Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'COMPUWARE CORP | ' |
Entity Central Index Key | '0000859014 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 216,586,425 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $50,372 | $89,873 |
Accounts receivable, net | 381,892 | 424,587 |
Offering proceeds receivable | 68,448 | 0 |
Deferred tax asset, net | 42,837 | 37,618 |
Income taxes refundable | 4,628 | 4,951 |
Prepaid expenses and other current assets | 33,365 | 36,210 |
Total current assets | 581,542 | 593,239 |
PROPERTY AND EQUIPMENT, LESS ACCUMULATED DEPRECIATION AND AMORTIZATION | 295,264 | 302,492 |
CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS, NET | 111,162 | 116,663 |
ACCOUNTS RECEIVABLE | 191,208 | 174,891 |
DEFERRED TAX ASSET, NET | 30,351 | 31,754 |
GOODWILL | 732,265 | 722,042 |
OTHER ASSETS | 28,688 | 32,201 |
TOTAL ASSETS | 1,970,480 | 1,973,282 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 16,894 | 18,717 |
Accrued expenses | 92,969 | 103,994 |
Income taxes payable | 18,266 | 14,507 |
Deferred revenue | 387,878 | 417,862 |
Total current liabilities | 516,007 | 555,080 |
LONG TERM DEBT | 14,000 | 18,000 |
DEFERRED REVENUE | 285,119 | 310,453 |
ACCRUED EXPENSES | 18,274 | 27,873 |
DEFERRED TAX LIABILITY, NET | 52,769 | 63,650 |
Total liabilities | 886,169 | 975,056 |
SHAREHOLDERS' EQUITY: | ' | ' |
Common stock | 2,157 | 2,132 |
Additional paid-in capital | 799,647 | 713,580 |
Retained earnings | 268,937 | 301,298 |
Accumulated other comprehensive loss | -7,539 | -18,784 |
Total Compuware shareholders' equity | 1,063,202 | 998,226 |
Non-controlling interest | 21,109 | 0 |
Total shareholders' equity | 1,084,311 | 998,226 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,970,480 | $1,973,282 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUES: | ' | ' | ' | ' |
Software license fees | $35,710 | $31,674 | $71,116 | $65,668 |
Maintenance fees | 100,500 | 102,197 | 199,028 | 205,146 |
Subscription fees | 20,651 | 20,231 | 41,436 | 40,710 |
Professional services fees | 46,716 | 45,954 | 95,412 | 94,106 |
Application services fees | 24,525 | 20,542 | 48,626 | 41,129 |
Total revenues | 228,102 | 220,598 | 455,618 | 446,759 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Cost of software license fees | 5,632 | 4,904 | 11,038 | 9,729 |
Cost of maintenance fees | 7,724 | 9,068 | 15,945 | 18,014 |
Cost of subscription fees | 8,656 | 7,827 | 16,803 | 15,220 |
Cost of professional services | 37,610 | 40,085 | 77,959 | 82,386 |
Cost of application services | 33,689 | 18,989 | 57,950 | 36,710 |
Technology development and support | 24,125 | 27,549 | 50,660 | 54,046 |
Sales and marketing | 53,450 | 56,641 | 112,943 | 118,831 |
Administrative and general | 35,093 | 38,361 | 73,321 | 78,086 |
Restructuring costs | 233 | 0 | 5,345 | 0 |
Total operating expenses | 206,212 | 203,424 | 421,964 | 413,022 |
INCOME FROM OPERATIONS | 21,890 | 17,174 | 33,654 | 33,737 |
OTHER INCOME (EXPENSE), NET | 185 | -87 | 387 | -35 |
INCOME BEFORE INCOME TAX PROVISION | 22,075 | 17,087 | 34,041 | 33,702 |
INCOME TAX PROVISION | 6,889 | 6,493 | 8,888 | 12,640 |
NET INCOME | 15,186 | 10,594 | 25,153 | 21,062 |
Less: Net income (loss) attributable to the non-controlling interest in Covisint Corporation | -1,154 | 0 | -1,154 | 0 |
NET INCOME ATTRIBUTABLE TO COMPUWARE CORPORATION | $16,340 | $10,594 | $26,307 | $21,062 |
Basic earnings per share (in dollars per share) | $0.08 | $0.05 | $0.12 | $0.10 |
Diluted earnings per share (in dollars per share) | $0.07 | $0.05 | $0.12 | $0.10 |
Dividends declared per common share (in dollars per share) | $0.13 | $0 | $0.25 | $0 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidated Statements of Comprehensive Income, Statement of Comprehensive income (Unaudited) [Abstract] | ' | ' | ' | ' |
NET INCOME | $15,186 | $10,594 | $25,153 | $21,062 |
OTHER COMPREHENSIVE INCOME (LOSS), BEFORE TAX | ' | ' | ' | ' |
Foreign currency translation adjustments | 9,004 | 4,104 | 12,228 | -8,012 |
TAX ATTRIBUTES OF ITEMS IN OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Foreign currency translation adjustments | 1,239 | 1,191 | 983 | -2,096 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 7,765 | 2,913 | 11,245 | -5,916 |
COMPREHENSIVE INCOME | 22,951 | 13,507 | 36,398 | 15,146 |
Less: Net income (loss) attributable to the non-controlling interest in Covisint Corp. | -1,154 | 0 | -1,154 | 0 |
Less: Other comprehensive income attributable to the non-controlling interest in Covisint Corp. | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMPUWARE CORPORATION | $24,105 | $13,507 | $37,552 | $15,146 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income Loss [Member] | Total Compuware Shareholders' Equity [Member] | Non-controlling Interest [Member] | Total Shareholders' Equity [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||||
BALANCE at Mar. 31, 2012 | ' | $2,175 | $685,904 | $372,408 | ($10,550) | $1,049,937 | ' | $1,049,937 |
BALANCE (in shares) at Mar. 31, 2012 | ' | 217,506,319 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 21,062 | ' | ' | 21,062 | ' | 21,062 | ' | 21,062 |
Foreign currency translation, net of tax | ' | ' | ' | ' | -5,916 | -5,916 | ' | -5,916 |
Issuance of common stock | ' | 2 | 1,458 | ' | ' | 1,460 | ' | 1,460 |
Issuance of common stock (in shares) | ' | 163,579 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | ' | -50 | -16,175 | -30,822 | ' | -47,047 | ' | -47,047 |
Repurchase of common stock (in shares) | ' | -5,059,362 | ' | ' | ' | ' | ' | ' |
Exercise/release of employee stock awards and related tax benefit (Note 6) | ' | ' | 7,190 | ' | ' | 7,190 | ' | 7,190 |
Exercise/release of employee stock awards and related tax benefit (Note 6) (in shares) | ' | 2,149,275 | ' | ' | ' | ' | ' | ' |
Stock awards compensation | ' | 21 | 15,179 | ' | ' | 15,200 | ' | 15,200 |
BALANCE at Sep. 30, 2012 | ' | 2,148 | 693,556 | 362,648 | -16,466 | 1,041,886 | 0 | 1,041,886 |
BALANCE (in shares) at Sep. 30, 2012 | ' | 214,759,811 | ' | ' | ' | ' | ' | ' |
BALANCE at Mar. 31, 2013 | 998,226 | 2,132 | 713,580 | 301,298 | -18,784 | 998,226 | 0 | 998,226 |
BALANCE (in shares) at Mar. 31, 2013 | ' | 213,218,048 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 25,153 | ' | ' | 26,307 | ' | 26,307 | -1,154 | 25,153 |
Foreign currency translation, net of tax | ' | ' | ' | ' | 11,245 | 11,245 | ' | 11,245 |
Dividends | ' | ' | 796 | -54,425 | ' | -53,629 | ' | -53,629 |
Dividends (in shares) | ' | 8,949 | ' | ' | ' | ' | ' | ' |
Sale of subsidiary shares to non-controlling interest | ' | ' | 44,059 | ' | ' | 44,059 | 22,263 | 66,322 |
Issuance of common stock | ' | 1 | 1,301 | ' | ' | 1,302 | ' | 1,302 |
Issuance of common stock (in shares) | ' | 124,096 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | ' | -5 | -1,792 | -4,243 | ' | -6,040 | ' | -6,040 |
Repurchase of common stock (in shares) | ' | -300,000 | ' | ' | ' | ' | ' | ' |
Exercise/release of employee stock awards and related tax benefit (Note 6) | ' | 29 | 16,391 | ' | ' | 16,420 | ' | 16,420 |
Exercise/release of employee stock awards and related tax benefit (Note 6) (in shares) | ' | 2,656,127 | ' | ' | ' | ' | ' | ' |
Stock awards compensation | ' | ' | 25,312 | ' | ' | 25,312 | ' | 25,312 |
BALANCE at Sep. 30, 2013 | $1,084,311 | $2,157 | $799,647 | $268,937 | ($7,539) | $1,063,202 | $21,109 | $1,084,311 |
BALANCE (in shares) at Sep. 30, 2013 | ' | 215,707,220 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: | ' | ' |
Net income | $25,153 | $21,062 |
Adjustments to reconcile net income to net cash provided by operations: | ' | ' |
Depreciation and amortization | 32,501 | 31,126 |
Stock award compensation | 25,312 | 15,179 |
Deferred income taxes | -16,450 | 4,812 |
Other | 42 | 269 |
Net change in assets and liabilities, net of effects from currency fluctuations: | ' | ' |
Accounts receivable | 33,366 | 90,397 |
Prepaid expenses and other current assets | 5,640 | 4,535 |
Accounts payable and accrued expenses | -24,180 | -41,426 |
Deferred revenue | -58,934 | -114,452 |
Income taxes | 4,634 | 4,820 |
Net cash provided by operating activities | 27,084 | 16,322 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -5,953 | -12,977 |
Purchase of capitalized software | -11,649 | -15,583 |
Other | -275 | -1,400 |
Net cash used in investing activities | -17,877 | -29,960 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ' | ' |
Proceeds from borrowings | 37,500 | 87,300 |
Payments on borrowings | -41,500 | -73,000 |
Net proceeds from exercise of stock awards including excess tax benefits | 15,333 | 8,676 |
Employee contribution to stock purchase plans | 1,235 | 1,427 |
Repurchase of common stock | -6,415 | -44,828 |
Dividends | -53,629 | 0 |
Other | -608 | 0 |
Net cash used in financing activities | -48,084 | -20,425 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -624 | -1,601 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -39,501 | -35,664 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 89,873 | 99,180 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $50,372 | $63,516 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Note 1 - Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements (“financial statements”) include the accounts of Compuware Corporation and its subsidiaries (collectively, the "Company", “Compuware”, “we”, “our” and “us”). All inter-company balances and transactions have been eliminated in consolidation. | |
The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, contingencies and results of operations. While management has based their assumptions and estimates on the facts and circumstances existing at September 30, 2013, final amounts may differ from these estimates. | |
In the opinion of management of the Company, the accompanying financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. These financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended March 31, 2013 included in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The condensed consolidated balance sheet at March 31, 2013 has been derived from the audited financial statements at that date but does not include all information and footnotes required by U.S. GAAP for complete financial statements. The results of operations for interim periods are not necessarily indicative of results expected to be achieved for the full fiscal year. | |
Non-controlling Interest | |
In September 2013, Covisint Corporation (“Covisint), previously a wholly owned subsidiary of Compuware Corporation, substantially completed the Covisint Initial Public Offering (“IPO”), and issued 7.36 million shares of its common stock (19.7 percent of shares outstanding after the issuance) at a price to the public of $10 per share. Prior to completion of the Covisint IPO, the Company contributed the assets and liabilities of the Covisint segment to Covisint Corporation. | |
The non-controlling equity interest in Covisint is reflected as non-controlling interest in the accompanying condensed consolidated balance sheets and was $21.1 million as of September 30, 2013. | |
The Covisint IPO was accounted for as an equity transaction in accordance with ASC 810, “Consolidation” and no gain or loss has been recognized as the Company retained the controlling financial interest. This transaction increased the Company’s equity attributable to non-controlling interest by $22.2 million, which represented the carrying value of the non-controlling interest and increased the Company’s additional paid in capital by $44.1 million. | |
Upon completion of the Covisint IPO, Compuware owned 80.3 percent of the economic and voting interest in Covisint. The Company has announced its intention to effect a tax-free spin-off of Covisint shares following the March 2014 expiration of the lock-up period under the Covisint IPO underwriting agreement. The Company has requested a private letter ruling from the Internal Revenue Service (“IRS”) providing that, subject to certain conditions, the anticipated spin-off will be tax-free to Compuware and its stockholders for U.S. federal income tax purposes. The spin-off or other disposition is subject to various conditions, including Board approval, the receipt of any necessary regulatory or other approvals, the receipt of the private letter ruling from the IRS with confirmation of the tax-free nature of the proposed transaction, the receipt of an opinion of counsel and the existence of satisfactory market conditions. | |
There can be no assurance as to when the proposed spin-off or any other disposition will be completed, if at all. Unless and until Compuware ceases to own a controlling financial interest in Covisint, the Company will consolidate Covisint for financial reporting purposes, with a non-controlling interest adjustment for the economic interest in Covisint that Compuware does not own. | |
In connection with the Covisint IPO, the Company entered into various agreements relating to the separation of the Covisint business from the rest of Compuware’s businesses, including a master separation agreement, an employee benefits agreement, a Compuware services agreement, an intellectual property agreement, a registration rights agreement, a shared services agreement and a tax sharing agreement. | |
Basis for Revenue Recognition | |
The Company derives its revenue from licensing software products; providing maintenance and support services for those products; providing hosted software; and rendering professional and application services. Our software solutions are comprised of license fees, maintenance fees, subscription fees for hosted software and software related professional services fees. | |
We sometimes enter into arrangements that include both software related deliverables (licensed software products, maintenance services or software related professional services) and non-software deliverables (hosted software, professional services unrelated to our software products or application services). Our hosted software and application services do not qualify as software deliverables because our license grant does not allow the customer the right or capability to take possession of the software. For arrangements that contain both software and non-software deliverables, in accordance with ASC 605 “Revenue Recognition,” we allocate the arrangement consideration to the non-software deliverables as a group, and to the software deliverables as a group (the “Deliverable Groups”). We determine the selling price to allocate the arrangement consideration to the Deliverable Groups based on the following hierarchy of evidence: vendor specific objective evidence of selling price (“VSOE,” meaning price when sold separately) if available; third-party evidence of selling price if VSOE is not available; or best estimated selling price if neither VSOE nor third-party evidence is available. We currently are unable to establish VSOE or third-party evidence of selling price for either our software related deliverables or our non-software deliverables as a group. Therefore, the best estimate of selling price for each Deliverable Group is determined primarily by considering various factors, including, but not limited to stated renewal rates in a contract, if any, the historical selling price of these deliverables in similar stand-alone transactions and pricing practices. Total arrangement consideration is then allocated on the basis of the Deliverable Group’s relative selling price. | |
Once we have allocated the arrangement consideration between the Deliverable Groups, we recognize revenue as described in the respective software license fees, maintenance fees, subscription fees, professional services fees and application services fees sections below. | |
In order for a transaction to be eligible for revenue recognition, the following revenue criteria must be met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. We evaluate collectability based on past customer history, external credit ratings and payment terms within customer agreements. | |
Software license fees | |
The Company's software license agreements provide our customers with a right to use our software perpetually (perpetual licenses) or during a defined term (time-based licenses). | |
Assuming all revenue recognition criteria are met, perpetual license fee revenue is recognized using the residual method, under which the fair value, based on VSOE, of all undelivered elements of the agreement (i.e., maintenance and software related professional services) is deferred. VSOE is based on rates charged for maintenance and professional services when sold separately. The remaining portion of the fee is recognized as license fee revenue upon delivery of the products. | |
For revenue arrangements where there is a lack of VSOE for any undelivered elements, license fee revenue is deferred and recognized upon delivery of those elements or when VSOE can be established. However, when maintenance or software related professional services are the only undelivered elements, the license fee revenue is recognized on a ratable basis over the longer of the maintenance term or the period the software related professional services are expected to be performed. Such transactions include time-based licenses and certain unlimited capacity licenses, as the Company has not established VSOE for the undelivered elements in these arrangements. In order to comply with SEC Regulation S-X, Rule 5-03(b), which requires product, services and other categories of revenue to be displayed separately on the income statement, the Company separates the license fee, maintenance fee and software related professional services fee (which is included in professional services fees) associated with these types of arrangements based on its determination of fair value. The Company applies VSOE for maintenance related to perpetual license transactions and stand-alone software related professional services arrangements as a reasonable and consistent approximation of fair value to separate license fee, maintenance fee and software related professional services fee revenue for income statement classification purposes. | |
The Company offers flexibility to customers purchasing licenses for its products and related maintenance. Terms of these transactions range from standard perpetual license sales that include one year of maintenance to multi-year (generally two to five years), multi-product contracts. The Company allows deferred payment terms with installments collectable over the term of the contract. Based on the Company’s successful collection history for deferred payments, license fees (net of any financing fees) are generally recognized as revenue as discussed above. In certain transactions where it cannot be concluded that the fee is fixed or determinable due to the nature of the deferred payment terms, the Company recognizes revenue as payments become due. Financing fees are recognized as interest income over the term of the related receivable. | |
Maintenance fees | |
The Company’s maintenance arrangements allow customers to receive technical support and advice, including problem resolution services and assistance in product installation, error corrections and any product enhancements released during the maintenance period. The first year of maintenance is generally included with all license agreements. Maintenance fees are recognized ratably over the term of the maintenance arrangements, which generally range from one to five years. | |
Subscription fees | |
Subscription fees relate to arrangements that permit our customers to access and utilize our hosted software delivered on a software-as-a-service (“SaaS”) basis. Subscription fees are deferred upon contract execution and are recognized ratably over the term of the subscription. | |
Professional services fees | |
The Company provides a broad range of IT services for mainframe, distributed, web and mobile environments, including mobile computing application development and integration, package software customization, cloud computing consulting, development and integration of legacy systems, IT portfolio management services, enterprise legacy modernization services and application performance management. The Company also offers implementation, consulting and training services in tandem with the Company’s software solutions offerings, which are referred to as software related professional services. | |
Professional services fees are generally based on hourly or daily rates. Revenues from professional services are recognized in the period the services are performed provided that collection of the related receivable is reasonably assured. For development services rendered under fixed-price contracts, revenues are recognized using the proportional performance method and if it is determined that costs will exceed revenue, the expected loss is recorded at the time the loss becomes apparent. | |
Application services fees | |
Our application services fees consist of fees related to our Covisint on-demand software including associated services. The arrangements do not provide customers the right to take possession of the software at any time, nor do the arrangements contain rights of return. Many of our application services contracts include a services project fee and a recurring fee for ongoing platform-as-a-service (“PaaS”) operations. Certain services related to these projects have stand-alone value (e.g., other vendors provide similar services) and qualify as a separate unit of accounting. Services that have stand-alone value are recognized as delivered. For those services that do not have stand-alone value, the revenue is deferred and recognized over the longer of the committed term of the subscription agreement (generally one to five years) or the expected period over which the customer will receive benefit (generally five years). The recurring fees are recognized ratably over the applicable service period. | |
Deferred revenue | |
Deferred revenue consists primarily of billed and unbilled maintenance and subscription fees related to the future service period of maintenance and subscription agreements in effect at the reporting date. Deferred license, software related services and application services fees are also included in deferred revenue for those arrangements that are being recognized over time. Sales commission costs that directly relate to revenue transactions that are deferred are recorded as “prepaid expenses and other current assets” or non-current “other assets”, as applicable, in the condensed consolidated balance sheets and recognized as "cost of application services" or “sales and marketing” expenses, as applicable, in the condensed consolidated statements of operations over the revenue recognition period of the related customer contracts. | |
Research and development | |
Research and development (“R&D”) costs primarily include the cost of programming personnel and amounted to $31.4 million and $25.9 million for the three months ended September 30, 2013 and 2012, respectively, and $56.6 million and $51.5 million for the six months ended September 30, 2013 and 2012, respectively. R&D costs related to our software solutions are reported as “technology development and support” and for our application services network, the costs are reported as “cost of application services” in the condensed consolidated statements of operations. | |
Income Taxes | |
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. The Company does not permanently reinvest any earnings in its foreign subsidiaries and recognizes all deferred tax liabilities that arise from outside basis differences in its investment in subsidiaries. | |
The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. These deferred tax assets are subject to periodic assessments as to recoverability and if it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recorded which would increase the provision for income taxes. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. | |
Interest and penalties related to uncertain tax positions are included in the income tax provision. | |
The Company’s effective tax rate for the six months ended September 30, 2013 was 26.1% as compared to 37.5% for the six months ended September 30, 2012. The decline in the effective rate was primarily due to the recording of a benefit related to stock compensation as a result of a change in our expectation regarding the tax deductibility of compensation for a certain officer during the first six months of 2014. The tax deductibility of this officer’s compensation is no longer subject to the tax deduction threshold for officer compensation. Accordingly, a deferred tax asset was recorded related to the stock compensation that was previously expected to be disallowed for tax purposes. | |
Cash paid for income taxes was $17.9 million and $4.6 million for the six months ended September 30, 2013 and 2012, respectively. | |
Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this ASU provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We plan to adopt this ASU in fiscal 2015 and do not expect it to have a significant impact on our financial statements. | |
In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210)”. The amendments in this ASU require improved disclosure information about financial instruments and derivative instruments that are either offset or subject to an enforceable master netting arrangement or similar agreement. Subsequently in January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”, which clarifies the types of instruments and transactions that are subject to the offsetting disclosure requirements established by ASU 2011-11. These ASUs should be applied retrospectively for all comparative periods presented for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. The requirements of these ASUs were adopted during our quarter ended June 30, 2013 and did not have a significant impact on our disclosures. |
Financing_Receivables
Financing Receivables | 6 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Financing Receivables [Abstract] | ' | ||||||||||||||||||||
Financing Receivables | ' | ||||||||||||||||||||
Note 2 – Financing Receivables | |||||||||||||||||||||
In accordance with ASU No. 2010-20 “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses,” the Company allows deferred payment terms that exceed one year for customers purchasing licenses (perpetual or time-based) for our software products and the related maintenance services (“multi-year deferred payment arrangements”). A financing receivable exists when the license transfers to the customer or the related maintenance service has been provided (i.e., revenue recognition has occurred) prior to the due date of the related receivable. Our products financing receivables primarily consist of the perpetual license portion of outstanding multi-year deferred payment arrangements. | |||||||||||||||||||||
As of September 30, 2013, our loans receivable balance consisted of a note due from ForeSee Results, Inc. The terms of the note require quarterly payments of principal and interest through March 31, 2015 at an annual interest rate of 7.0%. | |||||||||||||||||||||
The following is an aged analysis of our products and loans financing receivables based on invoice dates as of September 30, 2013 and March 31, 2013 (in thousands): | |||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||
0-29 days | 30-90 days | Greater than | Unbilled | Total | |||||||||||||||||
past | past | 90 days | financing | ||||||||||||||||||
invoice date | invoice date | past | receivables | ||||||||||||||||||
invoice date | |||||||||||||||||||||
Pass rating | |||||||||||||||||||||
Software products | $ | 2,597 | $ | 222 | $ | 573 | $ | 41,290 | $ | 44,682 | |||||||||||
Loans | 2,875 | 2,875 | |||||||||||||||||||
Total | 2,597 | 222 | 573 | 44,165 | 47,557 | ||||||||||||||||
Watch rating | |||||||||||||||||||||
Software products | 170 | 170 | |||||||||||||||||||
Total financing receivables | $ | 2,597 | $ | 222 | $ | 743 | $ | 44,165 | $ | 47,727 | |||||||||||
As of March 31, 2013 | |||||||||||||||||||||
0-29 days | 30-90 days | Greater than | Unbilled | Total | |||||||||||||||||
past | past | 90 days | financing | ||||||||||||||||||
invoice date | invoice date | past | receivables | ||||||||||||||||||
invoice date | |||||||||||||||||||||
Pass rating | |||||||||||||||||||||
Software products | $ | 3,311 | $ | 679 | $ | 1,324 | $ | 42,659 | $ | 47,973 | |||||||||||
Loans | 3,771 | 3,771 | |||||||||||||||||||
Total | 3,311 | 679 | 1,324 | 46,430 | 51,744 | ||||||||||||||||
Watch rating | |||||||||||||||||||||
Software products | 179 | 179 | |||||||||||||||||||
Total financing receivables | $ | 3,311 | $ | 679 | $ | 1,503 | $ | 46,430 | $ | 51,923 | |||||||||||
As of September 30, 2013 and March 31, 2013, the allowance for credit losses on our financing receivables was $170,000 and $179,000. |
Foreign_Currency_Transactions_
Foreign Currency Transactions and Derivatives | 6 Months Ended |
Sep. 30, 2013 | |
Foreign Currency Transactions and Derivatives [Abstract] | ' |
Foreign Currency Transactions and Derivatives | ' |
Note 3 - Foreign Currency Transactions and Derivatives | |
The Company is exposed to foreign exchange rate risks related to assets and liabilities that are denominated in non-local currency and current inter-company balances due to and from the Company’s foreign subsidiaries. The Company enters into foreign currency forward contracts to sell or buy currencies with the intent of mitigating foreign exchange rate risks related to these balances. The Company does not hedge currency risk related to anticipated revenue or expenses denominated in foreign currency. All foreign exchange derivatives are recognized in the condensed consolidated balance sheets at fair value. See note 4 of the condensed consolidated financial statements for further information. | |
The foreign currency net gains or (losses) for the three months ended September 30, 2013 and 2012 were ($2.4 million) and ($1.8 million), respectively and for the six months ended September 30, 2013 and 2012 were ($3.0 million) and ($1.1 million), respectively. The hedging transaction net gains or (losses) from foreign exchange derivative contracts for the three months ended September 30, 2013 and 2012 were $887,000 and $684,000, respectively and for the six months ended September 30, 2013 and 2012 were $897,000 and $471,000, respectively. These amounts were recorded to “administrative and general” in the condensed consolidated statements of operations. | |
The Company has derivative contracts maturing through October 2013 to sell $1.8 million and purchase $30.1 million in foreign currencies at September 30, 2013 and had derivative contracts maturing through April 2013 to sell $1.8 million and purchase $15.5 million in foreign currencies at March 31, 2013. |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value of Assets and Liabilities [Abstract] | ' | ||||||||||||||||
Fair Value of Assets and Liabilities | ' | ||||||||||||||||
Note 4 - Fair Value of Assets and Liabilities | |||||||||||||||||
The Company reports its money market funds and foreign exchange derivatives at fair value on a recurring basis using the following fair value hierarchy: (1) Level 1 - quoted prices in active markets for identical assets or liabilities; (2) Level 2 – inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and (3) Level 3 - unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands): | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Estimated | Quoted Prices in | Significant | Significant | ||||||||||||||
Fair Value | Active Markets for | Other Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents - money market funds | $ | 2,672 | $ | 2,672 | - | - | |||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange derivatives | $ | 61 | - | $ | 61 | - | |||||||||||
As of March 31, 2013 | |||||||||||||||||
Estimated | Quoted Prices in | Significant | Significant | ||||||||||||||
Fair Value | Active Markets for | Other Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents - money market funds | $ | 11,525 | $ | 11,525 | - | - | |||||||||||
Foreign exchange derivatives | $ | 31 | - | $ | 31 | - | |||||||||||
Non-financial assets such as goodwill and intangible assets are also subject to nonrecurring fair value measurements if they are deemed to be impaired. See note 7 of the condensed consolidated financial statements for further information. |
Computation_of_Earnings_per_Co
Computation of Earnings per Common Share | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Computation of Earnings per Common Share [Abstract] | ' | ||||||||||||||||
Computation of Earnings per Common Share | ' | ||||||||||||||||
Note 5 - Computation of Earnings per Common Share | |||||||||||||||||
Earnings per common share data were computed as follows (in thousands, except per share amounts): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Basic earnings per share: | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Compuware Corporation | $ | 16,340 | $ | 10,594 | $ | 26,307 | $ | 21,062 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding | 214,926 | 215,633 | 214,287 | 216,566 | |||||||||||||
Basic earnings per share | $ | 0.08 | $ | 0.05 | $ | 0.12 | $ | 0.1 | |||||||||
Diluted earnings per share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Compuware Corporation | $ | 16,340 | $ | 10,594 | $ | 26,307 | $ | 21,062 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding | 214,926 | 215,633 | 214,287 | 216,566 | |||||||||||||
Dilutive effect of stock awards | 5,503 | 4,337 | 5,720 | 4,142 | |||||||||||||
Total shares | 220,429 | 219,970 | 220,007 | 220,708 | |||||||||||||
Diluted earnings per share | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.1 | |||||||||
During the three months ended September 30, 2013 and 2012, stock awards to purchase 3.3 million and 6.9 million shares, respectively, were excluded from the diluted earnings per share calculation because they were anti-dilutive and stock awards to purchase 5.1 million and 1.7 million shares, respectively, were excluded from the calculation because the performance conditions for vesting had not yet been met. During the six months ended September 30, 2013 and 2012, stock awards to purchase 2.6 million and 11.5 million shares, respectively, were excluded from the diluted earnings per share calculation because they were anti-dilutive and stock awards to purchase 5.2 million and 1.6 million shares, respectively, were excluded from the calculation because the performance conditions for vesting had not yet been met. See note 6 for a discussion of options with performance conditions and performance based stock awards. |
Stock_Benefit_Plans_and_StockB
Stock Benefit Plans and Stock-Based Compensation | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Benefit Plans and Stock-Based Compensation [Abstract] | ' | ||||||||||||||||
Stock Benefit Plans and Stock-Based Compensation | ' | ||||||||||||||||
Note 6 – Stock Benefit Plans and Stock-Based Compensation | |||||||||||||||||
Stock Benefit Plans | |||||||||||||||||
The Company has the following stock benefit plans: (1) the Amended and Restated 2007 Long Term Incentive Plan (“2007 LTIP”) allows the Company’s Compensation Committee to grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based cash or restricted stock unit awards and cash incentive awards to employees and directors of the Company; (2) the Employee Stock Purchase Plan allows participating U.S. and Canadian employees the right to have up to 10% of their compensation withheld to purchase Company common stock at a 5% discount; and (3) the Employee Stock Ownership Plan and Trust/401(k) Plan (“ESOP/401(k)”), which includes a qualified cash or deferred arrangement as described under Section 401(k) of the Internal Revenue Code, allows the Company to make contributions to the ESOP/401(k) for the benefit of substantially all U.S. employees. | |||||||||||||||||
Covisint Corporation (“Covisint”), a subsidiary of the Company, maintains a stock benefit plan referred to as the 2009 Long-Term Incentive Plan (“2009 Covisint LTIP”) allowing the board of directors of Covisint to grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based cash or restricted stock unit awards and cash incentive awards to employees and directors of Covisint and the Company. | |||||||||||||||||
ESOP/401(k) | |||||||||||||||||
The Company provides a matching program for the 401(k) component of the ESOP/401(k). The Company matches 33% of employees’ 401(k) contributions up to 2% of eligible earnings. Matching contributions by the Company vest 100% when an employee attains three years of service with the Company. During both the three months ended September 30, 2013 and 2012, the Company expensed $1.1 million and for the six months ended September 30, 2013 and 2012, the Company expensed $2.3 million and $2.4 million, respectively, related to this plan. | |||||||||||||||||
Compuware Stock Option Activity | |||||||||||||||||
Options that Vest Based on Service Conditions Only | |||||||||||||||||
A summary of activity for options that vest based on service conditions only under the Company’s stock-based compensation plans as of September 30, 2013, and changes during the six months then ended is presented below (shares and intrinsic value in thousands): | |||||||||||||||||
Six Months Ended | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term in Years | |||||||||||||||||
Options outstanding as of March 31, 2013 | 19,076 | $ | 8.44 | ||||||||||||||
Granted | 1,146 | 10.63 | |||||||||||||||
Exercised | (1,950 | ) | 7.51 | $ | 6,945 | ||||||||||||
Forfeited | (91 | ) | 10.73 | ||||||||||||||
Cancelled/expired | (87 | ) | 9.36 | ||||||||||||||
Options outstanding as of September 30, 2013 | 18,094 | $ | 8.66 | 6.69 | $ | 44,756 | |||||||||||
Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2013 | 17,416 | $ | 8.61 | 6.09 | $ | 43,869 | |||||||||||
Options exercisable as of September 30, 2013 | 12,317 | $ | 8.3 | 5.8 | $ | 34,919 | |||||||||||
The average fair value of stock options vested during the six months ending September 30, 2013 and 2012 was $3.98 and $4.00 per share, respectively. | |||||||||||||||||
Options that Vest Based on both Performance and Service Conditions (“Performance Options”) | |||||||||||||||||
As of September 30, 2013, 3.2 million stock options that vest based on both service and performance conditions were outstanding. The performance vesting conditions for these options are based on company-wide revenue and earnings targets. As of September 30, 2013, it is deemed probable that the performance targets for approximately 479,000 of these options will be achieved. Expense totaling $415,000 and $88,000, respectively, was recorded in the condensed consolidated statement of operations related to these stock options during the six months and three months ended September 30, 2013, respectively. No expense was recorded in the condensed consolidated statement of operations related to these stock options during the six months and three months ended September 30, 2012. | |||||||||||||||||
A summary of activity for options that vest based on the achievement of both service and performance conditions under the Company’s stock-based compensation plans as of September 30, 2013, and changes during the six months then ended is presented below (shares and intrinsic value in thousands): | |||||||||||||||||
Six Months Ended | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term in Years | |||||||||||||||||
Options outstanding as of March 31, 2013 | 3,648 | $ | 9.79 | ||||||||||||||
Granted | 594 | 11.3 | |||||||||||||||
Forfeited/Cancelled | (1,031 | ) | 9.91 | ||||||||||||||
Options outstanding as of September 30, 2013 | 3,211 | $ | 10.03 | 9 | $ | 3,583 | |||||||||||
Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2013 | 479 | $ | 11.3 | 9.62 | $ | - | |||||||||||
Options exercisable as of September 30, 2013 | - | $ | - | - | $ | - | |||||||||||
The weighted average fair value of stock options granted during the periods and the assumptions used to estimate those values using the Black-Scholes option pricing model were as follows: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected volatility | 39.52 | % | 40.81 | % | |||||||||||||
Risk-free interest rate | 1.59 | % | 0.95 | % | |||||||||||||
Expected lives at date of grant (in years) | 6.3 | 6.3 | |||||||||||||||
Weighted-average fair value of the options granted | $ | 2.69 | $ | 4.03 | |||||||||||||
Dividend yield assumption (1) | 4.42 | % | 0 | % | |||||||||||||
-1 | In January 2013, our Board of Directors announced its intention to begin paying cash dividends totaling $0.50 per share annually. Prior to that, the Company had never paid a dividend or announced any intentions to pay a dividend. | ||||||||||||||||
Restricted Stock Units and Performance-Based Stock Awards Activity | |||||||||||||||||
A summary of non-vested restricted stock units (“RSUs”) and performance-based stock awards (“PSAs” and collectively “Non-vested RSU”) activity under the Company’s LTIP as of September 30, 2013, and changes during the six months then ended is presented below (shares and intrinsic value in thousands): | |||||||||||||||||
Six Months Ended | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Shares | Weighted | Aggregate | |||||||||||||||
Average | Intrinsic | ||||||||||||||||
Grant-Date | Value | ||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested RSU outstanding as of March 31, 2013 | 4,850 | ||||||||||||||||
Granted | 508 | $ | 11.26 | ||||||||||||||
Dividend equivalents issued | 78 | 10.94 | |||||||||||||||
Released | (945 | ) | $ | 10,166 | |||||||||||||
Forfeited | (52 | ) | |||||||||||||||
Non-vested RSU outstanding as of September 30, 2013 | 4,439 | ||||||||||||||||
Approximately 31,000 PSAs with performance conditions based on company-wide revenue and earnings targets were outstanding as of September 30, 2013. It is not deemed probable that these targets will be achieved as of September 30, 2013. | |||||||||||||||||
During the first six months of 2014, the Company paid two quarterly dividends of $0.125 per share. In connection with this, approximately 35,000 and 78,000 dividend equivalent shares were issued to participants holding non-vested RSUs as of the dividend record date during the three and six months ended September 30, 2013, respectively. | |||||||||||||||||
Covisint Corporation 2009 Long-Term Incentive Plan | |||||||||||||||||
As of September 30, 2013, there were 4.4 million stock options outstanding from the 2009 Covisint LTIP, which reflects the Covisint board of directors approved 30-for-1 stock split on May 23, 2013. These options include a performance condition requiring a change in control or IPO of Covisint prior to vesting. Many of these options vest upon the October 1, 2013, closing of Covisint’s IPO. Cumulative expense related to these options of $12.5 million was recorded to cost of application services during the three months ended September 30, 2013. | |||||||||||||||||
Certain employees who received stock options from the 2009 Covisint LTIP were also awarded PSAs from the Company’s 2007 LTIP. As of September 30, 2013, there were 1.5 million PSAs outstanding. Approximately 1.1 million of these PSAs will be cancelled upon the closing of the Covisint IPO. As the awards were no longer deemed probable, $2.9 million of expense associated with the PSAs was reversed from cost of application services during the quarter ended September 30, 2013. | |||||||||||||||||
Stock Awards Compensation | |||||||||||||||||
Stock award compensation expense was allocated as follows (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock-based compensation classified as: | |||||||||||||||||
Cost of maintenance fees | $ | 170 | $ | 235 | $ | 348 | $ | 452 | |||||||||
Cost of subscription fees | 1 | 18 | 30 | 53 | |||||||||||||
Cost of professional services | 93 | 68 | 177 | 160 | |||||||||||||
Cost of application services | 10,020 | 387 | 10,506 | 709 | |||||||||||||
Technology development and support | 530 | 730 | 1,105 | 1,374 | |||||||||||||
Sales and marketing | 808 | 1,403 | 3,584 | 3,187 | |||||||||||||
Administrative and general | 3,253 | 4,049 | 7,771 | 9,244 | |||||||||||||
Restructuring costs | - | - | 1,791 | - | |||||||||||||
Total stock-based compensation expense before income tax provision | $ | 14,875 | $ | 6,890 | $ | 25,312 | $ | 15,179 | |||||||||
As of September 30, 2013, it is expected that total unrecognized compensation cost of $38.0 million, net of estimated forfeitures, related to nonvested Compuware and Covisint equity awards that are expected to vest will be recognized over a weighted-average period of approximately 2.07 years. |
Goodwill_Capitalized_Software_
Goodwill, Capitalized Software and Other Intangible Assets | 6 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Goodwill, Capitalized Software and Other Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||||||
Goodwill, Capitalized Software and Other Intangible Assets | ' | ||||||||||||||||||||||||||||
Note 7 – Goodwill, Capitalized Software and Other Intangible Assets | |||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
The Company has the following reporting units: Application Performance Management (“APM”); Mainframe (“MF”); Changepoint (“CP”); Uniface (“UF”); Professional Services (“PS”); and Covisint Application Services (“AS” or “Covisint”). The changes in the carrying amount of goodwill by reporting unit during the six months ended September 30, 2013 are summarized as follows (in thousands): | |||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Total | |||||||||||||||||||||||
Goodwill as of March 31, 2013 | $ | 469,947 | $ | 140,557 | $ | 22,079 | $ | 21,280 | $ | 42,794 | $ | 25,385 | $ | 722,042 | |||||||||||||||
Effect of foreign currency translation | 10,223 | - | - | - | - | - | 10,223 | ||||||||||||||||||||||
Goodwill as of September 30, 2013 | $ | 480,170 | $ | 140,557 | $ | 22,079 | $ | 21,280 | $ | 42,794 | $ | 25,385 | $ | 732,265 | |||||||||||||||
Capitalized software and other intangible assets | |||||||||||||||||||||||||||||
The components of the Company’s capitalized software and other intangible assets are as follows (in thousands): | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||||||||||
Amount | Amortization | Amount | |||||||||||||||||||||||||||
Unamortized intangible assets: | |||||||||||||||||||||||||||||
Trademarks | $ | 4,418 | $ | 4,418 | |||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||
Capitalized software | |||||||||||||||||||||||||||||
Internally developed | 255,521 | $ | (194,653 | ) | 60,868 | ||||||||||||||||||||||||
Purchased | 166,523 | (147,785 | ) | 18,738 | |||||||||||||||||||||||||
Customer relationship | 52,208 | (27,371 | ) | 24,837 | |||||||||||||||||||||||||
Other | 20,364 | (18,063 | ) | 2,301 | |||||||||||||||||||||||||
Total amortized intangible assets | $ | 494,616 | $ | (387,872 | ) | $ | 106,744 | ||||||||||||||||||||||
As of March 31, 2013 | |||||||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||||||||||
Amount | Amortization | Amount | |||||||||||||||||||||||||||
Unamortized intangible assets: | |||||||||||||||||||||||||||||
Trademarks | $ | 4,428 | $ | 4,428 | |||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||
Capitalized software | |||||||||||||||||||||||||||||
Internally developed | 243,872 | $ | (184,732 | ) | 59,140 | ||||||||||||||||||||||||
Purchased | 165,117 | (142,453 | ) | 22,664 | |||||||||||||||||||||||||
Customer relationship | 52,036 | (25,281 | ) | 26,755 | |||||||||||||||||||||||||
Other | 19,884 | (16,208 | ) | 3,676 | |||||||||||||||||||||||||
Total amortized intangible assets | $ | 480,909 | $ | (368,674 | ) | $ | 112,235 | ||||||||||||||||||||||
Capitalized software includes the costs of internally developed software technology and software technology purchased through acquisitions. Internally developed capitalized software costs and capitalized purchased software technology are being amortized over periods up to five years. | |||||||||||||||||||||||||||||
Customer relationship agreements are related to acquisition activity and are being amortized over periods up to ten years. | |||||||||||||||||||||||||||||
Other amortized intangible assets include amortizable trademarks and patents relating to acquisition activity and are being amortized over periods up to three years. | |||||||||||||||||||||||||||||
Unamortized trademarks were acquired as part of the Covisint and Changepoint acquisitions. These trademarks are deemed to have an indefinite life. | |||||||||||||||||||||||||||||
Amortization of intangible assets | |||||||||||||||||||||||||||||
Amortization expense of capitalized software, customer relationship and other intangible assets was as follows (in thousands): | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||
Capitalized software | |||||||||||||||||||||||||||||
Internally developed | $ | 5,103 | $ | 3,793 | $ | 9,922 | $ | 7,263 | |||||||||||||||||||||
Purchased | 2,391 | 2,372 | 4,761 | 4,779 | |||||||||||||||||||||||||
Customer relationship | 1,032 | 1,041 | 2,063 | 2,085 | |||||||||||||||||||||||||
Other | 770 | 898 | 1,532 | 1,817 | |||||||||||||||||||||||||
Total amortization expense | $ | 9,296 | $ | 8,104 | $ | 18,278 | $ | 15,944 | |||||||||||||||||||||
Capitalized software amortization related to our on-premises software is reported as “cost of software license fees”, amortization related to our hosted software is reported as “cost of subscription fees” and amortization related to our application services is reported as “cost of application services” in the condensed consolidated statements of operations. | |||||||||||||||||||||||||||||
Customer relationship amortization related to our software solutions segments is reported as “sales and marketing” and amortization related to our application services segment is reported as “cost of application services” in the condensed consolidated statements of operations. | |||||||||||||||||||||||||||||
Amortization expense associated with trademarks and trade names related to our software solutions segments is reported as “cost of license fees” and amortization related to our application services segment is reported as “cost of application services” in the condensed consolidated statements of operations. | |||||||||||||||||||||||||||||
Based on the capitalized software, customer relationship and other intangible assets recorded through September 30, 2013, the annual amortization expense over the next five fiscal years and thereafter is expected to be as follows (in thousands): | |||||||||||||||||||||||||||||
Fiscal Year Ended March 31, | |||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||
Capitalized software | $ | 29,008 | $ | 25,237 | $ | 21,622 | $ | 11,946 | $ | 5,470 | $ | 1,006 | |||||||||||||||||
Customer relationship | 4,131 | 4,136 | 4,136 | 3,972 | 3,828 | 6,697 | |||||||||||||||||||||||
Other | 3,067 | 766 | - | - | - | - | |||||||||||||||||||||||
Total amortization expense | $ | 36,206 | $ | 30,139 | $ | 25,758 | $ | 15,918 | $ | 9,298 | $ | 7,703 |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||||||
Note 8 – Segment Information | |||||||||||||||||||||||||||||||||
The Company evaluates the performance of its segments based primarily on revenue growth and contribution margin which is operating profit before certain charges such as restructuring, internal information system support, finance, human resources, legal, administration and other corporate charges (“unallocated expenses”). Transactions between segments are eliminated. The allocation of income taxes is not evaluated at the segment level. Financial information for the Company’s business segments was as follows (in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
& Eliminations (1) | |||||||||||||||||||||||||||||||||
Software license fees | $ | 24,256 | $ | 8,335 | $ | 958 | $ | 2,161 | $ | - | $ | - | $ | - | $ | 35,710 | |||||||||||||||||
Maintenance fees | 24,394 | 64,425 | 4,247 | 7,434 | - | - | - | 100,500 | |||||||||||||||||||||||||
Subscription fees | 19,931 | - | 720 | - | - | - | - | 20,651 | |||||||||||||||||||||||||
Professional services fees | 6,796 | 31 | 3,202 | 986 | 36,013 | - | (312 | ) | 46,716 | ||||||||||||||||||||||||
Application services fees | - | - | - | - | - | 24,525 | - | 24,525 | |||||||||||||||||||||||||
Total revenues | 75,377 | 72,791 | 9,127 | 10,581 | 36,013 | 24,525 | (312 | ) | 228,102 | ||||||||||||||||||||||||
Operating expenses | 68,757 | 17,324 | 8,827 | 4,694 | 28,918 | 34,362 | 43,330 | 206,212 | |||||||||||||||||||||||||
Contribution / operating margin | $ | 6,620 | $ | 55,467 | $ | 300 | $ | 5,887 | $ | 7,095 | $ | (9,837 | ) | $ | (43,642 | ) | $ | 21,890 | |||||||||||||||
-1 | Unallocated operating expenses include $233,000 in restructuring expenses. See note 10 for additional information. | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Software license fees | $ | 17,942 | $ | 9,773 | $ | 2,068 | $ | 1,891 | $ | - | $ | - | $ | - | $ | 31,674 | |||||||||||||||||
Maintenance fees | 22,410 | 68,378 | 4,052 | 7,357 | - | - | - | 102,197 | |||||||||||||||||||||||||
Subscription fees | 19,544 | - | 687 | - | - | - | - | 20,231 | |||||||||||||||||||||||||
Professional services fees | 7,184 | 674 | 3,317 | 1,095 | 33,684 | - | - | 45,954 | |||||||||||||||||||||||||
Application services fees | - | - | - | - | - | 20,542 | - | 20,542 | |||||||||||||||||||||||||
Total revenues | 67,080 | 78,825 | 10,124 | 10,343 | 33,684 | 20,542 | - | 220,598 | |||||||||||||||||||||||||
Operating expenses | 74,059 | 20,284 | 10,752 | 4,606 | 28,138 | 20,051 | 45,534 | 203,424 | |||||||||||||||||||||||||
Contribution / operating margin | $ | (6,979 | ) | $ | 58,541 | $ | (628 | ) | $ | 5,737 | $ | 5,546 | $ | 491 | $ | (45,534 | ) | $ | 17,174 | ||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
& Eliminations (1) | |||||||||||||||||||||||||||||||||
Software license fees | $ | 46,267 | $ | 18,067 | $ | 3,154 | $ | 3,628 | $ | - | $ | - | $ | - | $ | 71,116 | |||||||||||||||||
Maintenance fees | 48,098 | 127,883 | 8,374 | 14,673 | - | - | - | 199,028 | |||||||||||||||||||||||||
Subscription fees | 40,063 | - | 1,373 | - | - | - | - | 41,436 | |||||||||||||||||||||||||
Professional services fees | 14,398 | 100 | 6,771 | 2,110 | 72,999 | - | (966 | ) | 95,412 | ||||||||||||||||||||||||
Application services fees | - | - | - | - | - | 48,626 | - | 48,626 | |||||||||||||||||||||||||
Total revenues | 148,826 | 146,050 | 19,672 | 20,411 | 72,999 | 48,626 | (966 | ) | 455,618 | ||||||||||||||||||||||||
Operating expenses | 142,803 | 36,500 | 19,141 | 9,864 | 59,550 | 59,785 | 94,321 | 421,964 | |||||||||||||||||||||||||
Contribution / operating margin | $ | 6,023 | $ | 109,550 | $ | 531 | $ | 10,547 | $ | 13,449 | $ | (11,159 | ) | $ | (95,287 | ) | $ | 33,654 | |||||||||||||||
-1 | Unallocated operating expenses include $5.3 million in restructuring expenses. See note 10 for additional information. | ||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Software license fees | $ | 40,299 | $ | 18,823 | $ | 2,861 | $ | 3,685 | $ | - | $ | - | $ | - | $ | 65,668 | |||||||||||||||||
Maintenance fees | 43,175 | 138,924 | 8,182 | 14,865 | - | - | - | 205,146 | |||||||||||||||||||||||||
Subscription fees | 39,396 | - | 1,314 | - | - | - | - | 40,710 | |||||||||||||||||||||||||
Professional services fees | 15,379 | 967 | 6,761 | 2,271 | 68,728 | - | - | 94,106 | |||||||||||||||||||||||||
Application services fees | - | - | - | - | - | 41,129 | - | 41,129 | |||||||||||||||||||||||||
Total revenues | 138,249 | 158,714 | 19,118 | 20,821 | 68,728 | 41,129 | - | 446,759 | |||||||||||||||||||||||||
Operating expenses | 150,155 | 43,129 | 20,441 | 10,025 | 57,058 | 38,067 | 94,147 | 413,022 | |||||||||||||||||||||||||
Contribution / operating margin | $ | (11,906 | ) | $ | 115,585 | $ | (1,323 | ) | $ | 10,796 | $ | 11,670 | $ | 3,062 | $ | (94,147 | ) | $ | 33,737 | ||||||||||||||
The Company does not evaluate assets and capital expenditures on a segment basis, and accordingly such information is not provided. | |||||||||||||||||||||||||||||||||
Financial information regarding geographic operations is presented in the table below (in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||
United States | $ | 145,346 | $ | 138,032 | $ | 287,313 | $ | 282,876 | |||||||||||||||||||||||||
Europe and Africa | 49,768 | 46,527 | 101,492 | 95,901 | |||||||||||||||||||||||||||||
Other international operations | 32,988 | 36,039 | 66,813 | 67,982 | |||||||||||||||||||||||||||||
Total revenues | $ | 228,102 | $ | 220,598 | $ | 455,618 | $ | 446,759 | |||||||||||||||||||||||||
As of | As of | ||||||||||||||||||||||||||||||||
September 30, | March 31, | ||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||
Long-lived assets | |||||||||||||||||||||||||||||||||
United States | $ | 879,347 | $ | 888,032 | |||||||||||||||||||||||||||||
Austria | 209,681 | 201,224 | |||||||||||||||||||||||||||||||
Other | 18,107 | 17,082 | |||||||||||||||||||||||||||||||
Total long-lived assets | $ | 1,107,135 | $ | 1,106,338 | |||||||||||||||||||||||||||||
Long-lived assets are comprised of property and equipment, goodwill and capitalized software. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2013 | |
Debt [Abstract] | ' |
Debt | ' |
Note 9 - Debt | |
The Company has an unsecured revolving credit agreement (the “credit facility”) with Comerica Bank and other lenders. The credit facility, as amended, provides for a revolving line of credit in the amount of $300 million and expires in March 2017. The credit facility also permits the Company to increase the revolving line of credit by an additional $200 million subject to receiving further commitments from lenders and certain other conditions. | |
As of September 30, 2013 and March 31, 2013, the Company’s debt balance under its credit facility was $14.0 million and $18.0 million, respectively, and was classified as long term. | |
The credit facility contains various covenant requirements, including limitations on liens; indebtedness; mergers, consolidations and acquisitions; asset sales; stock repurchases; dividends; investments, loans and advances from the Company; transactions with affiliates; minimum net worth requirements; and limits additional borrowing outside of the facility. The credit facility is also subject to maximum total debt to EBITDA and minimum fixed charge coverage financial covenants. Additionally, the Company's stock repurchases are limited to $50 million from August 8, 2013 through the end of the agreement. The Company was in compliance with the covenants under the credit facility at September 30, 2013. | |
Borrowings under the credit facility bear interest at the base rate (the greatest of the prime rate, the federal funds effective rate plus one percent, or the daily LIBOR rate plus one percent) or the Eurodollar rate, at the Company’s option, plus the applicable margin (which is based on the level of maximum total debt to EBITDA ratio). As of September 30, 2013, interest rates on outstanding borrowings were at a weighted average rate of 1.8%. The Company pays a quarterly fee on the credit facility based on the applicable margin grid. Interest and fees related to the credit facility were $266,000 and $404,000 during the three months ended September 30, 2013 and 2012, respectively, and were $495,000 and $886,000 during the six months ended September 30, 2013 and 2012, respectively. | |
Cash paid for interest during the second quarters of 2014 and 2013 was $281,000 and $419,000, respectively. Cash paid for interest during the first six months of 2014 and 2013 was $547,000 and $931,000, respectively. |
Restructuring_Charges
Restructuring Charges | 6 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Restructuring Charges [Abstract] | ' | ||||||||||||||||||||||||||||||||
Restructuring Charges | ' | ||||||||||||||||||||||||||||||||
Note 10 – Restructuring Charges | |||||||||||||||||||||||||||||||||
In February 2013, the Company approved the initial phase of a restructuring plan designed to achieve cost savings, which involves reductions in our global workforce of approximately 220 employees (less than 5% of our total workforce), including employees across all operating and administrative divisions, and the early termination of certain operating leases and the closing or reduction in size of 20 office facilities worldwide. | |||||||||||||||||||||||||||||||||
During the three and six months ended September 30, 2013, the Company recorded a charge of approximately $233,000 and $5.3 million, respectively, for costs associated with these reductions, primarily related to severance costs for 78 terminated employees. The Company anticipates that approximately $6.3 million in additional employee termination charges and $4.3 million in lease abandonment costs will be taken during the remainder of fiscal 2014 for the initial phase of the restructuring plan, and it is expected that the activities in the initial phase will be completed before March 31, 2014. | |||||||||||||||||||||||||||||||||
The following table summarizes the restructuring accrual as of March 31, 2013 and changes to the accrual during the three months and six months ended September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Employee | Lease | Other | Total | ||||||||||||||||||||||||||||||
Termination | Abandonment | Restructuring | |||||||||||||||||||||||||||||||
Benefits | Costs | Activity | |||||||||||||||||||||||||||||||
Accrual at March 31, 2013 | $ | 4,670 | $ | 2,717 | $ | 80 | $ | 7,467 | |||||||||||||||||||||||||
Restructuring charge | 5,110 | - | 2 | 5,112 | |||||||||||||||||||||||||||||
Payments | (4,770 | ) | (405 | ) | (67 | ) | (5,242 | ) | |||||||||||||||||||||||||
Non-cash charges | (1,791 | ) | - | - | (1,791 | ) | |||||||||||||||||||||||||||
Accrual at June 30, 2013 | $ | 3,219 | $ | 2,312 | $ | 15 | $ | 5,546 | |||||||||||||||||||||||||
Restructuring charge | 196 | 37 | - | 233 | |||||||||||||||||||||||||||||
Payments | (1,815 | ) | (309 | ) | (8 | ) | (2,132 | ) | |||||||||||||||||||||||||
Accrual at September 30, 2013 | $ | 1,600 | $ | 2,040 | $ | 7 | $ | 3,647 | |||||||||||||||||||||||||
The Company evaluates its business segments prior to restructuring charges. Lease abandonment and other restructuring charges were not related to any specific segment. Employee termination benefits related to employees across the business units as follows (in thousands): | |||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Employee termination benefits | $ | 94 | $ | - | $ | - | $ | - | $ | 14 | $ | 9 | $ | 79 | $ | 196 | |||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Employee termination benefits | $ | 1,134 | $ | 384 | $ | 36 | $ | 189 | $ | 98 | $ | 104 | $ | 3,361 | $ | 5,306 | |||||||||||||||||
As of September 30, 2013, $2.8 million of the restructuring accrual was recorded in current “accrued expenses” with the remaining balance of $800,000 recorded in long-term “accrued expenses” in the condensed consolidated balance sheets. | |||||||||||||||||||||||||||||||||
The accruals for employee termination benefits at September 30, 2013 primarily represent the amounts to be paid to employees that have been terminated as a result of initiatives described above. | |||||||||||||||||||||||||||||||||
The accruals for lease abandonment costs at September 30, 2013 represent the expected payments related to leases that have been terminated before the end of the contractual term. For terminated operating leases, the accrual includes the remaining fair value of lease obligations for exited and demised locations, as determined at the cease-use dates of those facilities, net of estimated sublease income that could be reasonably obtained in the future, and will be paid out over the remaining lease terms, the last of which ends in fiscal 2017. Projected sublease income is based on management’s estimates, which are subject to change. |
Contingencies
Contingencies | 6 Months Ended |
Sep. 30, 2013 | |
Contingencies [Abstract] | ' |
Contingencies | ' |
Note 11 – Contingencies | |
The Company is subject to various legal actions and claims incidental to its business. Litigation is subject to many uncertainties and the outcome of individual litigated matters is not predictable with assurance. Based on information currently known, the Company does not believe these will have a material impact on the Company’s financial position, results of operations or cash flows. |
Subsequent_Event
Subsequent Event | 6 Months Ended |
Sep. 30, 2013 | |
Subsequent Event [Abstract] | ' |
Subsequent Event | ' |
Note 12 – Subsequent Event | |
Effective October 1, 2013, the Company terminated a post-retirement consulting agreement with a former executive for cause under the terms of the agreement. Termination of the agreement is anticipated to result in the reversal of various accrued liabilities and the claw back of certain equity awards previously granted to the executive under the terms of the original grant agreements. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
Non-controlling Interest | ' |
Non-controlling Interest | |
In September 2013, Covisint Corporation (“Covisint), previously a wholly owned subsidiary of Compuware Corporation, substantially completed the Covisint Initial Public Offering (“IPO”), and issued 7.36 million shares of its common stock (19.7 percent of shares outstanding after the issuance) at a price to the public of $10 per share. Prior to completion of the Covisint IPO, the Company contributed the assets and liabilities of the Covisint segment to Covisint Corporation. | |
The non-controlling equity interest in Covisint is reflected as non-controlling interest in the accompanying condensed consolidated balance sheets and was $21.1 million as of September 30, 2013. | |
The Covisint IPO was accounted for as an equity transaction in accordance with ASC 810, “Consolidation” and no gain or loss has been recognized as the Company retained the controlling financial interest. This transaction increased the Company’s equity attributable to non-controlling interest by $22.2 million, which represented the carrying value of the non-controlling interest and increased the Company’s additional paid in capital by $44.1 million. | |
Upon completion of the Covisint IPO, Compuware owned 80.3 percent of the economic and voting interest in Covisint. The Company has announced its intention to effect a tax-free spin-off of Covisint shares following the March 2014 expiration of the lock-up period under the Covisint IPO underwriting agreement. The Company has requested a private letter ruling from the Internal Revenue Service (“IRS”) providing that, subject to certain conditions, the anticipated spin-off will be tax-free to Compuware and its stockholders for U.S. federal income tax purposes. The spin-off or other disposition is subject to various conditions, including Board approval, the receipt of any necessary regulatory or other approvals, the receipt of the private letter ruling from the IRS with confirmation of the tax-free nature of the proposed transaction, the receipt of an opinion of counsel and the existence of satisfactory market conditions. | |
There can be no assurance as to when the proposed spin-off or any other disposition will be completed, if at all. Unless and until Compuware ceases to own a controlling financial interest in Covisint, the Company will consolidate Covisint for financial reporting purposes, with a non-controlling interest adjustment for the economic interest in Covisint that Compuware does not own. | |
In connection with the Covisint IPO, the Company entered into various agreements relating to the separation of the Covisint business from the rest of Compuware’s businesses, including a master separation agreement, an employee benefits agreement, a Compuware services agreement, an intellectual property agreement, a registration rights agreement, a shared services agreement and a tax sharing agreement. | |
Basis for Revenue Recognition | ' |
Basis for Revenue Recognition | |
The Company derives its revenue from licensing software products; providing maintenance and support services for those products; providing hosted software; and rendering professional and application services. Our software solutions are comprised of license fees, maintenance fees, subscription fees for hosted software and software related professional services fees. | |
We sometimes enter into arrangements that include both software related deliverables (licensed software products, maintenance services or software related professional services) and non-software deliverables (hosted software, professional services unrelated to our software products or application services). Our hosted software and application services do not qualify as software deliverables because our license grant does not allow the customer the right or capability to take possession of the software. For arrangements that contain both software and non-software deliverables, in accordance with ASC 605 “Revenue Recognition,” we allocate the arrangement consideration to the non-software deliverables as a group, and to the software deliverables as a group (the “Deliverable Groups”). We determine the selling price to allocate the arrangement consideration to the Deliverable Groups based on the following hierarchy of evidence: vendor specific objective evidence of selling price (“VSOE,” meaning price when sold separately) if available; third-party evidence of selling price if VSOE is not available; or best estimated selling price if neither VSOE nor third-party evidence is available. We currently are unable to establish VSOE or third-party evidence of selling price for either our software related deliverables or our non-software deliverables as a group. Therefore, the best estimate of selling price for each Deliverable Group is determined primarily by considering various factors, including, but not limited to stated renewal rates in a contract, if any, the historical selling price of these deliverables in similar stand-alone transactions and pricing practices. Total arrangement consideration is then allocated on the basis of the Deliverable Group’s relative selling price. | |
Once we have allocated the arrangement consideration between the Deliverable Groups, we recognize revenue as described in the respective software license fees, maintenance fees, subscription fees, professional services fees and application services fees sections below. | |
In order for a transaction to be eligible for revenue recognition, the following revenue criteria must be met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. We evaluate collectability based on past customer history, external credit ratings and payment terms within customer agreements. | |
Software license fees | |
The Company's software license agreements provide our customers with a right to use our software perpetually (perpetual licenses) or during a defined term (time-based licenses). | |
Assuming all revenue recognition criteria are met, perpetual license fee revenue is recognized using the residual method, under which the fair value, based on VSOE, of all undelivered elements of the agreement (i.e., maintenance and software related professional services) is deferred. VSOE is based on rates charged for maintenance and professional services when sold separately. The remaining portion of the fee is recognized as license fee revenue upon delivery of the products. | |
For revenue arrangements where there is a lack of VSOE for any undelivered elements, license fee revenue is deferred and recognized upon delivery of those elements or when VSOE can be established. However, when maintenance or software related professional services are the only undelivered elements, the license fee revenue is recognized on a ratable basis over the longer of the maintenance term or the period the software related professional services are expected to be performed. Such transactions include time-based licenses and certain unlimited capacity licenses, as the Company has not established VSOE for the undelivered elements in these arrangements. In order to comply with SEC Regulation S-X, Rule 5-03(b), which requires product, services and other categories of revenue to be displayed separately on the income statement, the Company separates the license fee, maintenance fee and software related professional services fee (which is included in professional services fees) associated with these types of arrangements based on its determination of fair value. The Company applies VSOE for maintenance related to perpetual license transactions and stand-alone software related professional services arrangements as a reasonable and consistent approximation of fair value to separate license fee, maintenance fee and software related professional services fee revenue for income statement classification purposes. | |
The Company offers flexibility to customers purchasing licenses for its products and related maintenance. Terms of these transactions range from standard perpetual license sales that include one year of maintenance to multi-year (generally two to five years), multi-product contracts. The Company allows deferred payment terms with installments collectable over the term of the contract. Based on the Company’s successful collection history for deferred payments, license fees (net of any financing fees) are generally recognized as revenue as discussed above. In certain transactions where it cannot be concluded that the fee is fixed or determinable due to the nature of the deferred payment terms, the Company recognizes revenue as payments become due. Financing fees are recognized as interest income over the term of the related receivable. | |
Maintenance fees | |
The Company’s maintenance arrangements allow customers to receive technical support and advice, including problem resolution services and assistance in product installation, error corrections and any product enhancements released during the maintenance period. The first year of maintenance is generally included with all license agreements. Maintenance fees are recognized ratably over the term of the maintenance arrangements, which generally range from one to five years. | |
Subscription fees | |
Subscription fees relate to arrangements that permit our customers to access and utilize our hosted software delivered on a software-as-a-service (“SaaS”) basis. Subscription fees are deferred upon contract execution and are recognized ratably over the term of the subscription. | |
Professional services fees | |
The Company provides a broad range of IT services for mainframe, distributed, web and mobile environments, including mobile computing application development and integration, package software customization, cloud computing consulting, development and integration of legacy systems, IT portfolio management services, enterprise legacy modernization services and application performance management. The Company also offers implementation, consulting and training services in tandem with the Company’s software solutions offerings, which are referred to as software related professional services. | |
Professional services fees are generally based on hourly or daily rates. Revenues from professional services are recognized in the period the services are performed provided that collection of the related receivable is reasonably assured. For development services rendered under fixed-price contracts, revenues are recognized using the proportional performance method and if it is determined that costs will exceed revenue, the expected loss is recorded at the time the loss becomes apparent. | |
Application services fees | |
Our application services fees consist of fees related to our Covisint on-demand software including associated services. The arrangements do not provide customers the right to take possession of the software at any time, nor do the arrangements contain rights of return. Many of our application services contracts include a services project fee and a recurring fee for ongoing platform-as-a-service (“PaaS”) operations. Certain services related to these projects have stand-alone value (e.g., other vendors provide similar services) and qualify as a separate unit of accounting. Services that have stand-alone value are recognized as delivered. For those services that do not have stand-alone value, the revenue is deferred and recognized over the longer of the committed term of the subscription agreement (generally one to five years) or the expected period over which the customer will receive benefit (generally five years). The recurring fees are recognized ratably over the applicable service period. | |
Deferred revenue | ' |
Deferred revenue | |
Deferred revenue consists primarily of billed and unbilled maintenance and subscription fees related to the future service period of maintenance and subscription agreements in effect at the reporting date. Deferred license, software related services and application services fees are also included in deferred revenue for those arrangements that are being recognized over time. Sales commission costs that directly relate to revenue transactions that are deferred are recorded as “prepaid expenses and other current assets” or non-current “other assets”, as applicable, in the condensed consolidated balance sheets and recognized as "cost of application services" or “sales and marketing” expenses, as applicable, in the condensed consolidated statements of operations over the revenue recognition period of the related customer contracts. | |
Research and development | ' |
Research and development | |
Research and development (“R&D”) costs primarily include the cost of programming personnel and amounted to $31.4 million and $25.9 million for the three months ended September 30, 2013 and 2012, respectively, and $56.6 million and $51.5 million for the six months ended September 30, 2013 and 2012, respectively. R&D costs related to our software solutions are reported as “technology development and support” and for our application services network, the costs are reported as “cost of application services” in the condensed consolidated statements of operations. | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. The Company does not permanently reinvest any earnings in its foreign subsidiaries and recognizes all deferred tax liabilities that arise from outside basis differences in its investment in subsidiaries. | |
The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. These deferred tax assets are subject to periodic assessments as to recoverability and if it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recorded which would increase the provision for income taxes. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. | |
Interest and penalties related to uncertain tax positions are included in the income tax provision. | |
The Company’s effective tax rate for the six months ended September 30, 2013 was 26.1% as compared to 37.5% for the six months ended September 30, 2012. The decline in the effective rate was primarily due to the recording of a benefit related to stock compensation as a result of a change in our expectation regarding the tax deductibility of compensation for a certain officer during the first six months of 2014. The tax deductibility of this officer’s compensation is no longer subject to the tax deduction threshold for officer compensation. Accordingly, a deferred tax asset was recorded related to the stock compensation that was previously expected to be disallowed for tax purposes. | |
Cash paid for income taxes was $17.9 million and $4.6 million for the six months ended September 30, 2013 and 2012, respectively. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this ASU provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We plan to adopt this ASU in fiscal 2015 and do not expect it to have a significant impact on our financial statements. | |
In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210)”. The amendments in this ASU require improved disclosure information about financial instruments and derivative instruments that are either offset or subject to an enforceable master netting arrangement or similar agreement. Subsequently in January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”, which clarifies the types of instruments and transactions that are subject to the offsetting disclosure requirements established by ASU 2011-11. These ASUs should be applied retrospectively for all comparative periods presented for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. The requirements of these ASUs were adopted during our quarter ended June 30, 2013 and did not have a significant impact on our disclosures. |
Financing_Receivables_Tables
Financing Receivables (Tables) | 6 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Financing Receivables [Abstract] | ' | ||||||||||||||||||||
Aged analysis of products and loans financing receivables | ' | ||||||||||||||||||||
The following is an aged analysis of our products and loans financing receivables based on invoice dates as of September 30, 2013 and March 31, 2013 (in thousands): | |||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||
0-29 days | 30-90 days | Greater than | Unbilled | Total | |||||||||||||||||
past | past | 90 days | financing | ||||||||||||||||||
invoice date | invoice date | past | receivables | ||||||||||||||||||
invoice date | |||||||||||||||||||||
Pass rating | |||||||||||||||||||||
Software products | $ | 2,597 | $ | 222 | $ | 573 | $ | 41,290 | $ | 44,682 | |||||||||||
Loans | 2,875 | 2,875 | |||||||||||||||||||
Total | 2,597 | 222 | 573 | 44,165 | 47,557 | ||||||||||||||||
Watch rating | |||||||||||||||||||||
Software products | 170 | 170 | |||||||||||||||||||
Total financing receivables | $ | 2,597 | $ | 222 | $ | 743 | $ | 44,165 | $ | 47,727 | |||||||||||
As of March 31, 2013 | |||||||||||||||||||||
0-29 days | 30-90 days | Greater than | Unbilled | Total | |||||||||||||||||
past | past | 90 days | financing | ||||||||||||||||||
invoice date | invoice date | past | receivables | ||||||||||||||||||
invoice date | |||||||||||||||||||||
Pass rating | |||||||||||||||||||||
Software products | $ | 3,311 | $ | 679 | $ | 1,324 | $ | 42,659 | $ | 47,973 | |||||||||||
Loans | 3,771 | 3,771 | |||||||||||||||||||
Total | 3,311 | 679 | 1,324 | 46,430 | 51,744 | ||||||||||||||||
Watch rating | |||||||||||||||||||||
Software products | 179 | 179 | |||||||||||||||||||
Total financing receivables | $ | 3,311 | $ | 679 | $ | 1,503 | $ | 46,430 | $ | 51,923 | |||||||||||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value of Assets and Liabilities [Abstract] | ' | ||||||||||||||||
Fair Value of Assets and Liabilities | ' | ||||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands): | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Estimated | Quoted Prices in | Significant | Significant | ||||||||||||||
Fair Value | Active Markets for | Other Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents - money market funds | $ | 2,672 | $ | 2,672 | - | - | |||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange derivatives | $ | 61 | - | $ | 61 | - | |||||||||||
As of March 31, 2013 | |||||||||||||||||
Estimated | Quoted Prices in | Significant | Significant | ||||||||||||||
Fair Value | Active Markets for | Other Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents - money market funds | $ | 11,525 | $ | 11,525 | - | - | |||||||||||
Foreign exchange derivatives | $ | 31 | - | $ | 31 | - |
Computation_of_Earnings_per_Co1
Computation of Earnings per Common Share (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Computation of Earnings per Common Share [Abstract] | ' | ||||||||||||||||
Computation of Earnings per Common Share | ' | ||||||||||||||||
Earnings per common share data were computed as follows (in thousands, except per share amounts): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Basic earnings per share: | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Compuware Corporation | $ | 16,340 | $ | 10,594 | $ | 26,307 | $ | 21,062 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding | 214,926 | 215,633 | 214,287 | 216,566 | |||||||||||||
Basic earnings per share | $ | 0.08 | $ | 0.05 | $ | 0.12 | $ | 0.1 | |||||||||
Diluted earnings per share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Compuware Corporation | $ | 16,340 | $ | 10,594 | $ | 26,307 | $ | 21,062 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding | 214,926 | 215,633 | 214,287 | 216,566 | |||||||||||||
Dilutive effect of stock awards | 5,503 | 4,337 | 5,720 | 4,142 | |||||||||||||
Total shares | 220,429 | 219,970 | 220,007 | 220,708 | |||||||||||||
Diluted earnings per share | $ | 0.07 | $ | 0.05 | $ | 0.12 | $ | 0.1 |
Stock_Benefit_Plans_and_StockB1
Stock Benefit Plans and Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Summary of non-vested restricted stock units and performance-based restricted stock unit awards activity | ' | ||||||||||||||||
A summary of non-vested restricted stock units (“RSUs”) and performance-based stock awards (“PSAs” and collectively “Non-vested RSU”) activity under the Company’s LTIP as of September 30, 2013, and changes during the six months then ended is presented below (shares and intrinsic value in thousands): | |||||||||||||||||
Six Months Ended | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Shares | Weighted | Aggregate | |||||||||||||||
Average | Intrinsic | ||||||||||||||||
Grant-Date | Value | ||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested RSU outstanding as of March 31, 2013 | 4,850 | ||||||||||||||||
Granted | 508 | $ | 11.26 | ||||||||||||||
Dividend equivalents issued | 78 | 10.94 | |||||||||||||||
Released | (945 | ) | $ | 10,166 | |||||||||||||
Forfeited | (52 | ) | |||||||||||||||
Non-vested RSU outstanding as of September 30, 2013 | 4,439 | ||||||||||||||||
Stock award compensation expense | ' | ||||||||||||||||
Stock award compensation expense was allocated as follows (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock-based compensation classified as: | |||||||||||||||||
Cost of maintenance fees | $ | 170 | $ | 235 | $ | 348 | $ | 452 | |||||||||
Cost of subscription fees | 1 | 18 | 30 | 53 | |||||||||||||
Cost of professional services | 93 | 68 | 177 | 160 | |||||||||||||
Cost of application services | 10,020 | 387 | 10,506 | 709 | |||||||||||||
Technology development and support | 530 | 730 | 1,105 | 1,374 | |||||||||||||
Sales and marketing | 808 | 1,403 | 3,584 | 3,187 | |||||||||||||
Administrative and general | 3,253 | 4,049 | 7,771 | 9,244 | |||||||||||||
Restructuring costs | - | - | 1,791 | - | |||||||||||||
Total stock-based compensation expense before income tax provision | $ | 14,875 | $ | 6,890 | $ | 25,312 | $ | 15,179 | |||||||||
Stock Options - Service-Based Vesting [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Summary of stock option activity | ' | ||||||||||||||||
A summary of activity for options that vest based on service conditions only under the Company’s stock-based compensation plans as of September 30, 2013, and changes during the six months then ended is presented below (shares and intrinsic value in thousands): | |||||||||||||||||
Six Months Ended | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term in Years | |||||||||||||||||
Options outstanding as of March 31, 2013 | 19,076 | $ | 8.44 | ||||||||||||||
Granted | 1,146 | 10.63 | |||||||||||||||
Exercised | (1,950 | ) | 7.51 | $ | 6,945 | ||||||||||||
Forfeited | (91 | ) | 10.73 | ||||||||||||||
Cancelled/expired | (87 | ) | 9.36 | ||||||||||||||
Options outstanding as of September 30, 2013 | 18,094 | $ | 8.66 | 6.69 | $ | 44,756 | |||||||||||
Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2013 | 17,416 | $ | 8.61 | 6.09 | $ | 43,869 | |||||||||||
Options exercisable as of September 30, 2013 | 12,317 | $ | 8.3 | 5.8 | $ | 34,919 | |||||||||||
Stock Options - Performance and Service-Based Vesting [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Summary of stock option activity | ' | ||||||||||||||||
A summary of activity for options that vest based on the achievement of both service and performance conditions under the Company’s stock-based compensation plans as of September 30, 2013, and changes during the six months then ended is presented below (shares and intrinsic value in thousands): | |||||||||||||||||
Six Months Ended | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term in Years | |||||||||||||||||
Options outstanding as of March 31, 2013 | 3,648 | $ | 9.79 | ||||||||||||||
Granted | 594 | 11.3 | |||||||||||||||
Forfeited/Cancelled | (1,031 | ) | 9.91 | ||||||||||||||
Options outstanding as of September 30, 2013 | 3,211 | $ | 10.03 | 9 | $ | 3,583 | |||||||||||
Options vested and expected to vest, net of estimated forfeitures, as of September 30, 2013 | 479 | $ | 11.3 | 9.62 | $ | - | |||||||||||
Options exercisable as of September 30, 2013 | - | $ | - | - | $ | - | |||||||||||
Stock Options [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Weighted average fair value of stock options granted and assumptions used to estimate fair value | ' | ||||||||||||||||
The weighted average fair value of stock options granted during the periods and the assumptions used to estimate those values using the Black-Scholes option pricing model were as follows: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected volatility | 39.52 | % | 40.81 | % | |||||||||||||
Risk-free interest rate | 1.59 | % | 0.95 | % | |||||||||||||
Expected lives at date of grant (in years) | 6.3 | 6.3 | |||||||||||||||
Weighted-average fair value of the options granted | $ | 2.69 | $ | 4.03 | |||||||||||||
Dividend yield assumption (1) | 4.42 | % | 0 | % | |||||||||||||
-1 | In January 2013, our Board of Directors announced its intention to begin paying cash dividends totaling $0.50 per share annually. Prior to that, the Company had never paid a dividend or announced any intentions to pay a dividend. |
Goodwill_Capitalized_Software_1
Goodwill, Capitalized Software and Other Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Goodwill, Capitalized Software and Other Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||||||
Change in carrying amount of goodwill by reportable unit | ' | ||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill by reporting unit during the six months ended September 30, 2013 are summarized as follows (in thousands): | |||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Total | |||||||||||||||||||||||
Goodwill as of March 31, 2013 | $ | 469,947 | $ | 140,557 | $ | 22,079 | $ | 21,280 | $ | 42,794 | $ | 25,385 | $ | 722,042 | |||||||||||||||
Effect of foreign currency translation | 10,223 | - | - | - | - | - | 10,223 | ||||||||||||||||||||||
Goodwill as of September 30, 2013 | $ | 480,170 | $ | 140,557 | $ | 22,079 | $ | 21,280 | $ | 42,794 | $ | 25,385 | $ | 732,265 | |||||||||||||||
Components of capitalized software and other intangible assets | ' | ||||||||||||||||||||||||||||
The components of the Company’s capitalized software and other intangible assets are as follows (in thousands): | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||||||||||
Amount | Amortization | Amount | |||||||||||||||||||||||||||
Unamortized intangible assets: | |||||||||||||||||||||||||||||
Trademarks | $ | 4,418 | $ | 4,418 | |||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||
Capitalized software | |||||||||||||||||||||||||||||
Internally developed | 255,521 | $ | (194,653 | ) | 60,868 | ||||||||||||||||||||||||
Purchased | 166,523 | (147,785 | ) | 18,738 | |||||||||||||||||||||||||
Customer relationship | 52,208 | (27,371 | ) | 24,837 | |||||||||||||||||||||||||
Other | 20,364 | (18,063 | ) | 2,301 | |||||||||||||||||||||||||
Total amortized intangible assets | $ | 494,616 | $ | (387,872 | ) | $ | 106,744 | ||||||||||||||||||||||
As of March 31, 2013 | |||||||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||||||||||
Amount | Amortization | Amount | |||||||||||||||||||||||||||
Unamortized intangible assets: | |||||||||||||||||||||||||||||
Trademarks | $ | 4,428 | $ | 4,428 | |||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||
Capitalized software | |||||||||||||||||||||||||||||
Internally developed | 243,872 | $ | (184,732 | ) | 59,140 | ||||||||||||||||||||||||
Purchased | 165,117 | (142,453 | ) | 22,664 | |||||||||||||||||||||||||
Customer relationship | 52,036 | (25,281 | ) | 26,755 | |||||||||||||||||||||||||
Other | 19,884 | (16,208 | ) | 3,676 | |||||||||||||||||||||||||
Total amortized intangible assets | $ | 480,909 | $ | (368,674 | ) | $ | 112,235 | ||||||||||||||||||||||
Amortization expense of capitalized software, customer relationship and other intangible assets | ' | ||||||||||||||||||||||||||||
Amortization expense of capitalized software, customer relationship and other intangible assets was as follows (in thousands): | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||
Capitalized software | |||||||||||||||||||||||||||||
Internally developed | $ | 5,103 | $ | 3,793 | $ | 9,922 | $ | 7,263 | |||||||||||||||||||||
Purchased | 2,391 | 2,372 | 4,761 | 4,779 | |||||||||||||||||||||||||
Customer relationship | 1,032 | 1,041 | 2,063 | 2,085 | |||||||||||||||||||||||||
Other | 770 | 898 | 1,532 | 1,817 | |||||||||||||||||||||||||
Total amortization expense | $ | 9,296 | $ | 8,104 | $ | 18,278 | $ | 15,944 | |||||||||||||||||||||
Expected future annual amortization expense | ' | ||||||||||||||||||||||||||||
Based on the capitalized software, customer relationship and other intangible assets recorded through September 30, 2013, the annual amortization expense over the next five fiscal years and thereafter is expected to be as follows (in thousands): | |||||||||||||||||||||||||||||
Fiscal Year Ended March 31, | |||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||
Capitalized software | $ | 29,008 | $ | 25,237 | $ | 21,622 | $ | 11,946 | $ | 5,470 | $ | 1,006 | |||||||||||||||||
Customer relationship | 4,131 | 4,136 | 4,136 | 3,972 | 3,828 | 6,697 | |||||||||||||||||||||||
Other | 3,067 | 766 | - | - | - | - | |||||||||||||||||||||||
Total amortization expense | $ | 36,206 | $ | 30,139 | $ | 25,758 | $ | 15,918 | $ | 9,298 | $ | 7,703 |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||||||||||
Financial information for business segments | ' | ||||||||||||||||||||||||||||||||
Financial information for the Company’s business segments was as follows (in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
& Eliminations (1) | |||||||||||||||||||||||||||||||||
Software license fees | $ | 24,256 | $ | 8,335 | $ | 958 | $ | 2,161 | $ | - | $ | - | $ | - | $ | 35,710 | |||||||||||||||||
Maintenance fees | 24,394 | 64,425 | 4,247 | 7,434 | - | - | - | 100,500 | |||||||||||||||||||||||||
Subscription fees | 19,931 | - | 720 | - | - | - | - | 20,651 | |||||||||||||||||||||||||
Professional services fees | 6,796 | 31 | 3,202 | 986 | 36,013 | - | (312 | ) | 46,716 | ||||||||||||||||||||||||
Application services fees | - | - | - | - | - | 24,525 | - | 24,525 | |||||||||||||||||||||||||
Total revenues | 75,377 | 72,791 | 9,127 | 10,581 | 36,013 | 24,525 | (312 | ) | 228,102 | ||||||||||||||||||||||||
Operating expenses | 68,757 | 17,324 | 8,827 | 4,694 | 28,918 | 34,362 | 43,330 | 206,212 | |||||||||||||||||||||||||
Contribution / operating margin | $ | 6,620 | $ | 55,467 | $ | 300 | $ | 5,887 | $ | 7,095 | $ | (9,837 | ) | $ | (43,642 | ) | $ | 21,890 | |||||||||||||||
-1 | Unallocated operating expenses include $233,000 in restructuring expenses. See note 10 for additional information. | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Software license fees | $ | 17,942 | $ | 9,773 | $ | 2,068 | $ | 1,891 | $ | - | $ | - | $ | - | $ | 31,674 | |||||||||||||||||
Maintenance fees | 22,410 | 68,378 | 4,052 | 7,357 | - | - | - | 102,197 | |||||||||||||||||||||||||
Subscription fees | 19,544 | - | 687 | - | - | - | - | 20,231 | |||||||||||||||||||||||||
Professional services fees | 7,184 | 674 | 3,317 | 1,095 | 33,684 | - | - | 45,954 | |||||||||||||||||||||||||
Application services fees | - | - | - | - | - | 20,542 | - | 20,542 | |||||||||||||||||||||||||
Total revenues | 67,080 | 78,825 | 10,124 | 10,343 | 33,684 | 20,542 | - | 220,598 | |||||||||||||||||||||||||
Operating expenses | 74,059 | 20,284 | 10,752 | 4,606 | 28,138 | 20,051 | 45,534 | 203,424 | |||||||||||||||||||||||||
Contribution / operating margin | $ | (6,979 | ) | $ | 58,541 | $ | (628 | ) | $ | 5,737 | $ | 5,546 | $ | 491 | $ | (45,534 | ) | $ | 17,174 | ||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
& Eliminations (1) | |||||||||||||||||||||||||||||||||
Software license fees | $ | 46,267 | $ | 18,067 | $ | 3,154 | $ | 3,628 | $ | - | $ | - | $ | - | $ | 71,116 | |||||||||||||||||
Maintenance fees | 48,098 | 127,883 | 8,374 | 14,673 | - | - | - | 199,028 | |||||||||||||||||||||||||
Subscription fees | 40,063 | - | 1,373 | - | - | - | - | 41,436 | |||||||||||||||||||||||||
Professional services fees | 14,398 | 100 | 6,771 | 2,110 | 72,999 | - | (966 | ) | 95,412 | ||||||||||||||||||||||||
Application services fees | - | - | - | - | - | 48,626 | - | 48,626 | |||||||||||||||||||||||||
Total revenues | 148,826 | 146,050 | 19,672 | 20,411 | 72,999 | 48,626 | (966 | ) | 455,618 | ||||||||||||||||||||||||
Operating expenses | 142,803 | 36,500 | 19,141 | 9,864 | 59,550 | 59,785 | 94,321 | 421,964 | |||||||||||||||||||||||||
Contribution / operating margin | $ | 6,023 | $ | 109,550 | $ | 531 | $ | 10,547 | $ | 13,449 | $ | (11,159 | ) | $ | (95,287 | ) | $ | 33,654 | |||||||||||||||
-1 | Unallocated operating expenses include $5.3 million in restructuring expenses. See note 10 for additional information. | ||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Software license fees | $ | 40,299 | $ | 18,823 | $ | 2,861 | $ | 3,685 | $ | - | $ | - | $ | - | $ | 65,668 | |||||||||||||||||
Maintenance fees | 43,175 | 138,924 | 8,182 | 14,865 | - | - | - | 205,146 | |||||||||||||||||||||||||
Subscription fees | 39,396 | - | 1,314 | - | - | - | - | 40,710 | |||||||||||||||||||||||||
Professional services fees | 15,379 | 967 | 6,761 | 2,271 | 68,728 | - | - | 94,106 | |||||||||||||||||||||||||
Application services fees | - | - | - | - | - | 41,129 | - | 41,129 | |||||||||||||||||||||||||
Total revenues | 138,249 | 158,714 | 19,118 | 20,821 | 68,728 | 41,129 | - | 446,759 | |||||||||||||||||||||||||
Operating expenses | 150,155 | 43,129 | 20,441 | 10,025 | 57,058 | 38,067 | 94,147 | 413,022 | |||||||||||||||||||||||||
Contribution / operating margin | $ | (11,906 | ) | $ | 115,585 | $ | (1,323 | ) | $ | 10,796 | $ | 11,670 | $ | 3,062 | $ | (94,147 | ) | $ | 33,737 | ||||||||||||||
Financial information regarding geographic operations | ' | ||||||||||||||||||||||||||||||||
Financial information regarding geographic operations is presented in the table below (in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||
United States | $ | 145,346 | $ | 138,032 | $ | 287,313 | $ | 282,876 | |||||||||||||||||||||||||
Europe and Africa | 49,768 | 46,527 | 101,492 | 95,901 | |||||||||||||||||||||||||||||
Other international operations | 32,988 | 36,039 | 66,813 | 67,982 | |||||||||||||||||||||||||||||
Total revenues | $ | 228,102 | $ | 220,598 | $ | 455,618 | $ | 446,759 | |||||||||||||||||||||||||
As of | As of | ||||||||||||||||||||||||||||||||
September 30, | March 31, | ||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||
Long-lived assets | |||||||||||||||||||||||||||||||||
United States | $ | 879,347 | $ | 888,032 | |||||||||||||||||||||||||||||
Austria | 209,681 | 201,224 | |||||||||||||||||||||||||||||||
Other | 18,107 | 17,082 | |||||||||||||||||||||||||||||||
Total long-lived assets | $ | 1,107,135 | $ | 1,106,338 | |||||||||||||||||||||||||||||
Long-lived assets are comprised of property and equipment, goodwill and capitalized software. |
Restructuring_charges_Tables
Restructuring charges (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Restructuring Charges [Abstract] | ' | ||||||||||||||||||||||||||||||||
Restructuring activity | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the restructuring accrual as of March 31, 2013 and changes to the accrual during the three months and six months ended September 30, 2013 (in thousands): | |||||||||||||||||||||||||||||||||
Employee | Lease | Other | Total | ||||||||||||||||||||||||||||||
Termination | Abandonment | Restructuring | |||||||||||||||||||||||||||||||
Benefits | Costs | Activity | |||||||||||||||||||||||||||||||
Accrual at March 31, 2013 | $ | 4,670 | $ | 2,717 | $ | 80 | $ | 7,467 | |||||||||||||||||||||||||
Restructuring charge | 5,110 | - | 2 | 5,112 | |||||||||||||||||||||||||||||
Payments | (4,770 | ) | (405 | ) | (67 | ) | (5,242 | ) | |||||||||||||||||||||||||
Non-cash charges | (1,791 | ) | - | - | (1,791 | ) | |||||||||||||||||||||||||||
Accrual at June 30, 2013 | $ | 3,219 | $ | 2,312 | $ | 15 | $ | 5,546 | |||||||||||||||||||||||||
Restructuring charge | 196 | 37 | - | 233 | |||||||||||||||||||||||||||||
Payments | (1,815 | ) | (309 | ) | (8 | ) | (2,132 | ) | |||||||||||||||||||||||||
Accrual at September 30, 2013 | $ | 1,600 | $ | 2,040 | $ | 7 | $ | 3,647 | |||||||||||||||||||||||||
Employee termination benefits | ' | ||||||||||||||||||||||||||||||||
Employee termination benefits related to employees across the business units as follows (in thousands): | |||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Employee termination benefits | $ | 94 | $ | - | $ | - | $ | - | $ | 14 | $ | 9 | $ | 79 | $ | 196 | |||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
APM | MF | CP | UF | PS | AS | Unallocated | Total | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Employee termination benefits | $ | 1,134 | $ | 384 | $ | 36 | $ | 189 | $ | 98 | $ | 104 | $ | 3,361 | $ | 5,306 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Noncontrolling Interest [Abstract] | ' | ' | ' | ' | ' |
Number of new shares issued (in shares) | 7.36 | ' | 7.36 | ' | ' |
Shares outstanding after issue (in hundredths) | ' | ' | 20.00% | ' | ' |
Non-controlling interest | $21,109,000 | ' | $21,109,000 | ' | $0 |
Voting power and economic interest (in hundredths) | 80.00% | ' | 80.00% | ' | ' |
Price per share | $10 | ' | $10 | ' | ' |
Increase of non-controlling interest | ' | ' | 22,200,000 | ' | ' |
Increase in additional paid in capital | ' | ' | 44,100,000 | ' | ' |
Basis for Revenue Recognition [Abstract] | ' | ' | ' | ' | ' |
Standard perpetual license sales, minimum term of maintenance agreement | ' | ' | '1 year | ' | ' |
Multi-product contracts, minimum term of maintenance agreement | ' | ' | '2 years | ' | ' |
Multi-product contracts, maximum term of maintenance agreement | ' | ' | '5 years | ' | ' |
Maintenance fees [Abstract] | ' | ' | ' | ' | ' |
Minimum term over which maintenance fees ratably recognized | ' | ' | '1 year | ' | ' |
Maximum term over which maintenance fees ratably recognized | ' | ' | '5 years | ' | ' |
Application services fees [Abstract] | ' | ' | ' | ' | ' |
Minimum term of customer arrangement for professional services without stand-alone value | ' | ' | '1 year | ' | ' |
Maximum term of customer arrangement for professional services without stand-alone value | ' | ' | '5 years | ' | ' |
Expected period over which customer will receive benefit | ' | ' | '5 years | ' | ' |
Research and development [Abstract] | ' | ' | ' | ' | ' |
Research and development costs | 31,400,000 | 25,900,000 | 56,600,000 | 51,500,000 | ' |
Income Taxes [Abstract] | ' | ' | ' | ' | ' |
Effective tax rate (in hundredths) | ' | ' | 26.10% | 37.50% | ' |
Cash paid for income taxes | ' | ' | $17,900,000 | $4,600,000 | ' |
Financing_Receivables_Details
Financing Receivables (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 |
Financing Receivables [Abstract] | ' | ' |
Minimum finance receivable deferred payment term | '1 year | ' |
Annual interest rate on loan receivable (in hundredths) | 7.00% | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
0-29 days past invoice date | $2,597 | $3,311 |
30-90 days past invoice date | 222 | 679 |
Greater than 90 days past invoice date | 743 | 1,503 |
Unbilled | 44,165 | 46,430 |
Total financing receivables | 47,727 | 51,923 |
Allowance for credit losses on financing receivables | 170,000 | 179,000 |
Pass Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
0-29 days past invoice date | 2,597 | 3,311 |
30-90 days past invoice date | 222 | 679 |
Greater than 90 days past invoice date | 573 | 1,324 |
Unbilled | 44,165 | 46,430 |
Total financing receivables | 47,557 | 51,744 |
Pass Rating [Member] | Software products [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
0-29 days past invoice date | 2,597 | 3,311 |
30-90 days past invoice date | 222 | 679 |
Greater than 90 days past invoice date | 573 | 1,324 |
Unbilled | 41,290 | 42,659 |
Total financing receivables | 44,682 | 47,973 |
Pass Rating [Member] | Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Unbilled | 2,875 | 3,771 |
Total financing receivables | 2,875 | 3,771 |
Watch Rating [Member] | Software products [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Greater than 90 days past invoice date | 170 | 179 |
Total financing receivables | $170 | $179 |
Foreign_Currency_Transactions_1
Foreign Currency Transactions and Derivatives (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Foreign Currency Transactions and Derivatives [Abstract] | ' | ' | ' | ' | ' |
Foreign currency net gains or (losses) resulting from assets and liabilities denominated in non-local currency and current inter-company balances | ($2,400,000) | ($1,800,000) | ($3,000,000) | ($1,100,000) | ' |
Hedging transaction net (loss) from foreign exchange derivative contracts | 887,000 | 684,000 | 897,000 | 471,000 | ' |
Derivative, maturity date | ' | ' | 31-Oct-13 | ' | 30-Apr-13 |
Amount of derivative contracts maturing | 1,800,000 | ' | 1,800,000 | ' | 1,800,000 |
Amount of derivative contracts to purchase | $30,100,000 | ' | $30,100,000 | ' | $15,500,000 |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Details) (Recurring Basis [Member], USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimated Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents - money market funds | $2,672 | $11,525 |
Liabilities: | ' | ' |
Foreign exchange derivatives | 61 | 31 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents - money market funds | 2,672 | 11,525 |
Liabilities: | ' | ' |
Foreign exchange derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents - money market funds | 0 | 0 |
Liabilities: | ' | ' |
Foreign exchange derivatives | 61 | 31 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents - money market funds | 0 | 0 |
Liabilities: | ' | ' |
Foreign exchange derivatives | $0 | $0 |
Computation_of_Earnings_per_Co2
Computation of Earnings per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic earnings per share: | ' | ' | ' | ' |
Numerator: Net income attributable to Compuware Corporation | $16,340 | $10,594 | $26,307 | $21,062 |
Denominator: | ' | ' | ' | ' |
Weighted-average common shares outstanding (in shares) | 214,926,000 | 215,633,000 | 214,287,000 | 216,566,000 |
Basic earnings per share (in dollars per share) | $0.08 | $0.05 | $0.12 | $0.10 |
Diluted earnings per share: | ' | ' | ' | ' |
Numerator: Net income attributable to Compuware Corporation | $16,340 | $10,594 | $26,307 | $21,062 |
Denominator: | ' | ' | ' | ' |
Weighted-average common shares outstanding (in shares) | 214,926,000 | 215,633,000 | 214,287,000 | 216,566,000 |
Dilutive effect of stock awards (in shares) | 5,503,000 | 4,337,000 | 5,720,000 | 4,142,000 |
Total shares (in shares) | 220,429,000 | 219,970,000 | 220,007,000 | 220,708,000 |
Diluted earnings per share (in dollars per share) | $0.07 | $0.05 | $0.12 | $0.10 |
Anti-dilutive shares related to stock awards excluded from EPS calculation (in shares) | 3,300,000 | 6,900,000 | 2,600,000 | 11,500,000 |
Performance shares not included in EPS (in shares) | 5,100,000 | 1,700,000 | 5,200,000 | 1,600,000 |
Stock_Benefit_Plans_and_StockB2
Stock Benefit Plans and Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Percent company match for employee 401(k) contributions (in hundredths) | ' | ' | 33.00% | ' | ||
Limit on percent company match for employee 401(k) contributions (in hundredths) | ' | ' | 2.00% | ' | ||
Maximum vesting percentage 401(k) (in hundredths) | ' | ' | 100.00% | ' | ||
Years of service to be fully vested in 401(k) matching contributions | ' | ' | '3 years | ' | ||
Stock options, weighted average fair value assumptions [Abstract] | ' | ' | ' | ' | ||
Announced dividend per share (in dollars per share) | $0.50 | ' | $0.50 | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | $14,875,000 | $6,890,000 | $25,312,000 | $15,179,000 | ||
Quarterly dividend (in dollars per share) | $0.13 | ' | $0.13 | ' | ||
Cost of maintenance fees [Member] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 170,000 | 235,000 | 348,000 | 452,000 | ||
Cost of subscription fees [Member] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 1,000 | 18,000 | 30,000 | 53,000 | ||
Cost of professional services [Member] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 93,000 | 68,000 | 177,000 | 160,000 | ||
Cost of application services [Member] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 10,020,000 | 387,000 | 10,506,000 | 709,000 | ||
Technology development and support [Member] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 530,000 | 730,000 | 1,105,000 | 1,374,000 | ||
Sales and marketing [Member] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 808,000 | 1,403,000 | 3,584,000 | 3,187,000 | ||
Administrative and general [Member] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 3,253,000 | 4,049,000 | 7,771,000 | 9,244,000 | ||
Restructuring costs [Member] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 0 | 0 | 1,791,000 | 0 | ||
Stock Options [Member] | ' | ' | ' | ' | ||
Stock options, weighted average fair value assumptions [Abstract] | ' | ' | ' | ' | ||
Expected volatility (in hundredths) | ' | ' | 39.52% | 40.81% | ||
Risk-free interest rate (in hundredths) | ' | ' | 1.59% | 0.95% | ||
Expected lives at date of grant (in years) | ' | ' | '6 years 3 months 18 days | '6 years 3 months 18 days | ||
Weighted-average fair value of the options granted | ' | ' | $2.69 | $4.03 | ||
Dividend yield assumption | ' | ' | 4.42% | [1] | 0.00% | [1] |
Fair value of stock options vested (in dollars per share) | ' | ' | $3.98 | $4 | ||
Stock Options - Service-Based Vesting [Member] | ' | ' | ' | ' | ||
Stock option activity [Roll Forward] | ' | ' | ' | ' | ||
Options outstanding, beginning of period (in shares) | ' | ' | 19,076,000 | ' | ||
Granted (in shares) | ' | ' | 1,146,000 | ' | ||
Exercised (in shares) | ' | ' | -1,950,000 | ' | ||
Forfeited (in shares) | ' | ' | -91,000 | ' | ||
Cancelled/expired (in shares) | ' | ' | -87,000 | ' | ||
Options outstanding, end of period (in shares) | 18,094,000 | ' | 18,094,000 | ' | ||
Options vested and expected to vest, net of estimated forfeitures, as of end of period (in shares) | 17,416,000 | ' | 17,416,000 | ' | ||
Options exercisable as of end of period (in shares) | 12,317,000 | ' | 12,317,000 | ' | ||
Weighted average exercise price [Abstract] | ' | ' | ' | ' | ||
Options outstanding (in dollars per share) | ' | ' | $8.44 | ' | ||
Granted (in dollars per share) | ' | ' | $10.63 | ' | ||
Exercised (in dollars per share) | ' | ' | $7.51 | ' | ||
Forfeited (in dollars per share) | ' | ' | $10.73 | ' | ||
Cancelled/expired (in dollars per share) | ' | ' | $9.36 | ' | ||
Options outstanding as of end of period (in dollars per share) | $8.66 | ' | $8.66 | ' | ||
Options vested and expected to vest, net of estimated forfeitures, as of end of period (in dollars per share) | $8.61 | ' | $8.61 | ' | ||
Options exercisable as of end of period (in dollars per share) | $8.30 | ' | $8.30 | ' | ||
Weighted average remaining contractual term [Abstract] | ' | ' | ' | ' | ||
Options outstanding as of end of period | ' | ' | '6 years 8 months 8 days | ' | ||
Options vested and expected to vest, net of estimated forfeitures, as of end of period | ' | ' | '6 years 1 month 2 days | ' | ||
Options exercisable as of end of period | ' | ' | '5 years 9 months 18 days | ' | ||
Aggregate intrinsic value [Abstract] | ' | ' | ' | ' | ||
Exercised | ' | ' | 6,945,000 | ' | ||
Options outstanding as of end of period | 44,756,000 | ' | 44,756,000 | ' | ||
Options vested and expected to vest, net of estimated forfeitures, as of end of period | 43,869,000 | ' | 43,869,000 | ' | ||
Options exercisable as of end of period | 34,919,000 | ' | 34,919,000 | ' | ||
Stock Options - Performance and Service-Based Vesting [Member] | ' | ' | ' | ' | ||
Stock option activity [Roll Forward] | ' | ' | ' | ' | ||
Options outstanding, beginning of period (in shares) | ' | ' | 3,648,000 | ' | ||
Granted (in shares) | ' | ' | 594,000 | ' | ||
Forfeitures/cancelled (in shares) | ' | ' | -1,031,000 | ' | ||
Options outstanding, end of period (in shares) | 3,211,000 | ' | 3,211,000 | ' | ||
Options vested and expected to vest, net of estimated forfeitures, as of end of period (in shares) | 479,000 | ' | 479,000 | ' | ||
Options exercisable as of end of period (in shares) | 0 | ' | 0 | ' | ||
Weighted average exercise price [Abstract] | ' | ' | ' | ' | ||
Options outstanding (in dollars per share) | ' | ' | $9.79 | ' | ||
Granted (in dollars per share) | ' | ' | $11.30 | ' | ||
Forfeited (in dollars per share) | ' | ' | $9.91 | ' | ||
Options outstanding as of end of period (in dollars per share) | $10.03 | ' | $10.03 | ' | ||
Options vested and expected to vest, net of estimated forfeitures, as of end of period (in dollars per share) | $11.30 | ' | $11.30 | ' | ||
Options exercisable as of end of period (in dollars per share) | $0 | ' | $0 | ' | ||
Weighted average remaining contractual term [Abstract] | ' | ' | ' | ' | ||
Options outstanding as of end of period | ' | ' | '9 years | ' | ||
Options vested and expected to vest, net of estimated forfeitures, as of end of period | ' | ' | '9 years 7 months 13 days | ' | ||
Options exercisable as of end of period | ' | ' | '0 days | ' | ||
Aggregate intrinsic value [Abstract] | ' | ' | ' | ' | ||
Options outstanding as of end of period | 3,583,000 | ' | 3,583,000 | ' | ||
Options vested and expected to vest, net of estimated forfeitures, as of end of period | 0 | ' | 0 | ' | ||
Options exercisable as of end of period | 0 | ' | 0 | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Total stock-based compensation expense before income taxes | 88,000 | ' | 415,000 | ' | ||
Unrecognized compensation cost, net of estimated forfeitures | 38,000,000 | ' | 38,000,000 | ' | ||
Unrecognized compensation cost, weighted-average period of recognition | ' | ' | '2 years 0 months 25 days | ' | ||
Performance-based Restricted Stock Unit Awards [Member] | ' | ' | ' | ' | ||
Non-vested restricted stock units and performance-based restricted stock unit awards [Roll Forward] | ' | ' | ' | ' | ||
Granted (in shares) | ' | ' | 31,000 | ' | ||
Covisint LTIP (2009) [Member] | Stock Options [Member] | ' | ' | ' | ' | ||
Stock option activity [Roll Forward] | ' | ' | ' | ' | ||
Options outstanding, end of period (in shares) | 4,400,000 | ' | 4,400,000 | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Cumulative expense related to stock option | 12,500,000 | ' | ' | ' | ||
Stock split approved by board of directors | ' | ' | '30-for-1 | ' | ||
Covisint LTIP (2009) [Member] | Performance-based Restricted Stock Unit Awards [Member] | ' | ' | ' | ' | ||
Non-vested restricted stock units and performance-based restricted stock unit awards [Roll Forward] | ' | ' | ' | ' | ||
Non-vested awards outstanding as of end of period (in shares) | 1,500,000 | ' | 1,500,000 | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Vested PSAs for a change in control transaction or an incomplete IPO (in shares) | 1,100,000 | ' | 1,100,000 | ' | ||
Reversal of performance shares award | ' | ' | 2,900,000 | ' | ||
LTIP (2007) [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Maximum percentage of employee compensation allowed to be withheld (in hundredths) | ' | ' | 10.00% | ' | ||
Discount rate for purchase of common stock (in hundredths) | ' | ' | 5.00% | ' | ||
LTIP (2007) [Member] | Non-vested RSU [Member] | ' | ' | ' | ' | ||
Non-vested restricted stock units and performance-based restricted stock unit awards [Roll Forward] | ' | ' | ' | ' | ||
Non-vested awards outstanding as of beginning of period (in shares) | ' | ' | 4,850,000 | ' | ||
Granted (in shares) | ' | ' | 508,000 | ' | ||
Dividend Equivalents Issued (in shares) | ' | ' | 78,000 | ' | ||
Released (in shares) | ' | ' | -945,000 | ' | ||
Forfeited (in shares) | ' | ' | -52,000 | ' | ||
Non-vested awards outstanding as of end of period (in shares) | 4,439,000 | ' | 4,439,000 | ' | ||
Weighted Average Grant-Date Fair Value [Abstract] | ' | ' | ' | ' | ||
Granted (in dollars per share) | ' | ' | $11.26 | ' | ||
Dividend Equivalents Issue (in dollars per share) | ' | ' | $10.94 | ' | ||
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ||
Released | ' | ' | 10,166,000 | ' | ||
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Expense recognized related to 401(k) program | $1,100,000 | $1,100,000 | $2,300,000 | $2,400,000 | ||
[1] | (1)B B B B B B In January 2013, our Board of Directors announced its intention to begin paying cash dividends totaling $0.50 per share annually. Prior to that, the Company had never paid a dividend or announced any intentions to pay a dividend. |
Goodwill_Capitalized_Software_2
Goodwill, Capitalized Software and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill as of beginning of period | ' | ' | $722,042 | ' | ' |
Effect of foreign currency translation | ' | ' | 10,223 | ' | ' |
Goodwill as of end of period | 732,265 | ' | 732,265 | ' | ' |
Capitalized software and other intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Amount, amortized intangible assets | 494,616 | ' | 494,616 | ' | 480,909 |
Accumulated Amortization | -387,872 | ' | -387,872 | ' | -368,674 |
Net Carrying Amount, amortized intangible assets | 106,744 | ' | 106,744 | ' | 112,235 |
Amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Amortization Expense | 9,296 | 8,104 | 18,278 | 15,944 | ' |
Future amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
2014 | 36,206 | ' | 36,206 | ' | ' |
2015 | 30,139 | ' | 30,139 | ' | ' |
2016 | 25,758 | ' | 25,758 | ' | ' |
2017 | 15,918 | ' | 15,918 | ' | ' |
2018 | 9,298 | ' | 9,298 | ' | ' |
Thereafter | 7,703 | ' | 7,703 | ' | ' |
Capitalized Software [Member] | ' | ' | ' | ' | ' |
Capitalized software and other intangible assets [Abstract] | ' | ' | ' | ' | ' |
Amortization period | ' | ' | '5 years | ' | ' |
Future amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
2014 | 29,008 | ' | 29,008 | ' | ' |
2015 | 25,237 | ' | 25,237 | ' | ' |
2016 | 21,622 | ' | 21,622 | ' | ' |
2017 | 11,946 | ' | 11,946 | ' | ' |
2018 | 5,470 | ' | 5,470 | ' | ' |
Thereafter | 1,006 | ' | 1,006 | ' | ' |
Capitalized Software [Member] | Internally Developed [Member] | ' | ' | ' | ' | ' |
Capitalized software and other intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Amount, amortized intangible assets | 255,521 | ' | 255,521 | ' | 243,872 |
Accumulated Amortization | -194,653 | ' | -194,653 | ' | -184,732 |
Net Carrying Amount, amortized intangible assets | 60,868 | ' | 60,868 | ' | 59,140 |
Amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Amortization Expense | 5,103 | 3,793 | 9,922 | 7,263 | ' |
Capitalized Software [Member] | Purchased [Member] | ' | ' | ' | ' | ' |
Capitalized software and other intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Amount, amortized intangible assets | 166,523 | ' | 166,523 | ' | 165,117 |
Accumulated Amortization | -147,785 | ' | -147,785 | ' | -142,453 |
Net Carrying Amount, amortized intangible assets | 18,738 | ' | 18,738 | ' | 22,664 |
Amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Amortization Expense | 2,391 | 2,372 | 4,761 | 4,779 | ' |
Customer Relationship [Member] | ' | ' | ' | ' | ' |
Capitalized software and other intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Amount, amortized intangible assets | 52,208 | ' | 52,208 | ' | 52,036 |
Accumulated Amortization | -27,371 | ' | -27,371 | ' | -25,281 |
Net Carrying Amount, amortized intangible assets | 24,837 | ' | 24,837 | ' | 26,755 |
Amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Amortization Expense | 1,032 | 1,041 | 2,063 | 2,085 | ' |
Future amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
2014 | 4,131 | ' | 4,131 | ' | ' |
2015 | 4,136 | ' | 4,136 | ' | ' |
2016 | 4,136 | ' | 4,136 | ' | ' |
2017 | 3,972 | ' | 3,972 | ' | ' |
2018 | 3,828 | ' | 3,828 | ' | ' |
Thereafter | 6,697 | ' | 6,697 | ' | ' |
Customer Relationship [Member] | Internally Developed [Member] | ' | ' | ' | ' | ' |
Capitalized software and other intangible assets [Abstract] | ' | ' | ' | ' | ' |
Amortization period | ' | ' | '10 years | ' | ' |
Other Amortizable Intangible Assets [Member] | ' | ' | ' | ' | ' |
Capitalized software and other intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Amount, amortized intangible assets | 20,364 | ' | 20,364 | ' | 19,884 |
Accumulated Amortization | -18,063 | ' | -18,063 | ' | -16,208 |
Net Carrying Amount, amortized intangible assets | 2,301 | ' | 2,301 | ' | 3,676 |
Amortization period | ' | ' | '3 years | ' | ' |
Amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Amortization Expense | 770 | 898 | 1,532 | 1,817 | ' |
Future amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
2014 | 3,067 | ' | 3,067 | ' | ' |
2015 | 766 | ' | 766 | ' | ' |
2016 | 0 | ' | 0 | ' | ' |
2017 | 0 | ' | 0 | ' | ' |
2018 | 0 | ' | 0 | ' | ' |
Thereafter | 0 | ' | 0 | ' | ' |
Trademarks [Member] | ' | ' | ' | ' | ' |
Capitalized software and other intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Amount, unamortized intangible assets | 4,418 | ' | 4,418 | ' | 4,428 |
Net Carrying Amount, unamortized intangible assets | 4,418 | ' | 4,418 | ' | 4,428 |
Application Performance Management [Member] | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill as of beginning of period | ' | ' | 469,947 | ' | ' |
Effect of foreign currency translation | ' | ' | 10,223 | ' | ' |
Goodwill as of end of period | 480,170 | ' | 480,170 | ' | ' |
Mainframe [Member] | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill as of beginning of period | ' | ' | 140,557 | ' | ' |
Effect of foreign currency translation | ' | ' | 0 | ' | ' |
Goodwill as of end of period | 140,557 | ' | 140,557 | ' | ' |
Changepoint [Member] | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill as of beginning of period | ' | ' | 22,079 | ' | ' |
Effect of foreign currency translation | ' | ' | 0 | ' | ' |
Goodwill as of end of period | 22,079 | ' | 22,079 | ' | ' |
Uniface [Member] | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill as of beginning of period | ' | ' | 21,280 | ' | ' |
Effect of foreign currency translation | ' | ' | 0 | ' | ' |
Goodwill as of end of period | 21,280 | ' | 21,280 | ' | ' |
Professional Services [Member] | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill as of beginning of period | ' | ' | 42,794 | ' | ' |
Effect of foreign currency translation | ' | ' | 0 | ' | ' |
Goodwill as of end of period | 42,794 | ' | 42,794 | ' | ' |
Application Services [Member] | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill as of beginning of period | ' | ' | 25,385 | ' | ' |
Effect of foreign currency translation | ' | ' | 0 | ' | ' |
Goodwill as of end of period | $25,385 | ' | $25,385 | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Software license fees | $35,710 | $31,674 | $71,116 | $65,668 | ||
Maintenance fees | 100,500 | 102,197 | 199,028 | 205,146 | ||
Subscription fees | 20,651 | 20,231 | 41,436 | 40,710 | ||
Professional services fees | 46,716 | 45,954 | 95,412 | 94,106 | ||
Application services fees | 24,525 | 20,542 | 48,626 | 41,129 | ||
Total revenues | 228,102 | 220,598 | 455,618 | 446,759 | ||
Operating expenses | 206,212 | 203,424 | 421,964 | 413,022 | ||
Contribution /operating margin | 21,890 | 17,174 | 33,654 | 33,737 | ||
Application Performance Management [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Software license fees | 24,256 | 17,942 | 46,267 | 40,299 | ||
Maintenance fees | 24,394 | 22,410 | 48,098 | 43,175 | ||
Subscription fees | 19,931 | 19,544 | 40,063 | 39,396 | ||
Professional services fees | 6,796 | 7,184 | 14,398 | 15,379 | ||
Application services fees | 0 | 0 | 0 | 0 | ||
Total revenues | 75,377 | 67,080 | 148,826 | 138,249 | ||
Operating expenses | 68,757 | 74,059 | 142,803 | 150,155 | ||
Contribution /operating margin | 6,620 | -6,979 | 6,023 | -11,906 | ||
Mainframe [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Software license fees | 8,335 | 9,773 | 18,067 | 18,823 | ||
Maintenance fees | 64,425 | 68,378 | 127,883 | 138,924 | ||
Subscription fees | 0 | 0 | 0 | 0 | ||
Professional services fees | 31 | 674 | 100 | 967 | ||
Application services fees | 0 | 0 | 0 | 0 | ||
Total revenues | 72,791 | 78,825 | 146,050 | 158,714 | ||
Operating expenses | 17,324 | 20,284 | 36,500 | 43,129 | ||
Contribution /operating margin | 55,467 | 58,541 | 109,550 | 115,585 | ||
Changepoint [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Software license fees | 958 | 2,068 | 3,154 | 2,861 | ||
Maintenance fees | 4,247 | 4,052 | 8,374 | 8,182 | ||
Subscription fees | 720 | 687 | 1,373 | 1,314 | ||
Professional services fees | 3,202 | 3,317 | 6,771 | 6,761 | ||
Application services fees | 0 | 0 | 0 | 0 | ||
Total revenues | 9,127 | 10,124 | 19,672 | 19,118 | ||
Operating expenses | 8,827 | 10,752 | 19,141 | 20,441 | ||
Contribution /operating margin | 300 | -628 | 531 | -1,323 | ||
Uniface [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Software license fees | 2,161 | 1,891 | 3,628 | 3,685 | ||
Maintenance fees | 7,434 | 7,357 | 14,673 | 14,865 | ||
Subscription fees | 0 | 0 | 0 | 0 | ||
Professional services fees | 986 | 1,095 | 2,110 | 2,271 | ||
Application services fees | 0 | 0 | 0 | 0 | ||
Total revenues | 10,581 | 10,343 | 20,411 | 20,821 | ||
Operating expenses | 4,694 | 4,606 | 9,864 | 10,025 | ||
Contribution /operating margin | 5,887 | 5,737 | 10,547 | 10,796 | ||
Professional Services [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Software license fees | 0 | 0 | 0 | 0 | ||
Maintenance fees | 0 | 0 | 0 | 0 | ||
Subscription fees | 0 | 0 | 0 | 0 | ||
Professional services fees | 36,013 | 33,684 | 72,999 | 68,728 | ||
Application services fees | 0 | 0 | 0 | 0 | ||
Total revenues | 36,013 | 33,684 | 72,999 | 68,728 | ||
Operating expenses | 28,918 | 28,138 | 59,550 | 57,058 | ||
Contribution /operating margin | 7,095 | 5,546 | 13,449 | 11,670 | ||
Application Services [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Software license fees | 0 | 0 | 0 | 0 | ||
Maintenance fees | 0 | 0 | 0 | 0 | ||
Subscription fees | 0 | 0 | 0 | 0 | ||
Professional services fees | 0 | 0 | 0 | 0 | ||
Application services fees | 24,525 | 20,542 | 48,626 | 41,129 | ||
Total revenues | 24,525 | 20,542 | 48,626 | 41,129 | ||
Operating expenses | 34,362 | 20,051 | 59,785 | 38,067 | ||
Contribution /operating margin | -9,837 | 491 | -11,159 | 3,062 | ||
Unallocated Expense [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Software license fees | 0 | [1] | 0 | 0 | [2] | 0 |
Maintenance fees | 0 | [1] | 0 | 0 | [2] | 0 |
Subscription fees | 0 | [1] | 0 | 0 | [2] | 0 |
Professional services fees | -312 | [1] | 0 | -966 | [2] | 0 |
Application services fees | 0 | [1] | 0 | 0 | [2] | 0 |
Total revenues | -312 | [1] | 0 | -966 | [2] | 0 |
Operating expenses | 43,330 | [1] | 45,534 | 94,321 | [2] | 94,147 |
Contribution /operating margin | ($43,642) | [1] | ($45,534) | ($95,287) | [2] | ($94,147) |
[1] | Unallocated operating expenses include $233,000 in restructuring expenses. See note 10 for additional information. | |||||
[2] | Unallocated operating expenses include $5.3 million in restructuring expenses. See note 10 for additional information. |
Segment_Information_Geographic
Segment Information, Geographic operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | $228,102 | $220,598 | $455,618 | $446,759 | ' |
Long-lived assets | 1,107,135 | ' | 1,107,135 | ' | 1,106,338 |
United States [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 145,346 | 138,032 | 287,313 | 282,876 | ' |
Long-lived assets | 879,347 | ' | 879,347 | ' | 888,032 |
Austria [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Long-lived assets | 209,681 | ' | 209,681 | ' | 201,224 |
Europe and Africa [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 49,768 | 46,527 | 101,492 | 95,901 | ' |
Other international operations [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 32,988 | 36,039 | 66,813 | 67,982 | ' |
Long-lived assets | $18,107 | ' | $18,107 | ' | $17,082 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Debt [Abstract] | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | $300,000,000 | ' | $300,000,000 | ' | ' |
Credit facility, expiration date | ' | ' | 21-Mar-17 | ' | ' |
Credit facility, permitted increase in maximum borrowing capacity | 200,000,000 | ' | 200,000,000 | ' | ' |
Amount outstanding under the amended credit facility | 14,000,000 | ' | 14,000,000 | ' | 18,000,000 |
Cushion below consolidated total leverage ratio, minimum (in ratio) | ' | ' | '0.25 | ' | ' |
Consolidated total leverage ratio, maximum (in ratio) | ' | ' | '2.0 | ' | ' |
Stock repurchase limit | 50,000,000 | ' | 50,000,000 | ' | ' |
Base rate percentage of borrowings under the credit facility bear interest | ' | ' | 'the base rate (the greatest of the prime rate, the federal funds effective rate plus one percent, or the daily LIBOR rate plus one percent) or the Eurodollar rate, at the Companybs option, plus the applicable margin (which is based on the level of maximum total debt to EBITDA ratio). | ' | ' |
Weighted average interest rate (in hundredths) | 1.80% | ' | 1.80% | ' | ' |
Interest and fees related to the credit facility | 266,000 | 404,000 | 495,000 | 886,000 | ' |
Cash paid for interest amounts | $281,000 | $419,000 | $547,000 | $931,000 | ' |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Employee | Facility | |||||
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Accrual, beginning of period | $5,546,000 | $7,467,000 | ' | $7,467,000 | ' | ' |
Restructuring charge | 233,000 | 5,112,000 | 0 | 5,345,000 | 0 | ' |
Payments | -2,132,000 | -5,242,000 | ' | ' | ' | ' |
Non-cash charges | ' | -1,791,000 | ' | ' | ' | ' |
Accrual, end of period | 3,647,000 | 5,546,000 | ' | 3,647,000 | ' | 7,467,000 |
Total number of positions expected to be eliminated as a result of restructuring activities | ' | ' | ' | 220 | ' | ' |
Number of positions eliminated as a percentage of the total workforce (in hundredths) | ' | ' | ' | ' | ' | 5.00% |
Number of offices expected to be fully or partially closed | ' | ' | ' | ' | ' | 20 |
Severance Costs | 233,000 | ' | ' | 5,300,000 | ' | ' |
Reductions in global workforce | ' | ' | ' | 78 | ' | ' |
Restructuring accrual current | 2,800,000 | ' | ' | 2,800,000 | ' | ' |
Restructuring accrual noncurrent | 800,000 | ' | ' | 800,000 | ' | ' |
Employee Termination Benefits [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Accrual, beginning of period | 3,219,000 | 4,670,000 | ' | 4,670,000 | ' | ' |
Restructuring charge | 196,000 | 5,110,000 | ' | 5,306,000 | ' | ' |
Payments | -1,815,000 | -4,770,000 | ' | ' | ' | ' |
Non-cash charges | ' | -1,791,000 | ' | ' | ' | ' |
Accrual, end of period | 1,600,000 | 3,219,000 | ' | 1,600,000 | ' | ' |
Restructuring and Related Cost, Expected Cost Remaining | ' | ' | ' | 6,300,000 | ' | ' |
Employee Termination Benefits [Member] | Application Performance Management [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Restructuring charge | 94,000 | ' | ' | 1,134,000 | ' | ' |
Employee Termination Benefits [Member] | Mainframe [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Restructuring charge | 0 | ' | ' | 384,000 | ' | ' |
Employee Termination Benefits [Member] | Changepoint [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Restructuring charge | 0 | ' | ' | 36,000 | ' | ' |
Employee Termination Benefits [Member] | Uniface [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Restructuring charge | 0 | ' | ' | 189,000 | ' | ' |
Employee Termination Benefits [Member] | Professional Services [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Restructuring charge | 14,000 | ' | ' | 98,000 | ' | ' |
Employee Termination Benefits [Member] | Application Services [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Restructuring charge | 9,000 | ' | ' | 104,000 | ' | ' |
Employee Termination Benefits [Member] | Unallocated Expense [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Restructuring charge | 79,000 | ' | ' | 3,361,000 | ' | ' |
Lease Abandonment Costs [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Accrual, beginning of period | 2,312,000 | 2,717,000 | ' | 2,717,000 | ' | ' |
Restructuring charge | 37,000 | 0 | ' | ' | ' | ' |
Payments | -309,000 | -405,000 | ' | ' | ' | ' |
Non-cash charges | ' | 0 | ' | ' | ' | ' |
Accrual, end of period | 2,040,000 | 2,312,000 | ' | 2,040,000 | ' | ' |
Restructuring and Related Cost, Expected Cost Remaining | ' | ' | ' | 4,300,000 | ' | ' |
Other Restructuring Charges [Member] | ' | ' | ' | ' | ' | ' |
Restructuring reserve [Roll forward] | ' | ' | ' | ' | ' | ' |
Accrual, beginning of period | 15,000 | 80,000 | ' | 80,000 | ' | ' |
Restructuring charge | 0 | 2,000 | ' | ' | ' | ' |
Payments | -8,000 | -67,000 | ' | ' | ' | ' |
Non-cash charges | ' | 0 | ' | ' | ' | ' |
Accrual, end of period | $7,000 | $15,000 | ' | $7,000 | ' | ' |