Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | QUANTUM CORP /DE/ | |
Entity Central Index Key | 709,283 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | QTM | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 263,919,475 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 46,229 | $ 67,948 |
Restricted cash | 19,042 | 2,621 |
Accounts receivable, net of allowance for doubtful accounts of $41 and $27, respectively | 92,263 | 124,159 |
Manufacturing inventories | 37,992 | 50,274 |
Service parts inventories | 23,267 | 24,640 |
Other current assets | 12,091 | 11,942 |
Total current assets | 230,884 | 281,584 |
Long-term assets: | ||
Property and equipment, less accumulated depreciation | 14,697 | 14,653 |
Intangible assets, less accumulated amortization | 546 | 731 |
Goodwill | 55,613 | 55,613 |
Other long-term assets | 3,645 | 4,577 |
Total long-term assets | 74,501 | 75,574 |
Total Assets | 305,385 | 357,158 |
Current liabilities: | ||
Accounts payable | 56,707 | 54,367 |
Accrued warranty | 3,473 | 4,219 |
Deferred revenue, current | 85,310 | 95,899 |
Accrued restructuring charges, current | 1,868 | 3,855 |
Convertible subordinated debt, current, net of unamortized debt issuance costs of $78 and $390, respectively | 17,540 | 83,345 |
Accrued compensation | 24,585 | 35,414 |
Other accrued liabilities | 14,216 | 20,740 |
Total current liabilities | 203,699 | 297,839 |
Long-term liabilities: | ||
Deferred revenue, long-term | 33,692 | 39,532 |
Accrued restructuring charges, long-term | 961 | 991 |
Convertible subordinated debt, long-term, net of unamortized debt issuance costs of $977 and $1,207, respectively | 135,140 | 68,793 |
Other long-term liabilities | 10,352 | 10,441 |
Total long-term liabilities | 180,145 | 119,757 |
Stockholders' deficit: | ||
Common stock, $0.01 par value; 1,000,000 shares authorized; 263,893 and 258,208 shares issued and outstanding at September 30, 2015 and March 31, 2015, respectively | 2,639 | 2,582 |
Capital in excess of par | 460,093 | 456,411 |
Accumulated deficit | (545,293) | (523,311) |
Accumulated other comprehensive income | 4,102 | 3,880 |
Total stockholders’ deficit | (78,459) | (60,438) |
Total liabilities and stockholders' deficit | $ 305,385 | $ 357,158 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 41 | $ 27 |
Unamortized debt issuance costs, current | 78 | 390 |
Unamortized debt issuance costs, long-term | $ 977 | $ 1,207 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 263,893,000 | 258,208,000 |
Common stock, shares outstanding | 263,893,000 | 258,208,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Product revenue | $ 71,057 | $ 85,216 | $ 133,776 | $ 165,410 |
Service revenue | 37,247 | 39,157 | 75,186 | 77,657 |
Royalty revenue | 8,721 | 10,733 | 18,919 | 20,167 |
Total revenue | 117,025 | 135,106 | 227,881 | 263,234 |
Cost of product revenue | 53,073 | 55,593 | 100,037 | 110,501 |
Cost of service revenue | 17,635 | 17,584 | 34,562 | 35,278 |
Total cost of revenue | 70,708 | 73,177 | 134,599 | 145,779 |
Gross margin | 46,317 | 61,929 | 93,282 | 117,455 |
Operating expenses: | ||||
Research and development | 13,370 | 15,157 | 26,693 | 29,711 |
Sales and marketing | 28,043 | 28,218 | 55,648 | 55,923 |
General and administrative | 14,136 | 14,085 | 28,122 | 28,456 |
Restructuring charges | 387 | 624 | 645 | 1,489 |
Total operating expenses | 55,936 | 58,084 | 111,108 | 115,579 |
Gain on sale of assets | 0 | 0 | 0 | 462 |
Income (loss) from operations | (9,619) | 3,845 | (17,826) | 2,338 |
Other income and expense | 714 | 215 | 428 | 90 |
Interest expense | (1,975) | (2,456) | (3,898) | (4,900) |
Income (loss) before income taxes | (10,880) | 1,604 | (21,296) | (2,472) |
Income tax provision | 347 | 356 | 686 | 604 |
Net income (loss) | $ (11,227) | $ 1,248 | $ (21,982) | $ (3,076) |
Basic and diluted net income (loss) per share (usd per share) | $ (0.04) | $ 0 | $ (0.08) | $ (0.01) |
Weighted average shares: Basic (in shares) | 263,058 | 254,760 | 260,766 | 252,724 |
Weighted average shares: Diluted (in shares) | 263,058 | 257,579 | 260,766 | 252,724 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (11,227) | $ 1,248 | $ (21,982) | $ (3,076) |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments | (340) | (1,101) | 101 | (1,092) |
Net unrealized gain on revaluation of long-term intercompany balances | 207 | 225 | 121 | 283 |
Total other comprehensive income (loss) | (133) | (876) | 222 | (809) |
Total comprehensive income (loss) | $ (11,360) | $ 372 | $ (21,760) | $ (3,885) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (21,982) | $ (3,076) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 3,361 | 4,272 |
Amortization of intangible assets | 185 | 3,377 |
Amortization of debt issuance costs | 648 | 829 |
Service parts lower of cost or market adjustment | 3,050 | 2,007 |
Gain on sale of assets | 0 | (462) |
Deferred income taxes | 35 | (50) |
Share-based compensation | 5,100 | 5,737 |
Changes in assets and liabilities, net of effect of acquisition: | ||
Accounts receivable | 31,896 | 8,723 |
Manufacturing inventories | 10,050 | (3,213) |
Service parts inventories | (526) | (687) |
Accounts payable | 1,624 | 390 |
Accrued warranty | (746) | (826) |
Deferred revenue | (16,429) | (11,867) |
Accrued restructuring charges | (2,017) | (1,393) |
Accrued compensation | (10,871) | 2,151 |
Other assets and liabilities | (5,723) | 2,639 |
Net cash provided by (used in) operating activities | (2,345) | 8,551 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,611) | (1,912) |
Proceeds from sale of assets | 0 | 462 |
Change in restricted cash | (110) | (69) |
Return of principal from other investments | 0 | 104 |
Payment for business acquisition, net of cash acquired | 0 | (517) |
Net cash used in investing activities | (1,721) | (1,932) |
Cash flows from financing activities: | ||
Restricted cash to repay convertible subordinated debt | (16,280) | 0 |
Payment of taxes due upon vesting of restricted stock | (3,101) | (2,187) |
Proceeds from issuance of common stock | 1,740 | 1,533 |
Net cash used in financing activities | (17,641) | (654) |
Effect of exchange rate changes on cash and cash equivalents | (12) | (59) |
Net increase (decrease) in cash and cash equivalents | (21,719) | 5,906 |
Cash and cash equivalents at beginning of period | 67,948 | 99,125 |
Cash and cash equivalents at end of period | 46,229 | 105,031 |
Supplemental disclosure of cash flow information: | ||
Purchases of property and equipment included in accounts payable | $ 1,136 | $ 237 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Quantum Corporation (“Quantum”, the “Company”, “us” or “we”) is a leading expert in scale-out storage, archive and data protection, providing solutions for capturing, sharing, transforming and preserving digital assets over the entire data lifecycle. Our customers, ranging from small businesses to large/multi-national enterprises, trust us to address their most demanding content workflow challenges. We provide solutions for storing and protecting information in physical, virtual and cloud environments that are designed to help customers Be Certain ™ that they have an end-to-end storage foundation to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. We work 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. Our stock is traded on the New York Stock Exchange under the symbol QTM. The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Quantum and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. In the Condensed Consolidated Balance Sheets, prior period convertible subordinated debt, current and long-term, have been presented net of debt issuance costs to conform to current period presentation. The interim financial statements reflect all adjustments, consisting of normal recurring adjustments that, in the opinion of management, are necessary for a fair statement of the results for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for the full fiscal year. The Condensed Consolidated Balance Sheet as of March 31, 2015 has been derived from the audited financial statements at that date, but it does not include all disclosures required by accounting principles generally accepted in the United States for complete financial statements. The accompanying financial statements should be read in conjunction with the audited Consolidated Financial Statements for the fiscal year ended March 31, 2015 included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on June 12, 2015. Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected by ASU 2015-03. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2015-03 in the first quarter of fiscal 2016 and reclassified debt issuance costs from other current and long-term assets to convertible subordinated debt on the Condensed Consolidated Balance Sheets. Adoption did not otherwise impact our statements of financial position or results of operations. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. ASU 2014-09 will become effective for us beginning April 1, 2018, or fiscal 2019. We are currently evaluating the guidance to determine the potential impact on our financial condition, results of operations, cash flows and financial statement disclosures. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Topic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires that management assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. We plan to adopt ASU 2014-15 as of the end of our fiscal year ending March 31, 2017 and do not anticipate adoption will impact our statements of financial position or results of operations. In April 2015, the FASB issued ASU No. 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"). ASU 2015-05 requires that customers apply the same criteria as vendors to determine whether a cloud computing arrangement ("CCA") contains a software license or is solely a service contract. Under ASU 2015-05, fees paid by a customer in a CCA will be within the scope of internal-use software guidance if both of the following criteria are met: 1) the customer has the contractual right to take possession of the software at any time without significant penalty, and 2) it is feasible for the customer to run the software on its own hardware (or to contract with another party to host the software). ASU 2015-05 will be effective for us beginning April 1, 2016, or fiscal 2017. We do not anticipate adoption will impact our statements of financial position or results of operations. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) ("ASU 2015-11"). ASU 2015-11 requires that an entity measure all inventory at the lower of cost and net realizable value, except for inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. ASU 2015-11 will become effective for us beginning April 1, 2017, or fiscal 2018. We are currently evaluating the guidance to determine the potential impact on our financial condition, results of operations, cash flows and financial statement disclosures. |
ACQUISITION
ACQUISITION | 6 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION On July 29, 2014, we acquired a majority of the assets of Symform, Inc., a Washington corporation, for cash of approximately $0.5 million . The assets, consisting primarily of Symform technology, were recorded as purchased technology and are expected to enhance our cloud software capabilities and service offerings for data protection and scale-out storage. This acquisition was recorded as a business combination and the effect was not material to our financial position, results of operations or cash flows. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Our assets measured and recorded at fair value on a recurring basis consist of money market funds, which are included in cash and cash equivalents in our Condensed Consolidated Balance Sheets and are valued using quoted market prices (level 1 fair value measurements) at the respective balance sheet dates (in thousands): As of September 30, 2015 March 31, 2015 Money market funds $ 6,154 $ 34,278 We did not record impairments to any non-financial assets in the second quarter or first six months of fiscal 2016 or 2015 . We do not have any non-financial liabilities measured and recorded at fair value on a non-recurring basis. Our financial liabilities were comprised primarily of convertible subordinated debt at September 30, 2015 and March 31, 2015 . The carrying value and fair value based on quoted market prices in less active markets (level 2 fair value measurement) were as follows (in thousands): As of September 30, 2015 March 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Convertible subordinated debt $ 152,680 $ 142,811 $ 152,138 $ 166,551 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Manufacturing inventories and service parts inventories consisted of the following (in thousands): As of September 30, 2015 March 31, 2015 Manufacturing inventories: Finished goods $ 20,246 $ 28,022 Work in process 105 58 Materials and purchased parts 17,641 22,194 $ 37,992 $ 50,274 As of September 30, 2015 March 31, 2015 Service parts inventories: Finished goods $ 18,675 $ 18,143 Component parts 4,592 6,497 $ 23,267 $ 24,640 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 6 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL We evaluate our amortizable and indefinite-lived intangible assets (“long-lived assets”) for impairment whenever indicators of impairment exist. We concluded the carrying amount of our long-lived assets was recoverable and there was no impairment in the second quarter or first six months of fiscal 2016 or 2015 . The following provides a summary of the carrying value of intangible assets (in thousands): As of September 30, 2015 March 31, 2015 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Purchased technology $ 179,992 $ (179,446 ) $ 546 $ 179,992 $ (179,261 ) $ 731 Trademarks 3,900 (3,900 ) — 3,900 (3,900 ) — Customer lists 66,219 (66,219 ) — 66,219 (66,219 ) — $ 250,111 $ (249,565 ) $ 546 $ 250,111 $ (249,380 ) $ 731 We evaluate goodwill for impairment annually during the fourth quarter of our fiscal year, or more frequently when indicators of impairment are present. There were no changes to goodwill balances during the second quarter or first six months of fiscal 2016 . The following table provides a summary of the goodwill balance at both September 30, 2015 and March 31, 2015 (in thousands): Goodwill Accumulated Impairment Losses Net Amount Balance $ 394,613 $ (339,000 ) $ 55,613 |
ACCRUED WARRANTY
ACCRUED WARRANTY | 6 Months Ended |
Sep. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
ACCRUED WARRANTY | ACCRUED WARRANTY The changes in the accrued warranty balance were (in thousands): Three Months Ended Six Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Beginning balance $ 3,600 $ 5,898 $ 4,219 $ 6,116 Additional warranties issued 1,523 1,519 3,130 3,247 Adjustments for warranties issued in prior fiscal years 298 (243 ) (69 ) 140 Settlements (1,948 ) (1,884 ) (3,807 ) (4,213 ) Ending balance $ 3,473 $ 5,290 $ 3,473 $ 5,290 We warrant our products against certain defects for one to three years. A provision for estimated future costs and estimated returns for repair or replacement relating to warranty is recorded when products are shipped and revenue recognized. Our estimate of future costs to satisfy warranty obligations is primarily based on historical trends and, if believed to be significantly different from historical trends, estimates of future failure rates and future costs of repair. Future costs of repair include materials consumed in the repair, labor and overhead amounts necessary to perform the repair. If we determine in a future period that either actual failure rates or actual costs of repair were to differ from our estimates, we record the impact of those differences in that future period. |
DEBT
DEBT | 6 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On August 7, 2015, our credit agreement with Wells Fargo (as amended, the “WF credit agreement”) was amended to modify the maturity date, increase the amount of foreign accounts receivable and intellectual property assets included in our borrowing base and add an additional liquidity covenant. Under the WF credit agreement, we have the ability to borrow the lesser of $75 million or the amount of the monthly borrowing base under a senior secured revolving credit facility. We may use proceeds from the WF credit agreement to repay our 3.50% convertible subordinated notes due November 15, 2015 ("3.50% notes") so long as we have a fixed charge coverage ratio of at least 1.5 , liquidity of at least $25 million and no default or event of default is continuing under the WF credit agreement on the date of repayment. We have letters of credit totaling $1.0 million , reducing the maximum amount available to borrow to $74.0 million at September 30, 2015 . As of September 30, 2015 , and during the second quarter and first six months of fiscal 2016, we were in compliance with all covenants and had no outstanding balance on the line of credit. Quarterly , we are required to pay a 0.375% commitment fee on undrawn amounts under the revolving credit facility. The 3.50% notes are included in convertible subordinated debt, current and long-term, as they are due November 15, 2015 but are being repaid using a combination of existing cash and borrowings from our WF credit agreement which matures March 29, 2017. The WF credit agreement contains financial covenants and customary events of default for such securities, including cross-payment default and cross-acceleration to other material indebtedness for borrowed money which require notice from the trustee or holders of at least 25% of the notes and are subject to a cure period upon receipt of such notice. Average liquidity must exceed $15 million each month, and at all times we must maintain minimum liquidity of $10 million , at least $5 million of which must be excess availability under the WF revolving credit facility. The fixed charge coverage ratio is required to be greater than 1.2 for the 12 month period ending on the last day of any month in which the covenant is applicable. This covenant is applicable only in months in which borrowings exceed $5 million at any time during the month. To avoid triggering mandatory field audits and Wells Fargo controlling our cash receipts, we must maintain liquidity of at least $20 million at all times. The fixed charge coverage ratio, average liquidity, liquidity and excess availability are each defined in the WF credit agreement and/or amendments thereto. Certain schedules in the compliance certificate must be filed monthly if borrowings exceed $5 million ; otherwise they are to be filed quarterly. On October 5, 2015, we entered into a private transaction with a note holder to purchase $81.0 million of aggregate principal amount of the 3.50% notes for $82.4 million , which included $1.1 million of accrued interest. In connection with this transaction, during the third quarter of fiscal 2016, we will record a loss on debt extinguishment of $0.4 million comprised of a loss of $0.3 million from the notes purchased and $0.1 million of unamortized debt issuance costs related to the purchased notes. We used a combination of $66.1 million of proceeds from the WF credit agreement and $16.3 million of cash on hand to fund the purchase and pay the accrued interest. At September 30, 2015, we had $16.3 million of restricted cash deposited in a Wells Fargo controlled account to repay the 3.50% notes and related interest. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 6 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES The types of restructuring expense for the three and six months ended September 30, 2015 and September 30, 2014 were (in thousands): Three Months Ended Six Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Severance and benefits $ 155 $ (20 ) $ 227 $ 105 Facilities 232 647 418 1,374 Other — (3 ) — 10 Total $ 387 $ 624 $ 645 $ 1,489 For the second quarter of fiscal 2016, restructuring charges were largely due to facilities costs incurred as a result of a change in the estimate of lease payments for our facilities in the U.S. Additionally, for the first six months of fiscal 2016, we incurred restructuring charges related to facilities costs as a result of further consolidating our facilities in the U.S. For the second quarter and first six months of fiscal 2015, restructuring charges were primarily due to facilities costs as a result of further consolidating our facilities in the U.S. Accrued Restructuring The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands): Three Months Ended September 30, 2015 Severance and Benefits Facilities Total Balance as of June 30, 2015 $ 102 $ 3,453 $ 3,555 Restructuring costs 120 95 215 Adjustment of prior estimates 35 137 172 Cash payments — (1,113 ) (1,113 ) Balance as of September 30, 2015 $ 257 $ 2,572 $ 2,829 Six Months Ended September 30, 2015 Severance Facilities Total Balance as of March 31, 2015 $ 189 $ 4,657 $ 4,846 Restructuring costs 223 394 617 Adjustment of prior estimates 4 24 28 Cash payments (159 ) (2,546 ) (2,705 ) Other non-cash — 43 43 Balance as of September 30, 2015 $ 257 $ 2,572 $ 2,829 As of September 30, 2015 Severance and Benefits Facilities Total Estimated timing of future payouts: Next twelve months $ 122 $ 1,746 $ 1,868 October 2016 through December 2021 135 826 961 $ 257 $ 2,572 $ 2,829 Facility restructuring accruals will be paid in accordance with the respective facility lease terms and amounts above are net of estimated sublease amounts. |
STOCK INCENTIVE PLANS AND SHARE
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION | 6 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION | STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION Share-Based Compensation The following table summarizes share-based compensation (in thousands): Three Months Ended Six Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Share-based compensation: Cost of revenue $ 331 $ 333 $ 693 $ 747 Research and development 492 603 1,041 1,383 Sales and marketing 839 887 1,709 1,797 General and administrative 785 846 1,657 1,810 $ 2,447 $ 2,669 $ 5,100 $ 5,737 Share-based compensation by type of award: Stock options $ — $ 154 $ 2 $ 311 Restricted stock 2,167 2,315 4,597 5,013 Stock purchase plan 280 200 501 413 $ 2,447 $ 2,669 $ 5,100 $ 5,737 Stock Incentive Plans - Grants and Fair Value Stock Options No stock options were granted during the second quarter or first six months of fiscal 2016 or 2015 . The Black-Scholes option pricing model is used to estimate the fair value of stock options. Restricted Stock Units The fair value of restricted stock units (“RSUs”) granted is the intrinsic value as of the respective grant date since the RSUs are granted at no cost to the employee. The weighted-average grant date fair values of RSUs granted during the second quarter and first six months of 2016 were $1.63 and $1.64 per share, respectively. The weighted-average grant date fair value of RSUs granted during the second quarter and first six months of fiscal 2015 was $1.25 per share. During the second quarter of fiscal 2015, we granted 2.4 million RSUs with performance conditions (“2015 performance RSUs”), and the total fair value of 2015 performance RSUs at the grant date was $3.0 million . These RSUs became eligible for vesting based on Quantum achieving certain revenue and operating income targets through the end of fiscal 2015. During the second quarter and first six months of fiscal 2016 , shared-based compensation expense of $0.1 million and $0.2 million , respectively, was recognized for 2015 performance RSUs. During the second quarter and first six months of fiscal 2015, share-based compensation expense for these RSUs was immaterial. During the second quarter of fiscal 2016, we granted 1.5 million RSUs with performance conditions (“2016 performance RSUs”), and the total fair value of 2016 performance RSUs at the grant date was $2.6 million . These RSUs will become eligible for vesting based on Quantum achieving certain revenue and operating income targets through the end of fiscal 2016. Share-based compensation expense for 2016 performance RSUs is recognized when it is probable that the performance conditions will be achieved. As of September 30, 2015, no share-based compensation expense was recognized for these performance RSUs. Stock Purchase Plan Under the Stock Purchase Plan, rights to purchase shares are typically granted during the second and fourth quarter of each fiscal year. The value of rights to purchase shares granted in the second quarter and first six months of fiscal 2016 and fiscal 2015, respectively, was estimated at the date of grant using the Black-Scholes option pricing model. The weighted-average grant date fair values and the assumptions used in calculating fair values for the three and six month periods ended September 30, 2015 and 2014 were as follows: Three and Six Months Ended September 30, 2015 September 30, 2014 Option life (in years) 0.5 0.5 Risk-free interest rate 0.09 % 0.06 % Stock price volatility 64.61 % 32.19 % Weighted-average grant date fair value per share $ 0.38 $ 0.30 Stock Incentive Plans - Activity Stock Options A summary of activity relating to our stock options follows (options and aggregate intrinsic value in thousands): Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of March 31, 2015 4,944 $ 1.47 Exercised (252 ) 1.05 Forfeited (5 ) 0.58 Expired (176 ) 1.80 Outstanding as of September 30, 2015 4,511 $ 1.48 1.30 $ 10 Vested and expected to vest at September 30, 2015 4,511 $ 1.48 1.30 $ 10 Exercisable as of September 30, 2015 4,511 $ 1.48 1.30 $ 10 Restricted Stock Units A summary of activity relating to our restricted stock units follows (shares in thousands): Shares Weighted-Average Grant Date Fair Value Per Share Nonvested at March 31, 2015 13,791 $ 1.34 Granted 6,542 1.64 Vested (5,814 ) 1.46 Forfeited (424 ) 1.39 Nonvested at September 30, 2015 14,095 $ 1.43 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax provisions for the second quarter and first six months of fiscal 2016 were $0.3 million and $0.7 million , respectively. Income tax provisions for the second quarter and first six months of fiscal 2015 were $0.4 million and $0.6 million , respectively. Income tax provisions for each of these periods reflect expenses for foreign income taxes and state taxes. We have provided a full valuation allowance against our U.S. net deferred tax assets due to our history of net losses, difficulty in predicting future results and our conclusion that we cannot rely on projections of future taxable income to realize the deferred tax assets. Significant management judgment is required in determining our deferred tax assets and liabilities and valuation allowances for purposes of assessing our ability to realize any future benefit from our net deferred tax assets. We intend to maintain this valuation allowance until sufficient positive evidence exists to support a reversal or decrease in this allowance. Future income tax expense will be reduced to the extent that we have sufficient positive evidence to support a reversal of, or decrease in, our valuation allowance. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 6 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE The following is the computation of basic and diluted income (loss) per share (in thousands, except per share data): Three Months Ended Six Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Numerator: Net income (loss) $ (11,227 ) $ 1,248 $ (21,982 ) $ (3,076 ) Denominator: Weighted average shares: Basic 263,058 254,760 260,766 252,724 Dilutive shares from stock plans — 2,819 — — Diluted 263,058 257,579 260,766 252,724 Basic and diluted net income (loss) per share $ (0.04 ) $ 0.00 $ (0.08 ) $ (0.01 ) Dilutive and potentially dilutive common shares from the Stock Incentive Plans are determined by applying the treasury stock method to the assumed exercise of outstanding options and the assumed vesting of outstanding restricted stock units. The dilutive impact related to our convertible subordinated notes is determined by applying the if-converted method, which includes adding the related weighted average shares to the denominator and the related interest expense to net income. The computations of diluted net income (loss) per share for the periods presented exclude the following because the effect would have been anti-dilutive: • For the second quarter and first six months of fiscal 2016 and 2015, 42.5 million weighted average shares related to our 4.50% convertible subordinated notes were excluded. For the second quarter of fiscal 2016 and 2015, $0.9 million of related interest expense was excluded. For the first six months of fiscal 2016 and 2015, $1.8 million of related interest expense was excluded. • For the second quarter and first six months of fiscal 2016, 19.3 million weighted average shares related to our 3.50% convertible subordinated notes were excluded. For the second quarter and first six months of fiscal 2015, 30.9 million weighted average shares related to these notes were excluded. For the second quarter and first six months of fiscal 2016, $0.9 million and $1.8 million , respectively, of related interest expense was excluded. For the second quarter and first six months of fiscal 2015, $1.4 million and $ 2.8 million of related interest expense was excluded. • For the second quarter and first six months of fiscal 2016 , options to purchase 4.6 million and 4.7 million , respectively, weighted average shares were excluded. For the second quarter and first six months of fiscal 2015, options to purchase 2.3 million and 7.0 million , respectively, weighted average shares were excluded. • For the second quarter and first six months of fiscal 2016 , unvested RSUs of 12.1 million and 12.6 million , respectively, weighted average shares were excluded. For the second quarter and first six months of fiscal 2015, unvested RSUs of 0.2 million and 12.0 million , respectively, weighted average shares were excluded. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments During the second quarter of fiscal 2016, we negotiated a five year extension of an operating lease on a building in Irvine, California, which increased our future minimum lease payments under non-cancelable lease agreements by $3.7 million . Commitments to Purchase Inventory We use contract manufacturers for our manufacturing operations. Under these arrangements, the contract manufacturer procures inventory to manufacture products based upon our forecast of customer demand. We have similar arrangements with certain other suppliers. We are 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 September 30, 2015 and March 31, 2015, we had issued non-cancelable commitments for $27.5 million and $46.0 million , respectively, to purchase inventory from our contract manufacturers and suppliers. Legal Proceedings On February 18, 2014, Crossroads Systems, Inc. (“Crossroads”) filed a patent infringement lawsuit against Quantum in the U.S. District Court for the Western District of Texas, alleging infringement of U.S. patents 6,425,035 and 7,934,041. An amended complaint filed on April 15, 2014 also alleged infringement of U.S. patent 7,051,147. Crossroads asserts that we have incorporated Crossroads' patented technology into our StorNext QX and Q-Series lines of disk array products and into our Scalar libraries. Crossroads seeks unspecified monetary damages and injunctive relief. Crossroads has already dismissed all claims of infringement with respect to the StorNext QX and Q-Series products. In July and September of 2014, we filed for Inter Partes Review of all three asserted Crossroads patents before the Patent Trial and Appeal Board and a review has been initiated for all claims. On June 16, 2015, the U.S. District Court, Western District of Texas stayed the Crossroads trial proceedings pending resolution of the Inter Partes Review proceedings. We believe the probability that this lawsuit will have a material adverse effect on our business, operating results or financial condition is remote. On September 23, 2014, we filed a lawsuit against Crossroads in the U.S. District Court for the Northern District of California alleging patent infringement of our patent 6,766,412 by Crossroads' StrongBox VSeries Library Solution product. We are seeking injunctive relief and the recovery of monetary damages. On December 4, 2014, we amended our complaint alleging infringement of a second patent, 5,940,849, related to Crossroads' SPHiNX product line. On December 16, 2014, we withdrew the amended complaint alleging infringement of the second patent, 5,940,849. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On November 6, 2015, we approved a plan to eliminate approximately 65 positions and reduce other expenses to improve our cost structure in order to align spending with revenue expectations. These actions are expected to be completed by March 31, 2016, with the majority occurring by December 31, 2015. The costs associated with these actions consist of one-time termination benefits. Our preliminary estimate of these costs is approximately $2 million , substantially all of which will result in future cash expenditures. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured and recorded at fair value on a recurring basis | Our assets measured and recorded at fair value on a recurring basis consist of money market funds, which are included in cash and cash equivalents in our Condensed Consolidated Balance Sheets and are valued using quoted market prices (level 1 fair value measurements) at the respective balance sheet dates (in thousands): As of September 30, 2015 March 31, 2015 Money market funds $ 6,154 $ 34,278 |
Schedule of carrying value and fair value of financial liabilities | Our financial liabilities were comprised primarily of convertible subordinated debt at September 30, 2015 and March 31, 2015 . The carrying value and fair value based on quoted market prices in less active markets (level 2 fair value measurement) were as follows (in thousands): As of September 30, 2015 March 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Convertible subordinated debt $ 152,680 $ 142,811 $ 152,138 $ 166,551 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of manufacturing inventories | Manufacturing inventories and service parts inventories consisted of the following (in thousands): As of September 30, 2015 March 31, 2015 Manufacturing inventories: Finished goods $ 20,246 $ 28,022 Work in process 105 58 Materials and purchased parts 17,641 22,194 $ 37,992 $ 50,274 |
Schedule of service parts inventories | As of September 30, 2015 March 31, 2015 Service parts inventories: Finished goods $ 18,675 $ 18,143 Component parts 4,592 6,497 $ 23,267 $ 24,640 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying value of intangible assets | The following provides a summary of the carrying value of intangible assets (in thousands): As of September 30, 2015 March 31, 2015 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Purchased technology $ 179,992 $ (179,446 ) $ 546 $ 179,992 $ (179,261 ) $ 731 Trademarks 3,900 (3,900 ) — 3,900 (3,900 ) — Customer lists 66,219 (66,219 ) — 66,219 (66,219 ) — $ 250,111 $ (249,565 ) $ 546 $ 250,111 $ (249,380 ) $ 731 |
Summary of goodwill balance | The following table provides a summary of the goodwill balance at both September 30, 2015 and March 31, 2015 (in thousands): Goodwill Accumulated Impairment Losses Net Amount Balance $ 394,613 $ (339,000 ) $ 55,613 |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in the accrued warranty balance | The changes in the accrued warranty balance were (in thousands): Three Months Ended Six Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Beginning balance $ 3,600 $ 5,898 $ 4,219 $ 6,116 Additional warranties issued 1,523 1,519 3,130 3,247 Adjustments for warranties issued in prior fiscal years 298 (243 ) (69 ) 140 Settlements (1,948 ) (1,884 ) (3,807 ) (4,213 ) Ending balance $ 3,473 $ 5,290 $ 3,473 $ 5,290 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Types of restructuring expense | The types of restructuring expense for the three and six months ended September 30, 2015 and September 30, 2014 were (in thousands): Three Months Ended Six Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Severance and benefits $ 155 $ (20 ) $ 227 $ 105 Facilities 232 647 418 1,374 Other — (3 ) — 10 Total $ 387 $ 624 $ 645 $ 1,489 |
Activity for accrued restructuring | The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands): Three Months Ended September 30, 2015 Severance and Benefits Facilities Total Balance as of June 30, 2015 $ 102 $ 3,453 $ 3,555 Restructuring costs 120 95 215 Adjustment of prior estimates 35 137 172 Cash payments — (1,113 ) (1,113 ) Balance as of September 30, 2015 $ 257 $ 2,572 $ 2,829 Six Months Ended September 30, 2015 Severance Facilities Total Balance as of March 31, 2015 $ 189 $ 4,657 $ 4,846 Restructuring costs 223 394 617 Adjustment of prior estimates 4 24 28 Cash payments (159 ) (2,546 ) (2,705 ) Other non-cash — 43 43 Balance as of September 30, 2015 $ 257 $ 2,572 $ 2,829 |
Estimated timing of future payouts for accrued restructuring | As of September 30, 2015 Severance and Benefits Facilities Total Estimated timing of future payouts: Next twelve months $ 122 $ 1,746 $ 1,868 October 2016 through December 2021 135 826 961 $ 257 $ 2,572 $ 2,829 |
STOCK INCENTIVE PLANS AND SHA25
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of share-based compensation | The following table summarizes share-based compensation (in thousands): Three Months Ended Six Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Share-based compensation: Cost of revenue $ 331 $ 333 $ 693 $ 747 Research and development 492 603 1,041 1,383 Sales and marketing 839 887 1,709 1,797 General and administrative 785 846 1,657 1,810 $ 2,447 $ 2,669 $ 5,100 $ 5,737 Share-based compensation by type of award: Stock options $ — $ 154 $ 2 $ 311 Restricted stock 2,167 2,315 4,597 5,013 Stock purchase plan 280 200 501 413 $ 2,447 $ 2,669 $ 5,100 $ 5,737 |
Schedule of assumptions used in calculating fair values | The weighted-average grant date fair values and the assumptions used in calculating fair values for the three and six month periods ended September 30, 2015 and 2014 were as follows: Three and Six Months Ended September 30, 2015 September 30, 2014 Option life (in years) 0.5 0.5 Risk-free interest rate 0.09 % 0.06 % Stock price volatility 64.61 % 32.19 % Weighted-average grant date fair value per share $ 0.38 $ 0.30 |
Summary of activity relating to stock options | A summary of activity relating to our stock options follows (options and aggregate intrinsic value in thousands): Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of March 31, 2015 4,944 $ 1.47 Exercised (252 ) 1.05 Forfeited (5 ) 0.58 Expired (176 ) 1.80 Outstanding as of September 30, 2015 4,511 $ 1.48 1.30 $ 10 Vested and expected to vest at September 30, 2015 4,511 $ 1.48 1.30 $ 10 Exercisable as of September 30, 2015 4,511 $ 1.48 1.30 $ 10 |
Summary of activity relating to restricted stock | A summary of activity relating to our restricted stock units follows (shares in thousands): Shares Weighted-Average Grant Date Fair Value Per Share Nonvested at March 31, 2015 13,791 $ 1.34 Granted 6,542 1.64 Vested (5,814 ) 1.46 Forfeited (424 ) 1.39 Nonvested at September 30, 2015 14,095 $ 1.43 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted income (loss) per share | The following is the computation of basic and diluted income (loss) per share (in thousands, except per share data): Three Months Ended Six Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Numerator: Net income (loss) $ (11,227 ) $ 1,248 $ (21,982 ) $ (3,076 ) Denominator: Weighted average shares: Basic 263,058 254,760 260,766 252,724 Dilutive shares from stock plans — 2,819 — — Diluted 263,058 257,579 260,766 252,724 Basic and diluted net income (loss) per share $ (0.04 ) $ 0.00 $ (0.08 ) $ (0.01 ) |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||
Payment for business acquisition | $ 0 | $ 517 |
Symform, Inc. | ||
Business Acquisition [Line Items] | ||
Payment for business acquisition | $ 500 |
FAIR VALUE - Schedule of Fair V
FAIR VALUE - Schedule of Fair Value of Money Market Funds (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Level 1 fair value measurements | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 6,154 | $ 34,278 |
FAIR VALUE - Schedule of Carryi
FAIR VALUE - Schedule of Carrying Value and Fair Value of Financial Liabilities (Details) - Convertible subordinated debt - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | $ 152,680 | $ 152,138 |
Level 2 fair value measurements | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair Value | $ 142,811 | $ 166,551 |
INVENTORIES - Schedule of Manuf
INVENTORIES - Schedule of Manufacturing Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Manufacturing inventories: | ||
Finished goods | $ 20,246 | $ 28,022 |
Work in process | 105 | 58 |
Materials and purchased parts | 17,641 | 22,194 |
Total manufacturing inventories | $ 37,992 | $ 50,274 |
INVENTORIES - Schedule of Servi
INVENTORIES - Schedule of Service Parts Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Service parts inventories: | ||
Finished goods | $ 18,675 | $ 18,143 |
Component parts | 4,592 | 6,497 |
Total service parts inventories | $ 23,267 | $ 24,640 |
INTANGIBLE ASSETS AND GOODWIL32
INTANGIBLE ASSETS AND GOODWILL - Summary of Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 250,111 | $ 250,111 |
Accumulated Amortization | (249,565) | (249,380) |
Net Amount | 546 | 731 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 179,992 | 179,992 |
Accumulated Amortization | (179,446) | (179,261) |
Net Amount | 546 | 731 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,900 | 3,900 |
Accumulated Amortization | (3,900) | (3,900) |
Net Amount | 0 | 0 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 66,219 | 66,219 |
Accumulated Amortization | (66,219) | (66,219) |
Net Amount | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL33
INTANGIBLE ASSETS AND GOODWILL - Summary of Goodwill Balance (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 394,613 | $ 394,613 |
Accumulated Impairment Losses | (339,000) | (339,000) |
Net Amount | $ 55,613 | $ 55,613 |
ACCRUED WARRANTY (Details)
ACCRUED WARRANTY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 3,600 | $ 5,898 | $ 4,219 | $ 6,116 |
Additional warranties issued | 1,523 | 1,519 | 3,130 | 3,247 |
Adjustments for warranties issued in prior fiscal years | 298 | (243) | (69) | 140 |
Settlements | (1,948) | (1,884) | (3,807) | (4,213) |
Ending balance | $ 3,473 | $ 5,290 | $ 3,473 | $ 5,290 |
Minimum | ||||
Product Warranty Term [Line Items] | ||||
Product warranty term (in years) | 1 year | |||
Maximum | ||||
Product Warranty Term [Line Items] | ||||
Product warranty term (in years) | 3 years |
DEBT (Details)
DEBT (Details) | Oct. 05, 2015USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2014 |
Debt Instrument [Line Items] | ||||
Restricted cash | $ 19,042,000 | $ 2,621,000 | ||
Wells Fargo Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing amount | $ 75,000,000 | |||
Fixed charge coverage ratio required to repay 3.50% convertible subordinated notes | 1.5 | |||
Amount of liquidity required to repay 3.50% subordinated convertible notes | $ 25,000,000 | |||
Line of Credit Facility, Maximum Borrowing After Letters of Credit | $ 74,000,000 | |||
Line of credit facility, frequency of commitment fee payment | Quarterly | |||
Line of credit facility, percent commitment fee on undrawn amounts | 0.375% | |||
Minimum percent of debt holders required to give written notice of default | 25.00% | |||
Line of credit facility, average liquidity when covenant is applied | 15,000,000 | |||
Line of credit, minimum liquidity at all times when covenant is applied | $ 10,000,000 | |||
Line of credit, liquidity amount that must be excess availability | $ 5,000,000 | |||
Line of credit facility, fixed charge coverage ratio | 1.2 | |||
Line of credit facility, fixed charge coverage ratio, period when covenant is applied | 12 months | |||
Amount of borrowings, if exceeded, increase the filing of compliance certificates to monthly rather than quarterly | $ 5,000,000 | |||
Line of credit facility, amount of liquidity required to avoid audits | 20,000,000 | |||
Wells Fargo Credit Agreement | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, letters of credit outstanding | $ 1,000,000 | |||
3.50% convertible subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | 3.50% | ||
Restricted cash | $ 16,300,000 | |||
3.50% convertible subordinated notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Repurchased Face Amount | $ 81,000,000 | |||
Debt Instrument, Repurchase Amount | 82,400,000 | |||
Debt Instrument, Periodic Payment, Interest | 1,100,000 | |||
Gains (Losses) on Extinguishment of Debt | 400,000 | |||
Gains (Losses) on Extinguishment of Debt, before Write off of Deferred Debt Issuance Cost | 300,000 | |||
Write off of Deferred Debt Issuance Cost | 100,000 | |||
Repayments of convertible debt | 66,100,000 | |||
3.50% convertible subordinated notes | Subsequent Event | Cash | ||||
Debt Instrument [Line Items] | ||||
Repayments of convertible debt | $ 16,300,000 |
RESTRUCTURING CHARGES - Types o
RESTRUCTURING CHARGES - Types of Restructuring Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring and Related Activities [Abstract] | ||||
Severance and benefits | $ 155 | $ (20) | $ 227 | $ 105 |
Facilities | 232 | 647 | 418 | 1,374 |
Other | 0 | (3) | 0 | 10 |
Total | $ 387 | $ 624 | $ 645 | $ 1,489 |
RESTRUCTURING CHARGES - Activit
RESTRUCTURING CHARGES - Activity for Accrued Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Balance as of beginning of period | $ 3,555 | $ 4,846 |
Restructuring costs | 215 | 617 |
Adjustment of prior estimates | 172 | 28 |
Cash payments | (1,113) | (2,705) |
Other non-cash | 43 | |
Balance as of end of period | 2,829 | 2,829 |
Severance and Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of beginning of period | 102 | 189 |
Restructuring costs | 120 | 223 |
Adjustment of prior estimates | 35 | 4 |
Cash payments | 0 | (159) |
Other non-cash | 0 | |
Balance as of end of period | 257 | 257 |
Facilities | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of beginning of period | 3,453 | 4,657 |
Restructuring costs | 95 | 394 |
Adjustment of prior estimates | 137 | 24 |
Cash payments | (1,113) | (2,546) |
Other non-cash | 43 | |
Balance as of end of period | $ 2,572 | $ 2,572 |
RESTRUCTURING CHARGES - Estimat
RESTRUCTURING CHARGES - Estimated Timing of Future Payouts (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | $ 2,829 |
Next twelve months | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 1,868 |
October 2016 through December 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 961 |
Severance and Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 257 |
Severance and Benefits | Next twelve months | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 122 |
Severance and Benefits | October 2016 through December 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 135 |
Facilities | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 2,572 |
Facilities | Next twelve months | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 1,746 |
Facilities | October 2016 through December 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | $ 826 |
STOCK INCENTIVE PLANS AND SHA39
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Narratives (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based Compensation | $ 2,447 | $ 2,669 | $ 5,100 | $ 5,737 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair values of RSUs | $ 1.63 | $ 1.25 | $ 1.64 | $ 1.25 |
Number of shares granted, stock awards | 6,542 | |||
Performance Restricted Stock Units RSU | 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted, stock awards | 2,400 | |||
Fair value of RSUs at the grant date | $ 3,000 | |||
Total share-based Compensation | $ 100 | $ 200 | ||
Performance Restricted Stock Units RSU | 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted, stock awards | 1,500 | |||
Fair value of RSUs at the grant date | $ 2,600 |
STOCK INCENTIVE PLANS AND SHA40
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Summary of Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based compensation expense | ||||
Share-based compensation | $ 2,447 | $ 2,669 | $ 5,100 | $ 5,737 |
Stock options | ||||
Share-based compensation expense | ||||
Share-based compensation | 0 | 154 | 2 | 311 |
Restricted stock | ||||
Share-based compensation expense | ||||
Share-based compensation | 2,167 | 2,315 | 4,597 | 5,013 |
Stock purchase plan | ||||
Share-based compensation expense | ||||
Share-based compensation | 280 | 200 | 501 | 413 |
Cost of revenue | ||||
Share-based compensation expense | ||||
Share-based compensation | 331 | 333 | 693 | 747 |
Research and development | ||||
Share-based compensation expense | ||||
Share-based compensation | 492 | 603 | 1,041 | 1,383 |
Sales and marketing | ||||
Share-based compensation expense | ||||
Share-based compensation | 839 | 887 | 1,709 | 1,797 |
General and administrative | ||||
Share-based compensation expense | ||||
Share-based compensation | $ 785 | $ 846 | $ 1,657 | $ 1,810 |
STOCK INCENTIVE PLANS AND SHA41
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Assumptions Used to Valuing Stock Purchase Plan (Details) - Stock purchase plan - $ / shares | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option life (in years) | 6 months | 6 months |
Risk free interest rate | 0.09% | 0.06% |
Stock price volatility rate | 64.61% | 32.19% |
Weighted-average grant date fair value per share (usd per share) | $ 0.38 | $ 0.30 |
STOCK INCENTIVE PLANS AND SHA42
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Summary of Activity Relating to Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Options | |
Options, Outstanding, beginning balance (in shares) | shares | 4,944 |
Options, Exercised (in shares) | shares | (252) |
Options, Forfeited (in shares) | shares | (5) |
Options, Expired (in shares) | shares | (176) |
Options, Outstanding, ending balance (in shares) | shares | 4,511 |
Options, Vested and expected to vest at end of period (in shares) | shares | 4,511 |
Options, Exercisable at end of period (in shares) | shares | 4,511 |
Weighted- Average Exercise Price | |
Weighted-Average Exercise Price, Outstanding, beginning balance (usd per share) | $ 1.47 |
Weighted-Average Exercise Price, Exercised (usd per share) | 1.05 |
Weighted-Average Exercise Price, Forfeited (usd per share) | 0.58 |
Weighted-Average Exercise Price, Expired (usd per share) | 1.80 |
Weighted-Average Exercise Price, Outstanding, ending balance (usd per share) | 1.48 |
Weighted-Average Exercise Price, Vested and expected to vest at end of period (usd per share) | 1.48 |
Weighted-Average Exercise Price, Exercisable at end of period (usd per share) | $ 1.48 |
Weighted- Average Remaining Contractual Term | |
Weighted-Average Remaining Contractual Term, Outstanding | 1 year 3 months 20 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 1 year 3 months 20 days |
Weighted-Average Remaining Contractual Term, Exercisable | 1 year 3 months 20 days |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Outstanding | $ | $ 10 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | 10 |
Aggregate Intrinsic Value, Exercisable | $ | $ 10 |
STOCK INCENTIVE PLANS AND SHA43
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Summary of Activity Relating to Restricted Stock Units (Details) - Restricted Stock - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Shares | ||||
Shares, Nonvested, beginning balance (in shares) | 13,791 | |||
Shares, Granted (in shares) | 6,542 | |||
Shares, Vested (in shares) | (5,814) | |||
Shares, Forfeited (in shares) | (424) | |||
Shares, Nonvested, ending balance (in shares) | 14,095 | 14,095 | ||
Weighted-Average Grant Date Fair Value Per Share | ||||
Weighted Average Grant Date Fair Value, Nonvested, beginning balance (usd per share) | $ 1.34 | |||
Weighted Average Grant Date Fair Value, Granted (usd per share) | $ 1.63 | $ 1.25 | 1.64 | $ 1.25 |
Weighted Average Grant Date Fair Value, Vested (usd per share) | 1.46 | |||
Weighted Average Grant Date Fair Value, Forfeited (usd per share) | 1.39 | |||
Weighted Average Grant Date Fair Value, Nonvested, ending balance (usd per share) | $ 1.43 | $ 1.43 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 347 | $ 356 | $ 686 | $ 604 |
NET INCOME (LOSS) PER SHARE - C
NET INCOME (LOSS) PER SHARE - Computation of Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income (loss) | $ (11,227) | $ 1,248 | $ (21,982) | $ (3,076) |
Denominator: | ||||
Weighted average shares: Basic (in shares) | 263,058 | 254,760 | 260,766 | 252,724 |
Dilutive shares from stock plans (in shares) | 0 | 2,819 | 0 | 0 |
Weighted average shares: Diluted (in shares) | 263,058 | 257,579 | 260,766 | 252,724 |
Basic and diluted net income (loss) per share (usd per share) | $ (0.04) | $ 0 | $ (0.08) | $ (0.01) |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 4.6 | 2.3 | 4.7 | 7 |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 12.1 | 0.2 | 12.6 | 12 |
4.50% convertible subordinated notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 42.5 | 42.5 | 42.5 | 42.5 |
Interest rate, per annum on the principal amount | 4.50% | 4.50% | 4.50% | 4.50% |
Antidilutive income excluded from computation of earnings per share | $ 0.9 | $ 0.9 | $ 1.8 | $ 1.8 |
3.50% convertible subordinated notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 19.3 | 30.9 | 19.3 | 30.9 |
Interest rate, per annum on the principal amount | 3.50% | 3.50% | 3.50% | 3.50% |
Antidilutive income excluded from computation of earnings per share | $ 0.9 | $ 1.4 | $ 1.8 | $ 2.8 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narratives (Details) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2015 | Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Increase In future minimum lease payments | $ 3.7 | |
Remaining purchase commitments | $ 27.5 | $ 46 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Scenario, Forecast - Subsequent Event $ in Millions | 3 Months Ended | |
Dec. 31, 2015employee | Nov. 06, 2015USD ($) | |
Subsequent Event [Line Items] | ||
Expected number of positions to be eliminated | 65 | |
Expected restructuring cost | $ | $ 2 |