Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2015 | Jul. 02, 2015 | Oct. 31, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AMSWA | ||
Entity Registrant Name | AMERICAN SOFTWARE INC | ||
Entity Central Index Key | 713,425 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 241.2 | ||
Class A Common Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 26,028,715 | ||
Class B Common Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,587,086 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 44,655 | $ 55,803 |
Investments | 17,584 | 14,796 |
Trade accounts receivable, less allowance for doubtful accounts of $215 at April 30, 2015 and $222 at April 30, 2014: | ||
Billed | 16,018 | 15,422 |
Unbilled | 3,585 | 3,234 |
Prepaid expenses and other current assets | 3,748 | 4,092 |
Total current assets | 85,590 | 93,347 |
Investments-noncurrent | 13,156 | 8,975 |
Property and equipment, net | 3,548 | 3,681 |
Capitalized software, net | 9,815 | 10,732 |
Goodwill | 18,749 | 13,819 |
Other intangibles, net | 2,748 | 534 |
Other assets | 660 | 132 |
Total assets | 134,266 | 131,220 |
Current liabilities: | ||
Accounts payable | 920 | 1,382 |
Accrued compensation and related costs | 3,048 | 3,532 |
Dividends payable | 2,861 | 2,822 |
Other current liabilities | 3,274 | 2,735 |
Deferred income taxes | 636 | 418 |
Deferred revenue | 28,511 | 23,638 |
Total current liabilities | 39,250 | 34,527 |
Deferred income taxes | 995 | 1,936 |
Long-term deferred revenue | 290 | 670 |
Other long-term liabilities | 805 | 1,527 |
Total liabilities | 41,340 | 38,660 |
Shareholders' equity: | ||
Additional paid-in capital | 110,829 | 106,203 |
Retained earnings | 4,159 | 7,368 |
Class A treasury stock, 4,568,297 shares at April 30, 2015 and 4,444,815 shares at April 30, 2014, at cost | (25,378) | (24,278) |
Total shareholders' equity | $ 92,926 | $ 92,560 |
Commitments and contingencies | ||
Total liabilities and shareholders' equity | $ 134,266 | $ 131,220 |
Class A Common Shares | ||
Shareholders' equity: | ||
Common stock value | 3,057 | 3,008 |
Class B Common Shares | ||
Shareholders' equity: | ||
Common stock value | $ 259 | $ 259 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Allowance for doubtful accounts receivable | $ 215 | $ 222 |
Class A treasury stock, shares | 4,568,297 | 4,444,815 |
Class A Common Shares | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 30,566,099 | 30,075,187 |
Class B Common Shares | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,587,086 | 2,587,086 |
Common stock, shares outstanding | 2,587,086 | 2,587,086 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||||
Revenues: | ||||||
License | $ 16,748 | $ 20,011 | $ 21,184 | |||
Services and other | 47,215 | 44,377 | 45,323 | |||
Maintenance | 38,910 | 36,213 | 33,960 | |||
Total revenues | 102,873 | 100,601 | 100,467 | |||
Cost of revenues: | ||||||
License | 7,675 | 4,043 | 6,026 | |||
Services and other | 34,204 | 31,645 | 31,870 | |||
Maintenance | 8,580 | 8,027 | 7,664 | |||
Total cost of revenues | 50,459 | 43,715 | 45,560 | |||
Gross margin | 52,414 | 56,886 | 54,907 | |||
Research and development | 11,088 | 9,074 | 8,882 | |||
Sales and marketing | 18,667 | 20,414 | 19,829 | |||
General and administrative | 12,923 | 12,401 | 11,911 | |||
Amortization of acquisition-related intangibles | 394 | 472 | 501 | |||
Total operating expenses | 43,072 | 42,361 | 41,123 | |||
Operating income | 9,342 | 14,525 | 13,784 | |||
Other income: | ||||||
Interest income | 1,229 | 935 | 1,140 | |||
Other, net, primarily investment (loss)/income | (169) | 437 | 601 | |||
Earnings before income taxes | 10,402 | 15,897 | 15,525 | |||
Income tax expense | 2,274 | 5,566 | 5,114 | |||
Net earnings | $ 8,128 | $ 10,331 | $ 10,411 | |||
Earnings per common share: | ||||||
Basic | [1] | $ 0.29 | $ 0.37 | $ 0.38 | ||
Diluted | [1] | $ 0.28 | [2] | $ 0.37 | [2] | $ 0.38 |
Shares used in the calculation of earnings per common share: | ||||||
Basic | 28,283 | 27,636 | 27,173 | |||
Diluted | 28,614 | 28,111 | 27,629 | |||
[1] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.29, $0.37 and $0.38 for the years ended April 30, 2015, 2014 and 2013, respectively. See Note 1 to the Consolidated Financial Statements. | |||||
[2] | Quarterly amounts may not sum to full year total due to rounding. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Apr. 30, 2015 | [1] | Jan. 31, 2015 | [1] | Oct. 31, 2014 | [1] | Jul. 31, 2014 | [1] | Apr. 30, 2014 | [1] | Jan. 31, 2014 | [1] | Oct. 31, 2013 | [1] | Jul. 31, 2013 | [1] | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||||
Diluted | $ 0.09 | $ 0.10 | $ 0.04 | $ 0.05 | $ 0.09 | $ 0.09 | $ 0.13 | $ 0.06 | $ 0.28 | [1],[2] | $ 0.37 | [1],[2] | $ 0.38 | [2] | ||||||||
Class B Common Shares | ||||||||||||||||||||||
Diluted | $ 0.29 | [3] | $ 0.37 | [3] | $ 0.38 | |||||||||||||||||
[1] | Quarterly amounts may not sum to full year total due to rounding. | |||||||||||||||||||||
[2] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.29, $0.37 and $0.38 for the years ended April 30, 2015, 2014 and 2013, respectively. See Note 1 to the Consolidated Financial Statements. | |||||||||||||||||||||
[3] | Amounts adjusted for rounding |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Class A Common Shares | Class B Common Shares | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Beginning Balance at Apr. 30, 2012 | $ 83,030 | $ 2,880 | $ 259 | $ 95,386 | $ 8,024 | $ (23,519) |
Beginning Balance (in shares) at Apr. 30, 2012 | 28,798,490 | 2,587,086 | ||||
Proceeds from stock options exercised (in shares) | 386,356 | 386,356 | ||||
Proceeds from stock options exercised | $ 1,990 | $ 38 | 1,952 | |||
Stock-based compensation | 1,476 | 1,476 | ||||
Net earnings | 10,411 | 10,411 | ||||
Dividends declared | (13,037) | (13,037) | ||||
Repurchase of common shares | (759) | (759) | ||||
Tax benefit of stock option exercises | 133 | 133 | ||||
Ending Balance at Apr. 30, 2013 | $ 83,244 | $ 2,918 | $ 259 | 98,947 | 5,398 | (24,278) |
Ending Balance (in shares) at Apr. 30, 2013 | 29,184,846 | 2,587,086 | ||||
Proceeds from stock options exercised (in shares) | 890,341 | 890,341 | ||||
Proceeds from stock options exercised | $ 5,476 | $ 90 | 5,386 | |||
Stock-based compensation | 1,509 | 1,509 | ||||
Net earnings | 10,331 | 10,331 | ||||
Dividends declared | (8,361) | (8,361) | ||||
Tax benefit of stock option exercises | 361 | 361 | ||||
Ending Balance at Apr. 30, 2014 | $ 92,560 | $ 3,008 | $ 259 | 106,203 | 7,368 | (24,278) |
Ending Balance (in shares) at Apr. 30, 2014 | 30,075,187 | 2,587,086 | ||||
Proceeds from stock options exercised (in shares) | 490,912 | 490,912 | ||||
Proceeds from stock options exercised | $ 2,725 | $ 49 | 2,676 | |||
Stock-based compensation | 1,530 | 1,530 | ||||
Net earnings | 8,128 | 8,128 | ||||
Dividends declared | (11,337) | (11,337) | ||||
Repurchase of common shares | (1,100) | (1,100) | ||||
Tax benefit of stock option exercises | 420 | 420 | ||||
Ending Balance at Apr. 30, 2015 | $ 92,926 | $ 3,057 | $ 259 | $ 110,829 | $ 4,159 | $ (25,378) |
Ending Balance (in shares) at Apr. 30, 2015 | 30,566,099 | 2,587,086 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Cash flows from operating activities: | |||
Net earnings | $ 8,128 | $ 10,331 | $ 10,411 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 5,833 | 2,605 | 4,153 |
Stock-based compensation expense | 1,530 | 1,509 | 1,476 |
Bond amortization | 1 | 15 | |
Accretion of liability from purchase of business | 11 | 8 | |
Tax benefit of options exercised | 420 | 615 | 133 |
Excess tax benefits from stock-based compensation | (384) | (611) | (131) |
Net loss (gain) on investments | 638 | 304 | (328) |
Retirement of property and equipment | 90 | ||
Deferred income tax (benefit) expense | (723) | 956 | 192 |
Changes in operating assets and liabilities, net of effects of acquisition: | |||
Purchases of trading securities | (18,806) | (14,751) | (14,710) |
Proceeds from sales and maturities of trading securities | 11,204 | 15,702 | 16,334 |
Accounts receivable, net | (400) | (1,609) | 2,892 |
Prepaid expenses and other assets | 350 | (1,218) | 22 |
Accounts payable and other liabilities | (1,870) | 1,465 | (3,271) |
Deferred revenue | 4,093 | 3,004 | 1,850 |
Net cash provided by operating activities | 10,024 | 18,311 | 19,128 |
Cash flows from investing activities: | |||
Capitalized computer software development costs | (2,747) | (2,949) | (3,418) |
Purchases of property and equipment, net of disposals | (1,028) | (255) | (736) |
Proceeds from maturities of investments | 225 | 1,188 | |
Purchase of business, net of cash acquired | (7,909) | (1,241) | |
Net cash used in investing activities | (11,684) | (4,220) | (2,966) |
Cash flows from financing activities: | |||
Repurchase of common stock | (1,100) | (759) | |
Excess tax benefits from stock-based compensation | 384 | 611 | 131 |
Proceeds from exercise of stock options | 2,725 | 5,476 | 1,990 |
Payment for accrued acquisition consideration | (200) | ||
Dividends paid | (11,297) | (5,539) | (15,471) |
Net cash (used in) provided by financing activities | (9,488) | 548 | (14,109) |
Net change in cash and cash equivalents | (11,148) | 14,639 | 2,053 |
Cash and cash equivalents at beginning of year | 55,803 | 41,164 | 39,111 |
Cash and cash equivalents at end of year | 44,655 | 55,803 | 41,164 |
Supplemental disclosures of cash paid during the year for: | |||
Income taxes | 2,597 | 4,565 | $ 5,206 |
Supplemental disclosures of noncash operating, investing and financing activities: | |||
Accrual of dividends payable | $ 2,861 | $ 2,822 |
Presentation and Summary of Sig
Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2015 | |
Presentation and Summary of Significant Accounting Policies | (1) Presentation and Summary of Significant Accounting Policies (a) Basis of Presentation Founded in 1970 and headquartered in Atlanta, Georgia, American Software, Inc. and its subsidiaries (collectively, the “Company”) are engaged in the development, marketing, and support activities of a broad range of computer business application software products. The Company’s operations are principally in the computer software industry, and its products and services are used by customers within the United States and certain international markets. We provide our software solutions through three major business segments, which are further broken down into a total of four major product and service groups. The three business segments are (1) Supply Chain Management (SCM), (2) Enterprise Resource Planning (ERP), and (3) Information Technology (IT) Consulting. • The SCM segment consists of our subsidiary, Logility, Inc. (see Note 9), which provides collaborative supply chain solutions to streamline and optimize the production, distribution and management of products between trading partners and Demand Management, Inc. (“DMI”), a wholly-owned subsidiary of Logility. • The ERP segment consists of (1) American Software USA, Inc., which provides purchasing and materials management, customer order processing, financial, e-commerce, Flow Manufacturing and traditional manufacturing solutions, and (2) New Generation Computing (NGC), which provides industry specific business software to both retailers and manufacturers primarily in the apparel, sewn products and furniture industries. • The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm. (b) Principles of Consolidation The consolidated financial statements include the accounts of American Software, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. (c) Revenue Recognition and Deferred Revenue The Company recognizes revenue predominately in accordance with the Software Revenue Recognition Topic of the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification. License. Maintenance. Services. , Subscription and other recurring revenues include fees for access rights to software solutions that are offered under a subscription-based delivery model where the users have the right to take possession of the software. Under this model, the software applications are hosted by the Company or by a third party and the customer accesses and uses the software on an as-needed basis over the Internet or via a dedicated line. The underlying arrangements typically (i) include a single fee for the service that is billed monthly, quarterly or annually, (ii) cover a period from 36 to 60 months and (iii) provides the customer with an option to take delivery of the software at any time during or after the subscription term. In addition, subscription and other recurring revenues include subscription-based software license revenues where the customer has taken physical possession of the software for a defined period of time. Subscription revenues are recognized ratably over the subscription term because the Company is unable to establish VSOE and separate the various elements, beginning on the commencement date of each contract. As of April 30, 2015, revenue recorded under this accounting treatment has not been significant. Indirect Channel Revenue. Deferred Revenue. Sales Taxes. . Unbilled Accounts Receivable. (d) Cost of Revenues Cost of revenues for licenses includes amortization of capitalized computer software development costs, salaries and benefits and value-added reseller (VAR) commissions. Costs for maintenance and services revenues include the cost of personnel to conduct implementations, customer support and consulting, and other personnel-related expenses as well as agent commission expenses related to maintenance revenues generated by the indirect channel. Commission costs for maintenance are deferred and amortized over the related maintenance term. (e) Cash Equivalents Cash equivalents of $43.0 million and $51.6 million at April 30, 2015 and 2014, respectively, consist of overnight repurchase agreements and money market deposit accounts. The Company considers all such investments with original maturities of three months or less to be cash equivalents for purposes of the consolidated statements of cash flows. (f) Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, short- and long-term investments and accounts receivable. The Company maintains cash and cash equivalents and short- and long-term investments with various financial institutions. The Company’s sales are primarily to companies located in North America and Europe. The Company performs periodic credit evaluations of its customers’ financial condition and does not require collateral. Accounts receivable are due principally from companies under stated contract terms. (g) Returns and Allowances The Company has not experienced significant returns or warranty claims to date and, as a result, the allowance for the cost of returns and product warranty claims at April 30, 2015 or 2014 is not significant. The Company records an allowance for doubtful accounts based on the historical experience of write-offs and a detailed assessment of accounts receivable. The total amounts of expense/(recovery) to operations were approximately $178,000, $(56,000), and $216,000 for 2015, 2014, and 2013, respectively, which are included in general and administrative expenses in the accompanying consolidated statements of operations. In estimating the allowance for doubtful accounts, management considers the age of the accounts receivable, the Company’s historical write-offs, and the credit worthiness of the customer, among other factors. Should any of these factors change, the estimates made by management will also change accordingly, which could affect the level of the Company’s future provision for doubtful accounts. Uncollectible accounts are written off when it is determined that the specific balance is not collectible. (h) Investments Investments consist of commercial paper, corporate bonds, government securities, certificates of deposits and marketable equity securities. The Company accounts for its investments in accordance with the Investments—Debt and Equity Securities Topic of the FASB Accounting Standards Codification. The Company has classified its investment portfolio as “trading.” “Trading” securities are bought and held principally for the purpose of selling them in the near term and are recorded at fair value. Unrealized gains and losses on trading securities are included in the determination of net earnings. For the purposes of computing realized gains and losses, cost is identified on a specific identification basis. Investments with maturities less than one year as of the balance sheet date are classified as short-term investments and those that mature greater than one year are classified as long-term investments. (i) Furniture, Equipment, and Purchased Computer Software Furniture, equipment and purchased computer software are recorded at cost, less accumulated depreciation and amortization. Depreciation of buildings, computer equipment, purchased computer software, office furniture and equipment is calculated using the straight-line method based upon the estimated useful lives of the assets (three years for computer equipment and software, seven years for office furniture and equipment and thirty years for buildings). Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the assets or the related lease term, whichever is shorter. Depreciation and amortization expense on buildings, furniture, equipment and purchased computer software was $1,193,000, $1,056,000, and $1,076,000 in 2015, 2014 and 2013, respectively. (j) Capitalized Computer Software Development Costs The Company capitalizes certain computer software development costs in accordance with the FASB Accounting Standards Codification Costs of Software to be Sold, Leased or Marketed Topic. Costs incurred internally to create a computer software product or to develop an enhancement to an existing product are charged to expense when incurred as research and development expense until technological feasibility for the respective product is established. Thereafter, all software development costs are capitalized and reported at the lower of unamortized cost or net realizable value. Capitalization ceases when the product or enhancement is available for general release to customers. The Company makes ongoing evaluations of the recoverability of its capitalized software projects by comparing the net amount capitalized for each product to the estimated net realizable value of the product. If such evaluations indicate that the unamortized software development costs exceed the net realizable value, the Company writes off the amount by which the unamortized software development costs exceed net realizable value. Capitalized computer software development costs are being amortized ratably on a straight-line basis over three years. Amortization of capitalized computer software development costs is included in the cost of license revenues in the consolidated statements of operations. Total Expenditures and Amortization. Years ended April 30, 2015 2014 2013 (in thousands) Total capitalized computer software development costs $ 2,747 $ 2,949 $ 3,418 Total research and development expense 11,088 9,074 8,882 Total research and development expense and capitalized computer software-development costs $ 13,835 $ 12,023 $ 12,300 Total amortization of capitalized computer software development costs $ 3,663 $ 925 $ 2,501 Capitalized computer software development costs consist of the following at April 30, 2015 and 2014 (in thousands): 2015 2014 Capitalized computer software development costs $ 22,067 $ 19,321 Accumulated amortization (12,252 ) (8,589 ) $ 9,815 $ 10,732 Of the Company’s capitalized software projects that are currently completed and being amortized, the Company expects amortization expense for the next three years to be as follows (in thousands): 2016 $ 3,893 2017 3,593 2018 229 $ 7,715 (k) Acquisition-Related Intangible Assets (exclusive of Logility’s treasury stock repurchases) Acquisition-related intangible assets are stated at historical cost and include acquired software and certain other intangible assets with definite lives. The intangible assets are being amortized over a period ranging from two to six years. For 2015, total amortization expense related to acquisition-related intangible assets was approximately $970,000, with $394,000 included in operating expense and $576,000 included in cost of license fees in the accompanying consolidated statements of operations. For 2014, total amortization expense related to acquisition-related intangible assets was approximately $561,000, with $472,000 included in operating expense and $88,000 included in cost of license fees in the accompanying consolidated statements of operations. Total amortization expense related to acquisition-related intangible assets was approximately $501,000 for 2013 and is included in operating expense in the accompanying consolidated statements of operations. Acquisition-Related Intangible Assets consist of the following at April 30, 2015 and 2014 (in thousands): 2015 2014 Current technology $ 3,342 $ 1,842 Customer relationships 2,190 790 Non-Compete 290 — Trademarks 76 76 5,898 2,708 Accumulated amortization (3,150 ) (2,180 ) $ 2,748 $ 528 The Company expects amortization expense for the next five years to be as follows based on intangible assets as of April 30, 2015 (in thousands): 2016 $ 890 2017 890 2018 254 2019 175 2020 175 Thereafter 364 $ 2,748 (l) Goodwill and Other Intangibles Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the Intangibles-Goodwill and Other Topic of the FASB Accounting Standards Codification. The Company evaluates the carrying value of goodwill annually and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. When evaluating whether the goodwill is impaired, the Company compares the fair value of the reporting unit to which the goodwill is assigned to its carrying amount, including goodwill. The Company identifies the reporting unit on a basis that is similar to its method for identifying operating segments as defined by the Segment Reporting Topic of the FASB Accounting Standards Codification. If the carrying amount of a reporting unit exceeds its fair value, then the amount of the impairment loss must be measured. This evaluation is applied annually on each impairment testing date (April 30) unless there is a triggering event present during an interim period. The Company used the Income and Market approaches to test for goodwill impairment as of the Valuation Date. The methodology utilized to implement the Income approach was the discounted cash flow (DCF) methodology. The methodologies utilized to implement the Market approach were the comparable company methodology (CCM) and the comparable transaction methodology (CTM). The valuation approaches we utilize in determining the fair value for each reporting unit were weighted 50%, 15%, and 35%, for the DCF, CTM, and CCM, respectively. In order to determine the proper weight given to each approach, the Company considers the methodologies utilized to implement each approach and the overall and industry-specific economic conditions and assumptions, which could affect the quality of the underlying data supporting each analysis. The Company considers the following valuation factors in connection with performing annual impairment testing: • The nature of the business or entity, the risks to which it is subject, and its historical patterns of growth; • The general economic outlook, the position of the industry in the existing economy, and the position of the business or entity within its industry; • The book value and general financial condition of the business or entity; • The earnings history and earnings capacity of the business or entity; • The dividend-paying capacity of the business or entity; • The market prices of stocks of businesses engaged in related activities, where such stocks are traded on an exchange or over-the-counter; • Any recent sales of the common stock of the business and the size of the block of stock to be valued; • The existence of undervalued tangible and intangible assets; and • Other special factors and circumstances of the business or entity that can be judged as important to the overall value. As noted above, the DCF methodology was given the most weight. The material assumptions utilized within this methodology were the long-term growth rate, weighted average cost of capital, financial projections, projected debt free cash flow and tax rate. The assumptions used by the Company have not changed materially from the prior year. In the event of impairment, the loss would be calculated by comparing the implied fair value of reporting unit goodwill to its carrying amount. In calculating the implied fair value of goodwill, the fair value of the reporting unit is allocated to all of the other assets and liabilities of that unit based on their fair values. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. The Company performed its periodic review of this goodwill for impairment as of April 30, 2015 and did not identify any goodwill impairment as a result of the review. The Company applied the simplified goodwill impairment test for the fiscal years ended April 30, 2014 and 2013, that permits companies to perform a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all or selected reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is not more likely than not that the unit’s fair value is less than its carrying amount. To the extent the Company concludes it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the respective carrying value. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. The Company did not identify any macroeconomic or industry conditions as of April 30, 2014 and 2013, that would indicate the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate it is more likely than not that the fair value of any reporting units have fallen below their carrying value, the Company would test such reporting unit for impairment. Intangible assets with estimable useful lives are required to be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with the Property, Plant, and Equipment Topic of the FASB Accounting Standards Codification. Goodwill consisted of the following by segment (in thousands): Enterprise Resource Supply Chain IT Total Balance at April 30, 2013 $ 1,812 $ 10,789 $ — $ 12,601 Goodwill related to the Taylor Manufacturing Systems, USA, LLC Acquisition — 1,218 — 1,218 Balance at April 30, 2014 1,812 12,007 $ — 13,819 Goodwill related to the MID Retail, Inc. Acquisition — 4,930 — 4,930 Balance at April 30, 2015 $ 1,812 $ 16,937 $ — $ 18,749 * Goodwill related to New Generation Computing, Inc. ** Goodwill related to Logility, Inc., Demand Management, Inc. and their acquisitions Intangible Assets (including Acquisition-Related Intangible Assets) consisted of the following by segment (in thousands): Enterprise Resource Supply Chain IT Total Balance at April 30, 2013 $ — $ 687 $ — $ 687 Intangibles related to the Taylor Manufacturing Systems, USA, LLC Acquisition — 472 — 472 Amortization expense — (625 ) — (625 ) Balance at April 30, 2014 — 534 — 534 Intangibles related to the MID Retail, Inc. Acquisition — 3,190 — 3,190 Amortization expense — (976 ) — (976 ) Balance at April 30, 2015 $ — $ 2,748 $ — $ 2,748 Goodwill and intangible assets include the effects of applying purchase accounting resulting from Logility’s stock repurchases in prior years. Total amortization expense related to Logility Stock Buy-back Step Acquisition and purchased software was approximately $6,000, $64,000 and $75,000 for 2015, 2014 and 2013, respectively. For purposes of the disclosure above, amounts related to the buyback of Logility stock are presented as a component of the SCM segment. Intangible assets related to Logility Stock Buy-back Step Acquisition and purchased software consist of the following (in thousands): 2015 2014 Distribution Channel $ 75 $ 75 Customer Relationships 477 477 Trademarks 155 155 707 707 Accumulated amortization (707 ) (701 ) $ — $ 6 (m) Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. (n) Use of Estimates The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including, but not limited to those related to collectability, bad debts, capitalized software costs, goodwill, intangible asset impairment, income taxes, allocation of fair values in acquisitions and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results could differ materially from these estimates under different assumptions or conditions. (o) Stock Compensation Plans The Company has four stock-based employee compensation plans under which options to purchase common stock of the Company were outstanding as of April 30, 2015. Those plans are described more fully in Note 7. In addition to two American Software plans, effective July 9, 2009, the Company adopted the Logility, Inc. 1997 Stock Plan and Logility, Inc. 2007 Stock Plan as equity plans of the Company in conjunction with the Company’s acquisition of the shares of Logility common stock it did not previously own. The Company recorded stock option compensation cost of approximately $1,530,000, $1,509,000 and $1,476,000 and related income tax benefits of approximately $542,000, $496,000 and $436,000 for the years ended April 30, 2015, 2014 and 2013, respectively. Stock-based compensation expense on current year grants is recorded on a straight-line basis over the vesting period for the entire award directly to additional paid-in capital. Cash flows resulting from the tax benefits generated by tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows. During the years ended April 30, 2015, 2014 and 2013, the Company realized tax benefits from stock options generated in previous and current periods resulting in approximately $384,000, $611,000 and $131,000 of gross excess tax benefits which are included as a component of cash flows from financing activities in the accompanying 2015, 2014 and 2013 consolidated statements of cash flows, respectively. (p) Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. (q) Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. The Company did not have any other comprehensive income items for 2015, 2014, or 2013. (r) Earnings per Common Share The Company has two classes of common stock of which Class B common shares are convertible into Class A common shares at any time, on a one-for-one basis. Under the Company’s Articles of Incorporation, if dividends are declared, holders of Class A common shares shall receive a $.05 dividend per share prior to the Class B common shares receiving any dividend and holders of Class A common shares shall receive a dividend at least equal to Class B common shares dividends on a per share basis. As a result, the Company has computed the earnings per share in compliance with the Earnings Per Share Topic of the FASB Accounting Standards Codification, which requires companies that have multiple classes of equity securities to use the “two-class” method in computing earnings per share. For the Company’s basic earnings per share calculation, the Company uses the “two-class” method. Basic earnings per share are calculated by dividing net earnings attributable to each class of common stock by the weighted average number of shares outstanding. All undistributed earnings are allocated evenly between Class A and B common shares in the earnings per share calculation to the extent that earnings equal or exceed $.05 per share. This allocation is based on management’s judgment after considering the dividend rights of the two-classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B shares to Class A shares. If Class B shares convert to Class A shares during the period, the distributed net earnings for Class B shares is calculated using the weighted average common shares outstanding during the period. Diluted earnings per share is calculated similarly to basic earnings per share, except that the calculation includes the dilutive effect of the assumed exercise of options issuable under the Company’s stock incentive plans. For the Company’s diluted earnings per share calculation for Class A shares, the Company uses the “if-converted” method. This calculation assumes that all Class B common shares are converted into Class A common shares and, as a result, assumes there are no holders of Class B common shares to participate in undistributed earnings. For the Company’s diluted earnings per share calculation for Class B shares, the Company uses the “two-class” method. This calculation does not assume that all Class B common shares are converted into Class A common shares. In addition, this method assumes the dilutive effect of Class A stock options were converted to Class A shares and the undistributed earnings are allocated evenly to both Class A and B shares including Class A shares issued pursuant to those converted stock options. This allocation is based on management’s judgment after considering the dividend rights of the two-classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B shares into Class A shares. The following tables set forth the computation of basic earnings per common share and diluted earnings per common share (in thousands except for per share amounts), See Note 7 for total stock options outstanding and potentially dilutive: Basic earnings per common share: Year Ended Year Ended Year Ended Class A Class B Class A Class B Class A Class B Distributed earnings $ 0.40 $ 0.40 $ 0.30 $ 0.30 $ 0.48 $ 0.48 Undistributed earnings/(loss) (0.11 ) (0.11 ) 0.07 0.07 (0.10 ) (0.10 ) Total $ 0.29 $ 0.29 $ 0.37 $ 0.37 $ 0.38 $ 0.38 Distributed earnings $ 10,301 $ 1,035 $ 7,584 $ 776 $ 11,796 $ 1,242 Undistributed earnings/(loss) (2,914 ) (294 ) 1,786 185 (2,377 ) (250 ) Total $ 7,387 $ 741 $ 9,370 $ 961 $ 9,419 $ 992 Basic weighted average common shares 25,696 2,587 25,049 2,587 24,586 2,587 Diluted EPS for Class A common shares using the If-Converted Method Year Ended April 30, 2015 Undistributed and Class A EPS* Per basic $ 7,387 25,696 $ 0.29 Common stock equivalents — 331 7,387 26,027 0.28 Class B conversion 741 2,587 Diluted EPS for Class A $ 8,128 28,614 $ 0.28 Year Ended April 30, 2014 Undistributed and Class A EPS* Per basic $ 9,370 25,049 $ 0.37 Common stock equivalents — 475 9,370 25,524 0.37 Class B conversion 961 2,587 Diluted EPS for Class A $ 10,331 28,111 $ 0.37 Year Ended April 30, 2013 Undistributed and Class A EPS* Per basic $ 9,419 24,586 $ 0.38 Common stock equivalents — 456 9,419 25,042 0.38 Class B conversion 992 2,587 Diluted EPS for Class A $ 10,411 27,629 $ 0.38 Diluted EPS for Class B common shares using the Two-Class Method Year Ended April 30, 2015 Undistributed and Class B EPS* Per basic $ 741 2,587 $ 0.29 Reallocation of undistributed earnings from Class A shares to Class B shares 4 — Diluted EPS for Class B $ 745 2,587 $ 0.29 Year Ended April 30, 2014 Undistributed and Class B EPS* Per basic $ 961 2,587 $ 0.37 Reallocation of undistributed earnings from Class A shares to Class B shares (3 ) — Diluted EPS for Class B $ 958 2,587 $ 0.37 Year Ended April 30, 2013 Undistributed and Class B EPS* Per basic $ 992 2,587 $ 0.38 Reallocation of undistributed earnings from Class A shares to Class B shares 4 — Diluted EPS for Class B $ 996 2,587 $ 0.38 * Amounts adjusted for rounding (s) Advertising All advertising costs are expensed as incurred. Advertising expenses, which are included within sales and marketing expenses, were $2.1 million, $2.2 million and $2.0 million in fiscal 2015, 2014 and 2013, respectively. (t) Guarantees and Indemnifications The Company accounts for guarantees in accordance with the Guarantee Topic of the FASB Accounting Standards Codification . The Company warrants to its customers that its software products will perform in all material respects in accordance with the standard published specifications in effect at the time of delivery of the licensed products to the customer generally for 90 days after delivery of the licensed products. Additionally, the Company warrants to its customers that services will be performed consistent with generally accepted industry standards or specific service levels through completion of the agreed upon services. If necessary, the Company will provide for the estimated cost of product and service warranties based on specific warranty claims and claim history. However, the Company has not incurred significant recurring expense under product or service warranties. Accordingly, the Company has no liabilities recorded for these agreements as of April 30, 2015 or 2014. (u) Industry Segments The Company operates and manages its business in three reportable segments. See Note 9 of the Consolidated Financial Statements. |
Investments
Investments | 12 Months Ended |
Apr. 30, 2015 | |
Investments | (2) Investments Investments consist of the following (in thousands): April 30, 2015 2014 Trading: Debt securities: Tax-exempt state and municipal bonds $ 21,555 $ 15,167 Corporate bonds 714 1,188 Total debt securities 22,269 16,355 Marketable equity securities 8,471 7,416 $ 30,740 $ 23,771 The total carrying value of all investments on a consolidated basis was approximately $30,740,000 and $23,771,000 at April 30, 2015 and 2014, respectively. At April 30, 2015, there were approximately $13,156,000 in trading investments included in investments-noncurrent in the accompanying consolidated balance sheet. At April 30, 2014, there were approximately $8,975,000 in trading investments included in investments-noncurrent in the accompanying consolidated balance sheet. The contractual maturities of debt securities classified as trading at April 30, 2015 and 2014 were as follows (in thousands): 2015 2014 Due within one year $ 8,581 $ 7,646 Due within two years 11,348 6,228 Due within three years 1,983 1,970 Due after three years 357 511 $ 22,269 $ 16,355 In 2015 and 2014, the Company’s investment portfolio of trading securities experienced net unrealized holding losses of approximately $405,000 and $160,000, respectively, and in 2013, the Company’s investment portfolio of trading securities experienced net unrealized holding gains of approximately $815,000, which have been included in other income, net in the accompanying consolidated statements of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Apr. 30, 2015 | |
Fair Value of Financial Instruments | (3) Fair Value of Financial Instruments The Company measures its investments based on a fair value hierarchy disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. A number of factors affect market price observability including the type of asset or liability and its characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1—Quoted prices in active markets for identical instruments. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following is a general description of the valuation methodologies used for financial assets and liabilities measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. Cash Equivalents Marketable Securities The following table presents our assets that we measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands): April 30, 2015 April 30, 2014 Quoted Prices Significant Significant Total Quoted Prices Significant Significant Total Cash equivalents $ 42,951 $ — $ — $ 42,951 $ 51,561 $ — $ — $ 51,561 Marketable securities 9,139 21,555 — 30,694 8,338 15,167 — 23,505 Total $ 52,090 $ 21,555 $ — $ 73,645 $ 59,899 $ 15,167 $ — $ 75,066 In addition to cash equivalents and marketable securities classified as trading securities, we also have an equity method investment valued at approximately $46,000 that is not recorded at fair value and thus is not recorded in the table above. The carrying amounts of cash, trade accounts receivable and unbilled accounts receivable, accounts payable, accrued compensation and related costs, and other current liabilities approximate fair value because of their short-term maturities. |
Furniture, Equipment and Purcha
Furniture, Equipment and Purchased Software | 12 Months Ended |
Apr. 30, 2015 | |
Furniture, Equipment and Purchased Software | (4) Furniture, Equipment and Purchased Software Furniture, equipment and purchased software consisted of the following at April 30, 2015 and 2014 (in thousands): 2015 2014 Buildings and leasehold improvements $ 20,716 $ 20,011 Computer equipment and purchased software 10,049 9,842 Office furniture and equipment 4,415 4,373 35,180 34,226 Accumulated depreciation and amortization (31,632 ) (30,545 ) $ 3,548 $ 3,681 |
Acquisitions
Acquisitions | 12 Months Ended |
Apr. 30, 2015 | |
Acquisitions | (5) Acquisitions The Company accounts for business combinations using the acquisition method of accounting and accordingly, the identifiable assets acquired and liabilities assumed are recorded based upon management’s estimates of current fair values as of the acquisition date. The estimation process includes analyses based on income and market approaches. Goodwill represents the excess purchase price over the fair value of net assets, including the amount assigned to identifiable intangible assets. The goodwill generated is due in part to the synergies that are not included in the fair value of identifiable intangible assets. Goodwill recorded in an acquisition is assigned to applicable reporting units based on expected revenues. Identifiable intangible assets with finite lives are amortized over their useful lives. Amortization of current technology is recorded in cost of revenues-license and amortization of all other intangible assets is recorded in amortization of acquisition-related intangibles. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are expensed in general and administrative expenses in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. Effective May 30, 2014, the Company entered into an Asset Purchase Agreement (“Purchase Agreement”) with privately-held MID Retail, Inc., an Indiana corporation (“MRI”). Pursuant to the Purchase Agreement, the Company acquired 100% of the total issued and outstanding shares of capital stock of MRI, a provider of retail allocation and merchandise planning solutions. This acquisition will expand and complement the products and services offered by Logility. Under the terms of the Purchase Agreement, the Company acquired the capital stock for an effective purchase price of approximately $8,507,000 in cash plus a $678,000 working capital adjustment. Additional consideration is payable at the end of each 12-month period in the 24-month period following the closing date (such 24-month period being the “Earnout Period”) equal to 15% of the license fee revenues contracted for and recorded as revenue in accordance with GAAP by either MRI or the Company from the sale of MRI Software during such 12-month period, up to a maximum aggregate amount of $1.5 million over the Earnout Period. This additional consideration will be accounted for as post-combination services and, therefore, will be expensed as incurred. The Company incurred acquisition costs of approximately $282, 000 during the year ended April 30, 2015. The operating results of MRI are not material for proforma disclosure and MRI is being integrated as a product line of Logility, Inc. Revenues from MRI included in these consolidated financial statements since the date of acquisition are $1,761,000 in license fees, $725,000 in services and other revenues and $1,160,000 in maintenance revenues. We allocated $4,930,000 of the total purchase price to goodwill, which has been assigned to the Supply Chain Management segment and is deductible for income tax purposes. The following allocation of the total purchase price reflects the fair value of the assets acquired and liabilities assumed as of May 30, 2014 (in thousands): Useful Life Cash $ 1,277 Accounts receivable, net 546 Current assets 35 Property and equipment, net 32 Other assets 505 Goodwill 4,930 Non-compete 290 3 years Customer relationships 1,400 8 years Current technology 1,500 3 years Total Assets Acquired 10,515 Current liabilities (825 ) Long-term liabilities (505 ) Total liabilities assumed (1,330 ) Net assets acquired $ 9,185 Non-compete agreements, customer relationships and current technology are being amortized on a straight-line basis over the remaining estimated economic life of the assets, including the period being reported. The fair value of deferred revenues in a business combination is considered to be an assumed liability (which must arise from a legal performance obligation) and, accordingly, is estimated based on the direct cost of fulfilling the obligation plus a normal profit margin, which approximates fair value. Also, in practice, the normal profit margin is limited to the profit margin on the costs to provide the product or service (that is, the fulfillment effort). On August 14, 2013, the Company completed the acquisition of certain assets of privately-held Taylor Manufacturing Systems, USA, LLC (“TMS”) an Atlanta-based provider in the advance planning systems (“APS”) area. The acquisition of TMS will allow the Company to expand its software product offerings. Under the terms of the purchase agreement, the Company acquired the assets in exchange for a purchase price of $1,841,000. The purchase price consisted of $1,191,000 paid in cash at closing, subject to certain adjustments, and three additional cash payments of $200,000, generally payable on the anniversary date of the transaction in each of the three years following closing. The additional cash payments resulted in the Company recording a short-term liability of $200,000 for the payment due on the first anniversary and a long-term liability of $366,000 for the payments due on the second and third anniversaries. As of January 31, 2015, the Company has a short-term liability of $200,000 for the payment due on the second anniversary and long-term liability of approximately $183,000 for the payment due on the third anniversary. The Company incurred acquisition costs of approximately $68,500 during the three and six months ended October 31, 2013. The operating results of TMS are not material for proforma disclosure. We allocated $1,218,000 of the total purchase price to goodwill, which has been assigned to the Supply Chain Management segment and is deductible for income tax purposes. The following allocation of the total purchase price reflects the fair value of the assets acquired and liabilities assumed as of August 14, 2013 (in thousands): Current Assets $ 130 Goodwill 1,218 Current Technology 472 Total Assets Acquired 1,820 Current Liabilities (213 ) Long Term liabilities (366 ) Net Assets Acquired $ 1,241 Current technology is being amortized on a straight line basis over the remaining estimated economic life of the product (4 years), including the period being reported. The fair value of deferred revenues in a business combination is considered to be an assumed liability (which must arise from a legal performance obligation) and, accordingly, is estimated based on the direct cost of fulfilling the obligation plus a normal profit margin, which approximates fair value. Also, in practice, the normal profit margin is limited to the profit margin on the costs to provide the product or service (that is, the fulfillment effort). |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2015 | |
Income Taxes | 6) Income Taxes Income tax expense consisted of the following: Years ended April 30, 2015 2014 2013 (In thousands) Current: Federal $ 2,506 $ 4,253 $ 4,103 State 501 686 847 3,007 4,939 4,950 Deferred: Federal (697 ) 557 131 State (36 ) 70 33 (733 ) 627 164 $ 2,274 $ 5,566 $ 5,114 The Company’s actual income tax expense differs from the “expected” income tax expense calculated by applying the Federal statutory rate of 35% for fiscal years 2015, 2014 and 2013, to earnings before income taxes and noncontrolling interest as follows: Years ended April 30, 2015 2014 2013 (In thousands) Computed “expected” income tax expense $ 3,641 $ 5,564 $ 5,434 Increase (decrease) in income taxes resulting from: State income taxes, net of Federal income tax effect 269 493 568 Research and development credits (516 ) (258 ) (584 ) Change in valuation allowance for deferred tax assets (5 ) 45 (187 ) Tax contingencies (955 ) (47 ) 27 Other, net, including permanent items (160 ) (231 ) (144 ) $ 2,274 $ 5,566 $ 5,114 Our effective income tax rates were 22%, 35% and 33% in 2015, 2014 and 2013, respectively. Our effective income tax rate takes into account the source of taxable income, by state, and available income tax credits. The provision for income taxes in 2015, 2014 and 2013 excludes approximately $420,000, $361,000 and $160,000, respectively, of tax benefits realized from the recognition of stock option deductions, which have been recorded in additional paid-in capital. The significant components of deferred income tax (benefit) expense attributable to income from continuing operations before income taxes for the years ended April 30, 2015, 2014, and 2013 are as follows: Years ended April 30, 2015 2014 2013 (In thousands) Deferred tax (benefit)/expense $ (728 ) $ 582 $ 351 (Decrease) increase in the valuation allowance for deferred tax assets (5 ) 45 (187 ) $ (733 ) $ 627 $ 164 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at April 30, 2015 and 2014 are presented as follows: 2015 2014 (In thousands) Deferred tax assets: Accruals and expenses not deducted for tax purposes $ 914 $ 1,024 State net operating loss carryforwards 350 389 Intangible assets and fixed asset basis differences 1,803 1,347 Nonqualified stock options 1,452 1,154 Total gross deferred tax assets 4,519 3,914 Less valuation allowance 461 466 Net deferred tax assets 4,058 3,448 Deferred tax liabilities: Capitalized computer software development costs (3,758 ) (4,109 ) Net gains/losses on trading securities (605 ) (566 ) Goodwill (752 ) (598 ) Other (575 ) (529 ) Total gross deferred tax liabilities (5,690 ) (5,802 ) Net deferred tax liabilities $ (1,631 ) $ (2,354 ) At April 30, 2015, the Company has approximately $10.6 million of various state net operating loss carryforwards which are available to offset future state taxable income, if any, through 2034. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon reversal of deferred tax liabilities and expected future profitability, management believes it is more likely than not the Company will realize the benefits of these deductible differences, net of the existing valuation allowances, at April 30, 2015. The Company applies the accounting provisions which require us to prescribe a recognition threshold and measurement attribution for the financial statement recognition and measurement of a tax position taken or expected to be taken within an income tax return. As of April 30, 2015, 2014 and 2013, we have recorded approximately $115,000, $1.2 million, and $1.2 million, respectively, of unrecognized tax benefits, inclusive of interest and penalties, all of which would impact our effective tax rate if recognized. The liability for unrecognized tax benefits is recorded net of any federal tax benefit that would result from payment. During the year ended April 30, 2015, the Company recognized $973,000 of income tax benefits due to the reversal of a FIN 48 Reserve due to the expiration of statutes of limitations. We recognize potential accrued interest and penalties related to unrecognized tax benefits within income tax expense. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. As of April 30, 2015 and 2014, we had recorded a liability for potential penalties and interest of approximately $54,000 and $160,000, respectively, related to uncertain tax positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, excluding interest and penalties (in thousands): 2015 2014 Balance at beginning of the period $ 953 $ 981 Decreases as a result of positions taken during prior periods (896 ) (28 ) Increases as a result of positions taken during the current period 4 — Balance at April 30, $ 61 $ 953 We conduct business globally and, as a result, file consolidated income tax returns in the United States Federal jurisdiction and in many state and foreign jurisdictions. We are no longer subject to state and local, or non-U.S. income tax examinations for years prior to 2000. We are no longer subject to U.S. Federal income tax examination for years prior to 2011. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Apr. 30, 2015 | |
Shareholders' Equity | (7) Shareholders’ Equity Except for the election or removal of Directors and class votes as required by law or the Articles of Incorporation, holders of both classes of common stock vote as a single class on all matters with each Class A common share entitled to cast one-tenth vote per share and each Class B common share entitled to cast one vote per share. Neither class has cumulative voting rights. Holders of Class A common shares, as a class, are entitled to elect 25% of the board of directors (rounded up to the nearest whole number of Directors) if the number of outstanding Class A common shares is at least 10% of the number of outstanding shares of both classes of common stock. No cash or property dividend may be paid to holders of Class B common shares during any fiscal year of the Company unless a dividend of $0.05 per share has been paid in such year on each outstanding Class A common share. This $0.05 per share annual dividend preference is noncumulative. Dividends per Class B common share during any fiscal year may not exceed dividends paid per Class A common share during each year. Each Class B common share is convertible at any time into one Class A common share at the option of the shareholder. Stock Option Plans As of April 30, 2015, the Company has outstanding stock options granted pursuant to four stock option plans. The 2001 Stock Option Plan (the “2001 Option Plan”) became effective on September 1, 2000. This Plan was terminated and replaced by the 2011 Equity Compensation Plan (the “2011 Option Plan”) effective May 17, 2010. Options outstanding under the 2001 Option Plan remain in effect, but no new options may be granted under the plan. Effective July 9, 2009, we adopted the Logility, Inc. 1997 Stock Plan and the Logility, Inc. 2007 Stock Plan as equity plans of American Software, although we will not grant any additional stock options under these plans. Under the 2011 Option Plan, options to purchase Class A common shares are granted in the form of both incentive stock options and non-qualified stock options. The number of options granted under this plan is determined with each grant. By resolution of the Board of Directors, non-employee directors receive grants of non-qualified options to purchase 5,000 shares upon election and 3,000 shares at the end of each fiscal quarter. The price of such grants is equal to the closing market price of the shares on the date of grant. Options are exercisable based on the terms of such options, but no more than 6 years after the date of grant (or five years for incentive stock options granted to any person who owns 10% or more of the combined voting power of all classes of capital stock of the Company at the time of grant). A total of 3,700,000 shares are authorized for issuance pursuant to options granted under this Plan. At the 2015 Annual Meeting, the shareholders will vote on increasing the shares authorized under the 2011 Option Plan from 3,700,000 to 5,000,000. When stock options are exercised, it is the Company’s policy to issue stock from authorized shares rather than from treasury shares. Incentive and nonqualified options exercisable at April 30, 2015, 2014 and 2013 totaled 1,203,369, 1,071,812, and 1,893,887, respectively. Options available for grant at April 30, 2015, for the 2011 Option Plan are 711,843 shares. A summary of changes in outstanding options for the year ended April 30, 2015 is as follows: Number of Weighted Weighted Aggregate Outstanding at May 1, 2014 2,894,072 $ 7.59 Granted 349,000 9.61 Exercised (490,912 ) 5.55 Forfeited/cancelled (31,091 ) 7.70 Outstanding at April 30, 2015 2,721,069 $ 8.21 3.3 $ 4,103,941 Exercisable at April 30, 2015 1,203,369 $ 7.62 2.5 $ 2,526,142 The weighted-average grant date fair value of stock options granted during the years ended April 30, 2015, 2014, and 2013 are $2.04, $2.98, and $2.90 per share, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the years ended April 30, 2015, 2014, and 2013: 2015 2014 2013 Dividend yield 4.0 % 4.0 % 4.3 % Expected volatility 34.5 % 47.6 % 59.4 % Risk-free interest rate 1.7 % 1.5 % 0.7 % Expected term 5.0 years 5.0 years 4.3 years The expected volatility is based on the historical volatility and implied volatility. The Company uses historical data to estimate stock option exercise and forfeiture rates. The expected term represents the period over which the share-based awards are expected to be outstanding. Beginning after December 31, 2007, the expected term was estimated using historical data. The dividend yield is an estimate of the expected dividend yield on the Company’s stock. The risk-free rate is based on U.S. Treasury yields in effect at the time of the grant for the expected term of the stock options. Options issued after May 1, 2007 with graded vesting are valued as a single award. The total value of the award is expensed on a straight-line basis over the vesting period with the amount of compensation cost recognized at any date at least equal to the portion of the grant date value of the award that is vested at that date. During the years ended April 30, 2015, 2014, and 2013, we issued 490,912, 890,341 and 386,356 shares of common stock, respectively, resulting from the exercise of stock options. The total intrinsic value of options exercised during the years ended April 30, 2015, 2014 and 2013 based on market value at the exercise dates was $2,100,295, $3,266,301 and $1,163,699, respectively. The fair value of grants vested during the years ended April 30, 2015, 2014 and 2013 was $1,625,742, $1,442,478 and $1,447,612, respectively. As of April 30, 2015, unrecognized compensation cost related to unvested stock option awards approximated $2.9 million and is expected to be recognized over a weighted average period of 1.53 years. Stock Repurchases On August 19, 2002, our Board of Directors approved a resolution authorizing the repurchase of up to 2.0 million shares of our Class A common stock. These repurchases have been and will be made through open market purchases at prevailing market prices. The timing of any repurchases will depend upon market conditions, the market price of our common stock and management’s assessment of our liquidity and cash flow needs. During the year ended April 30, 2015, we repurchased 123,482 shares of our common stock at a cost of approximately $1.1 million. For this repurchase plan, through April 30, 2015, we have repurchased 1,033,344 shares of common stock at a cost of approximately $6.0 million. Under all repurchase plans as of April 30, 2015, we have repurchased 4,568,297 shares of common stock at a cost of approximately $25.4 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2015 | |
Commitments and Contingencies | (8) Commitments and Contingencies (a) Leases The Company leases office facilities and equipment under various operating leases. Rental expense for these leases approximated $931,000, $841,000, and $854,000 for the years ended April 30, 2015, 2014, and 2013, respectively. The Company leased several floors of its headquarters in Atlanta, GA under various operating leases. Rental income for these leases approximated $687,000, $574,000 and $418,000 for the years ended April 30, 2015, 2014 and 2013, respectively. In addition, the Company owns other properties leased under various operating leases. Rental income for these leases approximated $270,000, $230,000 and $225,000 for the years ended April 30, 2015, 2014, and 2013, respectively. The rental income is included as a component of Other Income, Net in the accompanying consolidated statements of operations. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of April 30, 2015 are as follows (existence of renewal or escalation clauses) (in thousands): Years ended April 30: 2016 $ 881 2017 816 2018 697 2019 679 2020 208 Thereafter 503 $ 3,784 Future minimum lease rentals receivable under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of April 30, 2015 are as follows (already included or prorated at the Company’s occupied building) (in thousands): Years ended April 30: 2016 $ 706 2017 653 2018 646 2019 557 2020 173 Thereafter 766 $ 3,501 (b) 401(k) Profit Sharing Plan Employees are offered the opportunity to participate in the Company’s 401(k) Profit Sharing Plan (the 401(k) Plan), which is intended to be a tax-qualified defined contribution plan under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees are eligible to participate on the first day of the month following the date of hire. Eligible employees may contribute up to 60% of pretax income to the 401(k) Plan. Subject to certain limitations, the Company may make a discretionary profit sharing contribution at an amount determined by the board of directors of the Company. The Company did not make profit sharing contributions for 2015, 2014, or 2013. (c) Contingencies The Company more often than not indemnifies its customers against damages and costs resulting from claims of patent, copyright, or trademark infringement associated with use of the Company’s products. The Company has historically not been required to make any payments under such indemnifications. However, the Company continues to monitor the conditions that are subject to the indemnifications to identify whether it is probable that a loss has occurred, and would recognize any such losses under the indemnifications when those losses are estimable. In addition, the Company warrants to customers that the Company’s products operate substantially in accordance with the software product’s specifications. Historically, no costs have been incurred related to software product warranties and none are expected in the future, and as such no accruals for software product warranty costs have been made. Additionally, the Company is involved in various claims arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the financial position or results of operations of the Company. |
Segment Information
Segment Information | 12 Months Ended |
Apr. 30, 2015 | |
Segment Information | (9) Segment Information The Company provides our software solutions through three major business segments, which are further broken down into a total of four major product and service groups. The three business segments are (1) Supply Chain Management (SCM), (2) Enterprise Resource Planning (ERP), and (3) Information Technology (IT) Consulting. The SCM segment consists of Logility, Inc., a wholly-owned subsidiary, as well as its subsidiary, DMI, which provides collaborative supply chain solutions to streamline and optimize the forecasting, production, distribution and management of products between trading partners. The ERP segment consists of (1) American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce Our chief operating decision maker is the President and Chief Executive Officer. While the CEO is apprised of a variety of financial metrics and information, we manage our business primarily on a segment basis, with the CEO evaluating performance based upon segment operating profit or loss that includes an allocation of common expenses, but excludes certain unallocated expenses. All of our revenues are derived from external customers. We do not have any inter-segment revenue. Our income taxes and dividends are paid at a consolidated level. Consequently, it is not practical to show these items by operating segment. Following is information related to each segment as of and for the years ended April 30, 2015, 2014 and 2013: 2015 2014 2013 Revenues: Enterprise Resource Planning $ 11,363 $ 11,517 $ 12,825 Supply Chain Management 66,066 64,331 62,410 IT Consulting 25,444 24,753 25,232 $ 102,873 $ 100,601 $ 100,467 Operating income/(loss) before intersegment eliminations: Enterprise Resource Planning $ (5,285 ) $ (5,132 ) $ (4,741 ) Supply Chain Management 12,399 17,468 16,881 IT Consulting 2,228 2,189 1,644 $ 9,342 $ 14,525 $ 13,784 Intersegment eliminations: Enterprise Resource Planning $ (2,127 ) $ (1,882 ) $ (1,916 ) Supply Chain Management 2,020 1,778 1,804 IT Consulting 107 104 112 $ — $ — $ — Operating income/(loss) after intersegment eliminations: Enterprise Resource Planning $ (7,412 ) $ (7,014 ) $ (6,657 ) Supply Chain Management 14,419 19,246 18,685 IT Consulting 2,335 2,293 1,756 $ 9,342 $ 14,525 $ 13,784 Capital expenditures: Enterprise Resource Planning $ 791 $ 125 $ 513 Supply Chain Management 229 118 196 IT Consulting 8 12 27 $ 1,028 $ 255 $ 736 Capitalized software: Enterprise Resource Planning $ — $ — $ — Supply Chain Management 2,747 2,949 3,418 IT Consulting — — — $ 2,747 $ 2,949 $ 3,418 Depreciation and amortization: Enterprise Resource Planning $ 925 $ 887 $ 916 Supply Chain Management 4,896 1,706 3,228 IT Consulting 12 12 9 $ 5,833 $ 2,605 $ 4,153 Interest income: Enterprise Resource Planning $ 421 $ 343 $ 452 Supply Chain Management 808 592 688 IT Consulting — — — $ 1,229 $ 935 $ 1,140 Earnings/(loss) before income taxes: Enterprise Resource Planning $ (3,815 ) $ (3,830 ) $ (2,976 ) Supply Chain Management 11,989 17,541 16,897 IT Consulting 2,228 2,186 1,604 $ 10,402 $ 15,897 $ 15,525 April 30, April 30, April 30, Total Consolidated Assets: Enterprise Resource Planning $ 32,435 $ 39,283 $ 36,985 Supply Chain Management 97,101 86,854 70,982 IT Consulting 4,730 5,083 5,103 $ 134,266 $ 131,220 $ 113,070 International Revenue and Significant Customer International revenues approximated $16.3 million or 16%, $17.1 million or 17%, and $14.0 million or 14%, of consolidated revenues for the years ended April 30, 2015, 2014, and 2013, respectively, and were derived primarily from customers in Canada and Europe. International revenue is based on the delivery of software and performance of services. No one customer accounted for more than 10% of total revenues for the years ended April 30, 2015 and April 30, 2014. One customer accounted for approximately 11% of consolidated revenues for the year ended April 30, 2013, principally from our IT consulting segment. Accounts receivable from this customer were approximately $1.6 million at April 30, 2013. |
Financial Statements and Supple
Financial Statements and Supplementary Data (Unaudited) | 12 Months Ended |
Apr. 30, 2015 | |
Financial Statements and Supplementary Data (Unaudited) | (10) Financial Statements and Supplementary Data (Unaudited) The following schedule presents results for each quarter in the years ended April 30, 2015 and 2014 (in thousands, except per share amounts): Total Gross Operating Net Diluted Quarter ended: July 31, 2014 $ 24,857 $ 13,345 $ 2,163 $ 1,534 $ 0.05 October 31, 2014 24,577 12,096 1,379 1,175 0.04 January 31, 2015 25,839 12,849 2,375 2,841 0.10 April 30, 2015 27,600 14,124 3,425 2,578 0.09 Year ended April 30, 2015 $ 102,873 $ 52,414 $ 9,342 $ 8,128 $ 0.28 Quarter ended: July 31, 2013 $ 23,318 $ 12,155 $ 2,383 $ 1,593 $ 0.06 October 31, 2013 26,931 15,526 5,392 3,693 0.13 January 31, 2014 24,427 13,963 3,539 2,477 0.09 April 30, 2014 25,925 15,242 3,211 2,568 0.09 Year ended April 30, 2014 $ 100,601 $ 56,886 $ 14,525 $ 10,331 $ 0.37 * Quarterly amounts may not sum to full year total due to rounding. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2015 | |
Subsequent Events | (11) Subsequent Events On May 13, 2015, our Board of Directors declared a quarterly cash dividend of $0.10 per share of our Class A and Class B common stock. The cash dividend is payable on August 21, 2015 to Class A and Class B shareholders of record at the close of business on August 7, 2015. |
CONSOLIDATED VALUATION ACCOUNTS
CONSOLIDATED VALUATION ACCOUNTS | 12 Months Ended |
Apr. 30, 2015 | |
CONSOLIDATED VALUATION ACCOUNTS | SHEDULE II AMERICAN SOFTWARE, INC. CONSOLIDATED VALUATION ACCOUNTS Years ended April 30, 2015, 2014, 2013 (In thousands) Allowance for Doubtful Accounts Year ended: Balance at Amounts Other Deductions Balance at April 30, 2015 $ 222 178 1 186 215 April 30, 2014 $ 337 (56 ) 86 145 222 April 30, 2013 $ 171 216 0 50 337 (1) Recovery of previously written-off amounts. (2) Write-off of uncollectible accounts. Deferred Income Tax Valuation Allowance The deferred tax valuation allowance roll-forward is included in Item 8 of this Report in the Notes to Consolidated Financial Statements—Note 6. See accompanying report of independent registered public accounting firm. |
Presentation and Summary of S20
Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
Basis of Presentation | (a) Basis of Presentation Founded in 1970 and headquartered in Atlanta, Georgia, American Software, Inc. and its subsidiaries (collectively, the “Company”) are engaged in the development, marketing, and support activities of a broad range of computer business application software products. The Company’s operations are principally in the computer software industry, and its products and services are used by customers within the United States and certain international markets. We provide our software solutions through three major business segments, which are further broken down into a total of four major product and service groups. The three business segments are (1) Supply Chain Management (SCM), (2) Enterprise Resource Planning (ERP), and (3) Information Technology (IT) Consulting. • The SCM segment consists of our subsidiary, Logility, Inc. (see Note 9), which provides collaborative supply chain solutions to streamline and optimize the production, distribution and management of products between trading partners and Demand Management, Inc. (“DMI”), a wholly-owned subsidiary of Logility. • The ERP segment consists of (1) American Software USA, Inc., which provides purchasing and materials management, customer order processing, financial, e-commerce, Flow Manufacturing and traditional manufacturing solutions, and (2) New Generation Computing (NGC), which provides industry specific business software to both retailers and manufacturers primarily in the apparel, sewn products and furniture industries. • The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm. |
Principles of Consolidation | (b) Principles of Consolidation The consolidated financial statements include the accounts of American Software, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition and Deferred Revenue | (c) Revenue Recognition and Deferred Revenue The Company recognizes revenue predominately in accordance with the Software Revenue Recognition Topic of the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification. License. Maintenance. Services. , Subscription and other recurring revenues include fees for access rights to software solutions that are offered under a subscription-based delivery model where the users have the right to take possession of the software. Under this model, the software applications are hosted by the Company or by a third party and the customer accesses and uses the software on an as-needed basis over the Internet or via a dedicated line. The underlying arrangements typically (i) include a single fee for the service that is billed monthly, quarterly or annually, (ii) cover a period from 36 to 60 months and (iii) provides the customer with an option to take delivery of the software at any time during or after the subscription term. In addition, subscription and other recurring revenues include subscription-based software license revenues where the customer has taken physical possession of the software for a defined period of time. Subscription revenues are recognized ratably over the subscription term because the Company is unable to establish VSOE and separate the various elements, beginning on the commencement date of each contract. As of April 30, 2015, revenue recorded under this accounting treatment has not been significant. Indirect Channel Revenue. Deferred Revenue. Sales Taxes. . Unbilled Accounts Receivable. |
Cost of Revenues | (d) Cost of Revenues Cost of revenues for licenses includes amortization of capitalized computer software development costs, salaries and benefits and value-added reseller (VAR) commissions. Costs for maintenance and services revenues include the cost of personnel to conduct implementations, customer support and consulting, and other personnel-related expenses as well as agent commission expenses related to maintenance revenues generated by the indirect channel. Commission costs for maintenance are deferred and amortized over the related maintenance term. |
Cash Equivalents | (e) Cash Equivalents Cash equivalents of $43.0 million and $51.6 million at April 30, 2015 and 2014, respectively, consist of overnight repurchase agreements and money market deposit accounts. The Company considers all such investments with original maturities of three months or less to be cash equivalents for purposes of the consolidated statements of cash flows. |
Concentrations of Credit Risk | (f) Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, short- and long-term investments and accounts receivable. The Company maintains cash and cash equivalents and short- and long-term investments with various financial institutions. The Company’s sales are primarily to companies located in North America and Europe. The Company performs periodic credit evaluations of its customers’ financial condition and does not require collateral. Accounts receivable are due principally from companies under stated contract terms. |
Returns and Allowances | (g) Returns and Allowances The Company has not experienced significant returns or warranty claims to date and, as a result, the allowance for the cost of returns and product warranty claims at April 30, 2015 or 2014 is not significant. The Company records an allowance for doubtful accounts based on the historical experience of write-offs and a detailed assessment of accounts receivable. The total amounts of expense/(recovery) to operations were approximately $178,000, $(56,000), and $216,000 for 2015, 2014, and 2013, respectively, which are included in general and administrative expenses in the accompanying consolidated statements of operations. In estimating the allowance for doubtful accounts, management considers the age of the accounts receivable, the Company’s historical write-offs, and the credit worthiness of the customer, among other factors. Should any of these factors change, the estimates made by management will also change accordingly, which could affect the level of the Company’s future provision for doubtful accounts. Uncollectible accounts are written off when it is determined that the specific balance is not collectible. |
Investments | (h) Investments Investments consist of commercial paper, corporate bonds, government securities, certificates of deposits and marketable equity securities. The Company accounts for its investments in accordance with the Investments—Debt and Equity Securities Topic of the FASB Accounting Standards Codification. The Company has classified its investment portfolio as “trading.” “Trading” securities are bought and held principally for the purpose of selling them in the near term and are recorded at fair value. Unrealized gains and losses on trading securities are included in the determination of net earnings. For the purposes of computing realized gains and losses, cost is identified on a specific identification basis. Investments with maturities less than one year as of the balance sheet date are classified as short-term investments and those that mature greater than one year are classified as long-term investments. |
Furniture, Equipment, and Purchased Computer Software | (i) Furniture, Equipment, and Purchased Computer Software Furniture, equipment and purchased computer software are recorded at cost, less accumulated depreciation and amortization. Depreciation of buildings, computer equipment, purchased computer software, office furniture and equipment is calculated using the straight-line method based upon the estimated useful lives of the assets (three years for computer equipment and software, seven years for office furniture and equipment and thirty years for buildings). Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the assets or the related lease term, whichever is shorter. Depreciation and amortization expense on buildings, furniture, equipment and purchased computer software was $1,193,000, $1,056,000, and $1,076,000 in 2015, 2014 and 2013, respectively. |
Capitalized Computer Software Development Costs | (j) Capitalized Computer Software Development Costs The Company capitalizes certain computer software development costs in accordance with the FASB Accounting Standards Codification Costs of Software to be Sold, Leased or Marketed Topic. Costs incurred internally to create a computer software product or to develop an enhancement to an existing product are charged to expense when incurred as research and development expense until technological feasibility for the respective product is established. Thereafter, all software development costs are capitalized and reported at the lower of unamortized cost or net realizable value. Capitalization ceases when the product or enhancement is available for general release to customers. The Company makes ongoing evaluations of the recoverability of its capitalized software projects by comparing the net amount capitalized for each product to the estimated net realizable value of the product. If such evaluations indicate that the unamortized software development costs exceed the net realizable value, the Company writes off the amount by which the unamortized software development costs exceed net realizable value. Capitalized computer software development costs are being amortized ratably on a straight-line basis over three years. Amortization of capitalized computer software development costs is included in the cost of license revenues in the consolidated statements of operations. Total Expenditures and Amortization. Years ended April 30, 2015 2014 2013 (in thousands) Total capitalized computer software development costs $ 2,747 $ 2,949 $ 3,418 Total research and development expense 11,088 9,074 8,882 Total research and development expense and capitalized computer software-development costs $ 13,835 $ 12,023 $ 12,300 Total amortization of capitalized computer software development costs $ 3,663 $ 925 $ 2,501 Capitalized computer software development costs consist of the following at April 30, 2015 and 2014 (in thousands): 2015 2014 Capitalized computer software development costs $ 22,067 $ 19,321 Accumulated amortization (12,252 ) (8,589 ) $ 9,815 $ 10,732 Of the Company’s capitalized software projects that are currently completed and being amortized, the Company expects amortization expense for the next three years to be as follows (in thousands): 2016 $ 3,893 2017 3,593 2018 229 $ 7,715 |
Acquisition-Related Intangible Assets (exclusive of Logility's treasury stock repurchases) | (k) Acquisition-Related Intangible Assets (exclusive of Logility’s treasury stock repurchases) Acquisition-related intangible assets are stated at historical cost and include acquired software and certain other intangible assets with definite lives. The intangible assets are being amortized over a period ranging from two to six years. For 2015, total amortization expense related to acquisition-related intangible assets was approximately $970,000, with $394,000 included in operating expense and $576,000 included in cost of license fees in the accompanying consolidated statements of operations. For 2014, total amortization expense related to acquisition-related intangible assets was approximately $561,000, with $472,000 included in operating expense and $88,000 included in cost of license fees in the accompanying consolidated statements of operations. Total amortization expense related to acquisition-related intangible assets was approximately $501,000 for 2013 and is included in operating expense in the accompanying consolidated statements of operations. Acquisition-Related Intangible Assets consist of the following at April 30, 2015 and 2014 (in thousands): 2015 2014 Current technology $ 3,342 $ 1,842 Customer relationships 2,190 790 Non-Compete 290 — Trademarks 76 76 5,898 2,708 Accumulated amortization (3,150 ) (2,180 ) $ 2,748 $ 528 The Company expects amortization expense for the next five years to be as follows based on intangible assets as of April 30, 2015 (in thousands): 2016 $ 890 2017 890 2018 254 2019 175 2020 175 Thereafter 364 $ 2,748 |
Goodwill and Other Intangibles | (l) Goodwill and Other Intangibles Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the Intangibles-Goodwill and Other Topic of the FASB Accounting Standards Codification. The Company evaluates the carrying value of goodwill annually and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. When evaluating whether the goodwill is impaired, the Company compares the fair value of the reporting unit to which the goodwill is assigned to its carrying amount, including goodwill. The Company identifies the reporting unit on a basis that is similar to its method for identifying operating segments as defined by the Segment Reporting Topic of the FASB Accounting Standards Codification. If the carrying amount of a reporting unit exceeds its fair value, then the amount of the impairment loss must be measured. This evaluation is applied annually on each impairment testing date (April 30) unless there is a triggering event present during an interim period. The Company used the Income and Market approaches to test for goodwill impairment as of the Valuation Date. The methodology utilized to implement the Income approach was the discounted cash flow (DCF) methodology. The methodologies utilized to implement the Market approach were the comparable company methodology (CCM) and the comparable transaction methodology (CTM). The valuation approaches we utilize in determining the fair value for each reporting unit were weighted 50%, 15%, and 35%, for the DCF, CTM, and CCM, respectively. In order to determine the proper weight given to each approach, the Company considers the methodologies utilized to implement each approach and the overall and industry-specific economic conditions and assumptions, which could affect the quality of the underlying data supporting each analysis. The Company considers the following valuation factors in connection with performing annual impairment testing: • The nature of the business or entity, the risks to which it is subject, and its historical patterns of growth; • The general economic outlook, the position of the industry in the existing economy, and the position of the business or entity within its industry; • The book value and general financial condition of the business or entity; • The earnings history and earnings capacity of the business or entity; • The dividend-paying capacity of the business or entity; • The market prices of stocks of businesses engaged in related activities, where such stocks are traded on an exchange or over-the-counter; • Any recent sales of the common stock of the business and the size of the block of stock to be valued; • The existence of undervalued tangible and intangible assets; and • Other special factors and circumstances of the business or entity that can be judged as important to the overall value. As noted above, the DCF methodology was given the most weight. The material assumptions utilized within this methodology were the long-term growth rate, weighted average cost of capital, financial projections, projected debt free cash flow and tax rate. The assumptions used by the Company have not changed materially from the prior year. In the event of impairment, the loss would be calculated by comparing the implied fair value of reporting unit goodwill to its carrying amount. In calculating the implied fair value of goodwill, the fair value of the reporting unit is allocated to all of the other assets and liabilities of that unit based on their fair values. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. The Company performed its periodic review of this goodwill for impairment as of April 30, 2015 and did not identify any goodwill impairment as a result of the review. The Company applied the simplified goodwill impairment test for the fiscal years ended April 30, 2014 and 2013, that permits companies to perform a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all or selected reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is not more likely than not that the unit’s fair value is less than its carrying amount. To the extent the Company concludes it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the respective carrying value. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. The Company did not identify any macroeconomic or industry conditions as of April 30, 2014 and 2013, that would indicate the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate it is more likely than not that the fair value of any reporting units have fallen below their carrying value, the Company would test such reporting unit for impairment. Intangible assets with estimable useful lives are required to be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with the Property, Plant, and Equipment Topic of the FASB Accounting Standards Codification. Goodwill consisted of the following by segment (in thousands): Enterprise Resource Supply Chain IT Total Balance at April 30, 2013 $ 1,812 $ 10,789 $ — $ 12,601 Goodwill related to the Taylor Manufacturing Systems, USA, LLC Acquisition — 1,218 — 1,218 Balance at April 30, 2014 1,812 12,007 $ — 13,819 Goodwill related to the MID Retail, Inc. Acquisition — 4,930 — 4,930 Balance at April 30, 2015 $ 1,812 $ 16,937 $ — $ 18,749 * Goodwill related to New Generation Computing, Inc. ** Goodwill related to Logility, Inc., Demand Management, Inc. and their acquisitions Intangible Assets (including Acquisition-Related Intangible Assets) consisted of the following by segment (in thousands): Enterprise Resource Supply Chain IT Total Balance at April 30, 2013 $ — $ 687 $ — $ 687 Intangibles related to the Taylor Manufacturing Systems, USA, LLC Acquisition — 472 — 472 Amortization expense — (625 ) — (625 ) Balance at April 30, 2014 — 534 — 534 Intangibles related to the MID Retail, Inc. Acquisition — 3,190 — 3,190 Amortization expense — (976 ) — (976 ) Balance at April 30, 2015 $ — $ 2,748 $ — $ 2,748 Goodwill and intangible assets include the effects of applying purchase accounting resulting from Logility’s stock repurchases in prior years. Total amortization expense related to Logility Stock Buy-back Step Acquisition and purchased software was approximately $6,000, $64,000 and $75,000 for 2015, 2014 and 2013, respectively. For purposes of the disclosure above, amounts related to the buyback of Logility stock are presented as a component of the SCM segment. Intangible assets related to Logility Stock Buy-back Step Acquisition and purchased software consist of the following (in thousands): 2015 2014 Distribution Channel $ 75 $ 75 Customer Relationships 477 477 Trademarks 155 155 707 707 Accumulated amortization (707 ) (701 ) $ — $ 6 |
Income Taxes | (m) Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Use of Estimates | (n) Use of Estimates The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including, but not limited to those related to collectability, bad debts, capitalized software costs, goodwill, intangible asset impairment, income taxes, allocation of fair values in acquisitions and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results could differ materially from these estimates under different assumptions or conditions. |
Stock Compensation Plans | (o) Stock Compensation Plans The Company has four stock-based employee compensation plans under which options to purchase common stock of the Company were outstanding as of April 30, 2015. Those plans are described more fully in Note 7. In addition to two American Software plans, effective July 9, 2009, the Company adopted the Logility, Inc. 1997 Stock Plan and Logility, Inc. 2007 Stock Plan as equity plans of the Company in conjunction with the Company’s acquisition of the shares of Logility common stock it did not previously own. The Company recorded stock option compensation cost of approximately $1,530,000, $1,509,000 and $1,476,000 and related income tax benefits of approximately $542,000, $496,000 and $436,000 for the years ended April 30, 2015, 2014 and 2013, respectively. Stock-based compensation expense on current year grants is recorded on a straight-line basis over the vesting period for the entire award directly to additional paid-in capital. Cash flows resulting from the tax benefits generated by tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows. During the years ended April 30, 2015, 2014 and 2013, the Company realized tax benefits from stock options generated in previous and current periods resulting in approximately $384,000, $611,000 and $131,000 of gross excess tax benefits which are included as a component of cash flows from financing activities in the accompanying 2015, 2014 and 2013 consolidated statements of cash flows, respectively. |
Impairment of Long-Lived Assets | (p) Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. |
Comprehensive Income | (q) Comprehensive Income The Comprehensive Income Topic of the FASB Accounting Standards Codification establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. The Company did not have any other comprehensive income items for 2015, 2014, or 2013. |
Earnings per Common Share | (r) Earnings per Common Share The Company has two classes of common stock of which Class B common shares are convertible into Class A common shares at any time, on a one-for-one basis. Under the Company’s Articles of Incorporation, if dividends are declared, holders of Class A common shares shall receive a $.05 dividend per share prior to the Class B common shares receiving any dividend and holders of Class A common shares shall receive a dividend at least equal to Class B common shares dividends on a per share basis. As a result, the Company has computed the earnings per share in compliance with the Earnings Per Share Topic of the FASB Accounting Standards Codification, which requires companies that have multiple classes of equity securities to use the “two-class” method in computing earnings per share. For the Company’s basic earnings per share calculation, the Company uses the “two-class” method. Basic earnings per share are calculated by dividing net earnings attributable to each class of common stock by the weighted average number of shares outstanding. All undistributed earnings are allocated evenly between Class A and B common shares in the earnings per share calculation to the extent that earnings equal or exceed $.05 per share. This allocation is based on management’s judgment after considering the dividend rights of the two-classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B shares to Class A shares. If Class B shares convert to Class A shares during the period, the distributed net earnings for Class B shares is calculated using the weighted average common shares outstanding during the period. Diluted earnings per share is calculated similarly to basic earnings per share, except that the calculation includes the dilutive effect of the assumed exercise of options issuable under the Company’s stock incentive plans. For the Company’s diluted earnings per share calculation for Class A shares, the Company uses the “if-converted” method. This calculation assumes that all Class B common shares are converted into Class A common shares and, as a result, assumes there are no holders of Class B common shares to participate in undistributed earnings. For the Company’s diluted earnings per share calculation for Class B shares, the Company uses the “two-class” method. This calculation does not assume that all Class B common shares are converted into Class A common shares. In addition, this method assumes the dilutive effect of Class A stock options were converted to Class A shares and the undistributed earnings are allocated evenly to both Class A and B shares including Class A shares issued pursuant to those converted stock options. This allocation is based on management’s judgment after considering the dividend rights of the two-classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B shares into Class A shares. The following tables set forth the computation of basic earnings per common share and diluted earnings per common share (in thousands except for per share amounts), See Note 7 for total stock options outstanding and potentially dilutive: Basic earnings per common share: Year Ended Year Ended Year Ended Class A Class B Class A Class B Class A Class B Distributed earnings $ 0.40 $ 0.40 $ 0.30 $ 0.30 $ 0.48 $ 0.48 Undistributed earnings/(loss) (0.11 ) (0.11 ) 0.07 0.07 (0.10 ) (0.10 ) Total $ 0.29 $ 0.29 $ 0.37 $ 0.37 $ 0.38 $ 0.38 Distributed earnings $ 10,301 $ 1,035 $ 7,584 $ 776 $ 11,796 $ 1,242 Undistributed earnings/(loss) (2,914 ) (294 ) 1,786 185 (2,377 ) (250 ) Total $ 7,387 $ 741 $ 9,370 $ 961 $ 9,419 $ 992 Basic weighted average common shares 25,696 2,587 25,049 2,587 24,586 2,587 Diluted EPS for Class A common shares using the If-Converted Method Year Ended April 30, 2015 Undistributed and Class A EPS* Per basic $ 7,387 25,696 $ 0.29 Common stock equivalents — 331 7,387 26,027 0.28 Class B conversion 741 2,587 Diluted EPS for Class A $ 8,128 28,614 $ 0.28 Year Ended April 30, 2014 Undistributed and Class A EPS* Per basic $ 9,370 25,049 $ 0.37 Common stock equivalents — 475 9,370 25,524 0.37 Class B conversion 961 2,587 Diluted EPS for Class A $ 10,331 28,111 $ 0.37 Year Ended April 30, 2013 Undistributed and Class A EPS* Per basic $ 9,419 24,586 $ 0.38 Common stock equivalents — 456 9,419 25,042 0.38 Class B conversion 992 2,587 Diluted EPS for Class A $ 10,411 27,629 $ 0.38 Diluted EPS for Class B common shares using the Two-Class Method Year Ended April 30, 2015 Undistributed and Class B EPS* Per basic $ 741 2,587 $ 0.29 Reallocation of undistributed earnings from Class A shares to Class B shares 4 — Diluted EPS for Class B $ 745 2,587 $ 0.29 Year Ended April 30, 2014 Undistributed and Class B EPS* Per basic $ 961 2,587 $ 0.37 Reallocation of undistributed earnings from Class A shares to Class B shares (3 ) — Diluted EPS for Class B $ 958 2,587 $ 0.37 Year Ended April 30, 2013 Undistributed and Class B EPS* Per basic $ 992 2,587 $ 0.38 Reallocation of undistributed earnings from Class A shares to Class B shares 4 — Diluted EPS for Class B $ 996 2,587 $ 0.38 * Amounts adjusted for rounding |
Advertising | (s) Advertising All advertising costs are expensed as incurred. Advertising expenses, which are included within sales and marketing expenses, were $2.1 million, $2.2 million and $2.0 million in fiscal 2015, 2014 and 2013, respectively. |
Guarantees and Indemnifications | (t) Guarantees and Indemnifications The Company accounts for guarantees in accordance with the Guarantee Topic of the FASB Accounting Standards Codification . The Company warrants to its customers that its software products will perform in all material respects in accordance with the standard published specifications in effect at the time of delivery of the licensed products to the customer generally for 90 days after delivery of the licensed products. Additionally, the Company warrants to its customers that services will be performed consistent with generally accepted industry standards or specific service levels through completion of the agreed upon services. If necessary, the Company will provide for the estimated cost of product and service warranties based on specific warranty claims and claim history. However, the Company has not incurred significant recurring expense under product or service warranties. Accordingly, the Company has no liabilities recorded for these agreements as of April 30, 2015 or 2014. |
Industry Segments | (u) Industry Segments The Company operates and manages its business in three reportable segments. See Note 9 of the Consolidated Financial Statements. |
Presentation and Summary of S21
Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Total Expenditures and Amortization of Capitalized Computer Software | Total Expenditures and Amortization. Years ended April 30, 2015 2014 2013 (in thousands) Total capitalized computer software development costs $ 2,747 $ 2,949 $ 3,418 Total research and development expense 11,088 9,074 8,882 Total research and development expense and capitalized computer software-development costs $ 13,835 $ 12,023 $ 12,300 Total amortization of capitalized computer software development costs $ 3,663 $ 925 $ 2,501 |
Capitalized Computer Software Development Costs | Capitalized computer software development costs consist of the following at April 30, 2015 and 2014 (in thousands): 2015 2014 Capitalized computer software development costs $ 22,067 $ 19,321 Accumulated amortization (12,252 ) (8,589 ) $ 9,815 $ 10,732 |
Acquisition-Related Intangible Assets | Acquisition-Related Intangible Assets consist of the following at April 30, 2015 and 2014 (in thousands): 2015 2014 Current technology $ 3,342 $ 1,842 Customer relationships 2,190 790 Non-Compete 290 — Trademarks 76 76 5,898 2,708 Accumulated amortization (3,150 ) (2,180 ) $ 2,748 $ 528 |
Goodwill | Goodwill consisted of the following by segment (in thousands): Enterprise Resource Supply Chain IT Total Balance at April 30, 2013 $ 1,812 $ 10,789 $ — $ 12,601 Goodwill related to the Taylor Manufacturing Systems, USA, LLC Acquisition — 1,218 — 1,218 Balance at April 30, 2014 1,812 12,007 $ — 13,819 Goodwill related to the MID Retail, Inc. Acquisition — 4,930 — 4,930 Balance at April 30, 2015 $ 1,812 $ 16,937 $ — $ 18,749 * Goodwill related to New Generation Computing, Inc. ** Goodwill related to Logility, Inc., Demand Management, Inc. and their acquisitions |
Intangible Assets (Including Acquisition-Related Intangible Assets) | Intangible Assets (including Acquisition-Related Intangible Assets) consisted of the following by segment (in thousands): Enterprise Resource Supply Chain IT Total Balance at April 30, 2013 $ — $ 687 $ — $ 687 Intangibles related to the Taylor Manufacturing Systems, USA, LLC Acquisition — 472 — 472 Amortization expense — (625 ) — (625 ) Balance at April 30, 2014 — 534 — 534 Intangibles related to the MID Retail, Inc. Acquisition — 3,190 — 3,190 Amortization expense — (976 ) — (976 ) Balance at April 30, 2015 $ — $ 2,748 $ — $ 2,748 |
Basic Earnings Per Common Share | Basic earnings per common share: Year Ended Year Ended Year Ended Class A Class B Class A Class B Class A Class B Distributed earnings $ 0.40 $ 0.40 $ 0.30 $ 0.30 $ 0.48 $ 0.48 Undistributed earnings/(loss) (0.11 ) (0.11 ) 0.07 0.07 (0.10 ) (0.10 ) Total $ 0.29 $ 0.29 $ 0.37 $ 0.37 $ 0.38 $ 0.38 Distributed earnings $ 10,301 $ 1,035 $ 7,584 $ 776 $ 11,796 $ 1,242 Undistributed earnings/(loss) (2,914 ) (294 ) 1,786 185 (2,377 ) (250 ) Total $ 7,387 $ 741 $ 9,370 $ 961 $ 9,419 $ 992 Basic weighted average common shares 25,696 2,587 25,049 2,587 24,586 2,587 |
Diluted Earnings Per Share for Class A Common Shares Using If-Converted Method | Diluted EPS for Class A common shares using the If-Converted Method Year Ended April 30, 2015 Undistributed and Class A EPS* Per basic $ 7,387 25,696 $ 0.29 Common stock equivalents — 331 7,387 26,027 0.28 Class B conversion 741 2,587 Diluted EPS for Class A $ 8,128 28,614 $ 0.28 Year Ended April 30, 2014 Undistributed and Class A EPS* Per basic $ 9,370 25,049 $ 0.37 Common stock equivalents — 475 9,370 25,524 0.37 Class B conversion 961 2,587 Diluted EPS for Class A $ 10,331 28,111 $ 0.37 Year Ended April 30, 2013 Undistributed and Class A EPS* Per basic $ 9,419 24,586 $ 0.38 Common stock equivalents — 456 9,419 25,042 0.38 Class B conversion 992 2,587 Diluted EPS for Class A $ 10,411 27,629 $ 0.38 |
Diluted Earnings Per Share for Class B Common Shares Using Two-Class Method | Diluted EPS for Class B common shares using the Two-Class Method Year Ended April 30, 2015 Undistributed and Class B EPS* Per basic $ 741 2,587 $ 0.29 Reallocation of undistributed earnings from Class A shares to Class B shares 4 — Diluted EPS for Class B $ 745 2,587 $ 0.29 Year Ended April 30, 2014 Undistributed and Class B EPS* Per basic $ 961 2,587 $ 0.37 Reallocation of undistributed earnings from Class A shares to Class B shares (3 ) — Diluted EPS for Class B $ 958 2,587 $ 0.37 Year Ended April 30, 2013 Undistributed and Class B EPS* Per basic $ 992 2,587 $ 0.38 Reallocation of undistributed earnings from Class A shares to Class B shares 4 — Diluted EPS for Class B $ 996 2,587 $ 0.38 * Amounts adjusted for rounding |
Capitalized Software | |
Expected Amortization Expense | Of the Company’s capitalized software projects that are currently completed and being amortized, the Company expects amortization expense for the next three years to be as follows (in thousands): 2016 $ 3,893 2017 3,593 2018 229 $ 7,715 |
Acquired Finite Lived Intangible Assets | |
Expected Amortization Expense | The Company expects amortization expense for the next five years to be as follows based on intangible assets as of April 30, 2015 (in thousands): 2016 $ 890 2017 890 2018 254 2019 175 2020 175 Thereafter 364 $ 2,748 |
Logility Stock | |
Acquisition-Related Intangible Assets | Intangible assets related to Logility Stock Buy-back Step Acquisition and purchased software consist of the following (in thousands): 2015 2014 Distribution Channel $ 75 $ 75 Customer Relationships 477 477 Trademarks 155 155 707 707 Accumulated amortization (707 ) (701 ) $ — $ 6 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Components of Investments | Investments consist of the following (in thousands): April 30, 2015 2014 Trading: Debt securities: Tax-exempt state and municipal bonds $ 21,555 $ 15,167 Corporate bonds 714 1,188 Total debt securities 22,269 16,355 Marketable equity securities 8,471 7,416 $ 30,740 $ 23,771 |
Contractual Maturities of Debt Securities Classified as Trading | The contractual maturities of debt securities classified as trading at April 30, 2015 and 2014 were as follows (in thousands): 2015 2014 Due within one year $ 8,581 $ 7,646 Due within two years 11,348 6,228 Due within three years 1,983 1,970 Due after three years 357 511 $ 22,269 $ 16,355 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our assets that we measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands): April 30, 2015 April 30, 2014 Quoted Prices Significant Significant Total Quoted Prices Significant Significant Total Cash equivalents $ 42,951 $ — $ — $ 42,951 $ 51,561 $ — $ — $ 51,561 Marketable securities 9,139 21,555 — 30,694 8,338 15,167 — 23,505 Total $ 52,090 $ 21,555 $ — $ 73,645 $ 59,899 $ 15,167 $ — $ 75,066 |
Furniture, Equipment and Purc24
Furniture, Equipment and Purchased Software (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Furniture, Equipment and Purchased Software | Furniture, equipment and purchased software consisted of the following at April 30, 2015 and 2014 (in thousands): 2015 2014 Buildings and leasehold improvements $ 20,716 $ 20,011 Computer equipment and purchased software 10,049 9,842 Office furniture and equipment 4,415 4,373 35,180 34,226 Accumulated depreciation and amortization (31,632 ) (30,545 ) $ 3,548 $ 3,681 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Taylor Manufacturing Systems, USA, LLC | |
Allocation of Total Purchase Price | The following allocation of the total purchase price reflects the fair value of the assets acquired and liabilities assumed as of August 14, 2013 (in thousands): Current Assets $ 130 Goodwill 1,218 Current Technology 472 Total Assets Acquired 1,820 Current Liabilities (213 ) Long Term liabilities (366 ) Net Assets Acquired $ 1,241 |
MID Retail, Inc. | |
Allocation of Total Purchase Price | The following allocation of the total purchase price reflects the fair value of the assets acquired and liabilities assumed as of May 30, 2014 (in thousands): Useful Life Cash $ 1,277 Accounts receivable, net 546 Current assets 35 Property and equipment, net 32 Other assets 505 Goodwill 4,930 Non-compete 290 3 years Customer relationships 1,400 8 years Current technology 1,500 3 years Total Assets Acquired 10,515 Current liabilities (825 ) Long-term liabilities (505 ) Total liabilities assumed (1,330 ) Net assets acquired $ 9,185 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Income Tax Expense | Income tax expense consisted of the following: Years ended April 30, 2015 2014 2013 (In thousands) Current: Federal $ 2,506 $ 4,253 $ 4,103 State 501 686 847 3,007 4,939 4,950 Deferred: Federal (697 ) 557 131 State (36 ) 70 33 (733 ) 627 164 $ 2,274 $ 5,566 $ 5,114 |
Earnings before Income Taxes and Noncontrolling Interest Due to Change in Effective Income Tax Rate | The Company’s actual income tax expense differs from the “expected” income tax expense calculated by applying the Federal statutory rate of 35% for fiscal years 2015, 2014 and 2013, to earnings before income taxes and noncontrolling interest as follows: Years ended April 30, 2015 2014 2013 (In thousands) Computed “expected” income tax expense $ 3,641 $ 5,564 $ 5,434 Increase (decrease) in income taxes resulting from: State income taxes, net of Federal income tax effect 269 493 568 Research and development credits (516 ) (258 ) (584 ) Change in valuation allowance for deferred tax assets (5 ) 45 (187 ) Tax contingencies (955 ) (47 ) 27 Other, net, including permanent items (160 ) (231 ) (144 ) $ 2,274 $ 5,566 $ 5,114 |
Significant Components of Deferred Income Tax (Benefit) Expense Attributable to Income from Continuing Operations before Income Taxes | The significant components of deferred income tax (benefit) expense attributable to income from continuing operations before income taxes for the years ended April 30, 2015, 2014, and 2013 are as follows: Years ended April 30, 2015 2014 2013 (In thousands) Deferred tax (benefit)/expense $ (728 ) $ 582 $ 351 (Decrease) increase in the valuation allowance for deferred tax assets (5 ) 45 (187 ) $ (733 ) $ 627 $ 164 |
Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at April 30, 2015 and 2014 are presented as follows: 2015 2014 (In thousands) Deferred tax assets: Accruals and expenses not deducted for tax purposes $ 914 $ 1,024 State net operating loss carryforwards 350 389 Intangible assets and fixed asset basis differences 1,803 1,347 Nonqualified stock options 1,452 1,154 Total gross deferred tax assets 4,519 3,914 Less valuation allowance 461 466 Net deferred tax assets 4,058 3,448 Deferred tax liabilities: Capitalized computer software development costs (3,758 ) (4,109 ) Net gains/losses on trading securities (605 ) (566 ) Goodwill (752 ) (598 ) Other (575 ) (529 ) Total gross deferred tax liabilities (5,690 ) (5,802 ) Net deferred tax liabilities $ (1,631 ) $ (2,354 ) |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, excluding interest and penalties (in thousands): 2015 2014 Balance at beginning of the period $ 953 $ 981 Decreases as a result of positions taken during prior periods (896 ) (28 ) Increases as a result of positions taken during the current period 4 — Balance at April 30, $ 61 $ 953 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Summary of Changes in Outstanding Options | A summary of changes in outstanding options for the year ended April 30, 2015 is as follows: Number of Weighted Weighted Aggregate Outstanding at May 1, 2014 2,894,072 $ 7.59 Granted 349,000 9.61 Exercised (490,912 ) 5.55 Forfeited/cancelled (31,091 ) 7.70 Outstanding at April 30, 2015 2,721,069 $ 8.21 3.3 $ 4,103,941 Exercisable at April 30, 2015 1,203,369 $ 7.62 2.5 $ 2,526,142 |
Fair Value of Option Award Estimated Using Black-Scholes Option Pricing Model | The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the years ended April 30, 2015, 2014, and 2013: 2015 2014 2013 Dividend yield 4.0 % 4.0 % 4.3 % Expected volatility 34.5 % 47.6 % 59.4 % Risk-free interest rate 1.7 % 1.5 % 0.7 % Expected term 5.0 years 5.0 years 4.3 years |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Future Minimum Lease Payments under Noncancelable Operating Leases | Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of April 30, 2015 are as follows (existence of renewal or escalation clauses) (in thousands): Years ended April 30: 2016 $ 881 2017 816 2018 697 2019 679 2020 208 Thereafter 503 $ 3,784 |
Future Minimum Lease Rentals Receivable under Noncancelable Operating Leases | Future minimum lease rentals receivable under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of April 30, 2015 are as follows (already included or prorated at the Company’s occupied building) (in thousands): Years ended April 30: 2016 $ 706 2017 653 2018 646 2019 557 2020 173 Thereafter 766 $ 3,501 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Segment Operating Profit or Loss | Following is information related to each segment as of and for the years ended April 30, 2015, 2014 and 2013: 2015 2014 2013 Revenues: Enterprise Resource Planning $ 11,363 $ 11,517 $ 12,825 Supply Chain Management 66,066 64,331 62,410 IT Consulting 25,444 24,753 25,232 $ 102,873 $ 100,601 $ 100,467 Operating income/(loss) before intersegment eliminations: Enterprise Resource Planning $ (5,285 ) $ (5,132 ) $ (4,741 ) Supply Chain Management 12,399 17,468 16,881 IT Consulting 2,228 2,189 1,644 $ 9,342 $ 14,525 $ 13,784 Intersegment eliminations: Enterprise Resource Planning $ (2,127 ) $ (1,882 ) $ (1,916 ) Supply Chain Management 2,020 1,778 1,804 IT Consulting 107 104 112 $ — $ — $ — Operating income/(loss) after intersegment eliminations: Enterprise Resource Planning $ (7,412 ) $ (7,014 ) $ (6,657 ) Supply Chain Management 14,419 19,246 18,685 IT Consulting 2,335 2,293 1,756 $ 9,342 $ 14,525 $ 13,784 Capital expenditures: Enterprise Resource Planning $ 791 $ 125 $ 513 Supply Chain Management 229 118 196 IT Consulting 8 12 27 $ 1,028 $ 255 $ 736 Capitalized software: Enterprise Resource Planning $ — $ — $ — Supply Chain Management 2,747 2,949 3,418 IT Consulting — — — $ 2,747 $ 2,949 $ 3,418 Depreciation and amortization: Enterprise Resource Planning $ 925 $ 887 $ 916 Supply Chain Management 4,896 1,706 3,228 IT Consulting 12 12 9 $ 5,833 $ 2,605 $ 4,153 Interest income: Enterprise Resource Planning $ 421 $ 343 $ 452 Supply Chain Management 808 592 688 IT Consulting — — — $ 1,229 $ 935 $ 1,140 Earnings/(loss) before income taxes: Enterprise Resource Planning $ (3,815 ) $ (3,830 ) $ (2,976 ) Supply Chain Management 11,989 17,541 16,897 IT Consulting 2,228 2,186 1,604 $ 10,402 $ 15,897 $ 15,525 April 30, April 30, April 30, Total Consolidated Assets: Enterprise Resource Planning $ 32,435 $ 39,283 $ 36,985 Supply Chain Management 97,101 86,854 70,982 IT Consulting 4,730 5,083 5,103 $ 134,266 $ 131,220 $ 113,070 |
Financial Statements and Supp30
Financial Statements and Supplementary Data (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Schedule of Quarterly Results | The following schedule presents results for each quarter in the years ended April 30, 2015 and 2014 (in thousands, except per share amounts): Total Gross Operating Net Diluted Quarter ended: July 31, 2014 $ 24,857 $ 13,345 $ 2,163 $ 1,534 $ 0.05 October 31, 2014 24,577 12,096 1,379 1,175 0.04 January 31, 2015 25,839 12,849 2,375 2,841 0.10 April 30, 2015 27,600 14,124 3,425 2,578 0.09 Year ended April 30, 2015 $ 102,873 $ 52,414 $ 9,342 $ 8,128 $ 0.28 Quarter ended: July 31, 2013 $ 23,318 $ 12,155 $ 2,383 $ 1,593 $ 0.06 October 31, 2013 26,931 15,526 5,392 3,693 0.13 January 31, 2014 24,427 13,963 3,539 2,477 0.09 April 30, 2014 25,925 15,242 3,211 2,568 0.09 Year ended April 30, 2014 $ 100,601 $ 56,886 $ 14,525 $ 10,331 $ 0.37 * Quarterly amounts may not sum to full year total due to rounding. |
Presentation and Summary of S31
Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Apr. 30, 2015USD ($)SegmentGroupCompensationPlan$ / shares | Apr. 30, 2014USD ($) | Apr. 30, 2013USD ($) | |
Accounting Policies [Line Items] | |||
Number of major business segments | Segment | 3 | ||
Number of major product and service groups | Group | 4 | ||
Amounts received for reimbursement of travel and other out-of-pocket expenses | $ 2,691,000 | $ 2,273,000 | $ 2,239,000 |
Unbilled amounts | 3,585,000 | 3,234,000 | |
Cash equivalents | 43,000,000 | 51,600,000 | |
Total amounts of expense/(recovery) to operations for doubtful accounts | 178,000 | (56,000) | 216,000 |
Depreciation and amortization expense | 1,193,000 | 1,056,000 | 1,076,000 |
Amortization of acquisition-related intangibles | 394,000 | 472,000 | 501,000 |
Goodwill, impairment charge | $ 0 | ||
Number of stock compensation plans | CompensationPlan | 4 | ||
Stock-based compensation expense | $ 1,530,000 | 1,509,000 | 1,476,000 |
Income tax benefit | 542,000 | 496,000 | 436,000 |
Excess tax benefits from stock-based compensation | 384,000 | 611,000 | 131,000 |
Advertising expense | $ 2,100,000 | 2,200,000 | 2,000,000 |
Number of reportable segments | Segment | 3 | ||
Capitalized Software | |||
Accounting Policies [Line Items] | |||
Intangible assets amortized period | 3 years | ||
Computers Equipment and Software | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of assets | 3 years | ||
Office furniture and equipment | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of assets | 7 years | ||
Building | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of assets | 30 years | ||
Operating Expense | |||
Accounting Policies [Line Items] | |||
Amortization of acquisition-related intangibles | $ 394,000 | 472,000 | |
Cost of License Fees | |||
Accounting Policies [Line Items] | |||
Amortization of acquisition-related intangibles | 576,000 | 88,000 | |
Finite-Lived Intangible Assets | |||
Accounting Policies [Line Items] | |||
Amortization of acquisition-related intangibles | $ 970,000 | 561,000 | 501,000 |
Class A Common Shares | |||
Accounting Policies [Line Items] | |||
Dividends preference, per share | $ / shares | $ 0.05 | ||
Logility Stock | Acquired Software | |||
Accounting Policies [Line Items] | |||
Amortization of acquisition-related intangibles | $ 6,000 | 64,000 | $ 75,000 |
Goodwill | Income approach | Discounted cash flow (DCF) methodology | |||
Accounting Policies [Line Items] | |||
Fair value input, valuation technique, weight | 50.00% | ||
Goodwill | Market approach | Comparable transaction methodology (CTM) | |||
Accounting Policies [Line Items] | |||
Fair value input, valuation technique, weight | 15.00% | ||
Goodwill | Market approach | Comparable company methodology (CCM) | |||
Accounting Policies [Line Items] | |||
Fair value input, valuation technique, weight | 35.00% | ||
Unbilled License Fees | |||
Accounting Policies [Line Items] | |||
Unbilled amounts | $ 1,400,000 | 1,100,000 | |
Unbilled Services Revenues | |||
Accounting Policies [Line Items] | |||
Unbilled amounts | $ 2,100,000 | $ 2,200,000 | |
Minimum | |||
Accounting Policies [Line Items] | |||
Contractual period of maintenance contract | 1 year | ||
Contractual period to use software applications | 36 months | ||
Minimum | Other Intangible Assets | |||
Accounting Policies [Line Items] | |||
Intangible assets amortized period | 2 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Contractual period of maintenance contract | 3 years | ||
Contractual period to use software applications | 60 months | ||
Cash equivalents original maturity period | 3 months | ||
Maximum | Other Intangible Assets | |||
Accounting Policies [Line Items] | |||
Intangible assets amortized period | 6 years |
Total Expenditures and Amortiza
Total Expenditures and Amortization of Capitalized Computer Software (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Capitalized Software [Line Items] | |||
Total capitalized computer software development costs | $ 2,747 | $ 2,949 | $ 3,418 |
Total research and development expense | 11,088 | 9,074 | 8,882 |
Total research and development expense and capitalized computer software-development costs | 13,835 | 12,023 | 12,300 |
Total amortization of capitalized computer software development costs | $ 3,663 | $ 925 | $ 2,501 |
Capitalized Computer Software D
Capitalized Computer Software Development Costs (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Capitalized Software [Line Items] | ||
Capitalized computer software development costs | $ 22,067 | $ 19,321 |
Accumulated amortization | (12,252) | (8,589) |
Capitalized software, net | $ 9,815 | $ 10,732 |
Expected Amortization Expenses
Expected Amortization Expenses (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Acquired Finite Lived Intangible Assets | ||
Schedule Of Estimated Future Amortization Expense [Line Items] | ||
2,016 | $ 890 | |
2,017 | 890 | |
2,018 | 254 | |
2,019 | 175 | |
2,020 | 175 | |
Thereafter | 364 | |
Finite-Lived Intangible Assets, Net | 2,748 | $ 528 |
Capitalized Software | ||
Schedule Of Estimated Future Amortization Expense [Line Items] | ||
2,016 | 3,893 | |
2,017 | 3,593 | |
2,018 | 229 | |
Finite-Lived Intangible Assets, Net | $ 7,715 |
Acquisition-Related Intangible
Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Acquired Finite Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | $ 5,898 | $ 2,708 |
Accumulated amortization | (3,150) | (2,180) |
Finite-Lived Intangible Assets, Net, Total | 2,748 | 528 |
Acquired Finite Lived Intangible Assets | Current Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | 3,342 | 1,842 |
Acquired Finite Lived Intangible Assets | Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | 2,190 | 790 |
Acquired Finite Lived Intangible Assets | Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | 76 | 76 |
Acquired Finite Lived Intangible Assets | Non-compete | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | 290 | |
Logility Stock | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | 707 | 707 |
Accumulated amortization | (707) | (701) |
Finite-Lived Intangible Assets, Net, Total | 6 | |
Logility Stock | Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | 477 | 477 |
Logility Stock | Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | 155 | 155 |
Logility Stock | Distribution Channel Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-Related Intangible Assets | $ 75 | $ 75 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | ||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | $ 13,819 | $ 12,601 | |
Goodwill, Ending Balance | 18,749 | 13,819 | |
Taylor Manufacturing Systems, USA, LLC | |||
Goodwill [Line Items] | |||
Goodwill related to the Acquisition | 1,218 | ||
MID Retail, Inc. | |||
Goodwill [Line Items] | |||
Goodwill related to the Acquisition | 4,930 | ||
Enterprise Resource Planning | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [1] | 1,812 | 1,812 |
Goodwill, Ending Balance | [1] | 1,812 | 1,812 |
Supply Chain Management | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [2] | 12,007 | 10,789 |
Goodwill, Ending Balance | [2] | 16,937 | 12,007 |
Supply Chain Management | Taylor Manufacturing Systems, USA, LLC | |||
Goodwill [Line Items] | |||
Goodwill related to the Acquisition | [2] | $ 1,218 | |
Supply Chain Management | MID Retail, Inc. | |||
Goodwill [Line Items] | |||
Goodwill related to the Acquisition | [2] | $ 4,930 | |
[1] | Goodwill related to New Generation Computing, Inc. | ||
[2] | Goodwill related to Logility, Inc., Demand Management, Inc. and their acquisitions |
Intangible Assets Including Acq
Intangible Assets Including Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Beginning Balance | $ 534 | $ 687 |
Amortization expense | (976) | (625) |
Ending Balance | 2,748 | 534 |
Taylor Manufacturing Systems, USA, LLC | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles related to the Acquisition | 472 | |
MID Retail, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles related to the Acquisition | 3,190 | |
Supply Chain Management | ||
Finite-Lived Intangible Assets [Line Items] | ||
Beginning Balance | 534 | 687 |
Amortization expense | (976) | (625) |
Ending Balance | 2,748 | 534 |
Supply Chain Management | Taylor Manufacturing Systems, USA, LLC | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles related to the Acquisition | $ 472 | |
Supply Chain Management | MID Retail, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles related to the Acquisition | $ 3,190 |
Basic Earnings Per Common Share
Basic Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Total | [1] | $ 0.29 | $ 0.37 | $ 0.38 | ||
Basic weighted average common shares | 28,283 | 27,636 | 27,173 | |||
Class A Common Shares | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distributed earnings | $ 0.40 | $ 0.30 | $ 0.48 | |||
Undistributed earnings (loss) | (0.11) | 0.07 | (0.10) | |||
Total | [2] | $ 0.29 | $ 0.37 | $ 0.38 | ||
Distributed earnings | $ 10,301 | $ 7,584 | $ 11,796 | |||
Undistributed earnings (loss) | (2,914) | 1,786 | (2,377) | |||
Total | $ 7,387 | $ 9,370 | $ 9,419 | |||
Basic weighted average common shares | 25,696 | 25,049 | 24,586 | |||
Class B Common Shares | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distributed earnings | $ 0.40 | $ 0.30 | $ 0.48 | |||
Undistributed earnings (loss) | (0.11) | 0.07 | (0.10) | |||
Total | $ 0.29 | [2] | $ 0.37 | [2] | $ 0.38 | |
Distributed earnings | $ 1,035 | $ 776 | $ 1,242 | |||
Undistributed earnings (loss) | (294) | 185 | (250) | |||
Total | $ 741 | $ 961 | $ 992 | |||
Basic weighted average common shares | 2,587 | 2,587 | 2,587 | |||
[1] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.29, $0.37 and $0.38 for the years ended April 30, 2015, 2014 and 2013, respectively. See Note 1 to the Consolidated Financial Statements. | |||||
[2] | Amounts adjusted for rounding |
Diluted Earnings Per Share for
Diluted Earnings Per Share for Class A Common Shares Using If-Converted Method (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||
Undistributed & distributed earnings, Per Basic | $ 2,578 | $ 2,841 | $ 1,175 | $ 1,534 | $ 2,568 | $ 2,477 | $ 3,693 | $ 1,593 | $ 8,128 | $ 10,331 | $ 10,411 | ||||||||||||
Basic weighted average common shares outstanding | 28,283 | 27,636 | 27,173 | ||||||||||||||||||||
Diluted, Class A Common Shares | 28,614 | 28,111 | 27,629 | ||||||||||||||||||||
Basic, EPS | [1] | $ 0.29 | $ 0.37 | $ 0.38 | |||||||||||||||||||
Diluted, EPS | $ 0.09 | [2] | $ 0.10 | [2] | $ 0.04 | [2] | $ 0.05 | [2] | $ 0.09 | [2] | $ 0.09 | [2] | $ 0.13 | [2] | $ 0.06 | [2] | $ 0.28 | [1],[2] | $ 0.37 | [1],[2] | $ 0.38 | [1] | |
Class A Common Shares | |||||||||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||
Undistributed & distributed earnings, Per Basic | $ 7,387 | $ 9,370 | $ 9,419 | ||||||||||||||||||||
Undistributed & Distributed Earnings, Class B Conversion | 741 | 961 | 992 | ||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted, Total | $ 8,128 | $ 10,331 | $ 10,411 | ||||||||||||||||||||
Basic weighted average common shares outstanding | 25,696 | 25,049 | 24,586 | ||||||||||||||||||||
Common Stock Equivalents | 331 | 475 | 456 | ||||||||||||||||||||
Weighted Average Number of Shares Including Common Stock Equivalents, Diluted | 26,027 | 25,524 | 25,042 | ||||||||||||||||||||
Class B Conversion | 2,587 | 2,587 | 2,587 | ||||||||||||||||||||
Diluted, Class A Common Shares | 28,614 | 28,111 | 27,629 | ||||||||||||||||||||
Basic, EPS | [3] | $ 0.29 | $ 0.37 | $ 0.38 | |||||||||||||||||||
Diluted, EPS | [3] | $ 0.28 | $ 0.37 | $ 0.38 | |||||||||||||||||||
[1] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.29, $0.37 and $0.38 for the years ended April 30, 2015, 2014 and 2013, respectively. See Note 1 to the Consolidated Financial Statements. | ||||||||||||||||||||||
[2] | Quarterly amounts may not sum to full year total due to rounding. | ||||||||||||||||||||||
[3] | Amounts adjusted for rounding |
Diluted Earnings Per Share fo40
Diluted Earnings Per Share for Class B Common Shares Using Two-Class Method (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||
Net earnings | $ 2,578 | $ 2,841 | $ 1,175 | $ 1,534 | $ 2,568 | $ 2,477 | $ 3,693 | $ 1,593 | $ 8,128 | $ 10,331 | $ 10,411 | ||||||||||||
Basic weighted average common shares outstanding | 28,283 | 27,636 | 27,173 | ||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 28,614 | 28,111 | 27,629 | ||||||||||||||||||||
Basic, EPS | [1] | $ 0.29 | $ 0.37 | $ 0.38 | |||||||||||||||||||
Diluted, EPS | $ 0.09 | [2] | $ 0.10 | [2] | $ 0.04 | [2] | $ 0.05 | [2] | $ 0.09 | [2] | $ 0.09 | [2] | $ 0.13 | [2] | $ 0.06 | [2] | $ 0.28 | [1],[2] | $ 0.37 | [1],[2] | $ 0.38 | [1] | |
Class B Common Shares | |||||||||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||
Undistributed & Distributed Earnings, Class B Conversion | $ 741 | $ 961 | $ 992 | ||||||||||||||||||||
Reallocation of Undistributed Earnings | 4 | (3) | 4 | ||||||||||||||||||||
Net earnings | $ 745 | $ 958 | $ 996 | ||||||||||||||||||||
Basic weighted average common shares outstanding | 2,587 | 2,587 | 2,587 | ||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 2,587 | 2,587 | 2,587 | ||||||||||||||||||||
Basic, EPS | $ 0.29 | [3] | $ 0.37 | [3] | $ 0.38 | ||||||||||||||||||
Diluted, EPS | $ 0.29 | [3] | $ 0.37 | [3] | $ 0.38 | ||||||||||||||||||
[1] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.29, $0.37 and $0.38 for the years ended April 30, 2015, 2014 and 2013, respectively. See Note 1 to the Consolidated Financial Statements. | ||||||||||||||||||||||
[2] | Quarterly amounts may not sum to full year total due to rounding. | ||||||||||||||||||||||
[3] | Amounts adjusted for rounding |
Components of Investments (Deta
Components of Investments (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total debt securities | $ 22,269 | $ 16,355 |
Marketable equity securities | 8,471 | 7,416 |
Trading Securities, Total | 30,740 | 23,771 |
Tax-exempt state and municipal bonds | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total debt securities | 21,555 | 15,167 |
Corporate bonds | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total debt securities | $ 714 | $ 1,188 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Carrying value of investment | $ 30,740,000 | $ 23,771,000 | |
Trading investments | 13,156,000 | 8,975,000 | |
Net unrealized holding gains | $ 405,000 | $ 160,000 | $ 815,000 |
Contractual Maturities of Debt
Contractual Maturities of Debt Securities Classified as Trading (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Due within one year | $ 8,581 | $ 7,646 |
Due within two years | 11,348 | 6,228 |
Due within three years | 1,983 | 1,970 |
Due after three years | 357 | 511 |
Total debt securities | $ 22,269 | $ 16,355 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 42,951 | $ 51,561 |
Marketable securities | 30,694 | 23,505 |
Total | 73,645 | 75,066 |
Quoted Prices in Active Markets for Identical Assets, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 42,951 | 51,561 |
Marketable securities | 9,139 | 8,338 |
Total | 52,090 | 59,899 |
Significant Other Observable Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 21,555 | 15,167 |
Total | $ 21,555 | $ 15,167 |
Fair Value of Financial Instr45
Fair Value of Financial Instruments - Additional Information (Detail) | Apr. 30, 2015USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Equity method investment valued | $ 46,000 |
Furniture, Equipment and Purc46
Furniture, Equipment and Purchased Software (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Gross property plant and equipment | $ 35,180 | $ 34,226 |
Accumulated depreciation and amortization | (31,632) | (30,545) |
Net property plant and equipment | 3,548 | 3,681 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property plant and equipment | 20,716 | 20,011 |
Computer equipment and purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property plant and equipment | 10,049 | 9,842 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property plant and equipment | $ 4,415 | $ 4,373 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | May. 30, 2014 | Aug. 14, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 | Apr. 30, 2013 |
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price allocate to goodwill | $ 18,749,000 | $ 13,819,000 | $ 12,601,000 | |||||
MID Retail, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of issued and outstanding shares of capital stock | 100.00% | |||||||
Business acquisition, purchase price paid in cash | $ 8,507,000 | |||||||
Business acquisition, working capital adjustment | $ 678,000 | |||||||
Earnout period | 24 months | |||||||
Additional consideration payments, percentage of license fee revenues | 15.00% | |||||||
Additional consideration payments | $ 1,500,000 | |||||||
Business acquisition costs incurred | $ 282,000 | |||||||
Business acquisition, purchase price allocate to goodwill | 4,930,000 | |||||||
MID Retail, Inc. | License Revenue | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenues included in the consolidated financial statements since date of acquisition | 1,761,000 | |||||||
MID Retail, Inc. | Services and other revenues | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenues included in the consolidated financial statements since date of acquisition | 725,000 | |||||||
MID Retail, Inc. | Maintenance revenues | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenues included in the consolidated financial statements since date of acquisition | $ 1,160,000 | |||||||
MID Retail, Inc. | Current Technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets amortized period | 3 years | |||||||
Taylor Manufacturing Systems, USA, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price paid in cash | $ 1,191,000 | |||||||
Business acquisition costs incurred | $ 68,500 | $ 68,500 | ||||||
Business acquisition, purchase price allocate to goodwill | 1,218,000 | |||||||
Business acquisition, purchase price | 1,841,000 | |||||||
Business acquisition, additional cash payments payable in each of three years following closing | 200,000 | |||||||
Business acquisition, additional cash payments payable in first anniversary | 200,000 | |||||||
Business acquisition, additional cash payments payable in second and third anniversaries | $ 366,000 | |||||||
Business acquisition, cash payments payable in second anniversary | $ 200,000 | |||||||
Business acquisition, cash payments payable in third anniversaries | $ 183,000 | |||||||
Taylor Manufacturing Systems, USA, LLC | Current Technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets amortized period | 4 years |
Allocation of Total Purchase Pr
Allocation of Total Purchase Price (Detail) - USD ($) $ in Thousands | May. 30, 2014 | Aug. 14, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 18,749 | $ 13,819 | $ 12,601 | ||
Taylor Manufacturing Systems, USA, LLC | |||||
Business Acquisition [Line Items] | |||||
Current assets | $ 130 | ||||
Goodwill | 1,218 | ||||
Total Assets Acquired | 1,820 | ||||
Current liabilities | (213) | ||||
Long Term liabilities | (366) | ||||
Net Assets Acquired | 1,241 | ||||
Taylor Manufacturing Systems, USA, LLC | Current Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 472 | ||||
Useful Life | 4 years | ||||
MID Retail, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 1,277 | ||||
Accounts receivable, net | 546 | ||||
Current assets | 35 | ||||
Property and equipment, net | 32 | ||||
Other assets | 505 | ||||
Goodwill | 4,930 | ||||
Total Assets Acquired | 10,515 | ||||
Current liabilities | (825) | ||||
Long Term liabilities | (505) | ||||
Total liabilities assumed | (1,330) | ||||
Net Assets Acquired | 9,185 | ||||
MID Retail, Inc. | Current Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 1,500 | ||||
Useful Life | 3 years | ||||
MID Retail, Inc. | Non-compete | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 290 | ||||
Useful Life | 3 years | ||||
MID Retail, Inc. | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 1,400 | ||||
Useful Life | 8 years |
Income Tax Expense (Detail)
Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Current: | |||
Federal | $ 2,506 | $ 4,253 | $ 4,103 |
State | 501 | 686 | 847 |
Current Income Tax Expense (Benefit), Total | 3,007 | 4,939 | 4,950 |
Deferred: | |||
Federal | (697) | 557 | 131 |
State | (36) | 70 | 33 |
Deferred Income Tax Expense (Benefit), Net of Valuation Allowance, Total | (733) | 627 | 164 |
Income tax expense | $ 2,274 | $ 5,566 | $ 5,114 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Income Tax Disclosure [Line Items] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Effective income tax rate | 22.00% | 35.00% | 33.00% |
Tax benefits realized from the recognition of stock option deductions | $ 420,000 | $ 361,000 | $ 160,000 |
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 115,000 | 1,200,000 | $ 1,200,000 |
Income tax benefit due to reversal of FIN 48 Reverse | 973,000 | ||
Liability for potential penalties and interest | 54,000 | $ 160,000 | |
State and Local Jurisdiction | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards | $ 10,600,000 | ||
Operating loss carryforwards expiration year | 2,034 |
Effective Income Tax Rate (Deta
Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Computed "expected" income tax expense | $ 3,641 | $ 5,564 | $ 5,434 |
Increase (decrease) in income taxes resulting from: | |||
State income taxes, net of Federal income tax effect | 269 | 493 | 568 |
Research and development credits | (516) | (258) | (584) |
Change in valuation allowance for deferred tax assets | (5) | 45 | (187) |
Tax contingencies | (955) | (47) | 27 |
Other, net, including permanent items | (160) | (231) | (144) |
Income tax expense | $ 2,274 | $ 5,566 | $ 5,114 |
Significant Components of Defer
Significant Components of Deferred Income Tax (Benefit) Expense Attributable to Income from Continuing Operations before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Significant Components Of Deferred Income Tax Expense [Line Items] | |||
Deferred tax (benefit)/expense | $ (728) | $ 582 | $ 351 |
(Decrease) increase in the valuation allowance for deferred tax assets | (5) | 45 | (187) |
Deferred Income Tax Expense (Benefit), Net of Valuation Allowance, Total | $ (733) | $ 627 | $ 164 |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Deferred tax assets: | ||
Accruals and expenses not deducted for tax purposes | $ 914 | $ 1,024 |
State net operating loss carryforwards | 350 | 389 |
Intangible assets and fixed asset basis differences | 1,803 | 1,347 |
Nonqualified stock options | 1,452 | 1,154 |
Total gross deferred tax assets | 4,519 | 3,914 |
Less valuation allowance | 461 | 466 |
Net deferred tax assets | 4,058 | 3,448 |
Deferred tax liabilities: | ||
Capitalized computer software development costs | (3,758) | (4,109) |
Net gains/losses on trading securities | (605) | (566) |
Goodwill | (752) | (598) |
Other | (575) | (529) |
Total gross deferred tax liabilities | (5,690) | (5,802) |
Net deferred tax liabilities | $ (1,631) | $ (2,354) |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits, Excluding Interest and Penalties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Reconciliation of Unrecognized Tax Benefits [Line Items] | ||
Balance at beginning of the period | $ 953 | $ 981 |
Decreases as a result of positions taken during prior periods | (896) | (28) |
Increases as a result of positions taken during the current period | 4 | |
Balance at April 30, | $ 61 | $ 953 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | 152 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2015 | |
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Incentive and nonqualified options exercisable | 1,203,369 | 1,203,369 | ||
Weighted-average grant date fair value of stock options granted | $ 2.04 | $ 2.98 | $ 2.90 | |
Stock options exercised | 490,912 | 890,341 | 386,356 | |
Total intrinsic value of options exercised | $ 2,100,295 | $ 3,266,301 | $ 1,163,699 | |
Fair value of grants vested | 1,625,742 | $ 1,442,478 | 1,447,612 | |
Unrecognized compensation cost related to unvested stock option | $ 2,900,000 | $ 2,900,000 | ||
Weighted average period for Unrecognized compensation cost | 1 year 6 months 11 days | |||
Cost of common stock repurchased | $ 1,100,000 | $ 759,000 | ||
Director | Initial Allocation | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Options available for grant | 5,000 | 5,000 | ||
Director | Quarterly Option Amount | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Options available for grant | 3,000 | 3,000 | ||
2001 Option Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Stock option plan effective date | Sep. 1, 2000 | |||
2011 Option Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Stock option plan effective date | May 17, 2010 | |||
Options available for grant | 711,843 | 711,843 | ||
Options exercisable period, maximum | 6 years | |||
Shares options authorized for issuance | 3,700,000 | 3,700,000 | ||
2011 Option Plan | Scenario, Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Shares options authorized for issuance | 5,000,000 | 5,000,000 | ||
2011 Option Plan | Non Qualified | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Incentive and nonqualified options exercisable | 1,203,369 | 1,071,812 | 1,893,887 | 1,203,369 |
1997 Stock Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Stock option plan effective date | Jul. 9, 2009 | |||
Class A Common Shares | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Percentage of board of directors entitled to elect | 25.00% | |||
Ownership compared to both classes of common stock | 10.00% | 10.00% | ||
Common stock dividends declared | $ 0.05 | |||
Common stock shares repurchased | 4,568,297 | |||
Cost of common stock repurchased | $ 25,400,000 | |||
Class A Common Shares | Shares Stock Repurchase Plan, August 19, 2002 | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Approved number of shares to be repurchased | 2,000,000 | 2,000,000 | ||
Common stock shares repurchased | 123,482 | 1,033,344 | ||
Cost of common stock repurchased | $ 1,100,000 | $ 6,000,000 | ||
Shareholder Holding More Than 10% of Outstanding Shares | 2011 Option Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Ownership compared to both classes of common stock | 10.00% | 10.00% | ||
Options exercisable period, maximum | 5 years |
Summary of Changes in Outstandi
Summary of Changes in Outstanding Options (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Outstanding at May 1, 2014 | 2,894,072 | ||
Number of Shares Granted | 349,000 | ||
Number of Shares Exercised | (490,912) | (890,341) | (386,356) |
Number of Shares Forfeited/cancelled | (31,091) | ||
Number of Shares Outstanding at April 30, 2015 | 2,721,069 | 2,894,072 | |
Number of Shares Exercisable at April 30, 2015 | 1,203,369 | ||
Weighted Average Exercise Price Outstanding at May 1, 2014 | $ 7.59 | ||
Weighted Average Exercise Price Granted | 9.61 | ||
Weighted Average Exercise Price Exercised | 5.55 | ||
Weighted Average Exercise Price Forfeited/cancelled | 7.70 | ||
Weighted Average Exercise Price Outstanding at April 30, 2015 | 8.21 | $ 7.59 | |
Weighted Average Exercise Price Exercisable at April 30, 2015 | $ 7.62 | ||
Weighted Average Remaining Contractual Term Outstanding at April 30, 2015 | 3 years 3 months 18 days | ||
Weighted Average Remaining Contractual Term Exercisable at April 30, 2015 | 2 years 6 months | ||
Aggregate Intrinsic Value Outstanding at April 30, 2015 | $ 4,103,941 | ||
Aggregate Intrinsic Value Exercisable at April 30, 2015 | $ 2,526,142 |
Weighted Average Assumptions Us
Weighted Average Assumptions Used to Estimate Fair Value Each Option (Detail) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 4.00% | 4.00% | 4.30% |
Expected volatility | 34.50% | 47.60% | 59.40% |
Risk-free interest rate | 1.70% | 1.50% | 0.70% |
Expected term | 5 years | 5 years | 4 years 3 months 18 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Commitment And Contingencies [Line Items] | |||
Rental expense for operating leases | $ 931,000 | $ 841,000 | $ 854,000 |
Employee contribution percentage | 60.00% | ||
Headquarters in Atlanta, GA | |||
Commitment And Contingencies [Line Items] | |||
Operating lease rental income | $ 687,000 | 574,000 | 418,000 |
Various Operating Leases | |||
Commitment And Contingencies [Line Items] | |||
Operating lease rental income | $ 270,000 | $ 230,000 | $ 225,000 |
Future Minimum Lease Payments u
Future Minimum Lease Payments under Noncancelable Operating Leases (Detail) $ in Thousands | Apr. 30, 2015USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2,016 | $ 881 |
2,017 | 816 |
2,018 | 697 |
2,019 | 679 |
2,020 | 208 |
Thereafter | 503 |
Operating Leases, Future Minimum Payments Due, Total | $ 3,784 |
Future Minimum Lease Rentals Re
Future Minimum Lease Rentals Receivable under Noncancelable Operating Leases (Detail) $ in Thousands | Apr. 30, 2015USD ($) |
Operating Leases Disclosure [Line Items] | |
2,016 | $ 706 |
2,017 | 653 |
2,018 | 646 |
2,019 | 557 |
2,020 | 173 |
Thereafter | 766 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 3,501 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Apr. 30, 2015USD ($)CustomerSegmentGroup | Apr. 30, 2014USD ($)Customer | Apr. 30, 2013USD ($)Customer | |
Segment Reporting Information [Line Items] | |||
Number of major business segments | Segment | 3 | ||
Number of major product and service groups | Group | 4 | ||
Number of major customers | Customer | 0 | 0 | 1 |
Accounts receivable from major customer | $ 1.6 | ||
Consolidated revenues | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of total revenue | 11.00% | ||
Total revenues | Customer Concentration Risk | Maximum | |||
Segment Reporting Information [Line Items] | |||
Percentage of total revenue | 10.00% | 10.00% | |
International Customers | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 16.3 | $ 17.1 | $ 14 |
International Customers | Consolidated revenues | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of total revenue | 16.00% | 17.00% | 14.00% |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 27,600 | $ 25,839 | $ 24,577 | $ 24,857 | $ 25,925 | $ 24,427 | $ 26,931 | $ 23,318 | $ 102,873 | $ 100,601 | $ 100,467 |
Operating income/(loss) | 3,425 | $ 2,375 | $ 1,379 | $ 2,163 | 3,211 | $ 3,539 | $ 5,392 | $ 2,383 | 9,342 | 14,525 | 13,784 |
Capital expenditures | 1,028 | 255 | 736 | ||||||||
Capitalized software | 2,747 | 2,949 | 3,418 | ||||||||
Depreciation and amortization | 5,833 | 2,605 | 4,153 | ||||||||
Interest income | 1,229 | 935 | 1,140 | ||||||||
Earnings (loss) before income taxes | 10,402 | 15,897 | 15,525 | ||||||||
Total Consolidated Assets | 134,266 | 131,220 | 134,266 | 131,220 | 113,070 | ||||||
Enterprise Resource Planning | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 11,363 | 11,517 | 12,825 | ||||||||
Operating income/(loss) | (7,412) | (7,014) | (6,657) | ||||||||
Capital expenditures | 791 | 125 | 513 | ||||||||
Depreciation and amortization | 925 | 887 | 916 | ||||||||
Interest income | 421 | 343 | 452 | ||||||||
Earnings (loss) before income taxes | (3,815) | (3,830) | (2,976) | ||||||||
Total Consolidated Assets | 32,435 | 39,283 | 32,435 | 39,283 | 36,985 | ||||||
Supply Chain Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 66,066 | 64,331 | 62,410 | ||||||||
Operating income/(loss) | 14,419 | 19,246 | 18,685 | ||||||||
Capital expenditures | 229 | 118 | 196 | ||||||||
Capitalized software | 2,747 | 2,949 | 3,418 | ||||||||
Depreciation and amortization | 4,896 | 1,706 | 3,228 | ||||||||
Interest income | 808 | 592 | 688 | ||||||||
Earnings (loss) before income taxes | 11,989 | 17,541 | 16,897 | ||||||||
Total Consolidated Assets | 97,101 | 86,854 | 97,101 | 86,854 | 70,982 | ||||||
IT Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 25,444 | 24,753 | 25,232 | ||||||||
Operating income/(loss) | 2,335 | 2,293 | 1,756 | ||||||||
Capital expenditures | 8 | 12 | 27 | ||||||||
Depreciation and amortization | 12 | 12 | 9 | ||||||||
Earnings (loss) before income taxes | 2,228 | 2,186 | 1,604 | ||||||||
Total Consolidated Assets | $ 4,730 | $ 5,083 | 4,730 | 5,083 | 5,103 | ||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income/(loss) | 9,342 | 14,525 | 13,784 | ||||||||
Operating Segments | Enterprise Resource Planning | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income/(loss) | (5,285) | (5,132) | (4,741) | ||||||||
Operating Segments | Supply Chain Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income/(loss) | 12,399 | 17,468 | 16,881 | ||||||||
Operating Segments | IT Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income/(loss) | 2,228 | 2,189 | 1,644 | ||||||||
Intersegment Eliminations | Enterprise Resource Planning | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income/(loss) | (2,127) | (1,882) | (1,916) | ||||||||
Intersegment Eliminations | Supply Chain Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income/(loss) | 2,020 | 1,778 | 1,804 | ||||||||
Intersegment Eliminations | IT Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income/(loss) | $ 107 | $ 104 | $ 112 |
Schedule of Quarterly Results (
Schedule of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||||||||||||
Schedule Of Quarterly Financial Data [Line Items] | ||||||||||||||||||||||
Total revenues | $ 27,600 | $ 25,839 | $ 24,577 | $ 24,857 | $ 25,925 | $ 24,427 | $ 26,931 | $ 23,318 | $ 102,873 | $ 100,601 | $ 100,467 | |||||||||||
Gross margin | 14,124 | 12,849 | 12,096 | 13,345 | 15,242 | 13,963 | 15,526 | 12,155 | 52,414 | 56,886 | 54,907 | |||||||||||
Operating income | 3,425 | 2,375 | 1,379 | 2,163 | 3,211 | 3,539 | 5,392 | 2,383 | 9,342 | 14,525 | 13,784 | |||||||||||
Net earnings | $ 2,578 | $ 2,841 | $ 1,175 | $ 1,534 | $ 2,568 | $ 2,477 | $ 3,693 | $ 1,593 | $ 8,128 | $ 10,331 | $ 10,411 | |||||||||||
Diluted earnings per share | $ 0.09 | [1] | $ 0.10 | [1] | $ 0.04 | [1] | $ 0.05 | [1] | $ 0.09 | [1] | $ 0.09 | [1] | $ 0.13 | [1] | $ 0.06 | [1] | $ 0.28 | [1],[2] | $ 0.37 | [1],[2] | $ 0.38 | [2] |
[1] | Quarterly amounts may not sum to full year total due to rounding. | |||||||||||||||||||||
[2] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.29, $0.37 and $0.38 for the years ended April 30, 2015, 2014 and 2013, respectively. See Note 1 to the Consolidated Financial Statements. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - May. 13, 2015 - Subsequent Event - $ / shares | Total |
Subsequent Event [Line Items] | |
Cash dividends declared, per common share | $ 0.10 |
Cash dividends declared, payment date | Aug. 21, 2015 |
Cash dividends declared, record date | Aug. 7, 2015 |
Consolidated Valuation Accoun65
Consolidated Valuation Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | $ 222 | $ 337 | $ 171 | |
Amounts charged to expense | 178 | (56) | 216 | |
Other Additions | [1] | 1 | 86 | 0 |
Deductions | [2] | 186 | 145 | 50 |
Balance at end of year | $ 215 | $ 222 | $ 337 | |
[1] | Recovery of previously written-off amounts. | |||
[2] | Write-off of uncollectible accounts. |