | 4,904 | 3,103 | 231 |
Employee stock purchase plan | |||
Share-based compensation expense: | |||
Total share-based compensation | 679 | 35 | 0 |
Cost of revenue | |||
Share-based compensation expense: | |||
Total share-based compensation | 672 | 452 | 334 |
Research and development | |||
Share-based compensation expense: | |||
Total share-based compensation | 2,881 | 984 | 440 |
Sales and marketing | |||
Share-based compensation expense: | |||
Total share-based compensation | 1,757 | 1,165 | 179 |
General and administrative | |||
Share-based compensation expense: | |||
Total share-based compensation | $ 4,314 | $ 4,147 | $ 2,456 |
NET LOSS PER SHARE - Net Loss P
NET LOSS PER SHARE - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | |||
Net loss | $ (35,459) | $ (5,210) | $ (42,797) |
Denominator: | |||
Weighted average shares - basic and diluted (in shares) | 42,852 | 37,593 | 35,551 |
Net loss per share - basic and diluted (in dollars per share) | $ (0.83) | $ (0.14) | $ (1.20) |
NET LOSS PER SHARE - Anti-dilut
NET LOSS PER SHARE - Anti-dilutive shares excluded from the computations of diluted net income (loss) (Details) (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares excluded (in shares) | 8,402 | 7,466 | 4,964 |
Stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares excluded (in shares) | 1,818 | 931 | 307 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares excluded (in shares) | 6,573 | 6,312 | 4,657 |
Employee stock purchase plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares excluded (in shares) | 11 | 223 | 0 |
NET LOSS PER SHARE - Narrative
NET LOSS PER SHARE - Narrative (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares excluded (in shares) | 8,402 | 7,466 | 4,964 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares excluded (in shares) | 500 |
INCOME TAXES - Schedule of Pre-
INCOME TAXES - Schedule of Pre-tax Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (36,648) | $ (6,318) | $ (40,935) |
Foreign | 1,428 | 1,911 | 514 |
Net loss before income taxes | $ (35,220) | $ (4,407) | $ (40,421) |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current tax expense | |||
Federal | $ (76) | $ (115) | $ (217) |
State | 339 | 106 | 31 |
Foreign | 747 | 1,271 | 1,103 |
Total current tax expense | 1,010 | 1,262 | 917 |
Deferred tax expense | |||
Federal | (577) | 0 | 0 |
State | 9 | 33 | 32 |
Foreign | (203) | (492) | 1,427 |
Total deferred tax expense (benefit) | (771) | (459) | 1,459 |
Income tax provision | $ 239 | $ 803 | $ 2,376 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Rate Reconciliation Amount (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Expiration of attributes | $ 9,862 | $ 11,679 | $ 12,268 |
Valuation allowance | 5,444 | (2,639) | 10,913 |
Permanent items | 1,295 | 914 | 359 |
Equity compensation | 345 | 280 | 905 |
Tax reform | 0 | 0 | (207) |
Credit monetization | 0 | 0 | 0 |
Foreign taxes | (129) | 1,612 | (2,133) |
State income taxes | (969) | (20) | (997) |
Research and development credits | (1,829) | (1,566) | (879) |
Uncertain tax positions | (6,695) | (8,654) | (9,278) |
Expense at the federal statutory rate | (7,396) | (925) | (8,488) |
Other | 311 | 122 | (87) |
Income tax provision | $ 239 | $ 803 | $ 2,376 |
INCOME TAXES - Schedule of Co_2
INCOME TAXES - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets | ||
Loss carryforwards | $ 76,153 | $ 85,638 |
Deferred revenue | 21,839 | 17,043 |
Tax credits | 16,574 | 17,416 |
Disallowed interest | 12,132 | 8,958 |
Other accruals and reserves not currently deductible for tax purposes | 8,192 | 16,339 |
Capitalized research and development | 7,811 | 0 |
Lease obligations | 1,747 | 3,413 |
Inventory | 1,374 | 924 |
Accrued warranty expense | 569 | 650 |
Acquired intangibles | 454 | 2,660 |
Gross deferred tax assets | 146,845 | 153,041 |
Valuation allowance | (143,263) | (137,814) |
Total deferred tax assets, net of valuation allowance | 3,582 | 15,227 |
Deferred tax liabilities | ||
Depreciation | (1,440) | (1,440) |
Lease assets | (1,670) | (3,413) |
Other | (1,013) | (967) |
Total deferred tax liabilities | (4,123) | (5,820) |
Net deferred tax assets (liabilities) | $ (541) | |
Net deferred tax assets (liabilities) | $ 9,407 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Beginning Balance | $ 107,282 | $ 116,032 | $ 150,559 |
Increase in balances related to tax positions in current period | 2,560 | 2,275 | 1,718 |
Increase in balances related to tax positions in prior period | 0 | 144 | 0 |
Increase in balances related to acquisitions | 511 | 0 | 0 |
Decrease in balances related to tax positions in prior period | (522) | (4) | (25,095) |
Decrease in balances due to lapse in statute of limitations | (8,712) | (11,165) | (11,150) |
Ending balance | $ 101,119 | $ 107,282 | $ 116,032 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Examination | ||||
Federal statutory rate (as a percent) | 21.00% | |||
(Decrease) increase in valuation allowance | $ 5,449 | $ (2,545) | $ 10,311 | |
Increase in balances related to tax positions in prior period | 6,200 | |||
Total unrecognized tax benefit including interest and penalties | 102,200 | |||
Unrecognized tax benefits that would impact effective tax rate | 83,900 | |||
Accrued interest and penalties | 1,200 | |||
Unrecognized tax benefits | 101,119 | $ 107,282 | $ 116,032 | $ 150,559 |
Increase in unrecognized tax benefits is reasonably possible | 9,100 | |||
Federal net operating loss | 293,200 | |||
Tax credit carryforwards | 59,500 | |||
Indefinite lived operating loss carry forward | 12,800 | |||
Acquired net operating losses included in carryforwards | 11,100 | |||
Acquired credits included in carryforwards | 8,000 | |||
Foreign currency related income tax benefit | 600 | |||
Other long-term assets | ||||
Income Tax Examination | ||||
Unrecognized tax benefits | 95,500 | |||
Other long-term liabilities | ||||
Income Tax Examination | ||||
Unrecognized tax benefits | $ 6,700 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining purchase commitments | $ 39.6 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Revolving Credit Agreement with PNC | Line of Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amended PNC Credit Facility | $ 0 | $ 2,620 |
Carrying value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior Secured Term Loan | 92,426 | 165,208 |
Carrying value | Revolving Credit Agreement with PNC | Level 2 | Line of Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amended PNC Credit Facility | 0 | 2,620 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior Secured Term Loan | 97,047 | 151,678 |
Fair Value | Revolving Credit Agreement with PNC | Level 2 | Line of Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amended PNC Credit Facility | $ 0 | $ 2,226 |