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 |