Agilysys (AGYS) 10-Q 26 Oct 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2023	Oct. 20, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Registrant Name	AGILYSYS, INC.
Entity Central Index Key	0000078749
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		25,373,280
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Trading Symbol	AGYS
Title of 12(b) Security	Common Stock, without par value
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	000-5734
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	34-0907152
Entity Address, Address Line One	3655 Brookside Parkway
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Alpharetta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30022
City Area Code	770
Local Phone Number	810-7800

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 107,413,000	$ 112,842,000
Accounts receivable, net of allowance for expected credit lossesof $723 and $610, respectively	27,762,000	22,378,000
Contract assets	3,278,000	2,242,000
Inventories	7,485,000	9,774,000
Prepaid expenses and other current assets	7,473,000	7,422,000
Total current assets	153,411,000	154,658,000
Property and equipment, net	17,477,000	14,576,000
Operating lease right-of-use assets	23,097,000	12,708,000
Goodwill	32,755,000	32,638,000
Intangible assets, net	17,505,000	18,140,000
Deferred income taxes, non-current	3,153,000	2,790,000
Other non-current assets	7,816,000	7,526,000
Total assets	255,214,000	243,036,000
Accrued liabilities:
Accounts payable	10,069,000	9,418,000
Contract liabilities	43,334,000	52,124,000
Accrued liabilities	13,764,000	13,708,000
Operating lease liabilities, current	5,540,000	3,263,000
Finance lease obligations, current	0	2,000
Total current liabilities	72,707,000	78,515,000
Deferred income taxes, non-current	2,278,000	2,257,000
Operating lease liabilities, non-current	23,294,000	13,477,000
Other non-current liabilities	4,858,000	4,018,000
Commitments and contingencies
Shareholders' equity:
Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 31,606,831 shares issued; and 25,370,482 and 25,326,626 shares outstanding at September 30, 2023 and March 31, 2023, respectively	9,482,000	9,482,000
Treasury shares, 6,236,349 and 6,280,205 at September 30, 2023 and March 31, 2023, respectively	(1,871,000)	(1,884,000)
Capital in excess of stated value	55,154,000	52,978,000
Retained earnings	57,939,000	52,764,000
Accumulated other comprehensive loss	(4,086,000)	(4,030,000)
Total shareholders' equity	116,618,000	109,310,000
Total liabilities and shareholders' equity	255,214,000	243,036,000
Series A Convertible Preferred Stock [Member]
Other non-current liabilities:
Series A convertible preferred stock, no par value	$ 35,459,000	$ 35,459,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Allowance for expected credit losses	$ 723	$ 610
Common stock, stated value	$ 0.3	$ 0.3
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	31,606,831	31,606,831
Common stock, shares outstanding	25,370,482	25,326,626
Treasury shares	6,236,349	6,280,205

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net revenue:
Total net revenue	$ 58,616	$ 47,742	$ 114,676	$ 95,248
Cost of goods sold:
Total cost of goods sold	23,520	18,377	46,522	37,388
Gross profit	$ 35,096	$ 29,365	$ 68,154	$ 57,860
Gross profit margin	59.90%	61.50%	59.40%	60.70%
Operating expenses:
Product development	$ 14,583	$ 12,577	$ 27,904	$ 24,134
Sales and marketing	6,400	5,320	13,701	10,733
General and administrative	8,785	7,570	18,150	14,922
Depreciation of fixed assets	1,209	461	2,133	934
Amortization of internal-use software and intangibles	347	443	776	896
Other charges	210	67	969	281
Total operating expense	31,534	26,438	63,633	51,900
Operating income	3,562	2,927	4,521	5,960
Other income (expense):
Interest income	1,227	380	2,328	482
Interest expense	0	(1)	0	(1)
Other income (expense), net	51	112	(109)	414
Income before taxes	4,840	3,418	6,740	6,855
Income tax provision (benefit)	295	(158)	647	240
Net income	4,545	3,576	6,093	6,615
Series A convertible preferred stock dividends	(459)	(459)	(918)	(918)
Net income attributable to common shareholders	$ 4,086	$ 3,117	$ 5,175	$ 5,697
Weighted average shares outstanding - basic	25,022	24,652	24,979	24,625
Net income per share - basic:	$ 0.16	$ 0.13	$ 0.21	$ 0.23
Weighted average shares outstanding - diluted	26,117	25,783	26,148	25,591
Net income per share - diluted:	$ 0.16	$ 0.12	$ 0.2	$ 0.22
Products [Member]
Net revenue:
Total net revenue	$ 12,640	$ 10,548	$ 25,422	$ 21,594
Cost of goods sold:
Total cost of goods sold	6,751	5,434	13,317	11,314
Subscription and maintenance [Member]
Net revenue:
Total net revenue	34,248	29,036	66,373	56,763
Cost of goods sold:
Total cost of goods sold	7,804	6,170	15,441	12,456
Professional services [Member]
Net revenue:
Total net revenue	11,728	8,158	22,881	16,891
Cost of goods sold:
Total cost of goods sold	$ 8,965	$ 6,773	$ 17,764	$ 13,618

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 4,545	$ 3,576	$ 6,093	$ 6,615
Other comprehensive (loss), net of tax:
Unrealized foreign currency translation adjustments	(579)	(256)	(56)	(654)
Total comprehensive income	$ 3,966	$ 3,320	$ 6,037	$ 5,961

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating activities
Net Income (Loss)	$ 4,545	$ 3,576	$ 6,093	$ 6,615
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of fixed assets	1,209	461	2,133	934
Amortization of internal-use software and intangibles	347	443	776	896
Deferred income taxes			(389)	(306)
Share-based compensation	2,684	3,456	5,851	5,944
Changes in operating assets and liabilities			(8,994)	(10,966)
Net cash provided by operating activities			5,470	3,117
Investing activities
Capital expenditures			(6,002)	(797)
Additional investments in corporate-owned life insurance policies			(2)	(2)
Net cash used in investing activities			(6,004)	(799)
Financing activities
Payment of preferred stock dividends			(918)	(918)
Repurchase of common shares to satisfy employee tax withholding			(3,868)	(1,455)
Principal payments under long-term obligations			(2)	(2)
Net cash used in financing activities			(4,788)	(2,375)
Effect of exchange rate changes on cash			(107)	(718)
Net decrease in cash and cash equivalents			(5,429)	(775)
Cash and cash equivalents at beginning of period			112,842	96,971
Cash and cash equivalents at end of period	$ 107,413	$ 96,196	$ 107,413	$ 96,196

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common stock [Member]	TreasuryStockMember	Capital in excess of stated value [Member]	Retained Earnings [Member]	Accumulated other comprehensive income (loss) [Member]
Beginning balance at Mar. 31, 2022	$ 97,344	$ 9,482	$ (2,063)	$ 49,963	$ 40,018	$ (56)
Beginning balance (in shares) at Mar. 31, 2022		31,607	(6,879)
Share-based compensation	6,019			6,019
Restricted shares issued, net			$ 73	(73)
Restricted shares issued, net (in shares)			245
Shares issued upon exercise of SSARs			$ 37	(37)
Shares issued upon exercise of SSARs ( in shares)			123
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares	(1,812)		$ (12)	(1,800)
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares (in shares)			(39)
Net Income (Loss)	6,615				6,615
Series A convertible preferred stock dividends	(918)				(918)
Unrealized translation adjustments	(654)					(654)
Ending balance at Sep. 30, 2022	106,594	$ 9,482	$ (1,965)	54,072	45,715	(710)
Ending balance (in shares) at Sep. 30, 2022		31,607	(6,550)
Beginning balance at Jun. 30, 2022	101,276	$ 9,482	$ (1,974)	51,624	42,598	(454)
Beginning balance (in shares) at Jun. 30, 2022		31,607	(6,582)
Share-based compensation	3,396			3,396
Restricted shares issued, net			$ (2)	2
Restricted shares issued, net (in shares)			(5)
Shares issued upon exercise of SSARs			$ 16	(16)
Shares issued upon exercise of SSARs ( in shares)			54
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares	(939)		$ (5)	(934)
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares (in shares)			(17)
Net Income (Loss)	3,576				3,576
Series A convertible preferred stock dividends	(459)				(459)
Unrealized translation adjustments	(256)					(256)
Ending balance at Sep. 30, 2022	106,594	$ 9,482	$ (1,965)	54,072	45,715	(710)
Ending balance (in shares) at Sep. 30, 2022		31,607	(6,550)
Beginning balance at Mar. 31, 2023	109,310	$ 9,482	$ (1,884)	52,978	52,764	(4,030)
Beginning balance (in shares) at Mar. 31, 2023		31,607	(6,280)
Share-based compensation	5,911			5,911
Restricted shares issued, net			$ 1	(1)
Restricted shares issued, net (in shares)			4
Shares issued upon exercise of SSARs			$ 27	(27)
Shares issued upon exercise of SSARs ( in shares)			90
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares	(3,722)		$ (15)	(3,707)
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares (in shares)			(50)
Net Income (Loss)	6,093				6,093
Series A convertible preferred stock dividends	(918)				(918)
Unrealized translation adjustments	(56)					(56)
Ending balance at Sep. 30, 2023	116,618	$ 9,482	$ (1,871)	55,154	57,939	(4,086)
Ending balance (in shares) at Sep. 30, 2023		31,607	(6,236)
Beginning balance at Jun. 30, 2023	111,686	$ 9,482	$ (1,877)	53,735	53,853	(3,507)
Beginning balance (in shares) at Jun. 30, 2023		31,607	(6,255)
Share-based compensation	2,534			2,534
Restricted shares issued, net			$ (2)	2
Restricted shares issued, net (in shares)			(8)
Shares issued upon exercise of SSARs			$ 12	(12)
Shares issued upon exercise of SSARs ( in shares)			40
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares	(1,109)		$ (4)	(1,105)
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares (in shares)			(13)
Net Income (Loss)	4,545				4,545
Series A convertible preferred stock dividends	(459)				(459)
Unrealized translation adjustments	(579)					(579)
Ending balance at Sep. 30, 2023	$ 116,618	$ 9,482	$ (1,871)	$ 55,154	$ 57,939	$ (4,086)
Ending balance (in shares) at Sep. 30, 2023		31,607	(6,236)

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 4,545	$ 3,576	$ 6,093	$ 6,615

Insider Trading Arrangements

Insider Trading Arrangements shares in Thousands	6 Months Ended
	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On August 1, 2023 , MAK Capital One L.L.C. (“MAK Capital”) adopted a trading plan (the “Purchase Plan”) that is intended to satisfy the affirmative defense set forth in Rule 10b5-1(c)(1) promulgated under the Securities Exchange Act of 1934, as amended, to sell up to 867,728 shares of the Company’s common stock which represents 50% of the common shares issuable to MAK Capital upon the Company’s mandatory conversion of its outstanding 5.25% Series A Convertible Preferred Shares (“Convertible Preferred Shares”) , subject to the restrictions of Rule 144 of the Securities Act of 1933, as amended. The trading period of the Purchase Plan will not commence until the Company’s mandatory conversion of its Convertible Preferred Shares, the earliest date of which is November 24, 2023 and the Purchase Plan will terminate on May 1, 2024 . No trading will occur under the Purchase Plan on November 24, 2023 and from December 18, 2023 to December 29, 2023. Michael A. Kaufman , a Director of the Company, is managing member of MAK Capital.
Name	Michael A. Kaufman
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 1, 2023
Rule 10b5-1 Arrangement Terminated	true
Termination Date	May 1, 2024
Aggregate Available	867,728

Nature of Operations and Financ

Nature of Operations and Financial Statement Presentation	6 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Financial Statement Presentation	1. Nature of Operations and Financial Statement Presentation Nature of Operations Agilysys has been a leader in hospitality software for more than 40 years, delivering innovative cloud-native SaaS and on-premise solutions for hotels, resorts and cruise lines, casinos, corporate foodservice management, restaurants, universities, stadiums, and healthcare. The Company’s software solutions include point-of-sale (POS), property management (PMS), inventory and procurement, payments, and related applications that manage and enhance the entire guest journey. Agilysys also is known for its world-class customer-centric service. Many of the top hospitality companies around the world use Agilysys solutions to improve guest loyalty, drive revenue growth, and increase operational efficiencies. Agilysys operates across North America, Europe, the Middle East, Asia-Pacific, and India, with headquarters in Alpharetta, GA. The Company has just one reportable segment serving the global hospitality industry. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include our accounts consolidated with our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Our fiscal year ends on March 31st. References to a particular year refer to the fiscal year ending in March of that year. For example, fiscal 2024 refers to the fiscal year ending March 31, 2024. Our unaudited interim financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to the Quarterly Report on Form 10-Q (Quarterly Report) under the Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 10-01 of Regulation S-X under the Exchange Act. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations relating to interim financial statements. The Condensed Consolidated Balance Sheet as of September 30, 2023, as well as the Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended September 30, 2023 and 2022, and the Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2023 and 2022, are unaudited. However, these financial statements have been prepared on the same basis as those in the audited annual financial statements. In the opinion of management, all adjustments of a recurring nature necessary to fairly state the results of operations, financial position, and cash flows have been made. These unaudited interim financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended March 31, 2023, filed with the Securities and Exchange Commission (SEC) on May 19, 2023. Use of estimates Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that may 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 due to uncertainties.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies A detailed description of our significant accounting policies can be found in the audited financial statements for the fiscal year ended March 31, 2023, included in our Annual Report on Form 10-K. There have been no material changes to our significant accounting policies from those disclosed therein.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	3. Revenue Recognition Our customary business practice is to enter into legally enforceable written contracts with our customers. The majority of our contracts are governed by a master service agreement between us and the customer, which sets forth the general terms and conditions of any individual contract between the parties, which is then supplemented by a customer order to specify the different goods and services, the associated prices, and any additional terms for an individual contract. Performance obligations specific to each individual contract are defined within the terms of each order. Each performance obligation is identified based on the goods and services that will be transferred to our customer that are both capable of being distinct and are distinct within the context of the contract. The transaction price is determined based on the consideration to which we will be entitled and expect to receive in exchange for transferring goods or services to the customer. Typically, our contracts do not provide our customer with any right of return or refund; we do not constrain the contract price as it is probable that there will not be a significant revenue reversal due to a return or refund. Typically, our customer contracts contain one or more of the following goods or services which constitute performance obligations. Our proprietary software licenses typically provide for a perpetual right to use our software. Generally, our contracts do not provide significant services of integration and customization and installation services are not required to be purchased directly from us. The software is delivered before related services are provided and is functional without professional services, updates and technical support. We have concluded that the software license is distinct as the customer can benefit from the software on its own. Software revenue is typically recognized when the software is delivered or made available for download to the customer. We recognize revenue for hardware sales when the product is shipped to the customer and when obligations that affect the customer’s final acceptance of the arrangement have been fulfilled. Hardware is purchased from suppliers and provided to the end-user customers via drop-ship or from inventory. 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 ship or 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. Our subscription service revenue is comprised of fees for contracts that provide customers a right to access our software for a subscribed period. We do not provide the customer the contractual right to license the software at any time outside of the subscription period under these contracts. Our subscription service revenue is primarily based on rates per location, including rates per points of sale and per room. We recognize certain subscription service revenue on a per-transaction basis. The customer can only benefit from the software and software maintenance when provided the right to access the software. Accordingly, each of the rights to access the software, the maintenance services, any hosting services, and any transaction-based services is not considered a distinct performance obligation in the context of the contract and should be combined into a single performance obligation to be recognized over the contract period. The Company recognizes subscription revenue over a one-month period based on the typical monthly invoicing and renewal cycle in accordance with our customer agreement terms. We derive maintenance service revenue from providing unspecified updates, upgrades, bug fixes, and technical support services for our proprietary software. These services represent a stand-ready obligation that is concurrently delivered and has the same pattern of transfer to the customer; we account for these maintenance services as a single performance obligation. Maintenance revenue includes the same services provided by third-parties for remarketed software. We recognize substantially all maintenance revenue over the contract period of the maintenance agreement. We also recognize certain maintenance service revenue based on the volume of payment transactions processed by third parties through access to our software. Professional services revenues primarily consist of fees for consulting, implementation, installation, integration and training and are generally recognized over time as the customer simultaneously receives and consumes the benefits of the professional services as the services are being performed. Professional services can be provided by internal or external providers, do not significantly affect the customer’s ability to access or use other provided goods or services, and provide a measure of benefit beyond that of other promised goods or services in the contract. As a result, professional services are considered distinct in the context of the contract and represent a separate performance obligation. Professional services that are billed on a time and materials basis are recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time using an input method based on labor hours expended to date relative to the total labor hours expected to be required to satisfy the related performance obligation. We use the market approach to derive standalone selling price (“SSP”) by maximizing observable data points (in the form of recently executed customer contracts) to determine the price customers are willing to pay for the goods and services transferred. If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative SSP basis. 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. Disaggregation of Revenue We derive and report our revenue from the sale of products (proprietary software licenses, third party hardware and operating systems), subscription and maintenance, and professional services. Products revenue recognized at a point in time totaled $ 12.6 million and $ 10.5 million , and $ 25.4 million and $ 21.6 million for the three and six months ended September 30, 2023 and 2022, respectively. Subscription and maintenance, and professional services revenue recognized substantially over time totaled $ 46.0 million and $ 37.2 million , and $ 89.3 million and $ 73.7 million for the three and six months ended September 30, 2023 and 2022, respectively. Contract Balances Contract assets are rights 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. The majority of our contract assets represent unbilled amounts related to products and professional services. We expect billing and collection of our contract assets to occur within the next twelve months. We receive payments from customers based upon contractual billing schedules and accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities represent consideration received or consideration which is unconditionally due from customers prior to transferring goods or services to the customer under the terms of the contract. Revenue recognized from amounts included in contract liabilities at the beginning of the period was $ 14.8 million and $ 13.9 million for the three months ended September 30, 2023 and 2022, respectively, and $ 36.9 million and $ 34.7 million for the six months ended September 30, 2023 and 2022, respectively. Because the right to the transaction became unconditional, we transferred to accounts receivable from contract assets at the beginning of the period, $ 0.3 million and $ 0.1 million for the three months ended September 30, 2023 and 2022, respectively, and $ 1.9 million and $ 1.6 million for the six months ended September 30, 2023 and 2022, respectively. Our arrangements are for a period of one year or less. As a result, unsatisfied performance obligations as of September 30, 2023 are expected to be satisfied and the allocated transaction price recognized in revenue within a period of 12 months or less. Assets Recognized from Costs to Obtain a Contract Sales commission expenses that would not have occurred absent the customer contracts are considered incremental costs to obtain a contract. We expense the incremental costs to obtain a contract as incurred when the expected benefit and amortization period is one year or less. For subscription contracts that are renewed monthly based on an agreement term, we capitalize commission expenses and amortize as we satisfy the underlying performance obligations, generally based on the contract terms and anticipated renewals. Other sales commission expenses have a period of benefit of one year or less and are therefore expensed as incurred in line with the practical expedient elected. We had $ 4.1 million and $ 3.4 million of capitalized sales incentive costs as of September 30, 2023 and 2022, respectively. These balances are included in other non-current assets on our condensed consolidated balance sheets. During the three and six months ended September 30, 2023, we expensed $ 0.9 million and $ 1.9 million , respectively, of sales commissions, which included amortization of capitalized amounts of $ 0.4 million and $ 0.8 million , respectively. During the comparable periods ending September 30, 2022, we expensed $ 0.8 million and $ 1.5 million , respectively, of sales commissions, which included amortization of capitalized amounts of $ 0.3 million and $ 0.6 million , respectively. These expenses are included in operating expenses – sales and marketing in our condensed consolidated statement of operations. All other costs to obtain a contract are not considered incremental and therefore are expensed as incurred.

Additional Balance Sheet Inform

Additional Balance Sheet Information	6 Months Ended
	Sep. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Additional Balance Sheet Information	4. Additional Balance Sheet Information Additional information related to the condensed consolidated balance sheets is as follows: (In thousands) September 30, 2023 March 31, 2023 Accrued liabilities: Salaries, wages, and related benefits $ 11,264 $ 11,170 Other taxes payable 1,918 2,127 Professional fees 212 95 Other 370 316 Total $ 13,764 $ 13,708 Other non-current liabilities: Uncertain tax positions $ 1,190 $ 1,178 Employee benefit obligations 3,566 2,742 Other 102 98 Total $ 4,858 $ 4,018 During October 2023, we signed an agreement with the landlord of certain leased office space to terminate the existing lease agreements before the expiration of their lease terms. The agreement will result in the removal of approximately $ 3.9 million in lease liabilities and approximately $ 3.3 million in associated right-of-use assets with a resulting gain of approximately $ 0.6 million .

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information	6 Months Ended
	Sep. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosures of Cash Flow Information	5. Supplemental Disclosures of Cash Flow Information Additional information related to the condensed consolidated statements of cash flows is as follows: Six Months Ended September 30, (In thousands) 2023 2022 Cash receipts for interest, net $ 1,948 $ 407 Cash payments for income tax, net 900 624 Cash payments for operating leases 2,376 2,619 Cash payments for finance leases 3 3 Accrued capital expenditures 227 270

Income Taxes

Income Taxes	6 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes The following table compares our income tax provision and effective tax rates for the three and six months ended September 30, 2023 and 2022: Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Income tax provision (benefit) $ 295 $ ( 158 ) $ 647 $ 240 Effective tax rate 6.1 % ( 4.6 )% 9.6 % 3.5 % For the three months ended September 30, 2023 and 2022 , respectively, the effective tax rate was different than the statutory rate due primarily to adjustments to deferred tax assets and to valuation allowances that reduce deferred tax assets and to the recording of net operating losses in a number of foreign jurisdictions offset by current year expense in other foreign jurisdictions. 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 five years of operations, which included fiscal 2018 through fiscal 2022. The India subsidiary is subject to 50 % of regular India income taxes during its second five years of operations, which includes fiscal 2023 through fiscal 2027. We have recorded valuation allowances offsetting substantially all the Company’s deferred income tax assets due to the uncertainty of the ultimate realization of the future benefits from those assets. The ultimate realization of deferred tax assets depends on various factors including the generation of taxable income during the future periods in which the underlying temporary differences are deductible. We maintain valuation allowances for deferred tax assets until we have sufficient evidence to support the reversal of all or some portion of the allowances. Based on recent earnings and anticipated future earnings, we believe it is reasonably possible that during the year ending March 31, 2024, we will have sufficient positive evidence to conclude that a significant portion of our valuation allowances will no longer be needed. Releasing the valuation allowances would result in the recognition of certain deferred tax assets and significant income tax benefits. The exact timing and amount of the valuation allowance releases will depend on the level of profitability that we are able to achieve and our visibility into future results. Our recorded effective tax rate may increase in subsequent periods following a valuation allowance release. Any valuation allowance release will not impact the amount of cash paid for income taxes.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Agilysys is the subject of various threatened or pending legal actions and contingencies in the normal course of conducting its business. We provide for costs related to these matters when a loss is probable, and the amount can be reasonably estimated. The effect of the outcome of these matters on our future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount or timing of the resolution of such matters. While it is not possible to predict with certainty, management believes that the ultimate resolution of such individual or aggregated matters will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows. On April 6, 2012, Ameranth, Inc. filed a complaint against us in the U.S. District Court of Southern District of California alleging that certain of our products infringe patents owned by Ameranth directed to configuring and transmitting hospitality menus (e.g., restaurant menus) for display on electronic devices and synchronizing the menu content between the devices. The case against us was consolidated with similar cases brought by Ameranth against more than 30 other defendants. All but one of the patents at issue in the case were invalidated by the U.S. Court of Appeals for the Federal Circuit in 2016. In September 2018, the District Court found the one surviving Ameranth patent invalid. This judgment was affirmed by the U.S. Court of Appeals for the Federal Circuit in November 2019 with respect to all claims under the patent except for two, which were not asserted against Agilysys. In March 2022, the District Court declared the remaining two claims to be patent ineligible, and this judgment was affirmed by the U.S. Court of Appeals for the Federal Circuit in September 2023. Ameranth may still appeal this ruling to the U.S. Supreme Court, and at this time we are not able to predict the outcome of this lawsuit.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share	8. Earnings per Share The following data shows the amounts used in computing earnings per share and the effect on earnings and the weighted average number of shares of dilutive potential common shares. Three Months Ended September 30, Six Months Ended September 30, (In thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income $ 4,545 $ 3,576 $ 6,093 $ 6,615 Series A convertible preferred stock dividends ( 459 ) ( 459 ) ( 918 ) ( 918 ) Net income attributable to common shareholders $ 4,086 $ 3,117 $ 5,175 $ 5,697 Denominator: Weighted average shares outstanding - basic 25,022 24,652 24,979 24,625 Dilutive SSARs 919 992 964 881 Dilutive unvested restricted shares 171 139 201 85 Dilutive unvested restricted stock units 5 — 4 — Weighted average shares outstanding - diluted 26,117 25,783 26,148 25,591 Income per share - basic: $ 0.16 $ 0.13 $ 0.21 $ 0.23 Income per share - diluted: $ 0.16 $ 0.12 $ 0.20 $ 0.22 Anti-dilutive SSARs, restricted shares, 1,735 1,735 1,735 1,736 Basic income per share is computed as net income attributable to common shareholders divided by the weighted average basic shares outstanding. The outstanding shares used to calculate the weighted average basic shares excludes 326,290 and 377,491 of restricted shares at September 30, 2023 and 2022, respectively, as these shares were issued but were not vested and therefore, not considered outstanding for purposes of computing basic income per share at the balance sheet dates. Diluted income per share includes the impact of all potentially dilutive securities on earnings per share. We have stock-settled appreciation rights (SSARs), restricted shares, restricted stock units, and preferred shares that are potentially dilutive securities.

Share-based Compensation

Share-based Compensation	6 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Share-based Compensation	9. Share-based Compensation We may grant incentive stock options, non-qualified stock options, SSARs, restricted shares, restricted stock units, and performance shares under our shareholder-approved 2020 Stock Incentive Plan (the 2020 Plan) for up to 2.25 million common shares, plus 868,864 common shares, the number of shares that were remaining for grant under the 2016 Stock Incentive Plan (the 2016 Plan) as of the effective date of the 2020 Plan, plus the number of shares remaining for grant under the 2016 Plan that are forfeited, settled in cash, canceled or expired. The maximum aggregate number of restricted shares or restricted stock units that may be granted under the 2020 Plan is 3.1 million. We may distribute authorized but unissued shares or treasury shares to satisfy share option and SSAR exercises or grants of restricted shares, restricted stock units or performance shares. For 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 SSARs is seven years from the date of grant. The Compensation Committee of the Board of Directors establishes the period over which SSARs subject to a service condition vest and the vesting criteria for SSARs subject to a market condition. Restricted shares and restricted stock 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 grants may be conditioned upon the attainment of specified performance objectives and other conditions, restrictions, and contingencies. Restricted shares have the right to receive dividends, if any, upon vesting, subject to the same forfeiture provisions that apply to the underlying grants. We record compensation expense related to SSARs, restricted shares, restricted stock units, 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 stock unit and restricted share grants subject only to a service condition is based on the closing price of our common shares on the grant date. For stock option and SSAR grants subject only to a service condition, we estimate the fair value on the grant date using the Black-Scholes-Merton option pricing model with inputs including the closing market price at grant date, exercise price and assumptions regarding the risk-free interest rate, expected volatility of our common shares based on historical volatility, and expected term. For restricted stock unit, restricted share, and SSAR grants subject to a market condition, we estimate the fair value on the grant date through a lattice option pricing model that utilizes a Monte Carlo analysis with inputs including the closing market price at grant date, share price threshold, performance period term and assumptions regarding the risk-free interest rate and expected volatility of our common shares based on historical volatility. Inputs for SSAR grants subject to a market condition also include exercise price, remaining contractual term, and suboptimal exercise factor. We record compensation expense for restricted stock units, restricted shares, and SSAR grants subject to a service condition using the graded vesting method. The fair value of performance shares is based on the closing price of our common shares on the settlement date of the performance award, for which we record compensation expense over the service period consistent with our annual bonus incentive plan as approved by the Compensation Committee of the Board of Directors. The following table summarizes the share-based compensation expense for restricted and performance grants included in the condensed consolidated statements of operations: Three Months Ended September 30, Six Months Ended September 30, (In thousands) 2023 2022 2023 2022 Product development 1,239 2,141 2,865 3,662 Sales and marketing 94 290 259 565 General and administrative 1,351 1,025 2,727 1,717 Total share-based compensation expense 2,684 3,456 5,851 5,944 Stock-Settled Appreciation Rights SSARs are rights granted to an employee to receive value equal to the difference between the price of our common shares on the date of exercise and the exercise price. The value is settled in common shares of Agilysys, Inc. The following table summarizes the activity during the six months ended September 30, 2023 for SSARs awarded under the 2020 and 2016 Plans: (In thousands, except share and per share data) Number of Weighted-Average Exercise Price Remaining Aggregate (per right) (in years) Outstanding at April 1, 2023 1,572,460 $ 26.04 Granted — — Exercised ( 118,985 ) 17.91 Forfeited — — Expired — — Outstanding at September 30, 2023 1,453,475 $ 26.70 2.7 $ 57,354 Exercisable at September 30, 2023 1,453,475 $ 26.70 2.7 $ 57,354 Vested and expected to vest at September 30, 2023 1,453,475 $ 26.70 2.7 $ 57,354 As of September 30, 2023, there was no unrecognized share-based compensation expense related to SSARs. Restricted Shares We granted shares to certain of our Directors, executives and key employees, the vesting of which is service-based. Certain restricted shares are also subject to a market condition. The following table summarizes the activity during the six months ended September 30, 2023 for restricted shares awarded under the 2020 and 2016 Plans: Number of Shares Weighted-Average Grant-Date Fair Value (per share) Outstanding at April 1, 2023 407,324 $ 47.53 Granted 23,574 70.08 Vested ( 85,056 ) 45.51 Forfeited ( 19,552 ) 46.24 Outstanding at September 30, 2023 326,290 $ 49.77 The weighted-average grant date fair value of the restricted shares includes grants subject only to a service condition and certain grants subject to both a service condition and a market condition. As of September 30, 2023, total unrecognized share-based compensation expense related to unvested restricted shares was $ 7.2 million, which is expected to be recognized over a weighted-average vesting period of 1.8 years. Restricted Stock Units We granted restricted stock units to our Chief Executive Officer, the vesting of which is service-based. Certain restricted stock units are also subject to a market condition. The following table summarizes the activity during six months ended September 30, 2023 for restricted stock units awarded under the 2020 Plan: Number of Shares Weighted-Average Grant-Date Fair Value (per share) Outstanding at April 1, 2023 67,856 $ 71.62 Granted — — Vested — — Forfeited — — Outstanding at September 30, 2023 67,856 $ 71.62 As of September 30, 2023, total unrecognized share-based compensation expense related to non-vested restricted stock units was $ 3.5 million, which is expected to be recognized over the weighted-average vesting period of 2.5 years. Performance Shares Upon approval of the Compensation Committee of our Board of Directors, after achieving the performance conditions associated with our annual bonus plan, we granted 5,168 common shares to our Chief Executive Officer in May 2023 that vested immediately for a total value of $ 0.4 million.

Preferred Stock

Preferred Stock	6 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Preferred Stock	10. Preferred Stock Series A Convertible Preferred Stock On May 22, 2020, we completed the sale of 1,735,457 shares of our preferred stock, without par value, designated as “Series A Convertible Preferred Stock” (the “Convertible Preferred Stock”) to MAK Capital Fund L.P. and MAK Capital Distressed Debt Fund I, LP (the “Holders”) each, in its capacity as a designee of MAK Capital One LLC (the “Purchaser”), pursuant to the terms of the Investment Agreement, dated as of May 11, 2020, between the Company and the Purchaser, for an aggregate purchase price of $ 35 million. We incurred issuance costs of $ 1.0 million. We added all issuance costs that were netted against the proceeds upon issuance of the Convertible Preferred Stock to its redemption value. As disclosed in our Annual Report for the fiscal year ended March 31, 2021, Michael Kaufman, the Chairman of the Company’s Board of Directors, is the Chief Executive Officer of MAK Capital One LLC. Conversion Each Holder has the right, at its option, to convert its Convertible Preferred Stock, in whole or in part, into fully paid and non-assessable shares of common stock at a conversion price equal to $ 20.1676 per share (as may be adjusted from time to time, as described in the Certificate of Designation). Subject to certain conditions, the Company may, at its option, require conversion of all of the outstanding shares of Convertible Preferred Stock to common stock if, at any time after November 22, 2023 , the daily volume-weighted average price of the Company’s common stock is at least 150 % of the conversion price for at least 20 trading days during the 30 consecutive trading days immediately preceding the date the Company notifies the Holders of the election to convert. Dividends The Holders are entitled to dividends on the Liquidation Preference at the rate of 5.25 % per annum, payable semi-annually either (i) 50% in cash and 50% in kind as an increase in the then-current Liquidation Preference or (ii) 100% in cash, at the option of the Company. We pay dividends in the same period as declared by the Company’s Board of Directors.

Additional Balance Sheet Info_2

Additional Balance Sheet Information (Tables)	6 Months Ended
	Sep. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Schedule of Additional Information Related to the Condensed Consolidated Balance Sheets	Additional information related to the condensed consolidated balance sheets is as follows: (In thousands) September 30, 2023 March 31, 2023 Accrued liabilities: Salaries, wages, and related benefits $ 11,264 $ 11,170 Other taxes payable 1,918 2,127 Professional fees 212 95 Other 370 316 Total $ 13,764 $ 13,708 Other non-current liabilities: Uncertain tax positions $ 1,190 $ 1,178 Employee benefit obligations 3,566 2,742 Other 102 98 Total $ 4,858 $ 4,018

Supplemental Disclosures of C_2

Supplemental Disclosures of Cash Flow Information (Tables)	6 Months Ended
	Sep. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Schedule of supplemental cash flow information	Additional information related to the condensed consolidated statements of cash flows is as follows: Six Months Ended September 30, (In thousands) 2023 2022 Cash receipts for interest, net $ 1,948 $ 407 Cash payments for income tax, net 900 624 Cash payments for operating leases 2,376 2,619 Cash payments for finance leases 3 3 Accrued capital expenditures 227 270

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rates from continuing operations	The following table compares our income tax provision and effective tax rates for the three and six months ended September 30, 2023 and 2022: Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Income tax provision (benefit) $ 295 $ ( 158 ) $ 647 $ 240 Effective tax rate 6.1 % ( 4.6 )% 9.6 % 3.5 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of amounts used in computing earnings per share and the effect on earnings and the weighted average number of shares of dilutive potential common shares	The following data shows the amounts used in computing earnings per share and the effect on earnings and the weighted average number of shares of dilutive potential common shares. Three Months Ended September 30, Six Months Ended September 30, (In thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income $ 4,545 $ 3,576 $ 6,093 $ 6,615 Series A convertible preferred stock dividends ( 459 ) ( 459 ) ( 918 ) ( 918 ) Net income attributable to common shareholders $ 4,086 $ 3,117 $ 5,175 $ 5,697 Denominator: Weighted average shares outstanding - basic 25,022 24,652 24,979 24,625 Dilutive SSARs 919 992 964 881 Dilutive unvested restricted shares 171 139 201 85 Dilutive unvested restricted stock units 5 — 4 — Weighted average shares outstanding - diluted 26,117 25,783 26,148 25,591 Income per share - basic: $ 0.16 $ 0.13 $ 0.21 $ 0.23 Income per share - diluted: $ 0.16 $ 0.12 $ 0.20 $ 0.22 Anti-dilutive SSARs, restricted shares, 1,735 1,735 1,735 1,736

Share-based Compensation (Table

Share-based Compensation (Tables)	6 Months Ended
	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Summary of share-based compensation expense	The following table summarizes the share-based compensation expense for restricted and performance grants included in the condensed consolidated statements of operations: Three Months Ended September 30, Six Months Ended September 30, (In thousands) 2023 2022 2023 2022 Product development 1,239 2,141 2,865 3,662 Sales and marketing 94 290 259 565 General and administrative 1,351 1,025 2,727 1,717 Total share-based compensation expense 2,684 3,456 5,851 5,944
Activity related SSARs award	The following table summarizes the activity during the six months ended September 30, 2023 for SSARs awarded under the 2020 and 2016 Plans: (In thousands, except share and per share data) Number of Weighted-Average Exercise Price Remaining Aggregate (per right) (in years) Outstanding at April 1, 2023 1,572,460 $ 26.04 Granted — — Exercised ( 118,985 ) 17.91 Forfeited — — Expired — — Outstanding at September 30, 2023 1,453,475 $ 26.70 2.7 $ 57,354 Exercisable at September 30, 2023 1,453,475 $ 26.70 2.7 $ 57,354 Vested and expected to vest at September 30, 2023 1,453,475 $ 26.70 2.7 $ 57,354
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Activity related to restricted shares awarded by the Company	The following table summarizes the activity during the six months ended September 30, 2023 for restricted shares awarded under the 2020 and 2016 Plans: Number of Shares Weighted-Average Grant-Date Fair Value (per share) Outstanding at April 1, 2023 407,324 $ 47.53 Granted 23,574 70.08 Vested ( 85,056 ) 45.51 Forfeited ( 19,552 ) 46.24 Outstanding at September 30, 2023 326,290 $ 49.77
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Activity related to restricted shares awarded by the Company	The following table summarizes the activity during six months ended September 30, 2023 for restricted stock units awarded under the 2020 Plan: Number of Shares Weighted-Average Grant-Date Fair Value (per share) Outstanding at April 1, 2023 67,856 $ 71.62 Granted — — Vested — — Forfeited — — Outstanding at September 30, 2023 67,856 $ 71.62

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total net revenue	$ 58,616	$ 47,742	$ 114,676	$ 95,248
Revenue recognized	14,800	13,900	36,900	34,700
Transfers to accounts receivable	300	100	1,900	1,600
Capitalized contract cost, net	4,100	3,400	4,100	3,400
Sales commissions and fees	900	800	1,900	1,500
Capitalized contract cost, amortization	400	300	800	600
Products [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	12,640	10,548	25,422	21,594
Support, Maintenance, Subscription Services, And Professional Services [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	$ 46,000	$ 37,200	$ 89,300	$ 73,700

Additional Balance Sheet Info_3

Additional Balance Sheet Information - Schedule of Additional Information Related to the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Accrued liabilities:
Salaries, wages, and related benefits	$ 11,264	$ 11,170
Other taxes payable	1,918	2,127
Professional fees	212	95
Other	370	316
Total	13,764	13,708
Other non-current liabilities:
Uncertain tax positions	1,190	1,178
Employee benefit obligations	3,566	2,742
Other	102	98
Total	$ 4,858	$ 4,018

Additional Balance Sheet Info_4

Additional Balance Sheet Information - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended
	Oct. 31, 2023	Sep. 30, 2023	Mar. 31, 2023
Public Utilities, Inventory [Line Items]
Operating lease right-of-use assets		$ 23,097	$ 12,708
Scenario Forecast [Member]
Public Utilities, Inventory [Line Items]
Operating lease liability	$ 3,900
Operating lease right-of-use assets	3,300
Operating Lease Income	$ 600

Supplemental Disclosures of C_3

Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Supplemental Cash Flow Elements [Abstract]
Cash receipts for interest, net	$ 1,948	$ 407
Cash payments for income tax, net	900	624
Cash payments for operating leases	2,376	2,619
Cash payments for finance leases	3	3
Accrued capital expenditures	$ 227	$ 270

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 295	$ (158)	$ 647	$ 240
Effective tax rate	6.10%	(4.60%)	9.60%	3.50%

Income Taxes (Details Textual)

Income Taxes (Details Textual)	6 Months Ended
	Sep. 30, 2023
Operating Loss Carryforwards [Line Items]
Regular corporate income tax rate in India	50%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net Income (Loss)	$ 4,545	$ 3,576	$ 6,093	$ 6,615
Series A convertible preferred stock dividends	(459)	(459)	(918)	(918)
Net income attributable to common shareholders	$ 4,086	$ 3,117	$ 5,175	$ 5,697
Denominator:
Weighted average shares outstanding - basic	25,022	24,652	24,979	24,625
Dilutive SSARs	919	992	964	881
Dilutive unvested restricted shares	171	139	201	85
Dilutive unvested restricted stock units	5	0	4	0
Weighted average shares outstanding - diluted	26,117	25,783	26,148	25,591
Income per share - basic:	$ 0.16	$ 0.13	$ 0.21	$ 0.23
Income per share - diluted:	$ 0.16	$ 0.12	$ 0.2	$ 0.22
Earnings Per Share, Diluted [Abstract]
Anti-dilutive SSARs, restricted shares, performance shares and preferred shares	1,735	1,735	1,735	1,736

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual) - shares shares in Thousands	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Incremental common shares attributable to restricted shares (in shares)	326,290	377,491

Share-based Compensation (Detai

Share-based Compensation (Details Textual) shares in Thousands, $ in Millions	6 Months Ended
	Sep. 30, 2023 USD ($) shares
Performance Share [Member] | Chief Executive Officer [Member]
Stock Based Compensation (Textual) [Abstract]
Shares available for grant	5,168
Share-based compensation, grant date fair value | $	$ 0.4
Restricted Stock [Member]
Stock Based Compensation (Textual) [Abstract]
Weighted-average vesting period	1 year 9 months 18 days
Unrecognized stock based compensation expense related to unvested restricted stock | $	$ 7.2
Restricted Stock Units (RSUs) [Member]
Stock Based Compensation (Textual) [Abstract]
Weighted-average vesting period	2 years 6 months
Unrecognized stock based compensation expense related to unvested restricted stock | $	$ 3.5
Two Thousand and Twenty Equity Incentive Plan [Member] | Restricted Shares and Restricted Share Units [Member]
Stock Based Compensation (Textual) [Abstract]
Shares authorized under 2020 Equity incentive plan	2,250
Two Thousand and Sixteen Stock Incentive Plan [Member]
Stock Based Compensation (Textual) [Abstract]
Shares available for grant	3,100
Two Thousand and Sixteen Stock Incentive Plan [Member] | Restricted Shares and Restricted Share Units [Member]
Stock Based Compensation (Textual) [Abstract]
Shares available for grant	868,864

Share-based Compensation (Det_2

Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based Payment Arrangement, Noncash Expense	$ 2,684	$ 3,456	$ 5,851	$ 5,944
Product development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Summary of share-based compensation expense	1,239	2,141	2,865	3,662
Selling and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Summary of share-based compensation expense	94	290	259	565
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Summary of share-based compensation expense	$ 1,351	$ 1,025	$ 2,727	$ 1,717

Share-based Compensation (Det_3

Share-based Compensation (Details 2) - Stock Appreciation Rights (SARs) $ / shares in Units, $ in Thousands	6 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Rights, Outstanding at Beginning of Period | shares	1,572,460
Number of Rights Granted | shares	0
Number of Rights, Exercised | shares	(118,985)
Number of Rights, Forfeited | shares	0
Number of Rights, Expired | shares	0
Number of Rights, Outstanding at End of Period | shares	1,453,475
Number of Rights, Exercisable at End of Period | shares	1,453,475
Number of Rights, Vested and expected to vest at September 30, 2023 | shares	1,453,475
Weighted Average Exercise Price, Outstanding at Beginning of Period | $ / shares	$ 26.04
Weighted Average Exercise Price, Granted | $ / shares	0
Weighted Average Exercise Price, Exercised | $ / shares	17.91
Weighted Average Exercise Price, Forfeited | $ / shares	0
Weighted Average Exercise Price, Expired | $ / shares	0
Weighted Average Exercise Price, Outstanding at End of Period | $ / shares	26.7
Weighted Average Exercise Price, Exercisable at End of Period | $ / shares	26.7
Weighted Average Exercise Price, Vested and expected to vest at End of Period | $ / shares	$ 26.7
Remaining Contractual Term, Outstanding at End of Period	2 years 8 months 12 days
Remaining Contractual Term, Exercisable at End of Period	2 years 8 months 12 days
Share Based Compensation Arrangement By Share Based Payment Award Vested And Expected To Vest Outstanding Remaining Contractual Term	2 years 8 months 12 days
Aggregate Intrinsic Value, Outstanding at End of Period | $	$ 57,354
Aggregate Intrinsic Value, Exercisable at End of Period | $	57,354
Aggregate Intrinsic Value, Vested and expected to vest at End of Period | $	$ 57,354

Share-based Compensation - Rest

Share-based Compensation - Restricted Shares Rollforward (Details)	6 Months Ended
	Sep. 30, 2023 $ / shares shares
Restricted Stock [Member]
Activity Related to Restricted Shares Awarded by the Company
Number of Shares, Outstanding at beginning of period | shares	407,324
Number of Shares, Granted | shares	23,574
Number of Shares, Vested | shares	(85,056)
Number of Shares, Forfeited | shares	(19,552)
Number of Shares, Outstanding at end of period | shares	326,290
Weighted Average Grant-Date Fair Value, Outstanding at beginning of period | $ / shares	$ 47.53
Weighted Average Grant Date Fair Value, Granted | $ / shares	70.08
Weighted Average Grant Date Fair Value, Vested | $ / shares	45.51
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	46.24
Weighted Average Grant-Date Fair Value, Outstanding at end of period | $ / shares	$ 49.77
Restricted Stock Units
Activity Related to Restricted Shares Awarded by the Company
Number of Shares, Outstanding at beginning of period | shares	67,856
Number of Shares, Granted | shares	0
Number of Shares, Vested | shares	0
Number of Shares, Forfeited | shares	0
Number of Shares, Outstanding at end of period | shares	67,856
Weighted Average Grant-Date Fair Value, Outstanding at beginning of period | $ / shares	$ 71.62
Weighted Average Grant Date Fair Value, Granted | $ / shares	0
Weighted Average Grant Date Fair Value, Vested | $ / shares	0
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	0
Weighted Average Grant-Date Fair Value, Outstanding at end of period | $ / shares	$ 71.62

Preferred Stock - (Details Text

Preferred Stock - (Details Textual) $ / shares in Units, $ in Millions		6 Months Ended	9 Months Ended
	May 22, 2020 USD ($) shares	Sep. 30, 2023 Days $ / shares	Sep. 30, 2023 Days $ / shares
Class Of Stock [Line Items]
Debt Instrument Convertible Earliest Date		Nov. 22, 2023
Minimum percentage of common stock price to conversion price		150%
Trading days | Days		20
Consecutive trading days | Days			30
Preferred Stock Dividend Rate Percentage		5.25%
Dividends declaration and payment terms		The Holders are entitled to dividends on the Liquidation Preference at the rate of 5.25% per annum, payable semi-annually either (i) 50% in cash and 50% in kind as an increase in the then-current Liquidation Preference or (ii) 100% in cash, at the option of the Company.
Common stock [Member]
Class Of Stock [Line Items]
Price per share | $ / shares		$ 20.1676	$ 20.1676
MAK Capital One, LLC [Member] | Convertible Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock issued | shares	1,735,457
Preferred stock issued, value | $	$ 35
Payments of stock issuance costs | $	$ 1