Daegis (DAEG) 10-Q 27 Feb 15 2015 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Jan. 31, 2015	Feb. 26, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Jan-15
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015
Entity Registrant Name	DAEGIS INC.
Entity Central Index Key	880562
Current Fiscal Year End Date	-26
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		16,384,444

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jan. 31, 2015	Apr. 30, 2014
In Thousands, unless otherwise specified
Current assets:
Cash	$4,288	$7,178
Accounts receivable, net of allowances of $144 and $211, respectively	5,005	6,657
Prepaid expenses	558	617
Other current assets	242	358
Total current assets	10,093	14,810
Property and equipment, net of accumulated depreciation of $5,428 and $4,921, respectively	903	1,053
Goodwill	11,706	11,706
Intangibles, net	4,479	5,614
Other assets	437	470
Total assets	27,618	33,653
Current liabilities:
Accounts payable	729	308
Current portion of long-term debt	808	3,123
Accrued compensation and related expenses	802	1,185
Other accrued liabilities	1,235	971
Deferred revenue	6,846	8,590
Total current liabilities	10,420	14,177
Long-term debt, net of current portion	11,062	11,848
Deferred tax liabilities, net	1,166	1,032
Common stock warrant liability	146	276
Other long-term liabilities	654	1,095
Total liabilities	23,448	28,428
Commitments and contingencies
Stockholders' equity:
Common stock	17	17
Additional paid-in capital	100,243	100,152
Accumulated other comprehensive income	280	280
Accumulated deficit	-96,370	-95,224
Total stockholders' equity	4,170	5,225
Total liabilities and stockholders' equity	$27,618	$33,653

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jan. 31, 2015	Apr. 30, 2014
In Thousands, unless otherwise specified
Condensed Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance	$144	$211
Property and equipment, accumulated depreciation	$5,428	$4,921

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Revenues:
Information Governance	$3,142	$4,779	$11,100	$14,936
Migration and Development Tools	2,552	3,109	7,908	8,652
Total revenues	5,694	7,888	19,008	23,588
Operating expenses:
Direct costs of Information Governance	1,626	2,044	4,765	6,311
Direct costs of Migration and Development Tools	452	494	1,481	1,357
Product development	1,160	1,395	3,550	4,683
Selling, general and administrative	2,817	4,233	9,146	11,573
Total operating expenses	6,055	8,166	18,942	23,924
(Loss) income from operations	-361	-278	66	-336
Other (expense) income
Gain (loss) from change in fair value of common stock warrant liability	69	-163	130	-51
Interest expense	-170	-312	-656	-1,039
Other, net	-159	-54	-400	-51
Total other (expense) income	-260	-529	-926	-1,141
Loss before income taxes	-621	-807	-860	-1,477
Provision for income taxes	302	71	286	244
Net Loss	($923)	($878)	($1,146)	($1,721)
Loss per share:
Basic	($0.06)	($0.05)	($0.07)	($0.11)
Diluted	($0.06)	($0.05)	($0.07)	($0.11)
Weighted-average shares used in computing loss per share:
Basic	16,384	16,384	16,384	16,022
Diluted	16,384	16,384	16,384	16,022

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014
Cash flows from operating activities:
Net loss	($1,146)	($1,721)
Reconciliation of net loss to net cash provided by operating activities:
Depreciation	525	740
Amortization of intangible assets	1,135	1,154
Loss on disposal of equipment	2	199
Provision for doubtful accounts	-67	129
Stock based compensation expense	91	130
Deferred tax liability	134	60
(Gain) loss from change in fair value of common stock warrant liability	-130	51
Changes in operating assets and liabilities:
Accounts receivable	1,720	1,602
Prepaid expenses and other current assets	175	563
Other assets	33	154
Accounts payable	421	195
Accrued compensation and related expenses	-383	-1,062
Other accrued liabilities	263	140
Deferred revenue	-2,123	-1,137
Other long term liabilities	-62	-348
Net cash provided by operating activities	588	849
Cash flows from investing activities:
Proceeds from sale of property and equipment		4
Proceeds from assets held for sale		400
Purchases of property and equipment	-377	-253
Net cash (used in) provided by investing activities	-377	151
Cash flows from financing activities:
Payment of preferred stock dividends		-66
Principal payments under debt obligations	-3,007	-2,253
Principal payments on capital leases	-94	-127
Net cash used in financing activities	-3,101	-2,446
Net change in cash	-2,890	-1,446
Cash, beginning of period	7,178	5,459
Cash, end of period	4,288	4,013
Supplemental cash flow information:
Cash paid for interest	308	889
Cash (received) paid for income taxes	($21)	$151

Basis_Of_Presentation

Basis Of Presentation	9 Months Ended
	Jan. 31, 2015
Basis Of Presentation [Abstract]
Basis Of Presentation	1.Basis of Presentation
	The condensed consolidated financial statements prepared by Daegis Inc. (the “Company”, “we”, “us”, “our”) have been derived from our audited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations.
	The accompanying condensed consolidated financial statements include our accounts and those of our subsidiaries that we control due to ownership of a controlling interest. Intercompany transactions and balances have been eliminated. While the interim financial information contained in this filing is unaudited, such financial statements, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) which we consider necessary for a fair presentation. The results for interim periods are not necessarily indicative of the results to be expected for the entire fiscal year. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2014, as filed with the SEC.
	In the second quarter of fiscal 2015 we announced the Company will move from selling products through business divisions to a holistic approach by product line featuring information governance, migration and development tools solutions.  As a result we have renamed our Archive and eDiscovery segment to Information Governance and our Development, Database and Migration tools segment to Migration and Development Tools.
	Certain prior period balances in our consolidated statements of operations have been reclassified between direct costs of Information Governance revenue and selling, general and administrative expenses to conform with current presentation.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	9 Months Ended
	Jan. 31, 2015
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	2.Recent Accounting Pronouncements
	In May 2014, the FASB issued Accounting Standards update No. 2014-09 Revenue from Contracts with Customers (ASU 204-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP.
	The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting periods with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.
	In August 2014, the FASB issued Accounting Standards update No. 2014-15 Preparation of Financial Statements – Going Concern (Subtopic 205-40), Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern.  The ASU requires management to assess each annual and interim period if there is substantial doubt about the entity’s ability to continue as a going concern; provides principals for considering the mitigating effect of management’s plans; requires certain disclosures when substantial doubt is alleviated as a result of management’s plans, and requires an express statement and other disclosures when substantial doubt is not alleviated.  The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter with early application permitted. We are currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements.

Intangible_Assets

Intangible Assets	9 Months Ended
	Jan. 31, 2015
Intangible Assets [Abstract]
Intangible Assets	3.Intangible Assets
	Intangible asset balances by major asset class are as follows (in thousands):
			Gross				Net
			carrying		Accumulated		carrying
	31-Jan-15		amount		amortization		amount
	Customer-related	$	6,236	$	-4,913	$	1,323
	Technology-based		2,638		-2,268		370
	Trademarks		4,600		-1,814		2,786
	Trade name		100		-100		-
	Total	$	13,574	$	-9,095	$	4,479
			Gross				Net
			carrying		Accumulated		carrying
	30-Apr-14		amount		amortization		amount
	Customer-related	$	6,236	$	-4,403	$	1,833
	Technology-based		2,638		-2,034		604
	Trademarks		4,600		-1,423		3,177
	Trade name		100		-100		-
	Total	$	13,574	$	-7,960	$	5,614
	Acquired finite-lived intangible assets are generally amortized on a straight-line basis over their estimated useful lives. The useful life of finite-lived intangible assets is the period over which the asset is expected to contribute directly or indirectly to future cash flows of the Company.  Intangible asset amortization expense for the three months ended January 31, 2015 and 2014 was $0.4 million, respectively.  Intangible asset amortization expense for the nine months ended January 31, 2015 and 2014 was $1.1 million and $1.2 million, respectively.  The estimated future amortization expense related to intangible assets as of January 31, 2015 is as follows (in thousands):
	Fiscal Year Ending April 30,		Amount
	Remainder of 2015	$	379
	2016		1,096
	2017		814
	2018		774
	2019		774
	Thereafter		642
	Total	$	4,479

Accrued_Restructuring_Charge

Accrued Restructuring Charge	9 Months Ended
	Jan. 31, 2015
Accrued Restructuring Charge [Abstract]
Accrued Restructuring Charge	4.Accrued Restructuring Charge
	On December 3, 2013, we announced the completion of our organizational alignment in which the Archive and eDiscovery businesses were combined.  The alignment included movement of our operations, workforce reductions, abandonment of excess facilities and other charges in the Information Governance (formerly Archive and eDiscovery) reportable segment.
	A summary of the restructuring and other costs recognized as of January 31, 2015 are as follows:
									Deferred
					Lease		Asset		Rent		Other
			Severance		Abandonment		Impairment		Liability		Costs		Total
	Amounts incurred and expected to be incurred	$	420	$	933	$	127	$	-356	$	88	$	1,212
	For the three months ended January 31, 2015 we had no cost associated with the restructuring. For the nine months ended January 31, 2015 we incurred total cost of $171 thousand which included $150 thousand related to lease abandonment cost and $21 thousand of other cost.
	At January 31, 2015, the accrued liability associated with the realignment consisted of the following:
					Lease
			Severance		Abandonment		Total
	Accrued liability at April 30, 2014	$	96	$	464	$	560
	Payments, net		-96		-262		-358
	Adjustments		-		33		33
	Accrued liability at January 31, 2015	$	-	$	235	$	235
	The restructuring and other related charges are included in the selling, general administrative expense line item in the Consolidated Statements of Operations.

Fair_Value_Of_Financial_Instru

Fair Value Of Financial Instruments	9 Months Ended
	Jan. 31, 2015
Fair Value Of Financial Instruments [Abstract]
Fair Value of Financial Instruments	5.Fair Value of Financial Instruments
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.
	In determining fair value, we use various valuation approaches and establish a hierarchy for inputs used in measuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.  Observable inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company.  Unobservable inputs are inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.  The hierarchy is broken down into three levels based on the observability of inputs as follows:
		·		Level 1 – Quoted prices in active markets for identical assets and liabilities.
		·		Level 2 – Observable inputs other than those included in Level 1, such as quoted market prices for similar assets and liabilities in active markets or quoted prices for identical assets in inactive markets.
		·		Level 3 – Unobservable inputs are used when little or no market data is available and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
	We value our common stock warrant liability on a recurring basis based on open form option pricing models which, based on the relevant inputs, render the fair value estimate Level 3.  Changes in the fair value of the warrants are reflected in the consolidated statements of operations as “Gain (loss) from change in fair value of common stock warrant liability.”
	Fair Value on a Recurring Basis
	The following table summarizes the activity of Level 3 inputs measured on a recurring basis for the nine months ended January 31, 2015:
	(in thousands)			Common stock warrants
	Balance at April 30, 2014		$		276
	Change in fair value of common stock warrant liability				-130
	Balance at January 31, 2015		$		146

LongTerm_Debt

Long-Term Debt	9 Months Ended
	Jan. 31, 2015
Long-Term Debt [Abstract]
Long-Term Debt	6.Long-Term Debt
	Effective July 31, 2014, the Company entered into an amendment to its Revolving Credit and Term Loan Agreement with Wells Fargo Capital Finance (the “Credit Agreement”). In order to secure its obligations under the Credit Agreement, the Company has granted the lender a first priority security interest in substantially all of our assets. The total amount that can be borrowed under the Credit Agreement is based on a multiplier factor of the trailing twelve months of maintenance and Software-as-a-Service revenue.
	The Credit Agreement consists of two term notes and a revolving credit note agreement. The amendment extended the term of the Credit Agreement through June 30, 2017, reduced the interest rate and modified certain financial covenants. This amendment, in conjunction with a prepayment made on July 31, 2014 under the Credit Agreement, reduced the outstanding principal balance on the Term A Loan to $10.1 million, and the Term B Loan, which incurred a minimum interest rate of 12.0%, has now been fully repaid.  The Term Note A requires quarterly principal payments of $252,000 plus an additional annual payment based on the Company’s free cash flow for the year with any remaining amount due at maturity.  To the extent the Company makes annual principal payments based on free cash flow, the quarterly principal payments will be reduced.  The Company incurs interest at the prevailing LIBOR rate plus 3.5 - 4.0% per annum with a minimum rate of 5.0%.
	Our long-term debt consists of the following (in thousands):
			January 31,		April 30,
			2015		2014
	Term Note A	$	9,317	$	11,324
	Term Note B		-		1,000
	Revolving line of credit		2,500		2,500
	Capital leases		53		147
			11,870		14,971
	Less current portion		-808		-3,123
	Total long term debt, net	$	11,062	$	11,848
	The Credit Agreement requires ongoing compliance with certain affirmative and negative covenants. The affirmative covenants include, but are not limited to: (i) maintenance of existence and conduct of business; (ii) compliance with laws; (iii) use of proceeds; and (iv) books and records and inspection. The negative covenants set forth in the Credit Agreement include, but are not limited to, restrictions on our ability (and on our subsidiaries): (i) with certain limited exceptions, to create, incur, assume or allow to exist indebtedness; (ii) with certain limited exceptions, to create, incur, assume or allow to exist liens on properties; (iii) with certain limited exceptions, to make certain payments, transfers of property, or investments; or (iv) with certain limited exceptions, to make acquisitions.
	We are obligated to maintain certain minimum consolidated adjusted EBITDA levels, certain minimum liquidity levels, certain total leverage ratios, and certain fixed charge coverage ratios, all as calculated in accordance with the terms and definitions determining such amounts as contained in the Credit Agreement. The Credit Agreement also contains various information and financial reporting requirements. The Company is in compliance with all such covenants and requirements at January 31, 2015.
	A summary of expected future principal payments, excluding any annual principal payments based on free cash flow, on long-term debt obligations as of January 31, 2015 is as follows (in thousands):
	Fiscal Year Ending April 30,		Amount
	Remainder of 2015	$	21
	2016		1,039
	2017		1,007
	2018		9,803
		$	11,870

Stock_Compensation_Information

Stock Compensation Information	9 Months Ended
	Jan. 31, 2015
Stock Compensation Information [Abstract]
Stock Compensation Information	7.Stock Compensation Information
	Stock-based compensation expense is determined from the estimated fair value of stock-based awards at the date of grant and is recognized over the vesting period of the awards, net of estimated forfeitures.  Stock-based compensation expense was comprised of the following (in thousands):
			Three Months Ended				Nine Months Ended
			January 31,				January 31,
			2015		2014		2015		2014
	Direct costs of revenue	$	3	$	3	$	10	$	12
	Product development		2		5		6		24
	Selling, general, and administrative		34		30		75		94
	Total equity-based compensation	$	39	$	38	$	91	$	130
	We estimate the fair value of our stock-based awards using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions including expected term, interest rates and expected volatility. Changes in the assumptions can materially affect the fair value estimates and ultimately how much we recognize as stock-based compensation expense. The weighted-average input assumptions used and resulting fair values were as follows:
			Nine Months Ended
			January 31,
			2015		2014
	Expected term (in years)		4.6		4.0
	Risk-free interest rate		1.4	%	0.9	%
	Volatility		76	%	51	%
	Dividend yield		-		-
	Weighted-average fair value of stock options granted during the period	$	0.52	$	0.47
	We calculate our expected term using the simplified method as the historical exercise data does not provide a reasonable basis upon which to estimate expected life due to operational and structural changes of the Company.  The risk-free interest rate is based upon United States Treasury interest rates appropriate for the expected term of the awards. The expected volatility is based on the historical volatility of our common stock over the most recent period commensurate with the estimated expected term of our stock options. We did not pay cash dividends to common stockholders in fiscal 2014 or year to date in fiscal 2015, and do not anticipate paying any cash dividends on common stock in the foreseeable future. Accordingly, an expected dividend yield of zero is used in the Black-Scholes option pricing model.
	At January 31, 2015, there was approximately $0.4 million of unrecognized compensation expense related to unvested stock-based awards granted. The unrecognized expense is expected to be recognized over a weighted-average period of 3.29 years.
	A summary of our stock option activity for the nine months ended January 31, 2015 is as follows:
				Weighted-		Weighted-
				average		average remaining		Aggregate
				exercise		contractual		intrinsic
		Shares		price		term (in years)		value (1)
	Outstanding at April 30, 2014	1,254,629	$	2.38		6.82	$	41,972
	Granted	915,300
	Exercised	-
	Cancelled/expired	-322,655
	Outstanding at January 31, 2015	1,847,274		1.69		7.78		-
	Exercisable at January 31, 2015	773,916	$	2.81		5.33	$	-
	(1) Aggregate intrinsic value is defined as the difference between the current market value and the exercise price. It is estimated using the closing price of our common stock on the last trading day of the periods ended as of the dates indicated.
	There were no awards exercised during the nine months ended January 31, 2015 and 2014. The total fair value of awards vested during the nine months ended January 31, 2015 and 2014 was $84 thousand and $0.2 million, respectively.  The total fair value of awards granted during the nine months ended January 31, 2015 and 2014 was $0.5 million and $0.2 million, respectively.

Income_Taxes

Income Taxes	9 Months Ended
	Jan. 31, 2015
Income Taxes [Abstract]
Income Taxes	8.Income Taxes
	We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.
	We are subject to income taxes in the U.S. federal jurisdiction, various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. In general, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the fiscal years before 2008. We do not believe there will be any material changes in our unrecognized tax positions over the next 12 months. Therefore, no reserves for uncertain income tax positions have been recorded.
	Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of January 31, 2015 and April 30, 2014, we did not have any accrued interest or penalties associated with unrecognized tax benefits, nor did we record interest expense associated with unrecognized tax benefits in the nine months ended January 31, 2015 and 2014.

Preferred_Stock

Preferred Stock	9 Months Ended
	Jan. 31, 2015
Preferred Stock [Abstract]
Preferred Stock	9.Preferred Stock
	In June 2011, we issued, through a private placement, 1,666,667 shares of preferred stock to a group of related party institutional investors at a price of $2.40 per share for a total of $4.0 million.  These shares of preferred stock were automatically converted on a 1-for-1 basis into shares of common stock on June 30, 2013. The preferred stock included an annual dividend of $0.24 per share payable in cash or stock at our option. In August 2013, we paid a final dividend of  $66,000 on this preferred stock ($0.04 per preferred share).

Loss_Per_Share

Loss Per Share	9 Months Ended
	Jan. 31, 2015
Loss Per Share [Abstract]
Loss Per Share	10.Loss Per Share
	Basic loss per share is computed by dividing net loss less dividends payable on preferred stock by the weighted-average number of common shares outstanding during the reporting period. Diluted loss per share is computed similar to basic loss per share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock.
	(in thousands, except  per share amounts)		Three Months Ended				Nine Months Ended
			January 31,				January 31,
			2015		2014		2015		2014
	Net loss	$	-923	$	-878	$	-1,146	$	-1,721
	Dividends paid and payable on preferred stock		-		-		-		-66
	Net loss available to common stockholders	$	-923	$	-878	$	-1,146	$	-1,787
	Weighted-average shares of common stock outstanding, basic		16,384		16,384		16,384		16,022
	Effect of dilutive securities		-		-		-		-
	Weighted-average shares of common stock outstanding, diluted		16,384		16,384		16,384		16,022
	Loss per share of common stock:
	Basic	$	-0.06	$	-0.05	$	-0.07	$	-0.11
	Diluted	$	-0.06	$	-0.05	$	-0.07	$	-0.11
	Antidilutive securities
	Number of stock options		1,847		1,465		1,847		1,621
	Number of warrants		719		909		719		909
	Potentially dilutive securities that are not included in the diluted net loss calculation are antidilutive, because the exercise prices of these securities are greater than the average market price of the stock during the respective periods.  Due to the loss on common stock for the three and nine months ended January 31, 2015 and 2014, the effect of outstanding stock-based awards was excluded from the computation of diluted loss per common share as their effect was antidilutive.

Segment_Information

Segment Information	9 Months Ended
	Jan. 31, 2015
Segment Information [Abstract]
Segment Information	11.Segment Information
	Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our Chief Executive Officer. We have evaluated our approach for making operating decisions and assessing the performance of our business and determined that we have two reportable segments.   In the second quarter of fiscal 2015 we announced the Company will move from selling products through business divisions to a holistic approach by product line featuring information governance and migration and development solutions.  As a result we have renamed our Archive and eDiscovery segment to Information Governance and our Development, Database and Migration tools segment to Migration and Development Tools.
	The accounting policies of the segments are the same as those described Note 1 of Part III, Item 15 of our Annual Report on Form 10-K for our fiscal year ended April 30, 2014.  We evaluate performance based on income from operations (total revenues less operating costs).  We do not allocate certain corporate costs to each segment and therefore disclose these amounts separately in our segment table.
	For the three months ended January 31, 2015 and 2014, total revenue from the United States was $2.4 million and $5.4 million, respectively.    Total revenue from all other countries for the three months ended January 31, 2015 and 2014 was $3.3 million and $2.5 million, respectively.  For the nine months ended January 31, 2015 and 2014, total revenue from the United States was $11.4 million and $15.9 million, respectively. Total revenue from all other countries for the nine months ended January 31, 2015 and 2014 was $7.6 million and $7.8 million, respectively. Total long-lived assets as of January 31, 2015 and April 30, 2014, for the United States, were $17.5 million and $18.8 million, respectively. There were no long-lived assets in other countries as of January 31, 2015 and April 30, 2014.
	(in thousands)		Three Months Ended				Nine Months Ended
			January 31,				January 31,
			2015		2014		2015		2014
	Total revenues:
	Information Governance	$	3,142	$	4,779	$	11,100	$	14,936
	Migration and Development Tools		2,552		3,109		7,908		8,652
	Total revenues	$	5,694	$	7,888	$	19,008	$	23,588
	Operating expenses:
	Information Governance	$	3,282	$	4,438	$	9,935	$	13,423
	Migration and Development Tools		1,604		1,619		4,952		4,842
	Unallocated corporate expenses		1,169		2,109		4,055		5,659
	Total operating expenses	$	6,055	$	8,166	$	18,942	$	23,924
	(Loss) income from operations:
	Information Governance	$	-140	$	341	$	1,165	$	1,513
	Migration and Development Tools		948		1,490		2,956		3,810
	Unallocated corporate expenses		-1,169		-2,109		-4,055		-5,659
	Total (loss) income from operations	$	-361	$	-278	$	66	$	-336
			January 31,		April 30,
			2015		2014
	Total assets:
	Information Governance	$	24,141	$	28,242
	Migration and Development Tools		3,477		5,411
	Total assets	$	27,618	$	33,653

Intangible_Assets_Tables

Intangible Assets (Tables)	9 Months Ended
	Jan. 31, 2015
Intangible Assets [Abstract]
Schedule Of Intangible Assets And Goodwill
			Gross				Net
			carrying		Accumulated		carrying
	31-Jan-15		amount		amortization		amount
	Customer-related	$	6,236	$	-4,913	$	1,323
	Technology-based		2,638		-2,268		370
	Trademarks		4,600		-1,814		2,786
	Trade name		100		-100		-
	Total	$	13,574	$	-9,095	$	4,479
			Gross				Net
			carrying		Accumulated		carrying
	30-Apr-14		amount		amortization		amount
	Customer-related	$	6,236	$	-4,403	$	1,833
	Technology-based		2,638		-2,034		604
	Trademarks		4,600		-1,423		3,177
	Trade name		100		-100		-
	Total	$	13,574	$	-7,960	$	5,614
Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense
	Fiscal Year Ending April 30,		Amount
	Remainder of 2015	$	379
	2016		1,096
	2017		814
	2018		774
	2019		774
	Thereafter		642
	Total	$	4,479

Accrued_Restructuring_Charge_T

Accrued Restructuring Charge (Tables)	9 Months Ended
	Jan. 31, 2015
Accrued Restructuring Charge [Abstract]
Summary Of Restructuring And Other Costs
									Deferred
					Lease		Asset		Rent		Other
			Severance		Abandonment		Impairment		Liability		Costs		Total
	Amounts incurred and expected to be incurred	$	420	$	933	$	127	$	-356	$	88	$	1,212
Schedule Of Accrued Liability Associated With Realignment
					Lease
			Severance		Abandonment		Total
	Accrued liability at April 30, 2014	$	96	$	464	$	560
	Payments, net		-96		-262		-358
	Adjustments		-		33		33
	Accrued liability at January 31, 2015	$	-	$	235	$	235

Fair_Value_Of_Financial_Instru1

Fair Value Of Financial Instruments (Tables)	9 Months Ended
	Jan. 31, 2015
Fair Value Of Financial Instruments [Abstract]
Summary Of Activity Of Level 3 Inputs Measured On A Recurring Basis
	(in thousands)		Common stock warrants
	Balance at April 30, 2014	$		276
	Change in fair value of common stock warrant liability			-130
	Balance at January 31, 2015	$		146

LongTerm_Debt_Tables

Long-Term Debt (Tables)	9 Months Ended
	Jan. 31, 2015
Long-Term Debt [Abstract]
Schedule Of Long-Term Debt
			January 31,		April 30,
			2015		2014
	Term Note A	$	9,317	$	11,324
	Term Note B		-		1,000
	Revolving line of credit		2,500		2,500
	Capital leases		53		147
			11,870		14,971
	Less current portion		-808		-3,123
	Total long term debt, net	$	11,062	$	11,848
Schedule Of Maturities Of Long-term Debt
	Fiscal Year Ending April 30,		Amount
	Remainder of 2015	$	21
	2016		1,039
	2017		1,007
	2018		9,803
		$	11,870

Stock_Compensation_Information1

Stock Compensation Information (Tables)	9 Months Ended
	Jan. 31, 2015
Stock Compensation Information [Abstract]
Schedule Of Equity-Based Compensation Expense From Operations
			Three Months Ended				Nine Months Ended
			January 31,				January 31,
			2015		2014		2015		2014
	Direct costs of revenue	$	3	$	3	$	10	$	12
	Product development		2		5		6		24
	Selling, general, and administrative		34		30		75		94
	Total equity-based compensation	$	39	$	38	$	91	$	130
Summary Of Fair Value Assumptions
			Nine Months Ended
			January 31,
			2015		2014
	Expected term (in years)		4.6		4.0
	Risk-free interest rate		1.4	%	0.9	%
	Volatility		76	%	51	%
	Dividend yield		-		-
	Weighted-average fair value of stock options granted during the period	$	0.52	$	0.47
Summary Of Stock Option Activity
				Weighted-		Weighted-
				average		average remaining		Aggregate
				exercise		contractual		intrinsic
		Shares		price		term (in years)		value (1)
	Outstanding at April 30, 2014	1,254,629	$	2.38		6.82	$	41,972
	Granted	915,300
	Exercised	-
	Cancelled/expired	-322,655
	Outstanding at January 31, 2015	1,847,274		1.69		7.78		-
	Exercisable at January 31, 2015	773,916	$	2.81		5.33	$	-
	(1) Aggregate intrinsic value is defined as the difference between the current market value and the exercise price. It is estimated using the closing price of our common stock on the last trading day of the periods ended as of the dates indicated.

Loss_Per_Share_Tables

Loss Per Share (Tables)	9 Months Ended
	Jan. 31, 2015
Loss Per Share [Abstract]
Schedule Of Earnings Per Share, Basic And Diluted
	(in thousands, except  per share amounts)		Three Months Ended				Nine Months Ended
			January 31,				January 31,
			2015		2014		2015		2014
	Net loss	$	-923	$	-878	$	-1,146	$	-1,721
	Dividends paid and payable on preferred stock		-		-		-		-66
	Net loss available to common stockholders	$	-923	$	-878	$	-1,146	$	-1,787
	Weighted-average shares of common stock outstanding, basic		16,384		16,384		16,384		16,022
	Effect of dilutive securities		-		-		-		-
	Weighted-average shares of common stock outstanding, diluted		16,384		16,384		16,384		16,022
	Loss per share of common stock:
	Basic	$	-0.06	$	-0.05	$	-0.07	$	-0.11
	Diluted	$	-0.06	$	-0.05	$	-0.07	$	-0.11
	Antidilutive securities
	Number of stock options		1,847		1,465		1,847		1,621
	Number of warrants		719		909		719		909

Segment_Information_Tables

Segment Information (Tables)	9 Months Ended
	Jan. 31, 2015
Segment Information [Abstract]
Schedule Of Segment Reporting Information, By Segment
	(in thousands)		Three Months Ended				Nine Months Ended
			January 31,				January 31,
			2015		2014		2015		2014
	Total revenues:
	Information Governance	$	3,142	$	4,779	$	11,100	$	14,936
	Migration and Development Tools		2,552		3,109		7,908		8,652
	Total revenues	$	5,694	$	7,888	$	19,008	$	23,588
	Operating expenses:
	Information Governance	$	3,282	$	4,438	$	9,935	$	13,423
	Migration and Development Tools		1,604		1,619		4,952		4,842
	Unallocated corporate expenses		1,169		2,109		4,055		5,659
	Total operating expenses	$	6,055	$	8,166	$	18,942	$	23,924
	(Loss) income from operations:
	Information Governance	$	-140	$	341	$	1,165	$	1,513
	Migration and Development Tools		948		1,490		2,956		3,810
	Unallocated corporate expenses		-1,169		-2,109		-4,055		-5,659
	Total (loss) income from operations	$	-361	$	-278	$	66	$	-336
			January 31,		April 30,
			2015		2014
	Total assets:
	Information Governance	$	24,141	$	28,242
	Migration and Development Tools		3,477		5,411
	Total assets	$	27,618	$	33,653

Intangible_Assets_Narrative_De

Intangible Assets (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Intangible Assets [Abstract]
Intangible assets amortization expense	$400	$400	$1,135	$1,154

Intangible_Assets_Schedule_Of_

Intangible Assets (Schedule Of Intangible Assets And Goodwill) (Details) (USD $)	Jan. 31, 2015	Apr. 30, 2014
In Thousands, unless otherwise specified
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross carrying amount	$13,574	$13,574
Finite-lived intangible assets, Accumulated amortization	-9,095	-7,960
Finite-lived intangible assets, Net carrying amount	4,479	5,614
Customer-Related [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross carrying amount	6,236	6,236
Finite-lived intangible assets, Accumulated amortization	-4,913	-4,403
Finite-lived intangible assets, Net carrying amount	1,323	1,833
Technology-Based [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross carrying amount	2,638	2,638
Finite-lived intangible assets, Accumulated amortization	-2,268	-2,034
Finite-lived intangible assets, Net carrying amount	370	604
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross carrying amount	4,600	4,600
Finite-lived intangible assets, Accumulated amortization	-1,814	-1,423
Finite-lived intangible assets, Net carrying amount	2,786	3,177
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross carrying amount	100	100
Finite-lived intangible assets, Accumulated amortization	($100)	($100)

Intangible_Assets_Schedule_Of_1

Intangible Assets (Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) (USD $)	Jan. 31, 2015	Apr. 30, 2014
In Thousands, unless otherwise specified
Intangible Assets [Abstract]
Remainder of 2015	$379
2016	1,096
2017	814
2018	774
2019	774
Thereafter	642
Finite-lived intangible assets, Net carrying amount	$4,479	$5,614

Accrued_Restructuring_Charges_

Accrued Restructuring Charges (Narrative) (Details) (USD $)	3 Months Ended	9 Months Ended
	Jan. 31, 2015	Jan. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring costs incurred	$0	$171,000
Lease Abandonment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs incurred		150,000
Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs incurred		$21,000

Accrued_Restructuring_Charge_S

Accrued Restructuring Charge (Summary Of Restructuring And Other Costs) (Details) (USD $)	Jan. 31, 2015
In Thousands, unless otherwise specified
Restructuring Cost and Reserve [Line Items]
Amounts incurred and expected to be incurred	$1,212
Severance [Member]
Restructuring Cost and Reserve [Line Items]
Amounts incurred and expected to be incurred	420
Lease Abandonment [Member]
Restructuring Cost and Reserve [Line Items]
Amounts incurred and expected to be incurred	933
Asset Impairment [Member]
Restructuring Cost and Reserve [Line Items]
Amounts incurred and expected to be incurred	127
Deferred Rent Liability [Member]
Restructuring Cost and Reserve [Line Items]
Amounts incurred and expected to be incurred	-356
Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Amounts incurred and expected to be incurred	$88

Accrued_Restructuring_Charge_S1

Accrued Restructuring Charge (Schedule Of Accrued Liability Associated With Realignment) (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015
Restructuring Cost and Reserve [Line Items]
Accrued liability at April 30, 2014	$560
Payments, net	-358
Adjustments	33
Accrued liability at January 31, 2015	235
Severance [Member]
Restructuring Cost and Reserve [Line Items]
Accrued liability at April 30, 2014	96
Payments, net	-96
Lease Abandonment [Member]
Restructuring Cost and Reserve [Line Items]
Accrued liability at April 30, 2014	464
Payments, net	-262
Adjustments	33
Accrued liability at January 31, 2015	$235

Fair_Value_Of_Financial_Instru2

Fair Value Of Financial Instruments (Summary Of Activity Of Level 3 Inputs Measured On A Recurring Basis) (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015
Fair Value Of Financial Instruments [Abstract]
Balance at April 30, 2014	$276
Change in fair value of common stock warrant liability	-130
Balance at January 31, 2015	$146

LongTerm_Debt_Narrative_Detail

Long-Term Debt (Narrative) (Details) (USD $)	1 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Jul. 31, 2014	Jan. 31, 2015	Apr. 30, 2014
	item
Credit Agreement [Member]
Debt Instrument [Line Items]
Number of term loans	2
Number of revolving lines of credit	1
Maturity date	30-Jun-17
Term Note A [Member]
Debt Instrument [Line Items]
Term loan amount	10,100	$9,317	$11,324
Stated interest rate, minimum		5.00%
Quarterly principal payment		252
Reference rate		LIBOR
Term Note B [Member]
Debt Instrument [Line Items]
Term loan amount			$1,000
Stated interest rate, minimum		12.00%
Minimum [Member] | Term Note A [Member]
Debt Instrument [Line Items]
Basis spread on variable reference rate		3.50%
Maximum [Member] | Term Note A [Member]
Debt Instrument [Line Items]
Basis spread on variable reference rate		4.00%

LongTerm_Debt_Schedule_Of_Long

Long-Term Debt (Schedule Of Long-Term Debt) (Details) (USD $)	Jan. 31, 2015	Jul. 31, 2014	Apr. 30, 2014
In Thousands, unless otherwise specified
Debt Instrument [Line Items]
Capital leases	$53		$147
Total debt	11,870		14,971
Less current portion	-808		-3,123
Total long term debt, net	11,062		11,848
Term Note A [Member]
Debt Instrument [Line Items]
Term loan amount	9,317	10,100	11,324
Term Note B [Member]
Debt Instrument [Line Items]
Term loan amount			1,000
Wells Fargo Revolving Line Of Credit [Member]
Debt Instrument [Line Items]
Revolving line of credit	$2,500		$2,500

LongTerm_Debt_Schedule_Of_Matu

Long-Term Debt (Schedule Of Maturities Of Long-term Debt) (Details) (USD $)	Jan. 31, 2015
In Thousands, unless otherwise specified
Long-Term Debt [Abstract]
Remainder of 2015	$21
2016	1,039
2017	1,007
2018	9,803
Total debt	$11,870

Stock_Compensation_Information2

Stock Compensation Information (Narrative) (Details) (USD $)	9 Months Ended		12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Apr. 30, 2014
Stock Compensation Information [Abstract]
Dividend payments	$0		$0
Dividend yield	0.00%	0.00%	0.00%
Unrecognized compensation expense	400,000
Cost recognition, weighted-average period, years	3 years 3 months 15 days
Exercise of stock options, shares		0
Fair value of awards vested	84,000	200,000
Fair value of awards granted	$500,000	$200,000

Stock_Compensation_Information3

Stock Compensation Information (Summary Of Equity-Based Compensation Expense From Operations) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Employee Service Share-based Compensation, Allocation Of Recognized Period Costs [Line Items]
Total equity based compensation	$39	$38	$91	$130
Direct Costs of Revenue [Member]
Employee Service Share-based Compensation, Allocation Of Recognized Period Costs [Line Items]
Total equity based compensation	3	3	10	12
Product Development
Employee Service Share-based Compensation, Allocation Of Recognized Period Costs [Line Items]
Total equity based compensation	2	5	6	24
Selling, General and Administrative[Member]
Employee Service Share-based Compensation, Allocation Of Recognized Period Costs [Line Items]
Total equity based compensation	$34	$30	$75	$94

Stock_Compensation_Information4

Stock Compensation Information (Summary Of Fair Value Assumptions) (Details) (USD $)	9 Months Ended		12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Apr. 30, 2014
Stock Compensation Information [Abstract]
Expected term (in years)	4 years 7 months 6 days	4 years
Risk-free interest rate	1.40%	0.90%
Volatility	76.00%	51.00%
Dividend yield	0.00%	0.00%	0.00%
Weighted-average fair value of stock options granted during the period	$0.52	$0.47

Stock_Compensation_Information5

Stock Compensation Information (Summary Of Stock Option Activity) (Details) (USD $)	9 Months Ended			12 Months Ended
	Jan. 31, 2015		Jan. 31, 2014	Apr. 30, 2014
Stock Compensation Information [Abstract]
Shares, Outstanding at April 30, 2014	1,254,629
Shares, Granted	915,300
Shares, Exercised			0
Shares, Cancelled/expired	-322,655
Shares, Outstanding at January 31, 2015	1,847,274			1,254,629
Shares, Exercisable at January 31, 2015	773,916
Weighted average exercise price, Outstanding at April 30, 2014	$2.38
Weighted average exercise price, Exercised
Weighted average exercise price, Outstanding at January 31, 2015	$1.69			$2.38
Weighted average exercise price, Exercisable at January 31, 2015	$2.81
Weighted average remaining contractual term (in years), Outstanding	7 years 9 months 11 days			6 years 9 months 26 days
Weighted average remaining contractual term (in years), Exercisable at January 31, 2015	5 years 3 months 29 days
Aggregate intrinsic value, Outstanding		[1]		$41,972	[1]
[1]	Aggregate intrinsic value is defined as the difference between the current market value and the exercise price. It is estimated using the closing price of our common stock on the last trading day of the periods ended as of the dates indicated.

Income_Taxes_Details

Income Taxes (Details) (USD $)	Jan. 31, 2015	Apr. 30, 2014
In Thousands, unless otherwise specified
Income Taxes [Abstract]
Reserve for uncertain tax positions	$0
Accrued interest or penalties associated with unrecognized tax benefits	$0	$0

Preferred_Stock_Details

Preferred Stock (Details) (Convertible Preferred Stock [Member], USD $)	1 Months Ended
	Aug. 31, 2013	Jun. 30, 2013	Jun. 30, 2011
Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues			1,666,667
Stock issued during period, per share, new issues			$2.40
Stock issued during period, value, new issues			$4,000,000
Convertible preferred stock, shares of common stock issued upon conversion		1
Preferred stock annual dividend, per share		$0.24
Dividends, preferred stock	$66,000
Preferred stock cash dividend paid	$0.04

Loss_Per_Share_Schedule_Of_Ear

Loss Per Share (Schedule Of Earnings (Loss) Per Share) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss	($923)	($878)	($1,146)	($1,721)
Dividends paid and payable on preferred stock				-66
Net loss available to common stockholders	($923)	($878)	($1,146)	($1,787)
Weighted-average shares of common stock outstanding, basic	16,384	16,384	16,384	16,022
Effect of dilutive securities
Weighted-average shares of common stock outstanding, diluted	16,384	16,384	16,384	16,022
Basic	($0.06)	($0.05)	($0.07)	($0.11)
Diluted	($0.06)	($0.05)	($0.07)	($0.11)
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities	1,847	1,465	1,847	1,621
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities	719	909	719	909

Segment_Information_Narrative_

Segment Information (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014	Apr. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments			2
Revenues	$5,694,000	$7,888,000	$19,008,000	$23,588,000
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,400,000	5,400,000	11,400,000	15,900,000
Long-lived assets	17,500,000		17,500,000		18,800,000
All Other Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,300,000	2,500,000	7,600,000	7,800,000
Long-lived assets	$0		$0		$0

Segment_Information_Schedule_O

Segment Information (Schedule Of Segment Reporting Information By Segment) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014	Apr. 30, 2014
Segment Reporting Information [Line Items]
Revenues	$5,694	$7,888	$19,008	$23,588
Operating Expenses	6,055	8,166	18,942	23,924
Operating Income (Loss)	-361	-278	66	-336
Assets	27,618		27,618		33,653
Unallocated Corporate Expenses [Member]
Segment Reporting Information [Line Items]
Operating Expenses	1,169	2,109	4,055	5,659
Operating Income (Loss)	-1,169	-2,109	-4,055	-5,659
Information Governance [Member]
Segment Reporting Information [Line Items]
Revenues	3,142	4,779	11,100	14,936
Operating Expenses	3,282	4,438	9,935	13,423
Operating Income (Loss)	-140	341	1,165	1,513
Assets	24,141		24,141		28,242
Migration and Development Tools [Member]
Segment Reporting Information [Line Items]
Revenues	2,552	3,109	7,908	8,652
Operating Expenses	1,604	1,619	4,952	4,842
Operating Income (Loss)	948	1,490	2,956	3,810
Assets	$3,477		$3,477		$5,411