Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | May 21, 2018 | |
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-K | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 23,234,705 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 188,903,379 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 39,943 | $ 49,255 |
Accounts receivable, net of allowance for doubtful accounts of $900 and $509, respectively | 16,389 | 15,598 |
Inventories | 1,999 | 2,211 |
Prepaid expenses and other current assets | 5,593 | 6,456 |
Total current assets | 63,924 | 73,520 |
Property and equipment, net | 17,512 | 16,000 |
Goodwill | 19,622 | 19,622 |
Intangible assets, net | 8,484 | 8,530 |
Software development costs, net | 45,181 | 46,999 |
Other non-current assets | 2,484 | 2,634 |
Total assets | 157,207 | 167,305 |
Current liabilities: | ||
Accounts payable | 8,400 | 8,702 |
Deferred revenue | 26,820 | 29,183 |
Accrued liabilities | 9,241 | 8,331 |
Capital lease obligations, current | 120 | 121 |
Total current liabilities | 44,581 | 46,337 |
Deferred income taxes, non-current | 227 | 3,181 |
Capital lease obligations, non-current | 57 | 116 |
Other non-current liabilities | 3,911 | 4,002 |
Commitments and contingencies (see Note 11) | ||
Shareholders' equity: | ||
Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 31,606,831 shares issued; and 23,324,679 and 23,210,682 shares outstanding at March 31, 2018 and March 31, 2017, respectively | 9,482 | 9,482 |
Treasury shares, 8,282,152 and 8,396,149 at March 31, 2018 and March 31, 2017, respectively | (2,486) | (2,519) |
Capital in excess of stated value | (1,911) | (5,782) |
Retained earnings | 103,601 | 112,692 |
Accumulated other comprehensive loss | (255) | (204) |
Total shareholders' equity | 108,431 | 113,669 |
Total liabilities and shareholders' equity | $ 157,207 | $ 167,305 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value | $ 0 | $ 0 |
Common stock, stated value | $ 0.3 | $ 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 | 23,324,679 | 23,210,682 |
Treasury shares | 8,282,152 | 8,396,149 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net revenue: | |||||||
Products | $ 33,699 | $ 38,339 | $ 41,445 | ||||
Support, maintenance and subscription services | 69,068 | 63,308 | 60,104 | ||||
Professional services | 24,593 | 26,031 | 18,817 | ||||
Total net revenue | $ 32,056 | $ 31,310 | $ 30,129 | $ 33,865 | 127,360 | 127,678 | 120,366 |
Cost of goods sold: | |||||||
Products, inclusive of developed technology amortization | 26,381 | 28,244 | 23,326 | ||||
Support, maintenance and subscription services | 16,688 | 16,965 | 15,394 | ||||
Professional services | 19,874 | 18,684 | 13,540 | ||||
Total cost of goods sold | 62,943 | 63,893 | 52,260 | ||||
Gross profit | 16,749 | 15,628 | 15,370 | 16,670 | $ 64,417 | $ 63,785 | $ 68,106 |
Gross profit margin | 50.60% | 50.00% | 56.60% | ||||
Operating expenses: | |||||||
Product development | $ (27,936) | $ (29,048) | $ (26,688) | ||||
Sales and marketing | (18,075) | (20,823) | (19,740) | ||||
General and administrative | (24,028) | (19,875) | (21,818) | ||||
Depreciation of fixed assets | (2,631) | (2,409) | (2,199) | ||||
Amortization of intangibles | (1,879) | (1,392) | (1,243) | ||||
Restructuring, severance and other charges | 557 | 378 | 826 | 37 | 1,798 | 1,561 | 283 |
Impairments and other fair value adjustments | 0 | 0 | 180 | ||||
Legal settlements | 0 | 150 | 0 | 0 | 150 | 85 | 268 |
Total operating expense | 76,497 | 75,193 | 72,419 | ||||
Operating loss | (12,080) | (11,408) | (4,313) | ||||
Other (income) expense: | |||||||
Interest income | (98) | (162) | (92) | ||||
Interest expense | 10 | 15 | 29 | ||||
Other (income) expense, net | (391) | 224 | (491) | ||||
Loss before taxes | (11,601) | (11,485) | (3,759) | ||||
Income tax (benefit) expense | (3,251) | 236 | 6 | ||||
Net loss | $ (210) | $ (1,934) | $ (3,248) | $ (2,958) | $ (8,350) | $ (11,721) | $ (3,765) |
Weighted average shares outstanding - basic and diluted | 22,801 | 22,615 | 22,483 | ||||
Net loss per share (in dollars per share) | $ (0.01) | $ (0.08) | $ (0.14) | $ (0.13) | $ (0.37) | $ (0.52) | $ (0.17) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (8,350) | $ (11,721) | $ (3,765) |
Other comprehensive loss, net of tax: | |||
Unrealized foreign currency translation adjustments | (51) | (27) | (26) |
Total comprehensive loss | $ (8,401) | $ (11,748) | $ (3,791) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | |||
Net loss | $ (8,350) | $ (11,721) | $ (3,765) |
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities: | |||
Net restructuring, severance and other charges | 227 | (224) | (333) |
Net legal settlements | 0 | 100 | (185) |
Impairments and other fair value adjustments | 0 | 0 | 87 |
Loss on disposal of property & equipment | 0 | 70 | 381 |
Depreciation | 2,631 | 2,409 | 2,199 |
Amortization | 1,879 | 1,392 | 1,243 |
Amortization of developed technology | 10,016 | 8,012 | 1,022 |
Share-based compensation | 4,688 | 2,427 | 3,405 |
Contingent consideration adjustment | 0 | 0 | 93 |
Deferred income taxes | (3,085) | 142 | 23 |
Change in cash surrender value of company owned life insurance policies | (17) | (18) | (564) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (719) | 6,372 | 3,237 |
Inventories | 229 | 476 | (2,051) |
Prepaid expense | 1,485 | 1,946 | (4,532) |
Accounts payable | 130 | 554 | (7,896) |
Deferred revenue | (2,448) | (4,034) | 9,364 |
Accrued liabilities | 653 | (4,250) | 5,330 |
Income taxes receivable | (19) | 45 | 16 |
Other changes, net | (426) | (65) | (226) |
Net cash provided by operating activities | 6,874 | 3,433 | 7,218 |
Investing activities | |||
Capital expenditures | (6,140) | (4,158) | (5,900) |
Capitalized software development costs | (8,918) | (11,888) | (15,048) |
Additional (investments in) proceeds from corporate-owned life insurance policies | (27) | 2,181 | (65) |
Net cash used in investing activities | (15,085) | (13,865) | (21,013) |
Financing activities | |||
Principal payments under long-term obligations | (124) | (117) | (142) |
Repurchase of common shares to satisfy employee tax withholding | (1,171) | (533) | (435) |
Net cash used in financing activities from continuing operations | (1,295) | (847) | (577) |
Payments to settle contingent consideration arising from business acquisitions | 0 | 197 | 0 |
Effect of exchange rate changes on cash | 194 | (74) | (87) |
Net decrease in cash and cash equivalents | (9,312) | (11,353) | (14,459) |
Cash and cash equivalents at beginning of period | 49,255 | 60,608 | |
Cash and cash equivalents at end of period | $ 39,943 | $ 49,255 | $ 60,608 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock [Member] | Treasury stock [Member] | Capital in excess of stated value [Member] | Retained Earnings [Member] | Accumulated other comprehensive loss [Member] |
Beginning balance at Mar. 31, 2015 | $ 124,188 | $ 9,482 | $ (2,646) | $ (10,675) | $ 128,178 | $ (151) |
Beginning balance (in shares) at Mar. 31, 2015 | 31,607 | 8,817 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Non-cash share based compensation expense | 3,405 | 3,405 | ||||
Restricted shares issued | 0 | $ 54 | (54) | |||
Restricted shares issued (in shares) | 181 | |||||
Shares issued upon exercise of stock options and SSARs | 0 | $ 1 | (1) | |||
Shares issued upon exercise of stock options and SSARs (in shares) | 2 | |||||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares | (329) | $ (9) | (320) | |||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares (in shares) | (30) | |||||
Net loss | (3,765) | (3,765) | ||||
Unrealized foreign currency translation adjustments | (26) | |||||
Unrealized translation adjustment | (26) | (26) | ||||
Ending balance at Mar. 31, 2016 | 123,473 | $ 9,482 | $ (2,600) | (7,645) | 124,413 | (177) |
Ending balance (in shares) at Mar. 31, 2016 | 31,607 | 8,664 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Non-cash share based compensation expense | 2,427 | 2,427 | ||||
Restricted shares issued | 0 | $ 83 | (83) | |||
Restricted shares issued (in shares) | 277 | |||||
Shares issued upon exercise of stock options and SSARs | 0 | $ 10 | (10) | |||
Shares issued upon exercise of stock options and SSARs (in shares) | 33 | |||||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares | (483) | $ (12) | (471) | |||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares (in shares) | (43) | |||||
Net loss | (11,721) | (11,721) | ||||
Unrealized foreign currency translation adjustments | (27) | |||||
Unrealized translation adjustment | (27) | (27) | ||||
Ending balance at Mar. 31, 2017 | 113,669 | $ 9,482 | $ (2,519) | (5,782) | 112,692 | (204) |
Ending balance (in shares) at Mar. 31, 2017 | 31,607 | 8,397 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Non-cash share based compensation expense | 4,463 | 4,463 | ||||
Restricted shares issued | 0 | $ 64 | (64) | |||
Restricted shares issued (in shares) | 213 | |||||
Shares issued upon exercise of stock options and SSARs | 0 | $ 2 | (2) | |||
Shares issued upon exercise of stock options and SSARs (in shares) | 8 | |||||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares | (1,300) | $ (33) | (1,267) | |||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares (in shares) | (107) | |||||
Net loss | (8,350) | (8,350) | ||||
Unrealized foreign currency translation adjustments | (51) | (51) | ||||
Ending balance at Mar. 31, 2018 | $ 108,431 | $ 9,482 | $ (2,486) | $ (1,911) | $ 103,601 | $ (255) |
Ending balance (in shares) at Mar. 31, 2018 | 31,607 | 8,283 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Agilysys is a leading technology company that provides innovative software and services for point-of-sale (POS), payment gateway, reservation and table management, property management (PMS), inventory and procurement, business analytics, document management, guest offers management, and mobile and wireless solutions exclusively to the hospitality industry. Our products and services allow operators to streamline operations, improve efficiency and understand customer needs across their properties to deliver a superior overall guest experience. The result is improved guest loyalty, growth in wallet share and increased revenue as they connect and transact with their guests based upon a single integrated view of individual preferences and interactions. We serve four major market sectors: Gaming, both corporate and tribal; Hotels, Resorts and Cruise; Corporate Foodservice Management; and Restaurants, Universities, Stadia and Healthcare. A significant portion of our consolidated revenue is derived from contract support, maintenance and subscription services. Agilysys operates across North America, Europe, Asia-Pacific, and India with headquarters located in Alpharetta, GA. For more information, visit www.agilysys.com. Reference herein to any particular year or quarter refers to periods within the fiscal year ended March 31. For example, fiscal 2018 refers to the fiscal year ended March 31, 2018 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of consolidation. The consolidated financial statements include the accounts of Agilysys, Inc. and subsidiaries. Investments in affiliated companies are accounted for by the equity or cost method, as appropriate. All inter-company accounts have been eliminated. Use of estimates. Preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. Cash and cash equivalents. We consider all highly liquid investments purchased with an original maturity from date of acquisition of three months or less to be cash equivalents. Other highly liquid investments considered cash equivalents with no established maturity date are fully redeemable on demand (without penalty) with settlement of principal and accrued interest on the following business day after instruction to redeem. Such investments are readily convertible to cash with no penalty and can include certificates of deposit, commercial paper, treasury bills, money market funds and other investments. Allowance for doubtful accounts. We maintain allowances for doubtful accounts for estimated losses resulting from the inability or unwillingness of our customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as historic trends of the entire customer pool. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. To mitigate this credit risk we perform periodic credit evaluations of our customers. Inventories. Our inventories are comprised of finished goods. Inventories are stated at the lower of cost or market, net of related reserves. The cost of inventory is computed using a weighted-average method. Our inventory is monitored to ensure appropriate valuation. Adjustments of inventories to the lower of cost or market, if necessary, are based upon contractual provisions such as turnover and assumptions about future demand and market conditions. If assumptions about future demand change and/or actual market conditions are less favorable than those projected by management, additional adjustments to inventory valuations may be required. We provide a reserve for obsolescence, which is calculated based on several factors, including an analysis of historical sales of products and the age of the inventory. Actual amounts could be different from those estimated. Goodwill and Other Indefinite-Lived Intangible Assets. Goodwill represents the excess purchase price paid over the fair value of the net assets of acquired companies. The carrying amount of goodwill was $19.6 million as of March 31, 2018 and 2017. Goodwill is tested for impairment on an annual basis, or in interim periods if indicators of potential impairment exist. The Company evaluates whether goodwill is impaired by comparing its market capitalization based on its closing stock price (Level 1 input) to the book value of its equity on the annual evaluation date. Based on testing performed, the Company concluded that no impairment of its goodwill has occurred for the years ended March 31, 2018, 2017 and 2016. The Company is also required to compare the fair values of other indefinite-lived intangible assets to their carrying amounts at least annually, or when current events and circumstances require an interim assessment. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized. Intangible assets. Purchased intangible assets with finite lives are primarily amortized using the straight-line method over the estimated economic lives of the assets. Our finite-lived intangible assets are amortized over periods between two and eight years. Customer relationships are amortized over estimated useful lives between two and seven years; non-competition agreements are amortized over estimated useful lives between two and eight years; developed technology is amortized over estimated useful lives between three and eight years; supplier relationships are amortized over estimated useful lives between two and eight years. Long-lived assets. Property and equipment are recorded at cost. Major renewals and improvements are capitalized. Minor replacements, maintenance, repairs, and reengineering costs are expensed as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is recognized. Depreciation and amortization are provided in amounts sufficient to amortize the cost of the assets, including assets recorded under capital leases, which make up less than one percent of total assets, over their estimated useful lives using the straight-line method. The estimated useful lives for depreciation and amortization are as follows: buildings and building improvements - 7 to 30 years; furniture - 7 to 10 years; equipment - 3 to 10 years; software - 3 to 10 years; and leasehold improvements over the shorter of the economic life or the lease term. Internal use software costs are expensed or capitalized depending on the project stage. Amounts capitalized are amortized over the estimated useful lives of the software, ranging from 3 to 10 years, beginning with the project's completion. Capitalized project expenditures are not depreciated until the underlying project is completed. We evaluate the recoverability of our long-lived assets whenever changes in circumstances or events may indicate that the carrying amounts may not be recoverable. An impairment loss is recognized in the event the carrying value of the assets exceeds the future undiscounted cash flows attributable to such assets. Foreign currency translation. The financial statements of our foreign operations are translated into U.S. dollars for financial reporting purposes. The assets and liabilities of foreign operations whose functional currencies are not in U.S. dollars are translated at the period-end exchange rates, while revenue and expenses are translated at weighted-average exchange rates during the fiscal year. The cumulative translation effects are reflected as a component of “Accumulated other comprehensive loss” within shareholders' equity in the Consolidated Balance Sheets. Gains and losses on monetary transactions denominated in other than the functional currency of an operation are reflected within “Other (income) expenses, net” in the Consolidated Statements of Operations. Foreign currency gains and losses from changes in exchange rates have not been material to our consolidated operating results. Revenue recognition. We derive revenue from the sale of products (i.e., server, storage, and point of sale hardware, and software), support, maintenance and subscription services and professional services. Revenue is recorded in the period in which the goods are delivered or services are rendered and when the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price to the customer is fixed or determinable, and collection is reasonably assured. We reduce revenue for estimated discounts, sales incentives, estimated customer returns, and other allowances. Discounts are offered based on the volume of products and services purchased by customers. Shipping and handling fees billed to customers are recognized as revenue and the related costs are recognized in cost of goods sold. Revenue is recorded net of any applicable taxes collected and remitted to governmental agencies. For the fiscal years 2018 , 2017 and 2016 , revenue from international operations was 8% , 6% and 4% , respectively of total revenue. Our current customer base is highly fragmented, with the exception of one customer representing 10% of consolidated revenue for the year ended March 31, 2017. We frequently enter into multiple-element arrangements with customers including hardware, software, professional consulting services and maintenance support services. For arrangements involving multiple deliverables, when deliverables include software and non-software products and services, we evaluate and separate each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (a) the delivered item has value to the customer on a stand-alone basis; and (b) if the contract includes a general right of return relative to the delivered item, delivery or performance of the undelivered items is considered probable and substantially in our control. Consideration is allocated to each unit of accounting based on the unit's relative selling prices. In such circumstances, we use a hierarchy to determine the selling price to be used for allocating revenue to each deliverable: (i) vendor-specific objective evidence of selling price (VSOE), and (ii) best estimate of selling price (BESP). VSOE generally exists only when we sell the deliverable separately and is the price actually charged by us for that deliverable. VSOE is established for our software maintenance services and we use BESP to establish selling prices for our non-software related services. BESP is primarily used for elements that are not consistently priced within a narrow range. We determine BESP for a deliverable by considering multiple factors including product class, geography, average discount, and management's historical pricing practices. Amounts allocated to the delivered hardware and software elements are recognized at the time of sale provided the other conditions for revenue recognition have been met. Amounts allocated to the undelivered maintenance and other services elements are recognized as the services are provided or on a straight-line basis over the service period. In certain instances, customer acceptance is required prior to the passage of title and risk of loss of the delivered products. In such cases, revenue is not recognized until the customer acceptance is obtained. Delivery and acceptance generally occur in the same reporting period. In situations where our solutions contain software that is more than incidental, revenue related to the software and software-related elements is recognized in accordance with authoritative guidance on software revenue recognition. For the software and software-related elements of such transactions, revenue is allocated based on the relative fair value of each element, and fair value is determined by VSOE. If we cannot objectively determine the fair value of any undelivered element included in such multiple-element arrangements, we defer revenue until all elements are delivered and services have been performed, or until fair value can objectively be determined for any remaining undelivered elements. When the fair value of a delivered element has not been established, but fair value exists for the undelivered elements, we use the residual method to recognize revenue. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue. Revenue recognition for complex contractual arrangements, especially those with multiple elements, requires a significant level of judgment and is based upon a review of specific contracts, past experience, the selling price of undelivered elements when sold separately, creditworthiness of customers, international laws and other factors. Changes in judgments about these factors could impact the timing and amount of revenue recognized between periods. Revenue for hardware sales is recognized when the product is shipped to the customer and when obligations that affect the customer's final acceptance of the arrangement have been fulfilled. A majority of our hardware sales involves shipment directly from its suppliers to the end-user customers. In these transactions, we are the primary obligor as we are responsible for negotiating price both with the supplier and the customer, payment to the supplier, establishing payment terms and product returns with the customer, and we bear the credit risk if the customer does not pay for the goods. As the principal contact with the customer, we recognize revenue and cost of goods sold when we are notified by the supplier that the product has been shipped. In certain limited instances, as shipping terms dictate, revenue is recognized upon receipt at the point of destination or upon installation at the customer site. We offer proprietary software as well as remarketed software for sale to our customers. We offer our customers the right to license the software under a variety of models. Our customers can license our software under a perpetual model for an upfront fee or a subscription model. For subscription arrangements, we allow customers the right to use software, receive unspecified products as well as unspecified upgrades and enhancements and entitle the customer to receive hosting services for a specified term. The subscription revenue is generally recognized ratably over the term of the arrangement, typically three to five years. Revenue from subscription service arrangements is included in Support, maintenance and subscription services in the Consolidated Statements of Operations. A majority of our software sales do not require significant production, modification, or customization at the time of shipment (physically or electronically) to the customer. Substantially all of our software license arrangements do not include acceptance provisions. As such, revenue from both proprietary and remarketed software sales is typically recognized when the software has been shipped. For software delivered electronically, delivery is considered to have occurred when the customer either takes possession of the software via downloading or has been provided with the requisite codes that allow for immediate access to the software based on the U.S. Eastern time zone time stamp. We also offer proprietary and third-party services to our customers. Proprietary services generally include: consulting, installation, integration and training. Many of our software arrangements include consulting services sold separately under consulting engagement contracts. When the arrangements qualify as service transactions, consulting revenue from these arrangements are accounted for separately from the software revenue. The significant factors considered in determining whether the revenue should be accounted for separately include the nature of the services (i.e., consideration of whether the services are essential to the functionality of the software), degree of risk, availability of services from other vendors, timing of payments, and the impact of milestones or other customer acceptance criteria on revenue realization. If there is significant uncertainty about the project completion or receipt of payment for consulting services, the revenue is deferred until the uncertainty is resolved. For certain long-term proprietary service contracts with fixed or “not to exceed” fee arrangements, we estimate proportional performance using the hours incurred as a percentage of total estimated hours to complete the project consistent with the percentage-of-completion method of accounting. Accordingly, revenue for these contracts is recognized based on the proportion of the work performed on the contract. If there is no sufficient basis to measure progress toward completion, the revenue is recognized when final customer acceptance is received. Adjustments to contract price and estimated service hours are made periodically, and losses expected to be incurred on contracts in progress are charged to operations in the period such losses are determined. The aggregate of collections on uncompleted contracts in excess of related revenue is shown as a current liability. If an arrangement does not qualify for separate accounting of the software and consulting services, then the software revenue is recognized together with the consulting services using the percentage-of-completion or completed contract method of accounting. Contract accounting is applied to arrangements that include: milestones or customer-specific acceptance criteria that may affect the collection of revenue, significant modification or customization of the software, or provisions that tie the payment for the software to the performance of consulting services. We also offer proprietary and third-party support to our customers. Support generally includes: support and maintenance of software and hardware products and subscription services. Revenue relating to proprietary support services is recognized evenly over the coverage period of the underlying agreement within support, maintenance and subscription revenue. In instances where we offer third-party support contracts to our customer, and the supplier is determined to be the primary obligor in the transaction, we report revenue at the time of the sale, only in the amount of the “commission” (equal to the selling price less the cost of sale) received rather than reporting revenue in the full amount of the selling price with separate reporting of the cost of sale. Comprehensive (loss) income. Comprehensive (loss) income is the total of net (loss) income, as currently reported under GAAP, plus other comprehensive (loss) income. Other comprehensive (loss) income considers the effects of additional transactions and economic events that are not required to be recorded in determining net (loss) income, but rather are reported as a separate statement of comprehensive (loss) income. Fair value measurements . We measure the fair value of financial assets and liabilities on a recurring or non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. In determining fair value of financial assets and liabilities, we use various valuation techniques. Additional information regarding fair value measurements is provided in Note 14, Fair Value Measurements . Investments in corporate-owned life insurance policies. Agilysys invests in corporate-owned life insurance policies, for which some are endorsement split-dollar life insurance arrangements. We entered into non-cancelable agreements with each of the former executives, whereby we must maintain the life insurance policy for a specified amount and split a portion of the policy benefits with their designated beneficiary. Our investment in these corporate-owned life insurance policies were recorded at their cash surrender value, which approximates fair value at the balance sheet date. During fiscal 2017, we received $2.2 million related to the death benefit due to us on redemption of two of these policies. In the consolidated balance sheets at the balance sheet date, the cash surrender value of $0.9 million for the remaining policies were held in “Other non-current assets,” and the present value of future proceeds owed to those executives' designated beneficiary of $0.1 million , which approximates fair value, were recorded within "Other non-current liabilities." Additional information regarding the investments in corporate-owned life insurance policies is provided in Note 10, Employee Benefit Plans . Income Taxes. Income tax expense includes U.S. and foreign income taxes and is based on reported income before income taxes. We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities are determined based on the enacted tax rates expected to apply in the periods in which the deferred tax assets or liabilities are anticipated to be settled or realized. We regularly review our deferred tax assets for recoverability and establish a valuation allowance if it is more likely than not that some portion or all of a deferred tax asset will not be realized. The determination as to whether a deferred tax asset will be realized is made on a jurisdictional basis and is based on the evaluation of positive and negative evidence. This evidence includes historical taxable income, projected future taxable income, the expected timing of the reversal of existing temporary differences and the implementation of tax planning strategies. We recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from uncertain tax positions are measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. No tax benefits are recognized for positions that do not meet this threshold. Interest related to uncertain tax positions is recognized as part of the provision for income taxes and is accrued beginning in the period that such interest would be applicable under relevant tax law until such time that the related tax benefits are recognized. Our income taxes are described further in Note 9, Income Taxes . Capitalized Software Development Costs. The capitalization of software development cost for external use begins when a product’s technological feasibility has been established. Capitalization ends when the resulting product is available for general market release. Amortization of the capitalized software is classified within products cost of goods sold in the Consolidated Statements of Operations. For each capitalized software product, the annual amortization is equal to the greater of: (i) the amount computed using the ratio that the software product’s current fiscal year gross revenue bears to the total current fiscal year and anticipated future gross revenues for that product or (ii) the amount computed based on straight-line method over the remaining estimated economic life of the product, which is a range between three and eight years. The amount by which unamortized software costs exceeds the net realizable value, if any, is recognized as a charge to income in the period it is determined. Advertising and Promotion Expense. We expense advertising and promotion expense as incurred. Advertising and promotion expense was $2.7 million , $2.6 million and $1.7 million in fiscal 2018, 2017 and 2016, respectively. Reclassification - Certain prior year balances have been reclassified to conform to the current year presentation. Specifically, we reclassified approximately $1.1 million from software development costs to property and equipment on the Consolidated Balance Sheet as of March 31, 2016, which also impacted the Consolidated Statement of Cash Flows for the year ended March 31, 2016. Adopted and Recently Issued Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) . ASU 2018-02 addresses the effect of the change in the U.S. federal corporate tax rate on items within accumulated other comprehensive income or loss due to the enactment of the Tax Act on December 22, 2017. The new standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, and ASU No. 2017-04, Intangibles- Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. ASU No. 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. ASU No. 2017-04 eliminates Step 2 of the goodwill impairment test and requires a goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. While we are still assessing the impact of this standard, we do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective transition method, with the cumulative effect recognized as of the date of initial adoption. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance with the intent of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, including adoption in an interim period. We are currently reviewing this standard to assess the impact on our future consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326). This new standard changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, held-to-maturity debt securities, loans, and other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. The new standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. We are currently reviewing this standard to assess the impact on our future consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), which amends the accounting for stock-based compensation. The guidance requires excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than of stockholders’ equity and also allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. ASU No. 2016-09 is effective for annual reporting periods beginning after December 15, 2016. The Company adopted the ASU in the quarter ended June 30, 2017, which is the first quarter for our annual period beginning April 1, 2017. The following summarizes the effects of the adoption on the Company's consolidated financial statements: Income taxes - In the first quarter of 2018, we did not recognize the discrete benefit related to $4.4 million of tax deductions in excess of recorded windfall tax benefits associated with stock-based compensation due to the Company’s full valuation allowance on its U.S. federal net operating losses. Forfeitures - Prior to adoption, the Company recognized share-based compensation expense net of estimated forfeitures based on a rate management updated at least annually to reflect expected forfeitures over the vesting period. Upon adoption, the Company will no longer apply a forfeiture rate and instead will account for forfeitures as they occur. The Company applied the modified retrospective adoption approach and recorded a cumulative-effect adjustment of approximately $0.7 million to opening retained earnings. Prior periods have not been adjusted. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will require both types of leases to be recognized on the balance sheet. The new guidance is effective for all periods beginning after December 15, 2018 and we are currently evaluating the effects that the adoption of ASU No. 2016-02 will have, but anticipate that the new guidance will materially impact our consolidated financial statements given the significance of our leases. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As originally issued, this guidance was effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption was not permitted. In July 2015, the FASB deferred the effective date by one year, to interim and annual reporting periods beginning after December 15, 2017. Early adoption was permitted, but not before the original effective date of December 15, 2016. The standard allows entities to apply the standard retrospectively to each prior reporting period presented (“full retrospective adoption”) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application (“modified retrospective adoption”). We adopted ASU No. 2014-09 under the modified retrospective option effective April 1, 2018. We have completed several key accounting assessments related to the standard and are in the process of finalizing our remaining assessments and quantifying the required cumulative effect adjustments upon adoption. We continue to evaluate and implement changes to related processes, systems, and internal controls. Our evaluation has included determining whether the unit of account (performance obligations) will change as compared to current GAAP, as well as determining the standalone selling price of each of our performance obligations. We believe our performance obligations will remain substantially unchanged from current guidance. We currently allocate revenue to our software licenses under the residual method when VSOE exists for the remaining undelivered elements. The residual method allocates any future credits or significant discounts entirely to the software license. The adoption of ASU No. 2014-09 will result in future credits, significant discounts, and material rights under this guidance to be allocated to all performance obl |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring 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. In addition, we assess the property and equipment associated with the related facilities for impairment. The remaining useful lives of property and equipment associated with the related operations are re-evaluated based on the respective restructuring plan, resulting in the acceleration of depreciation and amortization of certain assets. Fiscal 2018 Restructuring Plan During fiscal 2018, we continued our ongoing efforts to create more efficient teams across the business, which included certain executive changes during the year. To date, we have recorded $1.6 million in restructuring charges related to the fiscal 2018 restructuring plan, comprised of severance and other employee related benefits. As of March 31, 2018, there was a remaining liability of $0.2 million for the fiscal 2018 restructuring plan. Fiscal 2016 Restructuring Plan 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. To date, we have recorded $0.5 million in restructuring charges related to the fiscal 2016 restructuring plan, comprised of severance, other employee related benefits and early lease termination. As of March 31, 2017 there was no remaining liability for the fiscal 2016 restructuring plan. Following is a reconciliation of the beginning and ending balances of the restructuring liability: Balance at Balance at March 31, March 31, (In thousands) 2017 Provision Payments 2018 Fiscal 2018 Restructuring Plan: Severance and employment costs $ — $ 1,639 $ (1,441 ) $ 198 Total restructuring costs — 1,639 (1,441 ) 198 Balance at Balance at March 31, March 31, (In thousands) 2016 Provision Payments 2017 Fiscal 2016 Restructuring Plan: Severance and employment costs $ 311 $ 200 $ (511 ) $ — Lease early terminations — 43 (43 ) — Total restructuring costs 311 243 (554 ) — |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment at March 31, 2018 and 2017 is as follows: Year ended March 31, (In thousands) 2018 2017 Furniture and equipment $ 10,671 $ 7,955 Software 11,885 12,013 Leasehold improvements 6,819 6,317 Project expenditures not yet in use 4,187 2,217 33,562 28,502 Accumulated depreciation and amortization (16,050 ) (12,502 ) Property and equipment, net $ 17,512 $ 16,000 Total depreciation expense on property and equipment was $2.6 million , $2.4 million , and $2.2 million during fiscal 2018 , 2017 and 2016 , respectively. The Company capitalizes internal-use software, including software used exclusively in providing services or that is only made available to customers as a software service, as property and equipment under ASC 350-40, Internal-Use Software. Total amortization expense on capitalized internal-use software was $1.8 million , $1.4 million and $1.2 million during fiscal 2018 , 2017 , and 2016 , respectively. Assets under capital leases are included in property and equipment categories above. Total assets under capital leases at March 31, 2018 and 2017 are as follows: Year ended March 31, (In thousands) 2018 2017 Capital leases $ 679 $ 702 Less accumulated depreciation (509 ) (474 ) Assets under capital lease, net $ 170 $ 228 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Intangible Assets and Software Development Costs The following table summarizes our intangible assets and software development costs at March 31, 2018 , and 2017 : 2018 2017 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 10,660 (10,398 ) 262 10,660 (10,398 ) 262 Accumulated impairment (262 ) N/A (262 ) (262 ) N/A (262 ) Trade names 230 (146 ) 84 230 (100 ) 130 Patented technology 80 (80 ) — 80 (80 ) — 24,183 (24,099 ) 84 24,183 (24,053 ) 130 Indefinite-lived 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 $ 32,583 $ (24,099 ) $ 8,484 $ 32,583 $ (24,053 ) $ 8,530 Software development costs $ 54,759 $ (20,372 ) $ 34,387 $ 47,989 $ (10,356 ) $ 37,633 Project expenditures not yet in use 12,185 N/A 12,185 10,757 N/A 10,757 Accumulated impairment (1,391 ) N/A (1,391 ) (1,391 ) N/A (1,391 ) Total software development costs $ 65,553 $ (20,372 ) $ 45,181 $ 57,355 $ (10,356 ) $ 46,999 Indefinite-lived intangible assets, comprised of our purchased trade name InfoGenesis™ as of March 31, 2018 and 2017 are tested for impairment upon identification of impairment indicators or at least annually. An impairment loss is recognized if the carrying amount is greater than fair value. The InfoGenesis™ indefinite-lived purchased trade name impairment testing resulted in a fair value exceeding the carrying amount for the years ending March 31, 2018, 2017 and 2016. At each balance sheet date, the unamortized capitalized software development costs for external use is compared to the net realizable value of that product by analyzing critical inputs such as costs necessary to bring the software to market, life of the software, and market capacity. The amount by which unamortized software costs exceeds the net realizable value, if any, is recognized as a charge to income in the period it is determined. As of March 31, 2016, we determined that the remaining net book value of our acquired developed technology WMx®™ exceeded its net realizable value resulting in an impairment charge of $0.3 million . These charges are classified within "Impairments and other fair value adjustments" in the Consolidated Statements of Operations. 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, 2019 $ 10,504 2020 9,765 2021 9,680 2022 2,568 2023 563 Total $ 33,080 Amortization expense related to software development costs related to assets to be sold, leased, or otherwise marketed was $10.0 million , $8.0 million and $1.0 million for the fiscal years ended March 31, 2018 , 2017 and 2016 , respectively. These charges are included as Products cost of goods sold within the Consolidated Statements of Operations. Amortization expense relating to other definite-lived intangible assets was $46,000 for the fiscal years ended March 31, 2018 , 2017 and 2016 . These charges are classified as operating expenses within the Consolidated Statements of Operations. Capitalized software development costs are carried on our balance sheet at net realizable value, net of accumulated amortization. We capitalized approximately $8.2 million , $11.9 million and $13.3 million during fiscal 2018 , 2017 and 2016 , respectively. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The following is a summary of long-term obligations at March 31, 2018 , and 2017 : (In thousands) 2018 2017 Capital lease obligations $ 177 $ 237 Less: current maturities (120 ) (121 ) Long -term capital lease obligations $ 57 $ 116 Capital Leases Agilysys leases certain equipment under capital leases expiring in various years through fiscal 2021. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are depreciated over the shorter of their related lease terms or their estimated productive lives. Assets recorded under capital leases were $0.7 million as of March 31, 2018 and 2017 . Accumulated depreciation related to assets recorded under capital leases was $0.5 million as of March 31, 2018 and 2017 . Depreciation of assets under capital leases is included in depreciation expense. Minimum future lease payments under capital leases as of March 31, 2018 , are as follows: (In thousands) Amount Fiscal year ending March 31, 2019 $ 129 2020 27 2021 37 Total minimum lease payments $ 193 Less: amount representing interest (16 ) Present value of minimum lease payments $ 177 Interest rates on capitalized leases of 4.5% are imputed based on the lower of our incremental borrowing rate at the inception of each lease or the lessor's implicit rate of return. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Additional information related to the Consolidated Statements of Cash Flows is as follows: Year ended March 31, (In thousands) 2018 2017 2016 Cash payments for interest, net (88 ) (147 ) (64 ) Cash payments for income tax, net (227 ) 19 17 Acquisition of property and equipment under lease obligations 64 21 287 Accrued capital expenditures 83 411 59 Accrued capitalized software development costs 201 922 959 Leasehold improvements acquired under operating lease arrangement 95 35 997 |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 12 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Additional Balance Sheet Information Additional information related to the Consolidated Balance Sheets is as follows: Year ended March 31, (In thousands) 2018 2017 Accrued liabilities: Salaries, wages, and related benefits $ 6,793 $ 6,473 Other taxes payable 769 750 Restructuring liabilities 198 — Severance liabilities — 11 Professional fees 288 221 Deferred rent 407 433 Other 786 443 Total $ 9,241 $ 8,331 Other non-current liabilities: Uncertain tax positions $ 1,519 $ 1,479 Deferred rent 2,313 2,444 Other 79 79 Total $ 3,911 $ 4,002 Accounts Receivable, net Accounts receivable, net of allowance for doubtful accounts was $16.4 million and $15.6 million as of March 31, 2018 and March 31, 2017, respectively. The related allowance for doubtful accounts was $0.9 million and $0.5 million as of March 31, 2018 and March 31, 2017, respectively. In January of 2015, Caesars Entertainment Operating Company, Inc. and certain of its affiliates (Caesars) entered bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. We filed proof of claim with the Bankruptcy Court identifying approximately $0.7 million of pre-petition claims. Caesars emerged from bankruptcy in October 2017. As of March 31, 2018, we have collected on all of the $0.7 million of pre-petition claims that were outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the year ended March 31, loss before income taxes consisted of the following: (In thousands) 2018 2017 2016 Loss before income taxes United States $ (11,926 ) $ (10,967 ) $ (3,874 ) Foreign 325 (518 ) 115 Total loss before income taxes $ (11,601 ) $ (11,485 ) $ (3,759 ) For the year ended March 31, income tax expense (benefit) consisted of the following: (In thousands) 2018 2017 2016 Income tax expense (benefit) Current: Federal $ 66 $ 10 $ (2 ) State and local (446 ) 5 (52 ) Foreign 73 107 59 Deferred: Federal (2,985 ) 96 19 State and local 41 10 10 Foreign — 8 (28 ) Total income tax expense (benefit) $ (3,251 ) $ 236 $ 6 The following table presents the principal components of the difference between the effective tax rate for continuing operations to the U.S. federal statutory income tax rate for the years ended March 31: (In thousands) 2018 2017 2016 Income tax benefit at the US Federal statutory rate $ (3,654 ) $ (4,019 ) $ (1,317 ) Benefit for state taxes (642 ) (142 ) (54 ) Impact of foreign operations 38 158 (9 ) Indefinite life assets 335 102 26 Officer life insurance (5 ) (6 ) (197 ) Change in valuation allowance 3,328 4,007 1,555 Change in liability for unrecognized tax benefits 40 9 (29 ) Impact of Tax Act, net (3,287 ) — — Meals and entertainment 81 163 100 Equity 476 — — Other 39 (36 ) (69 ) Total income tax expense (benefit) $ (3,251 ) $ 236 $ 6 On December 22, 2017, the President of the United States of America signed into law the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act contains significant changes to corporate taxes, including a permanent reduction of the corporate tax rate from 35% to 21% effective January 1, 2018. The reduction in the corporate rate requires a revaluation of certain tax-related assets and liabilities. As a result of the revaluation of our deferred tax assets and liabilities and the ability to offset indefinite lived deferred tax liabilities with certain deferred tax assets, we recorded a tax benefit of approximately $3.3 million . On December 22, 2017 the staff of the Securities and Exchange Commission issued Staff Accounting Bulletin (“SAB”) No. 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB No. 118 allows registrants to record provisional amounts for a period up to one year from the date of enactment of the Tax Act when the registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. It is uncertain if and to what extent various states will enact legislation to conform to the Tax Act. Because legislative guidance and accounting interpretations are expected in the future, we consider the accounting of the deferred tax remeasurement including the ability to offset indefinite lived deferred tax liabilities with certain deferred tax assets to be incomplete and therefore only consider amounts related to these items to be reasonably estimated as of March 31, 2018. We expect to refine and compete the accounting for the Tax Act during Fiscal 2019 as we obtain, prepare, and analyze additional information and as additional legislative, regulatory, and accounting guidance and interpretations become available. Our tax provision includes a provision for income taxes in certain foreign jurisdictions where subsidiaries are profitable, but only a minimal benefit is reflected related to U.S. and certain foreign tax losses due to the uncertainty of the ultimate realization of future benefits from these losses. The 2018 tax provision results primarily from a reduction in the deferred rate and the ability to offset indefinite lived deferred tax liabilities with certain deferred tax assets due to passage of the Tax Act. The 2018 tax provision differs from the statutory rate primarily due to the impact of the Tax Act, recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, certain foreign and state tax effects including a benefit of $0.4 million related to a settlement with the California Franchise Tax Board and other U.S. permanent book to tax differences. The 2017 tax provision primarily results from state taxes, taxes withheld in foreign jurisdictions and foreign tax expense. The 2017 tax provision differs from the statutory rate primarily due to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, state taxes and other U.S. permanent book to tax differences. The 2016 tax provision differs from the statutory rate primarily due to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, death benefits on company owned life insurance, state taxes and other U.S. permanent book to tax differences. Deferred tax assets and liabilities as of March 31, are as follows: (In thousands) 2018 2017 Deferred tax assets: Accrued liabilities $ 2,720 $ 3,892 Allowance for doubtful accounts 143 126 Inventory valuation reserve 20 38 Federal losses and credit carryforwards 42,713 64,953 Foreign net operating losses 623 392 State losses and credit carryforwards 9,592 9,474 Deferred revenue 652 704 Goodwill and other intangible assets 286 1,332 Other 96 152 56,845 81,063 Less: valuation allowance (54,260 ) (80,013 ) Total 2,585 1,050 Deferred tax liabilities: Property and equipment & software amortization (412 ) (772 ) Indefinite-lived goodwill & intangible assets (2,277 ) (3,459 ) Total (2,689 ) (4,231 ) Total deferred tax liabilities $ (104 ) $ (3,181 ) At March 31, 2018, we had $198.7 million of a federal net operating loss carryforwards that expire, if unused, in fiscal years 2031 to 2038. Included in this net operating loss is $4.4 million of tax deductions in excess of recorded windfall tax benefits associated with stock-based compensation that was recognized upon the implementation of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, that amended several aspects of accounting for share-based payment transactions, including income tax consequences. Our Hong Kong, Malaysia, Singapore and Philippine subsidiaries have $0.3 , $0.1 , $0.1 and $0.1 million of net operating loss carryforwards respectively. The losses for Hong Kong, Malaysia and Singapore can be carried forward indefinitely while the losses for the Philippines have a 3 year carryforward. At March 31, 2018 our India subsidiary had $0.1 million of minimum alternative tax credits reported as other noncurrent assets on our consolidated balance sheet. Our India subsidiary operates in a “Special Economic Zone (“SEZ”)”. One of the benefits associated with the SEZ is that the India subsidiary is not subject to regular India income taxes during its first 5 years of operations. At March 31, 2018 we also had $134.7 million of state net operating loss carryforwards that expire, if unused, in fiscal years 2019 through 2038. We recorded valuation allowances related to certain deferred income tax assets due to the uncertainty of the ultimate realization of the future benefits from those assets. At March 31, 2018, the total valuation allowance against deferred tax assets of $54.3 million was comprised of a valuation allowance of $53.7 million for federal and state deferred tax assets, and a valuation allowance of $0.6 million associated with deferred tax assets in Hong Kong, Malaysia, Singapore and the Philippines. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. 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. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected taxable income, and tax planning strategies in making this assessment. In order to fully realize the deferred tax assets, we will need to generate future taxable income before the expiration of the deferred tax assets governed by the tax code. Because of our losses in current and prior periods, management believes that it is more-likely-than-not that we will not realize the benefits of these deductible differences. The amount of the valuation allowance, however, could be reduced in the near term. The exact timing will be based on the level of profitability that we are able to achieve and our visibility into future results. Our recorded tax rate may increase in subsequent periods following a valuation release. Any valuation allowance release will not affect the amount of cash paid for income taxes. The undistributed earnings of our foreign subsidiaries are not subject to U.S. federal and state income taxes unless such earnings are distributed in the form of dividends or otherwise to the extent of current and accumulated earnings and profits. The undistributed earnings of foreign subsidiaries are permanently reinvested and totaled $1.7 million and $1.3 million as of March 31, 2018 and 2017, respectively. We made the determination of permanent reinvestment on the basis of sufficient evidence that demonstrates we will invest the undistributed earnings overseas indefinitely for use in working capital, as well as foreign acquisitions and expansion. The determination of the amount of the unrecognized deferred U.S. income tax liability related to the undistributed earnings is not practicable. We use the with-and-without approach for ordering tax benefits derived from the share-based payment awards. Using the with-and-without approach, actual income taxes payable for the period are compared to the amount of tax payable that would have been incurred absent the deduction for employee share-based payments in excess of the amount of compensation cost recognized for financial reporting. As a result of this approach, tax net operating loss carryforwards not generated from share-based payments in excess of cost recognized for financial reporting are considered utilized before the current period's share-based deduction. We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31: (In thousands) 2018 2017 2016 Balance at April 1 $ 988 $ 1,617 $ 1,755 Reductions: Relating to tax settlements — — (85 ) Relating to positions taken during prior year (300 ) (604 ) — Relating to lapse in statute (1 ) (25 ) (53 ) Balance at March 31 $ 687 $ 988 $ 1,617 As of March 31, 2018, we had a liability of $0.7 million related to uncertain tax positions, the recognition of which would affect our effective income tax rate. Although the timing and outcome of tax settlements are uncertain, it is reasonably possible that during the next 12 months a reduction in unrecognized tax benefits may occur in the range of zero to $0.3 million as a result of the expiration of various statutes of limitations. We are routinely audited and the outcome of tax examinations could also result in a reduction in unrecognized tax benefits. Other changes could occur in the amount of gross unrecognized tax benefits during the next 12 months which cannot be estimated at this time. We recognize interest accrued on any unrecognized tax benefits as a component of income tax expense. Penalties are recognized as a component of general and administrative expenses. We recognized interest and penalty expense of less than $0.1 million for the years ended March 31, 2018, 2017 and 2016. As of March 31, 2018 and 2017, we had approximately $0.8 million and $0.8 million of interest and penalties accrued. In the U.S. we file consolidated federal and state income tax returns where statutes of limitations generally range from three to five years. Although we have resolved examinations with the IRS through tax year ended March 31, 2010, U.S. federal tax years are open from 2006 forward due to attribute carryforwards. The statute of limitations is open from fiscal year 2011 forward in certain state jurisdictions. We also file income tax returns in international jurisdictions where statutes of limitations generally range from three to seven years. Years beginning after 2007 are open for examination by certain foreign taxing authorities. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan We maintain 401(k) plans for employees meeting certain service requirements. Generally, the plans allow eligible employees to contribute a portion of their compensation, and we match 100% of the first 1% of the employee's pre-tax contributions and 50% of the next 5% of the employee's pre-tax contributions. We may also make discretionary contributions each year for the benefit of all eligible employees under the plans. Agilysys matching contributions were $1.7 million , $1.4 million , and $1.5 million in fiscal 2018 , 2017 , and 2016 , respectively. Endorsement Split-Dollar Life Insurance Agilysys provides certain former executives with life insurance benefits through endorsement split-dollar life insurance arrangements. We entered into non-cancelable agreements with each of the former executives, whereby we must maintain the life insurance policy for a specified amount and split a portion of the policy benefits with their designated beneficiary. In fiscal 2016, we increased the value of two of these policies by $0.5 million due to the anticipated redemption and recorded the benefit in "Other (income) expenses, net" in the accompanying Consolidated Statements of Operations. During fiscal 2017, we received $2.2 million related to the death benefit due to us on redemption of two of these policies. Our investment in these corporate-owned life insurance policies were recorded at their cash surrender value, which approximates fair value at the balance sheet date. In the consolidated balance sheets as of March 31, 2018, the cash surrender value of $0.9 million for the remaining policies were held in “Other non-current assets,” and the present value of future proceeds owed to those executives' designated beneficiaries of $0.1 million , which approximates fair value, were recorded within "Other non-current liabilities." At March 31, 2017, the aggregate cash surrender value of the underlying corporate-owned split-dollar life insurance contracts which were classified within "Other non-current assets” in our Consolidated Balance Sheets was $0.8 million . Changes in the cash surrender value of these policies related to gains and losses incurred on these investments are classified within “Other (income) expenses, net” in the accompanying Consolidated Statements of Operations. We recorded a gain of $17,000 dollars in fiscal 2018, a gain of $18,000 in fiscal 2017 and a gain of $0.6 million in fiscal 2016 related to the corporate-owned life insurance policies. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases We lease certain facilities and equipment under non-cancelable operating leases which expire at various dates through fiscal 2024 and require us to pay a portion of the related operating expenses such as maintenance, property taxes, and insurance. Certain facilities and equipment leases contain renewal options for periods up to ten years. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. Certain facilities leases have free or escalating rent payment provisions. Rent expense under such leases is recognized on a straight-line basis over the lease term. The following is a schedule by year of future minimum rental payments required under operating leases, excluding the related operating expenses, which have initial or remaining non-cancelable lease terms in excess of a year as of March 31, 2018 : (In thousands) Amount Fiscal year ending March 31, 2019 $ 3,751 2020 3,468 2021 3,375 2022 2,506 2023 1,052 Thereafter 717 Total minimum lease payments $ 14,869 Rental expense for all non-cancelable operating leases amounted to $3.2 million , $2.8 million , and $2.7 million for fiscal 2018 , 2017 , and 2016 , respectively. Legal 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. The complaint 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 three patents 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 per Share
Loss per Share | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss per Share | Loss per Share The following data shows the amounts used in computing loss per share and the effect on earnings and the weighted average number of shares of dilutive potential common shares. Year ended March 31, (In thousands, except per share data) 2018 2017 2016 Numerator: Net loss $ (8,350 ) $ (11,721 ) $ (3,765 ) Denominator: Weighted average shares outstanding - basic and diluted 22,801 22,615 22,483 Loss per share - basic and diluted: Net loss per share-basic and diluted $ (0.37 ) $ (0.52 ) $ (0.17 ) Anti-dilutive stock options, SSARs, restricted shares and performance shares 756 1,004 1,682 Basic earnings (loss) per share is computed as net 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 334,817 , 490,355 and 343,585 of restricted shares and performance shares at March 31, 2018 , 2017 and 2016 , respectively, as these shares were issued but were not vested and, therefore, not considered outstanding for purposes of computing basic earnings per share at the balance sheet dates. Diluted earnings (loss) per share includes the effect of all potentially dilutive securities on earnings per share. We have stock options, stock-settled appreciation rights ("SSARs"), unvested restricted shares and unvested performance shares that are potentially dilutive securities. When a loss is reported, the denominator of diluted earnings per share cannot be adjusted for the dilutive impact of share-based compensation awards because doing so would be anti-dilutive. In addition, when a net loss is reported, adjusting the denominator of diluted earnings per share would also be anti-dilutive to the loss per share, even if the entity has net income after adjusting for a discontinued operation. Therefore, for all periods presented, basic weighted-average shares outstanding were used in calculating the diluted net loss per share. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Mar. 31, 2018 | |
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 2006 Stock Incentive Plan (the 2006 Plan) that still has vested awards outstanding. Awards are no longer being granted from this incentive plan. 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. For stock options and SSARs, the exercise price must be set at least equal to the closing market price of our common shares on the date of grant. The maximum term of stock option and SSAR awards is seven years from the date of grant. Stock option and SSARs awards vest over a period established by the Compensation Committee of the Board of Directors. SSARs may be granted in conjunction with, or independently from, stock option grants. SSARs granted in connection with a stock option are exercisable only to the extent that the stock option to which it relates is exercisable and the SSARs terminate upon the termination or exercise of the related stock option grants. Restricted shares and restricted share units, whether time-vested or performance-based, may be issued at no cost or at a purchase price that may be below their fair market value, but are subject to forfeiture and restrictions on their sale or other transfer. Performance-based awards may be conditioned upon the attainment of specified performance objectives and other conditions, restrictions, and contingencies. Restricted shares and restricted share units have the right to receive dividends, or dividend equivalents in the case of restricted share units, if any, upon vesting, subject to the same forfeiture provisions that apply to the underlying awards. Subject to certain exceptions set forth in the 2016 Plan, for awards to employees, no performance-based restricted shares or restricted share units shall be based on a restriction period of less than one year, and any time-based restricted shares or restricted share units shall have a minimum restriction period of three years. We record compensation expense related to stock options, stock-settled stock appreciation rights, 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 stock-settled appreciation right 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 Consolidated Statements of Operations for fiscal 2018 , 2017 and 2016 : Year ended March 31, (In thousands) 2018 2017 2016 Product development $ 1,306 $ 1,545 $ 1,183 Sales and marketing 371 360 68 General and administrative 3,011 522 2,154 Total share-based compensation expense $ 4,688 $ 2,427 $ 3,405 Stock-Settled Stock Appreciation Rights Stock-Settled 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 only in common shares of Agilysys. We use a Black-Scholes-Merton option pricing model to estimate the fair value of SSARs. The following table summarizes the principal assumptions utilized in valuing SSARs granted in fiscal 2018 , 2017 and 2016 : 2018 2017 2016 Risk-free interest rate 1.74%-1.94% 0.94%-2.14% 1.53%-1.61% Expected life (in years) 5 5 5 Expected volatility 32.42% - 32.84% 35.25%-40.22% 46.34%-47.25% Weighted average grant date fair value $3.36 $3.69 $3.95 The risk-free interest rate is based on the yield of a zero coupon U.S. Treasury bond whose maturity period approximates the expected life of the SSARs. The expected life is estimated using historical data representing the period of time the awards are expected to be outstanding. The estimated fair value of the SSARs granted is recognized over the vesting period of the awards utilizing the graded vesting method. Under this method, the compensation cost related to unvested amounts begins to be recognized as of the grant date. The following table summarizes the activity during fiscal 2018 for SSARs awarded under the 2016 and 2011 Plans: (In thousands, except share and per share data) Number of Rights Weighted- Average Exercise Price Remaining Contractual Term Aggregate Intrinsic Value (per right) (in years) Outstanding at April 1, 2017 1,094,978 $ 10.44 Granted 204,213 10.56 Exercised (41,691 ) 9.14 Forfeited (99,661 ) 10.02 Cancelled/expired (54,679 ) 9.56 Outstanding at March 31, 2018 1,103,160 $ 10.60 5.2 $ 1,570 Exercisable at March 31, 2018 604,596 $ 10.46 4.6 $ 996 Vested and expected to vest at March 31, 2018 1,103,160 $ 10.60 5.2 $ 1,570 The following table presents additional information related to SSARs activity during fiscal 2018 , 2017 and 2016 : (In thousands) 2018 2017 2016 Compensation expense $ 1,869 $ 621 $ 1,200 Total intrinsic value of SSARs exercised $ 88 $ 360 $ 32 Total fair value of SSARs vesting $ 1,325 $ 497 $ 1,069 As of March 31, 2018 , total unrecognized stock based compensation expense related to non-vested SSARs was $0.8 million, which is expected to be recognized over the weighted-average vesting period of 1.8 years. A total of 5,456 shares, net of 2,328 shares withheld to cover the employee’s minimum applicable income taxes, were issued from treasury shares to settle SSARs exercised during the twelve months ended March 31, 2018 . The shares withheld were returned to treasury shares. Restricted Shares We granted shares to certain of our Directors, executives and key employees under the 2016 and 2011 Plans, the vesting of which is service-based. The following table summarizes the activity during the twelve months ended March 31, 2018 for restricted shares awarded under the 2016 and 2011 Plans: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2017 490,355 $ 10.72 Granted 267,442 11.11 Vested (369,683 ) 11.02 Forfeited (144,760 ) 10.58 Outstanding at March 31, 2018 243,354 $ 10.78 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. During fiscal 2018 , a total of 264,079 shares, net of 105,604 shares withheld from the vested restricted shares to cover the employee's minimum applicable income taxes, were issued from treasury. The shares withheld were returned to treasury shares. The following table presents additional information related to restricted stock activity during fiscal years 2018 , 2017 , and 2016 : (In thousands) 2018 2017 2016 Compensation expense $ 2,594 $ 1,770 $ 2,167 Total fair value of restricted share vesting $ 4,315 $ 1,182 $ 1,638 As of March 31, 2018 , total unrecognized stock based compensation expense related to non-vested restricted stock was $1.6 million , which is expected to be recognized over a weighted-average vesting period of 1.8 years. We do not include restricted stock in the calculation of earnings per share until the shares are vested. Performance Shares The following table summarizes the activity during fiscal 2018 for performance shares awarded under the 2011 Plan: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2017 — $ — Granted 91,463 9.84 Vested — $ — Outstanding at March 31, 2018 91,463 $ 9.84 Based on the performance goals, management estimates a liability of $225,000 to be settled through the vesting of a variable number of the performance shares subsequent to March 31, 2018. As of March 31, 2018, total stock based compensation expense related to performance shares has been fully recognized. The following table presents additional information related to performance share activity during the fiscal 2018 , 2017 , and 2016 : (In thousands) 2018 2017 2016 Compensation expense $ 225 $ 36 $ 39 Total fair value of performance share vesting $ — $ 83 — Once attainment of the performance goals becomes probable, compensation expense related to performance share awards is recognized ratably over the vesting period based upon the closing market price of our common shares on the grant date. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 twelve months ended March 31, 2018 . 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 value as of Active markets for identical assets or liabilities Quoted prices in similar instruments and observable inputs Active markets for unobservable inputs (In thousands) March 31, 2018 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — non-current $ 853 — — $ 853 Fair value measurement used Recorded value as of Active markets for identical assets or liabilities Quoted prices in similar instruments and observable inputs Active markets for unobservable inputs (In thousands) March 31, 2017 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — non-current $ 809 — — $ 809 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 expenses (income), net” in the Consolidated Statements of Operations. The following table presents a summary of changes in the fair value of the corporate-owned life insurance Level 3 asset for the fiscal years ended March 31, 2018 and 2017 : Level 3 assets and liabilities (In thousands) 2018 2017 Corporate-owned life insurance: Balance on April 1 $ 809 $ 3,122 Realized gains 17 18 Unrealized (loss) gain relating to instruments held at reporting date 27 (123 ) Purchases, sales, issuances and settlements, net — (2,208 ) Balance on March 31 $ 853 $ 809 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) Because quarterly reporting of per share data is used independently for each reporting period, the sum of per share amounts for the four quarters in the fiscal year will not necessarily equal annual per share amounts. GAAP prohibits retroactive adjustment of quarterly per share amounts so that the sum of those amounts equals amounts for the full year. We have traditionally experienced seasonal revenue weakness during our fiscal first quarter ending June 30. Additionally, the timing of large one-time orders, such as those associated with significant remarketed product sales around large customer refresh cycles or significant volume rollouts, occasionally creates volatility in our quarterly results. Year ended March 31, 2018 First Second Third Fourth Year (In thousands except per share data) Quarter Quarter Quarter Quarter Net revenue $ 33,865 $ 30,129 $ 31,310 $ 32,056 $ 127,360 Gross profit 16,670 15,370 15,628 16,749 64,417 Restructuring, severance and other charges 37 826 378 557 1,798 Legal settlements — — 150 — 150 Net loss $ (2,958 ) $ (3,248 ) $ (1,934 ) $ (210 ) $ (8,350 ) Per share data-basic and diluted Net loss $ (0.13 ) $ (0.14 ) $ (0.08 ) $ (0.01 ) $ (0.37 ) Year ended March 31, 2017 First Second Third Fourth Year (In thousands except per share data) Quarter Quarter Quarter Quarter Net revenue $ 30,953 $ 32,676 $ 33,448 $ 30,602 $ 127,678 Gross profit 16,191 15,879 16,241 15,475 63,785 Restructuring, severance and other charges 89 — 1,395 77 1,561 Legal settlements — 85 — — 85 Net loss $ (2,297 ) $ (2,400 ) $ (1,737 ) $ (5,287 ) $ (11,721 ) Net loss Per share data-basic and diluted $ (0.10 ) $ (0.11 ) $ (0.08 ) $ (0.23 ) $ (0.52 ) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event None. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transaction During fiscal 2018 we entered into certain consulting arrangements and paid approximately $0.1 million in fees to a company that our CEO has an ownership interest in of less than 2% and whose principal owner was a director of one of our foreign subsidiaries. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts Years ended March 31, 2018, 2017 and 2016 Balance at Charged to Balance at beginning of costs and end of (In thousands) year expenses Deductions year 2018 Deferred tax valuation allowance $ 80,013 $ (25,753 ) $ — $ 54,260 Allowance for doubtful accounts $ 509 $ 1,063 $ (672 ) $ 900 2017 Deferred tax valuation allowance $ 77,846 $ 2,167 $ — $ 80,013 Allowance for doubtful accounts $ 617 $ 648 $ (756 ) $ 509 2016 Deferred tax valuation allowance $ 76,420 $ 1,426 $ — $ 77,846 Allowance for doubtful accounts $ 888 $ 942 $ (1,213 ) $ 617 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation. The consolidated financial statements include the accounts of Agilysys, Inc. and subsidiaries. Investments in affiliated companies are accounted for by the equity or cost method, as appropriate. All inter-company accounts have been eliminated. |
Use of estimates | Use of estimates. Preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents. We consider all highly liquid investments purchased with an original maturity from date of acquisition of three months or less to be cash equivalents. Other highly liquid investments considered cash equivalents with no established maturity date are fully redeemable on demand (without penalty) with settlement of principal and accrued interest on the following business day after instruction to redeem. Such investments are readily convertible to cash with no penalty and can include certificates of deposit, commercial paper, treasury bills, money market funds and other investments. |
Allowance for doubtful accounts | Allowance for doubtful accounts. We maintain allowances for doubtful accounts for estimated losses resulting from the inability or unwillingness of our customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as historic trends of the entire customer pool. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. To mitigate this credit risk we perform periodic credit evaluations of our customers. |
Inventories | Inventories. Our inventories are comprised of finished goods. Inventories are stated at the lower of cost or market, net of related reserves. The cost of inventory is computed using a weighted-average method. Our inventory is monitored to ensure appropriate valuation. Adjustments of inventories to the lower of cost or market, if necessary, are based upon contractual provisions such as turnover and assumptions about future demand and market conditions. If assumptions about future demand change and/or actual market conditions are less favorable than those projected by management, additional adjustments to inventory valuations may be required. We provide a reserve for obsolescence, which is calculated based on several factors, including an analysis of historical sales of products and the age of the inventory. Actual amounts could be different from those estimated. |
Goodwill | Goodwill and Other Indefinite-Lived Intangible Assets. Goodwill represents the excess purchase price paid over the fair value of the net assets of acquired companies. The carrying amount of goodwill was $19.6 million as of March 31, 2018 and 2017. Goodwill is tested for impairment on an annual basis, or in interim periods if indicators of potential impairment exist. The Company evaluates whether goodwill is impaired by comparing its market capitalization based on its closing stock price (Level 1 input) to the book value of its equity on the annual evaluation date. Based on testing performed, the Company concluded that no impairment of its goodwill has occurred for the years ended March 31, 2018, 2017 and 2016. The Company is also required to compare the fair values of other indefinite-lived intangible assets to their carrying amounts at least annually, or when current events and circumstances require an interim assessment. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized. |
Intangible assets | Intangible assets. Purchased intangible assets with finite lives are primarily amortized using the straight-line method over the estimated economic lives of the assets. Our finite-lived intangible assets are amortized over periods between two and eight years. Customer relationships are amortized over estimated useful lives between two and seven years; non-competition agreements are amortized over estimated useful lives between two and eight years; developed technology is amortized over estimated useful lives between three and eight years; supplier relationships are amortized over estimated useful lives between two and eight years. |
Long-lived assets | Long-lived assets. Property and equipment are recorded at cost. Major renewals and improvements are capitalized. Minor replacements, maintenance, repairs, and reengineering costs are expensed as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is recognized. Depreciation and amortization are provided in amounts sufficient to amortize the cost of the assets, including assets recorded under capital leases, which make up less than one percent of total assets, over their estimated useful lives using the straight-line method. The estimated useful lives for depreciation and amortization are as follows: buildings and building improvements - 7 to 30 years; furniture - 7 to 10 years; equipment - 3 to 10 years; software - 3 to 10 years; and leasehold improvements over the shorter of the economic life or the lease term. Internal use software costs are expensed or capitalized depending on the project stage. Amounts capitalized are amortized over the estimated useful lives of the software, ranging from 3 to 10 years, beginning with the project's completion. Capitalized project expenditures are not depreciated until the underlying project is completed. We evaluate the recoverability of our long-lived assets whenever changes in circumstances or events may indicate that the carrying amounts may not be recoverable. An impairment loss is recognized in the event the carrying value of the assets exceeds the future undiscounted cash flows attributable to such assets. |
Foreign currency translation | Foreign currency translation. The financial statements of our foreign operations are translated into U.S. dollars for financial reporting purposes. The assets and liabilities of foreign operations whose functional currencies are not in U.S. dollars are translated at the period-end exchange rates, while revenue and expenses are translated at weighted-average exchange rates during the fiscal year. The cumulative translation effects are reflected as a component of “Accumulated other comprehensive loss” within shareholders' equity in the Consolidated Balance Sheets. Gains and losses on monetary transactions denominated in other than the functional currency of an operation are reflected within “Other (income) expenses, net” in the Consolidated Statements of Operations. Foreign currency gains and losses from changes in exchange rates have not been material to our consolidated operating results. |
Revenue recognition | Revenue recognition. We derive revenue from the sale of products (i.e., server, storage, and point of sale hardware, and software), support, maintenance and subscription services and professional services. Revenue is recorded in the period in which the goods are delivered or services are rendered and when the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price to the customer is fixed or determinable, and collection is reasonably assured. We reduce revenue for estimated discounts, sales incentives, estimated customer returns, and other allowances. Discounts are offered based on the volume of products and services purchased by customers. Shipping and handling fees billed to customers are recognized as revenue and the related costs are recognized in cost of goods sold. Revenue is recorded net of any applicable taxes collected and remitted to governmental agencies. For the fiscal years 2018 , 2017 and 2016 , revenue from international operations was 8% , 6% and 4% , respectively of total revenue. Our current customer base is highly fragmented, with the exception of one customer representing 10% of consolidated revenue for the year ended March 31, 2017. We frequently enter into multiple-element arrangements with customers including hardware, software, professional consulting services and maintenance support services. For arrangements involving multiple deliverables, when deliverables include software and non-software products and services, we evaluate and separate each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (a) the delivered item has value to the customer on a stand-alone basis; and (b) if the contract includes a general right of return relative to the delivered item, delivery or performance of the undelivered items is considered probable and substantially in our control. Consideration is allocated to each unit of accounting based on the unit's relative selling prices. In such circumstances, we use a hierarchy to determine the selling price to be used for allocating revenue to each deliverable: (i) vendor-specific objective evidence of selling price (VSOE), and (ii) best estimate of selling price (BESP). VSOE generally exists only when we sell the deliverable separately and is the price actually charged by us for that deliverable. VSOE is established for our software maintenance services and we use BESP to establish selling prices for our non-software related services. BESP is primarily used for elements that are not consistently priced within a narrow range. We determine BESP for a deliverable by considering multiple factors including product class, geography, average discount, and management's historical pricing practices. Amounts allocated to the delivered hardware and software elements are recognized at the time of sale provided the other conditions for revenue recognition have been met. Amounts allocated to the undelivered maintenance and other services elements are recognized as the services are provided or on a straight-line basis over the service period. In certain instances, customer acceptance is required prior to the passage of title and risk of loss of the delivered products. In such cases, revenue is not recognized until the customer acceptance is obtained. Delivery and acceptance generally occur in the same reporting period. In situations where our solutions contain software that is more than incidental, revenue related to the software and software-related elements is recognized in accordance with authoritative guidance on software revenue recognition. For the software and software-related elements of such transactions, revenue is allocated based on the relative fair value of each element, and fair value is determined by VSOE. If we cannot objectively determine the fair value of any undelivered element included in such multiple-element arrangements, we defer revenue until all elements are delivered and services have been performed, or until fair value can objectively be determined for any remaining undelivered elements. When the fair value of a delivered element has not been established, but fair value exists for the undelivered elements, we use the residual method to recognize revenue. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue. Revenue recognition for complex contractual arrangements, especially those with multiple elements, requires a significant level of judgment and is based upon a review of specific contracts, past experience, the selling price of undelivered elements when sold separately, creditworthiness of customers, international laws and other factors. Changes in judgments about these factors could impact the timing and amount of revenue recognized between periods. Revenue for hardware sales is recognized when the product is shipped to the customer and when obligations that affect the customer's final acceptance of the arrangement have been fulfilled. A majority of our hardware sales involves shipment directly from its suppliers to the end-user customers. In these transactions, we are the primary obligor as we are responsible for negotiating price both with the supplier and the customer, payment to the supplier, establishing payment terms and product returns with the customer, and we bear the credit risk if the customer does not pay for the goods. As the principal contact with the customer, we recognize revenue and cost of goods sold when we are notified by the supplier that the product has been shipped. In certain limited instances, as shipping terms dictate, revenue is recognized upon receipt at the point of destination or upon installation at the customer site. We offer proprietary software as well as remarketed software for sale to our customers. We offer our customers the right to license the software under a variety of models. Our customers can license our software under a perpetual model for an upfront fee or a subscription model. For subscription arrangements, we allow customers the right to use software, receive unspecified products as well as unspecified upgrades and enhancements and entitle the customer to receive hosting services for a specified term. The subscription revenue is generally recognized ratably over the term of the arrangement, typically three to five years. Revenue from subscription service arrangements is included in Support, maintenance and subscription services in the Consolidated Statements of Operations. A majority of our software sales do not require significant production, modification, or customization at the time of shipment (physically or electronically) to the customer. Substantially all of our software license arrangements do not include acceptance provisions. As such, revenue from both proprietary and remarketed software sales is typically recognized when the software has been shipped. For software delivered electronically, delivery is considered to have occurred when the customer either takes possession of the software via downloading or has been provided with the requisite codes that allow for immediate access to the software based on the U.S. Eastern time zone time stamp. We also offer proprietary and third-party services to our customers. Proprietary services generally include: consulting, installation, integration and training. Many of our software arrangements include consulting services sold separately under consulting engagement contracts. When the arrangements qualify as service transactions, consulting revenue from these arrangements are accounted for separately from the software revenue. The significant factors considered in determining whether the revenue should be accounted for separately include the nature of the services (i.e., consideration of whether the services are essential to the functionality of the software), degree of risk, availability of services from other vendors, timing of payments, and the impact of milestones or other customer acceptance criteria on revenue realization. If there is significant uncertainty about the project completion or receipt of payment for consulting services, the revenue is deferred until the uncertainty is resolved. For certain long-term proprietary service contracts with fixed or “not to exceed” fee arrangements, we estimate proportional performance using the hours incurred as a percentage of total estimated hours to complete the project consistent with the percentage-of-completion method of accounting. Accordingly, revenue for these contracts is recognized based on the proportion of the work performed on the contract. If there is no sufficient basis to measure progress toward completion, the revenue is recognized when final customer acceptance is received. Adjustments to contract price and estimated service hours are made periodically, and losses expected to be incurred on contracts in progress are charged to operations in the period such losses are determined. The aggregate of collections on uncompleted contracts in excess of related revenue is shown as a current liability. If an arrangement does not qualify for separate accounting of the software and consulting services, then the software revenue is recognized together with the consulting services using the percentage-of-completion or completed contract method of accounting. Contract accounting is applied to arrangements that include: milestones or customer-specific acceptance criteria that may affect the collection of revenue, significant modification or customization of the software, or provisions that tie the payment for the software to the performance of consulting services. We also offer proprietary and third-party support to our customers. Support generally includes: support and maintenance of software and hardware products and subscription services. Revenue relating to proprietary support services is recognized evenly over the coverage period of the underlying agreement within support, maintenance and subscription revenue. In instances where we offer third-party support contracts to our customer, and the supplier is determined to be the primary obligor in the transaction, we report revenue at the time of the sale, only in the amount of the “commission” (equal to the selling price less the cost of sale) received rather than reporting revenue in the full amount of the selling price with separate reporting of the cost of sale. |
Comprehensive (loss) income | Comprehensive (loss) income. Comprehensive (loss) income is the total of net (loss) income, as currently reported under GAAP, plus other comprehensive (loss) income. Other comprehensive (loss) income considers the effects of additional transactions and economic events that are not required to be recorded in determining net (loss) income, but rather are reported as a separate statement of comprehensive (loss) income. |
Fair value measurements | Fair value measurements . We measure the fair value of financial assets and liabilities on a recurring or non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. In determining fair value of financial assets and liabilities, we use various valuation techniques. Additional information regarding fair value measurements is provided in Note 14, Fair Value Measurements . |
Investments in corporate-owned life insurance policies and marketable securities | Investments in corporate-owned life insurance policies. Agilysys invests in corporate-owned life insurance policies, for which some are endorsement split-dollar life insurance arrangements. We entered into non-cancelable agreements with each of the former executives, whereby we must maintain the life insurance policy for a specified amount and split a portion of the policy benefits with their designated beneficiary. Our investment in these corporate-owned life insurance policies were recorded at their cash surrender value, which approximates fair value at the balance sheet date. During fiscal 2017, we received $2.2 million related to the death benefit due to us on redemption of two of these policies. In the consolidated balance sheets at the balance sheet date, the cash surrender value of $0.9 million for the remaining policies were held in “Other non-current assets,” and the present value of future proceeds owed to those executives' designated beneficiary of $0.1 million , which approximates fair value, were recorded within "Other non-current liabilities." Additional information regarding the investments in corporate-owned life insurance policies is provided in Note 10, Employee Benefit Plans . |
Income Taxes | Income Taxes. |
Capitalized Software Development Costs | Capitalized Software Development Costs. The capitalization of software development cost for external use begins when a product’s technological feasibility has been established. Capitalization ends when the resulting product is available for general market release. Amortization of the capitalized software is classified within products cost of goods sold in the Consolidated Statements of Operations. For each capitalized software product, the annual amortization is equal to the greater of: (i) the amount computed using the ratio that the software product’s current fiscal year gross revenue bears to the total current fiscal year and anticipated future gross revenues for that product or (ii) the amount computed based on straight-line method over the remaining estimated economic life of the product, which is a range between three and eight years. The amount by which unamortized software costs exceeds the net realizable value, if any, is recognized as a charge to income in the period it is determined. |
Correction of Error | . |
Reclassification | Reclassification - Certain prior year balances have been reclassified to conform to the current year presentation. Specifically, we reclassified approximately $1.1 million from software development costs to property and equipment on the Consolidated Balance Sheet as of March 31, 2016, which also impacted the Consolidated Statement of Cash Flows for the year ended March 31, 2016. |
Adopted and Recently Issued Accounting Pronouncements | Adopted and Recently Issued Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) . ASU 2018-02 addresses the effect of the change in the U.S. federal corporate tax rate on items within accumulated other comprehensive income or loss due to the enactment of the Tax Act on December 22, 2017. The new standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, and ASU No. 2017-04, Intangibles- Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. ASU No. 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. ASU No. 2017-04 eliminates Step 2 of the goodwill impairment test and requires a goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. While we are still assessing the impact of this standard, we do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective transition method, with the cumulative effect recognized as of the date of initial adoption. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance with the intent of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, including adoption in an interim period. We are currently reviewing this standard to assess the impact on our future consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326). This new standard changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, held-to-maturity debt securities, loans, and other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. The new standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. We are currently reviewing this standard to assess the impact on our future consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), which amends the accounting for stock-based compensation. The guidance requires excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than of stockholders’ equity and also allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. ASU No. 2016-09 is effective for annual reporting periods beginning after December 15, 2016. The Company adopted the ASU in the quarter ended June 30, 2017, which is the first quarter for our annual period beginning April 1, 2017. The following summarizes the effects of the adoption on the Company's consolidated financial statements: Income taxes - In the first quarter of 2018, we did not recognize the discrete benefit related to $4.4 million of tax deductions in excess of recorded windfall tax benefits associated with stock-based compensation due to the Company’s full valuation allowance on its U.S. federal net operating losses. Forfeitures - Prior to adoption, the Company recognized share-based compensation expense net of estimated forfeitures based on a rate management updated at least annually to reflect expected forfeitures over the vesting period. Upon adoption, the Company will no longer apply a forfeiture rate and instead will account for forfeitures as they occur. The Company applied the modified retrospective adoption approach and recorded a cumulative-effect adjustment of approximately $0.7 million to opening retained earnings. Prior periods have not been adjusted. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will require both types of leases to be recognized on the balance sheet. The new guidance is effective for all periods beginning after December 15, 2018 and we are currently evaluating the effects that the adoption of ASU No. 2016-02 will have, but anticipate that the new guidance will materially impact our consolidated financial statements given the significance of our leases. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As originally issued, this guidance was effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption was not permitted. In July 2015, the FASB deferred the effective date by one year, to interim and annual reporting periods beginning after December 15, 2017. Early adoption was permitted, but not before the original effective date of December 15, 2016. The standard allows entities to apply the standard retrospectively to each prior reporting period presented (“full retrospective adoption”) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application (“modified retrospective adoption”). We adopted ASU No. 2014-09 under the modified retrospective option effective April 1, 2018. We have completed several key accounting assessments related to the standard and are in the process of finalizing our remaining assessments and quantifying the required cumulative effect adjustments upon adoption. We continue to evaluate and implement changes to related processes, systems, and internal controls. Our evaluation has included determining whether the unit of account (performance obligations) will change as compared to current GAAP, as well as determining the standalone selling price of each of our performance obligations. We believe our performance obligations will remain substantially unchanged from current guidance. We currently allocate revenue to our software licenses under the residual method when VSOE exists for the remaining undelivered elements. The residual method allocates any future credits or significant discounts entirely to the software license. The adoption of ASU No. 2014-09 will result in future credits, significant discounts, and material rights under this guidance to be allocated to all performance obligations based upon their relative standalone selling prices. Under the new standard, additional software license revenue from the reallocation of such arrangement considerations will be recognized when control is transferred to the customer, which is generally upon delivery of the license. We have not been required to defer a significant amount of revenue due to insufficient VSOE and do not anticipate the updated standard’s requirement to establish or estimate a standalone selling price, rather than defer revenues in the absence of VSOE, will have a significant impact on our consolidated financial statements. We do not expect the new standard to materially impact the amount or timing of the majority of revenue recognized in our consolidated financial statements. Upon adoption of the new standard, we expect to begin deferring commissions earned by our internal sales force and subsequently amortizing these deferred commissions over the expected benefit period, which may be the estimated life of the customer relationship, if renewals are expected, and the renewal commission is not commensurate with the initial commission. We are still in the process of quantifying the impact of the new standard on these costs related to our customer contracts. For sales transactions that have been billed, but for which the recognition of revenue has been deferred and the related account receivable has not been collected, we currently do not recognize deferred revenue or the related accounts receivable on our consolidated balance sheet. Under the new standard, we will record accounts receivable and related contract liabilities for noncancelable contracts with customers when the right to consideration is unconditional, which will result in increases in accounts receivable and contract liabilities (currently presented as deferred revenue) on our consolidated balance sheet, compared to our current presentation. As of March 31, 2018, our accounts receivable and deferred revenue were offset by approximately $10.2 million for unpaid amounts. The right to consideration in exchange for goods or services that we have transferred to a customer when that right is conditional on something other than the passage of time will be reclassified from accounts receivable to contract assets under the new standard. There will be a corresponding tax effect in relation to the above noted impacts, which is still being evaluated. 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 Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring Charges [Abstract] | |
Reconciliation of the beginning and ending balances of the company's restructuring liabilities | Following is a reconciliation of the beginning and ending balances of the restructuring liability: Balance at Balance at March 31, March 31, (In thousands) 2017 Provision Payments 2018 Fiscal 2018 Restructuring Plan: Severance and employment costs $ — $ 1,639 $ (1,441 ) $ 198 Total restructuring costs — 1,639 (1,441 ) 198 Balance at Balance at March 31, March 31, (In thousands) 2016 Provision Payments 2017 Fiscal 2016 Restructuring Plan: Severance and employment costs $ 311 $ 200 $ (511 ) $ — Lease early terminations — 43 (43 ) — Total restructuring costs 311 243 (554 ) — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment at March 31, 2018 and 2017 is as follows: Year ended March 31, (In thousands) 2018 2017 Furniture and equipment $ 10,671 $ 7,955 Software 11,885 12,013 Leasehold improvements 6,819 6,317 Project expenditures not yet in use 4,187 2,217 33,562 28,502 Accumulated depreciation and amortization (16,050 ) (12,502 ) Property and equipment, net $ 17,512 $ 16,000 |
Schedule of capital leased assets | Total assets under capital leases at March 31, 2018 and 2017 are as follows: Year ended March 31, (In thousands) 2018 2017 Capital leases $ 679 $ 702 Less accumulated depreciation (509 ) (474 ) Assets under capital lease, net $ 170 $ 228 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The following table summarizes our intangible assets and software development costs at March 31, 2018 , and 2017 : 2018 2017 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 10,660 (10,398 ) 262 10,660 (10,398 ) 262 Accumulated impairment (262 ) N/A (262 ) (262 ) N/A (262 ) Trade names 230 (146 ) 84 230 (100 ) 130 Patented technology 80 (80 ) — 80 (80 ) — 24,183 (24,099 ) 84 24,183 (24,053 ) 130 Indefinite-lived 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 $ 32,583 $ (24,099 ) $ 8,484 $ 32,583 $ (24,053 ) $ 8,530 Software development costs $ 54,759 $ (20,372 ) $ 34,387 $ 47,989 $ (10,356 ) $ 37,633 Project expenditures not yet in use 12,185 N/A 12,185 10,757 N/A 10,757 Accumulated impairment (1,391 ) N/A (1,391 ) (1,391 ) N/A (1,391 ) Total software development costs $ 65,553 $ (20,372 ) $ 45,181 $ 57,355 $ (10,356 ) $ 46,999 |
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, 2019 $ 10,504 2020 9,765 2021 9,680 2022 2,568 2023 563 Total $ 33,080 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of long-term obligations | The following is a summary of long-term obligations at March 31, 2018 , and 2017 : (In thousands) 2018 2017 Capital lease obligations $ 177 $ 237 Less: current maturities (120 ) (121 ) Long -term capital lease obligations $ 57 $ 116 |
Schedule of future lease payments under capital leases | Minimum future lease payments under capital leases as of March 31, 2018 , are as follows: (In thousands) Amount Fiscal year ending March 31, 2019 $ 129 2020 27 2021 37 Total minimum lease payments $ 193 Less: amount representing interest (16 ) Present value of minimum lease payments $ 177 |
Supplemental Disclosures of C31
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Additional information related to the Consolidated Statements of Cash Flows is as follows: Year ended March 31, (In thousands) 2018 2017 2016 Cash payments for interest, net (88 ) (147 ) (64 ) Cash payments for income tax, net (227 ) 19 17 Acquisition of property and equipment under lease obligations 64 21 287 Accrued capital expenditures 83 411 59 Accrued capitalized software development costs 201 922 959 Leasehold improvements acquired under operating lease arrangement 95 35 997 |
Additional Balance Sheet Info32
Additional Balance Sheet Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional information related to the Company's Consolidated Balance Sheets | Additional information related to the Consolidated Balance Sheets is as follows: Year ended March 31, (In thousands) 2018 2017 Accrued liabilities: Salaries, wages, and related benefits $ 6,793 $ 6,473 Other taxes payable 769 750 Restructuring liabilities 198 — Severance liabilities — 11 Professional fees 288 221 Deferred rent 407 433 Other 786 443 Total $ 9,241 $ 8,331 Other non-current liabilities: Uncertain tax positions $ 1,519 $ 1,479 Deferred rent 2,313 2,444 Other 79 79 Total $ 3,911 $ 4,002 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income from continuing operations before income taxes | For the year ended March 31, loss before income taxes consisted of the following: (In thousands) 2018 2017 2016 Loss before income taxes United States $ (11,926 ) $ (10,967 ) $ (3,874 ) Foreign 325 (518 ) 115 Total loss before income taxes $ (11,601 ) $ (11,485 ) $ (3,759 ) |
Schedule of income tax (benefit) expense | For the year ended March 31, income tax expense (benefit) consisted of the following: (In thousands) 2018 2017 2016 Income tax expense (benefit) Current: Federal $ 66 $ 10 $ (2 ) State and local (446 ) 5 (52 ) Foreign 73 107 59 Deferred: Federal (2,985 ) 96 19 State and local 41 10 10 Foreign — 8 (28 ) Total income tax expense (benefit) $ (3,251 ) $ 236 $ 6 |
Schedule of effective income tax rate reconciliation | The following table presents the principal components of the difference between the effective tax rate for continuing operations to the U.S. federal statutory income tax rate for the years ended March 31: (In thousands) 2018 2017 2016 Income tax benefit at the US Federal statutory rate $ (3,654 ) $ (4,019 ) $ (1,317 ) Benefit for state taxes (642 ) (142 ) (54 ) Impact of foreign operations 38 158 (9 ) Indefinite life assets 335 102 26 Officer life insurance (5 ) (6 ) (197 ) Change in valuation allowance 3,328 4,007 1,555 Change in liability for unrecognized tax benefits 40 9 (29 ) Impact of Tax Act, net (3,287 ) — — Meals and entertainment 81 163 100 Equity 476 — — Other 39 (36 ) (69 ) Total income tax expense (benefit) $ (3,251 ) $ 236 $ 6 |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities as of March 31, are as follows: (In thousands) 2018 2017 Deferred tax assets: Accrued liabilities $ 2,720 $ 3,892 Allowance for doubtful accounts 143 126 Inventory valuation reserve 20 38 Federal losses and credit carryforwards 42,713 64,953 Foreign net operating losses 623 392 State losses and credit carryforwards 9,592 9,474 Deferred revenue 652 704 Goodwill and other intangible assets 286 1,332 Other 96 152 56,845 81,063 Less: valuation allowance (54,260 ) (80,013 ) Total 2,585 1,050 Deferred tax liabilities: Property and equipment & software amortization (412 ) (772 ) Indefinite-lived goodwill & intangible assets (2,277 ) (3,459 ) Total (2,689 ) (4,231 ) Total deferred tax liabilities $ (104 ) $ (3,181 ) |
Schedule of unrecognized tax benefits rollforward | We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31: (In thousands) 2018 2017 2016 Balance at April 1 $ 988 $ 1,617 $ 1,755 Reductions: Relating to tax settlements — — (85 ) Relating to positions taken during prior year (300 ) (604 ) — Relating to lapse in statute (1 ) (25 ) (53 ) Balance at March 31 $ 687 $ 988 $ 1,617 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments required under operating leases | The following is a schedule by year of future minimum rental payments required under operating leases, excluding the related operating expenses, which have initial or remaining non-cancelable lease terms in excess of a year as of March 31, 2018 : (In thousands) Amount Fiscal year ending March 31, 2019 $ 3,751 2020 3,468 2021 3,375 2022 2,506 2023 1,052 Thereafter 717 Total minimum lease payments $ 14,869 |
Loss per Share (Tables)
Loss per Share (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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 per share and the effect on earnings and the weighted average number of shares of dilutive potential common shares. Year ended March 31, (In thousands, except per share data) 2018 2017 2016 Numerator: Net loss $ (8,350 ) $ (11,721 ) $ (3,765 ) Denominator: Weighted average shares outstanding - basic and diluted 22,801 22,615 22,483 Loss per share - basic and diluted: Net loss per share-basic and diluted $ (0.37 ) $ (0.52 ) $ (0.17 ) Anti-dilutive stock options, SSARs, restricted shares and performance shares 756 1,004 1,682 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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 Consolidated Statements of Operations for fiscal 2018 , 2017 and 2016 : Year ended March 31, (In thousands) 2018 2017 2016 Product development $ 1,306 $ 1,545 $ 1,183 Sales and marketing 371 360 68 General and administrative 3,011 522 2,154 Total share-based compensation expense $ 4,688 $ 2,427 $ 3,405 |
Activity related stock options award | Year ended March 31, (In thousands) 2018 2017 2016 Product development $ 1,306 $ 1,545 $ 1,183 Sales and marketing 371 360 68 General and administrative 3,011 522 2,154 Total share-based compensation expense $ 4,688 $ 2,427 $ 3,405 |
Schedule additional information related to stock option activity | Year ended March 31, (In thousands) 2018 2017 2016 Product development $ 1,306 $ 1,545 $ 1,183 Sales and marketing 371 360 68 General and administrative 3,011 522 2,154 Total share-based compensation expense $ 4,688 $ 2,427 $ 3,405 |
Schedule of principal assumptions utilized in valuing SSARs | The following table summarizes the principal assumptions utilized in valuing SSARs granted in fiscal 2018 , 2017 and 2016 : 2018 2017 2016 Risk-free interest rate 1.74%-1.94% 0.94%-2.14% 1.53%-1.61% Expected life (in years) 5 5 5 Expected volatility 32.42% - 32.84% 35.25%-40.22% 46.34%-47.25% Weighted average grant date fair value $3.36 $3.69 $3.95 |
Activity related SSARs award | The following table presents additional information related to SSARs activity during fiscal 2018 , 2017 and 2016 : (In thousands) 2018 2017 2016 Compensation expense $ 1,869 $ 621 $ 1,200 Total intrinsic value of SSARs exercised $ 88 $ 360 $ 32 Total fair value of SSARs vesting $ 1,325 $ 497 $ 1,069 The following table summarizes the activity during fiscal 2018 for SSARs awarded under the 2016 and 2011 Plans: (In thousands, except share and per share data) Number of Rights Weighted- Average Exercise Price Remaining Contractual Term Aggregate Intrinsic Value (per right) (in years) Outstanding at April 1, 2017 1,094,978 $ 10.44 Granted 204,213 10.56 Exercised (41,691 ) 9.14 Forfeited (99,661 ) 10.02 Cancelled/expired (54,679 ) 9.56 Outstanding at March 31, 2018 1,103,160 $ 10.60 5.2 $ 1,570 Exercisable at March 31, 2018 604,596 $ 10.46 4.6 $ 996 Vested and expected to vest at March 31, 2018 1,103,160 $ 10.60 5.2 $ 1,570 |
Activity related to restricted shares awarded by the Company | The following table presents additional information related to restricted stock activity during fiscal years 2018 , 2017 , and 2016 : (In thousands) 2018 2017 2016 Compensation expense $ 2,594 $ 1,770 $ 2,167 Total fair value of restricted share vesting $ 4,315 $ 1,182 $ 1,638 The following table summarizes the activity during the twelve months ended March 31, 2018 for restricted shares awarded under the 2016 and 2011 Plans: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2017 490,355 $ 10.72 Granted 267,442 11.11 Vested (369,683 ) 11.02 Forfeited (144,760 ) 10.58 Outstanding at March 31, 2018 243,354 $ 10.78 |
Performance shares awarded by the Company | The following table summarizes the activity during fiscal 2018 for performance shares awarded under the 2011 Plan: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2017 — $ — Granted 91,463 9.84 Vested — $ — Outstanding at March 31, 2018 91,463 $ 9.84 |
Schedule of additional information related to performance share activity | The following table presents additional information related to performance share activity during the fiscal 2018 , 2017 , and 2016 : (In thousands) 2018 2017 2016 Compensation expense $ 225 $ 36 $ 39 Total fair value of performance share vesting $ — $ 83 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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 value as of Active markets for identical assets or liabilities Quoted prices in similar instruments and observable inputs Active markets for unobservable inputs (In thousands) March 31, 2018 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — non-current $ 853 — — $ 853 Fair value measurement used Recorded value as of Active markets for identical assets or liabilities Quoted prices in similar instruments and observable inputs Active markets for unobservable inputs (In thousands) March 31, 2017 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — non-current $ 809 — — $ 809 |
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 corporate-owned life insurance Level 3 asset for the fiscal years ended March 31, 2018 and 2017 : Level 3 assets and liabilities (In thousands) 2018 2017 Corporate-owned life insurance: Balance on April 1 $ 809 $ 3,122 Realized gains 17 18 Unrealized (loss) gain relating to instruments held at reporting date 27 (123 ) Purchases, sales, issuances and settlements, net — (2,208 ) Balance on March 31 $ 853 $ 809 |
Summary of changes in the fair value of the Level 3 assets and liabilities |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Year ended March 31, 2018 First Second Third Fourth Year (In thousands except per share data) Quarter Quarter Quarter Quarter Net revenue $ 33,865 $ 30,129 $ 31,310 $ 32,056 $ 127,360 Gross profit 16,670 15,370 15,628 16,749 64,417 Restructuring, severance and other charges 37 826 378 557 1,798 Legal settlements — — 150 — 150 Net loss $ (2,958 ) $ (3,248 ) $ (1,934 ) $ (210 ) $ (8,350 ) Per share data-basic and diluted Net loss $ (0.13 ) $ (0.14 ) $ (0.08 ) $ (0.01 ) $ (0.37 ) Year ended March 31, 2017 First Second Third Fourth Year (In thousands except per share data) Quarter Quarter Quarter Quarter Net revenue $ 30,953 $ 32,676 $ 33,448 $ 30,602 $ 127,678 Gross profit 16,191 15,879 16,241 15,475 63,785 Restructuring, severance and other charges 89 — 1,395 77 1,561 Legal settlements — 85 — — 85 Net loss $ (2,297 ) $ (2,400 ) $ (1,737 ) $ (5,287 ) $ (11,721 ) Net loss Per share data-basic and diluted $ (0.10 ) $ (0.11 ) $ (0.08 ) $ (0.23 ) $ (0.52 ) |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Textual) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2018USD ($)policy | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Apr. 01, 2017USD ($) | |
Significant Accounting Policies [Line Items] | ||||||||
Support Maintenance and Subscription Revenue | $ 69,068,000 | $ 63,308,000 | $ 60,104,000 | |||||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 4,400,000 | |||||||
Capital lease assets as a percentage of total assets | 1.00% | |||||||
Goodwill | $ 19,622,000 | $ 19,622,000 | ||||||
Revenues from international operations | 8.00% | 6.00% | 4.00% | |||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | |||||
Number of corporate owned life insurance policies redeemed | 2 | 2 | ||||||
Proceeds from corporate-owned life insurance policies | $ 2,200,000 | |||||||
Aggregate cash surrender value of underlying life insurance, net of policy loans | 900,000 | |||||||
Present value of future proceeds to be received under corporate life insurance policies, liability | 100,000 | |||||||
Sales revenue, services, net | (24,593,000) | $ (26,031,000) | (18,817,000) | |||||
Advertising and promotion expense | 2,700,000 | 2,600,000 | $ 1,700,000 | |||||
Software development costs, net | 45,181,000 | 46,999,000 | ||||||
Property and equipment, net | $ 17,512,000 | 16,000,000 | ||||||
Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Revenue, remaining performance obligation, expected timing of satisfaction | 3 years | |||||||
Finite-lived intangible asset, useful life | 2 years | |||||||
Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Revenue, remaining performance obligation, expected timing of satisfaction | 5 years | |||||||
Finite-lived intangible asset, useful life | 8 years | |||||||
Building and building improvements [Member] | Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 7 years | |||||||
Building and building improvements [Member] | Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 30 years | |||||||
Furniture [Member] | Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 7 years | |||||||
Furniture [Member] | Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 10 years | |||||||
Equipment [Member] | Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 3 years | |||||||
Equipment [Member] | Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 10 years | |||||||
Software and Software Development Costs [Member] | Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 3 years | |||||||
Software and Software Development Costs [Member] | Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 10 years | |||||||
Customer relationships [Member] | Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 2 years | |||||||
Customer relationships [Member] | Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 7 years | |||||||
Non-competition agreements [Member] | Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 2 years | |||||||
Non-competition agreements [Member] | Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 8 years | |||||||
Developed technology [Member] | Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 3 years | |||||||
Developed technology [Member] | Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 8 years | |||||||
Supplier relationships [Member] | Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 2 years | |||||||
Supplier relationships [Member] | Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible asset, useful life | 8 years | |||||||
Restatement Adjustment [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Support Maintenance and Subscription Revenue | $ 1,100,000 | |||||||
Sales revenue, services, net | $ 100,000 | $ 100,000 | ||||||
Property and equipment, net | $ 1,100,000 | |||||||
Retained Earnings [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (741,000) | |||||||
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 700,000 |
Acquisitions Acquisitions (Deta
Acquisitions Acquisitions (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||
Goodwill | $ 19,622 | $ 19,622 |
Acquisitions Acquisitions (Text
Acquisitions Acquisitions (Textual) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||
Goodwill | $ 19,622 | $ 19,622 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Textuals) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Contingent consideration adjustment | $ 0 | $ 0 | $ 93 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Liability) (Details) - USD ($) | 12 Months Ended | 24 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 0 | $ 311,000 | |
Restructuring Charges | (243,000) | ||
Payments for restructuring, severance and other charges | (554,000) | ||
Ending Balance | 0 | 0 | $ 0 |
2016 Restructuring Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring Charges | (1,639,000) | (500,000) | |
Payments for restructuring, severance and other charges | (1,441,000) | ||
Ending Balance | 198,000 | 0 | 0 |
2016 Restructuring Plan [Member] | Severance and employment costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 311,000 | |
Restructuring Charges | (1,639,000) | (200,000) | |
Payments for restructuring, severance and other charges | (1,441,000) | (511,000) | |
Ending Balance | $ 198,000 | 0 | $ 0 |
2015 Restructuring Plan [Member] | Facilities costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring Charges | 43,000 | ||
Payments for restructuring, severance and other charges | $ (43,000) |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) | 12 Months Ended | 24 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 243,000 | |||
Restructuring Reserve | $ 0 | 0 | $ 0 | $ 311,000 |
Twenty Eighteen Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,600,000 | |||
Restructuring Reserve | 200,000 | |||
2016 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,639,000 | 500,000 | ||
Restructuring Reserve | 198,000 | 0 | 0 | |
2016 Restructuring Plan [Member] | Severance and Employment Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,639,000 | 200,000 | ||
Restructuring Reserve | $ 198,000 | 0 | $ 0 | 311,000 |
2015 Restructuring Plan [Member] | Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ (43,000) | |||
Restructuring Reserve | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 33,562 | $ 28,502 |
Accumulated depreciation and amortization | (16,050) | (12,502) |
Property and equipment, net | 17,512 | 16,000 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,671 | 7,955 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,885 | 12,013 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,819 | 6,317 |
Project expenditures not yet in use [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,187 | $ 2,217 |
Property and Equipment, Net -46
Property and Equipment, Net - Schedule of Capital Leased Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Capital leases | $ 679 | $ 702 |
Less accumulated depreciation | (509) | (474) |
Assets under capital lease, net | $ 170 | $ 228 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, including accelerated depreciation related to restructuring reserve | $ 2.6 | $ 2.4 | $ 2.2 |
Purchased for Internal-Use Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Amortization of capitalized software | $ 1.8 | $ 1.4 | $ 1.2 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Amortized intangible assets: | ||
Indefinite-Lived Intangible Assets, Accumulated Impairment | $ (570) | $ (570) |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 8,400 | 8,400 |
Intangible Assets, Gross (Excluding Goodwill) | 32,583 | 32,583 |
Finite Lived Software Development Costs Accumulated Impairment | 1,391 | 1,391 |
Gross carrying amount | (24,183) | (24,183) |
Finite Lived Software Development Costs Accumulated Amortization | (20,372) | (10,356) |
Finite Lived Software Development Costs Net | 45,181 | 46,999 |
Finite Lived Software Development Costs Gross | 65,553 | 57,355 |
Accumulated amortization | (24,099) | (24,053) |
Net carrying amount | 84 | 130 |
Intangible assets, net | 8,484 | 8,530 |
Trade Names [Member] | ||
Amortized intangible assets: | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Excluding Accumulated Impairment | 9,200 | 9,200 |
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 |
Non-competition 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 |
Developed technology [Member] | ||
Amortized intangible assets: | ||
Gross carrying amount, excluding accumulated impairment | 10,660 | 10,660 |
Accumulated amortization, excluding accumulated impairment | (10,398) | (10,398) |
Net carrying amount, excluding accumulated impairment | 262 | 262 |
Trade Names [Member] | ||
Amortized intangible assets: | ||
Accumulated amortization, excluding accumulated impairment | (146) | (100) |
Finite-Lived Trade Names, Gross | 230 | 230 |
Indefinite-Lived Intangible Assets, Accumulated Impairment | (262) | (262) |
Net carrying amount | 84 | 130 |
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 |
Unclassified Indefinite-lived Intangible Assets [Member] | ||
Amortized intangible assets: | ||
Gross carrying amount | (230) | (230) |
Software Development Costs [Member] | ||
Unamortized intangible assets: | ||
Finite Lived Software Development Costs Accumulated Amortization Excluding Accumulated Impairment | (20,372) | (10,356) |
Finite Lived Software Development Costs, Net Excluding, Accumulated Impairment | 34,387 | 37,633 |
Finite Lived Software Development Costs Gross Excluding Accumulated Impairment | 54,759 | 47,989 |
Project Expenditures Not Yet In Use [Member] | ||
Unamortized intangible assets: | ||
Finite Lived Software Development Costs, Net Excluding, Accumulated Impairment | 12,185 | 10,757 |
Finite Lived Software Development Costs Gross Excluding Accumulated Impairment | $ 12,185 | $ 10,757 |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,015 | $ 10,504 |
2,016 | 9,765 |
2,017 | 9,680 |
2,018 | 2,568 |
2,019 | 563 |
Total | $ 33,080 |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Line Items] | ||||
Capitalized Computer Software, Impairments | $ 300,000 | |||
Amortization of intangible assets, excluding amortization of internal use software | $ 1,879,000 | $ 1,392,000 | $ 1,243,000 | |
Amortization of developed technology | 1,879,000 | 1,392,000 | 1,243,000 | |
Capitalized Computer Software, Additions | 8,200,000 | 11,900,000 | 13,300,000 | |
Developed technology [Member] | ||||
Goodwill [Line Items] | ||||
Amortization of developed technology | 10,000,000 | $ 8,000,000 | $ 1,000,000 | |
Other Intangible Assets [Member] | ||||
Goodwill [Line Items] | ||||
Amortization of intangible assets, excluding amortization of internal use software | $ 46,000 |
Financing Arrangements - Summar
Financing Arrangements - Summary of Long-Term Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Debt Disclosure [Abstract] | ||
Capital lease obligations | $ 177 | $ 237 |
Less: current maturities | (120) | (121) |
Long -term capital lease obligations | $ 57 | $ 116 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Future Lease Payments under Capital Leases (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 129 |
2,019 | 27 |
2,020 | 37 |
Total minimum lease payments | 193 |
Less: amount representing interest | (16) |
Present value of minimum lease payments | $ 177 |
Financing Arrangements (Details
Financing Arrangements (Details Textual) $ in Thousands | Mar. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | |
Capital Leased Assets, Number of Units | 700 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Property, Plant, and Equipment Other, Accumulated Depreciation | $ 500 |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Interest rate on capital lease | 4.50% |
Supplemental Disclosures of C54
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash payments for interest, net | $ (88,000) | $ (147,000) | $ (64,000) |
Cash payments for income tax, net | (227,000) | 19,000 | 17,000 |
Acquisition of property and equipment under lease obligations | 64,000 | 21,000 | 287,000 |
Accrued capital expenditures | 83,000 | 411,000 | 59,000 |
Accrued capitalized software development costs | $ 201 | $ 922,000 | $ 959,000 |
Leasehold improvements acquired under operating lease arrangement | 95 | 35 | 997 |
Additional Balance Sheet Info55
Additional Balance Sheet Information (Details) - USD ($) $ in Thousands | May 26, 2015 | Mar. 31, 2018 | Mar. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | |||
Accounts Receivable, Net, Current | $ 16,389 | $ 15,598 | |
Accrued liabilities: | |||
Salaries, wages, and related benefits | 6,793 | 6,473 | |
Other taxes payable | 769 | 750 | |
Accrued legal settlements | 94 | 75 | |
Restructuring liabilities | 198 | 0 | |
Severance liabilities | 0 | 11 | |
Professional fees | 288 | 221 | |
Deferred rent | 407 | 433 | |
Other | 786 | 443 | |
Total | 9,241 | 8,331 | |
Other non-current liabilities: | |||
Uncertain tax positions | 1,519 | 1,479 | |
Deferred rent | 2,313 | 2,444 | |
Other | 79 | 79 | |
Total | 3,911 | 4,002 | |
Allowance for Doubtful Accounts Receivable | 900 | $ 500 | |
Bankruptcy Claims, Number Claims Filed | $ 700 | ||
Bankruptcy Claims, Amount of Claims Outstanding | $ 700 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Loss before income taxes | |||
United States | $ (11,926) | $ (10,967) | $ (3,874) |
Foreign | 325 | (518) | 115 |
Loss before taxes | $ (11,601) | $ (11,485) | $ (3,759) |
Income Taxes - Schedule of In57
Income Taxes - Schedule of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Current: | |||
Federal | $ 66 | $ 10 | $ (2) |
State and local | (446) | 5 | (52) |
Foreign | 73 | 107 | 59 |
Deferred: | |||
Federal | (2,985) | 96 | 19 |
State and local | 41 | 10 | 10 |
Foreign | 0 | 8 | (28) |
Total income tax expense (benefit) | $ (3,251) | $ 236 | $ 6 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income tax benefit at the US Federal statutory rate | $ (3,654) | $ (4,019) | $ (1,317) |
Benefit for state taxes | (642) | (142) | (54) |
Impact of foreign operations | 38 | 158 | (9) |
Indefinite life assets | 335 | 102 | 26 |
Officer life insurance | (5) | (6) | (197) |
Change in valuation allowance | 3,328 | 4,007 | 1,555 |
Change in liability for unrecognized tax benefits | 40 | 9 | (29) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | (3,287) | 0 | 0 |
Meals and entertainment | 81 | 163 | 100 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 476 | 0 | 0 |
Other | 39 | (36) | (69) |
Total income tax expense (benefit) | $ (3,251) | $ 236 | $ 6 |
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Deferred tax assets: | ||
Accrued liabilities | $ 2,720 | $ 3,892 |
Allowance for doubtful accounts | 143 | 126 |
Inventory valuation reserve | 20 | 38 |
Federal losses and credit carryforwards | 42,713 | 64,953 |
Foreign net operating losses | 623 | 392 |
State losses and credit carryforwards | 9,592 | 9,474 |
Deferred revenue | 652 | 704 |
Goodwill and other intangible assets | 286 | 1,332 |
Other | 96 | 152 |
Deferred tax assets, gross | 56,845 | 81,063 |
Deferred Tax Assets, Valuation Allowance, Current | 54,260 | |
Less: valuation allowance | 54,300 | 80,013 |
Total | 2,585 | 1,050 |
Deferred tax liabilities: | ||
Property and equipment & software amortization | (412) | (772) |
Indefinite-lived goodwill & intangible assets | (2,277) | (3,459) |
Deferred Tax Liabilities, Other | (104) | (3,181) |
Total | (2,689) | (4,231) |
Undistributed Earnings of Foreign Subsidiaries | $ 1,700 | $ 1,300 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $ 988 | $ 1,617 | $ 1,755 |
Reductions: | |||
Relating to tax settlements | 0 | 0 | (85) |
Relating to positions taken during prior year | (300) | (604) | 0 |
Relating to lapse in statute | (1) | (25) | (53) |
Unrecognized tax benefits, end of period | $ 687 | $ 988 | $ 1,617 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Operating Loss Carryforwards [Line Items] | |||||
Tax Cuts And Jobs Act Of 2017, Income Tax Expense (Benefit) | $ (3,300) | ||||
Valuation allowance | $ 54,300 | $ 80,013 | |||
Undistributed earnings of foreign subsidiaries | 1,700 | 1,300 | |||
Income Tax Expense (Benefit) | (3,251) | 236 | $ 6 | ||
Unrecognized tax benefits that would impact effective tax rate | 700 | ||||
Interest and penalty expense (benefit), (less than $.1 million for year ended March 31, 2012) | 100 | 100 | $ 100 | ||
Interest and penalties accrued | 800 | $ 800 | |||
Effective Income Tax Rate Reconciliation, Tax Settlement, State and Local, Amount | $ 400 | ||||
Federal and State Deferred Tax Assets [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 53,700 | ||||
Deferred Tax Assets in Hong Kong [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 600 | ||||
INDIA | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 100 | ||||
Federal [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 198,700 | ||||
Operating loss carryforwards, excess income tax benefit related to share-based compensation | 4,400 | ||||
Foreign Tax Authority [Member] | Hong Kong [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 0 | ||||
Foreign Tax Authority [Member] | MALAYSIA | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 0 | ||||
Foreign Tax Authority [Member] | SINGAPORE | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 0 | ||||
Foreign Tax Authority [Member] | PHILIPPINES | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 100 | ||||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 134,700 | ||||
Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Significant change in unrecognized tax benefits reasonably possible, upper end | 0 | ||||
Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Significant change in unrecognized tax benefits reasonably possible, upper end | $ 300 |
Employee Benefit Plans - 401 (k
Employee Benefit Plans - 401 (k) Plan (Details Textual) - 401(k) Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, matching contribution cost recognized | $ 1.7 | $ 1.4 | $ 1.5 |
100% on first 1% [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contributions, percent of one dollar match for employee percentage match | 100.00% | ||
50% up to next 5% [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contributions, percent of one dollar match for employee percentage match | 50.00% | ||
Defined contribution plan, employer matching contributions, percent of employee's pre-tax contributions | 50.00% |
Employee Benefit Plans - Endors
Employee Benefit Plans - Endorsement Split-Dollar Life Insurance (Details Textual) | 12 Months Ended | ||
Mar. 31, 2018USD ($)policy | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Proceeds from corporate-owned life insurance policies | $ 2,200,000 | ||
Number of corporate owned life insurance policies redeemed | 2 | 2 | |
Present value of future proceeds to be received under corporate life insurance policies, liability | $ 100,000 | ||
Cash Surrender Value of Life Insurance, Increase in Face Amount | $ 500,000 | ||
Aggregate cash surrender value of underlying life insurance, net of policy loans | 900,000 | ||
Corporate-owned life insurance policies, gain (loss) recognized and classified within Other (income) expenses, net on Consolidated Statements of Operations | $ 17,000 | 0 | $ 600,000 |
Other Current Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Aggregate cash surrender value of underlying life insurance, net of policy loans | $ 800,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Payments Required Under Operating Leases (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,015 | $ 3,751 |
2,016 | 3,468 |
2,017 | 3,375 |
2,018 | 2,506 |
2,019 | 1,052 |
Thereafter | 717 |
Total minimum lease payments | $ 14,869 |
Commitments and Contingencies65
Commitments and Contingencies (Details Textual) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018USD ($)patent | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, renewal option period (for periods up to 10 years) | 10 years | ||
Operating leases, rental expense | $ | $ 3.2 | $ 2.8 | $ 2.7 |
Loss contingency, patents allegedly infringed, number | patent | 3 |
Loss per Share - Amounts Used i
Loss per Share - Amounts Used in Computing (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | |||||||||||
Net loss | $ (210) | $ (1,934) | $ (3,248) | $ (2,958) | $ (5,287) | $ (1,737) | $ (2,400) | $ (2,297) | $ (8,350) | $ (11,721) | $ (3,765) |
Denominator: | |||||||||||
Weighted average shares outstanding - basic and diluted (in shares) | 22,801,000 | 22,615,000 | 22,483,000 | ||||||||
Loss per share - basic and diluted: | |||||||||||
Net loss per share (in dollars per share) | $ (0.01) | $ (0.08) | $ (0.14) | $ (0.13) | $ (0.23) | $ (0.08) | $ (0.11) | $ (0.10) | $ (0.37) | $ (0.52) | $ (0.17) |
Anti-dilutive stock options, SSARs, restricted shares and performance shares | 756,000 | 1,004,000 | 1,682,000 | ||||||||
Outstanding weighted average basic shares, number of excluded restricted shares and performance shares | 334,817 | 490,355 | 343,585 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 4,688 | $ 2,427 | $ 3,405 |
Product development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 1,306 | 1,545 | 1,183 |
Selling and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 371 | 360 | 68 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 3,011 | $ 522 | $ 2,154 |
Share-based Compensation - Prin
Share-based Compensation - Principal Assumptions Utilized in Valuing SSARs Granted (Details) - Stock Settled Stock Appreciation Rights [Member] - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | 5 years | 5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate, minimum | 1.74% | 0.94% | 1.53% |
Risk-free interest rate, maximum | 1.94% | 2.14% | 1.61% |
Expected volatility, minimum | 32.42% | 35.25% | 46.34% |
Expected volatility, maximum | 32.84% | 40.22% | |
Weighted average grant date fair value (in dollars per share) | $ 3.36 | $ 3.69 | $ 3.95 |
Share-based Compensation - SSAR
Share-based Compensation - SSARs Rollforward (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | shares | (54,679) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 9.56 |
Stock Settled Stock Appreciation Rights (SSARS) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Rights, Outstanding at beginning of period | shares | 1,094,978 |
Number of Rights, Granted | shares | 204,213 |
Number of Rights, Exercised | shares | (41,691) |
Number of Rights, Forfeited | shares | (99,661) |
Number of Rights, Outstanding at end of period | shares | 1,103,160 |
Number of Rights, Exercisable at end of period | shares | 604,596 |
Weighted Average Exercise Price, Outstanding at beginning of period | $ / shares | $ 10.44 |
Weighted Average Exercise Price, Granted | $ / shares | 10.56 |
Weighted Average Exercise Price, Exercised | $ / shares | 9.14 |
Weighted Average Exercise Price, Forfeited | $ / shares | 10.02 |
Weighted Average Exercise Price, Outstanding at end of period | $ / shares | 10.60 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 10.46 |
Remaining Contractual Term, Outstanding | 5 years 2 months 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Vested and Expected to Vest, Outstanding, Remaining Contractual Term | 4 years 7 months 6 days |
Aggregate Intrinsic Value, Outstanding at end of period | $ | $ 1,570 |
Aggregate Intrinsic Value, Exercisable at end of period | $ | $ 996 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 1,103,160 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares | $ 10.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 5 years 2 months 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 1,570 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information Related to SSARs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 4,688 | $ 2,427 | $ 3,405 |
Stock Settled Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 1,869 | 621 | 1,200 |
Total intrinsic value of SSARs exercised | 88 | 360 | 32 |
Total fair value of SSARs vesting | $ 1,325 | $ 497 | $ 1,069 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Shares Rollforward (Details) - Restricted Stock [Member] | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Activity Related to Restricted Shares Awarded by the Company | |
Number of Shares, Outstanding at beginning of period | shares | 490,355 |
Number of Shares, Granted | shares | 267,442 |
Number of Shares, Vested | shares | (369,683) |
Number of Shares, Forefeited | shares | (144,760) |
Number of Shares, Outstanding at end of period | shares | 243,354 |
Weighted Average Grant-Date Fair Value, Outstanding at beginning of period | $ / shares | $ 10.72 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 11.11 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 11.02 |
Weighted Average Grant Date Fair Value, Forefeited | $ / shares | 10.58 |
Weighted Average Grant-Date Fair Value, Outstanding at end of period | $ / shares | $ 10.78 |
Share-based Compensation - Ad72
Share-based Compensation - Additional Information Related to Restricted Shares (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 4,688 | $ 2,427 | $ 3,405 |
Restricted Shares and Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued from treasury shares, net of shares withheld to cover applicable exercise price of award and to cover employee's minimum applicable income taxes (in shares) | 264,079 | ||
Shares Paid for Tax Withholding for Share Based Compensation | 105,604 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 2,594 | 1,770 | 2,167 |
Total fair value of restricted shares vesting | $ 4,315 | $ 1,182 | $ 1,638 |
Share-based Compensation - Perf
Share-based Compensation - Performance Shares Rollforward (Details) - Performance Shares [Member] | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Performance shares awarded by the Company | |
Number of Shares, Outstanding at beginning of period | shares | 0 |
Number of Shares, Granted | shares | 91,463 |
Number of Shares, Outstanding at end of period | shares | 91,463 |
Weighted Average Grant-Date Fair Value, Outstanding at beginning of period | $ / shares | $ 0 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 9.84 |
Weighted Average Grant-Date Fair Value, Outstanding at end of period | $ / shares | $ 9.84 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 0 |
Share-based Compensation - Ad74
Share-based Compensation - Additional Information Related to Performance Shares (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 4,688 | $ 2,427 | $ 3,405 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred Compensation Liability, Current and Noncurrent | 225 | ||
Compensation expense | 225 | 36 | 39 |
Total fair value of performance share vesting | $ 0 | $ 83 | $ 0 |
Share-based Compensation (Detai
Share-based Compensation (Details Textual) $ in Millions | 12 Months Ended |
Mar. 31, 2018USD ($)shares | |
Stock Based Compensation (Textual) [Abstract] | |
Maximum aggregate number of shares that may be granted to an individual (in shares) | 1,250,000 |
Share-based compensation arrangement, expected term | 7 years |
Stock Settled Stock Appreciation Rights (SSARS) [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Shares issued from treasury shares, net of shares withheld to cover applicable exercise price of award and to cover employee's minimum applicable income taxes (in shares) | 5,456 |
Shares withheld to cover the employee's minimum applicable income taxes (in shares) | 2,328 |
Restricted Shares and Restricted Share Units [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Shares issued from treasury shares, net of shares withheld to cover applicable exercise price of award and to cover employee's minimum applicable income taxes (in shares) | 264,079 |
Shares withheld to cover the employee's minimum applicable income taxes (in shares) | 105,604 |
Restricted Stock [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Unrecognized stock based compensation expense related to non-vested shares | $ | $ 1.6 |
Weighted-average vesting period | 1 year 9 months 24 days |
2016 Stock Incentive Plan [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Shares authorized (in shares) | 2,000,000 |
2016 Stock Incentive Plan [Member] | Stock Settled Stock Appreciation Rights (SSARS) [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Maximum number of shares that may be granted to an individual in a calendar year (in shares) | 800,000 |
2016 Stock Incentive Plan [Member] | Restricted Shares and Restricted Share Units [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Maximum number of shares that may be granted to an individual in a calendar year (in shares) | 400,000 |
2011 Stock Incentive Plan [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Shares authorized (in shares) | 957,575 |
Minimum [Member] | Restricted Stock [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Share-based compensation arrangement, restriction period | 3 years |
Minimum [Member] | Performance Shares [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Share-based compensation arrangement, restriction period | 1 year |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Liabilities: | ||
Contingent consideration — current | $ 407 | $ 433 |
Active markets for identical assets or liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Corporate-owned life insurance — non-current | 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 | |
Active markets for unobservable inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Corporate-owned life insurance — non-current | 853 | |
Other Noncurrent Assets [Member] | Active markets for identical assets or liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Corporate-owned life insurance — non-current | 0 | |
Other Noncurrent Assets [Member] | Quoted prices in similar instruments and observable inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Corporate-owned life insurance — non-current | 0 | |
Other Noncurrent Assets [Member] | Active markets for unobservable inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Corporate-owned life insurance — non-current | 809 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Corporate-owned life insurance — non-current | $ 853 | |
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Corporate-owned life insurance — non-current | $ 809 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Fair Value of Level 3 Assets and Liabilities on a Recurring Basis (Details) - Corporate-owned life insurance [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 809 | $ 3,122 |
Realized gains / Activity, payments and other charges | 17 | 18 |
Unrealized (loss) gain relating to instruments held at reporting date | 27 | (123) |
Purchases, sales, issuances and settlements, net | 0 | (2,208) |
Balance at end of period | $ 853 | $ 809 |
Quarterly Results (Unaudited)78
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 32,056 | $ 31,310 | $ 30,129 | $ 33,865 | $ 30,602 | $ 33,448 | $ 32,676 | $ 30,953 | $ 127,360 | $ 127,678 | $ 120,366 |
Gross profit | 16,749 | 15,628 | 15,370 | 16,670 | 15,475 | 16,241 | 15,879 | 16,191 | 64,417 | 63,785 | 68,106 |
Asset impairments and related charges | 77 | 1,395 | 0 | 89 | 1,561 | ||||||
Net loss | (210) | (1,934) | (3,248) | (2,958) | (5,287) | (1,737) | (2,400) | (2,297) | (8,350) | (11,721) | (3,765) |
Legal settlements | $ 0 | $ 150 | $ 0 | $ 0 | $ 0 | $ 0 | $ 85 | $ 0 | $ 150 | $ 85 | $ 268 |
Net loss Per share data-basic and diluted | $ (0.01) | $ (0.08) | $ (0.14) | $ (0.13) | $ (0.23) | $ (0.08) | $ (0.11) | $ (0.10) | $ (0.37) | $ (0.52) | $ (0.17) |
Related Party Transactions (Det
Related Party Transactions (Details) - Consulting Arrangements [Member] $ in Millions | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Amounts of Transaction | $ 0.1 |
Chief Executive Officer [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 2.00% |
Schedule II - Valuation and Q80
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 509 | $ 617 | $ 888 |
Charged to costs and expenses | 1,063 | 648 | 942 |
Deductions | (672) | (756) | (1,213) |
Balance at end of year | 900 | 509 | 617 |
Deferred Tax Valuation Allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 80,013 | 77,846 | 76,420 |
Charged to costs and expenses | (25,753) | 2,167 | 1,426 |
Deductions | 0 | 0 | 0 |
Balance at end of year | $ 54,260 | $ 80,013 | $ 77,846 |
Uncategorized Items - agys-2018
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 741,000 |