Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Feb. 28, 2017 | Mar. 29, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PROGRESS SOFTWARE CORP /MA | |
Entity Central Index Key | 876,167 | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,080,525 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 226,907 | $ 207,036 |
Short-term investments | 37,285 | 42,718 |
Total cash, cash equivalents and short-term investments | 264,192 | 249,754 |
Accounts receivable (less allowances of $1,045 and $1,143, respectively) | 48,905 | 65,678 |
Other current assets | 23,841 | 20,621 |
Total current assets | 336,938 | 336,053 |
Property and equipment, net | 48,258 | 50,105 |
Intangible assets, net | 73,970 | 80,827 |
Goodwill | 278,132 | 278,067 |
Deferred tax assets | 1,508 | 6,601 |
Other assets | 2,325 | 3,174 |
Total assets | 741,131 | 754,827 |
Current liabilities: | ||
Current portion of long-term debt | 14,643 | 15,000 |
Accounts payable | 9,491 | 12,991 |
Accrued compensation and related taxes | 19,813 | 26,212 |
Dividends payable to shareholders | 6,037 | 6,067 |
Income taxes payable | 1,376 | 1,509 |
Other accrued liabilities | 32,890 | 12,999 |
Short-term deferred revenue | 136,919 | 128,960 |
Total current liabilities | 221,169 | 203,738 |
Long-term debt | 115,625 | 120,000 |
Long-term deferred revenue | 10,032 | 8,801 |
Deferred tax liabilities | 3,022 | 3,901 |
Other noncurrent liabilities | 5,097 | 11,758 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value; authorized, 1,000,000 shares; issued, none | 0 | 0 |
Common stock, $0.01 par value, and additional paid-in capital; authorized, 200,000,000 shares; issued and outstanding, 48,295,815 shares in 2017 and 48,536,516 shares in 2016 | 239,759 | 239,496 |
Retained earnings | 173,689 | 195,694 |
Accumulated other comprehensive loss | (27,262) | (28,561) |
Total shareholders’ equity | 386,186 | 406,629 |
Total liabilities and shareholders’ equity | $ 741,131 | $ 754,827 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 |
Assets | ||
Allowance for accounts receivable (in dollars) | $ 1,045 | $ 1,143 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 48,295,815 | 48,536,516 |
Common stock, shares outstanding | 48,295,815 | 48,536,516 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Revenue: | ||
Software licenses | $ 24,322 | $ 23,955 |
Maintenance and services | 66,648 | 65,526 |
Total revenue | 90,970 | 89,481 |
Costs of revenue: | ||
Cost of software licenses | 1,588 | 1,482 |
Cost of maintenance and services | 10,492 | 10,329 |
Amortization of acquired intangibles | 3,678 | 3,939 |
Total costs of revenue | 15,758 | 15,750 |
Gross profit | 75,212 | 73,731 |
Operating expenses: | ||
Sales and marketing | 25,721 | 29,658 |
Product development | 17,334 | 21,797 |
General and administrative | 10,568 | 12,380 |
Amortization of acquired intangibles | 3,179 | 3,185 |
Restructuring expenses | 17,139 | (66) |
Acquisition-related expenses | 49 | 72 |
Total operating expenses | 73,990 | 67,026 |
Income from operations | 1,222 | 6,705 |
Other (expense) income: | ||
Interest expense | (1,082) | (1,057) |
Interest income and other, net | 221 | 162 |
Foreign currency (loss) gain, net | (486) | (930) |
Total other (expense) income, net | (1,347) | (1,825) |
(Loss) income before income taxes | (125) | 4,880 |
Provision for income taxes | 400 | 1,664 |
Net (loss) income | $ (525) | $ 3,216 |
(Loss) earnings per share: | ||
Basic (in dollars per share) | $ (0.01) | $ 0.06 |
Diluted (in dollars per share) | $ (0.01) | $ 0.06 |
Weighted average shares outstanding: | ||
Basic (in shares) | 48,733 | 50,810 |
Diluted (in shares) | 48,733 | 51,440 |
Cash dividends declared per common share (in dollars per share) | $ 0.125 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (525) | $ 3,216 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 1,228 | (1,091) |
Unrealized gains on investments, net of tax provision of $40 and $23 for 2017 and 2016, respectively | 71 | 40 |
Total other comprehensive income (loss), net of tax | 1,299 | (1,051) |
Comprehensive income | $ 774 | $ 2,165 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Tax provision (benefit) included in accumulated unrealized gains on investments | $ 40 | $ 23 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (525) | $ 3,216 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 1,978 | 2,230 |
Amortization of intangibles and other | 7,382 | 7,710 |
Stock-based compensation | 1,630 | 6,937 |
Deferred income taxes | 4,268 | (516) |
Excess tax benefit from stock plans | (183) | (63) |
Allowances for accounts receivable | 40 | (136) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 16,937 | 7,695 |
Other assets | (2,278) | (4,462) |
Accounts payable and accrued liabilities | (989) | (11,167) |
Income taxes payable | 55 | 46 |
Deferred revenue | 8,985 | 11,012 |
Net cash flows from operating activities | 37,300 | 22,502 |
Cash flows from (used in) investing activities: | ||
Purchases of investments | (854) | (22,258) |
Sales and maturities of investments | 6,155 | 3,185 |
Purchases of property and equipment | (383) | (1,414) |
Net cash flows from (used in) investing activities | 4,918 | (20,487) |
Cash flows used in financing activities: | ||
Proceeds from stock-based compensation plans | 2,770 | 3,670 |
Purchases of stock related to withholding taxes from the issuance of restricted stock units | (1,306) | (409) |
Repurchases of common stock | (15,190) | (9,041) |
Excess tax benefit from stock plans | 183 | 63 |
Dividend payments to shareholders | (6,072) | 0 |
Payment of long-term debt | (3,750) | (3,750) |
Net cash flows used in financing activities | (23,365) | (9,467) |
Effect of exchange rate changes on cash | 1,018 | (1,223) |
Net increase (decrease) in cash and cash equivalents | 19,871 | (8,675) |
Cash and cash equivalents, beginning of period | 207,036 | 212,379 |
Cash and cash equivalents, end of period | 226,907 | |
Supplemental disclosure: | ||
Cash (refunded) paid for income taxes, net of refunds of $2,121 in 2017 and $442 in 2016 | (209) | 5,587 |
Cash paid for interest | 844 | 765 |
Non-cash financing activities: | ||
Total fair value of restricted stock awards, restricted stock units and deferred stock units on date vested | 9,393 | 4,368 |
Unsettled repurchases of common stock | 2,894 | 2,645 |
Dividends declared | $ 6,037 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Statement of Cash Flows [Abstract] | ||
Proceeds from income tax refunds | $ 2,121 | $ 442 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Feb. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Company Overview - We are a leading global provider of application development and deployment technologies, empowering enterprises to build mission-critical business applications to succeed in an evolving business environment. With offerings spanning web, mobile and data for on-premise and cloud environments, we power businesses worldwide, promoting success one application at a time. Our solutions are used across a variety of industries. Our products are generally sold as perpetual licenses, but certain products also use term licensing models and our cloud-based offerings use a subscription based model. More than half of our worldwide license revenue is realized through relationships with indirect channel partners, principally application partners and original equipment manufacturers (OEMs). Application partners are independent software vendors (ISVs) that develop and market applications using our technology and resell our products in conjunction with sales of their own products that incorporate our technology. OEMs are companies that embed our products into their own software products or devices. We operate in North America and Latin America (the Americas); Europe, the Middle East and Africa (EMEA); and the Asia Pacific region, through local subsidiaries as well as independent distributors. Basis of Presentation and Significant Accounting Policies - We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2016 . We made no significant changes in the application of our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2016 . We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2016 , and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. Recent Accounting Pronouncements - In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 amends Topic 350 to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. This update requires the performance of an annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance in ASU 2017-04 is required for annual reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 is intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows and to eliminate the diversity in practice related to such classifications. The guidance in ASU 2016-15 is required for annual reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated statement of cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 is intended to simplify various aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance in ASU 2016-09 is required for annual reporting periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), which requires lessees to record most leases on their balance sheets, recognizing a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance in ASU 2016-02 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We currently expect that most of our operating lease commitments will be subject to the update and recognized as operating lease liabilities and right-of-use assets upon adoption. However, we are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The guidance in ASU 2015-03 is required for annual reporting periods beginning after December 15, 2015, including interim periods within the reporting period. Accordingly, upon adoption in the first quarter of fiscal 2017, we reclassified $1.0 million from other assets to long-term debt in our condensed consolidated balance sheet as of February 28, 2017. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new guidance was initially effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016 and early adoption was not permitted. However, in July 2015, the FASB voted to defer the effective date of this ASU by one year for reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. As a result, the effective date for the Company will be December 1, 2018. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. The Company plans to adopt this ASU in accordance with the full retrospective approach, effective December 1, 2018. Fiscal year 2019 quarterly results, and comparative prior periods, will be prepared in accordance with ASC 606. The first Annual Report on Form 10-K issued in accordance with ASC 606 will be for the period ended November 30, 2019. Management is currently assessing the impact the adoption of this standard will have on the Company’s consolidated financial statements, but anticipates that the revenue recognition related to accounting for the following transactions will be most impacted: • Revenue from term licenses with extended payment terms over the term of the agreement within our Data Connectivity and Integration segment - These transactions are typically recognized when the amounts are billed to the customer under current revenue recognition guidance. In accordance with ASU 2014-09, revenue from term license performance obligations is expected to be recognized upon delivery and revenue from maintenance performance obligations is expected to be recognized over the contract term. To the extent the Company enters into future term licenses with extended payment terms after adoption of ASU 2014-09, revenue from term licenses with extended payment terms will be recognized prior to the customer being billed and the Company will recognize a net contract asset on the balance sheet. Accordingly, license revenue will be accelerated under ASU 2014-09 as the Company currently does not recognize revenue until the amounts have been billed to the customer. • Revenue from transactions with multiple elements within our Application Development and Deployment segment (i.e., sales of perpetual licenses with maintenance and/or support) - These transactions are currently recognized ratably over the associated maintenance period as the Company does not have vendor specific objective evidence (VSOE) for maintenance or support. Under ASU 2014-09, the requirement to have VSOE for undelivered elements that exists under current guidance is eliminated. Accordingly, the Company will recognize a portion of the sales price as revenue upon delivery of the license instead of recognizing the entire sales price ratably over the maintenance period. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 3 Months Ended |
Feb. 28, 2017 | |
Investments and Cash [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments A summary of our cash, cash equivalents and available-for-sale investments at February 28, 2017 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 210,872 $ — $ — $ 210,872 Money market funds 16,035 — — 16,035 State and municipal bond obligations 27,289 — (6 ) 27,283 U.S. treasury bonds 5,686 — (24 ) 5,662 Corporate bonds 4,339 1 — 4,340 Total $ 264,221 $ 1 $ (30 ) $ 264,192 A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2016 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 196,863 $ — $ — $ 196,863 Money market funds 10,173 — — 10,173 State and municipal bond obligations 32,831 — (107 ) 32,724 U.S. treasury bonds 6,542 — (29 ) 6,513 Corporate bonds 3,485 — (4 ) 3,481 Total $ 249,894 $ — $ (140 ) $ 249,754 Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands): February 28, 2017 November 30, 2016 Cash and Equivalents Short-Term Investments Cash and Equivalents Short-Term Investments Cash $ 210,872 $ — $ 196,863 $ — Money market funds 16,035 — 10,173 — State and municipal bond obligations — 27,283 — 32,724 U.S. treasury bonds — 5,662 — 6,513 Corporate bonds — 4,340 — 3,481 Total $ 226,907 $ 37,285 $ 207,036 $ 42,718 The fair value of debt securities by contractual maturity is as follows (in thousands): February 28, November 30, Due in one year or less $ 22,628 $ 21,172 Due after one year (1) 14,657 21,546 Total $ 37,285 $ 42,718 (1) Includes state and municipal bond obligations, which are securities representing investments available for current operations and are classified as current in the consolidated balance sheets. We did not hold any investments with continuous unrealized losses as of February 28, 2017 or November 30, 2016 . |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Feb. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We generally use forward contracts that are not designated as hedging instruments to hedge economically the impact of the variability in exchange rates on intercompany accounts receivable and loans receivable denominated in certain foreign currencies. We generally do not hedge the net assets of our international subsidiaries. All forward contracts are recorded at fair value on the consolidated balance sheets at the end of each reporting period and expire from 30 days to one year . At February 28, 2017 , $6.7 million was recorded in other accrued liabilities. At November 30, 2016 , $6.6 million was recorded in other noncurrent liabilities. In the three months ended February 28, 2017 and February 29, 2016 , realized and unrealized gains of $0.8 million and realized and unrealized losses of $1.5 million , respectively, from our forward contracts were recognized in foreign currency (loss) gain, net in the condensed consolidated statements of operations. The losses were substantially offset by realized and unrealized gains on the offsetting positions. The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands): February 28, 2017 November 30, 2016 Notional Value Fair Value Notional Value Fair Value Forward contracts to sell U.S. dollars $ 104,709 $ (6,728 ) $ 74,690 $ (6,597 ) Forward contracts to purchase U.S. dollars — — 1,673 (19 ) Total $ 104,709 $ (6,728 ) $ 76,363 $ (6,616 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Feb. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at February 28, 2017 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 16,035 $ 16,035 $ — $ — State and municipal bond obligations 27,283 — 27,283 — U.S. treasury bonds 5,662 — 5,662 — Corporate bonds 4,340 — 4,340 — Liabilities Foreign exchange derivatives $ (6,728 ) $ — $ (6,728 ) $ — The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2016 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 10,173 $ 10,173 $ — $ — State and municipal bond obligations 32,724 — 32,724 — U.S. treasury bonds 6,513 — 6,513 — Corporate bonds 3,481 — 3,481 — Liabilities Foreign exchange derivatives $ (6,616 ) $ — $ (6,616 ) $ — When developing fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices to measure fair value. The valuation technique used to measure fair value for our Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. We did not have any nonrecurring fair value measurements during the three months ended February 28, 2017 . |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Feb. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets are comprised of the following significant classes (in thousands): February 28, 2017 November 30, 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology $ 109,886 $ (71,795 ) $ 38,091 $ 109,886 $ (68,116 ) $ 41,770 Customer-related 67,602 (38,440 ) 29,162 67,602 (35,852 ) 31,750 Trademarks and trade names 15,140 (8,423 ) 6,717 15,140 (7,833 ) 7,307 Total $ 192,628 $ (118,658 ) $ 73,970 $ 192,628 $ (111,801 ) $ 80,827 In the first quarter of fiscal years 2017 and 2016 , amortization expense related to intangible assets was $6.9 million and $7.1 million , respectively. Future amortization expense for intangible assets as of February 28, 2017 is as follows (in thousands): Remainder of 2017 $ 20,569 2018 26,613 2019 25,489 2020 714 Thereafter 585 Total $ 73,970 Goodwill Changes in the carrying amount of goodwill in the three months ended February 28, 2017 are as follows (in thousands): Balance, November 30, 2016 $ 278,067 Translation adjustments 65 Balance, February 28, 2017 $ 278,132 Changes in the goodwill balances by reportable segment in the three months ended February 28, 2017 are as follows (in thousands): November 30, 2016 Translation Adjustments February 28, 2017 OpenEdge $ 212,062 $ 65 $ 212,127 Data Connectivity and Integration 19,040 — 19,040 Application Development and Deployment 46,965 — 46,965 Total goodwill $ 278,067 $ 65 $ 278,132 During the quarter ending February 28, 2017 , no triggering events have occurred that would indicate that it is more likely than not that the carrying values of any of our reporting units exceeded their fair values. |
Term Loan and Line of Credit
Term Loan and Line of Credit | 3 Months Ended |
Feb. 28, 2017 | |
Line of Credit Facility [Abstract] | |
Term Loan and Line of Credit | Term Loan and Line of Credit Our credit agreement provides for a $150 million secured term loan and a $150 million secured revolving credit facility, which may be made available in U.S. Dollars and certain other currencies. The revolving credit facility may be increased by up to an additional $75 million if the existing or additional lenders are willing to make such increased commitments. We borrowed the $150 million term loan included in our credit agreement to partially fund our acquisition of Telerik AD in December 2014. The revolving credit facility has sublimits for swing line loans up to $25.0 million and for the issuance of standby letters of credit in a face amount up to $25.0 million . We expect to use the revolving credit facility for general corporate purposes, including acquisitions of other businesses, and may also use it for working capital. The credit facility matures on December 2, 2019, when all amounts outstanding will be due and payable in full. The revolving credit facility does not require amortization of principal. The outstanding balance of the $150 million term loan as of February 28, 2017 was $131.3 million , with $15.0 million due in the next 12 months. The term loan requires repayment of principal at the end of each fiscal quarter, beginning with the fiscal quarter ended February 28, 2015. The first eight payments were in the principal amount of $1.9 million each, the following eight payments are in the principal amount of $3.8 million each, the next subsequent three payments are in the principal amount of $5.6 million each, and the last payment is of the remaining principal amount. The term loan may be prepaid before maturity in whole or in part at our option without penalty or premium. As of February 28, 2017 , the carrying value of the term loan approximates the fair value, based on Level 2 inputs (observable market prices in less than active markets), as the interest rate is variable over the selected interest period and is similar to current rates at which we can borrow funds. The interest rate of the credit facility as of February 28, 2017 was 2.56% . Costs incurred to obtain our long-term debt of $1.8 million are being amortized over the term of the debt agreement using the effective interest rate method. Amortization expense related to debt issuance costs of $0.1 million and $0.1 million for the three months ended February 28, 2017 and February 29, 2016 , respectively, is recorded within interest expense in our condensed consolidated statements of operations. The unamortized portion of debt issuance costs of $1.0 million is recorded as a direct deduction from the carrying value of the debt liability in our condensed consolidated balance sheet as of February 28, 2017 , with $0.4 million deducted from the current portion of long-term debt balance and $0.6 million deducted from the long-term debt balance. Revolving loans may be borrowed, repaid and reborrowed until December 2, 2019, at which time all amounts outstanding must be repaid. As of February 28, 2017 , there were no amounts outstanding under the revolving line and $0.5 million of letters of credit. As of February 28, 2017 , aggregate principal payments of long-term debt for the next five years and thereafter are (in thousands): Remainder of 2017 $ 11,250 2018 15,000 2019 16,875 2020 88,125 Total $ 131,250 |
Common Stock Repurchases
Common Stock Repurchases | 3 Months Ended |
Feb. 28, 2017 | |
Common Stock Repurchases [Abstract] | |
Common Stock Repurchases | Common Stock Repurchases We repurchased and retired 0.6 million shares of our common stock for $18.1 million in the three months ended February 28, 2017 and 0.5 million shares for $11.7 million in the three months ended February 29, 2016 . The shares were repurchased in both periods as part of our Board of Directors authorized share repurchase program. In March 2016, our Board of Directors authorized a new $100.0 million share repurchase program, which increased the total authorization to $214.5 million . As of February 28, 2017 , there was $117.3 million remaining under this current authorization. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Feb. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense reflects the fair value of stock-based awards, less the present value of expected dividends, measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using the current market price of the stock or the Black-Scholes option valuation model. In addition, during fiscal years 2014, 2015, 2016, and 2017 we granted performance-based restricted stock units that include a three -year market condition under a Long-Term Incentive Plan (“LTIP”) where the performance measurement period is three years . Vesting of the LTIP awards is based on our level of attainment of specified total shareholder return (TSR) targets relative to the percentage appreciation of a specified index of companies for the respective three year periods and is also subject to the continued employment of the grantees. In order to estimate the fair value of such awards, we used a Monte Carlo Simulation valuation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense related to options and restricted stock units on a straight-line basis over the service period of the award, which is generally 4 years for options and 3 years for restricted stock units. We recognize stock-based compensation expense related to performance stock units and our employee stock purchase plan using an accelerated attribution method. The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of operations (in thousands): Three Months Ended February 28, February 29, Cost of maintenance and services $ 256 $ 196 Sales and marketing 363 1,078 Product development (104 ) 2,679 General and administrative 1,115 2,984 Total stock-based compensation $ 1,630 $ 6,937 In the first quarter of fiscal year 2017, there were significant forfeitures due to our restructuring action, which is further described in Note 10. These forfeitures significantly reduced stock-based compensation expense compared to the prior year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Feb. 28, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated balances of other comprehensive loss during the three months ended February 28, 2017 (in thousands): Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Loss Balance, December 1, 2016 $ (28,425 ) $ (136 ) $ (28,561 ) Other comprehensive loss before reclassifications, net of tax 1,228 71 1,299 Balance, February 28, 2017 $ (27,197 ) $ (65 ) $ (27,262 ) The tax effect on accumulated unrealized gains (losses) on investments was minimal as of February 28, 2017 and November 30, 2016 . |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Feb. 28, 2017 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges The following table provides a summary of activity for all of the restructuring actions, which are detailed further below (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2016 $ 107 $ 1,443 $ 1,550 Costs incurred 1,060 16,079 17,139 Cash disbursements (268 ) (5,795 ) (6,063 ) Asset impairment (457 ) — (457 ) Translation adjustments and other (4 ) (29 ) (33 ) Balance, February 28, 2017 $ 438 $ 11,698 $ 12,136 2017 Restructuring During the first quarter of fiscal year 2017, we undertook certain operational restructuring initiatives intended to significantly reduce annual costs. As part of this action, management committed to a new strategic plan highlighted by a new product strategy and a streamlined operating approach. To execute these operational restructuring initiatives, we reduced our global workforce by approximately 20% . These workforce reductions commenced in the first fiscal quarter of 2017 and are expected to be completed by the end of the second fiscal quarter of 2017, depending upon local legal requirements. These workforce reductions occurred in substantially all functional units and across all geographies in which we operate. We also consolidated offices in various locations and expect additional expenses related to facility closures during fiscal year 2017. Overall, we expect additional severance and facilities-related charges of $1.0 million to $3.0 million from this restructuring action during the remainder of fiscal year 2017. Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions, and other costs, which include asset impairment charges. As part of this first quarter of fiscal year 2017 restructuring, for the three months ended February 28, 2017 , we incurred expenses of $17.1 million , which are recorded as restructuring expenses in the consolidated statements of operations. A summary of activity for this restructuring action is as follows (in thousands): Excess Employee Severance and Related Benefits Total Balance, December 1, 2016 $ — $ — $ — Costs incurred 1,033 16,079 17,112 Cash disbursements (174 ) (5,341 ) (5,515 ) Asset impairment (457 ) — (457 ) Translation adjustments and other (4 ) (29 ) (33 ) Balance, February 28, 2017 $ 398 $ 10,709 $ 11,107 Cash disbursements for expenses incurred to date under this restructuring are expected to be made through the third quarter of fiscal year 2018. The short-term portion of the restructuring reserve of $11.0 million is included in other accrued liabilities and the long-term portion of $0.1 million is included in other noncurrent liabilities on the condensed consolidated balance sheet at February 28, 2017 . 2016 Restructuring During the fourth quarter of fiscal year 2016, our management approved, committed to and initiated plans to make strategic changes to our organization as a result of the appointment of our new Chief Executive Officer during the period. In connection with the new organizational structure, we eliminated the positions of Chief Product Officer and Chief Revenue Officer. Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation). As part of this fourth quarter of fiscal year 2016 restructuring, for the three months ended February 28, 2017 , we incurred no additional expenses. A summary of activity for this restructuring action is as follows (in thousands): Excess Employee Severance and Related Benefits Total Balance, December 1, 2016 $ — $ 1,415 $ 1,415 Cash disbursements — (443 ) (443 ) Balance, February 28, 2017 $ — $ 972 $ 972 Cash disbursements for expenses incurred to date under this restructuring are expected to be made through the fourth quarter of fiscal year 2017. As a result, the total amount of the restructuring reserve of $1.0 million is included in other accrued liabilities on the consolidated balance sheet at February 28, 2017 . 2015 Restructurings During the first quarter of fiscal year 2015, we restructured our operations in connection with the acquisition of Telerik. This restructuring resulted in a reduction in redundant positions primarily within the administrative functions. This restructuring also resulted in the closing of two facilities as well as asset impairment charges for assets no longer deployed as a result of the acquisition. During the second and third quarters of fiscal year 2015, we incurred additional costs with respect to this restructuring, including reduction in redundant positions primarily within the product development function, as well as an impairment charge discussed further below. During the second quarter of fiscal year 2015, we decided to replace our existing cloud-based mobile application development technology with technology acquired in connection with the acquisition of Telerik. Accordingly, we evaluated the ongoing value of the assets associated with this prior mobile technology and, based on this evaluation, we determined that the long-lived assets with a carrying amount of $4.0 million were no longer recoverable and were impaired and wrote them down to their estimated fair value of $0.1 million . Fair value was based on expected future cash flows using Level 3 inputs under ASC 820. During the fourth quarter of fiscal year 2015, our management approved, committed to and initiated plans to make strategic changes to our organization to further build on the focus gained from operating under our business segment structure and to enable stronger cross-collaboration among product management, marketing and sales teams and a tighter integration of the product management and product development teams. In connection with the new organizational structure, we no longer have presidents of our three segments, as well as certain other positions within the administrative organization. Our Chief Operating Officer, appointed during fiscal year 2015, assumed responsibility for driving the operations of our three segments. The organizational changes did not result in the closing of any of our facilities. Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions, and other costs, which include asset impairment charges and abandonment of certain assets. As part of these fiscal year 2015 restructurings, for the three months ended February 28, 2017 and February 29, 2016 , we recorded minimal credits to restructuring expenses in the condensed consolidated statement of operations due to changes in estimates of the costs associated with closing facilities and changes in estimates of severance to be paid. We do not expect to incur additional material costs with respect to these restructurings. A summary of activity for these restructuring actions is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2016 $ 57 $ 28 $ 85 Costs incurred (6 ) (11 ) (17 ) Cash disbursements (51 ) — (51 ) Balance, February 28, 2017 $ — $ 17 $ 17 Cash disbursements for expenses incurred to date under these restructurings are expected to be made through the fourth quarter of fiscal year 2017. As a result, the total amount of the restructuring reserve, which is minimal, is included in other accrued liabilities on the condensed consolidated balance sheet at February 28, 2017 . |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision for the three months ended February 28, 2017 and February 29, 2016 reflects our estimate of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events which are recorded in the period they occur. The estimates are reevaluated each quarter based on our estimated tax expense for the full fiscal year. The increase in our effective tax rate in the three months ended February 28, 2017 compared to the same period in the prior year is primarily due to the fact that losses were incurred in a foreign jurisdiction for which no tax benefit is being provided. In addition, the first quarter of fiscal year 2016 benefited from a reinstatement of the research and development credit in the tax code in December 2015 with a retroactive effective date of January 1, 2015 that resulted in a tax benefit of $0.6 million for the period from January 2015 to November 2015. Our Federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2015. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2015. Tax authorities for certain non-U.S. jurisdictions are also examining returns, none of which are material to our consolidated balance sheets, cash flows or statements of income. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2012. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Feb. 28, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. As we incurred a net loss during the three months ended February 28, 2017, basic and diluted weighted average shares outstanding are the same. The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data): Three Months Ended February 28, February 29, Net (loss) income $ (525 ) $ 3,216 Weighted average shares outstanding 48,733 50,810 Dilutive impact from common stock equivalents — 630 Diluted weighted average shares outstanding 48,733 51,440 Basic (loss) earnings per share $ (0.01 ) $ 0.06 Diluted (loss) earnings per share $ (0.01 ) $ 0.06 We excluded stock awards representing approximately 2,340,000 shares and 532,000 shares of common stock from the calculation of diluted earnings per share in the three months ended February 28, 2017 and February 29, 2016 , respectively, because these awards were anti-dilutive. |
Business Segments and Internati
Business Segments and International Operations | 3 Months Ended |
Feb. 28, 2017 | |
Segment Reporting [Abstract] | |
Business Segments and International Operations | Business Segments and International Operations Operating segments are components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer. The changes made to our organization during the fourth quarter of fiscal year 2016 and first quarter of fiscal year 2017, as discussed in Note 10, did not change our determination of the three reportable segments as our organizational structure maintains the focus of the three business segments. We do not manage our assets or capital expenditures by segment or assign other income (expense) and income taxes to segments. We manage and report such items on a consolidated company basis. The following table provides revenue and contribution from our reportable segments and reconciles to the consolidated (loss) income before income taxes: Three Months Ended (In thousands) February 28, 2017 February 29, 2016 Segment revenue: OpenEdge $ 64,508 $ 64,133 Data Connectivity and Integration 6,828 6,596 Application Development and Deployment 19,634 18,752 Total revenue 90,970 89,481 Segment costs of revenue and operating expenses: OpenEdge 17,877 18,064 Data Connectivity and Integration 2,262 2,901 Application Development and Deployment 7,536 8,811 Total costs of revenue and operating expenses 27,675 29,776 Segment contribution: OpenEdge 46,631 46,069 Data Connectivity and Integration 4,566 3,695 Application Development and Deployment 12,098 9,941 Total contribution 63,295 59,705 Other unallocated expenses (1) 62,073 53,000 Income (loss) from operations 1,222 6,705 Other (expense) income, net (1,347 ) (1,825 ) (Loss) income before income taxes $ (125 ) $ 4,880 (1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: product development, corporate marketing, administration, amortization of acquired intangibles, stock-based compensation, restructuring, and acquisition related expenses. Our revenues are derived from licensing our products, and from related services, which consist of maintenance, hosting services, and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands): Three Months Ended (In thousands) February 28, February 29, Software licenses $ 24,322 $ 23,955 Maintenance 59,138 58,336 Professional services 7,510 7,190 Total $ 90,970 $ 89,481 In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Europe, the Middle East and Africa (EMEA), Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands): Three Months Ended (In thousands) February 28, February 29, North America $ 50,305 $ 49,065 EMEA 29,844 31,221 Latin America 5,023 3,693 Asia Pacific 5,798 5,502 Total $ 90,970 $ 89,481 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Feb. 28, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On March 1, 2017, we acquired 100% of the outstanding securities of DataRPM Corporation (DataRPM) for an aggregate sum of $30.0 million . Approximately $1.7 million of the purchase price was paid to DataRPM’s founders in the form of restricted stock units, subject to a two year vesting schedule and continued employment. DataRPM is a privately-held company and leader in cognitive predictive maintenance for the industrial IoT (IIoT) market. This acquisition is a key part of the Company's strategy to provide the best platform to build and deliver cognitive-first applications. As a result of the timing of the transaction, the initial accounting for the business combination was incomplete through the date our condensed consolidated financial statements were issued. Results of operations for DataRPM will be included in our consolidated financial statements as part of the OpenEdge business segment from the date of acquisition. On March 24, 2017, Paul Jalbert, the Company’s Chief Accounting Officer, became Chief Financial Officer. As CFO, Mr. Jalbert replaced Kurt Abkemeier, whose employment terminated on the same date. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Feb. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies - We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2016 . We made no significant changes in the application of our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2016 . We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2016 , and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 amends Topic 350 to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. This update requires the performance of an annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance in ASU 2017-04 is required for annual reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 is intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows and to eliminate the diversity in practice related to such classifications. The guidance in ASU 2016-15 is required for annual reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated statement of cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 is intended to simplify various aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance in ASU 2016-09 is required for annual reporting periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), which requires lessees to record most leases on their balance sheets, recognizing a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance in ASU 2016-02 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We currently expect that most of our operating lease commitments will be subject to the update and recognized as operating lease liabilities and right-of-use assets upon adoption. However, we are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The guidance in ASU 2015-03 is required for annual reporting periods beginning after December 15, 2015, including interim periods within the reporting period. Accordingly, upon adoption in the first quarter of fiscal 2017, we reclassified $1.0 million from other assets to long-term debt in our condensed consolidated balance sheet as of February 28, 2017. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new guidance was initially effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016 and early adoption was not permitted. However, in July 2015, the FASB voted to defer the effective date of this ASU by one year for reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. As a result, the effective date for the Company will be December 1, 2018. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. The Company plans to adopt this ASU in accordance with the full retrospective approach, effective December 1, 2018. Fiscal year 2019 quarterly results, and comparative prior periods, will be prepared in accordance with ASC 606. The first Annual Report on Form 10-K issued in accordance with ASC 606 will be for the period ended November 30, 2019. Management is currently assessing the impact the adoption of this standard will have on the Company’s consolidated financial statements, but anticipates that the revenue recognition related to accounting for the following transactions will be most impacted: • Revenue from term licenses with extended payment terms over the term of the agreement within our Data Connectivity and Integration segment - These transactions are typically recognized when the amounts are billed to the customer under current revenue recognition guidance. In accordance with ASU 2014-09, revenue from term license performance obligations is expected to be recognized upon delivery and revenue from maintenance performance obligations is expected to be recognized over the contract term. To the extent the Company enters into future term licenses with extended payment terms after adoption of ASU 2014-09, revenue from term licenses with extended payment terms will be recognized prior to the customer being billed and the Company will recognize a net contract asset on the balance sheet. Accordingly, license revenue will be accelerated under ASU 2014-09 as the Company currently does not recognize revenue until the amounts have been billed to the customer. • Revenue from transactions with multiple elements within our Application Development and Deployment segment (i.e., sales of perpetual licenses with maintenance and/or support) - These transactions are currently recognized ratably over the associated maintenance period as the Company does not have vendor specific objective evidence (VSOE) for maintenance or support. Under ASU 2014-09, the requirement to have VSOE for undelivered elements that exists under current guidance is eliminated. Accordingly, the Company will recognize a portion of the sales price as revenue upon delivery of the license instead of recognizing the entire sales price ratably over the maintenance period. |
Cash, Cash Equivalents and In24
Cash, Cash Equivalents and Investments (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Investments and Cash [Abstract] | |
Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments | A summary of our cash, cash equivalents and available-for-sale investments at February 28, 2017 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 210,872 $ — $ — $ 210,872 Money market funds 16,035 — — 16,035 State and municipal bond obligations 27,289 — (6 ) 27,283 U.S. treasury bonds 5,686 — (24 ) 5,662 Corporate bonds 4,339 1 — 4,340 Total $ 264,221 $ 1 $ (30 ) $ 264,192 A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2016 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 196,863 $ — $ — $ 196,863 Money market funds 10,173 — — 10,173 State and municipal bond obligations 32,831 — (107 ) 32,724 U.S. treasury bonds 6,542 — (29 ) 6,513 Corporate bonds 3,485 — (4 ) 3,481 Total $ 249,894 $ — $ (140 ) $ 249,754 |
Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments by Balance Sheet Classification | Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands): February 28, 2017 November 30, 2016 Cash and Equivalents Short-Term Investments Cash and Equivalents Short-Term Investments Cash $ 210,872 $ — $ 196,863 $ — Money market funds 16,035 — 10,173 — State and municipal bond obligations — 27,283 — 32,724 U.S. treasury bonds — 5,662 — 6,513 Corporate bonds — 4,340 — 3,481 Total $ 226,907 $ 37,285 $ 207,036 $ 42,718 |
Fair Value of Debt Securities by Contractual Maturity | The fair value of debt securities by contractual maturity is as follows (in thousands): February 28, November 30, Due in one year or less $ 22,628 $ 21,172 Due after one year (1) 14,657 21,546 Total $ 37,285 $ 42,718 (1) Includes state and municipal bond obligations, which are securities representing investments available for current operations and are classified as current in the consolidated balance sheets. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands): February 28, 2017 November 30, 2016 Notional Value Fair Value Notional Value Fair Value Forward contracts to sell U.S. dollars $ 104,709 $ (6,728 ) $ 74,690 $ (6,597 ) Forward contracts to purchase U.S. dollars — — 1,673 (19 ) Total $ 104,709 $ (6,728 ) $ 76,363 $ (6,616 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements within the Fair Value Hierarchy of the Financial Assets | The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at February 28, 2017 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 16,035 $ 16,035 $ — $ — State and municipal bond obligations 27,283 — 27,283 — U.S. treasury bonds 5,662 — 5,662 — Corporate bonds 4,340 — 4,340 — Liabilities Foreign exchange derivatives $ (6,728 ) $ — $ (6,728 ) $ — The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2016 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 10,173 $ 10,173 $ — $ — State and municipal bond obligations 32,724 — 32,724 — U.S. treasury bonds 6,513 — 6,513 — Corporate bonds 3,481 — 3,481 — Liabilities Foreign exchange derivatives $ (6,616 ) $ — $ (6,616 ) $ — |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets are comprised of the following significant classes (in thousands): February 28, 2017 November 30, 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology $ 109,886 $ (71,795 ) $ 38,091 $ 109,886 $ (68,116 ) $ 41,770 Customer-related 67,602 (38,440 ) 29,162 67,602 (35,852 ) 31,750 Trademarks and trade names 15,140 (8,423 ) 6,717 15,140 (7,833 ) 7,307 Total $ 192,628 $ (118,658 ) $ 73,970 $ 192,628 $ (111,801 ) $ 80,827 |
Schedule of Future Amortization Expense from Intangible Assets Held | Future amortization expense for intangible assets as of February 28, 2017 is as follows (in thousands): Remainder of 2017 $ 20,569 2018 26,613 2019 25,489 2020 714 Thereafter 585 Total $ 73,970 |
Schedule of Goodwill | Changes in the goodwill balances by reportable segment in the three months ended February 28, 2017 are as follows (in thousands): November 30, 2016 Translation Adjustments February 28, 2017 OpenEdge $ 212,062 $ 65 $ 212,127 Data Connectivity and Integration 19,040 — 19,040 Application Development and Deployment 46,965 — 46,965 Total goodwill $ 278,067 $ 65 $ 278,132 Changes in the carrying amount of goodwill in the three months ended February 28, 2017 are as follows (in thousands): Balance, November 30, 2016 $ 278,067 Translation adjustments 65 Balance, February 28, 2017 $ 278,132 |
Term Loan and Line of Credit (T
Term Loan and Line of Credit (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Line of Credit Facility [Abstract] | |
Schedule of Maturities of Long-term Debt | As of February 28, 2017 , aggregate principal payments of long-term debt for the next five years and thereafter are (in thousands): Remainder of 2017 $ 11,250 2018 15,000 2019 16,875 2020 88,125 Total $ 131,250 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Classification of Stock-Based Compensation | The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of operations (in thousands): Three Months Ended February 28, February 29, Cost of maintenance and services $ 256 $ 196 Sales and marketing 363 1,078 Product development (104 ) 2,679 General and administrative 1,115 2,984 Total stock-based compensation $ 1,630 $ 6,937 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive loss during the three months ended February 28, 2017 (in thousands): Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Loss Balance, December 1, 2016 $ (28,425 ) $ (136 ) $ (28,561 ) Other comprehensive loss before reclassifications, net of tax 1,228 71 1,299 Balance, February 28, 2017 $ (27,197 ) $ (65 ) $ (27,262 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Restructuring Activity | The following table provides a summary of activity for all of the restructuring actions, which are detailed further below (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2016 $ 107 $ 1,443 $ 1,550 Costs incurred 1,060 16,079 17,139 Cash disbursements (268 ) (5,795 ) (6,063 ) Asset impairment (457 ) — (457 ) Translation adjustments and other (4 ) (29 ) (33 ) Balance, February 28, 2017 $ 438 $ 11,698 $ 12,136 |
2017 Restructuring Activities [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Restructuring Activity | A summary of activity for this restructuring action is as follows (in thousands): Excess Employee Severance and Related Benefits Total Balance, December 1, 2016 $ — $ — $ — Costs incurred 1,033 16,079 17,112 Cash disbursements (174 ) (5,341 ) (5,515 ) Asset impairment (457 ) — (457 ) Translation adjustments and other (4 ) (29 ) (33 ) Balance, February 28, 2017 $ 398 $ 10,709 $ 11,107 |
2016 Restructuring Activities [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Restructuring Activity | A summary of activity for this restructuring action is as follows (in thousands): Excess Employee Severance and Related Benefits Total Balance, December 1, 2016 $ — $ 1,415 $ 1,415 Cash disbursements — (443 ) (443 ) Balance, February 28, 2017 $ — $ 972 $ 972 |
2015 Restructuring Activities [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Restructuring Activity | A summary of activity for these restructuring actions is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2016 $ 57 $ 28 $ 85 Costs incurred (6 ) (11 ) (17 ) Cash disbursements (51 ) — (51 ) Balance, February 28, 2017 $ — $ 17 $ 17 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data): Three Months Ended February 28, February 29, Net (loss) income $ (525 ) $ 3,216 Weighted average shares outstanding 48,733 50,810 Dilutive impact from common stock equivalents — 630 Diluted weighted average shares outstanding 48,733 51,440 Basic (loss) earnings per share $ (0.01 ) $ 0.06 Diluted (loss) earnings per share $ (0.01 ) $ 0.06 |
Business Segments and Interna33
Business Segments and International Operations (Tables) | 3 Months Ended |
Feb. 28, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table provides revenue and contribution from our reportable segments and reconciles to the consolidated (loss) income before income taxes: Three Months Ended (In thousands) February 28, 2017 February 29, 2016 Segment revenue: OpenEdge $ 64,508 $ 64,133 Data Connectivity and Integration 6,828 6,596 Application Development and Deployment 19,634 18,752 Total revenue 90,970 89,481 Segment costs of revenue and operating expenses: OpenEdge 17,877 18,064 Data Connectivity and Integration 2,262 2,901 Application Development and Deployment 7,536 8,811 Total costs of revenue and operating expenses 27,675 29,776 Segment contribution: OpenEdge 46,631 46,069 Data Connectivity and Integration 4,566 3,695 Application Development and Deployment 12,098 9,941 Total contribution 63,295 59,705 Other unallocated expenses (1) 62,073 53,000 Income (loss) from operations 1,222 6,705 Other (expense) income, net (1,347 ) (1,825 ) (Loss) income before income taxes $ (125 ) $ 4,880 (1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: product development, corporate marketing, administration, amortization of acquired intangibles, stock-based compensation, restructuring, and acquisition related expenses. |
Revenue from External Customers by Products and Services | Our revenues are derived from licensing our products, and from related services, which consist of maintenance, hosting services, and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands): Three Months Ended (In thousands) February 28, February 29, Software licenses $ 24,322 $ 23,955 Maintenance 59,138 58,336 Professional services 7,510 7,190 Total $ 90,970 $ 89,481 |
Revenue from External Customers from Different Geographical Areas | In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Europe, the Middle East and Africa (EMEA), Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands): Three Months Ended (In thousands) February 28, February 29, North America $ 50,305 $ 49,065 EMEA 29,844 31,221 Latin America 5,023 3,693 Asia Pacific 5,798 5,502 Total $ 90,970 $ 89,481 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Feb. 28, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized debt issuance costs reclassified (from) other assets to long-term debt | $ 1 |
Other Assets [Member] | Accounting Standards Update 2015-03 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized debt issuance costs reclassified (from) other assets to long-term debt | (1) |
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized debt issuance costs reclassified (from) other assets to long-term debt | $ 1 |
Cash, Cash Equivalents and In35
Cash, Cash Equivalents and Investments (Summary Of Cash, Cash Equivalents And Trading And Available-For-Sale Investments) (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 |
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | $ 264,221 | $ 249,894 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (30) | (140) |
Fair Value | 264,192 | 249,754 |
State and municipal bond obligations [Member] | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 27,289 | 32,831 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (6) | (107) |
Fair Value | 27,283 | 32,724 |
U.S. treasury bonds [Member] | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 5,686 | 6,542 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (24) | (29) |
Fair Value | 5,662 | 6,513 |
Corporate bonds [Member] | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 4,339 | 3,485 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | 0 | (4) |
Fair Value | 4,340 | 3,481 |
Cash [Member] | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 210,872 | 196,863 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 210,872 | 196,863 |
Money market funds [Member] | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 16,035 | 10,173 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 16,035 | $ 10,173 |
Cash, Cash Equivalents and In36
Cash, Cash Equivalents and Investments (Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments by Balance Sheet Classification) (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | Feb. 28, 2015 |
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | $ 226,907 | $ 207,036 | $ 212,379 | $ 203,704 |
Short-Term Investments | 37,285 | 42,718 | ||
State and municipal bond obligations [Member] | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | 0 | 0 | ||
Short-Term Investments | 27,283 | 32,724 | ||
U.S. treasury bonds [Member] | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | 0 | 0 | ||
Short-Term Investments | 5,662 | 6,513 | ||
Corporate bonds [Member] | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | 0 | 0 | ||
Short-Term Investments | 4,340 | 3,481 | ||
Cash [Member] | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | 210,872 | 196,863 | ||
Short-Term Investments | 0 | 0 | ||
Money market funds [Member] | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | 16,035 | 10,173 | ||
Short-Term Investments | $ 0 | $ 0 |
Cash, Cash Equivalents and In37
Cash, Cash Equivalents and Investments (Fair Value of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 |
Investments and Cash [Abstract] | ||
Due in one year or less | $ 22,628 | $ 21,172 |
Due after one year | 14,657 | 21,546 |
Total | $ 37,285 | $ 42,718 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Nov. 30, 2016 | |
Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Minimum maturity period, foreign currency derivative | 30 days | ||
Maximum maturity period, foreign currency derivative | 1 year | ||
Gains (losses) on foreign currency forward contracts | $ 0.8 | $ (1.5) | |
Other Accrued Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative liabilities | $ 6.7 | ||
Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative liabilities | $ 6.6 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Foreign Currency Forward Contracts) (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 |
Derivative [Line Items] | ||
Derivative contracts, notional value | $ 104,709 | $ 76,363 |
Derivative contracts, fair value | (6,728) | (6,616) |
Forward contracts to sell U.S. dollars [Member] | ||
Derivative [Line Items] | ||
Derivative contracts, notional value | 104,709 | 74,690 |
Derivative contracts, fair value | (6,728) | (6,597) |
Forward contracts to purchase U.S. dollars [Member] | ||
Derivative [Line Items] | ||
Derivative contracts, notional value | 0 | 1,673 |
Derivative contracts, fair value | $ 0 | $ (19) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements within the Fair Value Hierarchy of the Financial Assets) (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 |
Foreign exchange contract [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial liabilities | $ (6,728) | $ (6,616) |
Foreign exchange contract [Member] | Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial liabilities | 0 | 0 |
Foreign exchange contract [Member] | Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial liabilities | (6,728) | (6,616) |
Foreign exchange contract [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial liabilities | 0 | 0 |
Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 16,035 | 10,173 |
Money market funds [Member] | Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 16,035 | 10,173 |
Money market funds [Member] | Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Money market funds [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
State and municipal bond obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 27,283 | 32,724 |
State and municipal bond obligations [Member] | Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
State and municipal bond obligations [Member] | Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 27,283 | 32,724 |
State and municipal bond obligations [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
U.S. treasury bonds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 5,662 | 6,513 |
U.S. treasury bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
U.S. treasury bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 5,662 | 6,513 |
U.S. treasury bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Corporate bonds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 4,340 | 3,481 |
Corporate bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Corporate bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 4,340 | 3,481 |
Corporate bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | $ 0 | $ 0 |
Intangible Assets and Goodwil41
Intangible Assets and Goodwill (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 192,628 | $ 192,628 |
Accumulated Amortization | (118,658) | (111,801) |
Net Book Value | 73,970 | 80,827 |
Purchased technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 109,886 | 109,886 |
Accumulated Amortization | (71,795) | (68,116) |
Net Book Value | 38,091 | 41,770 |
Customer-related [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 67,602 | 67,602 |
Accumulated Amortization | (38,440) | (35,852) |
Net Book Value | 29,162 | 31,750 |
Trademarks and trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,140 | 15,140 |
Accumulated Amortization | (8,423) | (7,833) |
Net Book Value | $ 6,717 | $ 7,307 |
Intangible Assets and Goodwil42
Intangible Assets and Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Nov. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible assets, amortization expense | $ 6,900 | $ 7,100 | |
Goodwill [Line Items] | |||
Goodwill | 278,132 | $ 278,067 | |
Application Development and Deployment [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 46,965 | $ 46,965 |
Intangible Assets and Goodwil43
Intangible Assets and Goodwill (Schedule Of Future Amortization Expense From Intangible Assets Held) (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Nov. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 20,569 | |
2,018 | 26,613 | |
2,019 | 25,489 | |
2,020 | 714 | |
Thereafter | 585 | |
Net Book Value | $ 73,970 | $ 80,827 |
Intangible Assets and Goodwil44
Intangible Assets and Goodwill (Schedule of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Feb. 28, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance, November 30, 2016 | $ 278,067 |
Translation adjustments | 65 |
Balance, February 28, 2017 | 278,132 |
OpenEdge [Member] | |
Goodwill [Roll Forward] | |
Balance, November 30, 2016 | 212,062 |
Translation adjustments | 65 |
Balance, February 28, 2017 | 212,127 |
Data Connectivity and Integration [Member] | |
Goodwill [Roll Forward] | |
Balance, November 30, 2016 | 19,040 |
Translation adjustments | 0 |
Balance, February 28, 2017 | 19,040 |
Application Development and Deployment [Member] | |
Goodwill [Roll Forward] | |
Balance, November 30, 2016 | 46,965 |
Translation adjustments | 0 |
Balance, February 28, 2017 | $ 46,965 |
Term Loan and Line of Credit (N
Term Loan and Line of Credit (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Dec. 31, 2014 | Dec. 02, 2014 | |
Line of Credit Facility [Line Items] | ||||
Unamortized debt issuance costs | $ 1,000,000 | |||
Unamortized debt issuance costs deducted from current portion of long-term debt | 400,000 | |||
Unamortized debt issuance costs deducted from long-term debt | 600,000 | |||
Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Term loan | 150,000,000 | $ 150,000,000 | ||
Unsecured credit facility | 150,000,000 | |||
Additional borrowing capacity available | 75,000,000 | |||
Fair value of term loan | 131,300,000 | |||
Due in next 12 months | 15,000,000 | |||
Principal payments for years one and two | 1,900,000 | |||
Principal payments for years three and four | 3,800,000 | |||
Principal payments for years five and thereafter | $ 5,600,000 | |||
Interest rate at period end (as a percent) | 2.56% | |||
Debt issuance cost | $ 1,800,000 | |||
Amortization of debt issuance costs | 100,000 | $ 100,000 | ||
Credit Agreement [Member] | Swing line loans [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured credit facility | $ 25,000,000 | |||
Credit Agreement [Member] | Letter of credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured credit facility | $ 25,000,000 | |||
Line of credit facility outstanding amount | 500,000 | |||
Credit Agreement [Member] | Revolving line of credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility outstanding amount | $ 0 |
Term Loan and Line of Credit (F
Term Loan and Line of Credit (Future Maturities) (Details) $ in Thousands | Feb. 28, 2017USD ($) |
Line of Credit Facility [Abstract] | |
Remainder of 2017 | $ 11,250 |
2,018 | 15,000 |
2,019 | 16,875 |
2,020 | 88,125 |
Total | $ 131,250 |
Common Stock Repurchases (Detai
Common Stock Repurchases (Details) - USD ($) shares in Millions | 3 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Mar. 31, 2016 | |
Common Stock Repurchases [Abstract] | |||
Common stock repurchased and retired (in shares) | 0.6 | 0.5 | |
Common stock repurchased and retired | $ 18,100,000 | $ 11,700,000 | |
Authorized amount for share repurchase programs | $ 100,000,000 | ||
Remaining authorized repurchase amount | $ 117,300,000 | $ 214,500,000 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | 3 Months Ended |
Feb. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award market condition period | 3 years |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation award service period (in years) | 4 years |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation award service period (in years) | 3 years |
Stock-Based Compensation (Class
Stock-Based Compensation (Classification of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,630 | $ 6,937 |
Cost of maintenance and services [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 256 | 196 |
Sales and marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 363 | 1,078 |
Product development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | (104) | 2,679 |
General and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,115 | $ 2,984 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
Feb. 28, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, December 1, 2016 | $ 406,629 |
Balance, February 28, 2017 | 386,186 |
Accumulated Other Comprehensive Loss [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, December 1, 2016 | (28,561) |
Other comprehensive loss before reclassifications, net of tax | 1,299 |
Balance, February 28, 2017 | (27,262) |
Foreign Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, December 1, 2016 | (28,425) |
Other comprehensive loss before reclassifications, net of tax | 1,228 |
Balance, February 28, 2017 | (27,197) |
Unrealized Gains (Losses) on Investments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance, December 1, 2016 | (136) |
Other comprehensive loss before reclassifications, net of tax | 71 |
Balance, February 28, 2017 | $ (65) |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) | 3 Months Ended | |||||
Feb. 28, 2017USD ($) | Feb. 29, 2016USD ($) | Nov. 30, 2015segment | May 31, 2015USD ($) | Feb. 28, 2015facility | Nov. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | $ 17,139,000 | $ (66,000) | ||||
Restructuring reserve | $ 12,136,000 | $ 1,550,000 | ||||
2017 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Global workforce reduction (as a percent) | 20.00% | |||||
Restructuring expenses | $ 17,112,000 | |||||
Restructuring reserve | 11,107,000 | 0 | ||||
2017 Restructuring Activities [Member] | Other Accrued Liabilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Short-term portion of restructuring reserve | 11,000,000 | |||||
2017 Restructuring Activities [Member] | Other Noncurrent Liabilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Long-term portion of restructuring reserve | 100,000 | |||||
2016 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 0 | |||||
Restructuring reserve | 972,000 | 1,415,000 | ||||
2015 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of facilities closed | facility | 2 | |||||
Number of operating segments | segment | 3 | |||||
Level 3 [Member] | Nonrecurring Basis [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Long-lived assets at fair value | $ 100,000 | |||||
Telerik AD [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment of long-lived assets | $ 4,000,000 | |||||
Telerik AD [Member] | 2015 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | (17,000) | |||||
Restructuring reserve | 17,000 | 85,000 | ||||
Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 16,079,000 | |||||
Restructuring reserve | 11,698,000 | 1,443,000 | ||||
Severance [Member] | 2017 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected additional restructuring costs | 1,000,000 | |||||
Restructuring expenses | 16,079,000 | |||||
Restructuring reserve | 10,709,000 | 0 | ||||
Severance [Member] | 2016 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 972,000 | 1,415,000 | ||||
Severance [Member] | Telerik AD [Member] | 2015 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | (11,000) | |||||
Restructuring reserve | 17,000 | 28,000 | ||||
Facility-Related Charges [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 1,060,000 | |||||
Restructuring reserve | 438,000 | 107,000 | ||||
Facility-Related Charges [Member] | 2017 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected additional restructuring costs | 3,000,000 | |||||
Restructuring expenses | 1,033,000 | |||||
Restructuring reserve | 398,000 | 0 | ||||
Facility-Related Charges [Member] | 2016 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 0 | 0 | ||||
Facility-Related Charges [Member] | Telerik AD [Member] | 2015 Restructuring Activities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | (6,000) | |||||
Restructuring reserve | $ 0 | $ 57,000 |
Restructuring Charges (Summary
Restructuring Charges (Summary of Restructuring Activity) (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 1,550,000 | |
Costs incurred | 17,139,000 | $ (66,000) |
Cash disbursements | (6,063,000) | |
Asset Impairment Charges | (457,000) | |
Translation adjustments and other | (33,000) | |
Ending Balance | 12,136,000 | |
Excess Facilities and Other Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 107,000 | |
Costs incurred | 1,060,000 | |
Cash disbursements | (268,000) | |
Asset Impairment Charges | (457,000) | |
Translation adjustments and other | (4,000) | |
Ending Balance | 438,000 | |
Employee Severance and Related Benefits [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 1,443,000 | |
Costs incurred | 16,079,000 | |
Cash disbursements | (5,795,000) | |
Asset Impairment Charges | 0 | |
Translation adjustments and other | (29,000) | |
Ending Balance | 11,698,000 | |
2017 Restructuring Activities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Costs incurred | 17,112,000 | |
Cash disbursements | (5,515,000) | |
Asset Impairment Charges | (457,000) | |
Translation adjustments and other | (33,000) | |
Ending Balance | 11,107,000 | |
2017 Restructuring Activities [Member] | Excess Facilities and Other Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Costs incurred | 1,033,000 | |
Cash disbursements | (174,000) | |
Asset Impairment Charges | (457,000) | |
Translation adjustments and other | (4,000) | |
Ending Balance | 398,000 | |
2017 Restructuring Activities [Member] | Employee Severance and Related Benefits [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Costs incurred | 16,079,000 | |
Cash disbursements | (5,341,000) | |
Asset Impairment Charges | 0 | |
Translation adjustments and other | (29,000) | |
Ending Balance | 10,709,000 | |
2016 Restructuring Activities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 1,415,000 | |
Costs incurred | 0 | |
Cash disbursements | (443,000) | |
Ending Balance | 972,000 | |
2016 Restructuring Activities [Member] | Excess Facilities and Other Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Cash disbursements | 0 | |
Ending Balance | 0 | |
2016 Restructuring Activities [Member] | Employee Severance and Related Benefits [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 1,415,000 | |
Cash disbursements | (443,000) | |
Ending Balance | 972,000 | |
Telerik AD [Member] | 2015 Restructuring Activities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 85,000 | |
Costs incurred | (17,000) | |
Cash disbursements | (51,000) | |
Ending Balance | 17,000 | |
Telerik AD [Member] | 2015 Restructuring Activities [Member] | Excess Facilities and Other Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 57,000 | |
Costs incurred | (6,000) | |
Cash disbursements | (51,000) | |
Ending Balance | 0 | |
Telerik AD [Member] | 2015 Restructuring Activities [Member] | Employee Severance and Related Benefits [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 28,000 | |
Costs incurred | (11,000) | |
Cash disbursements | 0 | |
Ending Balance | $ 17,000 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended |
Feb. 29, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Research and development tax credit | $ 0.6 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Earnings Per Share [Abstract] | ||
Net (loss) income (in dollars) | $ (525) | $ 3,216 |
Weighted average shares outstanding (in shares) | 48,733 | 50,810 |
Dilutive impact from common stock equivalents (in shares) | 0 | 630 |
Diluted weighted average shares outstanding (in shares) | 48,733 | 51,440 |
Basic (loss) earnings per share (in dollars per share) | $ (0.01) | $ 0.06 |
Diluted (loss) earnings per share (in dollars per share) | $ (0.01) | $ 0.06 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Earnings Per Share [Abstract] | ||
Number of shares excluded from the calculation of diluted earnings per share | 2,340 | 532 |
Business Segments and Interna56
Business Segments and International Operations (Narrative) (Details) | 3 Months Ended |
Feb. 28, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments and Interna57
Business Segments and International Operations (Income from Continuing Operations by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment revenue | $ 90,970 | $ 89,481 |
Segment costs of revenue and operating expenses | 27,675 | 29,776 |
Segment contribution margin | 63,295 | 59,705 |
Other unallocated expenses | 62,073 | 53,000 |
Income from operations | 1,222 | 6,705 |
Other (expense) income, net | (1,347) | (1,825) |
(Loss) income before income taxes | (125) | 4,880 |
OpenEdge [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment revenue | 64,508 | 64,133 |
Segment costs of revenue and operating expenses | 17,877 | 18,064 |
Segment contribution margin | 46,631 | 46,069 |
Data Connectivity and Integration [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment revenue | 6,828 | 6,596 |
Segment costs of revenue and operating expenses | 2,262 | 2,901 |
Segment contribution margin | 4,566 | 3,695 |
Application Development and Deployment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment revenue | 19,634 | 18,752 |
Segment costs of revenue and operating expenses | 7,536 | 8,811 |
Segment contribution margin | $ 12,098 | $ 9,941 |
Business Segments and Interna58
Business Segments and International Operations (Revenue from External Customers by Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Segment Reporting [Abstract] | ||
Software licenses | $ 24,322 | $ 23,955 |
Maintenance | 59,138 | 58,336 |
Professional services | 7,510 | 7,190 |
Total revenue | $ 90,970 | $ 89,481 |
Business Segments and Interna59
Business Segments and International Operations (Revenue from External Customers from Different Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Revenue from External Customer [Line Items] | ||
Total revenue | $ 90,970 | $ 89,481 |
North America [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | 50,305 | 49,065 |
EMEA [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | 29,844 | 31,221 |
Latin America [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | 5,023 | 3,693 |
Asia Pacific [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | $ 5,798 | $ 5,502 |
Subsequent Events (Details)
Subsequent Events (Details) - DataRPM Corporation [Member] - Subsequent Event [Member] $ in Millions | Mar. 01, 2017USD ($) |
Subsequent Event [Line Items] | |
Percentage of voting interests acquired | 100.00% |
Total purchase consideration | $ 30 |
Restricted Stock Units [Member] | |
Subsequent Event [Line Items] | |
Consideration payable in form of restricted stock units | $ 1.7 |
Award vesting period | 2 years |