Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Mar. 31, 2020 | May 20, 2020 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
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 | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,400,816 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Shares, without par value | |
Trading Symbol | AGYS | |
Security Exchange Name | NASDAQ | |
Document Annual Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 0-5734 | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-0907152 | |
Entity Address, Address Line One | 1000 Windward Concourse | |
Entity Address, Address Line Two | Suite 250 | |
Entity Address, City or Town | Alpharetta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30005 | |
City Area Code | 770 | |
Local Phone Number | 810-7800 | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Public Float | $ 375,276,893 | |
Documents Incorporated by Reference [Text Block] | Portions of the registrant's definitive Proxy Statement to be used in connection with its 2020 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 46,653 | $ 40,771 |
Accounts receivable, net of allowance for doubtful accounts of $1,634 and $788, respectively | 35,869 | 27,000 |
Contract assets | 2,125 | 2,921 |
Inventories | 3,887 | 2,044 |
Prepaid expenses and other current assets | 4,874 | 6,272 |
Total current assets | 93,408 | 79,008 |
Property and equipment, net | 12,230 | 15,838 |
Operating lease right-of-use assets | 13,829 | |
Goodwill | 19,622 | 19,622 |
Intangible assets, net | 8,400 | 8,438 |
Software development costs, net | 34,567 | |
Deferred income taxes, non-current | 764 | 443 |
Other non-current assets | 6,309 | 5,675 |
Total assets | 154,562 | 163,591 |
Current liabilities: | ||
Accounts payable | 13,403 | 4,718 |
Contract liabilities | 42,244 | 38,669 |
Accrued liabilities | 9,033 | 14,406 |
Operating lease liabilities, current | 4,719 | |
Finance lease obligations, current | 24 | 22 |
Total current liabilities | 69,423 | 57,815 |
Deferred income taxes, non-current | 880 | 861 |
Operating lease liabilities, non-current | 10,617 | |
Finance lease obligations, non-current | 25 | 35 |
Other non-current liabilities | 1,860 | 4,258 |
Commitments and contingencies (see Note 11) | ||
Shareholders' equity: | ||
Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 31,606,831 shares issued; and 23,609,398 and 23,501,193 shares outstanding at March 31, 2020 and March 31, 2019, respectively | 9,482 | 9,482 |
Treasury shares, 7,997,433 and 8,105,638 at March 31, 2020 and March 31, 2019, respectively | (2,401) | (2,433) |
Capital in excess of stated value | 5,491 | 781 |
Retained earnings | 58,984 | 93,051 |
Accumulated other comprehensive income (loss) | 201 | (259) |
Total shareholders' equity | 71,757 | 100,622 |
Total liabilities and shareholders' equity | $ 154,562 | $ 163,591 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1,634 | $ 788 |
Common stock, stated value | $ 0.30 | $ 0.30 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 31,606,831 | 31,606,831 |
Common stock, shares outstanding | 23,609,398 | 23,501,193 |
Treasury shares | 7,997,433 | 8,105,638 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net revenue: | |||
Total net revenue | $ 160,757 | $ 140,842 | $ 127,360 |
Cost of goods sold: | |||
Total cost of goods sold | 79,805 | 66,962 | 62,943 |
Gross profit | $ 80,952 | $ 73,880 | $ 64,417 |
Gross profit margin | 50.40% | 52.50% | 50.60% |
Operating expenses: | |||
Product development | $ 41,463 | $ 37,817 | $ 27,936 |
Sales and marketing | 19,864 | 19,646 | 18,075 |
General and administrative | 24,374 | 23,118 | 24,028 |
Depreciation of fixed assets | 2,574 | 2,504 | 2,631 |
Amortization of intangibles | 2,541 | 2,567 | 1,879 |
Impairments | 23,740 | ||
Restructuring, severance and other charges | 582 | 1,168 | 1,798 |
Legal settlements, net | (125) | 141 | 150 |
Total operating expense | 115,013 | 86,961 | 76,497 |
Operating loss | (34,061) | (13,081) | (12,080) |
Other (income) expense: | |||
Interest income | (380) | (339) | (98) |
Interest expense | 9 | 10 | 10 |
Other expense (income), net | 176 | 191 | (391) |
Loss before taxes | (33,866) | (12,943) | (11,601) |
Income tax expense (benefit) | 201 | 221 | (3,251) |
Net loss | $ (34,067) | $ (13,164) | $ (8,350) |
Weighted average shares outstanding - basic and diluted | 23,233 | 23,037 | 22,801 |
Net loss per share - basic and diluted: | $ (1.47) | $ (0.57) | $ (0.37) |
Products | |||
Net revenue: | |||
Total net revenue | $ 44,230 | $ 39,003 | $ 33,699 |
Cost of goods sold: | |||
Total cost of goods sold | 36,427 | 31,811 | 26,381 |
Support, maintenance and subscription services | |||
Net revenue: | |||
Total net revenue | 83,680 | 75,496 | 69,068 |
Cost of goods sold: | |||
Total cost of goods sold | 19,248 | 15,895 | 16,688 |
Professional services | |||
Net revenue: | |||
Total net revenue | 32,847 | 26,343 | 24,593 |
Cost of goods sold: | |||
Total cost of goods sold | $ 24,130 | $ 19,256 | $ 19,874 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ (34,067) | $ (13,164) | $ (8,350) |
Other comprehensive income (loss), net of tax: | |||
Unrealized foreign currency translation adjustments | 460 | (4) | (51) |
Total comprehensive loss | $ (33,607) | $ (13,168) | $ (8,401) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | |||
Net loss | $ (34,067) | $ (13,164) | $ (8,350) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Impairments | 23,740 | ||
(Gain) loss on disposal of property & equipment | (5) | 17 | |
Depreciation | 2,574 | 2,504 | 2,631 |
Amortization of intangibles | 2,541 | 2,567 | 1,879 |
Amortization of developed technology | 12,561 | 12,602 | 10,016 |
Deferred income taxes | (356) | 309 | (3,085) |
Share-based compensation | 5,205 | 4,376 | 4,688 |
Accounts receivable | (8,974) | (7,536) | (719) |
Contract assets | 794 | 1,662 | |
Inventories | (1,830) | (50) | 229 |
Prepaid expense and other current assets | 1,545 | (1,158) | 1,485 |
Accounts payable | 8,585 | (3,512) | 130 |
Contract liabilities | 3,563 | 4,845 | (2,448) |
Accrued liabilities | (4,227) | 5,029 | 653 |
Income taxes payable | (153) | (564) | (19) |
Other changes, net | (921) | (686) | (216) |
Net cash provided by operating activities | 10,575 | 7,241 | 6,874 |
Investing activities | |||
Capital expenditures | (3,420) | (3,318) | (6,140) |
Capitalized software development costs | (2,189) | (8,918) | |
Additional (investments in) corporate-owned life insurance policies | (27) | (27) | (27) |
Net cash used in investing activities | (3,447) | (5,534) | (15,085) |
Repurchase of common shares to satisfy employee tax withholding | (1,092) | (647) | (1,171) |
Principal payments under long-term obligations | (24) | (120) | (124) |
Net cash used in financing activities | (1,116) | (767) | (1,295) |
Effect of exchange rate changes on cash | (130) | (112) | 194 |
Net increase (decrease) in cash and cash equivalents | 5,882 | 828 | (9,312) |
Cash and cash equivalents at beginning of period | 40,771 | 39,943 | 49,255 |
Cash and cash equivalents at end of period | $ 46,653 | $ 40,771 | $ 39,943 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common stock [Member] | Treasury stock [Member] | Capital in excess of stated value [Member] | Retained Earnings [Member] | Accumulated other comprehensive income (loss) [Member] |
Beginning balance at Mar. 31, 2017 | $ 113,669 | $ 9,482 | $ (2,519) | $ (5,782) | $ 112,692 | $ (204) |
Beginning balance (in shares) at Mar. 31, 2017 | 31,607 | 8,397 | ||||
Cumulative effect of change in accounting policy | 741 | (741) | ||||
Share based compensation | 4,463 | 4,463 | ||||
Restricted shares issued, net | $ 64 | (64) | ||||
Restricted shares issued, net (in shares) | 213 | |||||
Shares issued upon exercise of stock options and SSARs | $ 2 | (2) | ||||
Shares issued upon exercise of stock options and SSARs (in shares) | 8 | |||||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares | (1,300) | $ (33) | (1,267) | |||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares (in shares) | (107) | |||||
Net loss | (8,350) | (8,350) | ||||
Unrealized translation adjustments | (51) | (51) | ||||
Ending balance at Mar. 31, 2018 | 108,431 | $ 9,482 | $ (2,486) | (1,911) | 103,601 | (255) |
Ending balance (in shares) at Mar. 31, 2018 | 31,607 | 8,283 | ||||
Cumulative effect of change in accounting policy | 2,614 | 2,614 | ||||
Share based compensation | 3,971 | 3,971 | ||||
Restricted shares issued, net | $ 54 | (54) | ||||
Restricted shares issued, net (in shares) | 180 | |||||
Shares issued upon exercise of stock options and SSARs | $ 18 | (18) | ||||
Shares issued upon exercise of stock options and SSARs (in shares) | 60 | |||||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares | (1,226) | $ (19) | (1,207) | |||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares (in shares) | (62) | |||||
Net loss | (13,164) | (13,164) | ||||
Unrealized translation adjustments | (4) | (4) | ||||
Ending balance at Mar. 31, 2019 | 100,622 | $ 9,482 | $ (2,433) | 781 | 93,051 | (259) |
Ending balance (in shares) at Mar. 31, 2019 | 31,607 | 8,105 | ||||
Share based compensation | 5,682 | 5,682 | ||||
Restricted shares issued, net | $ 41 | (41) | ||||
Restricted shares issued, net (in shares) | 140 | |||||
Shares issued upon exercise of stock options and SSARs | $ 6 | (6) | ||||
Shares issued upon exercise of stock options and SSARs (in shares) | 21 | |||||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares | (940) | $ (15) | (925) | |||
Shares withheld for taxes upon exercise of stock options, SSARs or vesting of restricted shares (in shares) | (53) | |||||
Net loss | (34,067) | (34,067) | ||||
Unrealized translation adjustments | 460 | 460 | ||||
Ending balance at Mar. 31, 2020 | $ 71,757 | $ 9,482 | $ (2,401) | $ 5,491 | $ 58,984 | $ 201 |
Ending balance (in shares) at Mar. 31, 2020 | 31,607 | 7,997 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | 1. Nature of Operations Agilysys has been a leader in hospitality software for more than 40 years, delivering innovative guest-centric technology solutions for gaming, hotels, resorts and cruise, corporate foodservice management, restaurants, universities, stadia, airport foodservice and healthcare. Agilysys offers the most comprehensive solutions in the industry, including point of sale (POS), property management systems (PMS), inventory and procurement, payments, and related applications, to manage the entire guest journey. The Company has just one reportable segment serving the global hospitality industry. Agilysys operates across North America, Europe, Asia-Pacific, and India with headquarters located in Alpharetta, GA. Reference herein to any particular year or quarter refers to periods within the fiscal year ended March 31. For example, fiscal 2020 refers to the fiscal year ended March 31, 2020. COVID-19 Pandemic During the fourth quarter ended March 31, 2020, concerns related to the spread of novel coronavirus (“COVID-19”) began to create global business disruptions as well as disruptions in our operations and cause potential negative impacts on our revenues and other financial results. COVID-19 was declared a pandemic by the World Health Organization on March 11, 2020. The extent to which COVID-19 will impact our financial condition or results of operations is currently uncertain and depends on various factors, including the impact on our customers, partners, and vendors and on the operation of the global markets in general. Because an increasing portion of our business is based on a subscription model, the effect of COVID-19 on our results of operations may also not be fully reflected for some time. The COVID-19 pandemic had a significant impact on our business as of March 31, 2020, and the twelve month period then ended. As a result, we recorded impairments of our capitalized software development costs and certain internal use software as of the balance sheet date due to triggering events identified as of year-end. We also increased our allowance for doubtful accounts and our customer credit allowance due to the direct negative impact on our customers as of year-end. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of consolidation. The consolidated financial statements include the accounts of Agilysys, Inc. and subsidiaries. Investments in affiliated companies are accounted for by the equity or cost method, as appropriate. All inter-company accounts have been eliminated. Use of estimates. Preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. In particular, the economic disruption related to the COVID-19 pandemic had a material adverse impact on our results for the year ended March 31, 2020, and we expect it to continue to have a material adverse impact on our results. As such, this annual period, as well as upcoming interim periods, are unlikely to be comparable to past performance or indicative of future performance. Cash and cash equivalents. We consider all highly liquid investments purchased with an original maturity from date of acquisition of three months or less to be cash equivalents. Other highly liquid investments considered cash equivalents with no established maturity date are fully redeemable on demand (without penalty) with settlement of principal and accrued interest on the following business day after instruction to redeem. Such investments are readily convertible to cash with no penalty and can include certificates of deposit, commercial paper, treasury bills, money market funds and other investments. Allowance for doubtful accounts. We maintain allowances for doubtful accounts for estimated losses resulting from the inability or unwillingness of our customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as historic trends of the entire customer pool. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. To mitigate this credit risk we perform periodic credit evaluations of our customers. Customer credit allowance . We maintain allowances for estimated customer credits. Credits are typically due to the timing or amount of customer invoices processed for specific services, including professional and subscription, and maintenance coverage. In many cases, there has not been clear or timely communication of the need to adjust coverage or service at a location in advance of when we invoice for the associated coverage or service. We will issue a credit after agreeing to the service or coverage adjustment as requested by the customer within the terms of our contract. Inventories. Our inventories are comprised of finished goods. Inventories are stated at the lower of cost or net realizable value, net of related reserves. The cost of inventory is computed using a weighted-average method. Our inventory is monitored to ensure appropriate valuation. Adjustments of inventories to the lower of cost or net realizable value, if necessary, are based upon contractual provisions such as turnover and assumptions about future demand and market conditions. If assumptions about future demand change and/or actual market conditions are less favorable than those projected by management, additional adjustments to inventory valuations may be required. We provide a reserve for obsolescence, which is calculated based on several factors, including an analysis of historical sales of products and the age of the inventory. Actual amounts could be different from those estimated. Leases. We determine if an arrangement is or contains a lease at inception. Operating leases are presented as Right-of-Use (“ROU”) assets and the corresponding lease liabilities are included in operating lease liabilities – current and operating lease liabilities – non-current on our Consolidated Balance Sheet. Finance leases are included in property and equipment, net and corresponding liabilities are included in finance lease obligations – current and non-current on our Consolidated Balance Sheet. ROU assets represent our right to use the underlying asset, and lease liabilities represent our obligation for lease payments in exchange for the ability to use the asset for the duration of the lease term. ROU assets and lease liabilities are recognized at commencement date and determined using the present value of the remaining lease payments over the lease term. We use an incremental borrowing rate based on estimated rate of interest for collateralized borrowing since our leases do not include an implicit interest rate. The estimated incremental borrowing rate considers market data, actual lease economic environment, and actual lease term at commencement date. The lease term may include options to extend when it is reasonably certain that we will exercise that option. ROU assets include lease payments made in advance, and excludes any incentives received or initial direct costs incurred. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components which we account for as a single lease component. We also have leases which include variable lease payments, which are expensed as incurred. Our variable lease payments are not based on an index or rate and therefore are excluded from the calculation of lease liabilities. We have elected to not recognize short term leases that have a term of twelve months or less as ROU assets or lease liabilities. Our short-term leases are not material and do not have a material impact on our ROU assets or lease liabilities. Additionally, we do not have any covenants, residual value guarantees, or related party transactions associated with our lease agreements. Goodwill and Other Indefinite-Lived Intangible Assets. Goodwill represents the excess purchase price paid over the fair value of the net assets of acquired companies. The carrying amount of goodwill was $19.6 million as of March 31, 2020 and 2019. Goodwill is tested for impairment on an annual basis, or in interim periods if indicators of potential impairment exist. The Company evaluates whether goodwill is impaired by comparing its market capitalization based on its closing stock price (Level 1 input) to the book value of its equity on the annual evaluation date. Based on testing performed, the Company concluded that no impairment of its goodwill has occurred for the years ended March 31, 2020, 2019 and 2018. The Company is also required to compare the fair values of other indefinite-lived intangible assets to their carrying amounts at least annually, or when current events and circumstances require an interim assessment. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized. Intangible assets. Purchased intangible assets with finite lives are primarily amortized using the straight-line method over the estimated economic lives of the assets. Our finite-lived intangible assets are amortized over periods between two and eight years. Customer relationships are amortized over estimated useful lives between two and seven years; non-competition agreements are amortized over estimated useful lives between two and eight years; developed technology is amortized over estimated useful lives between three and eight years; supplier relationships are amortized over estimated useful lives between two and eight years. Long-lived assets. Property and equipment are recorded at cost. Major renewals and improvements are capitalized. Minor replacements, maintenance, repairs, and reengineering costs are expensed as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is recognized. Depreciation and amortization are provided in amounts sufficient to amortize the cost of the assets, including assets recorded under finance leases, which make up less than one percent of total assets, over their estimated useful lives using the straight-line method. The estimated useful lives for depreciation and amortization are as follows: buildings and building improvements - 7 to 30 years; furniture - 7 to 10 years; equipment - 3 to 10 years; software - 3 to 10 years; and leasehold improvements over the shorter of the economic life or the lease term. Internal use software costs are expensed or capitalized depending on the project stage. Amounts capitalized are amortized over the estimated useful lives of the software, ranging from 3 to 10 years, beginning with the project's completion. Depreciation for capitalized project expenditures does not begin until the underlying project is completed. We evaluate the recoverability of our long-lived assets whenever changes in circumstances or events may indicate that the carrying amounts may not be recoverable. An impairment loss is recognized in the event the carrying value of the assets exceeds the future undiscounted cash flows attributable to such assets. Our long-lived assets and impairments considerations are discussed further in Note 4, Property and Equipment, net. Foreign currency translation. The financial statements of our foreign operations are translated into U.S. dollars for financial reporting purposes. The assets and liabilities of foreign operations whose functional currencies are not in U.S. dollars are translated at the period-end exchange rates, while revenue and expenses are translated at weighted-average exchange rates during the fiscal year. The cumulative translation effects are reflected as a component of “Accumulated other comprehensive loss” within shareholders' equity in the Consolidated Balance Sheets. Gains and losses on monetary transactions denominated in other than the functional currency of an operation are reflected within “Other (income) expenses, net” in the Consolidated Statements of Operations. Foreign currency gains and losses from changes in exchange rates have not been material to our consolidated operating results. Revenue recognition. We derive revenue from the sale of products (i.e., software, third party hardware and operating systems), support, maintenance and subscription services and professional services. For the fiscal years 2020, 2019 and 2018, revenue from international operations was 9%, 9% and 8%, respectively of total revenue. Our customer base is highly fragmented. On April 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), using the modified retrospective method applied to those contracts that were not completed as of the adoption date. Results for reporting periods beginning after the adoption date are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under prior guidance. Revenue recognition under Topic 606 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 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. Revenue for hardware sales is recognized when the product is shipped to the customer and when obligations that affect the customer's final acceptance of the arrangement have been fulfilled. 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. Support and maintenance revenue is derived from providing telephone and on-line technical support services, bug fixes, and unspecified software updates and upgrades to customers on a when-and-if-available basis. 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 support and maintenance services as a single performance obligation recognized over the term of the maintenance agreement. 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. 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, and any hosting 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. Professional services revenues primarily consist of fees for consulting, 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. Comprehensive (loss) income. Comprehensive (loss) income is the total of net (loss) income, as currently reported under GAAP, plus other comprehensive (loss) income. Other comprehensive (loss) income considers the effects of additional transactions and economic events that are not required to be recorded in determining net (loss) income, but rather are reported as a separate statement of comprehensive (loss) income. Fair value measurements . We measure the fair value of financial assets and liabilities on a recurring or non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. In determining fair value of financial assets and liabilities, we use various valuation techniques. Additional information regarding fair value measurements is provided in Note 14, . Investments in corporate-owned life insurance policies. Agilysys invests in corporate-owned life insurance policies, for which some are endorsement split-dollar life insurance arrangements. We entered into agreements with certain former executives, whereby we must maintain the life insurance policy for a specified amount and split a portion of the policy benefits with their respective designated beneficiary. Our investment in these corporate-owned life insurance policies were recorded at their cash surrender value, which approximates fair value at the balance sheet date. In the Consolidated Balance Sheets at the balance sheet date, the cash surrender value of $0.9 million for the remaining policies were held in “Other non-current assets,” and the present value of future proceeds owed to those executives' designated beneficiary of $0.1 million, which approximates fair value, were recorded within "Other non-current liabilities." Additional information regarding the investments in corporate-owned life insurance policies is provided in Note 10, . Income Taxes. Income tax expense includes U.S. and foreign income taxes and is based on reported income before income taxes. We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities are determined based on the enacted tax rates expected to apply in the periods in which the deferred tax assets or liabilities are anticipated to be settled or realized. We regularly review our deferred tax assets for recoverability and establish a valuation allowance if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The determination as to whether a deferred tax asset will be realized is made on a jurisdictional basis and is based on the evaluation of positive and negative evidence. This evidence includes historical taxable income, projected future taxable income, the expected timing of the reversal of existing temporary differences and the implementation of tax planning strategies. We recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from uncertain tax positions are measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. No tax benefits are recognized for positions that do not meet this threshold. Interest related to uncertain tax positions is recognized as part of the provision for income taxes and is accrued beginning in the period that such interest would be applicable under relevant tax law until such time that the related tax benefits are recognized. Our income taxes are described further in Note 9, Income Taxes Capitalized Software Development Costs. The capitalization of software development cost for external use begins when a product’s technological feasibility has been established. Capitalization ends when the resulting product is available for general market release. Amortization of the capitalized software is classified within products cost of goods sold in the Consolidated Statements of Operations. For each capitalized software product, the annual amortization is equal to the greater of: (i) the amount computed using the ratio that the software product’s current fiscal year gross revenue bears to the total current fiscal year and anticipated future gross revenues for that product or (ii) the amount computed based on straight-line method over the remaining estimated economic life of the product, which is a range between three and eight years. Annually, or more frequent as required by triggering events, an analysis of the net realizable value of the capitalized software is completed and the amount by which unamortized software costs exceeds the net realizable value, if any, is recognized as a charge to income in the period it is determined. See further discussion regarding our capitalized software development costs in Note 5, Advertising and Promotion Expense. We expense advertising and promotion expense as incurred. Advertising and promotion expense was $2.7 million, $2.0 million and $2.7 million in fiscal 2020, 2019 and 2018, respectively Reclassification. Certain prior year balances have been reclassed to conform to the current year presentation. Specifically, we reclassed certain employee benefit obligations from current to non-current liabilities Adopted and Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-03, Codification Improvements to Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) In January 2017, the FASB issued ASU No. 2017-04 , Intangibles- Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases Management continually evaluates the potential impact, if any, of all recent accounting pronouncements on our consolidated financial statements or related disclosures and, if significant, makes the appropriate disclosures required by such new accounting pronouncements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition On April 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Summary of Significant Accounting Policies Disaggregation of Revenue We derive and report our revenue from the sale of products (software licenses, third party hardware and operating systems), support, maintenance and subscription services and professional services. Revenue recognized at a point in time (products) totaled $44.2 million, $39.0 million, and $33.7 million during fiscal 2020, 2019 and 2018. Revenue recognized over time (support, maintenance and subscription services and professional services) totaled $116.5 million, $101.8 million, and $93.7 million during fiscal 2020, 2019 and 2018. 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 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 $37.0 million and $33.1 million during fiscal 2020 and 2019. During fiscal 2020 and 2019, we transferred from contract assets at the beginning of the period, $2.8 million and $4.6 million, respectively, to accounts receivable because the right to the transaction became unconditional. Our arrangements are for a period of one year or less. As a result, unsatisfied performance obligations as of March 31, 2020 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 have elected to take the practical expedient available to 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. For first year support and maintenance service contracts, commission expenses are immaterial and therefore expenses as incurred. Other sales commission expenses are not material or have a period of benefit of one year or less, and are therefore expensed as incurred in line with the practical expedient elected. As part of our 606 transition adjustments, we capitalized $1.9 million of sales incentive costs incurred in prior periods as of April 1, 2018. We had $3.2 million and $3.3 million of capitalized sales incentive costs as of March 31, 2020 and 2019, respectively. These balances are included in other non-current assets on our Consolidated Balance Sheet. During fiscal 2020 and 2019, we expensed $4.7 million and $4.5 million, respectively, of sales commission, which included amortization of capitalized amounts of $1.4 million and $1.1 million, respectively. These expenses are included in operating expenses – sales and marketing in our Consolidated Statement of Operations. All other costs to obtain a contract are not considered incremental and therefore are expensed as incurred. Financial Statement Impact of Adoption on Previously Reported Results We adopted Topic 606 using the modified retrospective method beginning fiscal 2019. The cumulative impact of applying the new guidance to all contracts with customers that were not completed as of April 1, 2018 was recorded as an adjustment to retained earnings as of the adoption date. As a result of applying the modified retrospective method to adopt the new standard, we also impacted accounts receivable, net, contract assets, prepaid expenses and other current assets, other non-current assets, contract liabilities and retained earnings on our Consolidated Balance Sheet as of April 1, 2018. The acceleration of revenue that was deferred under prior guidance as of the adoption date was primarily attributable to the requirement of Topic 606 to allocate the transaction price to the performance obligations in the contract on a relative basis using SSP rather than allocating under the residual method, which allocates the entire arrangement discount to the delivered performance obligations. Due to the Company's full valuation allowance as of the adoption date, there was no tax impact associated with the adoption of Topic 606. We made certain presentation changes to our Consolidated Balance Sheet on April 1, 2018 to comply with Topic 606. Prior to adoption of the new standard, we offset accounts receivable and contract liabilities (previously presented as deferred revenue on our Consolidated Balance Sheet) for unpaid deferred performance obligations included in contract liabilities. Under the new standard, we record accounts receivable and related contract liabilities for non-cancelable contracts with customers when the right to consideration is unconditional. Upon adoption, the right to consideration in exchange for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time were reclassified from accounts receivable to contract assets. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net P roperty and equipment at March 31, 2020 and 2019 is as follows: Year ended March 31, (In thousands) 2020 2019 Furniture and equipment $ 14,358 $ 11,604 Software 17,136 16,427 Leasehold improvements 7,012 6,981 Project expenditures not yet in use 50 1,014 38,556 36,026 Accumulated depreciation and amortization (24,592 ) (20,188 ) Impairments (1,734 ) — Property and equipment, net $ 12,230 $ 15,838 Total depreciation expense on property and equipment was $2.6 million, $2.5 million, and $2.6 million during fiscal 2020, 2019 and 2018, respectively. The Company capitalizes internal-use software, including software used exclusively in providing services or that is only made available to customers as a software service, as property and equipment under ASC 350-40, Internal-Use Software. Total amortization expense on capitalized internal-use software was $2.5 million, $2.5 million and $1.8 million during fiscal 2020, 2019, and 2018, respectively. The global economic impact of the COVID-19 pandemic triggered management to review property and equipment held by the Company for indicators of impairment. The carrying value of our capitalized costs for internal-use software related to our rGuest Seat solution did not exceed the estimated undiscounted cash flows, and utilizing a market approach, was determined to be fully impaired, resulting in $1.7 million of asset impairment charges in the Consolidated Statement of Operations during the fiscal year ended March 31, 2020. Assets under financing leases are included in property and equipment categories above and further disclosed with Note 6. Leases |
Intangible Assets and Software
Intangible Assets and Software Development Costs | 12 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Software Development Costs | 5. Intangible Assets and Software Development Costs The following table summarizes our intangible assets and software development costs at March 31, 2020, and 2019: 2020 2019 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In thousands) amount amortization Impairment amount amount amortization amount Amortized intangible assets: Customer relationships $ 10,775 $ (10,775 ) $ - $ - $ 10,775 $ (10,775 ) $ - Non-competition agreements 2,700 (2,700 ) — — 2,700 (2,700 ) — Developed technology 10,398 (10,398 ) — — 10,398 (10,398 ) — Trade names 230 (230 ) — — 230 (192 ) 38 Patented technology 80 (80 ) — — 80 (80 ) — 24,183 (24,183 ) — — 24,183 (24,145 ) 38 Trade names 8,400 N/A — 8,400 8,400 N/A 8,400 Total intangible assets $ 32,583 $ (24,183 ) $ - $ 8,400 $ 32,583 $ (24,145 ) $ 8,438 (In thousands) Software development costs $ 67,541 $ (45,535 ) $ (22,006 ) $ - $ 67,541 $ (32,974 ) $ 34,567 Indefinite-lived intangible assets, comprised of our purchased trade name InfoGenesis™ as of March 31, 2020 and 2019 are tested for impairment upon identification of impairment indicators or at least annually. An impairment loss is recognized if the carrying amount is greater than fair value. The InfoGenesis™ indefinite-lived purchased trade name impairment testing resulted in a fair value exceeding the carrying amount for the years ending March 31, 2020, 2019 and 2018. Management compares the unamortized capitalized software development costs for each external use product to its net realizable value by analyzing critical inputs such as costs necessary to bring the software to market, costs necessary to maintain the software, life of the software, and market capacity. As of March 31, 2020, management determined the net realizable value of the remaining capitalized software development costs for certain solutions within out rGuest suite of products no longer exceeded their carrying value, and as a result, recorded non-cash impairment charges of $22.0 million. The impact of the COVID-19 pandemic on the hospitality industry resulted in economic conditions which make it difficult to project future sales and revenue accurately for the related rGuest solutions. After evaluating the Company’s strategy for market development and continued costs to support the software, an impairment charge was required. The amount of impairment recognized during the period reduced the carry value of capitalized software development costs to zero with no remaining amortization expense to be recognized in future periods. Amortization expense related to software development costs related to assets to be sold, leased, or otherwise marketed was $12.6 million, $12.6 million and $10.0 million for the fiscal years ended March 31, 2020, 2019 and 2018, respectively. These charges are included as Products cost of goods sold within the Consolidated Statements of Operations. Amortization expense relating to other definite-lived intangible assets was $38,000 for the fiscal year end March 31, 2020 and $46,000 for the fiscal years ended March 31, 2019 and 2018. These charges are classified as operating expenses within the Consolidated Statements of Operations. Capitalized software development costs are carried on our balance sheets at net realizable value, net of accumulated amortization. We did not capitalize any software development costs during fiscal 2020. We capitalized approximately $2.0 million and $8.2 million during fiscal 2019 and 2018, respectively. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases We adopted Topic 842 on April 1, 2019 using the current period adjustment method of adoption to recognize leases with a duration greater than 12 months on the balance sheet. The impact of adoption on April 1, 2019 was recognition of operating lease liabilities of $16.3 million and related Right-of-Use (“ROU”) assets of $13.8 million. Prior period financial statements have not been restated and therefore the comparative amounts are not presented below or on the Consolidated Balance Sheets as of March 31, 2019. For operating leases with a term greater than 12 months, we have recorded the lease liability at the present value of lease payments over the remaining lease term and the related ROU asset. The remaining lease term has been determined for each lease considering factors such as renewal options, termination options, our Company’s historical practices in exercising such options, and current business knowledge which may impact lease related decisions. The majority of our leases are comprised of real estate leases for our respective offices around the globe. Our finance leases consist of office equipment. We have no residual value guarantees or restrictions or covenants imposed by, or associated with our active leases. Since our current leases do not provide an implicit rate of return, our incremental borrowing rates used to determine the value of lease payments in implementation are estimated as of April 1, 2019, based on collateralized rates for a term similar to each remaining lease term. We have elected the package of practical expedients permitted under the transition guidance which includes the ability to carryforward the previously determined lease classification (operating or finance), forgo the assessment whether active contracts contain a lease, and whether capitalized costs associated with a lease meet the definition of “initial direct costs” as defined within Topic 842. In the event that any of our leases contain nonlease components, we have elected the practical expedient to account for each separate lease component and the associated nonlease component(s) as a single lease component. We have also elected the accounting policy to forgo applying the guidance of Topic 842 to short term leases (defined as a term of 12 months or less, without a purchase option which we are reasonably certain to exercise). As of March 31, 2020, we do not have any leases which have not yet commenced. We do not have any related party leases or sublease arrangements. We have variable payments for expenses such as common area maintenance and taxes. We do not have variable payments that are based on an index or rate. As a result, we do not include variable payments in the calculation of the lease liability. Any variable costs are expensed as incurred. The components of lease expenses for the fiscal 2020 period were as follows: Year Ended (in thousands) March 31, 2020 Operating leases expense $ 4,193 Finance lease expense: Amortization of ROU assets 23 Interest on lease liabilities 6 Total finance lease expense 29 Variable lease costs 271 Short term lease expense 88 Total lease expense $ 4,581 Other information related to leases for fiscal 2020 was as follows: Year Ended Supplemental cash flow information March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities (in thousands): Operating cash flows for operating leases $ 4,873 Operating cash flows for finance leases 8 Financing cash flows for finance leases 24 ROU assets obtained in exchange for lease obligations (in thousands): Operating leases $ 2,734 Finance leases 17 Weighted average remaining lease terms Operating leases 5.04 Finance leases 2.16 Weighted average discount rates Operating leases 10.37 % Finance leases 4.38 % The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the Consolidated Balance Sheet as of March 31, 2020: Year ending (in thousands) Operating leases Finance leases 2021 $ 4,927 $ 29 2022 4,207 21 2023 2,855 5 2024 2,685 2 2025 2,083 — Thereafter 3,901 — Total undiscounted future minimum lease payments 20,658 57 Less: difference between undiscounted lease payments and discounted lease liabilities (5,322 ) (8 ) Total lease liabilities $ 15,336 $ 49 As previously disclosed on our March 31, 2019 Form 10-K and under the previous lease accounting standard, future minimum lease payments under non-cancelable leases as of March 31, 2019 were as follows: Year ending (in thousands) Operating leases Finance leases 2020 $ 4,143 $ 27 2021 3,945 23 2022 3,166 15 2023 1,916 — 2024 1,770 — Thereafter 4,497 — Total lease payments 19,437 65 Less: Amounts representing interest — (8 ) Present value of lease liabilities $ 19,437 $ 57 |
Leases | 6. Leases We adopted Topic 842 on April 1, 2019 using the current period adjustment method of adoption to recognize leases with a duration greater than 12 months on the balance sheet. The impact of adoption on April 1, 2019 was recognition of operating lease liabilities of $16.3 million and related Right-of-Use (“ROU”) assets of $13.8 million. Prior period financial statements have not been restated and therefore the comparative amounts are not presented below or on the Consolidated Balance Sheets as of March 31, 2019. For operating leases with a term greater than 12 months, we have recorded the lease liability at the present value of lease payments over the remaining lease term and the related ROU asset. The remaining lease term has been determined for each lease considering factors such as renewal options, termination options, our Company’s historical practices in exercising such options, and current business knowledge which may impact lease related decisions. The majority of our leases are comprised of real estate leases for our respective offices around the globe. Our finance leases consist of office equipment. We have no residual value guarantees or restrictions or covenants imposed by, or associated with our active leases. Since our current leases do not provide an implicit rate of return, our incremental borrowing rates used to determine the value of lease payments in implementation are estimated as of April 1, 2019, based on collateralized rates for a term similar to each remaining lease term. We have elected the package of practical expedients permitted under the transition guidance which includes the ability to carryforward the previously determined lease classification (operating or finance), forgo the assessment whether active contracts contain a lease, and whether capitalized costs associated with a lease meet the definition of “initial direct costs” as defined within Topic 842. In the event that any of our leases contain nonlease components, we have elected the practical expedient to account for each separate lease component and the associated nonlease component(s) as a single lease component. We have also elected the accounting policy to forgo applying the guidance of Topic 842 to short term leases (defined as a term of 12 months or less, without a purchase option which we are reasonably certain to exercise). As of March 31, 2020, we do not have any leases which have not yet commenced. We do not have any related party leases or sublease arrangements. We have variable payments for expenses such as common area maintenance and taxes. We do not have variable payments that are based on an index or rate. As a result, we do not include variable payments in the calculation of the lease liability. Any variable costs are expensed as incurred. The components of lease expenses for the fiscal 2020 period were as follows: Year Ended (in thousands) March 31, 2020 Operating leases expense $ 4,193 Finance lease expense: Amortization of ROU assets 23 Interest on lease liabilities 6 Total finance lease expense 29 Variable lease costs 271 Short term lease expense 88 Total lease expense $ 4,581 Other information related to leases for fiscal 2020 was as follows: Year Ended Supplemental cash flow information March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities (in thousands): Operating cash flows for operating leases $ 4,873 Operating cash flows for finance leases 8 Financing cash flows for finance leases 24 ROU assets obtained in exchange for lease obligations (in thousands): Operating leases $ 2,734 Finance leases 17 Weighted average remaining lease terms Operating leases 5.04 Finance leases 2.16 Weighted average discount rates Operating leases 10.37 % Finance leases 4.38 % The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the Consolidated Balance Sheet as of March 31, 2020: Year ending (in thousands) Operating leases Finance leases 2021 $ 4,927 $ 29 2022 4,207 21 2023 2,855 5 2024 2,685 2 2025 2,083 — Thereafter 3,901 — Total undiscounted future minimum lease payments 20,658 57 Less: difference between undiscounted lease payments and discounted lease liabilities (5,322 ) (8 ) Total lease liabilities $ 15,336 $ 49 As previously disclosed on our March 31, 2019 Form 10-K and under the previous lease accounting standard, future minimum lease payments under non-cancelable leases as of March 31, 2019 were as follows: Year ending (in thousands) Operating leases Finance leases 2020 $ 4,143 $ 27 2021 3,945 23 2022 3,166 15 2023 1,916 — 2024 1,770 — Thereafter 4,497 — Total lease payments 19,437 65 Less: Amounts representing interest — (8 ) Present value of lease liabilities $ 19,437 $ 57 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 7. Supplemental Disclosures of Cash Flow Information Additional information related to the Consolidated Statements of Cash Flows is as follows: Year ended March 31, (In thousands) 2020 2019 2018 Cash (receipts) for interest, net $ (371 ) $ (329 ) $ (88 ) Cash payments (receipts) for income tax, net 694 409 (227 ) Acquisition of property and equipment under lease obligations 17 — 64 Accrued capital expenditures 187 56 83 Accrued capitalized software development costs — — 201 Leasehold improvements acquired under operating lease arrangement — 62 95 |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 12 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | 8. Additional Balance Sheet Information Additional information related to the Consolidated Balance Sheets is as follows: (In thousands) March 31, 2020 March 31, 2019 Accrued liabilities: Salaries, wages, and related benefits $ 6,945 $ 12,443 Other taxes payable 1,649 1,041 Accrued legal settlements — 15 Severance liabilities 32 46 Professional fees 50 67 Deferred rent — 273 Other 357 521 Total $ 9,033 $ 14,406 Other non-current liabilities: Uncertain tax positions $ 1,103 $ 1,083 Deferred rent and asset retirement obligations 170 2,613 Employee benefit obligations 511 486 Other 76 76 Total $ 1,860 $ 4,258 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes For the year ended March 31, loss before income taxes consisted of the following: (In thousands) 2020 2019 2018 (Loss) before income taxes United States $ (36,373 ) $ (13,621 ) $ (11,926 ) Foreign 2,507 678 325 Total loss before income taxes $ (33,866 ) $ (12,943 ) $ (11,601 ) For the year ended March 31, income tax expense (benefit) consisted of the following: (In thousands) 2020 2019 2018 Income tax expense (benefit) Current: Federal $ 59 $ 54 $ 66 State and local 21 (383 ) (446 ) Foreign 463 514 73 Deferred: Federal 11 79 (2,985 ) State and local 7 277 41 Foreign (360 ) (320 ) — Total income tax expense (benefit) $ 201 $ 221 $ (3,251 ) The following table presents the principal components of the difference between the effective tax rate to the U.S. federal statutory income tax rate for the years ended March 31: (In thousands) 2020 2019 2018 Income tax benefit at the US Federal statutory rate $ (7,112 ) $ (2,718 ) $ (3,654 ) Benefit for state taxes (856 ) (304 ) (642 ) Impact of foreign operations (514 ) (310 ) 38 Indefinite life assets 19 130 335 Change in valuation allowance 8,406 3,302 3,328 Change in liability for unrecognized tax benefits 22 (400 ) 40 Impact of Tax Act, net — 226 (3,287 ) Share-based compensation (312 ) 2 476 Global intangible low-taxed income 460 94 — Other 88 199 115 Total income tax expense (benefit) $ 201 $ 221 $ (3,251 ) We have elected to account for global intangible low-taxed income (GILTI) inclusions in the period in which they are incurred. Our tax provision includes a provision for income taxes in certain foreign jurisdictions where subsidiaries are profitable, but only a minimal benefit is reflected related to U.S. and certain foreign tax losses due to the uncertainty of the ultimate realization of future benefits from these losses. The fiscal 2020 tax provision results primarily from foreign tax expense. The fiscal 2020 tax provision differs from the statutory rate primarily due to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, state taxes and other U.S. permanent book to tax differences. The fiscal 2019 tax provision primarily results from foreign tax expense, the reversal of reserves for uncertain tax positions and the completion of our accounting for the Tax Act. The fiscal 2019 effective rate differs from the statutory rate primarily due to the impact of the Tax Act, recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, certain foreign and state tax effects. Deferred tax assets and liabilities as of March 31, are as follows: (In thousands) 2020 2019 Deferred tax assets: Accrued liabilities $ 3,059 $ 3,944 Allowance for doubtful accounts 331 120 Inventory valuation reserve — 41 Federal losses and credit carryforwards 47,218 44,811 Foreign losses and credit carryforwards 1,523 1,146 State losses and credit carryforwards 10,911 9,886 Deferred revenue 582 488 Property and equipment and software amortization 163 — Operating lease liabilities 1,297 — Goodwill and other intangible assets 4,914 — Other 88 65 70,086 60,501 Less: valuation allowance (66,819 ) (57,852 ) Total 3,267 2,649 Deferred tax liabilities: Operating lease right-of-use assets (948 ) — Property and equipment and software amortization — (361 ) Goodwill and other intangible assets (2,426 ) (2,706 ) Other (9 ) — Total (3,383 ) (3,067 ) Total deferred tax liabilities $ (116 ) $ (418 ) At March 31, 2020, we had $199.1 million of federal net operating loss carryforwards that expire, if unused, in fiscal years 2031 to 2038, and $24.7 million of federal net operating loss carryforwards that can be carried forward indefinitely. Our Hong Kong, Malaysia, and Singapore subsidiaries have $0.4 million, $0.1 million, and $0.3 million of net operating loss carryforwards, respectively. The losses for Hong Kong, Malaysia and Singapore can be carried forward indefinitely. At March 31, 2020, our India subsidiary had $0.8 million of minimum alternative tax credits reported as other noncurrent assets on our Consolidated Balance Sheet. Our India subsidiary operates in a “Special Economic Zone (“SEZ”)”. One of the benefits associated with the SEZ is that the India subsidiary is not subject to regular India income taxes during its first 5 years of operations which includes fiscal 2018 through fiscal 2022. The India subsidiary is then subject to 50% of regular India income taxes during the second five years of operations which includes fiscal 2023 through fiscal 2027. The aggregate value of the benefit of the SEZ during the current fiscal year is $0.8 million. At March 31, 2020 we also had $141.6 million of state net operating loss carryforwards that expire, if unused, in fiscal years 2021 through 2040. We recorded valuation allowances related to certain deferred income tax assets due to the uncertainty of the ultimate realization of the future benefits from those assets. At March 31, 2020, the total valuation allowance against deferred tax assets of $66.8 million was comprised of $65.9 million for federal and state deferred tax assets, and $0.9 million associated with deferred tax assets in Hong Kong, Malaysia, Singapore and the Philippines. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some, or all, of the deferred tax assets will not be realized. We have recorded a valuation allowance offsetting substantially all of our deferred tax assets. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected taxable income, and tax planning strategies in making this assessment. In order to fully realize the deferred tax assets, we will need to generate future taxable income before the expiration of the deferred tax assets governed by the tax code. Because of our losses in current and prior periods, management believes that it is more-likely-than-not that we will not realize the benefits of these deductible differences. The amount of the valuation allowance, however, could be reduced in the near term. The exact timing will be based on the level of profitability that we are able to achieve and our visibility into future results. Our recorded tax rate may increase in subsequent periods following a valuation release. Any valuation allowance release will not affect the amount of cash paid for income taxes. The undistributed earnings of our foreign subsidiaries are not subject to U.S. federal and state income taxes unless such earnings are distributed in the form of dividends or otherwise to the extent of current and accumulated earnings and profits. The undistributed earnings of foreign subsidiaries are permanently reinvested and totaled $6.3 million and $3.1 million as of March 31, 2020 and 2019, respectively. We made the determination of permanent reinvestment on the basis of sufficient evidence that demonstrates we will invest the undistributed earnings overseas indefinitely for use in working capital, as well as foreign acquisitions and expansion. The determination of the amount of the unrecognized deferred U.S. income tax liability related to the undistributed earnings is not practicable. We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31: (In thousands) 2020 2019 2018 Balance at April 1 $ 580 $ 687 $ 988 Reductions: Relating to positions taken during prior year — — (300 ) Relating to lapse in statute (5 ) (107 ) (1 ) Balance at March 31 $ 575 $ 580 $ 687 As of March 31, 2020, we had a liability of $0.6 million related to uncertain tax positions, the recognition of which would affect our effective income tax rate. Although the timing and outcome of tax settlements are uncertain, it is reasonably possible that during the next 12 months an immaterial reduction in unrecognized tax benefits may occur as a result of the expiration of various statutes of limitations. We are consistently subject to tax audits; due to the nature of examinations in multiple jurisdictions, changes could occur in the amount of gross unrecognized tax benefits during the next 12 months which cannot be estimated at this time. We recognize interest accrued on any unrecognized tax benefits as a component of income tax expense. Penalties are recognized as a component of general and administrative expenses. We recognized interest and penalty expense of less than $0.1 million for the years ended March 31, 2020, 2019 and 2018. As of March 31, 2020 and 2019, we had approximately $0.5 million and $0.5 million, respectively, of interest and penalties accrued in other non-current liabilities on our Consolidated Balance Sheets. In the U.S. we file consolidated federal and state income tax returns where statutes of limitations generally range from three to five years. Although we have resolved examinations with the IRS through tax year ended March 31, 2010, U.S. federal tax years are open from 2006 forward due to attribute carryforwards. The statute of limitations is open from fiscal year 2013 forward in certain state jurisdictions. We also file income tax returns in international jurisdictions where statutes of limitations generally range from three to seven years. Years beginning after 2009 are open for examination by certain foreign taxing authorities. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) On March 27, 2020, President Trump signed into law the CARES Act. The CARES Act includes provisions addressing the carryback of net operating losses for specific periods, refunds of alternative minimum tax credits, temporary modification to the limitation placed on the tax deductibility of net interest expenses, and technical amendments for qualified improvement property. Additionally, the CARES Act provides, among other provisions, for the deferral of the employer-paid portion of social security taxes through the end of 2020, with 50% of the deferred amount due December 31, 2021 and the remaining 50% due December 31, 2022; the CARES Act also provides for certain employee retention tax credits. As of March 31, 2020, these provisions are expected to provide us with approximately $0.1 million of additional liquidity during the current year due to the ability to accelerate outstanding alternative minimum tax credit refunds. Due to the net loss position of the Company, we do not anticipate impacts from net loss carryback or deductibility provisions. We are currently deferring the employer-paid portion of social security taxes but do not currently anticipate qualifying for employee retention tax credits at this time. Separate from the CARES Act, the IRS extended the dates for estimated tax payments for the first and second calendar quarters of 2020 to July 15, 2020. Further, many states are offering similar deferrals of various classes of tax payments. Due to the net loss position of the Company, we do not anticipate material federal or state tax payment deferrals. Significant uncertainty exists regarding the magnitude and duration of the impact of the COVID-19 pandemic; therefore, we cannot predict at this time the ultimate extent of its impact on our business operations, financial results and resulting effects to income taxes in future periods. See Part II, Item 1A. of this Annual Report for further discussion regarding risks associated with the COVID-19 pandemic. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 10. Employee Benefit Plans Defined Contribution Plans We maintain 401(k) plans for employees located in the United States meeting certain service requirements. Generally, the plans allow eligible employees to contribute a portion of their compensation, and we match 100% of the first 1% of the employee's pre-tax contributions and 50% of the next 5% of the employee's pre-tax contributions. We may also make discretionary contributions each year for the benefit of all eligible employees under the plans. Agilysys matching contributions were $1.8 million, $1.6 million, and $1.7 million in fiscal 2020, 2019, and 2018, respectively. We also maintain defined contribution retirement plans for employees located in the United Kingdom and in the Asia Pacific region in accordance with local statutory requirements and business practices. Defined Benefit Plan We maintain a defined benefit retirement plan (the “Gratuity Plan”) covering eligible employees of our India subsidiary in accordance with local statutory requirements and business practices. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation, or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment with the Company. The Gratuity Plan is unfunded with obligation amounts recorded in the Consolidated Balance Sheets as “Employee benefit obligations” within “Other non-current liabilities.” Endorsement Split-Dollar Life Insurance Agilysys provides certain former executives with life insurance benefits through endorsement split-dollar life insurance arrangements. We entered into agreements with each of the former executives, whereby we must maintain the life insurance policy for a specified amount and split a portion of the policy benefits with their designated beneficiary. Our investment in these corporate-owned life insurance policies were recorded at their cash surrender value, which approximates fair value at the balance sheet date. In the Consolidated Balance Sheets as of March 31, 2020 and 2019, the cash surrender value of $0.9 million for the remaining policies were held in “Other non-current assets,” and the present value of future proceeds owed to those executives' designated beneficiaries of $0.1 million, which approximates fair value, were recorded within "Other non-current liabilities." Changes in the cash surrender value of these policies related to gains and losses incurred on these investments are classified within “Other (income) expenses, net” in the accompanying Consolidated Statements of Operations. We recorded a gain of $14,000, $15,000 and $17,000 in fiscal 2020, 2019, and 2018, respectively, related to the corporate-owned life insurance policies. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Contingencies Agilysys is the subject of various threatened or pending legal actions and contingencies in the normal course of conducting its business. We provide for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on our future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount or timing of the resolution of such matters. While it is not possible to predict with certainty, management believes that the ultimate resolution of such individual or aggregated matters will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows. On April 6, 2012, Ameranth, Inc. filed a complaint against us in the U.S. District Court for the 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. Most of the patents at issue in the case were invalidated by the U.S. Court of Appeals for the Federal Circuit in 2016. Cases against us and our co-defendants remained pending in the District Court with respect to one surviving Ameranth patent. In September 2018, the District Court found that patent invalid, and granted summary judgment in favor of the movant co-defendants. In early 2019, Ameranth appealed the District Court's summary judgment ruling to the U.S. Court of Appeals for the Federal Circuit. In November 2019, the U.S. Court of Appeals for the Federal Circuit affirmed the lower court’s summary judgement with respect to all claims except for two, which were not asserted against Agilysys. Shortly thereafter, Ameranth moved for a rehearing en banc, which was denied in February 2020. Finally, Ameranth filed for writ of certiorari to the United States Supreme Court. The Supreme Court has not yet responded to the writ. We were not a party to the appeal, and it is currently unclear what impact the summary judgment ruling or writ of certiorari may have on our case. Ameranth seeks monetary damages, injunctive relief, costs and attorneys' fees from us. At this time, we are not able to predict the outcome of this lawsuit. However, we dispute the allegations of wrongdoing and are vigorously defending ourselves in this matter. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss per Share | 12. Loss per Share The following data shows the amounts used in computing loss per share and the effect on earnings and the weighted average number of shares of dilutive potential common shares. Year ended March 31, (In thousands, except per share data) 2020 2019 2018 Numerator: Net loss $ (34,067 ) $ (13,164 ) $ (8,350 ) Denominator: Weighted average shares outstanding - basic and diluted 23,233 23,037 22,801 Loss per share - basic and diluted: Net loss per share-basic and diluted $ (1.47 ) $ (0.57 ) $ (0.37 ) Anti-dilutive stock options, SSARs, restricted shares and performance shares 1,510 1,433 756 Basic earnings (loss) per share is computed as net income available to common shareholders divided by the weighted average basic shares outstanding. The outstanding shares used to calculate the weighted average basic shares excludes 208,581, 300,437 and 334,817 of restricted shares and performance shares at March 31, 2020, 2019 and 2018, respectively, as these shares were issued but were not vested and, therefore, not considered outstanding for purposes of computing basic earnings per share at the balance sheet dates. Diluted earnings (loss) per share includes the effect of all potentially dilutive securities on earnings per share. We have stock options, stock-settled appreciation rights ("SSARs"), unvested restricted shares and unvested performance shares that are potentially dilutive securities. When a loss is reported, the denominator of diluted earnings per share cannot be adjusted for the dilutive impact of share-based compensation awards because doing so would be anti-dilutive. In addition, when a net loss is reported, adjusting the denominator of diluted earnings per share would also be anti-dilutive to the loss per share, even if the entity has net income after adjusting for a discontinued operation. Therefore, for all periods presented, basic weighted-average shares outstanding were used in calculating the diluted net loss per share. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Mar. 31, 2020 | |
Share Based Compensation [Abstract] | |
Share-based Compensation | 13. Share-based Compensation We may grant non-qualified stock options, incentive stock options, SSARs, restricted shares, and restricted share units under our shareholder-approved 2016 Stock Incentive Plan (the 2016 Plan) for up to 2.0 million common shares, plus 957,575 common shares, the number of shares that were remaining for grant under the 2011 Stock Incentive Plan (the 2011 Plan) as of the effective date of the 2016 Plan, plus the number of shares remaining for grant under the 2011 Plan that are forfeited, settled in cash, canceled or expired. The maximum aggregate number of restricted shares or restricted share units that may be granted under the 2016 Plan is 1.25 million. We may distribute authorized but unissued shares or treasury shares to satisfy share option and appreciation right exercises or restricted share and performance share awards. For stock options and SSARs, the exercise price must be set at least equal to the closing market price of our common shares on the date of grant. The maximum term of stock option and SSAR awards is seven years from the date of grant. Stock option and SSARs awards vest over a period established by the Compensation Committee of the Board of Directors. SSARs may be granted in conjunction with, or independently from, stock option grants. SSARs granted in connection with a stock option are exercisable only to the extent that the stock option to which it relates is exercisable and the SSARs terminate upon the termination or exercise of the related stock option grants. Restricted shares and restricted share units, whether time-vested or performance-based, may be issued at no cost or at a purchase price that may be below their fair market value, but are subject to forfeiture and restrictions on their sale or other transfer. Performance-based awards may be conditioned upon the attainment of specified performance objectives and other conditions, restrictions, and contingencies. Restricted shares and restricted share units have the right to receive dividends, or dividend equivalents in the case of restricted share units, if any, upon vesting, subject to the same forfeiture provisions that apply to the underlying awards. Subject to certain exceptions set forth in the 2016 Plan, for awards to employees, no performance-based restricted shares or restricted share units shall be based on a restriction period of less than one year, and any time-based restricted shares or restricted share units shall have a minimum restriction period of three years. We record compensation expense related to stock options, SSARs, restricted shares, and performance shares granted to certain employees and non-employee directors based on the fair value of the awards on the grant date. The fair value of restricted share and performance share awards is based on the closing price of our common shares on the grant date. The fair value of stock option and SSAR awards is estimated on the grant date using the Black-Scholes-Merton option pricing model, which includes assumptions regarding the risk-free interest rate, dividend yield, life of the award, and the volatility of our common shares. During fiscal year 2020, we issued 125,000 SSAR awards which are subject to a market condition. The fair value of these awards is estimated using the Lattice option pricing model which utilizes a binary tree and includes multiple assumptions which include volatility and life of the award to determine an appropriate fair value based on the award grant date. The following table summarizes the share-based compensation expense for options, SSARs, restricted and performance awards included in the Consolidated Statements of Operations for fiscal 2020, 2019 and 2018: Year Ended March 31, (In thousands) 2020 2019 2018 Product development 2,241 1,478 1,306 Sales and marketing 321 469 371 General and administrative 2,643 2,429 3,011 Total share-based compensation expense 5,205 4,376 4,688 Stock-Settled Stock Appreciation Rights SSARs are rights granted to an employee to receive value equal to the difference in the price of our common shares on the date of the grant and on the date of exercise. This value is settled only in common shares of Agilysys. We use a Black-Scholes-Merton or a Lattice option pricing model to estimate the fair value of SSARs. The following table summarizes the principal assumptions utilized in valuing SSARs granted in fiscal 2020, 2019 and 2018: 2020 2019 2018 Risk-free interest rate 1.38%-1.74% 2.68 % 1.74%-1.94% Expected life (in years) 4.5-5 5 5 Expected volatility 31.7%-32.42% 32.42 % 32.42% - 32.84% Weighted-average grant date fair value $ 10.01 $ 4.72 $ 3.36 The risk-free interest rate is based on the yield of a zero coupon U.S. Treasury bond whose maturity period approximates the expected life of the SSARs. The expected life is estimated using historical data representing the period of time the awards are expected to be outstanding. The estimated fair value of the SSARs granted is recognized over the vesting period of the awards utilizing the graded vesting method. Under this method, the compensation cost related to unvested amounts begins to be recognized as of the grant date. The following table summarizes the activity during fiscal 2020 for SSARs awarded under the 2016 and 2011 Plans: (In thousands, except share and per share data) Number of Rights Weighted- Average Exercise Price Remaining Contractual Term Aggregate Intrinsic Value (per right) (in years) Outstanding at April 1, 2019 1,016,643 $ 11.22 Granted 691,364 34.72 Exercised (37,506 ) 10.02 Forfeited (15,838 ) 18.09 Cancelled/expired (9,775 ) 10.61 Outstanding at March 31, 2020 1,644,888 $ 21.07 4.9 $ 5,236 Exercisable at March 31, 2020 959,340 $ 11.79 3.9 $ 5,130 Vested and expected to vest at March 31, 2020 1,644,888 $ 21.07 4.9 $ 5,236 The following table presents additional information related to SSARs activity during fiscal 2020, 2019 and 2018: (In thousands) 2020 2019 2018 Compensation expense $ 1,666 $ 943 $ 1,869 Total intrinsic value of SSARs exercised $ 519 $ 907 $ 88 Total fair value of SSARs vesting $ 1,328 $ 1,165 $ 1,325 As of March 31, 2020, total unrecognized share based compensation expense related to non-vested SSARs was $5.6 million, which is expected to be recognized over the weighted-average vesting period of 2.3 years. A total of 21,494 shares, net of 6,712 shares withheld to cover the employee’s minimum applicable income taxes, were issued from treasury shares to settle SSARs exercised during the twelve months ended March 31, 2020. The shares withheld were returned to treasury shares. Restricted Shares We granted shares to certain of our Directors, executives and key employees under the 2016 and 2011 Plans, the vesting of which is service-based. The following table summarizes the activity during the twelve months ended March 31, 2020 for restricted shares awarded under the 2016 and 2011 Plans: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2019 237,146 $ 13.46 Granted 223,404 22.72 Vested (231,677 ) 16.60 Forfeited (50,411 ) 17.34 Outstanding at March 31, 2020 178,462 $ 19.89 The weighted-average grant date fair value of the restricted shares is determined based upon the closing price of our common shares on the grant date. During fiscal 2020, a total of 208,151 shares, net of 46,656 shares withheld from the vested restricted shares to cover the employee's minimum applicable income taxes, were issued from treasury. The shares withheld were returned to treasury shares. The following table presents additional information related to restricted stock activity during fiscal years 2020, 2019, and 2018: (In thousands) 2020 2019 2018 Compensation expense $ 3,385 $ 2,803 $ 2,594 Total fair value of restricted share vesting $ 4,004 $ 4,383 $ 4,315 As of March 31, 2020, total unrecognized share based compensation expense related to non-vested restricted stock was $2.1 million, which is expected to be recognized over a weighted-average vesting period of 1.9 years. We do not include restricted stock in the calculation of earnings per share until the shares are vested. Performance Shares The following table summarizes the activity during fiscal 2020 for performance shares awarded under the 2016 Plan: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2019 63,291 $ 14.22 Granted 30,120 22.41 Vested (23,526 ) 22.67 Forfeited (39,765 ) 14.22 Outstanding at March 31, 2020 30,120 $ 22.41 Based on the performance goals, management estimates a liability of $153,000 to be settled through the vesting of a variable number of the performance shares subsequent to March 31, 2020. As of March 31, 2020, total share based compensation expense related to performance shares has been fully recognized. The following table presents additional information related to performance share activity during fiscal 2020, 2019 and 2018: (In thousands) 2020 2019 2018 Compensation expense $ 153 $ 630 $ 225 Total fair value of performance share vesting $ 513 $ 243 — Once attainment of the performance goals becomes probable, compensation expense related to performance share awards is recognized ratably over the vesting period based upon the closing market price of our common shares on the grant date. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements We estimate the fair value of financial instruments using available market information and generally accepted valuation methodologies. We assess the inputs used to measure fair value using a three-tier hierarchy. The hierarchy indicates the extent to which pricing inputs used in measuring fair value are observable in the market. Level 1 inputs include unadjusted quoted prices for identical assets or liabilities and are the most observable. Level 2 inputs include unadjusted quoted prices for similar assets and liabilities that are either directly or indirectly observable, or other observable inputs such as interest rates, foreign currency exchange rates, commodity rates, and yield curves. Level 3 inputs are not observable in the market and include our own judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs is reflected in the hierarchy assessment disclosed in the tables below. There were no significant transfers between Levels 1, 2, and 3 during the twelve months ended March 31, 2020. The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value: (In thousands) 31-Mar-20 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — non-current $ 936 — — $ 936 (In thousands) 31-Mar-19 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — non-current $ 895 — — $ 895 The recorded value of the corporate-owned life insurance policies is adjusted to the cash surrender value of the policies obtained from the third party life insurance providers, which are not observable in the market, and therefore, are classified within Level 3 of the fair value hierarchy. Changes in the cash surrender value of these policies are recorded within “Other expenses (income), net” in the Consolidated Statements of Operations. The following table presents a summary of changes in the fair value of the corporate-owned life insurance Level 3 asset for the fiscal years ended March 31, 2020 and 2019: March 31, March 31, (In thousands) 2020 2019 Corporate-owned life insurance: Balance on April 1 $ 895 $ 853 Unrealized gain relating to instruments held at reporting date 14 15 Purchases, sales, issuances and settlements, net 27 27 Balance on March 31 $ 936 $ 895 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | 15. Quarterly Results (Unaudited) Because quarterly reporting of per share data is used independently for each reporting period, the sum of per share amounts for the four quarters in the fiscal year will not necessarily equal annual per share amounts. GAAP prohibits retroactive adjustment of quarterly per share amounts so that the sum of those amounts equals amounts for the full year. Occasionally, the timing of large one-time orders, such as those associated with significant remarketed product sales around large customer refresh cycles or significant volume rollouts, creates variability in our quarterly results. Year ended March 31, 2020 First Second Third Fourth (In thousands except per share data) Quarter Quarter Quarter Quarter Year Net revenue $ 38,389 $ 40,722 $ 41,987 $ 39,659 $ 160,757 Gross profit 20,014 20,217 21,064 19,657 80,952 Restructuring, severance and other charges 231 190 11 150 582 Legal settlements, net — (125 ) — — (125 ) Net loss $ (1,575 ) $ (2,918 ) $ (2,582 ) $ (26,992 ) $ (34,067 ) Net loss Per share data-basic and diluted $ (0.07 ) $ (0.13 ) $ (0.11 ) $ (1.16 ) $ (1.47 ) Year ended March 31, 2019 First Second Third Fourth (In thousands except per share data) Quarter Quarter Quarter Quarter Year Net revenue $ 34,007 $ 34,203 $ 36,014 $ 36,618 $ 140,842 Gross profit 17,889 17,749 18,647 19,595 73,880 Restructuring, severance and other charges 440 448 58 222 1,168 Legal settlements 91 35 — 15 141 Net loss $ (1,736 ) $ (3,791 ) $ (4,048 ) $ (3,589 ) $ (13,164 ) Net loss Per share data-basic and diluted $ (0.08 ) $ (0.16 ) $ (0.18 ) $ (0.15 ) $ (0.57 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events COVID-19 has had a significant impact on our business as of and subsequent to our March 31, 2020 fiscal year-end as the travel and hospitality industries including our customers’ businesses suffered an abrupt and steep decline in activity due to property closures, cancelled voyages, cancelled sporting and entertainment events, and many other business operations curtailments. The change in the business environment for our customers resulted in project delays for our professional service teams, our inability to deliver products to closed property locations and a general reduction in sales activity. We have taken actions to mitigate the impact on our business. During the first quarter of our fiscal 2021, we have reduced discretionary costs, implemented a hiring freeze on non-essential positions and reduced payroll and related costs through layoffs, employee furloughs, employee retirement benefit limitations, and salary decreases for executive team members and certain other employees of the Company. The extent COVID-19 will impact our business including operations and financial results cannot be reasonably estimated at this time. Many factors will continue to influence the COVID-19 pandemic’s impact on us including its ultimate severity, future government actions in response to COVID-19, and how quickly and to what extent economic conditions return to levels before COVID-19. In May 2020, the Company announced a $35 million investment from MAK Capital One, LLC (“MAK Capital”), a leading investment management firm who has been a major shareholder of the Company since 2007. MAK Capital will purchase $35 million of convertible preferred stock carrying a 5.25% dividend that will be convertible into shares of the Company’s common stock at a price of $20.1676 per share. The transaction is subject to customary closing conditions and is anticipated to finalize during May 2020. The close of the transaction will add $35 million in preferred stock to the Company’s balance sheet and increase our cash balance by the $35 million investment less estimated closing costs of approximately $1 million. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 17. Related Party Transaction See Note 16. Subsequent Events |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | (In thousands) Balance at beginning of year Charged to costs and expenses Deductions Balance at end of year 2020 Deferred tax valuation allowance $ 57,852 $ 8,967 $ — $ 66,819 Allowance for doubtful accounts $ 788 $ 1,434 $ (588 ) $ 1,634 2019 Deferred tax valuation allowance $ 54,260 $ 3,592 $ — $ 57,852 Allowance for doubtful accounts $ 900 $ 539 $ (651 ) $ 788 2018 Deferred tax valuation allowance $ 80,013 $ (25,753 ) $ — $ 54,260 Allowance for doubtful accounts $ 509 $ 1,063 $ (672 ) $ 900 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation. The consolidated financial statements include the accounts of Agilysys, Inc. and subsidiaries. Investments in affiliated companies are accounted for by the equity or cost method, as appropriate. All inter-company accounts have been eliminated. |
Use of estimates | Use of estimates. Preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. In particular, the economic disruption related to the COVID-19 pandemic had a material adverse impact on our results for the year ended March 31, 2020, and we expect it to continue to have a material adverse impact on our results. As such, this annual period, as well as upcoming interim periods, are unlikely to be comparable to past performance or indicative of future performance. |
Cash and cash equivalents | Cash and cash equivalents. We consider all highly liquid investments purchased with an original maturity from date of acquisition of three months or less to be cash equivalents. Other highly liquid investments considered cash equivalents with no established maturity date are fully redeemable on demand (without penalty) with settlement of principal and accrued interest on the following business day after instruction to redeem. Such investments are readily convertible to cash with no penalty and can include certificates of deposit, commercial paper, treasury bills, money market funds and other investments. |
Allowance for doubtful accounts | Allowance for doubtful accounts. We maintain allowances for doubtful accounts for estimated losses resulting from the inability or unwillingness of our customers to make required payments. These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as historic trends of the entire customer pool. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. To mitigate this credit risk we perform periodic credit evaluations of our customers. |
Customer credit allowance | Customer credit allowance . We maintain allowances for estimated customer credits. Credits are typically due to the timing or amount of customer invoices processed for specific services, including professional and subscription, and maintenance coverage. In many cases, there has not been clear or timely communication of the need to adjust coverage or service at a location in advance of when we invoice for the associated coverage or service. We will issue a credit after agreeing to the service or coverage adjustment as requested by the customer within the terms of our contract. |
Inventories | Inventories. Our inventories are comprised of finished goods. Inventories are stated at the lower of cost or net realizable value, net of related reserves. The cost of inventory is computed using a weighted-average method. Our inventory is monitored to ensure appropriate valuation. Adjustments of inventories to the lower of cost or net realizable value, if necessary, are based upon contractual provisions such as turnover and assumptions about future demand and market conditions. If assumptions about future demand change and/or actual market conditions are less favorable than those projected by management, additional adjustments to inventory valuations may be required. We provide a reserve for obsolescence, which is calculated based on several factors, including an analysis of historical sales of products and the age of the inventory. Actual amounts could be different from those estimated. |
Leases | Leases. We determine if an arrangement is or contains a lease at inception. Operating leases are presented as Right-of-Use (“ROU”) assets and the corresponding lease liabilities are included in operating lease liabilities – current and operating lease liabilities – non-current on our Consolidated Balance Sheet. Finance leases are included in property and equipment, net and corresponding liabilities are included in finance lease obligations – current and non-current on our Consolidated Balance Sheet. ROU assets represent our right to use the underlying asset, and lease liabilities represent our obligation for lease payments in exchange for the ability to use the asset for the duration of the lease term. ROU assets and lease liabilities are recognized at commencement date and determined using the present value of the remaining lease payments over the lease term. We use an incremental borrowing rate based on estimated rate of interest for collateralized borrowing since our leases do not include an implicit interest rate. The estimated incremental borrowing rate considers market data, actual lease economic environment, and actual lease term at commencement date. The lease term may include options to extend when it is reasonably certain that we will exercise that option. ROU assets include lease payments made in advance, and excludes any incentives received or initial direct costs incurred. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components which we account for as a single lease component. We also have leases which include variable lease payments, which are expensed as incurred. Our variable lease payments are not based on an index or rate and therefore are excluded from the calculation of lease liabilities. We have elected to not recognize short term leases that have a term of twelve months or less as ROU assets or lease liabilities. Our short-term leases are not material and do not have a material impact on our ROU assets or lease liabilities. Additionally, we do not have any covenants, residual value guarantees, or related party transactions associated with our lease agreements. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets. Goodwill represents the excess purchase price paid over the fair value of the net assets of acquired companies. The carrying amount of goodwill was $19.6 million as of March 31, 2020 and 2019. Goodwill is tested for impairment on an annual basis, or in interim periods if indicators of potential impairment exist. The Company evaluates whether goodwill is impaired by comparing its market capitalization based on its closing stock price (Level 1 input) to the book value of its equity on the annual evaluation date. Based on testing performed, the Company concluded that no impairment of its goodwill has occurred for the years ended March 31, 2020, 2019 and 2018. The Company is also required to compare the fair values of other indefinite-lived intangible assets to their carrying amounts at least annually, or when current events and circumstances require an interim assessment. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized. |
Intangible assets | Intangible assets. Purchased intangible assets with finite lives are primarily amortized using the straight-line method over the estimated economic lives of the assets. Our finite-lived intangible assets are amortized over periods between two and eight years. Customer relationships are amortized over estimated useful lives between two and seven years; non-competition agreements are amortized over estimated useful lives between two and eight years; developed technology is amortized over estimated useful lives between three and eight years; supplier relationships are amortized over estimated useful lives between two and eight years. |
Long-lived assets | Long-lived assets. Property and equipment are recorded at cost. Major renewals and improvements are capitalized. Minor replacements, maintenance, repairs, and reengineering costs are expensed as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is recognized. Depreciation and amortization are provided in amounts sufficient to amortize the cost of the assets, including assets recorded under finance leases, which make up less than one percent of total assets, over their estimated useful lives using the straight-line method. The estimated useful lives for depreciation and amortization are as follows: buildings and building improvements - 7 to 30 years; furniture - 7 to 10 years; equipment - 3 to 10 years; software - 3 to 10 years; and leasehold improvements over the shorter of the economic life or the lease term. Internal use software costs are expensed or capitalized depending on the project stage. Amounts capitalized are amortized over the estimated useful lives of the software, ranging from 3 to 10 years, beginning with the project's completion. Depreciation for capitalized project expenditures does not begin until the underlying project is completed. We evaluate the recoverability of our long-lived assets whenever changes in circumstances or events may indicate that the carrying amounts may not be recoverable. An impairment loss is recognized in the event the carrying value of the assets exceeds the future undiscounted cash flows attributable to such assets. Our long-lived assets and impairments considerations are discussed further in Note 4, Property and Equipment, net. |
Foreign currency translation | Foreign currency translation. The financial statements of our foreign operations are translated into U.S. dollars for financial reporting purposes. The assets and liabilities of foreign operations whose functional currencies are not in U.S. dollars are translated at the period-end exchange rates, while revenue and expenses are translated at weighted-average exchange rates during the fiscal year. The cumulative translation effects are reflected as a component of “Accumulated other comprehensive loss” within shareholders' equity in the Consolidated Balance Sheets. Gains and losses on monetary transactions denominated in other than the functional currency of an operation are reflected within “Other (income) expenses, net” in the Consolidated Statements of Operations. Foreign currency gains and losses from changes in exchange rates have not been material to our consolidated operating results. |
Revenue recognition | Revenue recognition. We derive revenue from the sale of products (i.e., software, third party hardware and operating systems), support, maintenance and subscription services and professional services. For the fiscal years 2020, 2019 and 2018, revenue from international operations was 9%, 9% and 8%, respectively of total revenue. Our customer base is highly fragmented. On April 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), using the modified retrospective method applied to those contracts that were not completed as of the adoption date. Results for reporting periods beginning after the adoption date are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under prior guidance. Revenue recognition under Topic 606 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 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. Revenue for hardware sales is recognized when the product is shipped to the customer and when obligations that affect the customer's final acceptance of the arrangement have been fulfilled. 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. Support and maintenance revenue is derived from providing telephone and on-line technical support services, bug fixes, and unspecified software updates and upgrades to customers on a when-and-if-available basis. 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 support and maintenance services as a single performance obligation recognized over the term of the maintenance agreement. 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. 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, and any hosting 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. Professional services revenues primarily consist of fees for consulting, 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. |
Comprehensive (loss) income | Comprehensive (loss) income. Comprehensive (loss) income is the total of net (loss) income, as currently reported under GAAP, plus other comprehensive (loss) income. Other comprehensive (loss) income considers the effects of additional transactions and economic events that are not required to be recorded in determining net (loss) income, but rather are reported as a separate statement of comprehensive (loss) income. |
Fair value measurements | Fair value measurements . We measure the fair value of financial assets and liabilities on a recurring or non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. In determining fair value of financial assets and liabilities, we use various valuation techniques. Additional information regarding fair value measurements is provided in Note 14, . |
Investments in corporate-owned life insurance policies | Investments in corporate-owned life insurance policies. Agilysys invests in corporate-owned life insurance policies, for which some are endorsement split-dollar life insurance arrangements. We entered into agreements with certain former executives, whereby we must maintain the life insurance policy for a specified amount and split a portion of the policy benefits with their respective designated beneficiary. Our investment in these corporate-owned life insurance policies were recorded at their cash surrender value, which approximates fair value at the balance sheet date. In the Consolidated Balance Sheets at the balance sheet date, the cash surrender value of $0.9 million for the remaining policies were held in “Other non-current assets,” and the present value of future proceeds owed to those executives' designated beneficiary of $0.1 million, which approximates fair value, were recorded within "Other non-current liabilities." Additional information regarding the investments in corporate-owned life insurance policies is provided in Note 10, . |
Income Taxes | Income Taxes. Income tax expense includes U.S. and foreign income taxes and is based on reported income before income taxes. We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities are determined based on the enacted tax rates expected to apply in the periods in which the deferred tax assets or liabilities are anticipated to be settled or realized. We regularly review our deferred tax assets for recoverability and establish a valuation allowance if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The determination as to whether a deferred tax asset will be realized is made on a jurisdictional basis and is based on the evaluation of positive and negative evidence. This evidence includes historical taxable income, projected future taxable income, the expected timing of the reversal of existing temporary differences and the implementation of tax planning strategies. We recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from uncertain tax positions are measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. No tax benefits are recognized for positions that do not meet this threshold. Interest related to uncertain tax positions is recognized as part of the provision for income taxes and is accrued beginning in the period that such interest would be applicable under relevant tax law until such time that the related tax benefits are recognized. Our income taxes are described further in Note 9, Income Taxes |
Capitalized Software Development Costs | Capitalized Software Development Costs. The capitalization of software development cost for external use begins when a product’s technological feasibility has been established. Capitalization ends when the resulting product is available for general market release. Amortization of the capitalized software is classified within products cost of goods sold in the Consolidated Statements of Operations. For each capitalized software product, the annual amortization is equal to the greater of: (i) the amount computed using the ratio that the software product’s current fiscal year gross revenue bears to the total current fiscal year and anticipated future gross revenues for that product or (ii) the amount computed based on straight-line method over the remaining estimated economic life of the product, which is a range between three and eight years. Annually, or more frequent as required by triggering events, an analysis of the net realizable value of the capitalized software is completed and the amount by which unamortized software costs exceeds the net realizable value, if any, is recognized as a charge to income in the period it is determined. See further discussion regarding our capitalized software development costs in Note 5, |
Advertising and Promotion Expense | Advertising and Promotion Expense. We expense advertising and promotion expense as incurred. Advertising and promotion expense was $2.7 million, $2.0 million and $2.7 million in fiscal 2020, 2019 and 2018, respectively |
Reclassification | Reclassification. Certain prior year balances have been reclassed to conform to the current year presentation. Specifically, we reclassed certain employee benefit obligations from current to non-current liabilities |
Adopted and Recently Issued Accounting Pronouncements | Adopted and Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-03, Codification Improvements to Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) In January 2017, the FASB issued ASU No. 2017-04 , Intangibles- Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases Management continually evaluates the potential impact, if any, of all recent accounting pronouncements on our consolidated financial statements or related disclosures and, if significant, makes the appropriate disclosures required by such new accounting pronouncements. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | P roperty and equipment at March 31, 2020 and 2019 is as follows: Year ended March 31, (In thousands) 2020 2019 Furniture and equipment $ 14,358 $ 11,604 Software 17,136 16,427 Leasehold improvements 7,012 6,981 Project expenditures not yet in use 50 1,014 38,556 36,026 Accumulated depreciation and amortization (24,592 ) (20,188 ) Impairments (1,734 ) — Property and equipment, net $ 12,230 $ 15,838 |
Intangible Assets and Softwar_2
Intangible Assets and Software Development Costs (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The following table summarizes our intangible assets and software development costs at March 31, 2020, and 2019: 2020 2019 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In thousands) amount amortization Impairment amount amount amortization amount Amortized intangible assets: Customer relationships $ 10,775 $ (10,775 ) $ - $ - $ 10,775 $ (10,775 ) $ - Non-competition agreements 2,700 (2,700 ) — — 2,700 (2,700 ) — Developed technology 10,398 (10,398 ) — — 10,398 (10,398 ) — Trade names 230 (230 ) — — 230 (192 ) 38 Patented technology 80 (80 ) — — 80 (80 ) — 24,183 (24,183 ) — — 24,183 (24,145 ) 38 Trade names 8,400 N/A — 8,400 8,400 N/A 8,400 Total intangible assets $ 32,583 $ (24,183 ) $ - $ 8,400 $ 32,583 $ (24,145 ) $ 8,438 (In thousands) Software development costs $ 67,541 $ (45,535 ) $ (22,006 ) $ - $ 67,541 $ (32,974 ) $ 34,567 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of lease expenses and other information | The components of lease expenses for the fiscal 2020 period were as follows: Year Ended (in thousands) March 31, 2020 Operating leases expense $ 4,193 Finance lease expense: Amortization of ROU assets 23 Interest on lease liabilities 6 Total finance lease expense 29 Variable lease costs 271 Short term lease expense 88 Total lease expense $ 4,581 Other information related to leases for fiscal 2020 was as follows: Year Ended Supplemental cash flow information March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities (in thousands): Operating cash flows for operating leases $ 4,873 Operating cash flows for finance leases 8 Financing cash flows for finance leases 24 ROU assets obtained in exchange for lease obligations (in thousands): Operating leases $ 2,734 Finance leases 17 Weighted average remaining lease terms Operating leases 5.04 Finance leases 2.16 Weighted average discount rates Operating leases 10.37 % Finance leases 4.38 % |
Schedule of future minimum lease payments, finance leases | The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the Consolidated Balance Sheet as of March 31, 2020: Year ending (in thousands) Operating leases Finance leases 2021 $ 4,927 $ 29 2022 4,207 21 2023 2,855 5 2024 2,685 2 2025 2,083 — Thereafter 3,901 — Total undiscounted future minimum lease payments 20,658 57 Less: difference between undiscounted lease payments and discounted lease liabilities (5,322 ) (8 ) Total lease liabilities $ 15,336 $ 49 |
Schedule of future minimum lease payments, operating leases | The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the Consolidated Balance Sheet as of March 31, 2020: Year ending (in thousands) Operating leases Finance leases 2021 $ 4,927 $ 29 2022 4,207 21 2023 2,855 5 2024 2,685 2 2025 2,083 — Thereafter 3,901 — Total undiscounted future minimum lease payments 20,658 57 Less: difference between undiscounted lease payments and discounted lease liabilities (5,322 ) (8 ) Total lease liabilities $ 15,336 $ 49 |
Schedule of future minimum lease payments, finance leases, under previous lease accounting standard | As previously disclosed on our March 31, 2019 Form 10-K and under the previous lease accounting standard, future minimum lease payments under non-cancelable leases as of March 31, 2019 were as follows: Year ending (in thousands) Operating leases Finance leases 2020 $ 4,143 $ 27 2021 3,945 23 2022 3,166 15 2023 1,916 — 2024 1,770 — Thereafter 4,497 — Total lease payments 19,437 65 Less: Amounts representing interest — (8 ) Present value of lease liabilities $ 19,437 $ 57 |
Schedule of future minimum lease payments, operating leases, under previous lease accounting standard | As previously disclosed on our March 31, 2019 Form 10-K and under the previous lease accounting standard, future minimum lease payments under non-cancelable leases as of March 31, 2019 were as follows: Year ending (in thousands) Operating leases Finance leases 2020 $ 4,143 $ 27 2021 3,945 23 2022 3,166 15 2023 1,916 — 2024 1,770 — Thereafter 4,497 — Total lease payments 19,437 65 Less: Amounts representing interest — (8 ) Present value of lease liabilities $ 19,437 $ 57 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Additional information related to the Consolidated Statements of Cash Flows is as follows: Year ended March 31, (In thousands) 2020 2019 2018 Cash (receipts) for interest, net $ (371 ) $ (329 ) $ (88 ) Cash payments (receipts) for income tax, net 694 409 (227 ) Acquisition of property and equipment under lease obligations 17 — 64 Accrued capital expenditures 187 56 83 Accrued capitalized software development costs — — 201 Leasehold improvements acquired under operating lease arrangement — 62 95 |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Additional information related to the Condensed Consolidated Balance Sheets | Additional information related to the Consolidated Balance Sheets is as follows: (In thousands) March 31, 2020 March 31, 2019 Accrued liabilities: Salaries, wages, and related benefits $ 6,945 $ 12,443 Other taxes payable 1,649 1,041 Accrued legal settlements — 15 Severance liabilities 32 46 Professional fees 50 67 Deferred rent — 273 Other 357 521 Total $ 9,033 $ 14,406 Other non-current liabilities: Uncertain tax positions $ 1,103 $ 1,083 Deferred rent and asset retirement obligations 170 2,613 Employee benefit obligations 511 486 Other 76 76 Total $ 1,860 $ 4,258 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income from continuing operations before income taxes | For the year ended March 31, loss before income taxes consisted of the following: (In thousands) 2020 2019 2018 (Loss) before income taxes United States $ (36,373 ) $ (13,621 ) $ (11,926 ) Foreign 2,507 678 325 Total loss before income taxes $ (33,866 ) $ (12,943 ) $ (11,601 ) |
Schedule of income tax (benefit) expense | For the year ended March 31, income tax expense (benefit) consisted of the following: (In thousands) 2020 2019 2018 Income tax expense (benefit) Current: Federal $ 59 $ 54 $ 66 State and local 21 (383 ) (446 ) Foreign 463 514 73 Deferred: Federal 11 79 (2,985 ) State and local 7 277 41 Foreign (360 ) (320 ) — Total income tax expense (benefit) $ 201 $ 221 $ (3,251 ) |
Schedule of effective income tax rate reconciliation | The following table presents the principal components of the difference between the effective tax rate to the U.S. federal statutory income tax rate for the years ended March 31: (In thousands) 2020 2019 2018 Income tax benefit at the US Federal statutory rate $ (7,112 ) $ (2,718 ) $ (3,654 ) Benefit for state taxes (856 ) (304 ) (642 ) Impact of foreign operations (514 ) (310 ) 38 Indefinite life assets 19 130 335 Change in valuation allowance 8,406 3,302 3,328 Change in liability for unrecognized tax benefits 22 (400 ) 40 Impact of Tax Act, net — 226 (3,287 ) Share-based compensation (312 ) 2 476 Global intangible low-taxed income 460 94 — Other 88 199 115 Total income tax expense (benefit) $ 201 $ 221 $ (3,251 ) |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities as of March 31, are as follows: (In thousands) 2020 2019 Deferred tax assets: Accrued liabilities $ 3,059 $ 3,944 Allowance for doubtful accounts 331 120 Inventory valuation reserve — 41 Federal losses and credit carryforwards 47,218 44,811 Foreign losses and credit carryforwards 1,523 1,146 State losses and credit carryforwards 10,911 9,886 Deferred revenue 582 488 Property and equipment and software amortization 163 — Operating lease liabilities 1,297 — Goodwill and other intangible assets 4,914 — Other 88 65 70,086 60,501 Less: valuation allowance (66,819 ) (57,852 ) Total 3,267 2,649 Deferred tax liabilities: Operating lease right-of-use assets (948 ) — Property and equipment and software amortization — (361 ) Goodwill and other intangible assets (2,426 ) (2,706 ) Other (9 ) — Total (3,383 ) (3,067 ) Total deferred tax liabilities $ (116 ) $ (418 ) |
Schedule of unrecognized tax benefits rollforward | We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31: (In thousands) 2020 2019 2018 Balance at April 1 $ 580 $ 687 $ 988 Reductions: Relating to positions taken during prior year — — (300 ) Relating to lapse in statute (5 ) (107 ) (1 ) Balance at March 31 $ 575 $ 580 $ 687 |
Loss per Share (Tables)
Loss per Share (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computing (loss) earnings per share and the effect on income and the weighted average number of dilutive potential common shares | The following data shows the amounts used in computing loss per share and the effect on earnings and the weighted average number of shares of dilutive potential common shares. Year ended March 31, (In thousands, except per share data) 2020 2019 2018 Numerator: Net loss $ (34,067 ) $ (13,164 ) $ (8,350 ) Denominator: Weighted average shares outstanding - basic and diluted 23,233 23,037 22,801 Loss per share - basic and diluted: Net loss per share-basic and diluted $ (1.47 ) $ (0.57 ) $ (0.37 ) Anti-dilutive stock options, SSARs, restricted shares and performance shares 1,510 1,433 756 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Share Based Compensation [Abstract] | |
Summary of share-based compensation expense for options | The following table summarizes the share-based compensation expense for options, SSARs, restricted and performance awards included in the Consolidated Statements of Operations for fiscal 2020, 2019 and 2018: Year Ended March 31, (In thousands) 2020 2019 2018 Product development 2,241 1,478 1,306 Sales and marketing 321 469 371 General and administrative 2,643 2,429 3,011 Total share-based compensation expense 5,205 4,376 4,688 |
Schedule of principal assumptions utilized in valuing SSARs | We use a Black-Scholes-Merton or a Lattice option pricing model to estimate the fair value of SSARs. The following table summarizes the principal assumptions utilized in valuing SSARs granted in fiscal 2020, 2019 and 2018: 2020 2019 2018 Risk-free interest rate 1.38%-1.74% 2.68 % 1.74%-1.94% Expected life (in years) 4.5-5 5 5 Expected volatility 31.7%-32.42% 32.42 % 32.42% - 32.84% Weighted-average grant date fair value $ 10.01 $ 4.72 $ 3.36 |
Activity related SSARs award | The following table summarizes the activity during fiscal 2020 for SSARs awarded under the 2016 and 2011 Plans: (In thousands, except share and per share data) Number of Rights Weighted- Average Exercise Price Remaining Contractual Term Aggregate Intrinsic Value (per right) (in years) Outstanding at April 1, 2019 1,016,643 $ 11.22 Granted 691,364 34.72 Exercised (37,506 ) 10.02 Forfeited (15,838 ) 18.09 Cancelled/expired (9,775 ) 10.61 Outstanding at March 31, 2020 1,644,888 $ 21.07 4.9 $ 5,236 Exercisable at March 31, 2020 959,340 $ 11.79 3.9 $ 5,130 Vested and expected to vest at March 31, 2020 1,644,888 $ 21.07 4.9 $ 5,236 The following table presents additional information related to SSARs activity during fiscal 2020, 2019 and 2018: (In thousands) 2020 2019 2018 Compensation expense $ 1,666 $ 943 $ 1,869 Total intrinsic value of SSARs exercised $ 519 $ 907 $ 88 Total fair value of SSARs vesting $ 1,328 $ 1,165 $ 1,325 |
Activity related to restricted shares awarded by the Company | The following table summarizes the activity during the twelve months ended March 31, 2020 for restricted shares awarded under the 2016 and 2011 Plans: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2019 237,146 $ 13.46 Granted 223,404 22.72 Vested (231,677 ) 16.60 Forfeited (50,411 ) 17.34 Outstanding at March 31, 2020 178,462 $ 19.89 |
Restricted stock award activity | The following table presents additional information related to restricted stock activity during fiscal years 2020, 2019, and 2018: (In thousands) 2020 2019 2018 Compensation expense $ 3,385 $ 2,803 $ 2,594 Total fair value of restricted share vesting $ 4,004 $ 4,383 $ 4,315 |
Performance shares awarded | The following table summarizes the activity during fiscal 2020 for performance shares awarded under the 2016 Plan: Number of Shares Weighted- Average Grant- Date Fair Value (per share) Outstanding at April 1, 2019 63,291 $ 14.22 Granted 30,120 22.41 Vested (23,526 ) 22.67 Forfeited (39,765 ) 14.22 Outstanding at March 31, 2020 30,120 $ 22.41 |
Schedule of additional information related to performance share activity | The following table presents additional information related to performance share activity during fiscal 2020, 2019 and 2018: (In thousands) 2020 2019 2018 Compensation expense $ 153 $ 630 $ 225 Total fair value of performance share vesting $ 513 $ 243 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value: (In thousands) 31-Mar-20 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — non-current $ 936 — — $ 936 (In thousands) 31-Mar-19 (Level 1) (Level 2) (Level 3) Assets: Corporate-owned life insurance — non-current $ 895 — — $ 895 |
Summary of changes in the fair value of the corporate-owned life insurance Level 3 assets and liabilities | The following table presents a summary of changes in the fair value of the corporate-owned life insurance Level 3 asset for the fiscal years ended March 31, 2020 and 2019: March 31, March 31, (In thousands) 2020 2019 Corporate-owned life insurance: Balance on April 1 $ 895 $ 853 Unrealized gain relating to instruments held at reporting date 14 15 Purchases, sales, issuances and settlements, net 27 27 Balance on March 31 $ 936 $ 895 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Occasionally, the timing of large one-time orders, such as those associated with significant remarketed product sales around large customer refresh cycles or significant volume rollouts, creates variability in our quarterly results. Year ended March 31, 2020 First Second Third Fourth (In thousands except per share data) Quarter Quarter Quarter Quarter Year Net revenue $ 38,389 $ 40,722 $ 41,987 $ 39,659 $ 160,757 Gross profit 20,014 20,217 21,064 19,657 80,952 Restructuring, severance and other charges 231 190 11 150 582 Legal settlements, net — (125 ) — — (125 ) Net loss $ (1,575 ) $ (2,918 ) $ (2,582 ) $ (26,992 ) $ (34,067 ) Net loss Per share data-basic and diluted $ (0.07 ) $ (0.13 ) $ (0.11 ) $ (1.16 ) $ (1.47 ) Year ended March 31, 2019 First Second Third Fourth (In thousands except per share data) Quarter Quarter Quarter Quarter Year Net revenue $ 34,007 $ 34,203 $ 36,014 $ 36,618 $ 140,842 Gross profit 17,889 17,749 18,647 19,595 73,880 Restructuring, severance and other charges 440 448 58 222 1,168 Legal settlements 91 35 — 15 141 Net loss $ (1,736 ) $ (3,791 ) $ (4,048 ) $ (3,589 ) $ (13,164 ) Net loss Per share data-basic and diluted $ (0.08 ) $ (0.16 ) $ (0.18 ) $ (0.15 ) $ (0.57 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Textual) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Significant Accounting Policies [Line Items] | |||
Goodwill | $ 19,622,000 | $ 19,622,000 | |
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Capital lease assets as a percentage of total assets | 1.00% | ||
Revenues from international operations | 9.00% | 9.00% | 8.00% |
Aggregate cash surrender value of underlying life insurance, net of policy loans | $ 900,000 | $ 900,000 | |
Present value of future proceeds to be received under corporate life insurance policies, liability | 100,000 | 100,000 | |
Marketing and advertising expense | $ 2,700,000 | $ 2,000,000 | $ 2,700,000 |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 2 years | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Minimum [Member] | Furniture [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Minimum [Member] | Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum [Member] | Software and Software Development Costs [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum [Member] | Customer Relationships [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 2 years | ||
Minimum [Member] | Non-competition Agreements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 2 years | ||
Minimum [Member] | Developed Technology Rights [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 3 years | ||
Minimum [Member] | Supplier Relationships [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 2 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 8 years | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 30 years | ||
Maximum [Member] | Furniture [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum [Member] | Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum [Member] | Software and Software Development Costs [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum [Member] | Customer Relationships [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 7 years | ||
Maximum [Member] | Non-competition Agreements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 8 years | ||
Maximum [Member] | Developed Technology Rights [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 8 years | ||
Maximum [Member] | Supplier Relationships [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 8 years |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||||||||||
Total net revenue | $ 39,659 | $ 41,987 | $ 40,722 | $ 38,389 | $ 36,618 | $ 36,014 | $ 34,203 | $ 34,007 | $ 160,757 | $ 140,842 | $ 127,360 | |
Revenue recognized | 37,000 | 33,100 | ||||||||||
Transfers to accounts receivable | 2,800 | 4,600 | ||||||||||
Capitalized contract cost, net | $ 3,200 | $ 3,300 | 3,200 | 3,300 | $ 1,900 | |||||||
Sales commissions and fees | 4,700 | 4,500 | ||||||||||
Capitalized contract cost, amortization | 1,400 | 1,100 | ||||||||||
Products [Member] | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Total net revenue | 44,230 | 39,003 | 33,699 | |||||||||
Support, Maintenance, Subscription Services, and Professional Services [Member] | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Total net revenue | $ 116,500 | $ 101,800 | $ 93,700 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 38,556 | $ 36,026 |
Accumulated depreciation and amortization | (24,592) | (20,188) |
Impairments | (1,734) | |
Property and equipment, net | 12,230 | 15,838 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,358 | 11,604 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,136 | 16,427 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,012 | 6,981 |
Project expenditures not yet in use [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 50 | $ 1,014 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, including accelerated depreciation related to restructuring reserve | $ 2,600 | $ 2,500 | $ 2,600 |
Asset impairment charges | 23,740 | ||
Purchased for Internal-Use Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Amortization of capitalized software | 2,500 | $ 2,500 | $ 1,800 |
Purchased for Internal-Use Software [Member] | COVID-19 [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $ 1,700 |
Intangible Assets and Softwar_3
Intangible Assets and Software Development Costs - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 24,183 | $ 24,183 |
Accumulated amortization | (24,183) | (24,145) |
Net carrying amount | 38 | |
Total intangible assets, gross carrying amount | 32,583 | 32,583 |
Total intangible assets, accumulated amortization | (24,183) | (24,145) |
Intangible assets, net | 8,400 | 8,438 |
Finite lived software development costs gross | 67,541 | 67,541 |
Finite lived software development costs accumulated amortization | (45,535) | (32,974) |
Finite lived software development costs accumulated impairment | (22,006) | |
Finite lived software development costs net | 34,567 | |
Trade Names [Member] | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount, excluding accumulated impairment | 230 | 230 |
Accumulated amortization, excluding accumulated impairment | (230) | (192) |
Net carrying amount, excluding accumulated impairment | 38 | |
Gross carrying amount, excluding accumulated impairment | 8,400 | 8,400 |
Carrying amount, excluding accumulated impairment | 8,400 | 8,400 |
Customer Relationships [Member] | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount, excluding accumulated impairment | 10,775 | 10,775 |
Accumulated amortization, excluding accumulated impairment | (10,775) | (10,775) |
Non-competition Agreements [Member] | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount, excluding accumulated impairment | 2,700 | 2,700 |
Accumulated amortization, excluding accumulated impairment | (2,700) | (2,700) |
Developed Technology Rights [Member] | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount, excluding accumulated impairment | 10,398 | 10,398 |
Accumulated amortization, excluding accumulated impairment | (10,398) | (10,398) |
Patented Technology [Member] | ||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount, excluding accumulated impairment | 80 | 80 |
Accumulated amortization, excluding accumulated impairment | $ (80) | $ (80) |
Intangible Assets and Softwar_4
Intangible Assets and Software Development Costs (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | |||
Non-cash impairment charge | $ 22,000 | ||
Amortization of developed technology | 12,561 | $ 12,602 | $ 10,016 |
Amortization of intangibles | 2,541 | 2,567 | 1,879 |
Capitalized software development costs | 2,000 | 8,200 | |
Developed Technology Internal [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 38,000 | $ 46,000 | $ 46,000 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2020 | Apr. 01, 2019 |
Leases [Abstract] | ||
Operating lease liability | $ 15,336 | $ 16,300 |
Operating lease right-of-use assets | $ 13,829 | $ 13,800 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating leases expense | $ 4,193 |
Amortization of ROU assets | 23 |
Interest on lease liabilities | 6 |
Total finance lease expense | 29 |
Variable lease costs | 271 |
Short term lease expense | 88 |
Total lease expense | $ 4,581 |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows for operating leases | $ 4,873 |
Operating cash flows for finance leases | 8 |
Financing cash flows for finance leases | 24 |
ROU assets obtained in exchange for lease obligations: | |
Operating leases | 2,734 |
Finance leases | $ 17 |
Weighted average remaining lease terms | |
Operating leases | 5 years 14 days |
Finance leases | 2 years 1 month 28 days |
Weighted average discount rates | |
Operating leases | 10.37% |
Finance leases | 4.38% |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 |
Operating leases | |||
2021 | $ 4,927 | ||
2022 | 4,207 | ||
2023 | 2,855 | ||
2024 | 2,685 | ||
2025 | 2,083 | ||
Thereafter | 3,901 | ||
Total undiscounted future minimum lease payments | 20,658 | ||
Less: difference between undiscounted lease payments and discounted lease liabilities | (5,322) | ||
Total lease liabilities | 15,336 | $ 16,300 | |
Finance leases | |||
2021 | 29 | ||
2022 | 21 | ||
2023 | 5 | ||
2024 | 2 | ||
Total undiscounted future minimum lease payments | 57 | ||
Less: difference between undiscounted lease payments and discounted lease liabilities | (8) | ||
Total lease liabilities | $ 49 | ||
Operating leases | |||
2020 | $ 4,143 | ||
2021 | 3,945 | ||
2022 | 3,166 | ||
2023 | 1,916 | ||
2024 | 1,770 | ||
Thereafter | 4,497 | ||
Total lease payments | 19,437 | ||
Finance leases | |||
2020 | 27 | ||
2021 | 23 | ||
2022 | 15 | ||
Total lease payments | 65 | ||
Less: Amounts representing interest | (8) | ||
Present value of lease liabilities | $ 57 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash (receipts) for interest, net | $ (371) | $ (329) | $ (88) |
Cash payments (receipts) for income tax, net | 694 | 409 | (227) |
Acquisition of property and equipment under lease obligations | 17 | 64 | |
Accrued capital expenditures | $ 187 | $ 56 | 83 |
Accrued capitalized software development costs | $ 201 | ||
Leasehold improvements acquired under operating lease arrangement | — | 62 | 95 |
Additional Balance Sheet Info_3
Additional Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Current liabilities: | ||
Salaries, wages, and related benefits | $ 6,945 | $ 12,443 |
Other taxes payable | 1,649 | 1,041 |
Accrued legal settlements | 15 | |
Severance liabilities | 32 | 46 |
Professional fees | 50 | 67 |
Deferred rent | 273 | |
Other | 357 | 521 |
Total | 9,033 | 14,406 |
Other non-current liabilities: | ||
Uncertain tax positions | 1,103 | 1,083 |
Deferred rent and asset retirement obligations | 170 | 2,613 |
Employee benefit obligations | 511 | 486 |
Other | 76 | 76 |
Total | $ 1,860 | $ 4,258 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
(Loss) before income taxes | |||
United States | $ (36,373) | $ (13,621) | $ (11,926) |
Foreign | 2,507 | 678 | 325 |
Total loss before income taxes | $ (33,866) | $ (12,943) | $ (11,601) |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Current: | |||
Federal | $ 59 | $ 54 | $ 66 |
State and local | 21 | (383) | (446) |
Foreign | 463 | 514 | 73 |
Deferred: | |||
Federal | 11 | 79 | (2,985) |
State and local | 7 | 277 | 41 |
Foreign | (360) | (320) | 0 |
Total income tax expense (benefit) | $ 201 | $ 221 | $ (3,251) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at the US Federal statutory rate | $ (7,112) | $ (2,718) | $ (3,654) |
Benefit for state taxes | (856) | (304) | (642) |
Impact of foreign operations | (514) | (310) | 38 |
Indefinite life assets | 19 | 130 | 335 |
Change in valuation allowance | 8,406 | 3,302 | 3,328 |
Change in liability for unrecognized tax benefits | 22 | (400) | 40 |
Impact of Tax Act, net | 226 | (3,287) | |
Share-based compensation | (312) | 2 | 476 |
Global intangible low-taxed income | 460 | 94 | |
Other | 88 | 199 | 115 |
Total income tax expense (benefit) | $ 201 | $ 221 | $ (3,251) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Deferred tax assets: | ||
Accrued liabilities | $ 3,059 | $ 3,944 |
Allowance for doubtful accounts | 331 | 120 |
Inventory valuation reserve | 41 | |
Federal losses and credit carryforwards | 47,218 | 44,811 |
Foreign losses and credit carryforwards | 1,523 | 1,146 |
State losses and credit carryforwards | 10,911 | 9,886 |
Deferred revenue | 582 | 488 |
Property and equipment and software amortization | 163 | |
Operating lease liabilities | 1,297 | |
Goodwill and other intangible assets | 4,914 | |
Other | 88 | 65 |
Deferred tax assets, gross | 70,086 | 60,501 |
Less: valuation allowance | (66,819) | (57,852) |
Total | 3,267 | 2,649 |
Deferred tax liabilities: | ||
Operating lease right-of-use assets | (948) | |
Property and equipment and software amortization | (361) | |
Goodwill and other intangible assets | (2,426) | (2,706) |
Other | (9) | |
Total | (3,383) | (3,067) |
Total deferred tax liabilities | $ (116) | $ (418) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | Mar. 27, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Holiday, Aggregate Dollar Amount | $ 800 | |||
Regular corporate income tax rate in India | 50.00% | |||
Valuation allowance | $ 66,819 | $ 57,852 | ||
Undistributed earnings of foreign subsidiaries | 6,300 | 3,100 | ||
Unrecognized tax benefits that would impact effective tax rate | 600 | |||
Interest and penalty expense (benefit) | 100 | 100 | $ 100 | |
Interest and penalties accrued | 500 | $ 500 | ||
CARES Act [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward, description | the CARES Act provides, among other provisions, for the deferral of the employer-paid portion of social security taxes through the end of 2020, with 50% of the deferred amount due December 31, 2021 and the remaining 50% due December 31, 2022; the CARES Act also provides for certain employee retention tax credits. | |||
Percentage of deferral of the employer-paid portion of social security taxes due in December 31, 2021 | 50.00% | |||
Percentage of deferral of the employer-paid portion of social security taxes due in December 31, 2022 | 50.00% | |||
Additional liquidity during the current year | 100 | |||
Federal and State Deferred Tax Assets [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 65,900 | |||
Deferred Tax Assets in Hong Kong [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 900 | |||
INDIA | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 800 | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 199,100 | |||
Operating loss carryforwards, not subject to expiration | 24,700 | |||
Foreign Tax Authority [Member] | Hong Kong [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 400 | |||
Foreign Tax Authority [Member] | Malaysia [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 100 | |||
Foreign Tax Authority [Member] | Singapore [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 300 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 141,600 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $ 580 | $ 687 | $ 988 |
Reductions: | |||
Relating to positions taken during prior year | 0 | 0 | (300) |
Relating to lapse in statute | (5) | (107) | (1) |
Unrecognized tax benefits, end of period | $ 575 | $ 580 | $ 687 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plans (Details Textual) - 401(k) Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, matching contribution cost recognized | $ 1.8 | $ 1.6 | $ 1.7 |
100% on first 1% [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contributions, percent of one dollar match for employee percentage match | 100.00% | ||
50% up to next 5% [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contributions, percent of one dollar match for employee percentage match | 50.00% |
Employee Benefit Plans - Endors
Employee Benefit Plans - Endorsement Split-Dollar Life Insurance (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Present value of future proceeds to be received under corporate life insurance policies, liability | $ 100,000 | $ 100,000 | |
Aggregate cash surrender value of underlying life insurance, net of policy loans | 900,000 | 900,000 | |
Gain (loss) recognized on corporate-owned life insurance policies | $ 14,000 | $ 15,000 | $ 17,000 |
Loss per Share - Amounts Used i
Loss per Share - Amounts Used in Computing (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | |||||||||||
Net loss | $ (26,992) | $ (2,582) | $ (2,918) | $ (1,575) | $ (3,589) | $ (4,048) | $ (3,791) | $ (1,736) | $ (34,067) | $ (13,164) | $ (8,350) |
Denominator: | |||||||||||
Weighted average shares outstanding - basic and diluted | 23,233 | 23,037 | 22,801 | ||||||||
Loss per share - basic and diluted: | |||||||||||
Net loss per share (in dollars per share) | $ (1.16) | $ (0.11) | $ (0.13) | $ (0.07) | $ (0.15) | $ (0.18) | $ (0.16) | $ (0.08) | $ (1.47) | $ (0.57) | $ (0.37) |
Anti-dilutive stock options, SSARs, restricted shares and performance shares | 1,510 | 1,433 | 756 |
Loss per Share (Details Textual
Loss per Share (Details Textual) - shares | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Incremental common shares attributable to restricted shares (in shares) | 208,581 | 300,437 | 334,817 |
Share-based Compensation (Detai
Share-based Compensation (Details Textual) | 12 Months Ended |
Mar. 31, 2020USD ($)shares | |
Restricted Stock [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Unrecognized stock based compensation expense related to non-vested restricted stock | $ | $ 2,100,000 |
Weighted-average vesting period | 1 year 10 months 24 days |
Stock Settled Stock Appreciation Rights (SSARS) [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Numer of shares issued | 125,000 |
Stock Settled Stock Appreciation Rights (SSARS) [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Unrecognized stock based compensation expense related to non-vested restricted stock | $ | $ 5,600,000 |
Weighted-average vesting period | 2 years 3 months 18 days |
Shares issued from treasury shares, net of shares withheld to cover applicable exercise price of award and to cover employee's minimum applicable income taxes (in shares) | 21,494 |
Shares withheld to cover the employee's minimum applicable income taxes (in shares) | 6,712 |
Restricted Shares and Restricted Share Units [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Shares issued from treasury shares, net of shares withheld to cover applicable exercise price of award and to cover employee's minimum applicable income taxes (in shares) | 208,151 |
Shares withheld to cover the employee's minimum applicable income taxes (in shares) | 46,656 |
Performance Shares [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Deferred Compensation Liability, Current and Noncurrent | $ | $ 153,000 |
Two Thousand and Sixteen Stock Incentive Plan [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Shares authorized under 2016 Stock incentive plan | 2,000,000 |
Two Thousand and Sixteen Stock Incentive Plan [Member] | Restricted Stock [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Shares available for grant | 1,250,000 |
2011 Stock Incentive Plan [Member] | |
Stock Based Compensation (Textual) [Abstract] | |
Shares available for grant | 957,575 |
Share-based Compensation (Det_2
Share-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Payment Arrangement, Noncash Expense | $ 5,205 | $ 4,376 | $ 4,688 |
Product development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Summary of share-based compensation expense for options | 2,241 | 1,478 | 1,306 |
Selling and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Summary of share-based compensation expense for options | 321 | 469 | 371 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Summary of share-based compensation expense for options | $ 2,643 | $ 2,429 | $ 3,011 |
Share-based Compensation - Prin
Share-based Compensation - Principal Assumptions Utilized in Valuing SSARs Granted (Details) - Stock Settled Stock Appreciation Rights (SSARS) [Member] - $ / shares | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.38% | 1.74% | |
Risk-free interest rate | 2.68% | ||
Risk-free interest rate, maximum | 1.74% | 1.94% | |
Expected life (in years) | 5 years | 5 years | |
Expected volatility,minimum | 31.70% | 32.42% | |
Expected volatility | 32.42% | ||
Expected volatility, maximum | 32.42% | 32.84% | |
Weighted average grant date fair value (in dollars per share) | $ 10.01 | $ 4.72 | $ 3.36 |
Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life (in years) | 4 years 6 months | ||
Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life (in years) | 5 years |
Share-based Compensation - SSAR
Share-based Compensation - SSARs Rollforward (Details) - Stock Settled Stock Appreciation Rights (SSARS) [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Rights Outstanding at Beginning of Period | shares | 1,016,643 |
Number of Rights Granted | shares | 691,364 |
Number of Rights Exercised | shares | (37,506) |
Number of Rights, Forfeited | shares | (15,838) |
Number of Rights Expired | shares | (9,775) |
Number of Rights Outstanding at End of Period | shares | 1,644,888 |
Number of Rights Exercisable at End of Period | shares | 959,340 |
Number of Rights Vested and expected to vest at March 31, 2020 | shares | 1,644,888 |
Weighted Average Exercise Price Outstanding at Beginning of Period | $ / shares | $ 11.22 |
Weighted Average Exercise Price, Granted | $ / shares | 34.72 |
Weighted Average Exercise Price, Exercised | $ / shares | 10.02 |
Weighted Average Exercise Price, Forfeited | $ / shares | 18.09 |
Weighted Average Exercise Price, Expired | $ / shares | 10.61 |
Weighted Average Exercise Price Outstanding at End of Period | $ / shares | 21.07 |
Weighted Average Exercise Price, Exercisable at End of Period | $ / shares | 11.79 |
Weighted Average Exercise Price, Exercisable at End of Period | $ / shares | $ 21.07 |
Remaining Contractual Term Outstanding at End of Period | 4 years 10 months 24 days |
Remaining Contractual Term Exercisable at End of Period | 3 years 10 months 24 days |
Share Based Compensation Arrangement By Share Based Payment Award Vested And Expected To Vest Outstanding Remaining Contractual Term | 4 years 10 months 24 days |
Aggregate Intrinsic Value Outstanding at End of Period | $ | $ 5,236 |
Aggregate Intrinsic Value Exercisable at End of Period | $ | 5,130 |
Aggregate Intrinsic Value Exercisable at End of Period, Vested and expacted | $ | $ 5,236 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information Related to SSARs (Details) - Stock Settled Stock Appreciation Rights (SSARS) [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Summary of share-based compensation expense for options | $ 1,666 | $ 943 | $ 1,869 |
Total intrinsic value of SSARs exercised | 519 | 907 | 88 |
Total fair value of SSARs vesting | $ 1,328 | $ 1,165 | $ 1,325 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Shares Rollforward (Details) - Restricted Stock [Member] | 12 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Activity Related to Restricted Shares Awarded by the Company | |
Number of Shares, Outstanding at beginning of period | shares | 237,146 |
Number of Shares, Granted | shares | 223,404 |
Number of Shares, Vested | shares | (231,677) |
Number of Shares, Forefeited | shares | (50,411) |
Number of Shares, Outstanding at end of period | shares | 178,462 |
Weighted Average Grant-Date Fair Value, Outstanding at beginning of period | $ / shares | $ 13.46 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 22.72 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 16.60 |
Weighted Average Grant Date Fair Value, Forefeited | $ / shares | 17.34 |
Weighted Average Grant-Date Fair Value, Outstanding at end of period | $ / shares | $ 19.89 |
Share-based Compensation - Ad_2
Share-based Compensation - Additional Information Related to Restricted Shares (Details) - Restricted Stock [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 3,385 | $ 2,803 | $ 2,594 |
Total fair value of restricted share vesting | $ 4,004 | $ 4,383 | $ 4,315 |
Share-based Compensation - Perf
Share-based Compensation - Performance Shares Rollforward (Details) - Performance Shares [Member] | 12 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Performance shares awarded by the Company | |
Number of Shares, Outstanding at beginning of period | shares | 63,291 |
Number of Shares, Granted | shares | 30,120 |
Number of Shares, Vested | shares | (23,526) |
Number of Shares, Forefeited | shares | (39,765) |
Number of Shares, Outstanding at end of period | shares | 30,120 |
Weighted Average Grant-Date Fair Value, Outstanding at beginning of period | $ / shares | $ 14.22 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 22.41 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 22.67 |
Weighted Average Grant Date Fair Value, Forefeited | $ / shares | 14.22 |
Weighted Average Grant-Date Fair Value, Outstanding at end of period | $ / shares | $ 22.41 |
Share-based Compensation - Ad_3
Share-based Compensation - Additional Information Related to Performance Shares (Details) - Performance Shares [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 153 | $ 630 | $ 225 |
Total fair value of restricted share vesting | $ 513 | $ 243 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Assets: | ||
Corporate-owned life insurance — non-current | $ 936 | $ 895 |
Fair Value Inputs Level 3 [Member] | ||
Assets: | ||
Corporate-owned life insurance — non-current | $ 936 | $ 895 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - Cash Surrender Value [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | $ 895 | $ 853 |
Unrealized gain relating to instruments held at reporting date | 14 | 15 |
Purchases, sales, issuances and settlements, net | 27 | 27 |
Balance at end of period | $ 936 | $ 895 |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 39,659 | $ 41,987 | $ 40,722 | $ 38,389 | $ 36,618 | $ 36,014 | $ 34,203 | $ 34,007 | $ 160,757 | $ 140,842 | $ 127,360 |
Gross profit | 19,657 | 21,064 | 20,217 | 20,014 | 19,595 | 18,647 | 17,749 | 17,889 | 80,952 | 73,880 | 64,417 |
Restructuring, severance and other charges | 150 | 11 | 190 | 231 | 222 | 58 | 448 | 440 | 582 | 1,168 | |
Legal settlements, net | (125) | 15 | 35 | 91 | (125) | 141 | |||||
Net loss | $ (26,992) | $ (2,582) | $ (2,918) | $ (1,575) | $ (3,589) | $ (4,048) | $ (3,791) | $ (1,736) | $ (34,067) | $ (13,164) | $ (8,350) |
Net loss per share (in dollars per share) | $ (1.16) | $ (0.11) | $ (0.13) | $ (0.07) | $ (0.15) | $ (0.18) | $ (0.16) | $ (0.08) | $ (1.47) | $ (0.57) | $ (0.37) |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - MAK Capital One, LLC [Member] - Subsequent Event [Member] | 1 Months Ended |
May 31, 2020USD ($)$ / shares | |
Subsequent Event [Line Items] | |
Investment from major shareholder | $ 35,000,000 |
Fresh start adjustment, increase (decrease), preferred stock | 35,000,000 |
Increase in cash from investment | 35,000,000 |
Estimated closing cost | $ 1,000,000 |
Common stock [Member] | |
Subsequent Event [Line Items] | |
Price per share | $ / shares | $ 20.1676 |
Convertible Preferred Stock [Member] | |
Subsequent Event [Line Items] | |
Stock issued during period, value, conversion of convertible securities | $ 35,000,000 |
Preferred stock, dividend percentage | 5.25% |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Deferred Tax Valuation Allowance [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 57,852 | $ 54,260 | $ 80,013 |
Charged to costs and expenses | 8,967 | 3,592 | (25,753) |
Balance at end of year | 66,819 | 57,852 | 54,260 |
Allowance for Doubtful Accounts [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 788 | 900 | 509 |
Charged to costs and expenses | 1,434 | 539 | 1,063 |
Deductions | (588) | (651) | (672) |
Balance at end of year | $ 1,634 | $ 788 | $ 900 |