Agilysys (AGYS) 10-Q 9 Feb 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2016	Feb. 03, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	AGILYSYS INC
Entity Central Index Key	78,749
Current Fiscal Year End Date	--03-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		23,228,660

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016	Mar. 31, 2015
Current assets:
Cash and cash equivalents	$ 52,713	$ 60,608	$ 75,067
Accounts receivable, net of allowance for doubtful accounts of $654 and $617, respectively	15,308	22,017
Inventories	2,084	2,692
Prepaid expenses and other current assets	8,593	10,184
Total current assets	78,698	95,501
Property and equipment, net	13,829	14,197
Goodwill	19,622	19,622
Intangible assets, net	8,542	8,576
Software development costs, net	48,537	44,215
Other non-current assets	2,477	3,046
Total assets	171,705	185,157
Current liabilities:
Accounts payable	8,623	7,761
Deferred revenue	27,243	33,241
Accrued liabilities	10,622	12,980
Capital lease obligations, current	119	118
Total current liabilities	46,607	54,100
Deferred income taxes, non-current	3,180	3,075
Capital lease obligations, non-current	136	215
Other non-current liabilities	4,076	4,294
Commitments and contingencies (see Note 7)
Shareholders' equity:
Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 31,606,831 shares issued; and 23,207,376 and 22,942,586 shares outstanding at December 31, 2016 and March 31, 2016, respectively	9,482	9,482
Treasury shares, 8,399,455 and 8,664,245 at December 31, 2016 and March 31, 2016, respectively	(2,521)	(2,600)
Capital in excess of stated value	(7,045)	(7,645)
Retained earnings	117,979	124,413
Accumulated other comprehensive loss	(189)	(177)
Total shareholders' equity	117,706	123,473
Total liabilities and shareholders' equity	$ 171,705	$ 185,157

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable	$ 654	$ 617
Accounts Receivable, Net, Current	$ 15,308	$ 22,017
Common stock, stated value	$ 0.30	$ 0.30
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	31,606,831	31,606,831
Common stock, shares outstanding	23,207,376	22,942,586
Treasury shares	8,399,455	8,664,245

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Net revenue:
Products	$ 10,006	$ 11,924	$ 30,257	$ 30,678
Support, maintenance and subscription services	16,234	14,896	47,087	44,460
Professional services	7,208	4,487	19,732	13,304
Total net revenue	33,448	31,307	97,076	88,442
Cost of goods sold:
Products (inclusive of developed technology amortization)	7,530	6,991	22,217	17,035
Support, maintenance and subscription services	4,464	4,076	12,714	11,413
Professional services	5,213	3,732	13,835	9,496
Total cost of goods sold	17,207	14,799	48,766	37,944
Gross profit	$ 16,241	$ 16,508	$ 48,310	$ 50,498
Gross Profit Ratio	48.60%	52.70%	49.80%	57.10%
Operating expenses:
Product development	$ 6,847	$ 6,969	$ 20,647	$ 20,021
Sales and marketing	5,000	4,618	15,746	14,396
General and administrative	3,678	5,517	13,692	15,897
Depreciation of fixed assets	598	569	1,791	1,627
Amortization of intangibles	353	321	1,031	937
Restructuring, severance and other charges	1,394	8	1,484	(53)
Asset Impairment Charges	0	0	0	(175)
Litigation Settlement, Expense	0	185	85	185
Operating loss	(1,629)	(1,679)	(6,166)	(2,337)
Other (income) expense:
Interest income	(86)	(21)	(135)	(70)
Interest expense	3	8	11	20
Other expense, net	62	63	140	40
Loss before taxes	(1,608)	(1,729)	(6,182)	(2,327)
Income tax expense (benefit)	129	(56)	252	(100)
Net loss	$ (1,737)	$ (1,673)	$ (6,434)	$ (2,227)
Weighted Average Number of Shares Outstanding, Basic	22,611	22,493	22,605	22,479
Weighted average shares outstanding:
Earnings Per Share, Basic	$ (0.08)	$ (0.07)	$ (0.28)	$ (0.10)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,737)	$ (1,673)	$ (6,434)	$ (2,227)
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent	(1,737)	(1,673)	(6,434)	(2,227)
Other comprehensive loss, net of tax:
Unrealized foreign currency translation adjustments	(5)	(8)	(12)	(27)
Total comprehensive loss	$ (1,742)	$ (1,681)	$ (6,446)	$ (2,254)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating activities
Net loss	$ (6,434,000)	$ (2,227,000)
Adjustments to reconcile net loss to net cash used in operating activities
Payments for restructuring, severance and other charges	(819,000)	643,000
Assets, Fair Value Adjustment	0	(175,000)
Net legal settlements	(100,000)	170,000
Gain (Loss) on Disposition of Property Plant Equipment	5,000	262,000
Depreciation	1,791,000	1,627,000
Amortization	1,031,000	1,704,000
Amortization of software development	5,705,000	0
Increase (Decrease) in Deferred Income Taxes	105,000	0
Share-based compensation	782,000	2,318,000
Life Insurance, Corporate or Bank Owned, Change in Value	0	0
Changes in operating assets and liabilities:
Accounts receivable	6,668,000	4,527,000
Inventories	597,000	(1,696,000)
Prepaid expense	1,306,000	(2,769,000)
Accounts payable	714,000	(4,399,000)
Deferred revenue	(4,601,000)	5,516,000
Accrued liabilities	(2,558,000)	4,394,000
Income taxes payable	104,000	(65,000)
Other changes, net	(541,000)	(230,000)
Net cash used in operating activities	5,393,000	8,314,000
Investing activities
Payments to Acquire Productive Assets	(2,199,000)	(3,617,000)
Payments for Capitalized Software Development	(10,302,000)	(13,488,000)
Payments for (Proceeds from) Life Insurance Policies	(1,000)	(65,000)
Net cash used in investing activities	(12,502,000)	(17,170,000)
Financing activities
Repurchase of common shares to satisfy employee tax withholding	(404,000)	(435,000)
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	(197,000)	0
Principal payments under long-term obligations	(86,000)	(29,000)
Net cash used in financing activities from discontinued operations	(687,000)	(464,000)
Net cash used in financing activities	(99,000)	(95,000)
Cash and Cash Equivalents, Period Increase (Decrease)	(7,895,000)	(9,415,000)
Cash and cash equivalents at beginning of period	52,713,000	65,652,000
Capital Expenditures Incurred but Not yet Paid	293,000	261,000
Construction in Progress Expenditures Incurred but Not yet Paid	684,000	505,000
Payments for Tenant Improvements	$ 0	$ 997,000

Nature of Operations and Financ

Nature of Operations and Financial Statement Presentation	9 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Financial Statement Presentation	Nature of Operations and Financial Statement Presentation Nature of Operations Agilysys is a leading technology company that provides innovative software for point-of-sale (POS), property management (PMS), inventory and procurement, workforce management, analytics, document management and mobile and wireless solutions and services to the hospitality industry. Our solutions and services allow property managers to better connect, interact and transact with their customers and enhance their customer relationships by streamlining operations, improving efficiency, increasing guest recruitment and wallet share, and enhancing the overall guest experience. We serve four major market sectors: Gaming, both corporate and tribal; Hotels, Resorts and Cruise; Foodservice Management; and Restaurants, Universities, Stadia and Healthcare. A significant portion of our consolidated revenue is derived from contract support, maintenance and subscription services. We operate throughout North America, Europe and Asia, with corporate services located in Alpharetta, GA. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include our accounts consolidated with our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Our fiscal year ends on March 31st. References to a particular year refer to the fiscal year ending in March of that year. For example, fiscal 2017 refers to the fiscal year ending March 31, 2017. Our unaudited interim financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to the Quarterly Report on Form 10-Q (Quarterly Report) under the Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 10-01 of Regulation S-X under the Exchange Act. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations relating to interim financial statements. The Condensed Consolidated Balance Sheet as of December 31, 2016 , as well as the Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Loss, and the Condensed Consolidated Statements of Cash Flow for the three and nine months ended December 31, 2016 and 2015 , are unaudited. However, these financial statements have been prepared on the same basis as those in the audited annual financial statements. In the opinion of management, all adjustments of a recurring nature necessary to fairly state the results of operations, financial position, and cash flows have been made. These unaudited interim financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended March 31, 2016 , filed with the Securities and Exchange Commission (SEC) on June 10, 2016. Correction of Errors In connection with the preparation of our Condensed Consolidated Financial Statements for the second quarter of fiscal 2016, we identified errors in the manner in which we recognized revenue on contract support. Contract support revenue is recognized ratably over the term of the customer arrangement. In certain instances where contract support is an element of a multiple-element arrangement, we use a hierarchy to determine the fair value allocation for recognition of revenue on each deliverable. An error related to an input used in this allocation resulted in the overstatement of contract, maintenance, and support revenue of $0.4 million for the three months ended June 30, 2015. The error was identified and corrected during the second quarter of fiscal 2016. Additionally, during the second quarter of fiscal 2016, we identified errors in the manner in which we capitalize internal labor on software development projects. An error in the method by which internal resources account for administrative time resulted in the over capitalization of costs during the last six months of fiscal 2015 and the first three months of fiscal 2016. The error for each of the three months ended December 31, 2014, March 31, 2015, and June 30, 2015, was $0.1 million. We corrected these errors during the second quarter of fiscal 2016. In accordance with accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 99, Materiality), we assessed the materiality of the errors and concluded that the errors were not material to any of our previously issued financial statements. Correction of the errors is also not material to the three and nine months ended December 31, 2015 or fiscal 2016 annual results.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies A detailed description of our significant accounting policies can be found in the audited financial statements for the fiscal year ended March 31, 2016 , included in our Annual Report on Form 10-K. There have been no material changes to our significant accounting policies and estimates from those disclosed therein. Adopted and Recently Issued Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 clarifies the classification of receipts and payments in the statement of cash flows. ASU 2016-15 provides guidance related to (1) debt prepayment or debt extinguishment costs, (2) settlement and payment of zero coupon debt instruments, (3) contingent consideration, (4) proceeds from settlement of insurance claims, (5) proceeds from settlement of corporate and bank owned life insurance policies, (6) distributions from equity method investees, (7) cash receipts from beneficial interests obtained by a transferor, and (8) general guidelines for cash receipts and payments that have more than one aspect of classification. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, including interim periods. Early adoption is permitted. We are evaluating the impact the adopting this guidance will have on future financial statements and disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this update involve several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards, and classification on the statement of cash flows. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers. The amendments in this update clarify the implementation guidance on principals versus agent considerations in FASB ASC 606. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of ASU 2014-09 described below. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which converges the FASB and the International Accounting Standards Board standard on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. In August 2015, the FASB amended the effective date and early adoption is permitted only for fiscal years beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements or related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. The amendments in this update include a new FASB ASC Topic 842, which supersedes Topic 840. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities as of the beginning of interim or annual reporting periods. We are evaluating the impact of adopting this guidance on our consolidated financial statements. The FASB has also issued the following standards which provide additional clarification and implementation guidance on the previously issued ASU 2014-09 and have the same effective date as the original standard: ASU 2016-12 and ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (Topic 606). We are currently evaluating the impact that the adoption of the related ASU 2014-09 standards will have on our consolidated financial statements or related disclosures. Management continually evaluates the potential impact, if any, of all recent accounting pronouncements on our consolidated financial statements or related disclosures and, if significant, makes the appropriate disclosures required by such new accounting pronouncements.

Restructuring and Related Charg

Restructuring and Related Charges	9 Months Ended
	Dec. 31, 2016
Restructuring Charges [Abstract]
Restructuring and Related Charges	Restructuring Charges We recognize restructuring charges when a plan that materially changes the scope of our business or the manner in which that business is conducted is adopted and communicated to the impacted parties, and the expenses have been incurred or are reasonably estimable. Fiscal 2016 Restructuring Activity Q4 - In the fourth quarter of fiscal 2016, we continued our efforts to better align product development and general and administrative functions with our company strategy and to reduce operating costs and announced a partnership to resell a third party workforce management solution. We recorded $0.3 million in restructuring charges related to the Q4 fiscal 2016 restructuring activity in fiscal 2016, comprised of severance and other employee related benefits. During the third quarter of fiscal 2017, we completed these activities and recorded $0.2 million in restructuring charges comprised of severance and other employee related benefits and early contract termination costs. We do not anticipate any additional costs associated with this restructuring activity. As of December 31, 2016, we had a remaining liability of $0.2 million . Following is a reconciliation of the beginning and ending balances of the restructuring liability: Balance at Balance at March 31, Provision / December 31, (In thousands) 2016 Adjustments Payments 2016 Fiscal 2016 Restructuring Plan: Severance and other employment costs $ 311 $ 170 $ (305 ) $ 176 Early contract termination costs $ — $ 43 $ — $ 43 Total restructuring costs $ 311 $ 213 $ (305 ) $ 219

Intangible Assets

Intangible Assets	9 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets and Software Development Costs The following table summarizes our intangible assets and software development costs: December 31, 2016 March 31, 2016 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In thousands) amount amortization amount amount amortization amount Amortized intangible assets: Customer relationships $ 10,775 $ (10,775 ) $ — $ 10,775 $ (10,775 ) $ — Non-competition agreements 2,700 (2,700 ) — 2,700 (2,700 ) — Developed technology 10,317 (10,055 ) 262 10,660 (10,398 ) 262 Accumulated impairment (262 ) N/A (262 ) (262 ) N/A (262 ) Trade names 230 (88 ) 142 230 (54 ) 176 Patented technology 80 (80 ) — 80 (80 ) — 23,840 (23,698 ) 142 24,183 (24,007 ) 176 Unamortized intangible assets: Trade names 9,200 N/A 9,200 9,200 N/A 9,200 Accumulated impairment (570 ) N/A (570 ) (570 ) N/A (570 ) Finite life reclassification (230 ) N/A (230 ) (230 ) N/A (230 ) 8,400 N/A 8,400 8,400 N/A 8,400 Total intangible assets $ 32,240 $ (23,698 ) $ 8,542 $ 32,583 $ (24,007 ) $ 8,576 Software development costs $ 47,989 $ (8,049 ) $ 39,940 $ 6,359 $ (2,344 ) $ 4,015 Project expenditures not yet in use 9,988 — 9,988 41,591 — 41,591 Accumulated impairment (1,391 ) N/A (1,391 ) (1,391 ) N/A (1,391 ) Total software development costs $ 56,586 $ (8,049 ) $ 48,537 $ 46,559 $ (2,344 ) $ 44,215 During the first quarter of fiscal 2017, we announced general availability of our rGuest® Stay property management solution and placed into service $31.2 million of related software development costs. Additionally, during the second quarter of fiscal 2017, we announced general availability of our rGuest® Buy point of sale solution and placed into service $10.4 million of related software development costs. Amortization of these internally developed technologies are included in Products cost of goods sold and was $2.1 million for the three months ended December 31, 2016 , and $5.0 million for the nine months ended December 31, 2016 . The useful life of each asset is 5 years. The following table summarizes our remaining estimated amortization expense relating to in service intangible assets and software development costs. Estimated Amortization (In thousands) Expense Fiscal year ending March 31, 2017 $ 2,317 2018 9,272 2019 9,150 2020 8,411 2021 8,326 2022 1,215 Total $ 38,691 Intangible assets are comprised of acquired and internally developed technology to be sold, leased, or otherwise marketed and other non-software assets including, customer relationships, non-competition agreements, trade names and patented technology. Amortization expense of acquired and internally developed technology is included in Products cost of goods sold and was $2.3 million and $0.3 million for the three months ended December 31, 2016 and 2015 , and $5.7 million and $0.8 million for the nine months ended December 31, 2016 and 2015 . Amortization expense of non-software intangibles is included in operating expenses along with acquired and internally developed internal use software. Internal use software is classified as property and equipment in the Consolidated Balance Sheets. Total capitalization of internal use software was $0.3 million and $0.2 million during the three months ended December 31, 2016 and 2015 and $0.9 million and $0.5 million during the nine months ended December 31, 2016 and 2015. Amortization expense of non-software intangible and internal use assets was not significant for the three and nine months ended December 31, 2016 and 2015 . Capitalized software development costs that are internally developed to be sold, leased, or otherwise marketed, are carried on our balance sheet at net realizable value, net of accumulated amortization. We capitalized approximately $3.3 million and $3.2 million during the three months ended December 31, 2016 and 2015 , and $10.0 million and $10.3 million during the nine months ended December 31, 2016 and 2015 .

Additional Balance Sheet Inform

Additional Balance Sheet Information	9 Months Ended
	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Additional Balance Sheet Information	Additional information related to the Condensed Consolidated Balance Sheets is as follows: (In thousands) December 31, March 31, Accrued liabilities: Salaries, wages, and related benefits $ 7,380 $ 9,751 Other taxes payable 697 818 Accrued legal settlements — 100 Restructuring liabilities 219 311 Severance liabilities 837 6 Professional fees 508 714 Deferred rent 428 400 Contingent consideration — 197 Other 553 683 Total $ 10,622 $ 12,980 Other non-current liabilities: Uncertain tax positions $ 1,468 $ 1,469 Deferred rent 2,532 2,746 Other 76 79 Total $ 4,076 $ 4,294 Additional Balance Sheet Information Additional information related to the Condensed Consolidated Balance Sheets is as follows: (In thousands) December 31, March 31, Accrued liabilities: Salaries, wages, and related benefits $ 7,380 $ 9,751 Other taxes payable 697 818 Accrued legal settlements — 100 Restructuring liabilities 219 311 Severance liabilities 837 6 Professional fees 508 714 Deferred rent 428 400 Contingent consideration — 197 Other 553 683 Total $ 10,622 $ 12,980 Other non-current liabilities: Uncertain tax positions $ 1,468 $ 1,469 Deferred rent 2,532 2,746 Other 76 79 Total $ 4,076 $ 4,294 Accounts Receivable, net Accounts receivable, net of allowance for doubtful accounts was $15.3 million and $22.0 million as of December 31, 2016 and March 31, 2016 , respectively. The related allowance for doubtful accounts was $0.7 million and $0.6 million as of December 31, 2016 and March 31, 2016 , respectively. On January 12, 2015, an involuntary bankruptcy petition was filed against Caesars Entertainment Operating Company, Inc. (Caesars) under Chapter 11 of the U.S. Bankruptcy Code. On January 15, 2015, Caesars and certain of its affiliates filed a voluntary bankruptcy petition under Chapter 11. Those cases have been consolidated in the United States Bankruptcy Court for the Northern District of Illinois. At March 31, 2015, our accounts receivable owing by Caesars and its affiliates who have filed a bankruptcy petition totaled approximately $ 3.2 million, including both pre- and post-petition claims. As of May 26, 2015, we filed a proof of claim with the Bankruptcy Court identifying approximately $ 0.7 million of pre-petition claims. In January 2016, we filed an amended proof of claim with the Bankruptcy Court identifying approximately $0.2 million of pre-petition claim in addition to those filed on May 26, 2015. As of December 31, 2016 , approximately $0.7 million of pre-petition claims remain outstanding. In January 2017, the Bankruptcy Court approved Caesars’ restructuring plan, which included assumption of our pre-petition contracts and payment of our pre-petition claims of approximately $0.7 million, subject to the condition of the plan. The planned reorganization is expected to be occur later in 2017.

Income Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following table compares our income tax benefit and effective tax rates for the three and nine months ended December 31, 2016 and 2015 : Three months ended Nine months ended December 31, December 31, (Dollars in thousands) 2016 2015 2016 2015 Income tax expense (benefit) $ 129 $ (56 ) $ 252 $ (100 ) Effective tax rate (8.0 )% 3.2 % (4.1 )% 4.3 % For the three and nine months ended December 31, 2016, the effective tax rate was different than the statutory rate due primarily to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, foreign and state taxes, and other U.S. permanent book to tax differences. For the three and nine months ended December 31, 2015, the effective tax rate was different than the statutory rate due primarily to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, an adjustment to true-up indefinite-lived intangibles, a refunded settlement of an unrecognized tax benefit, foreign and state taxes, and other U.S. permanent book to tax differences. We have recorded a valuation allowance offsetting substantially all of our deferred tax assets. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. Because of our losses in prior periods, management believes that it is more-likely-than-not that we will not realize the benefits of these deductible differences.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Commitments and Contingencies Agilysys is the subject of various threatened or pending legal actions and contingencies in the normal course of conducting its business. We provide for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on our future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount or timing of the resolution of such matters. While it is not possible to predict with certainty, management believes that the ultimate resolution of such individual or aggregated matters will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows. On April 6, 2012, Ameranth, Inc. filed a complaint against us for patent infringement in the United States District Court for the Southern District of California. Ameranth alleges, among other things, that point-of-sale and property management and other hospitality information technology products, software, components and/or systems sold by us infringe a patent owned by Ameranth purporting to cover generation and synchronization of menus, including restaurant menus, event tickets, and other products across fixed, wireless and/or internet platforms as well as synchronization of hospitality information and hospitality software applications across fixed, wireless and internet platforms. The complaint seeks monetary damages, injunctive relief, costs and attorneys' fees. At this time, we are not able to predict the outcome of this lawsuit, or any possible monetary exposure associated with the lawsuit. However, we dispute the allegations of wrongdoing and are vigorously defending ourselves in this matter.

(Loss) Earnings Per Share

(Loss) Earnings Per Share	9 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	(Loss) Earnings per Share The following data shows the amounts used in computing (loss) earnings per share and the effect on income and the weighted average number of shares of dilutive potential common shares. Three months ended Nine months ended December 31, December 31, (In thousands, except per share data) 2016 2015 2016 2015 Numerator: Net loss $ (1,737 ) $ (1,673 ) $ (6,434 ) $ (2,227 ) Denominator: Weighted average shares outstanding 22,611 22,493 22,605 22,479 Loss per share - basic and diluted: Loss per share $ (0.08 ) $ (0.07 ) $ (0.28 ) $ (0.10 ) Anti-dilutive stock options, SSARs, restricted shares and performance shares 1,471 1,804 1,399 1,633 Basic (loss) earnings per share is computed as net (loss) income available to common shareholders divided by the weighted average basic shares outstanding. The outstanding shares used to calculate the weighted average basic shares excludes 595,625 and 455,574 of restricted shares at December 31, 2016 and 2015 , respectively, as these shares were issued but were not vested and, therefore, not considered outstanding for purposes of computing basic (loss) earnings per share at the balance sheet dates. Diluted (loss) earnings per share includes the effect of all potentially dilutive securities on earnings per share. We have stock options, stock-settled appreciation rights (SSARs) and unvested restricted shares that are potentially dilutive securities. When a loss is reported, the denominator of diluted (loss) earnings per share cannot be adjusted for the dilutive impact of share-based compensation awards because doing so would be anti-dilutive. Therefore, for the three months and nine months ended December 31, 2016 and 2015 , basic weighted-average shares outstanding were used in calculating the diluted net loss per share.

Share-based Compensation

Share-based Compensation	9 Months Ended
	Dec. 31, 2016
Share-based Compensation [Abstract]
Share-based Compensation	Share-based Compensation We may grant non-qualified stock options, incentive stock options, SSARs, restricted shares, and restricted share units under our shareholder-approved 2016 Stock Incentive Plan (the 2016 Plan) for up to 2.0 million common shares, plus 957,575 common shares, the number of shares that were remaining for grant under the 2011 Stock Incentive Plan (the 2011 Plan) as of the effective date of the 2016 Plan, plus the number of shares remaining for grant under the 2011 Plan that are forfeited, settled in cash, canceled or expired. The maximum aggregate number of restricted shares or restricted share units that may be granted under the 2016 Plan is 1.25 million . With respect to awards that are intended to qualify for the performance-based exception to the deductibility limitations of Section 162(m) of the Internal Revenue Code, the maximum number of shares subject to stock options or SSARs that may be granted to an individual in a calendar year is 800,000 shares, and the maximum number of shares subject to restricted shares or restricted share units that may be granted to an individual in a calendar year is 400,000 shares. We have a shareholder-approved 2011 Plan, a 2006 Stock Incentive Plan (the 2006 Plan) and a 2000 Stock Incentive Plan that still have vested awards outstanding. Awards are no longer being granted from these incentive plans. We may distribute authorized but unissued shares or treasury shares to satisfy share option and appreciation right exercises or restricted share and performance share awards. We record compensation expense related to stock options, SSARs, restricted shares, and performance shares granted to certain employees and non-employee directors based on the fair value of the awards on the grant date. The fair value of restricted share and performance share awards is based on the closing price of our common shares on the grant date. The fair value of stock option and SSARs awards is estimated on the grant date using the Black-Scholes-Merton option pricing model, which includes assumptions regarding the risk-free interest rate, dividend yield, life of the award, and the volatility of our common shares. The following table summarizes the share-based compensation expense for options, SSARs, restricted and performance awards included in the Condensed Consolidated Statements of Operations: Three months ended Nine months ended December 31, December 31, (In thousands) 2016 2015 2016 2015 Product development $ 498 $ 326 $ 826 $ 802 Sales and marketing 124 46 177 38 General and administrative (680 ) 546 (221 ) 1,478 Total share-based compensation expense (58 ) 918 782 2,318 Stock Options The following table summarizes the activity during the nine months ended December 31, 2016 for stock options awarded under the 2006 Plan and the 2000 Stock Incentive Plan: Number Weighted- Remaining Aggregate (In thousands, except share and per share data) (per share) (in years) Outstanding at April 1, 2016 545,000 $ 15.54 Granted — — Exercised — — Cancelled/expired (545,000 ) 15.54 Outstanding and exercisable at December 31, 2016 — $ — — $ — Stock-Settled Stock Appreciation Rights SSARs are rights granted to an employee to receive value equal to the difference in the price of our common shares on the date of the grant and on the date of exercise. This value is settled in common shares of Agilysys. The following table summarizes the activity during the nine months ended December 31, 2016 for SSARs awarded under the 2011 Plan: Number Weighted- Remaining Aggregate (In thousands, except share and per share data) (per right) (in years) Outstanding at April 1, 2016 794,365 $ 10.06 Granted 64,231 10.47 Exercised (324 ) 9.60 Forfeited (122,934 ) 10.18 Cancelled/expired (5,685 ) 9.60 Outstanding at December 31, 2016 729,653 $ 10.08 3.4 $ 742 Exercisable at December 31, 2016 471,590 $ 10.15 2.1 $ 575 As of December 31, 2016 , total unrecognized stock based compensation expense related to non-vested SSARs was $0.5 million , which is expected to be recognized over a weighted-average vesting period of 1.43 years. Restricted Shares We granted shares to certain of our Directors, executives and key employees, the vesting of which is service-based. The following table summarizes the activity during the nine months ended December 31, 2016 for restricted shares awarded under the 2016 and 2011 Plan: Number Weighted- (In thousands, except share and per share data) (per share) Outstanding at April 1, 2016 335,773 $ 12.06 Granted 404,328 10.30 Vested (9,250 ) 13.51 Forfeited (134,226 ) 12.05 Outstanding at December 31, 2016 596,625 $ 10.84 The weighted-average grant date fair value of the restricted shares is determined based upon the closing price of our common shares on the grant date. As of December 31, 2016 , total unrecognized stock based compensation expense related to non-vested restricted stock was $4.6 million , which is expected to be recognized over a weighted-average vesting period of 1.36 years. Performance Shares The following table summarizes the activity during the nine months ended December 31, 2016 for performance shares awarded under the 2011 Plan: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2016 7,812 $ 9.60 Granted — — Vested (7,812 ) 9.60 Outstanding at December 31, 2016 — $ — During the three months ended December 31, 2016, 61,168 of additional performance shares were granted and forfeited during the period.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Dec. 31, 2016
Fair Value Measurements [Abstract]
Fair Value, Measurement Inputs, Disclosure [Text Block]	10. Fair Value Measurements We estimate the fair value of financial instruments using available market information and generally accepted valuation methodologies. We assess the inputs used to measure fair value using a three-tier hierarchy. The hierarchy indicates the extent to which pricing inputs used in measuring fair value are observable in the market. Level 1 inputs include unadjusted quoted prices for identical assets or liabilities and are the most observable. Level 2 inputs include unadjusted quoted prices for similar assets and liabilities that are either directly or indirectly observable, or other observable inputs such as interest rates, foreign currency exchange rates, commodity rates, and yield curves. Level 3 inputs are not observable in the market and include our own judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs is reflected in the hierarchy assessment disclosed in the tables below. There were no significant transfers between Levels 1, 2, and 3 during the nine months ended December 31, 2016 and 2015 . The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value: Fair value measurement used Recorded Active Quoted Active (In thousands) December 31, 2016 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — current $ 2,357 — — $ 2,357 Corporate-owned life insurance — non-current $ 782 — — $ 782 Fair value measurement used Recorded Active Quoted Active (In thousands) March 31, 2016 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — current $ 2,357 — — $ 2,357 Corporate-owned life insurance — non-current $ 765 — — $ 765 Liabilities: Contingent consideration — current $ 197 — — $ 197 The recorded value of the corporate-owned life insurance policies is adjusted to the cash surrender value of the policies obtained from the third party life insurance providers, which are not observable in the market, and therefore, are classified within Level 3 of the fair value hierarchy. Changes in the cash surrender value of these policies are recorded within “Other (income) expense, net” in the Condensed Consolidated Statements of Operations. The fair value of the contingent consideration was determined by calculating the probability-weighted earn-out payments based on the assessment of the likelihood that certain milestones would be achieved. The following table presents a summary of changes in the fair value of the Level 3 assets: Nine months ended December 31, (In thousands) 2016 2015 Corporate-owned life insurance: Balance on April 1 $ 3,122 $ 2,493 Unrealized gain relating to instruments held at reporting date 16 6 Purchases, sales, issuances and settlements, net 1 65 Balance on December 31 $ 3,139 $ 2,564 The following tables present a summary of changes in the fair value of the Level 3 liabilities: Nine months ended December 31, (In thousands) 2016 2015 Contingent consideration Balance on April 1 $ 197 $ 112 Activity, payments and other charges (net) (197 ) (8 ) Balance on December 31 $ — $ 104

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Adopted and Recently Issued Accounting Pronouncements	Adopted and Recently Issued Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 clarifies the classification of receipts and payments in the statement of cash flows. ASU 2016-15 provides guidance related to (1) debt prepayment or debt extinguishment costs, (2) settlement and payment of zero coupon debt instruments, (3) contingent consideration, (4) proceeds from settlement of insurance claims, (5) proceeds from settlement of corporate and bank owned life insurance policies, (6) distributions from equity method investees, (7) cash receipts from beneficial interests obtained by a transferor, and (8) general guidelines for cash receipts and payments that have more than one aspect of classification. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, including interim periods. Early adoption is permitted. We are evaluating the impact the adopting this guidance will have on future financial statements and disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this update involve several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards, and classification on the statement of cash flows. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers. The amendments in this update clarify the implementation guidance on principals versus agent considerations in FASB ASC 606. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of ASU 2014-09 described below. We are evaluating the impact of adopting this guidance on our consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which converges the FASB and the International Accounting Standards Board standard on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. In August 2015, the FASB amended the effective date and early adoption is permitted only for fiscal years beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements or related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. The amendments in this update include a new FASB ASC Topic 842, which supersedes Topic 840. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities as of the beginning of interim or annual reporting periods. We are evaluating the impact of adopting this guidance on our consolidated financial statements. The FASB has also issued the following standards which provide additional clarification and implementation guidance on the previously issued ASU 2014-09 and have the same effective date as the original standard: ASU 2016-12 and ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (Topic 606). We are currently evaluating the impact that the adoption of the related ASU 2014-09 standards will have on our consolidated financial statements or related disclosures. Management continually evaluates the potential impact, if any, of all recent accounting pronouncements on our consolidated financial statements or related disclosures and, if significant, makes the appropriate disclosures required by such new accounting pronouncements.

Restructuring and Related Cha18

Restructuring and Related Charges (Tables)	9 Months Ended
	Dec. 31, 2016
Restructuring Charges [Abstract]
Reconciliation of the beginning and ending balances of the company's restructuring liabilities	ollowing is a reconciliation of the beginning and ending balances of the restructuring liability: Balance at Balance at March 31, Provision / December 31, (In thousands) 2016 Adjustments Payments 2016 Fiscal 2016 Restructuring Plan: Severance and other employment costs $ 311 $ 170 $ (305 ) $ 176 Early contract termination costs $ — $ 43 $ — $ 43 Total restructuring costs $ 311 $ 213 $ (305 ) $ 219

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	The following table summarizes our intangible assets and software development costs: December 31, 2016 March 31, 2016 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In thousands) amount amortization amount amount amortization amount Amortized intangible assets: Customer relationships $ 10,775 $ (10,775 ) $ — $ 10,775 $ (10,775 ) $ — Non-competition agreements 2,700 (2,700 ) — 2,700 (2,700 ) — Developed technology 10,317 (10,055 ) 262 10,660 (10,398 ) 262 Accumulated impairment (262 ) N/A (262 ) (262 ) N/A (262 ) Trade names 230 (88 ) 142 230 (54 ) 176 Patented technology 80 (80 ) — 80 (80 ) — 23,840 (23,698 ) 142 24,183 (24,007 ) 176 Unamortized intangible assets: Trade names 9,200 N/A 9,200 9,200 N/A 9,200 Accumulated impairment (570 ) N/A (570 ) (570 ) N/A (570 ) Finite life reclassification (230 ) N/A (230 ) (230 ) N/A (230 ) 8,400 N/A 8,400 8,400 N/A 8,400 Total intangible assets $ 32,240 $ (23,698 ) $ 8,542 $ 32,583 $ (24,007 ) $ 8,576 Software development costs $ 47,989 $ (8,049 ) $ 39,940 $ 6,359 $ (2,344 ) $ 4,015 Project expenditures not yet in use 9,988 — 9,988 41,591 — 41,591 Accumulated impairment (1,391 ) N/A (1,391 ) (1,391 ) N/A (1,391 ) Total software development costs $ 56,586 $ (8,049 ) $ 48,537 $ 46,559 $ (2,344 ) $ 44,215
Schedule of remaining estimated amortization expense	The following table summarizes our remaining estimated amortization expense relating to in service intangible assets and software development costs. Estimated Amortization (In thousands) Expense Fiscal year ending March 31, 2017 $ 2,317 2018 9,272 2019 9,150 2020 8,411 2021 8,326 2022 1,215 Total $ 38,691

Additional Balance Sheet Info20

Additional Balance Sheet Information (Tables)	9 Months Ended
	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Additional information related to the Company's Condensed Consolidated Balance Sheets	Additional information related to the Condensed Consolidated Balance Sheets is as follows: (In thousands) December 31, March 31, Accrued liabilities: Salaries, wages, and related benefits $ 7,380 $ 9,751 Other taxes payable 697 818 Accrued legal settlements — 100 Restructuring liabilities 219 311 Severance liabilities 837 6 Professional fees 508 714 Deferred rent 428 400 Contingent consideration — 197 Other 553 683 Total $ 10,622 $ 12,980 Other non-current liabilities: Uncertain tax positions $ 1,468 $ 1,469 Deferred rent 2,532 2,746 Other 76 79 Total $ 4,076 $ 4,294 Additional Balance Sheet Information Additional information related to the Condensed Consolidated Balance Sheets is as follows: (In thousands) December 31, March 31, Accrued liabilities: Salaries, wages, and related benefits $ 7,380 $ 9,751 Other taxes payable 697 818 Accrued legal settlements — 100 Restructuring liabilities 219 311 Severance liabilities 837 6 Professional fees 508 714 Deferred rent 428 400 Contingent consideration — 197 Other 553 683 Total $ 10,622 $ 12,980 Other non-current liabilities: Uncertain tax positions $ 1,468 $ 1,469 Deferred rent 2,532 2,746 Other 76 79 Total $ 4,076 $ 4,294 Accounts Receivable, net Accounts receivable, net of allowance for doubtful accounts was $15.3 million and $22.0 million as of December 31, 2016 and March 31, 2016 , respectively. The related allowance for doubtful accounts was $0.7 million and $0.6 million as of December 31, 2016 and March 31, 2016 , respectively. On January 12, 2015, an involuntary bankruptcy petition was filed against Caesars Entertainment Operating Company, Inc. (Caesars) under Chapter 11 of the U.S. Bankruptcy Code. On January 15, 2015, Caesars and certain of its affiliates filed a voluntary bankruptcy petition under Chapter 11. Those cases have been consolidated in the United States Bankruptcy Court for the Northern District of Illinois. At March 31, 2015, our accounts receivable owing by Caesars and its affiliates who have filed a bankruptcy petition totaled approximately $ 3.2 million, including both pre- and post-petition claims. As of May 26, 2015, we filed a proof of claim with the Bankruptcy Court identifying approximately $ 0.7 million of pre-petition claims. In January 2016, we filed an amended proof of claim with the Bankruptcy Court identifying approximately $0.2 million of pre-petition claim in addition to those filed on May 26, 2015. As of December 31, 2016 , approximately $0.7 million of pre-petition claims remain outstanding. In January 2017, the Bankruptcy Court approved Caesars’ restructuring plan, which included assumption of our pre-petition contracts and payment of our pre-petition claims of approximately $0.7 million, subject to the condition of the plan. The planned reorganization is expected to be occur later in 2017.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Effective tax rates from continuing operations	The following table compares our income tax benefit and effective tax rates for the three and nine months ended December 31, 2016 and 2015 : Three months ended Nine months ended December 31, December 31, (Dollars in thousands) 2016 2015 2016 2015 Income tax expense (benefit) $ 129 $ (56 ) $ 252 $ (100 ) Effective tax rate (8.0 )% 3.2 % (4.1 )% 4.3 %

(Loss) Earnings per Share (Tabl

(Loss) Earnings per Share (Tables)	9 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Computing (loss) earnings per share and the effect on income and the weighted average number of dilutive potential common shares	The following data shows the amounts used in computing (loss) earnings per share and the effect on income and the weighted average number of shares of dilutive potential common shares. Three months ended Nine months ended December 31, December 31, (In thousands, except per share data) 2016 2015 2016 2015 Numerator: Net loss $ (1,737 ) $ (1,673 ) $ (6,434 ) $ (2,227 ) Denominator: Weighted average shares outstanding 22,611 22,493 22,605 22,479 Loss per share - basic and diluted: Loss per share $ (0.08 ) $ (0.07 ) $ (0.28 ) $ (0.10 ) Anti-dilutive stock options, SSARs, restricted shares and performance shares 1,471 1,804 1,399 1,633

Share-based Compensation (Table

Share-based Compensation (Tables)	9 Months Ended
	Dec. 31, 2016
Share-based Compensation [Abstract]
Summary of share-based compensation expense for options	The following table summarizes the share-based compensation expense for options, SSARs, restricted and performance awards included in the Condensed Consolidated Statements of Operations: Three months ended Nine months ended December 31, December 31, (In thousands) 2016 2015 2016 2015 Product development $ 498 $ 326 $ 826 $ 802 Sales and marketing 124 46 177 38 General and administrative (680 ) 546 (221 ) 1,478 Total share-based compensation expense (58 ) 918 782 2,318
Activity related stock options award	The following table summarizes the activity during the nine months ended December 31, 2016 for stock options awarded under the 2006 Plan and the 2000 Stock Incentive Plan: Number Weighted- Remaining Aggregate (In thousands, except share and per share data) (per share) (in years) Outstanding at April 1, 2016 545,000 $ 15.54 Granted — — Exercised — — Cancelled/expired (545,000 ) 15.54 Outstanding and exercisable at December 31, 2016 — $ — — $ —
Activity related SSARs award	The following table summarizes the activity during the nine months ended December 31, 2016 for SSARs awarded under the 2011 Plan: Number Weighted- Remaining Aggregate (In thousands, except share and per share data) (per right) (in years) Outstanding at April 1, 2016 794,365 $ 10.06 Granted 64,231 10.47 Exercised (324 ) 9.60 Forfeited (122,934 ) 10.18 Cancelled/expired (5,685 ) 9.60 Outstanding at December 31, 2016 729,653 $ 10.08 3.4 $ 742 Exercisable at December 31, 2016 471,590 $ 10.15 2.1 $ 575
Activity related to restricted shares awarded by the Company	The following table summarizes the activity during the nine months ended December 31, 2016 for restricted shares awarded under the 2016 and 2011 Plan: Number Weighted- (In thousands, except share and per share data) (per share) Outstanding at April 1, 2016 335,773 $ 12.06 Granted 404,328 10.30 Vested (9,250 ) 13.51 Forfeited (134,226 ) 12.05 Outstanding at December 31, 2016 596,625 $ 10.84
Performance Shares Awarded by Company [Table Text Block]	The following table summarizes the activity during the nine months ended December 31, 2016 for performance shares awarded under the 2011 Plan: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2016 7,812 $ 9.60 Granted — — Vested (7,812 ) 9.60 Outstanding at December 31, 2016 — $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Assets and liabilities measured at fair value on a recurring basis	The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value: Fair value measurement used Recorded Active Quoted Active (In thousands) December 31, 2016 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — current $ 2,357 — — $ 2,357 Corporate-owned life insurance — non-current $ 782 — — $ 782 Fair value measurement used Recorded Active Quoted Active (In thousands) March 31, 2016 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — current $ 2,357 — — $ 2,357 Corporate-owned life insurance — non-current $ 765 — — $ 765 Liabilities: Contingent consideration — current $ 197 — — $ 197
Summary of changes in the fair value of the Level 3 assets and liabilities Corporate-owned life insurance	The following table presents a summary of changes in the fair value of the Level 3 assets: Nine months ended December 31, (In thousands) 2016 2015 Corporate-owned life insurance: Balance on April 1 $ 3,122 $ 2,493 Unrealized gain relating to instruments held at reporting date 16 6 Purchases, sales, issuances and settlements, net 1 65 Balance on December 31 $ 3,139 $ 2,564
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	The following tables present a summary of changes in the fair value of the Level 3 liabilities: Nine months ended December 31, (In thousands) 2016 2015 Contingent consideration Balance on April 1 $ 197 $ 112 Activity, payments and other charges (net) (197 ) (8 ) Balance on December 31 $ — $ 104

Fair Value Measurements Cash, c

Fair Value Measurements Cash, cash equivalents and marketable securities (Tables)	9 Months Ended
	Dec. 31, 2016
Cash, cash equivalents and marketable securities [Abstract]
Cash, Cash Equivalents, and Short-term Investments [Text Block]
Cash, cash equivalents and marketable securities [Table Text Block]

Nature of Operations and Fina26

Nature of Operations and Financial Statement Presentation (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Correction of Errors [Abstract]
Support Maintenance and Subscription Revenue	$ 16,234	$ 14,896	$ 47,087	$ 44,460

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 19,622	$ 19,622

Acquisitions (Details Textual)

Acquisitions (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 19,622	$ 19,622

Restructuring and Related Cha29

Restructuring and Related Charges (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2016USD ($)
Restructuring Reserve [Roll Forward]
Balance at March 31, 2013	$ 311
Provision	213
Payments for restructuring, severance and other charges	(305)
Balance at December 31, 2013	219
Severance and employment costs [Member] | Restructuring Plan Fiscal Two Zero One Five [Member]
Restructuring Reserve [Roll Forward]
Balance at March 31, 2013	311
Provision	170
Payments for restructuring, severance and other charges	(305)
Balance at December 31, 2013	176
Contract Termination [Member] | Restructuring Plan Fiscal Two Zero One Five [Member]
Restructuring Reserve [Roll Forward]
Balance at March 31, 2013	0
Provision	43
Payments for restructuring, severance and other charges	0
Balance at December 31, 2013	$ 43

Restructuring and Related Cha30

Restructuring and Related Charges (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Restructuring Charges (Textual) [Abstract]
Restructuring Reserve, Current	$ 219	$ 311
Restructuring Provisions	$ 213

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Amortized intangible assets:
Gross carrying amount	$ 23,840	$ 24,183
Accumulated amortization	(23,698)	(24,007)
Net carrying amount	142	176
Unamortized intangible assets:
Carrying amount, excluding accumulated impairment	(230)	(230)
Accumulated impairment	(570)	(570)
Carrying amount	8,400	8,400
Finite Lived Software Development Costs [Abstract]
Finite Lived Software Development Costs Accumulated Impairment	(1,391)	(1,391)
Finite Lived Software Development Costs Gross	56,586	46,559
Finite Lived Software Development Costs Accumulated Amortization	(8,049)	(2,344)
Finite Lived Software Development Costs Net	48,537	44,215
Total intangible assets, gross carrying amount	32,240	32,583
Intangible Assets, Net (Excluding Goodwill)	8,542	8,576
Trade Names [Member]
Unamortized intangible assets:
Carrying amount, excluding accumulated impairment	9,200	9,200
Project Expenditures Not Yet In Use [Member]
Finite Lived Software Development Costs [Abstract]
Finite Lived Software Development Costs Gross Excluding Accumulated Impairment	9,988	41,591
Finite Lived Software Development Costs Accumulated Amortization Excluding Accumulated Impairment	0	0
Finite Lived Software Development Costs, Net Excluding, Accumulated Impairment	9,988	41,591
Software Development Costs [Member]
Finite Lived Software Development Costs [Abstract]
Finite Lived Software Development Costs Gross Excluding Accumulated Impairment	47,989	6,359
Finite Lived Software Development Costs Accumulated Amortization Excluding Accumulated Impairment	(8,049)	(2,344)
Finite Lived Software Development Costs, Net Excluding, Accumulated Impairment	39,940	4,015
Patented Technology [Member]
Amortized intangible assets:
Gross carrying amount, excluding accumulated impairment	80	80
Accumulated amortization, excluding accumulated impairment	(80)	(80)
Net carrying amount, excluding accumulated impairment	0	0
Trade Names [Member]
Amortized intangible assets:
Gross carrying amount, excluding accumulated impairment	230	230
Accumulated amortization, excluding accumulated impairment	(88)	(54)
Net carrying amount, excluding accumulated impairment	142	176
Developed Technology Rights [Member]
Amortized intangible assets:
Gross carrying amount, excluding accumulated impairment	10,317	10,660
Accumulated amortization, excluding accumulated impairment	(10,055)	(10,398)
Net carrying amount, excluding accumulated impairment	262	262
Unamortized intangible assets:
Accumulated impairment	262	262
Noncompete Agreements [Member]
Amortized intangible assets:
Gross carrying amount, excluding accumulated impairment	2,700	2,700
Accumulated amortization, excluding accumulated impairment	(2,700)	(2,700)
Net carrying amount, excluding accumulated impairment	0	0
Customer Relationships [Member]
Amortized intangible assets:
Gross carrying amount, excluding accumulated impairment	10,775	10,775
Accumulated amortization, excluding accumulated impairment	(10,775)	(10,775)
Net carrying amount, excluding accumulated impairment	$ 0	$ 0

Intangible Assets - Schedule 32

Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2016USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2015	$ 2,317
2,016	9,272
2,017	9,150
2,018	8,411
2,019	8,326
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	1,215
Net carrying amount	$ 38,691

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Capitalized Computer Software, Additions			$ 31,200
Software development costs, net	$ 48,537		48,537		$ 44,215
Capitalized Software Development Costs	3,300	$ 3,200	10,000	$ 10,300
Amortization of software development			5,705	0
Finite-lived intangible assets, net	142		142		176
Capitalized Computer Software, Period Increase (Decrease)	10,400
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization, Excluding Accumulated Impairment	10,055		10,055		$ 10,398
Developed Technology Internal [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of software development	$ 2,300	$ 300	$ 5,700	$ 800

Additional Balance Sheet Info34

Additional Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Other non-current assets:
Total	$ 2,477	$ 3,046
Accrued liabilities:
Salaries, wages, and related benefits	7,380	9,751
Other taxes payable	697	818
Accrued legal settlements	0	100
Restructuring liabilities	219	311
Supplemental Unemployment Benefits, Severance Benefits	837	6
Professional fees	508	714
Deferred rent	428	400
Contingent consideration — current	0	197
Other	553	683
Accrued Liabilities	10,622
Total	10,622	12,980
Other non-current liabilities:
Uncertain tax positions	1,468	1,469
Deferred rent	2,532	2,746
Other	76	79
Total	$ 4,076	$ 4,294

Additional Balance Sheet Info35

Additional Balance Sheet Information Accounts receivable, net (Details) - USD ($) $ in Thousands	May 26, 2015	Dec. 31, 2016	Mar. 31, 2016
Additional Balance Sheet Information [Abstract]
Accounts Receivable, Net, Current		$ 15,308	$ 22,017
Allowance for Doubtful Accounts Receivable		654	617
Accounts Receivable, Gross, Current			$ 3,200
Bankruptcy Claims, Amount of Claims Filed	$ 700	$ 700

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Effective tax rates from continuing operations
Income tax expense (benefit)	$ 129	$ (56)	$ 252	$ (100)
Effective tax rate	(8.00%)	3.20%	(4.10%)	4.30%

(Loss) Earnings per Share (Deta

(Loss) Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Income (Loss) from Continuing Operations Attributable to Parent	$ (1,737)	$ (1,673)	$ (6,434)	$ (2,227)
Numerator [Abstract]
Net loss	$ (1,737)	$ (1,673)	$ (6,434)	$ (2,227)
Denominator [Abstract]
Weighted average shares outstanding	22,611	22,493	22,605	22,479
Earnings Per Share, Basic [Abstract]
Loss per share	$ (0.08)	$ (0.07)	$ (0.28)	$ (0.10)
Earnings Per Share, Diluted [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,471,000	1,804,000	1,399,000	1,633,000

(Loss) Earnings per Share (De38

(Loss) Earnings per Share (Details Textual) - shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Incremental Common Shares Attributable to Restricted Shares	595,625	455,574

Share-based Compensation (Detai

Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Summary of share-based compensation expense for options			$ 782
Share-based Compensation	$ (58)	$ 918	782	$ 2,318
Product development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Summary of share-based compensation expense for options	498	326	826	802
Selling and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Summary of share-based compensation expense for options	124	46	177	38
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Summary of share-based compensation expense for options	$ (680)	$ 546	$ (221)	$ 1,478

Share-based Compensation (Det40

Share-based Compensation (Details 1) - Stock Options [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at Beginning of Period, Number of Options | shares	545,000
Outstanding at Beginning of Period, Weighted Average Exercise Price | $ / shares	$ 15.54
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares	0
Share-based Compensation Arrangements by Share Based Payment Award Non Option Equity Instruments Grants in Period Weighted Average Exercise Price | $ / shares	$ 0
Exercised, Number of Options | shares	0
Exercised, Weighted-Average Exercise Price | $ / shares	$ 0
Cancelled/expired, Number of options | shares	(545,000)
Cancelled/Expired, Weighted-Average Exercise Price | $ / shares	$ 15.54
Outstanding and exercisable at End of Period, Number of Options | shares	0
Outstanding and exercisable at End of Period, Weighted Average Exercise Price | $ / shares	$ 0
Aggregate Intrinsic Value, Outstanding and exercisable at End of Period | $	$ 0

Share-based Compensation (Det41

Share-based Compensation (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Expirations In Period Weighted Average Exercise Price	$ 9.60
Stock Settled Stock Appreciation Rights (SSARS) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Rights Granted,	64,231
Weighted Average Exercise Price Granted,	$ 10.47
Number of Rights Exercised	(324)
Weighted Average Exercise Price Exercised	$ 9.60
Number of Rights, Forfeited	(122,934)
Weighted Average Exercise Price, Forfeited	$ 10.18
Number of Rights Outstanding at End of Period	729,653	794,365
Weighted Average Exercise Price Outstanding at End of Period	$ 10.08	$ 10.06
Remaining Contractual Term Outstanding at End of Period	3 years 4 months 24 days
Aggregate Intrinsic Value Outstanding at End of Period	$ 742
Number of Rights Exercisable at End of Period	471,590
Weighted Average Exercise Price Exercisable at End of Period	$ 10,150,000
Remaining Contractual Term Exercisable at End of Period	2 years 1 month 6 days
Aggregate Intrinsic Value Exercisable at End of Period	$ 575
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	(5,685)

Share-based Compensation (Det42

Share-based Compensation (Details 3) - Restricted Stock [Member]	9 Months Ended
	Dec. 31, 2016$ / sharesshares
Activity Related to Restricted Shares Awarded by the Company
Number of shares Outstanding at Beginning of Period | shares	335,773
Weighted Average Grant-Date Fair Value Outstanding at Beginning of Period | $ / shares	$ 12.06
Granted, Number of Shares | shares	404,328
Granted, Weighted Average Grant Date Fair value | $ / shares	$ 10.30
Vested, Number of shares | shares	(9,250)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 13.51
Forfeited, Number of Shares | shares	(134,226)
Forfeited, Weighted Average Grant Date Fair Value | $ / shares	$ 12.05
Number of shares Outstanding at End of Period | shares	596,625
Weighted Average Grant-Date Fair Value Outstanding at End of Period | $ / shares	$ 10.84

Share-based Compensation (Det43

Share-based Compensation (Details 4) - Performance Shares [Member] - $ / shares	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares		(7,812)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 9.60
Performance shares awarded by the Company
Granted, Weighted Average Grant Date Fair value	$ 0		$ 9.60
Number of shares Outstanding at End of Period	0	0	7,812

Share-based Compensation (Det44

Share-based Compensation (Details Textual) $ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2016USD ($)shares	Dec. 31, 2016USD ($)shares
Stock Based Compensation (Textual) [Abstract]
Maximum number of shares subject to stock options and restricted shares	1,300,000
Stock Options [Member]
Stock Based Compensation (Textual) [Abstract]
Stock option granted		0
Restricted Stock [Member]
Stock Based Compensation (Textual) [Abstract]
Unrecognized stock based compensation expense related to non-vested restricted stock | $	$ 4.6	$ 4.6
Weighted-average vesting period	1 year 4 months 10 days
Stock Settled Stock Appreciation Rights (SSARS) [Member]
Stock Based Compensation (Textual) [Abstract]
Unrecognized stock based compensation expense related to non-vested SSARs | $	$ 0.5	$ 0.5
Weighted-average vesting period	1 year 5 months 5 days
2011 Stock Incentive Plan [Member]
Stock Based Compensation (Textual) [Abstract]
Shares authorized under 2011 Stock incentive plan	2,000,000	2,000,000
2011 Stock Incentive Plan [Member] | Stock Options [Member]
Stock Based Compensation (Textual) [Abstract]
Maximum number of shares subject to stock options and restricted shares	800,000
2011 Stock Incentive Plan [Member] | Restricted Shares and Restricted Share Units [Member]
Stock Based Compensation (Textual) [Abstract]
Maximum number of shares subject to stock options and restricted shares	400,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Liabilities:
Contingent consideration — current	$ 0	$ 197
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Insurance Settlements Receivable, Current	2,357	2,357
Assets:
Corporate-owned life insurance — non-current	782	765
Liabilities:
Contingent consideration — current		197
Active markets for identical assets or liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Corporate-owned life insurance — non-current	0	0
Quoted prices in similar instruments and observable inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Corporate-owned life insurance — non-current	0	0
Active markets for unobservable inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Insurance Settlements Receivable	2,357	2,357
Assets:
Corporate-owned life insurance — non-current	$ 782	765
Liabilities:
Contingent consideration — current		$ 197

Fair Value Measurements (Deta46

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Proceeds from corporate-owned life insurance policy	$ (1)	$ (65)
Cash Surrender Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	3,122	2,493
Unrealized gain relating to instruments held at reporting date	16	6
Purchases, sales, issuances and settlements, net	1	65
Balance at end of period	3,139	$ 2,564
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Insurance Settlements Receivable, Current	2,357		$ 2,357
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Insurance Settlements Receivable	$ 2,357		$ 2,357

Fair Value Measurements (Deta47

Fair Value Measurements (Details 2) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Contingent Consideration [Abstract]
Business Combination, Contingent Consideration, Liability	$ 104,000	$ 0	$ 104,000	$ 197,000	$ 112,000
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability		$ (197,000)	$ 0
Liabilities, Fair Value Adjustment	$ (8,000)