Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Jan. 27, 2017 | |
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 | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 271,322,956 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 22,595 | $ 33,870 |
Restricted cash | 2,686 | 2,788 |
Accounts receivable, net of allowance for doubtful accounts of $19 and $22, respectively | 107,477 | 105,959 |
Manufacturing inventories | 30,964 | 40,614 |
Service parts inventories | 19,967 | 21,407 |
Other current assets | 8,933 | 8,007 |
Total current assets | 192,622 | 212,645 |
Long-term assets: | ||
Property and equipment, less accumulated depreciation | 11,591 | 12,939 |
Intangible assets, less accumulated amortization | 312 | 451 |
Restricted cash, long-term | 20,000 | 0 |
Other long-term assets | 5,136 | 4,565 |
Total long-term assets | 37,039 | 17,955 |
Total Assets | 229,661 | 230,600 |
Current liabilities: | ||
Accounts payable | 49,272 | 46,136 |
Accrued warranty | 3,287 | 3,430 |
Deferred revenue, current | 80,733 | 88,919 |
Accrued restructuring charges, current | 1,305 | 1,621 |
Long-term debt, current | 0 | 3,000 |
Convertible subordinated debt, current | 64,219 | 0 |
Accrued compensation | 21,338 | 22,744 |
Other accrued liabilities | 11,707 | 13,806 |
Total current liabilities | 231,861 | 179,656 |
Long-term liabilities: | ||
Deferred revenue, long-term | 34,340 | 35,427 |
Accrued restructuring charges, long-term | 570 | 1,116 |
Long-term debt | 72,239 | 62,709 |
Convertible subordinated debt, long-term | 0 | 69,253 |
Other long-term liabilities | 7,205 | 8,324 |
Total long-term liabilities | 114,354 | 176,829 |
Stockholders' deficit: | ||
Common stock, $0.01 par value; 1,000,000 shares authorized; 271,188 and 266,209 shares issued and outstanding at December 31, 2016 and March 31, 2016, respectively | 2,712 | 2,662 |
Capital in excess of par | 469,602 | 464,549 |
Accumulated deficit | (591,382) | (596,940) |
Accumulated other comprehensive income | 2,514 | 3,844 |
Total stockholders’ deficit | (116,554) | (125,885) |
Total liabilities and stockholders' deficit | $ 229,661 | 230,600 |
As Reported | ||
Current assets: | ||
Other current assets | 6,953 | |
Total current assets | 211,591 | |
Long-term assets: | ||
Total Assets | 229,546 | |
Stockholders' deficit: | ||
Accumulated deficit | (597,994) | |
Total stockholders’ deficit | (126,939) | |
Adjustment | ||
Current assets: | ||
Other current assets | 1,054 | |
Total current assets | 1,054 | |
Long-term assets: | ||
Total Assets | 1,054 | |
Stockholders' deficit: | ||
Accumulated deficit | 1,054 | |
Total stockholders’ deficit | $ 1,054 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 19 | $ 22 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 271,188,000 | 266,209,000 |
Common stock, shares outstanding | 271,188,000 | 266,209,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||
Product revenue | $ 86,510 | $ 79,672 | $ 246,911 | $ 213,448 |
Service revenue | 36,445 | 37,099 | 108,883 | 112,285 |
Royalty revenue | 10,529 | 11,277 | 28,716 | 30,196 |
Total revenue | 133,484 | 128,048 | 384,510 | 355,929 |
Cost of product revenue | 63,324 | 56,323 | 177,808 | 156,656 |
Cost of service revenue | 15,158 | 15,550 | 45,328 | 50,524 |
Total cost of revenue | 78,482 | 71,873 | 223,136 | 207,180 |
Gross margin | 55,002 | 56,175 | 161,374 | 148,749 |
Operating expenses: | ||||
Research and development | 10,579 | 11,148 | 33,038 | 37,841 |
Sales and marketing | 25,145 | 28,212 | 77,658 | 83,860 |
General and administrative | 12,130 | 13,488 | 37,662 | 41,610 |
Restructuring charges (benefits) | (105) | 1,895 | 1,962 | 2,540 |
Total operating expenses | 47,749 | 54,743 | 150,320 | 165,851 |
Income (loss) from operations | 7,253 | 1,432 | 11,054 | (17,102) |
Other income (expense) | 519 | (22) | 685 | 406 |
Interest expense | (2,423) | (1,406) | (5,416) | (5,304) |
Loss on debt extinguishment, net | (48) | (394) | (48) | (394) |
Income (loss) before income taxes | 5,301 | (390) | 6,275 | (22,394) |
Income tax provision | 295 | 431 | 717 | 1,117 |
Net income (loss) | $ 5,006 | $ (821) | $ 5,558 | $ (23,511) |
Basic and diluted net income (loss) per share (usd per share) | $ 0.02 | $ 0 | $ 0.02 | $ (0.09) |
Weighted average shares: | ||||
Basic (shares) | 271,186 | 264,003 | 269,329 | 261,849 |
Diluted (shares) | 274,443 | 264,003 | 271,473 | 261,849 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 5,006 | $ (821) | $ 5,558 | $ (23,511) |
Other comprehensive loss, net of taxes: | ||||
Foreign currency translation adjustments | (1,442) | (244) | (1,575) | (143) |
Net unrealized gain (loss) on revaluation of long-term intercompany balances | 260 | (124) | 245 | (3) |
Total other comprehensive loss | (1,182) | (368) | (1,330) | (146) |
Total comprehensive income (loss) | $ 3,824 | $ (1,189) | $ 4,228 | $ (23,657) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 5,558 | $ (23,511) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 4,035 | 4,945 |
Amortization of intangible assets | 139 | 233 |
Amortization and write-off of debt issuance costs | 916 | 894 |
Service parts lower of cost or market adjustment | 3,950 | 4,640 |
Deferred income taxes | (16) | (1) |
Share-based compensation | 5,124 | 7,339 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,518) | 22,890 |
Manufacturing inventories | 7,248 | 13,503 |
Service parts inventories | (1,298) | (547) |
Accounts payable | 3,377 | (12,708) |
Accrued warranty | (143) | (797) |
Deferred revenue | (9,273) | (14,833) |
Accrued restructuring charges | (862) | (2,258) |
Accrued compensation | (1,105) | (10,711) |
Other assets and liabilities | (5,663) | (4,992) |
Net cash provided by (used in) operating activities | 10,469 | (15,914) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,736) | (2,800) |
Change in restricted cash | (19,996) | (142) |
Net cash used in investing activities | (21,732) | (2,942) |
Cash flows from financing activities: | ||
Borrowings of long-term debt, net | 92,581 | 68,920 |
Repayments of long-term debt | (87,209) | 0 |
Repayments of convertible subordinated debt | (5,296) | (83,735) |
Payment of taxes due upon vesting of restricted stock | (679) | (3,112) |
Proceeds from issuance of common stock | 658 | 1,772 |
Net cash provided by (used in) financing activities | 55 | (16,155) |
Effect of exchange rate changes on cash and cash equivalents | (67) | (18) |
Net decrease in cash and cash equivalents | (11,275) | (35,029) |
Cash and cash equivalents at beginning of period | 33,870 | 67,948 |
Cash and cash equivalents at end of period | 22,595 | 32,919 |
Supplemental disclosure of cash flow information: | ||
Purchases of property and equipment included in accounts payable | $ 149 | $ 430 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Quantum Corporation (“Quantum”, the “Company”, “us” or “we”), founded in 1980 and reincorporated in Delaware in 1987, is a leading expert in scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing 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 data workflow challenges. Our end-to-end tiered storage solutions enable users 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. 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, 2016 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, 2016 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on June 3, 2016, as amended by Amendment No. 1 to Form 10-K, filed with the SEC on July 27, 2016 (together, the “Form 10-K”). Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“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 may be applied prospectively to all agreements entered into or materially modified after the adoption date or retrospectively. We adopted ASU 2015-05 prospectively in the first quarter of fiscal 2017 and adoption did not impact our statements of financial condition, results of operations, cash flows or financial statement disclosures. Recent Accounting Pronouncements 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. We evaluated our forecasted earnings, cash flows and liquidity to evaluate any potential situations, including payment of our convertible notes upon maturity, that would trigger additional assessment and reporting under this standard. Based upon such evaluation, we do not anticipate adoption will impact our statements of financial condition, results of operations, cash flows or financial statement disclosures. 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. Prospective application is required. As we currently adjust the carrying value of our inventory to the lower-of-cost or market, we do not anticipate adoption will have a material impact on our statements of financial condition, results of operations, cash flows or financial statement disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosures of financial instruments. ASU 2016-01 will become effective for us beginning April 1, 2018, or fiscal 2019. We must apply the provisions using a cumulative-effect adjustment to the balance sheet at the beginning of the year of adoption, or April 1, 2018. We are currently assessing what financial instruments are being impacted and the extent of the potential impact on our statements of financial condition, results of operations, cash flows and financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 provides a new comprehensive model for lease accounting. Under ASU 2016-02, lessees and lessors should apply a “right-of-use” model in accounting for all leases and eliminate the concept of operating leases and off-balance sheet leases. ASU 2016-02 will become effective for us beginning April 1, 2019, or fiscal 2020. ASU 2016-02 requires a modified retrospective transition approach with certain practical expedients available. We are currently putting in place the process for analyzing our current leases to evaluate the impact on our statements of financial condition, results of operations, cash flows and financial statement disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 will become effective for us beginning April 1, 2017, or fiscal 2018. Transition requirements vary based upon certain facts and circumstances, which we are in the process of evaluating to determine our approach. We are currently evaluating our existing share-based payments awards and the structure of future compensation plans to determine the potential impact on our statements of financial condition, results of operations, cash flows and financial statement disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on the following eight specific cash flow issues: 1) debt prepayment or debt extinguishment costs, 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, 3) contingent consideration payments made after a business combination, 4) proceeds from the settlement of insurance claims, 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, 6) distributions received from equity method investees, 7) beneficial interests in securitization transactions and 8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 transition requires the use of the retrospective method for all periods presented. We have evaluated the types of transactions impacted by ASU 2016-15 and at this time, anticipate only having immaterial debt extinguishment costs that are impacted and therefore, we do not anticipate adoption will have a material impact on our statements of cash flows. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 will become effective for us beginning April 1, 2018, or fiscal 2019. ASU 2016-16 requires the modified retrospective transition approach with a cumulative-effect adjustment to retained earnings at the beginning of the period of adoption. We currently do not have any material intra-entity transfers of assets and therefore we do not anticipate that adoption will have a material impact on our statements of financial condition, results of operations, cash flows or financial statement disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 will become effective for us beginning April 1, 2018, or fiscal 2019. ASU 2016-18 is required to be applied retrospectively. Upon the adoption, amounts described as restricted cash will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. The FASB issued the following accounting standard updates related to its revenue convergence project: • ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) in May 2014. 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 No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”) in March 2016. ASU 2016-08 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on principal versus agent considerations. • ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”) in April 2016. ASU 2016-10 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. • ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update) (“ASU 2016-11”) in May 2016. ASU 2016-11 rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 EITF meeting. The SEC Staff is rescinding SEC Staff Observer comments that are codified in Topic 605 and Topic 932, effective upon adoption of Topic 606. • ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients in May 2016. ASU 2016-12 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on a few narrow areas and adds some practical expedients to the guidance. These ASUs will become effective for us beginning April 1, 2018, or fiscal 2019. ASU 2014-09 and the related ASUs allow for either a retrospective or a modified retrospective transition approach. We plan to use a modified retrospective approach upon the adoption of Topic 606. We have initiated an assessment of the potential changes in our revenue recognition accounting policies for the new revenue standards, including our accounting for related commissions and extended product warranty costs. We are currently evaluating the impact of these changes as well as the impact of our rebate programs (“variable consideration”) and establishing the standalone selling price for each performance obligation which will help us to assess the overall impact of the adoption of Topic 606 on our financial condition, results of operations, cash flows and financial statement disclosures. |
REVISION OF PRIOR PERIOD FINANC
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | 9 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS In connection with the preparation of our condensed consolidated financial statements for the quarter ended December 31, 2016, we identified an error related to the manner in which we had previously recognized costs for certain third party maintenance contracts. Specifically, we had historically expensed such costs in the period the contracts were entered into rather than expensing them ratably over the contract period. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality , and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , we evaluated the error and determined that the related impact was not material to our results of operations or financial position for any prior annual or interim period, but that correcting the $1.6 million cumulative impact of the error would be material to our results of operations for the three month period ended December 31, 2016. Accordingly, we have corrected these errors for all prior periods presented by revising the condensed consolidated financial statements. Periods not presented herein will be revised, as applicable, in future filings. We also corrected the timing of a previously recorded immaterial out-of-period adjustment and reflected the adjustment in the period in which it originated in the revised prior period financial statements. Consolidated Balance Sheets As of March 31, 2016 As Reported Adjustment As Revised Other current assets $ 6,953 $ 1,054 $ 8,007 Total current assets 211,591 1,054 212,645 Total assets 229,546 1,054 230,600 Accumulated deficit (597,994 ) 1,054 (596,940 ) Total stockholders’ deficit $ (126,939 ) $ 1,054 $ (125,885 ) Consolidated Statements of operations Three Months Ended Nine Months Ended December 31, 2015 December 31, 2015 As Reported Adjustment As Revised As Reported Adjustment As Revised Cost of product revenue $ 56,323 $ — $ 56,323 $ 156,360 $ 296 $ 156,656 Cost of service revenue 15,028 522 15,550 49,590 934 50,524 Total cost of revenue 71,351 522 71,873 205,950 1,230 207,180 Gross margin 56,697 (522 ) 56,175 149,979 (1,230 ) 148,749 Income (loss) from operations 1,954 (522 ) 1,432 (15,872 ) (1,230 ) (17,102 ) Income (loss) before income taxes 132 (522 ) (390 ) (21,164 ) (1,230 ) (22,394 ) Net income (loss) $ (299 ) $ (522 ) $ (821 ) $ (22,281 ) $ (1,230 ) $ (23,511 ) The revisions did not impact previously reported basic or diluted earnings per share and had no impact on our previously reported cash flows. There were no income tax impacts related to the error as the Company has full valuation allowances against its net deferred tax assets in the related jurisdictions and was not subject to income taxes payable in the related periods. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 March 31, 2016 Money market funds $ — $ 1,640 We did not record impairments to any non-financial assets in the third quarter or first nine months of fiscal 2017 or fiscal 2016 . 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 and long-term debt at December 31, 2016 and March 31, 2016 . The carrying value and fair value of our convertible subordinated debt and long-term debt were as follows (in thousands): As of December 31, 2016 March 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Convertible subordinated debt (1) $ 64,219 $ 61,999 $ 69,253 $ 51,686 Long-term debt: (2) Credit agreement with Wells Fargo — — 65,709 65,741 Revolving credit agreement 24,219 25,998 — — Term loan agreement 48,020 50,001 — — Total long-term debt $ 72,239 $ 75,999 $ 65,709 $ 65,741 (1) Fair value based on quoted market prices in less active markets (level 2). (2) Fair value based on outstanding borrowings and market interest rates (level 2). |
INVENTORIES
INVENTORIES | 9 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Manufacturing inventories and service parts inventories consisted of the following (in thousands): As of December 31, 2016 March 31, 2016 Manufacturing inventories: Finished goods $ 15,806 $ 22,127 Work in process 801 665 Materials and purchased parts 14,357 17,822 $ 30,964 $ 40,614 As of December 31, 2016 March 31, 2016 Service parts inventories: Finished goods $ 15,583 $ 16,381 Component parts 4,384 5,026 $ 19,967 $ 21,407 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS We evaluate our amortizable 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 third quarter or first nine months of fiscal 2017 or fiscal 2016 . The following provides a summary of the carrying value of our long-lived assets (in thousands): As of December 31, 2016 March 31, 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Purchased technology $ 178,292 $ (177,980 ) $ 312 $ 178,292 $ (177,841 ) $ 451 Trademarks 3,900 (3,900 ) — 3,900 (3,900 ) — Customer lists 64,701 (64,701 ) — 64,701 (64,701 ) — $ 246,893 $ (246,581 ) $ 312 $ 246,893 $ (246,442 ) $ 451 |
ACCRUED WARRANTY
ACCRUED WARRANTY | 9 Months Ended |
Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |
ACCRUED WARRANTY | ACCRUED WARRANTY The changes in the accrued warranty balance were (in thousands): Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Beginning balance $ 3,371 $ 3,473 $ 3,430 $ 4,219 Additional warranties issued 1,477 1,550 5,083 4,680 Adjustments for warranties issued in prior fiscal years 182 228 583 159 Settlements (1,743 ) (1,829 ) (5,809 ) (5,636 ) Ending balance $ 3,287 $ 3,422 $ 3,287 $ 3,422 We warrant our products against certain defects typically 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 is 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 | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our debt consisted of the following (in thousands): As of December 31, 2016 March 31, 2016 Convertible subordinated debt, current: 4.50% convertible subordinated notes $ 64,590 $ 70,000 Unamortized debt issuance costs (371 ) (747 ) Convertible subordinated debt, current, net of unamortized debt issuance costs $ 64,219 $ 69,253 As of December 31, 2016 March 31, 2016 Long-term debt, current: Credit agreement with Wells Fargo $ — $ 3,000 Long-term debt: Credit agreement with Wells Fargo $ — $ 62,709 Revolving credit agreement 26,000 — Term loan agreement 50,000 — Unamortized discount and debt issuance costs (3,761 ) — Long-term debt, net of unamortized discount and debt issuance costs $ 72,239 $ 62,709 Long-term Debt On October 21, 2016 (“closing date”), we refinanced our credit agreement with Wells Fargo (as amended, the “WF credit agreement”) through the use of proceeds obtained from our term loan and revolving credit facility (“credit facility”). The credit facility includes a revolving credit and security agreement entered into with PNC Bank, National Association (“revolving credit agreement”) and a term loan credit and security agreement entered into with TCW Asset Management Company LLC (“term loan agreement”). In connection with the refinance, we recorded a loss on debt extinguishment of $0.1 million comprised of unamortized debt issuance costs related to the WF credit agreement. On the closing date, we borrowed $50.0 million under the term loan agreement and $26.0 million under the revolving credit agreement. These borrowings were used to i) pay $60.3 million of the outstanding balance on the WF credit agreement and accrued interest, ii) fund $10.0 million towards a portion of a $20.0 million restricted reserve requirement under the revolving credit agreement with the remaining portion of the requirement funded with cash on hand, iii) pay $4.7 million of transaction fees and other expenses and iv) pay a $1.0 million refundable deposit to Wells Fargo to hold during the transfer of our existing letters of credit to the new credit facility. Transaction fees and other expenses incurred under the credit facility included $3.1 million of debt issuance costs, $1.0 million of debt discount and $0.6 million of loan commitment fees. The $20.0 million restricted reserve requirement is presented as restricted cash, long-term within the Condensed Consolidated Balance Sheets as of December 31, 2016. Revolving credit agreement Under the revolving credit agreement, we have the ability to borrow the lesser of $80 million or the amount of the monthly borrowing base, which is reduced by $1.0 million of the outstanding letters of credit. Our borrowing base is established monthly based on certain working capital asset balances. The revolving credit agreement also includes an uncommitted accordion in an amount up to $20 million . The revolving credit agreement matures on October 21, 2021. Of the $4.7 million of transaction fees and other expenses, as discussed above, $1.9 million of debt issuance costs and $0.6 million of loan commitment fees were attributable to the revolving credit agreement. During the third quarter of fiscal 2017, debt issuance costs related to our revolving credit agreement were recorded as a reduction of its carrying amount to the extent outstanding borrowings are greater than the related unamortized fees and are amortized to interest expense over the term of the related agreement using the effective interest method. Loan commitment fees paid related to future borrowing capacity were recorded as an asset and are amortized ratably over the term of the revolving credit agreement. Borrowings under the revolving credit agreement bear interest at a rate per annum equal to, at our option, either (a) the greatest of (i) the base rate, (ii) the Federal funds rate plus 0.50% and (iii) the LIBOR rate based upon an interest period of 1 month plus 1.0% , plus an applicable margin of 1.50% , or (b) the LIBOR rate plus an applicable margin of 2.50% . The base rate is defined in the revolving credit agreement. Additionally, we are required to pay a 0.375% commitment fee on undrawn amounts under the revolving credit agreement on a quarterly basis, which is recorded as interest expense in the period incurred. As of December 31, 2016, we had a $26.0 million outstanding balance on the line of credit at an interest rate of 3.31% . Term loan agreement The term loan agreement provides for $50 million of a senior secured term loan drawn on the closing date and $20 million of a senior secured delay draw term loan (“DDTL”). Borrowings under the DDTL are restricted to only be used to redeem our 4.50% convertible subordinated notes due November 15, 2017 (“ 4.50% notes”) and are available through December 31, 2017. The term loan agreement matures on October 21, 2021. The amount outstanding under the term loan is to be repaid on a quarterly basis in an amount equal to 1.25% of the original principal amount beginning on March 31, 2018, with any remaining principal balance due on the maturity of the term loan. Of the $4.7 million of transaction fees and other expenses, as discussed above, $1.2 million of debt issuance costs and $1.0 million of debt discount were attributable to the term loan agreement. These fees were recorded as a reduction to the carrying amount of outstanding borrowings under the term loan agreement and amortized to interest expense over the term of the borrowing using the effective interest method. Borrowings under the term loan agreement bear interest at a rate per annum equal to, at our option, either (a) the greatest 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” last quoted by the Wall Street Journal, plus a margin ranging from 6.00% to 7.25% based on the applicable senior net leverage ratio, or (b) the LIBOR rate plus 7.00% to 8.25% based on the applicable senior net leverage ratio. The senior net leverage ratio is defined in the term loan agreement. As of December 31, 2016, our interest rate on the term loan was 8.50% . The term loan agreement and the revolving credit agreement contain customary affirmative and negative covenants, events of default and financial covenants including fixed charge coverage ratio, senior net leverage ratio and total leverage ratio. Additionally, the revolving credit agreement includes minimum liquidity requirements. There is a blanket lien on all of our assets under the revolving credit agreement and term loan agreement. As of December 31, 2016, and during the first nine months of fiscal 2017, we were in compliance with all covenants. Convertible Subordinated Debt In November 2016, we entered into private transactions with note holders to purchase an aggregate principal amount of $5.4 million of the 4.50% notes for $5.3 million of cash. In connection with these transactions, we recorded a gain on debt extinguishment of $0.1 million , which included a write-off of unamortized debt issuance costs related to the purchased notes. Debt Maturities A summary of the scheduled maturities for our principal outstanding debt as of December 31, 2016 follows (in thousands): Debt Maturity Due by Period Less than One Year One Year Two Years Three Years Four Years More than Five years Total 4.50% convertible subordinated notes $ 64,590 $ — $ — $ — $ — $ — $ 64,590 Long-term debt: Revolving credit agreement — — — — 26,000 — 26,000 Term loan agreement — 2,500 2,500 2,500 42,500 — 50,000 Total long-term debt $ — $ 2,500 $ 2,500 $ 2,500 $ 68,500 $ — $ 76,000 |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 9 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES Fiscal 2017 April Restructuring Plan In April 2016, we approved a plan (“Fiscal 2017 April Restructuring Plan”) to eliminate 29 positions in the U.S. and internationally to reduce investments in various functions of our business to improve operational efficiencies. The costs associated with these actions consist of restructuring charges related to severance and benefits. These actions were completed by the second quarter of fiscal 2017. We incurred and paid $1.5 million of restructuring charges under this plan. Fiscal 2016 Restructuring Plan In November 2015, we approved a plan (“Fiscal 2016 Restructuring Plan”) to eliminate approximately 65 positions in the U.S. and internationally, primarily in research and development and sales and marketing functions, in order to improve our cost structure and align spending with continuing operations plans. These actions were completed by the first quarter of fiscal 2017, with the majority having occurred by December 31, 2015. The costs associated with these actions consist of restructuring charges related to severance and benefits. We incurred and paid $2.0 million of restructuring charges under this plan. Summary of Restructuring Expense The types of restructuring expense for the three and nine months ended December 31, 2016 and December 31, 2015 were (in thousands): Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Severance and benefits $ (13 ) $ 1,685 $ 1,437 $ 1,912 Facilities (92 ) 210 525 628 Total $ (105 ) $ 1,895 $ 1,962 $ 2,540 For the third quarter of fiscal 2017, restructuring benefits were primarily due to a change in estimate of sublease in one of our facilities in the U.S. For the first nine months of fiscal 2017, restructuring charges were primarily due to $1.5 million of severance and benefits costs incurred as a result of the Fiscal 2017 April Restructuring Plan. Additionally, we approved a plan to vacate certain leased space in the U.S. primarily used for administration and research and development in the first quarter of fiscal 2017 and recorded $ 0.2 million of restructuring charges related to facilities costs in the first nine months of fiscal 2017. For the third quarter and first nine months of fiscal 2016, restructuring charges were largely due to $1.7 million of severance and benefits costs incurred as a result of the Fiscal 2016 Restructuring Plan. Additionally, for the first nine months of fiscal 2016, we incurred restructuring charges related 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 December 31, 2015 Three Months Ended December 31, 2016 Severance Facilities Total Severance Facilities Total Beginning balance $ 257 $ 2,572 $ 2,829 $ 140 $ 2,378 $ 2,518 Restructuring costs 1,690 210 1,900 — (92 ) (92 ) Adjustment of prior estimates (5 ) — (5 ) (13 ) — (13 ) Cash payments (1,171 ) (1,022 ) (2,193 ) (1 ) (619 ) (620 ) Other non-cash — 57 57 — 82 82 Ending balance $ 771 $ 1,817 $ 2,588 $ 126 $ 1,749 $ 1,875 Nine Months Ended December 31, 2015 Nine Months Ended December 31, 2016 Severance and Benefits Facilities Total Severance and Benefits Facilities Total Beginning balance $ 189 $ 4,657 $ 4,846 $ 354 $ 2,383 $ 2,737 Restructuring costs 1,913 604 2,517 1,489 388 1,877 Adjustment of prior estimates (1 ) 24 23 (52 ) 137 85 Cash payments (1,330 ) (3,568 ) (4,898 ) (1,665 ) (1,283 ) (2,948 ) Other non-cash — 100 100 — 124 124 Ending balance $ 771 $ 1,817 $ 2,588 $ 126 $ 1,749 $ 1,875 As of December 31, 2016 Severance and Benefits Facilities Total Estimated timing of future payouts: Next twelve months $ 126 $ 1,179 $ 1,305 January 2018 through December 2021 — 570 570 $ 126 $ 1,749 $ 1,875 Facility restructuring accruals will be paid in accordance with the respective facility lease terms, partially offset by the estimated sublease amounts to be received over the course of the facility lease terms. |
STOCK INCENTIVE PLANS AND SHARE
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2016 | |
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 Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Share-based compensation: Cost of revenue $ 183 $ 313 $ 697 $ 1,006 Research and development 284 488 1,020 1,529 Sales and marketing 542 658 1,760 2,367 General and administrative 467 780 1,647 2,437 $ 1,476 $ 2,239 $ 5,124 $ 7,339 Share-based compensation by type of award: Stock options $ — $ — $ — $ 2 Restricted stock units 1,437 1,955 4,784 6,552 Stock purchase plan 39 284 340 785 $ 1,476 $ 2,239 $ 5,124 $ 7,339 Stock Incentive Plans - Grants and Fair Value Stock Options No stock options were granted during the third quarter or first nine months of fiscal 2017 or fiscal 2016 . 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 third quarter and first nine months of fiscal 2017 were $0.74 and $0.44 , respectively. The weighted-average grant date fair values of RSUs granted during the third quarter and first nine months of fiscal 2016 were $0.82 and $1.64 per share, respectively. During the first nine months of fiscal 2017, we granted 3.4 million RSUs with performance conditions (“2017 performance RSUs”), and the total fair value of 2017 performance RSUs at the grant date was $1.4 million at a weighted average grant date fair value per share of $0.43 . The 2017 performance RSUs will become eligible for vesting based on Quantum achieving a certain revenue target through the end of fiscal 2017. Share-based compensation expense for the 2017 performance RSUs is recognized when it is probable that the performance conditions will be achieved. During the third quarter and first nine months of fiscal 2017, $0.1 million and $0.3 million of share-based compensation expense was recognized for the 2017 performance RSUs. Employee Stock Purchase Plan Under the Employee Stock Purchase Plan (“ESPP”), 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 first nine months of fiscal 2017 and fiscal 2016, 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 nine month periods ended December 31, 2016 and December 31, 2015 were as follows: Nine Months Ended December 31, 2016 December 31, 2015 Option life (in years) 0.5 0.5 Risk-free interest rate 0.40 % 0.09 % Stock price volatility 81.88 % 64.61 % Weighted-average grant date fair value per share $ 0.23 $ 0.38 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, 2016 4,131 $ 1.52 Forfeited (303 ) 1.03 Expired (2,383 ) 0.99 Outstanding as of December 31, 2016 1,445 $ 2.50 1.20 $ 2,107 Vested and expected to vest at December 31, 2016 1,445 $ 2.50 1.20 $ 2,107 Exercisable as of December 31, 2016 1,445 $ 2.50 1.20 $ 2,107 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, 2016 11,109 $ 1.39 Granted 8,312 0.44 Vested (4,850 ) 1.38 Forfeited (875 ) 1.40 Nonvested at December 31, 2016 13,696 $ 0.81 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax provisions for the third quarter and first nine months of fiscal 2017 were $0.3 million and $0.7 million , respectively. Income tax provisions for the third quarter and first nine months of fiscal 2016 were $0.4 million and $1.1 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 | 9 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE The following is the computation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Numerator: Net income (loss) $ 5,006 $ (821 ) $ 5,558 $ (23,511 ) Denominator: Weighted average shares: Basic 271,186 264,003 269,329 261,849 Dilutive shares from stock plans 3,257 — 2,144 — Diluted 274,443 264,003 271,473 261,849 Basic and diluted net income (loss) per share $ 0.02 $ (0.00 ) $ 0.02 $ (0.09 ) 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 (in millions): Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Weighted average shares excluded: 4.50% convertible subordinated notes 40.9 42.5 42.0 42.5 3.50% convertible subordinated notes — 1.3 — 13.3 Stock options 1.4 4.4 2.3 4.6 Unvested restricted stock units 3.1 12.0 3.8 12.4 Interest expense excluded: 4.50% convertible subordinated notes $ 0.9 $ 0.9 $ 2.7 $ 2.7 3.50% convertible subordinated notes $ — $ 0.1 $ — $ 1.8 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 December 31, 2016 and March 31, 2016, we issued non-cancelable commitments for $52.9 million and $42.2 million , respectively, to purchase inventory from our contract manufacturers and suppliers. Legal Proceedings Crossroads 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. On January 29, 2016, the Patent Trial and Appeal Board issued decisions on the inter partes reviews for U.S. patents 6,425,035 and 7,051,147, ordering all claims of both patents to be unpatentable. On March 17, 2016, the Patent Trial and Appeal Board issued a decision on the inter partes review for U.S. patent 7,934,041, ordering all claims to be unpatentable. On March 31, 2016, Crossroads filed Notices of Appeal in each of the inter partes review decisions. We believe the probability that this lawsuit will have a material adverse effect on our business, operating results or financial condition is remote. Realtime Data On July 22, 2016, Realtime Data LLC d/b/a IXO(“Realtime Data”) filed a patent infringement lawsuit against Quantum in the U.S. District Court for the Eastern District of Texas, alleging infringement of U.S. patents 7,161,506, 7,378,992, 7,415,530, 8,643,513, 9,054,728 and 9,116,908. Realtime Data asserts that we have incorporated Realtime Data’s patented technology into our deduplication products and services. Realtime Data seeks unspecified monetary damages and other relief that the Court deems appropriate. We believe the probability that this lawsuit will have a material adverse effect on our business, operating results or financial condition is remote. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“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 may be applied prospectively to all agreements entered into or materially modified after the adoption date or retrospectively. We adopted ASU 2015-05 prospectively in the first quarter of fiscal 2017 and adoption did not impact our statements of financial condition, results of operations, cash flows or financial statement disclosures. Recent Accounting Pronouncements 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. We evaluated our forecasted earnings, cash flows and liquidity to evaluate any potential situations, including payment of our convertible notes upon maturity, that would trigger additional assessment and reporting under this standard. Based upon such evaluation, we do not anticipate adoption will impact our statements of financial condition, results of operations, cash flows or financial statement disclosures. 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. Prospective application is required. As we currently adjust the carrying value of our inventory to the lower-of-cost or market, we do not anticipate adoption will have a material impact on our statements of financial condition, results of operations, cash flows or financial statement disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosures of financial instruments. ASU 2016-01 will become effective for us beginning April 1, 2018, or fiscal 2019. We must apply the provisions using a cumulative-effect adjustment to the balance sheet at the beginning of the year of adoption, or April 1, 2018. We are currently assessing what financial instruments are being impacted and the extent of the potential impact on our statements of financial condition, results of operations, cash flows and financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 provides a new comprehensive model for lease accounting. Under ASU 2016-02, lessees and lessors should apply a “right-of-use” model in accounting for all leases and eliminate the concept of operating leases and off-balance sheet leases. ASU 2016-02 will become effective for us beginning April 1, 2019, or fiscal 2020. ASU 2016-02 requires a modified retrospective transition approach with certain practical expedients available. We are currently putting in place the process for analyzing our current leases to evaluate the impact on our statements of financial condition, results of operations, cash flows and financial statement disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 will become effective for us beginning April 1, 2017, or fiscal 2018. Transition requirements vary based upon certain facts and circumstances, which we are in the process of evaluating to determine our approach. We are currently evaluating our existing share-based payments awards and the structure of future compensation plans to determine the potential impact on our statements of financial condition, results of operations, cash flows and financial statement disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on the following eight specific cash flow issues: 1) debt prepayment or debt extinguishment costs, 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, 3) contingent consideration payments made after a business combination, 4) proceeds from the settlement of insurance claims, 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, 6) distributions received from equity method investees, 7) beneficial interests in securitization transactions and 8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 transition requires the use of the retrospective method for all periods presented. We have evaluated the types of transactions impacted by ASU 2016-15 and at this time, anticipate only having immaterial debt extinguishment costs that are impacted and therefore, we do not anticipate adoption will have a material impact on our statements of cash flows. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 will become effective for us beginning April 1, 2018, or fiscal 2019. ASU 2016-16 requires the modified retrospective transition approach with a cumulative-effect adjustment to retained earnings at the beginning of the period of adoption. We currently do not have any material intra-entity transfers of assets and therefore we do not anticipate that adoption will have a material impact on our statements of financial condition, results of operations, cash flows or financial statement disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 will become effective for us beginning April 1, 2018, or fiscal 2019. ASU 2016-18 is required to be applied retrospectively. Upon the adoption, amounts described as restricted cash will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. The FASB issued the following accounting standard updates related to its revenue convergence project: • ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) in May 2014. 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 No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”) in March 2016. ASU 2016-08 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on principal versus agent considerations. • ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”) in April 2016. ASU 2016-10 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. • ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update) (“ASU 2016-11”) in May 2016. ASU 2016-11 rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 EITF meeting. The SEC Staff is rescinding SEC Staff Observer comments that are codified in Topic 605 and Topic 932, effective upon adoption of Topic 606. • ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients in May 2016. ASU 2016-12 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on a few narrow areas and adds some practical expedients to the guidance. These ASUs will become effective for us beginning April 1, 2018, or fiscal 2019. ASU 2014-09 and the related ASUs allow for either a retrospective or a modified retrospective transition approach. We plan to use a modified retrospective approach upon the adoption of Topic 606. We have initiated an assessment of the potential changes in our revenue recognition accounting policies for the new revenue standards, including our accounting for related commissions and extended product warranty costs. We are currently evaluating the impact of these changes as well as the impact of our rebate programs (“variable consideration”) and establishing the standalone selling price for each performance obligation which will help us to assess the overall impact of the adoption of Topic 606 on our financial condition, results of operations, cash flows and financial statement disclosures. |
REVISION OF PRIOR PERIOD FINA20
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Adjustment For Correction to Previous Periods | Consolidated Balance Sheets As of March 31, 2016 As Reported Adjustment As Revised Other current assets $ 6,953 $ 1,054 $ 8,007 Total current assets 211,591 1,054 212,645 Total assets 229,546 1,054 230,600 Accumulated deficit (597,994 ) 1,054 (596,940 ) Total stockholders’ deficit $ (126,939 ) $ 1,054 $ (125,885 ) Consolidated Statements of operations Three Months Ended Nine Months Ended December 31, 2015 December 31, 2015 As Reported Adjustment As Revised As Reported Adjustment As Revised Cost of product revenue $ 56,323 $ — $ 56,323 $ 156,360 $ 296 $ 156,656 Cost of service revenue 15,028 522 15,550 49,590 934 50,524 Total cost of revenue 71,351 522 71,873 205,950 1,230 207,180 Gross margin 56,697 (522 ) 56,175 149,979 (1,230 ) 148,749 Income (loss) from operations 1,954 (522 ) 1,432 (15,872 ) (1,230 ) (17,102 ) Income (loss) before income taxes 132 (522 ) (390 ) (21,164 ) (1,230 ) (22,394 ) Net income (loss) $ (299 ) $ (522 ) $ (821 ) $ (22,281 ) $ (1,230 ) $ (23,511 ) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 March 31, 2016 Money market funds $ — $ 1,640 |
Schedule of carrying value and fair value of financial liabilities | The carrying value and fair value of our convertible subordinated debt and long-term debt were as follows (in thousands): As of December 31, 2016 March 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Convertible subordinated debt (1) $ 64,219 $ 61,999 $ 69,253 $ 51,686 Long-term debt: (2) Credit agreement with Wells Fargo — — 65,709 65,741 Revolving credit agreement 24,219 25,998 — — Term loan agreement 48,020 50,001 — — Total long-term debt $ 72,239 $ 75,999 $ 65,709 $ 65,741 (1) Fair value based on quoted market prices in less active markets (level 2). (2) Fair value based on outstanding borrowings and market interest rates (level 2). |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of manufacturing inventories and service parts inventories | Manufacturing inventories and service parts inventories consisted of the following (in thousands): As of December 31, 2016 March 31, 2016 Manufacturing inventories: Finished goods $ 15,806 $ 22,127 Work in process 801 665 Materials and purchased parts 14,357 17,822 $ 30,964 $ 40,614 As of December 31, 2016 March 31, 2016 Service parts inventories: Finished goods $ 15,583 $ 16,381 Component parts 4,384 5,026 $ 19,967 $ 21,407 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying value of intangible assets | The following provides a summary of the carrying value of our long-lived assets (in thousands): As of December 31, 2016 March 31, 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Purchased technology $ 178,292 $ (177,980 ) $ 312 $ 178,292 $ (177,841 ) $ 451 Trademarks 3,900 (3,900 ) — 3,900 (3,900 ) — Customer lists 64,701 (64,701 ) — 64,701 (64,701 ) — $ 246,893 $ (246,581 ) $ 312 $ 246,893 $ (246,442 ) $ 451 |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
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 Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Beginning balance $ 3,371 $ 3,473 $ 3,430 $ 4,219 Additional warranties issued 1,477 1,550 5,083 4,680 Adjustments for warranties issued in prior fiscal years 182 228 583 159 Settlements (1,743 ) (1,829 ) (5,809 ) (5,636 ) Ending balance $ 3,287 $ 3,422 $ 3,287 $ 3,422 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our debt consisted of the following (in thousands): As of December 31, 2016 March 31, 2016 Convertible subordinated debt, current: 4.50% convertible subordinated notes $ 64,590 $ 70,000 Unamortized debt issuance costs (371 ) (747 ) Convertible subordinated debt, current, net of unamortized debt issuance costs $ 64,219 $ 69,253 As of December 31, 2016 March 31, 2016 Long-term debt, current: Credit agreement with Wells Fargo $ — $ 3,000 Long-term debt: Credit agreement with Wells Fargo $ — $ 62,709 Revolving credit agreement 26,000 — Term loan agreement 50,000 — Unamortized discount and debt issuance costs (3,761 ) — Long-term debt, net of unamortized discount and debt issuance costs $ 72,239 $ 62,709 |
Schedule of Maturities of Debt | A summary of the scheduled maturities for our principal outstanding debt as of December 31, 2016 follows (in thousands): Debt Maturity Due by Period Less than One Year One Year Two Years Three Years Four Years More than Five years Total 4.50% convertible subordinated notes $ 64,590 $ — $ — $ — $ — $ — $ 64,590 Long-term debt: Revolving credit agreement — — — — 26,000 — 26,000 Term loan agreement — 2,500 2,500 2,500 42,500 — 50,000 Total long-term debt $ — $ 2,500 $ 2,500 $ 2,500 $ 68,500 $ — $ 76,000 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Types of restructuring expense | The types of restructuring expense for the three and nine months ended December 31, 2016 and December 31, 2015 were (in thousands): Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Severance and benefits $ (13 ) $ 1,685 $ 1,437 $ 1,912 Facilities (92 ) 210 525 628 Total $ (105 ) $ 1,895 $ 1,962 $ 2,540 |
Activity for accrued restructuring charges | The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands): Three Months Ended December 31, 2015 Three Months Ended December 31, 2016 Severance Facilities Total Severance Facilities Total Beginning balance $ 257 $ 2,572 $ 2,829 $ 140 $ 2,378 $ 2,518 Restructuring costs 1,690 210 1,900 — (92 ) (92 ) Adjustment of prior estimates (5 ) — (5 ) (13 ) — (13 ) Cash payments (1,171 ) (1,022 ) (2,193 ) (1 ) (619 ) (620 ) Other non-cash — 57 57 — 82 82 Ending balance $ 771 $ 1,817 $ 2,588 $ 126 $ 1,749 $ 1,875 Nine Months Ended December 31, 2015 Nine Months Ended December 31, 2016 Severance and Benefits Facilities Total Severance and Benefits Facilities Total Beginning balance $ 189 $ 4,657 $ 4,846 $ 354 $ 2,383 $ 2,737 Restructuring costs 1,913 604 2,517 1,489 388 1,877 Adjustment of prior estimates (1 ) 24 23 (52 ) 137 85 Cash payments (1,330 ) (3,568 ) (4,898 ) (1,665 ) (1,283 ) (2,948 ) Other non-cash — 100 100 — 124 124 Ending balance $ 771 $ 1,817 $ 2,588 $ 126 $ 1,749 $ 1,875 |
Estimated timing of future payouts for accrued restructuring charges | As of December 31, 2016 Severance and Benefits Facilities Total Estimated timing of future payouts: Next twelve months $ 126 $ 1,179 $ 1,305 January 2018 through December 2021 — 570 570 $ 126 $ 1,749 $ 1,875 |
STOCK INCENTIVE PLANS AND SHA27
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
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 Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Share-based compensation: Cost of revenue $ 183 $ 313 $ 697 $ 1,006 Research and development 284 488 1,020 1,529 Sales and marketing 542 658 1,760 2,367 General and administrative 467 780 1,647 2,437 $ 1,476 $ 2,239 $ 5,124 $ 7,339 Share-based compensation by type of award: Stock options $ — $ — $ — $ 2 Restricted stock units 1,437 1,955 4,784 6,552 Stock purchase plan 39 284 340 785 $ 1,476 $ 2,239 $ 5,124 $ 7,339 |
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 nine month periods ended December 31, 2016 and December 31, 2015 were as follows: Nine Months Ended December 31, 2016 December 31, 2015 Option life (in years) 0.5 0.5 Risk-free interest rate 0.40 % 0.09 % Stock price volatility 81.88 % 64.61 % Weighted-average grant date fair value per share $ 0.23 $ 0.38 |
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, 2016 4,131 $ 1.52 Forfeited (303 ) 1.03 Expired (2,383 ) 0.99 Outstanding as of December 31, 2016 1,445 $ 2.50 1.20 $ 2,107 Vested and expected to vest at December 31, 2016 1,445 $ 2.50 1.20 $ 2,107 Exercisable as of December 31, 2016 1,445 $ 2.50 1.20 $ 2,107 |
Summary of activity relating to 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, 2016 11,109 $ 1.39 Granted 8,312 0.44 Vested (4,850 ) 1.38 Forfeited (875 ) 1.40 Nonvested at December 31, 2016 13,696 $ 0.81 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income (loss) per share | The following is the computation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Numerator: Net income (loss) $ 5,006 $ (821 ) $ 5,558 $ (23,511 ) Denominator: Weighted average shares: Basic 271,186 264,003 269,329 261,849 Dilutive shares from stock plans 3,257 — 2,144 — Diluted 274,443 264,003 271,473 261,849 Basic and diluted net income (loss) per share $ 0.02 $ (0.00 ) $ 0.02 $ (0.09 ) |
Schedule of antidilutive securities excluded from computation of diluted net income (loss) per share | The computations of diluted net income (loss) per share for the periods presented exclude the following because the effect would have been anti-dilutive (in millions): Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Weighted average shares excluded: 4.50% convertible subordinated notes 40.9 42.5 42.0 42.5 3.50% convertible subordinated notes — 1.3 — 13.3 Stock options 1.4 4.4 2.3 4.6 Unvested restricted stock units 3.1 12.0 3.8 12.4 Interest expense excluded: 4.50% convertible subordinated notes $ 0.9 $ 0.9 $ 2.7 $ 2.7 3.50% convertible subordinated notes $ — $ 0.1 $ — $ 1.8 |
REVISION OF PRIOR PERIOD FINA29
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Other current assets | $ 8,933 | $ 8,933 | $ 8,007 | ||
Total current assets | 192,622 | 192,622 | 212,645 | ||
Total assets | 229,661 | 229,661 | 230,600 | ||
Accumulated deficit | (591,382) | (591,382) | (596,940) | ||
Total stockholders’ deficit | (116,554) | (116,554) | (125,885) | ||
Cost of product revenue | 63,324 | $ 56,323 | 177,808 | $ 156,656 | |
Cost of service revenue | 15,158 | 15,550 | 45,328 | 50,524 | |
Total cost of revenue | 78,482 | 71,873 | 223,136 | 207,180 | |
Gross margin | 55,002 | 56,175 | 161,374 | 148,749 | |
Income (loss) from operations | 7,253 | 1,432 | 11,054 | (17,102) | |
Income (loss) before income taxes | 5,301 | (390) | 6,275 | (22,394) | |
Net income (loss) | 5,006 | (821) | 5,558 | (23,511) | |
As Reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Other current assets | 6,953 | ||||
Total current assets | 211,591 | ||||
Total assets | 229,546 | ||||
Accumulated deficit | (597,994) | ||||
Total stockholders’ deficit | (126,939) | ||||
Cost of product revenue | 56,323 | 156,360 | |||
Cost of service revenue | 15,028 | 49,590 | |||
Total cost of revenue | 71,351 | 205,950 | |||
Gross margin | 56,697 | 149,979 | |||
Income (loss) from operations | 1,954 | (15,872) | |||
Income (loss) before income taxes | 132 | (21,164) | |||
Net income (loss) | (299) | (22,281) | |||
Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Other current assets | 1,054 | ||||
Total current assets | 1,054 | ||||
Total assets | 1,054 | ||||
Accumulated deficit | 1,054 | ||||
Total stockholders’ deficit | $ 1,054 | ||||
Cost of product revenue | 0 | 296 | |||
Cost of service revenue | 522 | 934 | |||
Total cost of revenue | 522 | 1,230 | |||
Gross margin | (522) | (1,230) | |||
Income (loss) from operations | (522) | (1,230) | |||
Income (loss) before income taxes | (522) | (1,230) | |||
Net income (loss) | $ (522) | $ (1,230) | |||
Previously expensed costs for certain third party maintenance contracts | Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Accumulated deficit | $ 1,600 | $ 1,600 |
FAIR VALUE - Schedule of Fair V
FAIR VALUE - Schedule of Fair Value of Money Market Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Level 1 fair value measurements | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 1,640 |
FAIR VALUE - Schedule of Carryi
FAIR VALUE - Schedule of Carrying Value and Fair Value of Financial Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Carrying Value | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | $ 72,239 | $ 65,709 |
Level 2 fair value measurements | Fair Value | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | 75,999 | 65,741 |
Convertible subordinated debt | Carrying Value | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | 64,219 | 69,253 |
Convertible subordinated debt | Level 2 fair value measurements | Fair Value | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | 61,999 | 51,686 |
Credit agreement | Carrying Value | Credit agreement with Wells Fargo | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | 0 | 65,709 |
Credit agreement | Carrying Value | Revolving credit agreement | Revolving credit agreement | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | 24,219 | 0 |
Credit agreement | Level 2 fair value measurements | Fair Value | Credit agreement with Wells Fargo | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | 0 | 65,741 |
Credit agreement | Level 2 fair value measurements | Fair Value | Revolving credit agreement | Revolving credit agreement | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | 25,998 | 0 |
Term loan agreement | Carrying Value | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | 48,020 | 0 |
Term loan agreement | Level 2 fair value measurements | Fair Value | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Total long-term debt | $ 50,001 | $ 0 |
INVENTORIES - Schedule of Manuf
INVENTORIES - Schedule of Manufacturing Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Manufacturing inventories: | ||
Finished goods | $ 15,806 | $ 22,127 |
Work in process | 801 | 665 |
Materials and purchased parts | 14,357 | 17,822 |
Total manufacturing inventories | $ 30,964 | $ 40,614 |
INVENTORIES - Schedule of Servi
INVENTORIES - Schedule of Service Parts Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Service parts inventories: | ||
Finished goods | $ 15,583 | $ 16,381 |
Component parts | 4,384 | 5,026 |
Total service parts inventories | $ 19,967 | $ 21,407 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of carrying value of intangible assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 246,893 | $ 246,893 |
Accumulated Amortization | (246,581) | (246,442) |
Net Amount | 312 | 451 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 178,292 | 178,292 |
Accumulated Amortization | (177,980) | (177,841) |
Net Amount | 312 | 451 |
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 | 64,701 | 64,701 |
Accumulated Amortization | (64,701) | (64,701) |
Net Amount | $ 0 | $ 0 |
ACCRUED WARRANTY (Details)
ACCRUED WARRANTY (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 3,371 | $ 3,473 | $ 3,430 | $ 4,219 |
Additional warranties issued | 1,477 | 1,550 | 5,083 | 4,680 |
Adjustments for warranties issued in prior fiscal years | 182 | 228 | 583 | 159 |
Settlements | (1,743) | (1,829) | (5,809) | (5,636) |
Ending balance | $ 3,287 | $ 3,422 | $ 3,287 | $ 3,422 |
Minimum | ||||
Product Warranty Liability [Line Items] | ||||
Product warranty term (in years) | 1 year | |||
Maximum | ||||
Product Warranty Liability [Line Items] | ||||
Product warranty term (in years) | 3 years |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | $ (3,761) | $ 0 |
Long-term debt, current | 0 | 3,000 |
Long-term debt | 76,000 | |
Long-term debt, net of unamortized discount and debt issuance costs | 72,239 | 62,709 |
Revolving credit agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 26,000 | |
Convertible subordinated debt | ||
Debt Instrument [Line Items] | ||
4.50% convertible subordinated notes | 64,590 | 70,000 |
Unamortized discount and debt issuance costs | (371) | (747) |
Convertible subordinated debt, current, net of unamortized debt issuance costs | 64,219 | 69,253 |
Credit agreement | Credit agreement with Wells Fargo | ||
Debt Instrument [Line Items] | ||
Long-term debt, current | 0 | 3,000 |
Long-term debt | 0 | 62,709 |
Credit agreement | Revolving credit agreement | Revolving credit agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 26,000 | 0 |
Term loan agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | Oct. 21, 2016 | Nov. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Gain (loss) on debt extinguishment | $ (48,000) | $ (394,000) | $ (48,000) | $ (394,000) | |||
Debt issuance costs | $ 4,700,000 | ||||||
Refundable deposits | 1,000,000 | ||||||
Outstanding letters of credit | 72,239,000 | 72,239,000 | $ 62,709,000 | ||||
Long-term debt | 76,000,000 | 76,000,000 | |||||
Credit agreement | |||||||
Debt Instrument [Line Items] | |||||||
Reserve requirement | 20,000,000 | 20,000,000 | |||||
Debt issuance costs | 3,100,000 | ||||||
Debt discount | 1,000,000 | ||||||
Loan commitment fees | 600,000 | ||||||
Credit agreement | Letter of credit | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding letters of credit | 1,000,000 | 1,000,000 | |||||
Credit agreement with Wells Fargo | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of outstanding balance | 60,300,000 | ||||||
Credit agreement with Wells Fargo | Convertible subordinated debt | |||||||
Debt Instrument [Line Items] | |||||||
Gain (loss) on debt extinguishment | (100,000) | ||||||
Credit agreement with Wells Fargo | Credit agreement | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 0 | 0 | 62,709,000 | ||||
Term loan agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs | 1,200,000 | ||||||
Debt discount | 1,000,000 | ||||||
Long-term debt | 50,000,000 | 50,000,000 | |||||
DDTL | 20,000,000 | $ 20,000,000 | |||||
Interest rate during the period (percent) | 8.50% | ||||||
Term loan agreement | Federal funds rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.50% | ||||||
Term loan agreement | One month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.00% | ||||||
Term loan agreement | Base rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 3.00% | ||||||
Term loan agreement | Minimum | Prime rate quoted by the Wall Street Journal | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 6.00% | ||||||
Term loan agreement | Minimum | LIBOR rate plus senior net leverage ratio | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 7.00% | ||||||
Term loan agreement | Maximum | Prime rate quoted by the Wall Street Journal | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 7.25% | ||||||
Term loan agreement | Maximum | LIBOR rate plus senior net leverage ratio | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 8.25% | ||||||
Term loan agreement | Credit agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | 50,000,000 | ||||||
Revolving Credit Agreement with PNC | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs | 1,900,000 | ||||||
Loan commitment fee | 600,000 | ||||||
Commitment fee percentage on unused capacity (percent) | 0.375% | ||||||
Long-term debt | 26,000,000 | $ 26,000,000 | |||||
Revolving Credit Agreement with PNC | Federal funds rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.50% | ||||||
Revolving Credit Agreement with PNC | One month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.00% | ||||||
Revolving Credit Agreement with PNC | Minimum | One Month LIBOR margin | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.50% | ||||||
Revolving Credit Agreement with PNC | Maximum | One Month LIBOR margin | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 2.50% | ||||||
Revolving Credit Agreement with PNC | Credit agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | 26,000,000 | ||||||
Available uncommitted accordion | $ 20,000,000 | ||||||
Revolving Credit Agreement with PNC | Credit agreement | Revolving credit agreement | |||||||
Debt Instrument [Line Items] | |||||||
Restricted reserve funded amount | 10,000,000 | ||||||
Reserve requirement | $ 20,000,000 | ||||||
Borrowing capacity | 80,000,000 | 80,000,000 | |||||
Long-term debt | $ 26,000,000 | $ 26,000,000 | $ 0 | ||||
Line of credit at an interest rate | 3.31% | 3.31% | |||||
4.50% convertible subordinated notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 64,590,000 | $ 64,590,000 | |||||
Stated interest rate | 4.50% | 4.50% | |||||
Quarterly repayment of original principal balance (percent) | 1.25% | 1.25% | |||||
4.50% convertible subordinated notes | Convertible subordinated debt | |||||||
Debt Instrument [Line Items] | |||||||
Gain (loss) on debt extinguishment | $ 100,000 | ||||||
Stated interest rate | 4.50% | ||||||
Extinguishment of debt | $ 5,400,000 | ||||||
Cash paid for extinguishment of debt | $ 5,300,000 |
DEBT - Schedule of Maturities o
DEBT - Schedule of Maturities of Debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
Less than One Year | $ 0 |
One Year | 2,500 |
Two Years | 2,500 |
Three Years | 2,500 |
Four Years | 68,500 |
More than Five years | 0 |
Carrying Value | 76,000 |
4.50% convertible subordinated notes | |
Debt Instrument [Line Items] | |
Less than One Year | 64,590 |
One Year | 0 |
Two Years | 0 |
Three Years | 0 |
Four Years | 0 |
More than Five years | 0 |
Carrying Value | 64,590 |
Revolving credit agreement | |
Debt Instrument [Line Items] | |
Less than One Year | 0 |
One Year | 0 |
Two Years | 0 |
Three Years | 0 |
Four Years | 26,000 |
More than Five years | 0 |
Carrying Value | 26,000 |
Term loan agreement | |
Debt Instrument [Line Items] | |
Less than One Year | 0 |
One Year | 2,500 |
Two Years | 2,500 |
Three Years | 2,500 |
Four Years | 42,500 |
More than Five years | 0 |
Carrying Value | $ 50,000 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Apr. 30, 2016position | Nov. 30, 2015position | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ (105) | $ 1,895 | $ 1,962 | $ 2,540 | ||||
Severance and Benefits | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | (13) | 1,685 | 1,437 | 1,912 | ||||
Facilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ (92) | 210 | 525 | 628 | ||||
Fiscal 2017 April Restructuring Plan | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Positions eliminated (positions) | position | 29 | |||||||
Fiscal 2017 April Restructuring Plan | Severance and Benefits | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ 1,500 | 1,500 | ||||||
Fiscal 2017 April Restructuring Plan | Facilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ 200 | |||||||
Fiscal 2016 Restructuring Plan | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Positions eliminated (positions) | position | 65 | |||||||
Fiscal 2016 Restructuring Plan | Severance and Benefits | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ 2,000 | $ 1,700 | $ 1,700 |
RESTRUCTURING CHARGES - Summary
RESTRUCTURING CHARGES - Summary of Restructuring Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ (105) | $ 1,895 | $ 1,962 | $ 2,540 |
Severance and Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | (13) | 1,685 | 1,437 | 1,912 |
Facilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ (92) | $ 210 | $ 525 | $ 628 |
RESTRUCTURING CHARGES - Accrued
RESTRUCTURING CHARGES - Accrued Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 2,518 | $ 2,829 | $ 2,737 | $ 4,846 |
Restructuring costs | (92) | 1,900 | 1,877 | 2,517 |
Adjustment of prior estimates | (13) | (5) | 85 | 23 |
Cash payments | (620) | (2,193) | (2,948) | (4,898) |
Other non-cash | 82 | 57 | 124 | 100 |
Ending balance | 1,875 | 2,588 | 1,875 | 2,588 |
Severance and Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 140 | 257 | 354 | 189 |
Restructuring costs | 0 | 1,690 | 1,489 | 1,913 |
Adjustment of prior estimates | (13) | (5) | (52) | (1) |
Cash payments | (1) | (1,171) | (1,665) | (1,330) |
Other non-cash | 0 | 0 | 0 | 0 |
Ending balance | 126 | 771 | 126 | 771 |
Facilities | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 2,378 | 2,572 | 2,383 | 4,657 |
Restructuring costs | (92) | 210 | 388 | 604 |
Adjustment of prior estimates | 0 | 0 | 137 | 24 |
Cash payments | (619) | (1,022) | (1,283) | (3,568) |
Other non-cash | 82 | 57 | 124 | 100 |
Ending balance | $ 1,749 | $ 1,817 | $ 1,749 | $ 1,817 |
RESTRUCTURING CHARGES - Estimat
RESTRUCTURING CHARGES - Estimated Timing of Future Payouts (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | $ 1,875 |
Next twelve months | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 1,305 |
January 2018 through December 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 570 |
Severance and Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 126 |
Severance and Benefits | Next twelve months | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 126 |
Severance and Benefits | January 2018 through December 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 0 |
Facilities | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 1,749 |
Facilities | Next twelve months | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 1,179 |
Facilities | January 2018 through December 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | $ 570 |
STOCK INCENTIVE PLANS AND SHA44
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Summary of Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based compensation expense | ||||
Share-based compensation | $ 1,476 | $ 2,239 | $ 5,124 | $ 7,339 |
Stock options | ||||
Share-based compensation expense | ||||
Share-based compensation | 0 | 0 | 0 | 2 |
Restricted stock units | ||||
Share-based compensation expense | ||||
Share-based compensation | 1,437 | 1,955 | 4,784 | 6,552 |
Stock purchase plan | ||||
Share-based compensation expense | ||||
Share-based compensation | 39 | 284 | 340 | 785 |
Cost of revenue | ||||
Share-based compensation expense | ||||
Share-based compensation | 183 | 313 | 697 | 1,006 |
Research and development | ||||
Share-based compensation expense | ||||
Share-based compensation | 284 | 488 | 1,020 | 1,529 |
Sales and marketing | ||||
Share-based compensation expense | ||||
Share-based compensation | 542 | 658 | 1,760 | 2,367 |
General and administrative | ||||
Share-based compensation expense | ||||
Share-based compensation | $ 467 | $ 780 | $ 1,647 | $ 2,437 |
STOCK INCENTIVE PLANS AND SHA45
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Narratives (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted (in shares) | 0 | 0 | 0 | 0 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair values of RSUs granted (usd per share) | $ 0.74 | $ 0.82 | $ 0.44 | $ 1.64 |
Granted (shares) | 8,312,000 | |||
Performance RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair values of RSUs granted (usd per share) | $ 0.43 | |||
Granted (shares) | 3,400,000 | |||
Fair value at the grant date | $ 1.4 | |||
Share-based compensation expense | $ 0.1 | $ 0.3 |
STOCK INCENTIVE PLANS AND SHA46
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Assumptions Used to Valuing Stock Purchase Plan (Details) - Stock purchase plan - $ / shares | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option life (in years) | 6 months | 6 months |
Risk-free interest rate | 0.40% | 0.09% |
Stock price volatility (percent) | 81.88% | 64.61% |
Weighted-average grant date fair value per share (usd per share) | $ 0.23 | $ 0.38 |
STOCK INCENTIVE PLANS AND SHA47
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Summary of Activity Relating to Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Options | |
Outstanding, beginning balance (shares) | shares | 4,131 |
Forfeited (shares) | shares | (303) |
Expired (shares) | shares | (2,383) |
Outstanding, ending balance (shares) | shares | 1,445 |
Vested and expected to vest at end of period (shares) | shares | 1,445 |
Exercisable at end of period (shares) | shares | 1,445 |
Weighted- Average Exercise Price | |
Outstanding, beginning balance (usd per share) | $ / shares | $ 1.52 |
Forfeited (usd per share) | $ / shares | 1.03 |
Expired (usd per share) | $ / shares | 0.99 |
Outstanding, ending balance (usd per share) | $ / shares | 2.50 |
Vested and expected to vest at end of period (usd per share) | $ / shares | 2.50 |
Exercisable at end of period (usd per share) | $ / shares | $ 2.50 |
Weighted- Average Remaining Contractual Term | |
Outstanding (term) | 1 year 2 months 13 days |
Vested and expected to vest (term) | 1 year 2 months 13 days |
Exercisable (term) | 1 year 2 months 13 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 2,107 |
Vested and expected to vest | $ | 2,107 |
Exercisable | $ | $ 2,107 |
STOCK INCENTIVE PLANS AND SHA48
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Summary of Activity Relating to Restricted Stock Units (Details) - Restricted stock units - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||||
Nonvested, beginning balance (shares) | 11,109 | |||
Granted (shares) | 8,312 | |||
Vested (shares) | (4,850) | |||
Forfeited (shares) | (875) | |||
Nonvested, ending balance (shares) | 13,696 | 13,696 | ||
Weighted-Average Grant Date Fair Value Per Share | ||||
Nonvested, beginning balance (usd per share) | $ 1.39 | |||
Granted (usd per share) | $ 0.74 | $ 0.82 | 0.44 | $ 1.64 |
Vested (usd per share) | 1.38 | |||
Forfeited (usd per share) | 1.40 | |||
Nonvested, ending balance (usd per share) | $ 0.81 | $ 0.81 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 295 | $ 431 | $ 717 | $ 1,117 |
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 | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | ||||
Net income (loss) | $ 5,006 | $ (821) | $ 5,558 | $ (23,511) |
Weighted average shares: | ||||
Basic (shares) | 271,186 | 264,003 | 269,329 | 261,849 |
Dilutive shares from stock plans | 3,257 | 0 | 2,144 | 0 |
Diluted (shares) | 274,443 | 264,003 | 271,473 | 261,849 |
Basic and diluted net income (loss) per share (usd per share) | $ 0.02 | $ 0 | $ 0.02 | $ (0.09) |
NET INCOME (LOSS) PER SHARE - A
NET INCOME (LOSS) PER SHARE - Anti-dilutive shares excluded from the computations of diluted net income (loss) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded (shares) | 1.4 | 4.4 | 2.3 | 4.6 |
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded (shares) | 3.1 | 12 | 3.8 | 12.4 |
4.50% convertible subordinated notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded (shares) | 40.9 | 42.5 | 42 | 42.5 |
Interest expense excluded | $ 0.9 | $ 0.9 | $ 2.7 | $ 2.7 |
Stated interest rate | 4.50% | 4.50% | ||
3.50% convertible subordinated notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded (shares) | 0 | 1.3 | 0 | 13.3 |
Interest expense excluded | $ 0 | $ 0.1 | $ 0 | $ 1.8 |
Stated interest rate | 3.50% | 3.50% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remaining purchase commitments | $ 52.9 | $ 42.2 |