Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Nov. 30, 2020 | Dec. 10, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | CalAmp Corp. | |
Entity Central Index Key | 0000730255 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | CAMP | |
Current Fiscal Year End Date | --02-28 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity File Number | 0-12182 | |
Entity Tax Identification Number | 95-3647070 | |
Entity Address, Address Line One | 15635 Alton Parkway | |
Entity Address, Address Line Two | Suite 250 | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92618 | |
City Area Code | (949) | |
Local Phone Number | 600-5600 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 35,034,722 | |
Entity Incorporation, State or Country Code | DE | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common stock, $0.01 per share | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 91,692 | $ 107,404 |
Accounts receivable, net | 67,852 | 72,273 |
Inventories | 32,162 | 36,778 |
Prepaid expenses and other current assets | 23,520 | 21,411 |
Total current assets | 215,226 | 237,866 |
Property and equipment, net | 44,576 | 55,878 |
Operating lease right-of-use assets | 17,653 | 20,626 |
Deferred income tax assets | 4,441 | 4,437 |
Goodwill | 94,468 | 106,335 |
Other intangible assets, net | 38,943 | 45,895 |
Other assets | 26,516 | 24,768 |
Total assets | 441,823 | 495,805 |
Current liabilities: | ||
Current portion of long-term debt | 4,790 | 33,119 |
Accounts payable | 36,834 | 28,450 |
Accrued payroll and employee benefits | 8,641 | 9,049 |
Deferred revenue | 36,003 | 34,704 |
Other current liabilities | 21,116 | 16,153 |
Total current liabilities | 107,384 | 121,475 |
Long-term debt, net of current portion | 180,646 | 177,088 |
Operating lease liabilities | 19,217 | 24,279 |
Other non-current liabilities | 35,258 | 35,044 |
Total liabilities | 342,505 | 357,886 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value; 3,000 shares authorized; no shares issued or outstanding | ||
Common stock, $.01 par value; 80,000 shares authorized; 35,035 and 34,322 shares issued and outstanding at November 30, 2020 and February 29, 2020, respectively | 350 | 343 |
Additional paid-in capital | 229,326 | 220,482 |
Accumulated deficit | (129,245) | (81,531) |
Accumulated other comprehensive loss | (1,113) | (1,375) |
Total stockholders' equity | 99,318 | 137,919 |
Total Liabilities and Stockholders' Equity | $ 441,823 | $ 495,805 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Nov. 30, 2020 | Feb. 29, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 35,035,000 | 34,322,000 |
Common stock, shares outstanding | 35,035,000 | 34,322,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Revenues: | ||||
Revenues | $ 88,012 | $ 96,597 | $ 251,764 | $ 278,903 |
Cost of revenues: | ||||
Cost of revenues | 53,007 | 59,713 | 154,896 | 168,938 |
Gross profit | 35,005 | 36,884 | 96,868 | 109,965 |
Operating expenses: | ||||
Research and development | 6,783 | 7,742 | 20,096 | 22,552 |
Selling and marketing | 14,647 | 14,683 | 41,026 | 45,198 |
General and administrative | 13,642 | 14,283 | 41,210 | 44,660 |
Intangible asset amortization | 1,855 | 3,325 | 5,591 | 9,683 |
Restructuring | 92 | 848 | 2,551 | 3,120 |
Impairment loss | 17,999 | 22,574 | ||
Total operating expenses | 55,018 | 40,881 | 133,048 | 125,213 |
Operating loss | (20,013) | (3,997) | (36,180) | (15,248) |
Non-operating income (expense): | ||||
Investment income | 584 | 1,108 | 1,282 | 4,445 |
Interest expense | (3,880) | (4,987) | (11,814) | (15,998) |
Loss on extinguishment of debt | (2,408) | (2,408) | ||
Other income (expense) | (52) | 232 | (43) | 26 |
Total non-operating expense | (3,348) | (6,055) | (10,575) | (13,935) |
Loss before income taxes and impairment loss in investment of affiliate | (23,361) | (10,052) | (46,755) | (29,183) |
Income tax benefit (provision) | (319) | 2,637 | (825) | 6,236 |
Loss before impairment loss in investment of affiliate | (23,680) | (7,415) | (47,580) | (22,947) |
Impairment loss in investment of affiliate | (530) | |||
Net loss | $ (23,680) | $ (7,415) | $ (47,580) | $ (23,477) |
Loss per share: | ||||
Basic | $ (0.68) | $ (0.22) | $ (1.39) | $ (0.70) |
Diluted | $ (0.68) | $ (0.22) | $ (1.39) | $ (0.70) |
Shares used in computing loss per share: | ||||
Basic | 34,599 | 33,822 | 34,292 | 33,589 |
Diluted | 34,599 | 33,822 | 34,292 | 33,589 |
Comprehensive income (loss): | ||||
Net loss | $ (23,680) | $ (7,415) | $ (47,580) | $ (23,477) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 1,062 | 1,165 | 262 | (122) |
Total comprehensive loss | (22,618) | (6,250) | (47,318) | (23,599) |
Products [Member] | ||||
Revenues: | ||||
Revenues | 58,327 | 65,930 | 162,376 | 195,867 |
Cost of revenues: | ||||
Cost of revenues | 37,773 | 43,569 | 110,561 | 121,659 |
Application Subscriptions and Other Services [Member] | ||||
Revenues: | ||||
Revenues | 29,685 | 30,667 | 89,388 | 83,036 |
Cost of revenues: | ||||
Cost of revenues | $ 15,234 | $ 16,144 | $ 44,335 | $ 47,279 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (47,580) | $ (23,477) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation expense | 15,008 | 14,054 |
Intangible asset amortization | 5,591 | 9,683 |
Stock-based compensation expense | 9,499 | 9,378 |
Amortization of discount and debt issuance costs | 7,712 | 11,031 |
Impairment loss | 22,574 | |
Impairment of operating lease right-of-use (ROU) assets | 1,210 | |
Noncash operating lease cost | 3,943 | 3,440 |
Loss on extinguishment of debt | 2,408 | |
Revenue assigned to factors | (4,864) | (5,016) |
Deferred tax assets, net | 372 | (5,701) |
Other | 397 | 1,342 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,772 | (1,145) |
Inventories | 4,919 | (5,747) |
Prepaid expenses and other assets | (4,427) | (1,853) |
Accounts payable | 7,514 | (7,652) |
Accrued liabilities | 5,778 | (1,805) |
Deferred revenue | (2,323) | 3,797 |
Operating lease liabilities | (4,542) | (644) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 24,343 | 3,303 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities of marketable securities | 6,264 | 35,129 |
Purchases of marketable securities | (6,264) | (19,543) |
Capital expenditures | (11,090) | (17,637) |
Acquisitions, net of cash acquired | (60,634) | |
Other | 371 | |
NET CASH USED IN INVESTING ACTIVITIES | (11,090) | (62,314) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from Paycheck Protection Program Loan | 10,000 | |
Repayment of Paycheck Protection Program Loan | (10,000) | |
Proceeds from revolving credit facility, net of issuance cost | 19,944 | |
Repayment of 2020 Convertible Notes | (27,599) | |
Repayment of revolving credit facility | (20,000) | |
Repurchase of 2020 Convertible Notes | (94,683) | |
Taxes paid related to net share settlement of vested equity awards | (1,557) | (1,827) |
Proceeds from exercise of stock options and contributions to employee stock purchase plan | 909 | 1,048 |
NET CASH USED IN FINANCING ACTIVITIES | (28,303) | (95,462) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (662) | (393) |
Net change in cash and cash equivalents | (15,712) | (154,866) |
Cash and cash equivalents at beginning of period | 107,404 | 256,500 |
Cash and cash equivalents at end of period | $ 91,692 | $ 101,634 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
Balances at Feb. 28, 2019 | $ 205,653 | $ 208,541 | $ (2,227) | $ (661) |
Stock-based compensation expense | 9,378 | |||
Shares issued on net share settlement of equity awards | (1,827) | |||
Exercise of stock options and contributions to ESPP | 1,048 | |||
Net loss | (23,477) | (23,477) | ||
Foreign currency translation adjustment | (122) | |||
Balances at Nov. 30, 2019 | 190,653 | 217,140 | (25,704) | (783) |
Balances at Aug. 31, 2019 | 193,296 | 213,533 | (18,289) | (1,948) |
Stock-based compensation expense | 3,652 | |||
Shares issued on net share settlement of equity awards | (98) | |||
Exercise of stock options and contributions to ESPP | 53 | |||
Net loss | (7,415) | (7,415) | ||
Foreign currency translation adjustment | 1,165 | |||
Balances at Nov. 30, 2019 | 190,653 | 217,140 | (25,704) | (783) |
Balances at Feb. 29, 2020 | 137,919 | 220,825 | (81,531) | (1,375) |
Stock-based compensation expense | 9,499 | |||
Shares issued on net share settlement of equity awards | (1,557) | |||
Exercise of stock options and contributions to ESPP | 909 | |||
Net loss | (47,580) | (47,580) | ||
Foreign currency translation adjustment | 262 | |||
Balances at Nov. 30, 2020 | 99,318 | 229,676 | (129,245) | (1,113) |
Balances (ASC 326 [Member]) at Nov. 30, 2020 | (134) | |||
Balances at Aug. 31, 2020 | 118,978 | 226,718 | (105,565) | (2,175) |
Stock-based compensation expense | 3,030 | |||
Shares issued on net share settlement of equity awards | (72) | |||
Net loss | (23,680) | (23,680) | ||
Foreign currency translation adjustment | 1,062 | |||
Balances at Nov. 30, 2020 | $ 99,318 | $ 229,676 | (129,245) | $ (1,113) |
Balances (ASC 326 [Member]) at Nov. 30, 2020 | $ (134) |
DESCRIPTION OF BUSINESS, BASIS
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business CalAmp Corp. (referred to herein as “CalAmp”, “the Company”, “we”, “our”, or “us”) is a global technology solutions pioneer leading transformation to a mobile connected economy. We help reinvent businesses and improve lives around the globe with technology solutions that streamline complex mobile Internet of Things (“IoT”) deployments through wireless connectivity solutions and derived data intelligence. Our software applications, scalable cloud services, and intelligent devices collect and assess business-critical data anywhere in the world from industrial machines, commercial and passenger vehicles, their drivers and contents. We are a global organization that is headquartered in Irvine, California. In March 2020, the World Health Organization declared the spread of COVID-19 as a pandemic. The full impact of the COVID-19 outbreak remains uncertain as of the time of this report given the diversity of rules and regulations in the U.S. and other countries in which we operate. The pandemic has resulted in travel restrictions, prohibitions of non-essential activities, disruption and shutdown of businesses and greater uncertainty in global financial markets. The effect of the outbreak may continue to impact our operating results depending on the severity of the pandemic and the actions taken or to be taken by governments and private businesses in relation to its containment. We cannot predict the extent to which the COVID-19 outbreak will negatively impact our business or operating results at this time. We have considered all known and reasonably available information that existed as of November 30, 2020, in making accounting judgments, estimates and disclosures. We are monitoring the potential effects of the health care related and economic conditions of COVID-19 in assessing certain matters including (but not limited to) supply chain disruptions, decreases in customer demand for our products and services, potential longer-term effects on our customer and distribution channels particularly in the U.S. and relevant end markets as well as other developments. If the impact results in longer-term closures of businesses and economic recessionary conditions, we may recognize additional material asset impairments, charges for uncollectible accounts receivable in future periods and incur additional restructuring charges. Certain notes and other information included in the audited financial statements in our Annual Report on Form 10-K for the fiscal year ended February 29, 2020 are condensed in or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with our 2020 Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission (“SEC”) on May 6, 2020. In the opinion of our management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly our financial position at November 30, 2020 and our results of operations for the three and nine months ended November 30, 2020 and 2019. The results of operations for such periods are not necessarily indicative of results to be expected for the full fiscal year ending February 28, 2021. All intercompany transactions and accounts have been eliminated in consolidation. Historically, we had two reportable segments, Software & Subscription Services and Telematics Systems. During the first quarter of fiscal 2021, our President and Chief Executive Officer (the “CEO”), who is our current Chief Operating Decision Maker (“CODM”), realigned our operational structure into three reportable segments: Software & Subscriptions Services, Telematics Products and LoJack U.S. SVR Products. We have recast certain prior period amounts to conform to the way our CODM regularly reviews segment performance. Wind Down Plan for LoJack U.S. SVR Operations On December 16, 2020, our Board of Directors approved a plan for management to commence with the wind down of the LoJack U.S. SVR operations. This business unit has historically provided stolen vehicle recovery (SVR) products operating on a radio frequency allocated by the FCC for domestic automotive dealerships. These products and related services have been provided predominately as a hardware-based offering that no longer aligns with our core strategy. We will continue supporting our existing customers and law enforcement partners to allow sufficient time for an orderly transition out of the business. Additionally, we will continue operating and investing in our LoJack international business which operates in a subscription-based business model and is well aligned with our core SaaS strategy. In the fourth quarter of fiscal 2020, we determined that the prolonged secular decline in revenues from our legacy LoJack U.S. SVR products coupled with the slower than anticipated market penetration of our telematics solutions in the U.S. automotive dealership channel represented determinate indications of impairment. These factors were further exacerbated by the continuing unfavorable impact that the COVID-19 pandemic has had on the automotive end markets over the past several months. We recorded impairment losses during the fourth quarter of fiscal 2020 as well as the first quarter of fiscal 2021 related to goodwill, certain intangible assets and other long-lived assets. These impairment charges were related to our assessment of economic conditions, our expectations of future business conditions and trends, as well as our projected revenues, earnings, and cash flows. Based upon our decision to wind down the LoJack U.S. SVR business and our current and prior quarterly impairment assessments, we recorded impairment losses as follows (in thousands): Three Months Ended November 30, 2020 Nine Months Ended November 30, 2020 LoJack U.S. SVR Products goodwill $ 8,099 $ 12,023 Other long-lived assets 8,782 9,068 Other intangible assets: Dealer and customer relationships 640 1,005 Developed technology 478 478 Total $ 17,999 $ 22,574 Revenue Recognition We recognize revenue as follows: Products. We recognize revenue from product and accessories sales upon transfer of control of promised products to customers in an amount that reflects the transaction price, which is generally the stand-alone selling prices of the promised goods. For product shipments made on the basis of “FOB Destination” terms, revenue is recorded when the products reach the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. We record estimated commitments related to customer incentive programs as reductions of revenues. Software-as-a-Service (“SaaS”). We recognize our SaaS revenues and related cost of revenues in our Application subscriptions and other service revenues and cost of revenues on SaaS arrangements that combine various hardware devices over a stipulated service period. Our integrated SaaS-based solutions for our tracking, monitoring and recovery services provide customers with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets through our software applications. The transaction price for a typical SaaS arrangement includes the price for the customized device, installation and application subscriptions. We have applied our judgment in determining that these integrated arrangements typically represent single performance obligations satisfied over time. Accordingly, we defer the recognition of revenue for the customized devices that only function with our applications and are sold only on an integrated basis with our proprietary applicable subscriptions. Such customized devices and the application services are not sold separately. In such circumstances, the associated device related costs are recorded as deferred costs on the balance sheet. Generally, these service arrangements do not provide the customer with the right to take possession of the software supporting the subscription service at any time. Revenues from subscription services are recognized ratably on a straight-line basis over the term of the subscription. The deferred revenue and deferred cost amounts are amortized to application subscriptions and other services revenue and cost of revenues, respectively, on a straight-line basis over the estimated average in-service lives of these devices, which In certain customer arrangements, we sell devices and monitoring services separately to customers and sell similar devices on a stand-alone basis to licensees. Accordingly, we recognize revenues for the sales of the devices upon transfer of control to the customer and recognize revenue for the related monitoring services over the service period. The allocation of the transaction price is based on relative estimated stand-alone selling prices for the devices and the monitoring services. Professional Services. We also provide various professional services to customers. These include project management, engineering services and installation services, which are typically distinct from other performance obligations and are recognized as the related services are performed. For certain professional service contracts, we recognize revenue over time based on the proportion of total costs incurred to-date over the estimated cost of the contract, which is an input method. Sales taxes. We have elected to record revenue net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded within the caption until remitted to the relevant government authority. Contract Balances. Timing of revenue recognition may differ from the timing on our invoicing to customers. Contract liabilities are comprised of billings to or payments received from our customers in advance of performance under the contract. We refer to these contract liabilities as “Deferred Revenues” in the accompanying condensed consolidated financial statements. During fiscal quarter ended November 30, 2020 , we recognized $ 30.7 million in revenue from the deferred revenue balance of $ 62.2 million as of February 29, 2020 . Certain incremental costs of obtaining a contract with a customer consist of sales commissions, which are recognized on a straight-line basis over the life of the corresponding contracts. Prepaid commissions totaled $ million as of November 30, 2020 , of which $ million was classified as non-current. We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 15 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition, which reflect the immaterial corrections as discussed below, was as follows (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Revenue by type of goods and services: Telematics devices and accessories $ 58,327 $ 65,930 $ 162,376 $ 195,867 Rental income and other services 6,095 6,586 14,508 16,766 Recurring application subscriptions 23,590 24,081 74,880 66,270 Total $ 88,012 $ 96,597 $ 251,764 $ 278,903 Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 64,070 $ 71,813 $ 175,944 $ 210,018 Revenue recognized over time 23,942 24,784 75,820 68,885 Total $ 88,012 $ 96,597 $ 251,764 $ 278,903 Telematics devices and accessories presented in the table above include devices sold in customer arrangements that include both the device and monitoring services. Recurring application subscriptions revenues include the amortization for customized devices functional only with application subscriptions. Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue on our condensed consolidated balance sheets and unbilled amounts that will be recognized as revenue in future periods. As of November 30, 2020 and February 29, 2020, we have estimated remaining performance obligations for contractually committed revenues of $135.1 million and $134.5 million, respectively. As of November 30, 2020, we expect to recognize approximately 17% in fiscal 2021 and 42% in fiscal 2022. As of February 29, 2020, we expected to recognize approximately 44% in fiscal 2021 and 26% in fiscal 2022. We have utilized the practical expedient exception within ASC 606 and exclude contracts that have original durations of less than one year from the aforementioned remaining performance obligation disclosure. Revision of Previously Issued Condensed Consolidated Financial Statements. Subsequent to the issuance of the consolidated financial statements for the year ended February 29, 2020, we concluded that the presentation of revenues and cost of revenues should be adjusted to present product and service revenues and the related cost of revenues for each separately in accordance with SEC Regulation S-X, Rule 5-03(b). Additionally, certain historical information in the notes to the condensed consolidated financial statements have been revised to reflect the impact of these corrections. We have determined that the correction of these classification errors is not material to the previously issued consolidated financial statements. The following table summarizes the impact of the immaterial adjustments. Three Months Ended November 30, 2019 Nine Months Ended November 30, 2019 As Reported Adjustment As Corrected As Reported Adjustment As Corrected Revenues: Products $ 63,192 $ 2,738 $ 65,930 $ 188,782 $ 7,085 $ 195,867 Application subscriptions and other services 33,405 (2,738 ) 30,667 90,121 (7,085 ) 83,036 Total revenues $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 Cost of revenues: Products $ 42,225 $ 1,344 $ 43,569 $ 118,494 $ 3,165 $ 121,659 Application subscriptions and other services 17,488 (1,344 ) 16,144 50,444 (3,165 ) 47,279 Total cost of revenues $ 59,713 $ - $ 59,713 $ 168,938 $ - $ 168,938 Three Months Ended November 30, 2019 Nine Months Ended November 30, 2019 As Reported Adjustment As Corrected As Reported Adjustment As Corrected Revenue by type of goods and services: Telematics devices and accessories $ 66,281 $ (351 ) $ 65,930 $ 200,340 $ (4,473 ) $ 195,867 Rental income and other services 3,741 2,845 6,586 7,724 9,042 16,766 Recurring application subscriptions 26,575 (2,494 ) 24,081 70,839 (4,569 ) 66,270 Total $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 66,281 $ 5,532 $ 71,813 $ 200,340 $ 9,678 $ 210,018 Revenue recognized over time 30,316 (5,532 ) 24,784 78,563 (9,678 ) 68,885 Total $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 Cash and Cash Equivalents We consider all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of amounts due to us from sales arrangements executed in our normal business activities and are recorded at invoiced amounts. Our payment terms generally range between 30 to 60 days and we do not offer financing options. We present the aggregate accounts receivable balance net of an allowance for doubtful accounts. Generally, collateral and other security is not obtained for outstanding accounts receivable. Credit losses, if any, are recognized based on management’s evaluation of historical collection experience, customer-specific financial conditions as well as an evaluation of current industry trends and general economic conditions. Past due balances are assessed by management on a periodic basis and balances are written off when the customer’s financial condition no longer warrants pursuit of collection. Although we expect to collect amounts due, actual collections may differ from estimated amounts. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. Except for the increase in expected credit losses, we are not aware of any specific event or circumstances that would require an update to our estimates or assumptions or a revision of the carrying value of our assets or liabilities as of the date of this Quarterly Report on Form 10-Q. These estimates and assumptions may change as new events occur and additional information is obtained. As a result, actual results could differ materially from these estimates and assumptions. We analyzed the credit risk associated with our accounts receivables and lease receivables. Our historical loss rates have not shown any significant differences between customer industries or geographies, and, upon adoption of ASU 2016-13, Financial Instruments - Credit Losses Segment Information and Geographic Data The allowance for doubtful accounts totaled $4.1 million and $3.1 million as of November 30, 2020 and February 29, 2020, respectively. Goodwill and Other Long-Lived Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. We test goodwill for impairment in accordance with the provisions of ASC 350, Intangibles – Goodwill and Other, In accordance with Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment Long-lived assets to be held and used, including identifiable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets or asset group to future undiscounted net cash flows expected to be generated by the lowest level of asset group. If the assets or asset group are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for similar investment of like risk. We estimate the fair value of property and equipment based on the cost method of valuation (Level 3 determination of fair value). Significant inputs to the valuation model include estimated asset lives, obsolescence factors and estimated salvage values. The recoverability assessment with respect to each of the tradenames used in our operations requires us to estimate the fair value of the asset as of the assessment date. Such determination is made using discounted cash flow techniques (Level 3 determination of fair value). Significant inputs to the valuation model include: • future revenue and profitability projections associated with the tradename through relief of royalty approach; • estimated market royalty rates that could be derived from the licensing of our tradenames to third parties in order to establish the cash flows accruing to the benefit of the Company as a result of our ownership of our tradenames; and • rate used to discount the estimated royalty cash flow projections to their present value (or estimated fair value). We estimate the fair value of goodwill and other long-lived assets other than tradenames based on discounted cash flow techniques (Level 3 determination of fair value). Significant inputs to the valuation model include: • estimated future cash flows; • growth assumptions for future revenues as well as future gross margin rates, expense rates, capital expenditures and other estimates; and • rate used to discount our estimated future cash flow projections to their present value (or estimated fair value) based on our estimated weighted average cost of capital. Fair Value Measurements We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in our financial statements. We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly manner in an arm’s-length transaction between market participants at the measurement date. Fair value is estimated by using the following hierarchy: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Convertible Senior Notes and Capped Call Transactions We account for our convertible senior notes as separate liability and equity components. We determine the carrying amount of the liability component based on the fair value of a similar debt instrument excluding the embedded conversion option at the issuance date. The carrying amount of the equity component representing the conversion option is calculated by deducting the carrying value of the liability component from the principal amount of the notes as a whole. This difference represents a debt discount that is amortized to interest expense over the term of the notes using the effective interest rate method. The equity component of the notes is included in stockholders’ equity and is not remeasured as long as it continues to meet the conditions for equity classification. We allocate transaction costs related to the issuance of the notes to the liability and equity components using the same proportions as the initial carrying value of the notes. Transaction costs attributable to the liability component are being amortized to interest expense using the effective interest method over the respective term of the notes, and transaction costs attributable to the equity components are netted with the equity component of the note in stockholders’ equity. We account for the cost of the capped calls as a reduction to additional paid-in capital. Patent Litigation and Other Contingencies We accrue for patent litigation and other contingencies whenever we determine that an unfavorable outcome is probable and a liability is reasonably estimable. The amount of the accrual is estimated based on a review of each claim, including the type and facts of the claim and our assessment of the merits of the claim. These accruals are reviewed at least on a quarterly basis and are adjusted to reflect the impact of recent negotiations, settlements, court rulings, advice from legal counsel and other events pertaining to the case. Such accruals, if any, are recorded as general and administrative expense in our condensed consolidated statements of comprehensive loss. Although we take considerable measures to mitigate our exposure in these matters, litigation is unpredictable; however, we believe that we have valid defenses with respect to pending legal matters against us as well as adequate provisions for probable and estimable losses. All costs for legal services are expensed as incurred . Foreign Currency Translation We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) during the period. The aggregate foreign currency transaction exchange rate gain included in determining income (loss) before income taxes was $0.3 million and $1.1 million for the three and nine months ended November 30, 2020, respectively. The aggregate foreign currency transaction exchange rate gain (losses) included in determining income (loss) before income taxes was $1.2 million and $(0.1) million for the three and nine months ended November 30, 2019, respectively. Other Comprehensive Income (Loss) Other comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss) (“OCI”). OCI refers to revenue, expenses and gains and losses that under U.S. GAAP are recorded as an element of stockholders’ equity and excluded from net income (loss). Our OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-13, Financial Instruments - Credit Losses In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Recently Issued Accounting Pronouncements, Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 9 Months Ended |
Nov. 30, 2020 | |
Cash And Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS The following tables summarize our financial instrument assets (in thousands): As of November 30, 2020 Balance Sheet Classification of Fair Value Unrealized Cash and Adjusted Gains Fair Cash Other Cost (Losses) Value Equivalents Assets Cash $ 30,900 $ — $ 30,900 $ 30,900 $ — Level 1: Money market funds 17,792 — 17,792 17,792 — Mutual funds (1) 2,127 357 2,484 — 2,484 Level 2: Repurchase agreements 43,000 — 43,000 43,000 — Total $ 93,819 $ 357 $ 94,176 $ 91,692 $ 2,484 As of February 29, 2020 Balance Sheet Classification of Fair Value Unrealized Cash and Adjusted Gains Fair Cash Other Cost (Losses) Value Equivalents Assets Cash $ 31,895 $ — $ 31,895 $ 31,895 $ — Level 1: Money market funds 5,508 — 5,508 5,508 — Mutual funds (1) 3,926 26 3,952 — 3,952 Level 2: Repurchase agreements 60,000 — 60,000 60,000 — Corporate bonds 10,001 — 10,001 10,001 — Total $ 111,330 $ 26 $ 111,356 $ 107,404 $ 3,952 (1) Amounts represent various equities, bond and money market mutual funds that are held in an irrevocable “Rabbi Trust” for payment obligations to non-qualified deferred compensation plan participants. In addition to the mutual funds above, our “Rabbi Trust” also included Corporate-Owned Life Insurance (COLI) starting in fiscal 2020. As of November 30, 2020, the cash surrender value of COLI was $4.5 million. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Nov. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3 - INVENTORIES Inventories consist of the following (in thousands): November 30, February 29, 2020 2020 Raw materials $ 13,976 $ 18,118 Finished goods 18,186 18,660 $ 32,162 $ 36,778 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Nov. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS Other intangible assets consist of the following (in thousands): Gross Accumulated Amortization Net Useful Life Feb. 29, 2020 Additions & Adjustments, net (1) Impair- ment Nov. 30, 2020 Feb. 29, 2020 Expense Nov. 30, 2020 Feb. 29, 2020 Nov. 30, 2020 Developed technology 4-6 years $ 27,363 51 (478 ) $ 26,936 $ 21,437 $ 2,269 $ 23,706 $ 5,926 $ 3,230 Tradenames 10 years 30,093 74 — 30,167 16,303 1,591 17,894 13,790 12,273 Customer lists 4-7 years 25,304 — — 25,304 22,903 48 22,951 2,401 2,353 Dealer and customer relationships 10-15 years 34,139 (3 ) (1,005 ) 33,131 10,753 1,656 12,409 23,386 20,722 Patents 5 years 589 — — 589 197 27 224 392 365 $ 117,488 $ 122 $ (1,483 ) $ 116,127 $ 71,593 $ 5,591 $ 77,184 $ 45,895 $ 38,943 (1) Amounts also include any net changes in intangible asset balances for the periods presented that resulted from foreign currency translations. Intangible assets with finite lives are amortized on a straight-line basis over the expected period to be benefited by future cash flows. We monitor and assess these assets for impairment on a periodic basis. Our assessment includes various new product lines and services, which leverage the existing intangible assets as well as consideration of historical and projected revenues and cash flows. Based upon our decision to commence with the wind down of the LoJack U.S. SVR business, we performed an assessment of the carrying amount of the related intangible assets supporting these products. Our assessment of the future cash flows generated by these assets concluded that an impairment loss was present and recorded an impairment loss of $0.5 million for Developed technology and $1.0 million for U.S. dealer relationships during nine months ended November 30, 2020. Estimated future amortization expense as of November 30, 2020 is as follows (in thousands): 2021 (remainder) $ 1,554 2022 5,533 2023 5,381 2024 4,537 2025 4,422 Thereafter 17,516 $ 38,943 Changes in goodwill are as follows (in thousands): Software & Subscription Services Telematics Products LoJack U.S. SVR Products Total Balance as of February 29, 2020 $ 55,132 $ 39,180 $ 12,023 $ 106,335 Impairment loss — — (12,023 ) (12,023 ) Effect of exchange rate change on goodwill 156 — — 156 Balance as of November 30, 2020 $ 55,288 $ 39,180 $ - $ 94,468 In the first quarter of fiscal 2021, we recorded a goodwill impairment loss of $3.9 million related to the LoJack U.S. SVR Products reporting unit. An impairment loss equal to the remaining U.S. SVR Products goodwill balance of $8.1 million was recorded in the third quarter of fiscal 2021 in connection with our decision to wind down the LoJack U.S. SVR Products business (Note 1). |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Nov. 30, 2020 | |
Other Assets Noncurrent Disclosure [Abstract] | |
OTHER ASSETS | NOTE 5 – OTHER ASSETS Other assets consist of the following (in thousands): November 30, February 29, 2020 2020 Deferred cost $ 5,090 $ 7,818 Deferred compensation plan assets 6,958 6,041 Lease receivables, non-current 9,364 5,992 Prepaid commissions 2,747 2,318 Other 2,357 2,599 $ 26,516 $ 24,768 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 9 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | NOTE 6 – FINANCING ARRANGEMENTS The following table provides a summary of our debt as of November 30, 2020 and February 29, 2020 (in thousands): Maturity Effective November 30, February 29, Date Interest Rate 2020 2020 2020 Convertible Notes, 1.625% fixed rate May 15, 2020 6.20 % $ - $ 27,599 2025 Convertible Notes, 2.00% fixed rate August 1, 2025 7.56 % 230,000 230,000 Due to factors 2020 - 2024 4.70 % 11,023 14,371 Total term debt 241,023 271,970 Unamortized discount and issuance costs (55,587 ) (61,763 ) Less: Current portion of long-term term debt (4,790 ) (33,119 ) Long-term debt, net of current portion $ 180,646 $ 177,088 The effective interest rates for the convertible notes include the interest on the notes and amortization of the discount. As of November 30, 2020 and February 29, 2020, the fair value of the 2025 Convertible Notes was $191 million and $197 million, respectively, based on Level 2 inputs. 2025 Convertible Notes In July 2018, we issued debt of $230.0 million aggregate principal amount of convertible senior unsecured notes due in 2025 (“2025 Convertible Notes”). These notes require semi-annual interest payments at a rate of 2.00% until maturity, conversion, redemption or repurchase, which will be no later than August 1, 2025. We may redeem the notes at our option at any time on or after August 6, 2022 at a cash redemption price equal to the principal amount plus accrued interest, but only if the last reported sale price per share of our stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. The 2025 Convertible Notes are convertible into cash, shares of our common stock or a combination of both, at our election, based on an initial conversion price of $30.7450. Holders may convert their 2025 Convertible Notes at their option upon the occurrence of certain events, as defined in the 2025 Indenture. Approximately $51.9 million, net of tax, was allocated to additional paid-in capital upon issuance of these notes. In July 2018, in connection with the 2025 Convertible Notes, we entered into capped call transactions with certain option counterparties who were initial purchasers of the 2025 Convertible Notes. The capped call transactions are expected to reduce the potential dilution of earnings per share upon conversion of the 2025 Convertible Notes. Under the capped call transactions, we purchased options relating to 7.48 million shares of common stock underlying the notes, with a strike price equal to the conversion price of the notes and with a cap price equal to $41.3875. We paid $21.2 million for the note hedges and as a result, approximately $15.9 million, net of tax, was recorded as a reduction to additional paid-in capital within stockholders’ equity. 2020 Convertible Notes In October and November 2019, we repurchased approximately $94.9 million in aggregate principal amount of the 1.625% convertible senior unsecured notes for $94.7 million, which had a carrying value of $92.3 million, resulting in a loss on extinguishment of debt of $2.4 million. On May 15, 2020, we repaid the remaining principal balance of $27.6 million of the 1.625% convertible senior unsecured notes issued in May 2015. Revolving Credit Facility On March 30, 2018, we entered into a revolving credit facility with JP Morgan Chase Bank, N.A. that provides for borrowings up to $50.0 million. This revolving credit facility was extended on March 27, 2020 with a new maturity date of March 30, 2022. At our election, the borrowings under this revolving credit facility bear interest at (a) for base rate loans, a base rate based on the highest of (i) 0%, (ii) the rate of interest publicly announced by JP Morgan Chase Bank, N.A. (the “Agent”) as its prime rate in effect at its principal office in New York City, (iii) the overnight bank funding rate as determined by the Federal Reserve Bank of New York plus 0.50% and (iv) the LIBOR-based rate for a one-month interest period on such day plus 1%; or (b) for Eurodollar loans, the higher of (x) 1.00% and (y) the LIBOR-based rate for one, three or six months (as selected by the Company) for Eurodollar deposits. An applicable margin is added based on the Company’s senior leverage ratio, ranging from 1.50% to 2.00% for base rate loans, and from 2.50% to 3.00% for Eurodollar loans. We will also pay a commitment fee based on our senior leverage ratio ranging from 0.40% to 0.50%, payable quarterly in arrears, on the average daily unused amount of the Credit Facility. Amounts owing under the credit agreement and related credit documents are guaranteed by the Company and certain of its subsidiaries. We have also granted security interests in substantially all of our respective assets to secure these obligations. The net proceeds available under the revolving credit facility can be used for repayment of existing debt, working capital and general corporate purposes. On November 19, 2020, we repaid the $20.0 million borrowings outstanding under the revolving credit facility and accrued interest of $0.1 million. There were no borrowings outstanding under this revolving credit facility at November 30, 2020. The revolving credit facility contains certain negative and affirmative covenants including financial covenants that require us to maintain a minimum level of earnings before interest, income taxes, depreciation, amortization and other non-cash charges (Adjusted EBITDA) to interest ratio, a minimum senior indebtedness ratio and a total indebtedness coverage ratio, all measured on a quarterly basis. As of November 30, 2020, we were in compliance with our covenants under the revolving credit facility. Synovia Revenue Assignments In conjunction with the acquisition of Synovia on April 12, 2019, we assumed the rights and obligations under certain revenue assignment arrangements with several financial institutions (the “Factors”). Pursuant to the terms of the arrangements, Synovia sold to the Factors rights to all future revenues of certain subscription contracts on a non-recourse basis for credit approved accounts. These arrangements with the Factors met the criteria in ASC 470-10-25, Sales of Future Revenues or Various Other Measures of Income, Business Combination |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 9 Months Ended |
Nov. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | NOTE 7 – RESTRUCTURING ACTIVITIES Since fiscal 2019, we executed under a plan to capture certain synergies and cost savings related to streamlining our global operations and sales organization, as well as rationalize certain leased properties that were not fully occupied. Our plan is aligned with our strategy to integrate the global sales organization and further outsource manufacturing functions in order to drive operational efficiency, increase supplier geographic diversity, and reduce operating expenses. To date, total restructuring charges were $15.0 million, comprised of $9.1 million in severance and employee related costs, and $5.9 million for vacant office and manufacturing facility space. Restructuring charges related to vacant office and manufacturing facility space were due primarily to the vacancy in Canton, Massachusetts of $3.3 million, which was sub-leased starting in May 2020 Operating lease right-of-use assets For the three and nine months ended November 30, 2020, total restructuring charges were $0.1 million and $2.6 million, respectively. Total restructuring charges incurred to date in fiscal 2021 were comprised of $2.3 million in severance and employee related costs, which included $0.9 million stock-based compensation, and $0.3 million for vacant facilities. The restructuring liabilities related to personnel were included in Accrued payroll and employee benefits The following table summarizes the charges resulting from the implementation of the restructuring plan (in thousands): Three Months Ended November 30, 2020 Three Months Ended November 30, 2019 Personnel Facilities Total Personnel Facilities Total Cost of revenue $ (28 ) $ 145 $ 117 $ 100 $ - $ 100 Research and development - - - 97 - 97 Selling and marketing 4 - 4 454 - 454 General and administrative (29 ) - (29 ) 197 - 197 Total $ (53 ) $ 145 $ 92 $ 848 $ - $ 848 Nine Months Ended November 30, 2020 Nine Months Ended November 30, 2019 Personnel Facilities Total Personnel Facilities Total Cost of revenue $ 245 $ 319 $ 564 $ 449 $ 1,210 $ 1,659 Research and development - - - 97 - 97 Selling and marketing 34 - 34 901 - 901 General and administrative 1,953 - 1,953 463 - 463 Total $ 2,232 $ 319 $ 2,551 $ 1,910 $ 1,210 $ 3,120 The following table summarizes the activity resulting from the implementation of the restructuring plan within other current and non-current liabilities (in thousands): Personnel Facilities Total Restructuring liabilities as of February 29, 2020 $ 2,383 $ 359 $ 2,742 Charges 2,232 319 2,551 Payments (2,522 ) (678 ) (3,200 ) Restructuring liabilities as of November 30, 2020 $ 2,093 $ 0 $ 2,093 As described in Note 1, our Board of Directors approved a plan to commence the wind down of the LoJack U.S. SVR operations as the products and services currently provided no longer aligns with our core strategy. Currently, we expect to incur up to $2.0 million nonrecurring cash charge related to severance and personnel costs in the fourth quarter. Additionally, we expect that we will incur contract termination and other related costs as we proceed with the wind down, which we are unable to estimate at this time. |
LEASES
LEASES | 9 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 8 – LEASES We have various non-cancelable operating leases for our offices in California, Texas, Massachusetts, Indiana, Minnesota and Virginia in the United States, and Italy, Mexico and the United Kingdom. We also have various non-cancelable operating leases for towers and vehicles throughout the United States, Italy and Mexico. These leases expire at various times through 2028. Certain lease agreements contain renewal options, rent abatement, and escalation clauses that are factored into our determination of lease payments when appropriate. The table below presents lease-related assets and liabilities recorded on the condensed consolidated balance sheet (in thousands): Classification November 30, 2020 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 17,653 Liabilities Operating lease liabilities (current) Other current liabilities $ 6,148 Operating lease liabilities (noncurrent) Operating lease liabilities 19,217 Total lease liabilities $ 25,365 Lease Costs The following lease costs were included in our condensed consolidated statements of comprehensive loss as follows (in thousands): For the Three Months Ended November 30, For the Nine Months Ended November 30, 2020 2019 2020 2019 Operating lease cost $ 1,763 $ 663 $ 5,127 $ 4,636 Short-term lease cost 59 112 238 676 Variable lease cost 108 116 337 189 Total lease cost $ 1,930 $ 891 $ 5,702 $ 5,501 Supplemental Information The table below presents supplemental information related to operating leases during the nine months ended November 30, 2020 (in thousands, except weighted-average information): Cash paid for amounts included in the measurement of operating lease liabilities $ 5,682 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,425 Weighted average remaining lease term 4.71 Weighted average discount rate 5.17 % Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of November 30, 2020 Remainder of 2021 $ 2,406 2022 7,115 2023 6,598 2024 4,895 2025 3,113 Thereafter 2,900 Total minimum lease payments 27,027 Less imputed interest (1,662 ) Present value of future minimum lease payments 25,365 Less current obligations under leases (6,148 ) Long-term lease obligations $ 19,217 In connection with the wind down of LoJack U.S. SVR operations (further described in Note 1), we reassessed the lease periods and related renewal assumptions for tower leases associated with this business to better align with our current transition period projections. As a result, we recorded an estimated reduction of $4.4 million to right-of-use assets and related lease liabilities as of November 30, 2020. These estimates may change in future periods as we proceed with the wind down. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9 - INCOME TAXES We use the assets and liabilities method when accounting for income taxes. Under this method, deferred income tax asset and liabilities are recognized for 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 the 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. We evaluate our estimated annual effective tax rate (“ETR”) on a quarterly basis based on current and forecasted operating results. The relationship between our income tax provision or benefit and our pretax book income or loss can vary significantly from period to period considering, among other factors, the overall level of pretax book income or loss and changes in the blend of jurisdictional income or loss that is taxed at different rates and changes in valuation allowances. The income tax expense of $0.3 million and $0.8 million for the three and nine months ended November 30, 2020, respectively, was primarily attributable to one of our foreign subsidiaries. Any income tax benefit associated with the pre-tax loss for the quarter ended November 30, 2020, resulting primarily from the U.S. jurisdiction, is offset by a full valuation allowance. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 10 - EARNINGS PER SHARE Basic earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. The calculation of the basic and diluted loss per share of common stock is as follows (in thousands, except per share value): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Net loss $ (23,680 ) $ (7,415 ) $ (47,580 ) $ (23,477 ) Basic and diluted weighted average number of common shares outstanding 34,599 33,822 34,292 33,589 Loss per share: Basic $ (0.68 ) $ (0.22 ) $ (1.39 ) $ (0.70 ) Diluted $ (0.68 ) $ (0.22 ) $ (1.39 ) $ (0.70 ) All outstanding options and restricted stock units for the three and nine months ended November 30, 2020 and 2019 were excluded from the computation of diluted earnings per share because we reported a net loss for each of these periods and the effect of inclusion would be antidilutive. We have the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the 2025 Convertible Notes. It is our intent to settle the principal amount of these notes with cash, and therefore, we use the treasury stock method for calculating any potential dilutive effect of the conversion option on diluted earnings (loss) per share. From the time of the issuance of the notes, the average market price of our common stock has been less than the initial conversion price of the notes, and consequently no shares have been included in diluted earnings per share for the conversion value of the notes. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 11 – STOCKHOLDERS’ EQUITY Stock-based compensation expense is included in the following captions of the condensed consolidated statements of comprehensive loss (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Cost of revenues $ 184 $ 221 $ 562 $ 558 Research and development 798 723 2,167 1,769 Selling and marketing 770 1,058 2,035 2,709 General and administrative 1,278 1,650 3,860 4,342 Restructuring - - 875 - $ 3,030 $ 3,652 $ 9,499 $ 9,378 Changes in our outstanding stock options during the nine months ended November 30, 2020 were as follows (options in thousands): Number of Options Weighted Average Exercise Price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding at February 29, 2020 1,071 $ 14.65 6.2 Granted — — Exercised (70 ) 4.03 Forfeited or expired (152 ) 17.52 Outstanding at November 30, 2020 849 $ 15.02 5.8 $ 408 Exercisable at November 30, 2020 578 $ 14.37 4.8 $ 408 Changes in our outstanding restricted stock shares, performance stock units (“PSUs”) and restricted stock units (“RSUs”) during the nine months ended November 30, 2020 were as follows (restricted shares, PSUs and RSUs in thousands): Number of Restricted Shares, PSUs and RSUs Weighted Average Grant Date Fair Value Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at February 29, 2020 2,215 $ 14.47 Granted 1,856 7.94 Vested (636 ) 15.07 207 Forfeited (277 ) 12.44 Outstanding at November 30, 2020 3,158 $ 10.69 As of November 30, 2020, there was $25.9 million of total unrecognized stock-based compensation cost related to outstanding nonvested equity awards that is expected to be recognized as an expense over a weighted-average remaining vesting period of 3.7 years. |
CONCENTRATION OF RISK
CONCENTRATION OF RISK | 9 Months Ended |
Nov. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
CONCENTRATION OF RISK | NOTE 12 - CONCENTRATION OF RISK Significant Customers We sell telematics products and services to large global enterprises in the industrial equipment, transportation and automotive market verticals. One customer in the heavy equipment industry accounted for 19% and 16% of our consolidated revenue for the three and nine months ended November 30, 2020, respectively, and 14% and 13% of our consolidated revenue for the three and nine months ended November 30, 2019, respectively. The same customer accounted for 19% Significant Suppliers We purchase a significant amount of our inventory from certain manufacturers or suppliers including components, assemblies and electronic manufacturing parts. These suppliers are located in Asia, including China. The inventory is purchased under standard supply agreements that outline the terms of the product delivery. The title and risk of loss of the product generally pass to us upon shipment from the manufacturers’ plant or warehouse. For the three and nine months ended November 30, 2020, four of our suppliers accounted for approximately 58% and 61% of our total inventory purchases, respectively. For the three and nine months ended November 30, 2019, three of our suppliers accounted for approximately 42% and 46% of total inventory purchases, respectively. As identified below, some of these manufacturers accounted for more than 10% of our accounts payable as follows (rounded): November 30, February 29, 2020 2020 Accounts payable: Supplier A 7 % 11 % Supplier B 14 % 11 % Supplier C 14 % 8 % We are currently reliant upon these suppliers for products. Although we believe that we can obtain products from other sources, the loss of a significant supplier could have a material impact on our financial condition and results of operations as the products that are being purchased may not be available on similar terms from another supplier. |
PRODUCT WARRANTIES
PRODUCT WARRANTIES | 9 Months Ended |
Nov. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
PRODUCT WARRANTIES | NOTE 13 - PRODUCT WARRANTIES All products have a one- or two-year Other Current Liabilities Nine Months Ended November 30, 2020 2019 Balance at beginning of period $ 987 $ 1,399 Charged to costs and expenses 2,354 657 Deductions (2,157 ) (703 ) Balance at end of period $ 1,184 $ 1,353 |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 9 Months Ended |
Nov. 30, 2020 | |
Other Financial Information [Abstract] | |
OTHER FINANCIAL INFORMATION | NOTE 14 – OTHER FINANCIAL INFORMATION Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): November 30, February 29, 2020 2020 Operating lease liabilities $ 6,148 $ 4,662 Taxes payable 2,487 2,266 Warranty reserves 1,184 987 Customer deposit 2,924 1,377 Litigation reserve 2,200 1,500 Interest payable 1,532 481 Other (1) 4,641 4,880 $ 21,116 $ 16,153 (1) Amount represents accruals for various operating expense such as professional fees, vendor incentives and other estimates that are expected to be paid within the next 12 months. Other non-current liabilities consist of the following (in thousands): November 30, February 29, 2020 2020 Deferred revenue $ 24,214 $ 27,452 Deferred compensation plan liability 6,965 5,919 Other 4,079 1,673 $ 35,258 $ 35,044 Supplemental Statement of Comprehensive Loss Information Interest expense consists of the following (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Interest expense on 2020 Convertible Notes: Stated interest at 1.625% per annum $ - $ 356 $ 93 $ 1,352 Amortization of discount and issue costs - 1,038 289 3,989 - 1,394 382 5,341 Interest expense on 2025 Convertible Notes: Stated interest at 2.00% 1,150 1,150 3,463 3,476 Amortization of discount and issue costs 2,374 2,203 7,014 6,531 3,524 3,353 10,477 10,007 Other interest expense 356 240 955 650 Total interest expense $ 3,880 $ 4,987 $ 11,814 $ 15,998 Supplemental Cash Flow Information “Net cash provided by operating activities” includes cash payments for interest expense and income taxes as follows (in thousands): Nine Months Ended November 30, 2020 2019 Cash payments for interest and income taxes: Interest expense paid $ 2,983 $ 4,368 Income tax paid, net of refunds $ 653 $ 749 |
SEGMENT INFORMATION AND GEOGRAP
SEGMENT INFORMATION AND GEOGRAPHIC DATA | 9 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND GEOGRAPHIC DATA | NOTE 15 - SEGMENT INFORMATION AND GEOGRAPHIC DATA Prior to the fourth quarter of fiscal 2020, our two reportable segments, Software & Subscription Services and Telematics Systems, also represented our two reporting units for goodwill impairment testing. During the fourth quarter of fiscal 2020, our former CODM changed our reporting structure, resulting in four reporting units with two reporting units under each of our reportable segments. During the first quarter of fiscal 2021, our President and Chief Executive Officer, who is our current CODM, realigned our operational structure into three reportable segments: Software & Subscriptions Services, Telematics Products and LoJack U.S. SVR Products. We have recast certain prior period amounts to conform to the way our CODM regularly reviews segment performance. Our Software & Subscription Services segment offers cloud-based, application enablement and telematics service platforms that facilitate integration of our own applications, as well as those of third parties, through open Applications Programing Interfaces (“APIs”) to deliver full-featured IoT solutions to a wide range of customers and markets. Our scalable proprietary SaaS offerings enable rapid and cost-effective deployment of high-value solutions for customers all around the globe. Software & Subscription Services segment revenues include SaaS, professional services, devices sold with tracking, monitoring and recovery services, accessories, and amortization of deferred revenue for customized devices functional only with application subscriptions that are not sold separately. Our Telematics Products segment offers a portfolio of wireless data communications products, which includes asset tracking units, mobile telematics devices, fixed and mobile wireless gateways and routers. These wireless networking devices underpin a wide range of our own, as well as third-party software and service solutions worldwide and are critical for applications demanding secure, reliable and business-critical communications. Telematics Product segment revenues consist primarily of stand-alone product sales. Our LoJack U.S. SVR Product segment represents the portfolio of security and protection products and services for tracking and recovering cars, trucks and other valuable mobile assets in the United States. LoJack U.S. SVR Product segment revenues consist primarily of stand-alone product sales. As previously described in Note 1, our Board of Directors approved a plan for management to commence a process to wind down LoJack U.S. SVR operations. Segment information is as follows (in thousands): Three Months Ended November 30, 2020 Three Months Ended November 30, 2019 Reportable Segments Reportable Segments Software & Subscription Services Telematics Products LoJack U.S. SVR Products Corporate Expenses Total Software & Subscription Services Telematics Products LoJack U.S. SVR Products Corporate Expenses Total Revenues $ 34,396 $ 44,071 $ 9,545 $ 88,012 $ 33,405 $ 51,895 $ 11,297 $ 96,597 Gross profit $ 17,266 $ 13,804 $ 3,935 $ 35,005 $ 15,928 $ 16,116 $ 4,840 $ 36,884 Gross margin 50 % 31 % 41 % 40 % 48 % 31 % 43 % 38 % Adjusted EBITDA $ 8,927 $ 766 $ 87 $ (1,009 ) $ 8,771 $ 7,254 $ 4,700 $ (182 ) $ (867 ) $ 10,905 Nine Months Ended November 30, 2020 Nine Months Ended November 30, 2019 Operating Segments Operating Segments Software & Subscription Services Telematics Products LoJack U.S. SVR Products Corporate Expenses Total Software & Subscription Services Telematics Products LoJack U.S. SVR Products Corporate Expenses Total Revenues $ 96,121 $ 130,342 $ 25,301 $ 251,764 $ 90,121 $ 152,027 $ 36,755 $ 278,903 Gross profit $ 47,583 $ 39,885 $ 9,400 $ 96,868 $ 39,688 $ 54,344 $ 15,933 $ 109,965 Gross margin 50 % 31 % 37 % 38 % 44 % 36 % 43 % 39 % Adjusted EBITDA $ 22,854 $ 2,413 $ (1,259 ) $ (3,327 ) $ 20,681 $ 13,575 $ 17,904 $ 1,121 $ (3,479 ) $ 29,121 The amount shown for each period in the “Corporate Expenses” column above consists of expenses that are not allocated to the business segments. These non-allocated corporate expenses include salaries and benefits of certain corporate staff and expenses such as audit fees, investor relations, stock listing fees, director and officer liability insurance, and director fees and expenses. Our CODM evaluates each segment based on earnings before interest, taxes, depreciation, amortization and certain other charges (“Adjusted EBITDA”) and we therefore consider Adjusted EBITDA to be a primary measure of operating performance of our reportable segments. The adjustments to our net income (losses) prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) to calculate Adjusted EBITDA are itemized below (in thousands): Three Months Ended November 30, Nine Months Ended November 30, 2020 2019 2020 2019 Net loss $ (23,680 ) $ (7,415 ) $ (47,580 ) $ (23,477 ) Investment income (584 ) (1,108 ) (1,282 ) (4,445 ) Interest expense 3,880 4,987 11,814 15,998 Income tax provision (benefit) 319 (2,637 ) 825 (6,236 ) Depreciation 5,025 5,018 15,008 14,054 Amortization of intangible assets 1,855 3,325 5,591 9,683 Stock-based compensation 3,030 3,652 8,624 9,378 Loss on extinguishment of debt — 2,408 — 2,408 Impairment loss 17,999 — 22,574 — Restructuring charges 92 848 2,551 3,120 Non-recurring legal expenses 205 957 1,168 5,541 Acquisition and integration related expenses — 382 — 1,572 Other 630 488 1,388 1,525 Adjusted EBITDA $ 8,771 $ 10,905 $ 20,681 $ 29,121 Our CODM does not obtain identifiable assets by segment because our businesses share resources, functions and facilities. We do not have significant long-lived assets outside the United States. Revenues by geographic area are as follows (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 United States $ 60,823 $ 69,961 $ 171,318 $ 201,678 Europe, Middle East and Africa 13,771 14,818 45,214 41,625 South America 7,349 5,518 19,078 16,494 Asia and Pacific Rim 4,034 3,044 8,077 7,394 All other 2,035 3,256 8,077 11,712 $ 88,012 $ 96,597 $ 251,764 $ 278,903 Revenues by geographic area are based upon the country of billing. The geographic location of distributors and OEM customers may be different from the geographic location of the ultimate end users of the products and services provided by us. No single non-U.S. country accounted for more than 10% of our revenue in the three and nine months ended November 30, 2020 and 2019. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended |
Nov. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | NOTE 16 – LEGAL PROCEEDINGS Omega patent infringement claim On May 6, 2020, we filed our Form 10-K for the fiscal year ended February 29, 2020 which disclosed the current status of the Omega patent infringement claim. In summary, on March 20, 2020, the U.S. District Court for the Middle District of Florida (the “Trial Court”) denied our motion for judgement as a matter of law (“JMOL”), a new trial, and remittitur of damages. Also, on March 20, 2020, the Trial Court denied Omega’s motion for a new trial on willfulness. On April 1, 2020, the Trial Court denied Omega’s motion to enhance the royalty rate beyond the jury’s award of $5 per unit and motion to conduct post-trial discovery on CalAmp’s other OBD-II compliant LMUs. On April 3, 2020, the Trial Court denied Omega’s final motion regarding infringement of the VPODs. Omega’s cross-appeal reply brief, which will be the final brief in the appeal, is due December 21, 2020. We also initiated ex parte In connection with this claim, we have accrued our best estimate of the probable liability based on reasonable royalty rates for similar technologies. It is reasonably possible that the judgement and amounts described above could be upheld, which would exceed the amounts we have accrued. Other matters In addition to the foregoing matters, from time to time as a normal consequence of doing business, various claims and litigation may be asserted or commenced against us. In particular, we may receive claims concerning contract performance or claims that our products or services infringe the intellectual property of third parties which are in the ordinary course of business. While the outcome of any such claims or litigation cannot be predicted with certainty, management does not believe that the outcome of such matters existing at the present time would have a material adverse effect on our condensed consolidated results of operations, financial condition or cash flows. |
DESCRIPTION OF BUSINESS, BASI_2
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business CalAmp Corp. (referred to herein as “CalAmp”, “the Company”, “we”, “our”, or “us”) is a global technology solutions pioneer leading transformation to a mobile connected economy. We help reinvent businesses and improve lives around the globe with technology solutions that streamline complex mobile Internet of Things (“IoT”) deployments through wireless connectivity solutions and derived data intelligence. Our software applications, scalable cloud services, and intelligent devices collect and assess business-critical data anywhere in the world from industrial machines, commercial and passenger vehicles, their drivers and contents. We are a global organization that is headquartered in Irvine, California. In March 2020, the World Health Organization declared the spread of COVID-19 as a pandemic. The full impact of the COVID-19 outbreak remains uncertain as of the time of this report given the diversity of rules and regulations in the U.S. and other countries in which we operate. The pandemic has resulted in travel restrictions, prohibitions of non-essential activities, disruption and shutdown of businesses and greater uncertainty in global financial markets. The effect of the outbreak may continue to impact our operating results depending on the severity of the pandemic and the actions taken or to be taken by governments and private businesses in relation to its containment. We cannot predict the extent to which the COVID-19 outbreak will negatively impact our business or operating results at this time. We have considered all known and reasonably available information that existed as of November 30, 2020, in making accounting judgments, estimates and disclosures. We are monitoring the potential effects of the health care related and economic conditions of COVID-19 in assessing certain matters including (but not limited to) supply chain disruptions, decreases in customer demand for our products and services, potential longer-term effects on our customer and distribution channels particularly in the U.S. and relevant end markets as well as other developments. If the impact results in longer-term closures of businesses and economic recessionary conditions, we may recognize additional material asset impairments, charges for uncollectible accounts receivable in future periods and incur additional restructuring charges. Certain notes and other information included in the audited financial statements in our Annual Report on Form 10-K for the fiscal year ended February 29, 2020 are condensed in or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with our 2020 Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission (“SEC”) on May 6, 2020. In the opinion of our management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly our financial position at November 30, 2020 and our results of operations for the three and nine months ended November 30, 2020 and 2019. The results of operations for such periods are not necessarily indicative of results to be expected for the full fiscal year ending February 28, 2021. All intercompany transactions and accounts have been eliminated in consolidation. Historically, we had two reportable segments, Software & Subscription Services and Telematics Systems. During the first quarter of fiscal 2021, our President and Chief Executive Officer (the “CEO”), who is our current Chief Operating Decision Maker (“CODM”), realigned our operational structure into three reportable segments: Software & Subscriptions Services, Telematics Products and LoJack U.S. SVR Products. We have recast certain prior period amounts to conform to the way our CODM regularly reviews segment performance. |
Wind Down Plan for LoJack U.S. SVR Operations | Wind Down Plan for LoJack U.S. SVR Operations On December 16, 2020, our Board of Directors approved a plan for management to commence with the wind down of the LoJack U.S. SVR operations. This business unit has historically provided stolen vehicle recovery (SVR) products operating on a radio frequency allocated by the FCC for domestic automotive dealerships. These products and related services have been provided predominately as a hardware-based offering that no longer aligns with our core strategy. We will continue supporting our existing customers and law enforcement partners to allow sufficient time for an orderly transition out of the business. Additionally, we will continue operating and investing in our LoJack international business which operates in a subscription-based business model and is well aligned with our core SaaS strategy. In the fourth quarter of fiscal 2020, we determined that the prolonged secular decline in revenues from our legacy LoJack U.S. SVR products coupled with the slower than anticipated market penetration of our telematics solutions in the U.S. automotive dealership channel represented determinate indications of impairment. These factors were further exacerbated by the continuing unfavorable impact that the COVID-19 pandemic has had on the automotive end markets over the past several months. We recorded impairment losses during the fourth quarter of fiscal 2020 as well as the first quarter of fiscal 2021 related to goodwill, certain intangible assets and other long-lived assets. These impairment charges were related to our assessment of economic conditions, our expectations of future business conditions and trends, as well as our projected revenues, earnings, and cash flows. Based upon our decision to wind down the LoJack U.S. SVR business and our current and prior quarterly impairment assessments, we recorded impairment losses as follows (in thousands): Three Months Ended November 30, 2020 Nine Months Ended November 30, 2020 LoJack U.S. SVR Products goodwill $ 8,099 $ 12,023 Other long-lived assets 8,782 9,068 Other intangible assets: Dealer and customer relationships 640 1,005 Developed technology 478 478 Total $ 17,999 $ 22,574 |
Revenue Recognition | Revenue Recognition We recognize revenue as follows: Products. We recognize revenue from product and accessories sales upon transfer of control of promised products to customers in an amount that reflects the transaction price, which is generally the stand-alone selling prices of the promised goods. For product shipments made on the basis of “FOB Destination” terms, revenue is recorded when the products reach the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. We record estimated commitments related to customer incentive programs as reductions of revenues. Software-as-a-Service (“SaaS”). We recognize our SaaS revenues and related cost of revenues in our Application subscriptions and other service revenues and cost of revenues on SaaS arrangements that combine various hardware devices over a stipulated service period. Our integrated SaaS-based solutions for our tracking, monitoring and recovery services provide customers with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets through our software applications. The transaction price for a typical SaaS arrangement includes the price for the customized device, installation and application subscriptions. We have applied our judgment in determining that these integrated arrangements typically represent single performance obligations satisfied over time. Accordingly, we defer the recognition of revenue for the customized devices that only function with our applications and are sold only on an integrated basis with our proprietary applicable subscriptions. Such customized devices and the application services are not sold separately. In such circumstances, the associated device related costs are recorded as deferred costs on the balance sheet. Generally, these service arrangements do not provide the customer with the right to take possession of the software supporting the subscription service at any time. Revenues from subscription services are recognized ratably on a straight-line basis over the term of the subscription. The deferred revenue and deferred cost amounts are amortized to application subscriptions and other services revenue and cost of revenues, respectively, on a straight-line basis over the estimated average in-service lives of these devices, which In certain customer arrangements, we sell devices and monitoring services separately to customers and sell similar devices on a stand-alone basis to licensees. Accordingly, we recognize revenues for the sales of the devices upon transfer of control to the customer and recognize revenue for the related monitoring services over the service period. The allocation of the transaction price is based on relative estimated stand-alone selling prices for the devices and the monitoring services. Professional Services. We also provide various professional services to customers. These include project management, engineering services and installation services, which are typically distinct from other performance obligations and are recognized as the related services are performed. For certain professional service contracts, we recognize revenue over time based on the proportion of total costs incurred to-date over the estimated cost of the contract, which is an input method. Sales taxes. We have elected to record revenue net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded within the caption until remitted to the relevant government authority. Contract Balances. Timing of revenue recognition may differ from the timing on our invoicing to customers. Contract liabilities are comprised of billings to or payments received from our customers in advance of performance under the contract. We refer to these contract liabilities as “Deferred Revenues” in the accompanying condensed consolidated financial statements. During fiscal quarter ended November 30, 2020 , we recognized $ 30.7 million in revenue from the deferred revenue balance of $ 62.2 million as of February 29, 2020 . Certain incremental costs of obtaining a contract with a customer consist of sales commissions, which are recognized on a straight-line basis over the life of the corresponding contracts. Prepaid commissions totaled $ million as of November 30, 2020 , of which $ million was classified as non-current. We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 15 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition, which reflect the immaterial corrections as discussed below, was as follows (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Revenue by type of goods and services: Telematics devices and accessories $ 58,327 $ 65,930 $ 162,376 $ 195,867 Rental income and other services 6,095 6,586 14,508 16,766 Recurring application subscriptions 23,590 24,081 74,880 66,270 Total $ 88,012 $ 96,597 $ 251,764 $ 278,903 Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 64,070 $ 71,813 $ 175,944 $ 210,018 Revenue recognized over time 23,942 24,784 75,820 68,885 Total $ 88,012 $ 96,597 $ 251,764 $ 278,903 Telematics devices and accessories presented in the table above include devices sold in customer arrangements that include both the device and monitoring services. Recurring application subscriptions revenues include the amortization for customized devices functional only with application subscriptions. Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue on our condensed consolidated balance sheets and unbilled amounts that will be recognized as revenue in future periods. As of November 30, 2020 and February 29, 2020, we have estimated remaining performance obligations for contractually committed revenues of $135.1 million and $134.5 million, respectively. As of November 30, 2020, we expect to recognize approximately 17% in fiscal 2021 and 42% in fiscal 2022. As of February 29, 2020, we expected to recognize approximately 44% in fiscal 2021 and 26% in fiscal 2022. We have utilized the practical expedient exception within ASC 606 and exclude contracts that have original durations of less than one year from the aforementioned remaining performance obligation disclosure. Revision of Previously Issued Condensed Consolidated Financial Statements. Subsequent to the issuance of the consolidated financial statements for the year ended February 29, 2020, we concluded that the presentation of revenues and cost of revenues should be adjusted to present product and service revenues and the related cost of revenues for each separately in accordance with SEC Regulation S-X, Rule 5-03(b). Additionally, certain historical information in the notes to the condensed consolidated financial statements have been revised to reflect the impact of these corrections. We have determined that the correction of these classification errors is not material to the previously issued consolidated financial statements. The following table summarizes the impact of the immaterial adjustments. Three Months Ended November 30, 2019 Nine Months Ended November 30, 2019 As Reported Adjustment As Corrected As Reported Adjustment As Corrected Revenues: Products $ 63,192 $ 2,738 $ 65,930 $ 188,782 $ 7,085 $ 195,867 Application subscriptions and other services 33,405 (2,738 ) 30,667 90,121 (7,085 ) 83,036 Total revenues $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 Cost of revenues: Products $ 42,225 $ 1,344 $ 43,569 $ 118,494 $ 3,165 $ 121,659 Application subscriptions and other services 17,488 (1,344 ) 16,144 50,444 (3,165 ) 47,279 Total cost of revenues $ 59,713 $ - $ 59,713 $ 168,938 $ - $ 168,938 Three Months Ended November 30, 2019 Nine Months Ended November 30, 2019 As Reported Adjustment As Corrected As Reported Adjustment As Corrected Revenue by type of goods and services: Telematics devices and accessories $ 66,281 $ (351 ) $ 65,930 $ 200,340 $ (4,473 ) $ 195,867 Rental income and other services 3,741 2,845 6,586 7,724 9,042 16,766 Recurring application subscriptions 26,575 (2,494 ) 24,081 70,839 (4,569 ) 66,270 Total $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 66,281 $ 5,532 $ 71,813 $ 200,340 $ 9,678 $ 210,018 Revenue recognized over time 30,316 (5,532 ) 24,784 78,563 (9,678 ) 68,885 Total $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of amounts due to us from sales arrangements executed in our normal business activities and are recorded at invoiced amounts. Our payment terms generally range between 30 to 60 days and we do not offer financing options. We present the aggregate accounts receivable balance net of an allowance for doubtful accounts. Generally, collateral and other security is not obtained for outstanding accounts receivable. Credit losses, if any, are recognized based on management’s evaluation of historical collection experience, customer-specific financial conditions as well as an evaluation of current industry trends and general economic conditions. Past due balances are assessed by management on a periodic basis and balances are written off when the customer’s financial condition no longer warrants pursuit of collection. Although we expect to collect amounts due, actual collections may differ from estimated amounts. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. Except for the increase in expected credit losses, we are not aware of any specific event or circumstances that would require an update to our estimates or assumptions or a revision of the carrying value of our assets or liabilities as of the date of this Quarterly Report on Form 10-Q. These estimates and assumptions may change as new events occur and additional information is obtained. As a result, actual results could differ materially from these estimates and assumptions. We analyzed the credit risk associated with our accounts receivables and lease receivables. Our historical loss rates have not shown any significant differences between customer industries or geographies, and, upon adoption of ASU 2016-13, Financial Instruments - Credit Losses Segment Information and Geographic Data The allowance for doubtful accounts totaled $4.1 million and $3.1 million as of November 30, 2020 and February 29, 2020, respectively. |
Goodwill and Other Long-Lived Assets | Goodwill and Other Long-Lived Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. We test goodwill for impairment in accordance with the provisions of ASC 350, Intangibles – Goodwill and Other, In accordance with Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment Long-lived assets to be held and used, including identifiable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets or asset group to future undiscounted net cash flows expected to be generated by the lowest level of asset group. If the assets or asset group are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for similar investment of like risk. We estimate the fair value of property and equipment based on the cost method of valuation (Level 3 determination of fair value). Significant inputs to the valuation model include estimated asset lives, obsolescence factors and estimated salvage values. The recoverability assessment with respect to each of the tradenames used in our operations requires us to estimate the fair value of the asset as of the assessment date. Such determination is made using discounted cash flow techniques (Level 3 determination of fair value). Significant inputs to the valuation model include: • future revenue and profitability projections associated with the tradename through relief of royalty approach; • estimated market royalty rates that could be derived from the licensing of our tradenames to third parties in order to establish the cash flows accruing to the benefit of the Company as a result of our ownership of our tradenames; and • rate used to discount the estimated royalty cash flow projections to their present value (or estimated fair value). We estimate the fair value of goodwill and other long-lived assets other than tradenames based on discounted cash flow techniques (Level 3 determination of fair value). Significant inputs to the valuation model include: • estimated future cash flows; • growth assumptions for future revenues as well as future gross margin rates, expense rates, capital expenditures and other estimates; and • rate used to discount our estimated future cash flow projections to their present value (or estimated fair value) based on our estimated weighted average cost of capital. |
Fair Value Measurements | Fair Value Measurements We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in our financial statements. We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly manner in an arm’s-length transaction between market participants at the measurement date. Fair value is estimated by using the following hierarchy: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. |
Convertible Senior Notes and Capped Call Transactions | Convertible Senior Notes and Capped Call Transactions We account for our convertible senior notes as separate liability and equity components. We determine the carrying amount of the liability component based on the fair value of a similar debt instrument excluding the embedded conversion option at the issuance date. The carrying amount of the equity component representing the conversion option is calculated by deducting the carrying value of the liability component from the principal amount of the notes as a whole. This difference represents a debt discount that is amortized to interest expense over the term of the notes using the effective interest rate method. The equity component of the notes is included in stockholders’ equity and is not remeasured as long as it continues to meet the conditions for equity classification. We allocate transaction costs related to the issuance of the notes to the liability and equity components using the same proportions as the initial carrying value of the notes. Transaction costs attributable to the liability component are being amortized to interest expense using the effective interest method over the respective term of the notes, and transaction costs attributable to the equity components are netted with the equity component of the note in stockholders’ equity. We account for the cost of the capped calls as a reduction to additional paid-in capital. |
Patent Litigation and Other Contingencies | Patent Litigation and Other Contingencies We accrue for patent litigation and other contingencies whenever we determine that an unfavorable outcome is probable and a liability is reasonably estimable. The amount of the accrual is estimated based on a review of each claim, including the type and facts of the claim and our assessment of the merits of the claim. These accruals are reviewed at least on a quarterly basis and are adjusted to reflect the impact of recent negotiations, settlements, court rulings, advice from legal counsel and other events pertaining to the case. Such accruals, if any, are recorded as general and administrative expense in our condensed consolidated statements of comprehensive loss. Although we take considerable measures to mitigate our exposure in these matters, litigation is unpredictable; however, we believe that we have valid defenses with respect to pending legal matters against us as well as adequate provisions for probable and estimable losses. All costs for legal services are expensed as incurred . |
Foreign Currency Translation | Foreign Currency Translation We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) during the period. The aggregate foreign currency transaction exchange rate gain included in determining income (loss) before income taxes was $0.3 million and $1.1 million for the three and nine months ended November 30, 2020, respectively. The aggregate foreign currency transaction exchange rate gain (losses) included in determining income (loss) before income taxes was $1.2 million and $(0.1) million for the three and nine months ended November 30, 2019, respectively. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss) (“OCI”). OCI refers to revenue, expenses and gains and losses that under U.S. GAAP are recorded as an element of stockholders’ equity and excluded from net income (loss). Our OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements, Not Yet Adopted | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-13, Financial Instruments - Credit Losses In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Recently Issued Accounting Pronouncements, Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) |
DESCRIPTION OF BUSINESS, BASI_3
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Summary of Impairment Losses | Based upon our decision to wind down the LoJack U.S. SVR business and our current and prior quarterly impairment assessments, we recorded impairment losses as follows (in thousands): Three Months Ended November 30, 2020 Nine Months Ended November 30, 2020 LoJack U.S. SVR Products goodwill $ 8,099 $ 12,023 Other long-lived assets 8,782 9,068 Other intangible assets: Dealer and customer relationships 640 1,005 Developed technology 478 478 Total $ 17,999 $ 22,574 |
Summary of Impact of Immaterial Adjustments Related to the Presentation of Revenues and Cost of Revenues between Products and Services | Subsequent to the issuance of the consolidated financial statements for the year ended February 29, 2020, we concluded that the presentation of revenues and cost of revenues should be adjusted to present product and service revenues and the related cost of revenues for each separately in accordance with SEC Regulation S-X, Rule 5-03(b). Additionally, certain historical information in the notes to the condensed consolidated financial statements have been revised to reflect the impact of these corrections. We have determined that the correction of these classification errors is not material to the previously issued consolidated financial statements. The following table summarizes the impact of the immaterial adjustments. Three Months Ended November 30, 2019 Nine Months Ended November 30, 2019 As Reported Adjustment As Corrected As Reported Adjustment As Corrected Revenues: Products $ 63,192 $ 2,738 $ 65,930 $ 188,782 $ 7,085 $ 195,867 Application subscriptions and other services 33,405 (2,738 ) 30,667 90,121 (7,085 ) 83,036 Total revenues $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 Cost of revenues: Products $ 42,225 $ 1,344 $ 43,569 $ 118,494 $ 3,165 $ 121,659 Application subscriptions and other services 17,488 (1,344 ) 16,144 50,444 (3,165 ) 47,279 Total cost of revenues $ 59,713 $ - $ 59,713 $ 168,938 $ - $ 168,938 Three Months Ended November 30, 2019 Nine Months Ended November 30, 2019 As Reported Adjustment As Corrected As Reported Adjustment As Corrected Revenue by type of goods and services: Telematics devices and accessories $ 66,281 $ (351 ) $ 65,930 $ 200,340 $ (4,473 ) $ 195,867 Rental income and other services 3,741 2,845 6,586 7,724 9,042 16,766 Recurring application subscriptions 26,575 (2,494 ) 24,081 70,839 (4,569 ) 66,270 Total $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 66,281 $ 5,532 $ 71,813 $ 200,340 $ 9,678 $ 210,018 Revenue recognized over time 30,316 (5,532 ) 24,784 78,563 (9,678 ) 68,885 Total $ 96,597 $ - $ 96,597 $ 278,903 $ - $ 278,903 |
ASU 2014-09 [Member] | |
Disaggregation of Revenue by Type of Goods and Services and by Timing of Revenue Recognition which Reflect the Immaterial Adjustments | We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 15 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition, which reflect the immaterial corrections as discussed below, was as follows (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Revenue by type of goods and services: Telematics devices and accessories $ 58,327 $ 65,930 $ 162,376 $ 195,867 Rental income and other services 6,095 6,586 14,508 16,766 Recurring application subscriptions 23,590 24,081 74,880 66,270 Total $ 88,012 $ 96,597 $ 251,764 $ 278,903 Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 64,070 $ 71,813 $ 175,944 $ 210,018 Revenue recognized over time 23,942 24,784 75,820 68,885 Total $ 88,012 $ 96,597 $ 251,764 $ 278,903 |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Marketable Securities | The following tables summarize our financial instrument assets (in thousands): As of November 30, 2020 Balance Sheet Classification of Fair Value Unrealized Cash and Adjusted Gains Fair Cash Other Cost (Losses) Value Equivalents Assets Cash $ 30,900 $ — $ 30,900 $ 30,900 $ — Level 1: Money market funds 17,792 — 17,792 17,792 — Mutual funds (1) 2,127 357 2,484 — 2,484 Level 2: Repurchase agreements 43,000 — 43,000 43,000 — Total $ 93,819 $ 357 $ 94,176 $ 91,692 $ 2,484 As of February 29, 2020 Balance Sheet Classification of Fair Value Unrealized Cash and Adjusted Gains Fair Cash Other Cost (Losses) Value Equivalents Assets Cash $ 31,895 $ — $ 31,895 $ 31,895 $ — Level 1: Money market funds 5,508 — 5,508 5,508 — Mutual funds (1) 3,926 26 3,952 — 3,952 Level 2: Repurchase agreements 60,000 — 60,000 60,000 — Corporate bonds 10,001 — 10,001 10,001 — Total $ 111,330 $ 26 $ 111,356 $ 107,404 $ 3,952 (1) Amounts represent various equities, bond and money market mutual funds that are held in an irrevocable “Rabbi Trust” for payment obligations to non-qualified deferred compensation plan participants. In addition to the mutual funds above, our “Rabbi Trust” also included Corporate-Owned Life Insurance (COLI) starting in fiscal 2020. As of November 30, 2020, the cash surrender value of COLI was $4.5 million. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): November 30, February 29, 2020 2020 Raw materials $ 13,976 $ 18,118 Finished goods 18,186 18,660 $ 32,162 $ 36,778 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets consist of the following (in thousands): Gross Accumulated Amortization Net Useful Life Feb. 29, 2020 Additions & Adjustments, net (1) Impair- ment Nov. 30, 2020 Feb. 29, 2020 Expense Nov. 30, 2020 Feb. 29, 2020 Nov. 30, 2020 Developed technology 4-6 years $ 27,363 51 (478 ) $ 26,936 $ 21,437 $ 2,269 $ 23,706 $ 5,926 $ 3,230 Tradenames 10 years 30,093 74 — 30,167 16,303 1,591 17,894 13,790 12,273 Customer lists 4-7 years 25,304 — — 25,304 22,903 48 22,951 2,401 2,353 Dealer and customer relationships 10-15 years 34,139 (3 ) (1,005 ) 33,131 10,753 1,656 12,409 23,386 20,722 Patents 5 years 589 — — 589 197 27 224 392 365 $ 117,488 $ 122 $ (1,483 ) $ 116,127 $ 71,593 $ 5,591 $ 77,184 $ 45,895 $ 38,943 (1) Amounts also include any net changes in intangible asset balances for the periods presented that resulted from foreign currency translations. |
Schedule of Future Amortization Expense | Estimated future amortization expense as of November 30, 2020 is as follows (in thousands): 2021 (remainder) $ 1,554 2022 5,533 2023 5,381 2024 4,537 2025 4,422 Thereafter 17,516 $ 38,943 |
Schedule of Goodwill | Changes in goodwill are as follows (in thousands): Software & Subscription Services Telematics Products LoJack U.S. SVR Products Total Balance as of February 29, 2020 $ 55,132 $ 39,180 $ 12,023 $ 106,335 Impairment loss — — (12,023 ) (12,023 ) Effect of exchange rate change on goodwill 156 — — 156 Balance as of November 30, 2020 $ 55,288 $ 39,180 $ - $ 94,468 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following (in thousands): November 30, February 29, 2020 2020 Deferred cost $ 5,090 $ 7,818 Deferred compensation plan assets 6,958 6,041 Lease receivables, non-current 9,364 5,992 Prepaid commissions 2,747 2,318 Other 2,357 2,599 $ 26,516 $ 24,768 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following table provides a summary of our debt as of November 30, 2020 and February 29, 2020 (in thousands): Maturity Effective November 30, February 29, Date Interest Rate 2020 2020 2020 Convertible Notes, 1.625% fixed rate May 15, 2020 6.20 % $ - $ 27,599 2025 Convertible Notes, 2.00% fixed rate August 1, 2025 7.56 % 230,000 230,000 Due to factors 2020 - 2024 4.70 % 11,023 14,371 Total term debt 241,023 271,970 Unamortized discount and issuance costs (55,587 ) (61,763 ) Less: Current portion of long-term term debt (4,790 ) (33,119 ) Long-term debt, net of current portion $ 180,646 $ 177,088 |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Summary of Charges and Activity Resulting from Implementation of Restructuring Plan within Other Current and Non-current Liabilities | The following table summarizes the charges resulting from the implementation of the restructuring plan (in thousands): Three Months Ended November 30, 2020 Three Months Ended November 30, 2019 Personnel Facilities Total Personnel Facilities Total Cost of revenue $ (28 ) $ 145 $ 117 $ 100 $ - $ 100 Research and development - - - 97 - 97 Selling and marketing 4 - 4 454 - 454 General and administrative (29 ) - (29 ) 197 - 197 Total $ (53 ) $ 145 $ 92 $ 848 $ - $ 848 Nine Months Ended November 30, 2020 Nine Months Ended November 30, 2019 Personnel Facilities Total Personnel Facilities Total Cost of revenue $ 245 $ 319 $ 564 $ 449 $ 1,210 $ 1,659 Research and development - - - 97 - 97 Selling and marketing 34 - 34 901 - 901 General and administrative 1,953 - 1,953 463 - 463 Total $ 2,232 $ 319 $ 2,551 $ 1,910 $ 1,210 $ 3,120 The following table summarizes the activity resulting from the implementation of the restructuring plan within other current and non-current liabilities (in thousands): Personnel Facilities Total Restructuring liabilities as of February 29, 2020 $ 2,383 $ 359 $ 2,742 Charges 2,232 319 2,551 Payments (2,522 ) (678 ) (3,200 ) Restructuring liabilities as of November 30, 2020 $ 2,093 $ 0 $ 2,093 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Summary of Lease-related Assets and Liabilities | The table below presents lease-related assets and liabilities recorded on the condensed consolidated balance sheet (in thousands): Classification November 30, 2020 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 17,653 Liabilities Operating lease liabilities (current) Other current liabilities $ 6,148 Operating lease liabilities (noncurrent) Operating lease liabilities 19,217 Total lease liabilities $ 25,365 |
Summary of Lease Costs Included in Condensed Consolidated Statements of Comprehensive Loss | The following lease costs were included in our condensed consolidated statements of comprehensive loss as follows (in thousands): For the Three Months Ended November 30, For the Nine Months Ended November 30, 2020 2019 2020 2019 Operating lease cost $ 1,763 $ 663 $ 5,127 $ 4,636 Short-term lease cost 59 112 238 676 Variable lease cost 108 116 337 189 Total lease cost $ 1,930 $ 891 $ 5,702 $ 5,501 |
Schedule of Supplemental Information Related to Operating Leases | The table below presents supplemental information related to operating leases during the nine months ended November 30, 2020 (in thousands, except weighted-average information): Cash paid for amounts included in the measurement of operating lease liabilities $ 5,682 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,425 Weighted average remaining lease term 4.71 Weighted average discount rate 5.17 % |
Schedule of Reconciles the Undiscounted Cash Flows for Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of November 30, 2020 Remainder of 2021 $ 2,406 2022 7,115 2023 6,598 2024 4,895 2025 3,113 Thereafter 2,900 Total minimum lease payments 27,027 Less imputed interest (1,662 ) Present value of future minimum lease payments 25,365 Less current obligations under leases (6,148 ) Long-term lease obligations $ 19,217 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The calculation of the basic and diluted loss per share of common stock is as follows (in thousands, except per share value): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Net loss $ (23,680 ) $ (7,415 ) $ (47,580 ) $ (23,477 ) Basic and diluted weighted average number of common shares outstanding 34,599 33,822 34,292 33,589 Loss per share: Basic $ (0.68 ) $ (0.22 ) $ (1.39 ) $ (0.70 ) Diluted $ (0.68 ) $ (0.22 ) $ (1.39 ) $ (0.70 ) |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense is included in the following captions of the condensed consolidated statements of comprehensive loss (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Cost of revenues $ 184 $ 221 $ 562 $ 558 Research and development 798 723 2,167 1,769 Selling and marketing 770 1,058 2,035 2,709 General and administrative 1,278 1,650 3,860 4,342 Restructuring - - 875 - $ 3,030 $ 3,652 $ 9,499 $ 9,378 |
Summary of Stock Option Activity | Changes in our outstanding stock options during the nine months ended November 30, 2020 were as follows (options in thousands): Number of Options Weighted Average Exercise Price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding at February 29, 2020 1,071 $ 14.65 6.2 Granted — — Exercised (70 ) 4.03 Forfeited or expired (152 ) 17.52 Outstanding at November 30, 2020 849 $ 15.02 5.8 $ 408 Exercisable at November 30, 2020 578 $ 14.37 4.8 $ 408 |
Summary of Restricted Stock Shares (RSU's), and Performance Stock Units (PSU's) Activity | Changes in our outstanding restricted stock shares, performance stock units (“PSUs”) and restricted stock units (“RSUs”) during the nine months ended November 30, 2020 were as follows (restricted shares, PSUs and RSUs in thousands): Number of Restricted Shares, PSUs and RSUs Weighted Average Grant Date Fair Value Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at February 29, 2020 2,215 $ 14.47 Granted 1,856 7.94 Vested (636 ) 15.07 207 Forfeited (277 ) 12.44 Outstanding at November 30, 2020 3,158 $ 10.69 |
CONCENTRATION OF RISK (Tables)
CONCENTRATION OF RISK (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Schedule of Significant Customers and Significant Suppliers Concentration Risk Percentage | As identified below, some of these manufacturers accounted for more than 10% of our accounts payable as follows (rounded): November 30, February 29, 2020 2020 Accounts payable: Supplier A 7 % 11 % Supplier B 14 % 11 % Supplier C 14 % 8 % |
PRODUCT WARRANTIES (Tables)
PRODUCT WARRANTIES (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Activity in the accrued warranty costs liability is as follows (in thousands): Nine Months Ended November 30, 2020 2019 Balance at beginning of period $ 987 $ 1,399 Charged to costs and expenses 2,354 657 Deductions (2,157 ) (703 ) Balance at end of period $ 1,184 $ 1,353 |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Other Financial Information [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): November 30, February 29, 2020 2020 Operating lease liabilities $ 6,148 $ 4,662 Taxes payable 2,487 2,266 Warranty reserves 1,184 987 Customer deposit 2,924 1,377 Litigation reserve 2,200 1,500 Interest payable 1,532 481 Other (1) 4,641 4,880 $ 21,116 $ 16,153 (1) Amount represents accruals for various operating expense such as professional fees, vendor incentives and other estimates that are expected to be paid within the next 12 months. Other non-current liabilities consist of the following (in thousands): November 30, February 29, 2020 2020 Deferred revenue $ 24,214 $ 27,452 Deferred compensation plan liability 6,965 5,919 Other 4,079 1,673 $ 35,258 $ 35,044 |
Schedule of Interest Expense | Supplemental Statement of Comprehensive Loss Information Interest expense consists of the following (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 Interest expense on 2020 Convertible Notes: Stated interest at 1.625% per annum $ - $ 356 $ 93 $ 1,352 Amortization of discount and issue costs - 1,038 289 3,989 - 1,394 382 5,341 Interest expense on 2025 Convertible Notes: Stated interest at 2.00% 1,150 1,150 3,463 3,476 Amortization of discount and issue costs 2,374 2,203 7,014 6,531 3,524 3,353 10,477 10,007 Other interest expense 356 240 955 650 Total interest expense $ 3,880 $ 4,987 $ 11,814 $ 15,998 |
Schedule of Supplemental Cash Flow Information | “Net cash provided by operating activities” includes cash payments for interest expense and income taxes as follows (in thousands): Nine Months Ended November 30, 2020 2019 Cash payments for interest and income taxes: Interest expense paid $ 2,983 $ 4,368 Income tax paid, net of refunds $ 653 $ 749 |
SEGMENT INFORMATION AND GEOGR_2
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Segment information is as follows (in thousands): Three Months Ended November 30, 2020 Three Months Ended November 30, 2019 Reportable Segments Reportable Segments Software & Subscription Services Telematics Products LoJack U.S. SVR Products Corporate Expenses Total Software & Subscription Services Telematics Products LoJack U.S. SVR Products Corporate Expenses Total Revenues $ 34,396 $ 44,071 $ 9,545 $ 88,012 $ 33,405 $ 51,895 $ 11,297 $ 96,597 Gross profit $ 17,266 $ 13,804 $ 3,935 $ 35,005 $ 15,928 $ 16,116 $ 4,840 $ 36,884 Gross margin 50 % 31 % 41 % 40 % 48 % 31 % 43 % 38 % Adjusted EBITDA $ 8,927 $ 766 $ 87 $ (1,009 ) $ 8,771 $ 7,254 $ 4,700 $ (182 ) $ (867 ) $ 10,905 Nine Months Ended November 30, 2020 Nine Months Ended November 30, 2019 Operating Segments Operating Segments Software & Subscription Services Telematics Products LoJack U.S. SVR Products Corporate Expenses Total Software & Subscription Services Telematics Products LoJack U.S. SVR Products Corporate Expenses Total Revenues $ 96,121 $ 130,342 $ 25,301 $ 251,764 $ 90,121 $ 152,027 $ 36,755 $ 278,903 Gross profit $ 47,583 $ 39,885 $ 9,400 $ 96,868 $ 39,688 $ 54,344 $ 15,933 $ 109,965 Gross margin 50 % 31 % 37 % 38 % 44 % 36 % 43 % 39 % Adjusted EBITDA $ 22,854 $ 2,413 $ (1,259 ) $ (3,327 ) $ 20,681 $ 13,575 $ 17,904 $ 1,121 $ (3,479 ) $ 29,121 |
Summary of Adjusted EBITDA | The adjustments to our net income (losses) prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) to calculate Adjusted EBITDA are itemized below (in thousands): Three Months Ended November 30, Nine Months Ended November 30, 2020 2019 2020 2019 Net loss $ (23,680 ) $ (7,415 ) $ (47,580 ) $ (23,477 ) Investment income (584 ) (1,108 ) (1,282 ) (4,445 ) Interest expense 3,880 4,987 11,814 15,998 Income tax provision (benefit) 319 (2,637 ) 825 (6,236 ) Depreciation 5,025 5,018 15,008 14,054 Amortization of intangible assets 1,855 3,325 5,591 9,683 Stock-based compensation 3,030 3,652 8,624 9,378 Loss on extinguishment of debt — 2,408 — 2,408 Impairment loss 17,999 — 22,574 — Restructuring charges 92 848 2,551 3,120 Non-recurring legal expenses 205 957 1,168 5,541 Acquisition and integration related expenses — 382 — 1,572 Other 630 488 1,388 1,525 Adjusted EBITDA $ 8,771 $ 10,905 $ 20,681 $ 29,121 |
Summary of Revenues by Geographic Area | Revenues by geographic area are as follows (in thousands): Three Months Ended Nine Months Ended November 30, November 30, 2020 2019 2020 2019 United States $ 60,823 $ 69,961 $ 171,318 $ 201,678 Europe, Middle East and Africa 13,771 14,818 45,214 41,625 South America 7,349 5,518 19,078 16,494 Asia and Pacific Rim 4,034 3,044 8,077 7,394 All other 2,035 3,256 8,077 11,712 $ 88,012 $ 96,597 $ 251,764 $ 278,903 |
DESCRIPTION OF BUSINESS, BASI_4
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Impact of Immaterial Adjustments Related to the Presentation of Revenues and Cost of Revenues between Products and Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Revenues: | ||||
Revenues | $ 88,012 | $ 96,597 | $ 251,764 | $ 278,903 |
Cost of revenues: | ||||
Cost of revenues | 53,007 | 59,713 | 154,896 | 168,938 |
As Reported [Member] | ||||
Revenues: | ||||
Revenues | 96,597 | 278,903 | ||
Cost of revenues: | ||||
Cost of revenues | 59,713 | 168,938 | ||
Products [Member] | ||||
Revenues: | ||||
Revenues | 58,327 | 65,930 | 162,376 | 195,867 |
Cost of revenues: | ||||
Cost of revenues | 37,773 | 43,569 | 110,561 | 121,659 |
Products [Member] | As Reported [Member] | ||||
Revenues: | ||||
Revenues | 63,192 | 188,782 | ||
Cost of revenues: | ||||
Cost of revenues | 42,225 | 118,494 | ||
Products [Member] | Adjustment [Member] | ||||
Revenues: | ||||
Revenues | 2,738 | 7,085 | ||
Cost of revenues: | ||||
Cost of revenues | 1,344 | 3,165 | ||
Application Subscriptions and Other Services [Member] | ||||
Revenues: | ||||
Revenues | 29,685 | 30,667 | 89,388 | 83,036 |
Cost of revenues: | ||||
Cost of revenues | 15,234 | 16,144 | 44,335 | 47,279 |
Application Subscriptions and Other Services [Member] | As Reported [Member] | ||||
Revenues: | ||||
Revenues | 33,405 | 90,121 | ||
Cost of revenues: | ||||
Cost of revenues | 17,488 | 50,444 | ||
Application Subscriptions and Other Services [Member] | Adjustment [Member] | ||||
Revenues: | ||||
Revenues | (2,738) | (7,085) | ||
Cost of revenues: | ||||
Cost of revenues | (1,344) | (3,165) | ||
Telematics Devices and Accessories [Member] | ||||
Revenues: | ||||
Revenues | 58,327 | 65,930 | 162,376 | 195,867 |
Telematics Devices and Accessories [Member] | As Reported [Member] | ||||
Revenues: | ||||
Revenues | 66,281 | 200,340 | ||
Telematics Devices and Accessories [Member] | Adjustment [Member] | ||||
Revenues: | ||||
Revenues | (351) | (4,473) | ||
Rental Income and Other Services [Member] | ||||
Revenues: | ||||
Revenues | 6,095 | 6,586 | 14,508 | 16,766 |
Rental Income and Other Services [Member] | As Reported [Member] | ||||
Revenues: | ||||
Revenues | 3,741 | 7,724 | ||
Rental Income and Other Services [Member] | Adjustment [Member] | ||||
Revenues: | ||||
Revenues | 2,845 | 9,042 | ||
Recurring Application Subscriptions [Member] | ||||
Revenues: | ||||
Revenues | 23,590 | 24,081 | 74,880 | 66,270 |
Recurring Application Subscriptions [Member] | As Reported [Member] | ||||
Revenues: | ||||
Revenues | 26,575 | 70,839 | ||
Recurring Application Subscriptions [Member] | Adjustment [Member] | ||||
Revenues: | ||||
Revenues | (2,494) | (4,569) | ||
Revenue Recognized At Point In Time [Member] | ||||
Revenues: | ||||
Revenues | 64,070 | 71,813 | 175,944 | 210,018 |
Revenue Recognized At Point In Time [Member] | As Reported [Member] | ||||
Revenues: | ||||
Revenues | 66,281 | 200,340 | ||
Revenue Recognized At Point In Time [Member] | Adjustment [Member] | ||||
Revenues: | ||||
Revenues | 5,532 | 9,678 | ||
Revenue Recognized Over Time [Member] | ||||
Revenues: | ||||
Revenues | $ 23,942 | 24,784 | $ 75,820 | 68,885 |
Revenue Recognized Over Time [Member] | As Reported [Member] | ||||
Revenues: | ||||
Revenues | 30,316 | 78,563 | ||
Revenue Recognized Over Time [Member] | Adjustment [Member] | ||||
Revenues: | ||||
Revenues | $ (5,532) | $ (9,678) |
DESCRIPTION OF BUSINESS, BASI_5
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 30, 2020USD ($) | May 31, 2020Segment | Nov. 30, 2019USD ($) | Nov. 30, 2020USD ($) | Nov. 30, 2019USD ($)Segment | Feb. 29, 2020USD ($)Segment | Mar. 01, 2020USD ($) | |
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of reportable segments | Segment | 3 | 2 | 2 | ||||
Revenue recognized | $ 30,700 | ||||||
Unearned revenue | 36,003 | $ 36,003 | $ 34,704 | $ 62,200 | |||
Prepaid sales commissions | 4,500 | 4,500 | |||||
Contracted not recognized revenue | 135,100 | 135,100 | 134,500 | ||||
Allowance for doubtful accounts | 4,100 | 4,100 | $ 3,100 | ||||
Foreign transaction exchange gains (losses) | 300 | $ 1,200 | 1,100 | $ (100) | |||
ASC 326 [Member] | |||||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||
Addition to allowance for doubtful accounts | 100 | ||||||
Non-current [Member] | |||||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||
Prepaid sales commissions | $ 2,700 | $ 2,700 | |||||
Minimum [Member] | |||||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred revenue contract in-service life | 3 years | ||||||
Accounts receivable payment period | 30 days | ||||||
Maximum [Member] | |||||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred revenue contract in-service life | 5 years | ||||||
Accounts receivable payment period | 60 days | ||||||
Software-as-a-Service [Member] | Minimum [Member] | |||||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life | 3 years | ||||||
Software-as-a-Service [Member] | Maximum [Member] | |||||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life | 5 years |
DESCRIPTION OF BUSINESS, BASI_6
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Impairment Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 30, 2020 | Nov. 30, 2020 | |
Impaired Long Lived Assets Held And Used [Line Items] | ||
LoJack U.S. SVR Products goodwill | $ 12,023 | |
Other intangible assets | 1,483 | |
Total | $ 17,999 | 22,574 |
Dealer and Customer Relationships [Member] | ||
Impaired Long Lived Assets Held And Used [Line Items] | ||
Other intangible assets | 1,005 | |
Developed Technology [Member] | ||
Impaired Long Lived Assets Held And Used [Line Items] | ||
Other intangible assets | 478 | |
LoJack U.S. SVR Operations [Member] | ||
Impaired Long Lived Assets Held And Used [Line Items] | ||
LoJack U.S. SVR Products goodwill | 8,099 | 12,023 |
Other long-lived assets | 8,782 | 9,068 |
Total | 17,999 | 22,574 |
LoJack U.S. SVR Operations [Member] | Dealer and Customer Relationships [Member] | ||
Impaired Long Lived Assets Held And Used [Line Items] | ||
Other intangible assets | 640 | 1,005 |
LoJack U.S. SVR Operations [Member] | Developed Technology [Member] | ||
Impaired Long Lived Assets Held And Used [Line Items] | ||
Other intangible assets | $ 478 | $ 478 |
DESCRIPTION OF BUSINESS, BASI_7
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Disaggregation of Revenue by Type of Goods and Services and by Timing of Revenue Recognition which Reflect the Immaterial Adjustments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 88,012 | $ 96,597 | $ 251,764 | $ 278,903 |
Telematics Devices and Accessories [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 58,327 | 65,930 | 162,376 | 195,867 |
Rental Income and Other Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 6,095 | 6,586 | 14,508 | 16,766 |
Recurring Application Subscriptions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 23,590 | 24,081 | 74,880 | 66,270 |
Revenue Recognized At Point In Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 64,070 | 71,813 | 175,944 | 210,018 |
Revenue Recognized Over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 23,942 | $ 24,784 | $ 75,820 | $ 68,885 |
DESCRIPTION OF BUSINESS, BASI_8
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative 1) (Details) | Nov. 30, 2020 | Feb. 29, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-03-01 | ||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue, remaining performance obligation expect to recognize in percentage | 44.00% | |
Revenue, remaining Performance obligation, expected timing of satisfaction, year | 2021 | |
Revenue, remaining Performance obligation, expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-12-01 | ||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue, remaining performance obligation expect to recognize in percentage | 17.00% | |
Revenue, remaining Performance obligation, expected timing of satisfaction, year | 2021 | |
Revenue, remaining Performance obligation, expected timing of satisfaction, period | 3 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-03-01 | ||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue, remaining performance obligation expect to recognize in percentage | 42.00% | 26.00% |
Revenue, remaining Performance obligation, expected timing of satisfaction, year | 2022 | 2022 |
Revenue, remaining Performance obligation, expected timing of satisfaction, period | 1 year | 2 years |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjusted Cost | $ 93,819 | $ 111,330 | |
Unrealized Gains (Losses) | 357 | 26 | |
Fair Value | 94,176 | 111,356 | |
Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 91,692 | 107,404 | |
Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,484 | 3,952 | |
Cash [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjusted Cost | 30,900 | 31,895 | |
Unrealized Gains (Losses) | |||
Fair Value | 30,900 | 31,895 | |
Cash [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 30,900 | 31,895 | |
Cash [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjusted Cost | 17,792 | 5,508 | |
Unrealized Gains (Losses) | |||
Fair Value | 17,792 | 5,508 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 17,792 | 5,508 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjusted Cost | [1] | 2,127 | 3,926 |
Unrealized Gains (Losses) | [1] | 357 | 26 |
Fair Value | [1] | 2,484 | 3,952 |
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | ||
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 2,484 | 3,952 |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjusted Cost | 43,000 | 60,000 | |
Unrealized Gains (Losses) | |||
Fair Value | 43,000 | 60,000 | |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 43,000 | 60,000 | |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjusted Cost | 10,001 | ||
Unrealized Gains (Losses) | |||
Fair Value | 10,001 | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 10,001 | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
[1] | Amounts represent various equities, bond and money market mutual funds that are held in an irrevocable “Rabbi Trust” for payment obligations to non-qualified deferred compensation plan participants. In addition to the mutual funds above, our “Rabbi Trust” also included Corporate-Owned Life Insurance (COLI) starting in fiscal 2020. As of November 30, 2020, the cash surrender value of COLI was $4.5 million. |
CASH, CASH EQUIVALENTS AND IN_4
CASH, CASH EQUIVALENTS AND INVESTMENTS (Parenthetical) (Details) $ in Millions | Nov. 30, 2020USD ($) |
Cash And Cash Equivalents [Abstract] | |
Cash surrender value of Corporate-Owned Life Insurance (COLI) | $ 4.5 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 13,976 | $ 18,118 |
Finished goods | 18,186 | 18,660 |
Inventories | $ 32,162 | $ 36,778 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross, Beginning balance | $ 117,488 | ||||
Additions & Adjustments, net | [1] | 122 | |||
Impairment | (1,483) | ||||
Gross, Ending balance | $ 116,127 | 116,127 | |||
Accumulated Amortization, Beginning balance | 71,593 | ||||
Expense | 1,855 | $ 3,325 | 5,591 | $ 9,683 | |
Accumulated Amortization, Ending balance | 77,184 | 77,184 | |||
Net beginning | 45,895 | ||||
Net ending | 38,943 | 38,943 | |||
Developed Technology Rights [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross, Beginning balance | 27,363 | ||||
Additions & Adjustments, net | [1] | 51 | |||
Impairment | (478) | ||||
Gross, Ending balance | 26,936 | 26,936 | |||
Accumulated Amortization, Beginning balance | 21,437 | ||||
Expense | 2,269 | ||||
Accumulated Amortization, Ending balance | 23,706 | 23,706 | |||
Net beginning | 5,926 | ||||
Net ending | 3,230 | $ 3,230 | |||
Developed Technology Rights [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 4 years | ||||
Developed Technology Rights [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 6 years | ||||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 10 years | ||||
Gross, Beginning balance | $ 30,093 | ||||
Additions & Adjustments, net | [1] | 74 | |||
Gross, Ending balance | 30,167 | 30,167 | |||
Accumulated Amortization, Beginning balance | 16,303 | ||||
Expense | 1,591 | ||||
Accumulated Amortization, Ending balance | 17,894 | 17,894 | |||
Net beginning | 13,790 | ||||
Net ending | 12,273 | 12,273 | |||
Customer Lists [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross, Beginning balance | 25,304 | ||||
Gross, Ending balance | 25,304 | 25,304 | |||
Accumulated Amortization, Beginning balance | 22,903 | ||||
Expense | 48 | ||||
Accumulated Amortization, Ending balance | 22,951 | 22,951 | |||
Net beginning | 2,401 | ||||
Net ending | 2,353 | $ 2,353 | |||
Customer Lists [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 4 years | ||||
Customer Lists [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 7 years | ||||
Dealer and Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross, Beginning balance | $ 34,139 | ||||
Additions & Adjustments, net | [1] | (3) | |||
Impairment | (1,005) | ||||
Gross, Ending balance | 33,131 | 33,131 | |||
Accumulated Amortization, Beginning balance | 10,753 | ||||
Expense | 1,656 | ||||
Accumulated Amortization, Ending balance | 12,409 | 12,409 | |||
Net beginning | 23,386 | ||||
Net ending | 20,722 | $ 20,722 | |||
Dealer and Customer Relationships [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 10 years | ||||
Dealer and Customer Relationships [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 15 years | ||||
Patents [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period | 5 years | ||||
Gross, Beginning balance | $ 589 | ||||
Gross, Ending balance | 589 | 589 | |||
Accumulated Amortization, Beginning balance | 197 | ||||
Expense | 27 | ||||
Accumulated Amortization, Ending balance | 224 | 224 | |||
Net beginning | 392 | ||||
Net ending | $ 365 | $ 365 | |||
[1] | Amounts also include any net changes in intangible asset balances for the periods presented that resulted from foreign currency translations. |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Nov. 30, 2020 | May 31, 2020 | Nov. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | |||
Impairment loss | $ 1,483 | ||
Impairment of goodwill | 12,023 | ||
LoJack US SVR [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment of goodwill | $ 8,100 | $ 3,900 | |
Developed Technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment loss | 478 | ||
Dealer Relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment loss | $ 1,000 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Fiscal Year | ||
2021 (remainder) | $ 1,554 | |
2022 | 5,533 | |
2023 | 5,381 | |
2024 | 4,537 | |
2025 | 4,422 | |
Thereafter | 17,516 | |
Net | $ 38,943 | $ 45,895 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Nov. 30, 2020USD ($) | |
Goodwill [Line Items] | |
Balance as of February 29, 2020 | $ 106,335 |
Impairment loss | (12,023) |
Effect of exchange rate change on goodwill | 156 |
Balance as of November 30, 2020 | 94,468 |
Software & Subscription Services [Member] | |
Goodwill [Line Items] | |
Balance as of February 29, 2020 | 55,132 |
Effect of exchange rate change on goodwill | 156 |
Balance as of November 30, 2020 | 55,288 |
Telematics Products [Member] | |
Goodwill [Line Items] | |
Balance as of February 29, 2020 | 39,180 |
Balance as of November 30, 2020 | 39,180 |
LoJack U.S. SVR Products [Member] | |
Goodwill [Line Items] | |
Balance as of February 29, 2020 | 12,023 |
Impairment loss | $ (12,023) |
OTHER ASSETS (Schedule of Other
OTHER ASSETS (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Deferred cost | $ 5,090 | $ 7,818 |
Deferred compensation plan assets | 6,958 | 6,041 |
Lease receivables, non-current | 9,364 | 5,992 |
Prepaid commissions | 2,747 | 2,318 |
Other | 2,357 | 2,599 |
Total | $ 26,516 | $ 24,768 |
FINANCING ARRANGEMENTS (Summary
FINANCING ARRANGEMENTS (Summary of Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2020 | Feb. 29, 2020 | |
Debt Instrument [Line Items] | ||
Total term debt | $ 241,023 | $ 271,970 |
Unamortized discount and issuance costs | (55,587) | (61,763) |
Less: Current portion of long-term term debt | (4,790) | (33,119) |
Long-term debt, net of current portion | $ 180,646 | 177,088 |
2020 Convertible Notes, 1.625% Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 15, 2020 | |
Effective Interest Rate | 6.20% | |
Total term debt | 27,599 | |
2025 Convertible Notes, 2.00% Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 1, 2025 | |
Effective Interest Rate | 7.56% | |
Total term debt | $ 230,000 | 230,000 |
Due to Factors [Member] | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.70% | |
Maturity Date | 2020 2021 2022 2023 2024 | |
Total term debt | $ 11,023 | $ 14,371 |
FINANCING ARRANGEMENTS (Summa_2
FINANCING ARRANGEMENTS (Summary of Debt) (Parenthetical) (Details) | Nov. 30, 2020 | Feb. 29, 2020 |
2020 Convertible Notes, 1.625% Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 1.625% | 1.625% |
2025 Convertible Notes, 2.00% Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 2.00% | 2.00% |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) | Nov. 19, 2020USD ($) | Mar. 30, 2018USD ($) | Nov. 30, 2019USD ($) | Jul. 31, 2018USD ($)$ / sharesshares | Nov. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Nov. 30, 2020USD ($) | Nov. 30, 2019USD ($) | May 15, 2020USD ($) | Feb. 29, 2020USD ($) | Apr. 12, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||||
Loss on extinguishment of debt | $ (2,408,000) | $ (2,408,000) | |||||||||
Remaining principal amount | $ 241,023,000 | $ 241,023,000 | $ 271,970,000 | ||||||||
Repayment of revolving credit facility | 20,000,000 | ||||||||||
Synovia Solutions LLC (“Synovia”) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of debt | $ 19,700,000 | ||||||||||
Pre-tax cost of debt percentage | 4.70% | ||||||||||
Unamortized discount | $ 1,500,000 | ||||||||||
Interest expense related to debt recognized | 100,000 | $ 200,000 | 400,000 | 500,000 | |||||||
Revenue recognized from arrangements with financial institutions | $ 4,900,000 | $ 5,000,000 | |||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||||
Maturity date | Mar. 30, 2022 | ||||||||||
Credit facility bear interest | highest of (i) 0%, (ii) the rate of interest publicly announced by JP Morgan Chase Bank, N.A. (the “Agent”) as its prime rate in effect at its principal office in New York City, (iii) the overnight bank funding rate as determined by the Federal Reserve Bank of New York plus 0.50% and (iv) the LIBOR-based rate for a one-month interest period on such day plus 1%; or (b) for Eurodollar loans, the higher of (x) 1.00% and (y) the LIBOR-based rate for one, three or six months (as selected by the Company) for Eurodollar deposits. An applicable margin is added based on the Company’s senior leverage ratio, ranging from 1.50% to 2.00% for base rate loans, and from 2.50% to 3.00% for Eurodollar loans. We will also pay a commitment fee based on our senior leverage ratio ranging from 0.40% to 0.50%, payable quarterly in arrears, on the average daily unused amount of the Credit Facility | ||||||||||
Credit facility interest rate | 0.00% | ||||||||||
Repayment of revolving credit facility | $ 20,000,000 | ||||||||||
Accrued interest | $ 100,000 | ||||||||||
Borrowings outstanding | $ 0 | $ 0 | |||||||||
Revolving Credit Facility | Federal Home Loan Bank Of New York [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate | 0.50% | ||||||||||
Revolving Credit Facility | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate | 1.00% | ||||||||||
Description of variable rate basis | LIBOR-based rate for one, three or six months | ||||||||||
Revolving Credit Facility | Eurodollar [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate | 1.00% | ||||||||||
Revolving Credit Facility | Minimum [Member] | Eurodollar [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior leverage ratio | 2.50% | 2.50% | |||||||||
Revolving Credit Facility | Minimum [Member] | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior leverage ratio | 1.50% | 1.50% | |||||||||
Revolving Credit Facility | Minimum [Member] | Prime Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior leverage ratio | 0.40% | 0.40% | |||||||||
Revolving Credit Facility | Maximum [Member] | Eurodollar [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior leverage ratio | 3.00% | 3.00% | |||||||||
Revolving Credit Facility | Maximum [Member] | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior leverage ratio | 2.00% | 2.00% | |||||||||
Revolving Credit Facility | Maximum [Member] | Prime Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior leverage ratio | 0.50% | 0.50% | |||||||||
2025 Convertible Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 230,000,000 | ||||||||||
Maturity date | Aug. 1, 2025 | ||||||||||
Interest rate (as a percent) | 2.00% | ||||||||||
Debt instrument, redemption, description | We may redeem the notes at our option at any time on or after August 6, 2022 at a cash redemption price equal to the principal amount plus accrued interest, but only if the last reported sale price per share of our stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. | ||||||||||
Initial conversion price | $ / shares | $ 30.7450 | ||||||||||
Number of common stock with hedge transactions | shares | 7,480,000 | ||||||||||
Conversion rate of shares of common stock | 41.3875 | ||||||||||
Payments for notes hedges | $ 21,200,000 | ||||||||||
Purchase of note hedges, net of tax | 15,900,000 | ||||||||||
2025 Convertible Notes [Member] | Additional Paid-in Capital [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notes charge, equity component | $ 51,900,000 | ||||||||||
2020 Convertible Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 1.625% | 1.625% | 1.625% | 1.625% | |||||||
Aggregate amount of notes repurchase | $ 94,900,000 | $ 94,900,000 | $ 94,900,000 | ||||||||
Repurchases of notes | 94,700,000 | ||||||||||
Carrying value of repurchased notes | 92,300,000 | ||||||||||
Loss on extinguishment of debt | $ (2,400,000) | ||||||||||
Remaining principal amount | $ 27,600,000 | ||||||||||
2025 Convertible Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of convertible notes | $ 191,000,000 | $ 191,000,000 | $ 197,000,000 |
RESTRUCTURING ACTIVITIES (Narra
RESTRUCTURING ACTIVITIES (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 30 Months Ended | |||
Feb. 28, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | $ 92,000 | $ 848,000 | $ 2,551,000 | $ 3,120,000 | $ 15,000,000 | |
Severance and employee related costs | 2,300,000 | 9,100,000 | ||||
Restructuring charges | 300,000 | 5,900,000 | ||||
Stock-based compensation | $ 900,000 | |||||
Maximum [Member] | Forecast [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and employee related costs | $ 2,000,000 | |||||
Canton, Massachusetts [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges | $ 3,300,000 | |||||
Sub lease commenced date | May 31, 2020 |
RESTRUCTURING ACTIVITIES - Summ
RESTRUCTURING ACTIVITIES - Summary of Charges Resulting from Implementation of Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 30 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | $ 92 | $ 848 | $ 2,551 | $ 3,120 | $ 15,000 |
Personnel [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | (53) | 848 | 2,232 | 1,910 | |
Facilities [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | 145 | 319 | 1,210 | ||
Cost of Revenue [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | 117 | 100 | 564 | 1,659 | |
Cost of Revenue [Member] | Personnel [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | (28) | 100 | 245 | 449 | |
Cost of Revenue [Member] | Facilities [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | 145 | 319 | 1,210 | ||
Research and Development [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | 97 | 97 | |||
Research and Development [Member] | Personnel [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | 97 | 97 | |||
Selling and Marketing [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | 4 | 454 | 34 | 901 | |
Selling and Marketing [Member] | Personnel [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | 4 | 454 | 34 | 901 | |
General and Administrative Expenses [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | (29) | 197 | 1,953 | 463 | |
General and Administrative Expenses [Member] | Personnel [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | $ (29) | $ 197 | $ 1,953 | $ 463 |
RESTRUCTURING ACTIVITIES - Su_2
RESTRUCTURING ACTIVITIES - Summary of Activity Resulting from Implementation of Restructuring Plan within Other Current and Non-current Liabilities (Details) $ in Thousands | 9 Months Ended |
Nov. 30, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring liabilities, Beginning Balance | $ 2,742 |
Charges | 2,551 |
Payments | (3,200) |
Restructuring liabilities, Ending Balance | 2,093 |
Personnel [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring liabilities, Beginning Balance | 2,383 |
Charges | 2,232 |
Payments | (2,522) |
Restructuring liabilities, Ending Balance | 2,093 |
Facilities [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring liabilities, Beginning Balance | 359 |
Charges | 319 |
Payments | (678) |
Restructuring liabilities, Ending Balance | $ 0 |
LEASES (Summary of Lease-relate
LEASES (Summary of Lease-related Assets and Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Schedule Of Lease Assets And Liabilities [Abstract] | ||
Operating lease right-of-use assets | $ 17,653 | $ 20,626 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | camp:OperatingLeaseRightOfUseAssetsMember | |
Operating lease liabilities (current) | $ 6,148 | 4,662 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentLiabilitiesMember | |
Operating lease liabilities | $ 19,217 | $ 24,279 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | camp:OperatingLeaseLiabilitiesMember | |
Total lease liabilities | $ 25,365 |
LEASES (Summary of Lease Costs
LEASES (Summary of Lease Costs Included in Condensed Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Lease Cost [Abstract] | ||||
Operating lease cost | $ 1,763 | $ 663 | $ 5,127 | $ 4,636 |
Short-term lease cost | 59 | 112 | 238 | 676 |
Variable lease cost | 108 | 116 | 337 | 189 |
Total lease cost | $ 1,930 | $ 891 | $ 5,702 | $ 5,501 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Information Related to Operating Leases) (Details) $ in Thousands | 9 Months Ended |
Nov. 30, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 5,682 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 5,425 |
Weighted average remaining lease term | 4 years 8 months 15 days |
Weighted average discount rate | 5.17% |
LEASES (Schedule of Reconciles
LEASES (Schedule of Reconciles the Undiscounted Cash Flows for Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Operating Lease Liabilities Payments Due [Abstract] | ||
Remainder of 2021 | $ 2,406 | |
2022 | 7,115 | |
2023 | 6,598 | |
2024 | 4,895 | |
2025 | 3,113 | |
Thereafter | 2,900 | |
Total minimum lease payments | 27,027 | |
Less imputed interest | (1,662) | |
Total lease liabilities | 25,365 | |
Less current obligations under leases | (6,148) | $ (4,662) |
Long-term lease obligations | $ 19,217 | $ 24,279 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Millions | Nov. 30, 2020USD ($) |
LoJack U.S. SVR Operations [Member] | |
Lessee Lease Description [Line Items] | |
Estimated decrease in right of use assets and lease liabilities | $ 4.4 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 319 | $ (2,637) | $ 825 | $ (6,236) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (23,680) | $ (7,415) | $ (47,580) | $ (23,477) |
Basic and diluted weighted average number of common shares outstanding | 34,599 | 33,822 | 34,292 | 33,589 |
Loss per share: | ||||
Basic | $ (0.68) | $ (0.22) | $ (1.39) | $ (0.70) |
Diluted | $ (0.68) | $ (0.22) | $ (1.39) | $ (0.70) |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Diluted earnings per share for the conversion value of the notes | 0 | 0 | 0 | 0 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 3,030 | $ 3,652 | $ 9,499 | $ 9,378 |
Cost of Revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 184 | 221 | 562 | 558 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 798 | 723 | 2,167 | 1,769 |
Selling and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 770 | 1,058 | 2,035 | 2,709 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,278 | $ 1,650 | 3,860 | $ 4,342 |
Restructuring [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 875 |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Feb. 29, 2020 | Nov. 30, 2020 |
Number of Options | ||
Outstanding, beginning balance | 1,071 | |
Granted | ||
Exercised | (70) | |
Forfeited or expired | (152) | |
Outstanding, ending balance | 1,071 | 849 |
Exercisable | 578 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance | $ 14.65 | |
Granted | ||
Exercised | 4.03 | |
Forfeited or expired | 17.52 | |
Outstanding, ending balance | $ 14.65 | 15.02 |
Exercisable | $ 14.37 | |
Weighted average remaining contractual life, Outstanding | 6 years 2 months 12 days | 5 years 9 months 18 days |
Weighted average remaining contractual life, Exercisable | 4 years 9 months 18 days | |
Aggregate intrinsic value, Outstanding | $ 408 | |
Aggregate intrinsic value, Exercisable | $ 408 |
STOCKHOLDERS' EQUITY (Summary_2
STOCKHOLDERS' EQUITY (Summary of Restricted Stock Shares and RSUs Activity) (Details) shares in Thousands | 9 Months Ended |
Nov. 30, 2020$ / sharesshares | |
Number of Restricted Shares, PSUs and RSUs | |
Outstanding, beginning balance | 2,215 |
Granted | 1,856 |
Vested | (636) |
Forfeited | (277) |
Outstanding, ending balance | 3,158 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance | $ / shares | $ 14.47 |
Granted | $ / shares | 7.94 |
Vested | $ / shares | 15.07 |
Forfeited | $ / shares | 12.44 |
Outstanding, ending balance | $ / shares | $ 10.69 |
Vested, Shares Retained to Cover Statutory Minimum Withholding Taxes | 207 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) $ in Millions | 9 Months Ended |
Nov. 30, 2020USD ($) | |
Equity [Abstract] | |
Unrecognized share-based compensation cost | $ 25.9 |
Unrecognized compensation cost, recognition period | 3 years 8 months 12 days |
CONCENTRATION OF RISK (Narrativ
CONCENTRATION OF RISK (Narrative) (Details) - Supplier | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | |
Customer Concentration Risk [Member] | Major Customer One [Member] | Heavy Equipment Industry [Member] | Revenues [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 19.00% | 14.00% | 16.00% | 13.00% | |
Customer Concentration Risk [Member] | Major Customer One [Member] | Heavy Equipment Industry [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 19.00% | 19.00% | |||
Supplier Concentration Risk [Member] | Inventory Purchases [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 58.00% | 42.00% | 61.00% | 46.00% | |
Number of suppliers | 4 | 3 | 4 | 3 | |
Supplier Concentration Risk [Member] | Accounts Payable [Member] | Minimum [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 10.00% |
CONCENTRATION OF RISK - Schedul
CONCENTRATION OF RISK - Schedule of Significant Customers and Significant Suppliers Concentration Risk Percentage (Details) - Accounts Payable [Member] - Supplier Concentration Risk [Member] | 9 Months Ended | 12 Months Ended |
Nov. 30, 2020 | Feb. 29, 2020 | |
Supplier A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 7.00% | 11.00% |
Supplier B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 14.00% | 11.00% |
Supplier C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 14.00% | 8.00% |
PRODUCT WARRANTIES (Details)
PRODUCT WARRANTIES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Nov. 30, 2020 | Aug. 31, 2020 | Feb. 29, 2020 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Product performance | $ 1,184 | $ 987 | |
Warranty Reserves [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Product performance | $ 1,400 | ||
Product performance payment | $ 1,400 | ||
Minimum [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Warranty Term | 1 year | ||
Maximum [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Warranty Term | 2 years |
PRODUCT WARRANTIES - Activity i
PRODUCT WARRANTIES - Activity in Accrued Warranty Costs Liability (Details) - Warranty Reserves [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | $ 987 | $ 1,399 |
Charged to costs and expenses | 2,354 | 657 |
Deductions | (2,157) | (703) |
Balance at end of period | $ 1,184 | $ 1,353 |
OTHER FINANCIAL INFORMATION (Sc
OTHER FINANCIAL INFORMATION (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 | |
Other Financial Information Schedule Of Other Current Liabilities Details [Abstract] | |||
Operating lease liabilities | $ 6,148 | $ 4,662 | |
Taxes payable | 2,487 | 2,266 | |
Warranty reserves | 1,184 | 987 | |
Customer deposit | 2,924 | 1,377 | |
Litigation reserve | 2,200 | 1,500 | |
Interest payable | 1,532 | 481 | |
Other | [1] | 4,641 | 4,880 |
Total other current liabilities | $ 21,116 | $ 16,153 | |
[1] | Amount represents accruals for various operating expense such as professional fees, vendor incentives and other estimates that are expected to be paid within the next 12 months. |
OTHER FINANCIAL INFORMATION (_2
OTHER FINANCIAL INFORMATION (Schedule of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Other Financial Information [Abstract] | ||
Deferred revenue | $ 24,214 | $ 27,452 |
Deferred compensation plan liability | 6,965 | 5,919 |
Other | 4,079 | 1,673 |
Total other non-current liabilities | $ 35,258 | $ 35,044 |
OTHER FINANCIAL INFORMATION (_3
OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||||
Amortization of discount and issue costs | $ 7,712 | $ 11,031 | ||
Other interest expense | $ 356 | $ 240 | 955 | 650 |
Total interest expense | 3,880 | 4,987 | 11,814 | 15,998 |
2020 Convertible Notes [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Stated interest | 356 | 93 | 1,352 | |
Amortization of discount and issue costs | 1,038 | 289 | 3,989 | |
Interest expense on convertible notes | 1,394 | 382 | 5,341 | |
2025 Convertible Notes [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Stated interest | 1,150 | 1,150 | 3,463 | 3,476 |
Amortization of discount and issue costs | 2,374 | 2,203 | 7,014 | 6,531 |
Interest expense on convertible notes | $ 3,524 | $ 3,353 | $ 10,477 | $ 10,007 |
OTHER FINANCIAL INFORMATION (_4
OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Parenthetical) (Details) | Nov. 30, 2020 | Nov. 30, 2019 |
2020 Convertible Notes [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Interest rate (as a percent) | 1.625% | 1.625% |
2025 Convertible Notes [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Interest rate (as a percent) | 2.00% | 2.00% |
OTHER FINANCIAL INFORMATION (_5
OTHER FINANCIAL INFORMATION (Schedule of Cash Payments for Interest and Income Taxes) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash payments for interest and income taxes: | ||
Interest expense paid | $ 2,983 | $ 4,368 |
Income tax paid, net of refunds | $ 653 | $ 749 |
SEGMENT INFORMATION AND GEOGR_3
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
May 31, 2020Segment | Feb. 29, 2020Unit | Nov. 30, 2019SegmentUnit | Feb. 29, 2020Segment | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | Segment | 3 | 2 | 2 | |
Number of reporting units | 4 | 2 | ||
Number of reporting units under each reportable segments | 2 |
SEGMENT INFORMATION AND GEOGR_4
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Schedule of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 88,012 | $ 96,597 | $ 251,764 | $ 278,903 |
Gross profit | $ 35,005 | $ 36,884 | $ 96,868 | $ 109,965 |
Gross margin | 40.00% | 38.00% | 38.00% | 39.00% |
Adjusted EBITDA | $ 8,771 | $ 10,905 | $ 20,681 | $ 29,121 |
Reportable Segments [Member] | Software & Subscription Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 34,396 | 33,405 | 96,121 | 90,121 |
Gross profit | $ 17,266 | $ 15,928 | $ 47,583 | $ 39,688 |
Gross margin | 50.00% | 48.00% | 50.00% | 44.00% |
Adjusted EBITDA | $ 8,927 | $ 7,254 | $ 22,854 | $ 13,575 |
Reportable Segments [Member] | Telematics Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 44,071 | 51,895 | 130,342 | 152,027 |
Gross profit | $ 13,804 | $ 16,116 | $ 39,885 | $ 54,344 |
Gross margin | 31.00% | 31.00% | 31.00% | 36.00% |
Adjusted EBITDA | $ 766 | $ 4,700 | $ 2,413 | $ 17,904 |
Reportable Segments [Member] | LoJack U.S. SVR Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,545 | 11,297 | 25,301 | 36,755 |
Gross profit | $ 3,935 | $ 4,840 | $ 9,400 | $ 15,933 |
Gross margin | 41.00% | 43.00% | 37.00% | 43.00% |
Adjusted EBITDA | $ 87 | $ (182) | $ (1,259) | $ 1,121 |
Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ (1,009) | $ (867) | $ (3,327) | $ (3,479) |
SEGMENT INFORMATION AND GEOGR_5
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Summary of Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 30 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | |
Segment Information Summary Of Adjustments Results Of Ebitda Details [Abstract] | |||||
Net loss | $ (23,680) | $ (7,415) | $ (47,580) | $ (23,477) | |
Investment income | (584) | (1,108) | (1,282) | (4,445) | |
Interest expense | 3,880 | 4,987 | 11,814 | 15,998 | |
Income tax expense (benefit) | 319 | (2,637) | 825 | (6,236) | |
Depreciation | 5,025 | 5,018 | 15,008 | 14,054 | |
Amortization of intangible assets | 1,855 | 3,325 | 5,591 | 9,683 | |
Stock-based compensation | 3,030 | 3,652 | 8,624 | 9,378 | |
Loss on extinguishment of debt | 2,408 | 2,408 | |||
Impairment loss | 17,999 | 22,574 | |||
Restructuring charges | 92 | 848 | 2,551 | 3,120 | $ 15,000 |
Non-recurring legal expenses | 205 | 957 | 1,168 | 5,541 | |
Acquisition and integration related expenses | (382) | (1,572) | |||
Other | 630 | 488 | 1,388 | 1,525 | |
Adjusted EBITDA | $ 8,771 | $ 10,905 | $ 20,681 | $ 29,121 |
SEGMENT INFORMATION AND GEOGR_6
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Summary of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 88,012 | $ 96,597 | $ 251,764 | $ 278,903 |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 60,823 | 69,961 | 171,318 | 201,678 |
Europe, Middle East and Africa [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 13,771 | 14,818 | 45,214 | 41,625 |
South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,349 | 5,518 | 19,078 | 16,494 |
Asia and Pacific Rim [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,034 | 3,044 | 8,077 | 7,394 |
All other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,035 | $ 3,256 | $ 8,077 | $ 11,712 |
LEGAL PROCEEDINGS (Legal Procee
LEGAL PROCEEDINGS (Legal Proceedings) (Details) | Apr. 01, 2020USD ($) |
Second Patent (U.S. Pat. No. 8,032,278) [Member] | |
Gain Loss On Contingencies [Line Items] | |
Damages assessed and awarded, per unit | 5 |