Exa (EXA) 10-Q 25 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2016	May. 20, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	EXA
Entity Registrant Name	EXA CORP
Entity Central Index Key	890,264
Current Fiscal Year End Date	--01-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,719,558

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Current assets:
Cash and cash equivalents	$ 39,182	$ 27,649
Accounts receivable	13,675	32,072
Prepaid expenses and other current assets	2,428	3,707
Total current assets	55,285	63,428
Property and equipment, net	11,249	12,032
Intangible assets, net	1,957	2,044
Deferred tax assets	440	428
Restricted cash	352	352
Other assets	781	737
Total assets	70,064	79,021
Current liabilities:
Accounts payable	2,235	3,462
Accrued expenses	6,465	12,199
Current portion of deferred revenue	33,148	32,849
Current portion of capital lease obligations	2,597	2,823
Total current liabilities	44,445	51,333
Deferred revenue	3,172	4,484
Capital lease obligations	2,024	2,549
Deferred rent	2,482	2,490
Other long-term liabilities	715	678
Total liabilities	$ 52,838	$ 61,534
Commitments and contingencies (Note 9)
Stockholders' equity :
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.001 par value; 30,000,000 shares authorized; 14,676,339 and 14,663,621 shares issued, respectively; 14,643,837 and 14,631,119 shares outstanding, respectively	$ 15	$ 15
Additional paid-in capital	92,191	91,626
Accumulated deficit	(74,628)	(73,685)
Treasury stock (32,502 common shares, at cost)	0	0
Accumulated other comprehensive loss	(352)	(469)
Total stockholders' equity	17,226	17,487
Total liabilities and stockholders' equity	$ 70,064	$ 79,021

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2016	Jan. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	14,676,339	14,663,621
Common stock, shares outstanding	14,643,837	14,631,119
Treasury stock, shares	32,502	32,502

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Revenue:
License revenue	$ 14,059	$ 12,242
Project revenue	2,726	2,526
Total revenue	16,785	14,768
Operating expenses:
Cost of revenues	4,804	4,643
Sales and marketing	3,331	2,488
Research and development	6,211	6,170
General and administrative	3,449	3,267
Total operating expenses	17,795	16,568
Loss from operations	(1,010)	(1,800)
Other income (expense), net:
Foreign exchange gain (loss)	215	(52)
Interest expense	(47)	(65)
Interest income	10	3
Other income, net	9
Total other income (expense), net	187	(114)
Loss before income taxes	(823)	(1,914)
(Provision) benefit for income taxes	(120)	26
Net loss	$ (943)	$ (1,888)
Net loss per share:
Basic	$ (0.06)	$ (0.13)
Diluted	$ (0.06)	$ (0.13)
Weighted average shares outstanding used in computing net loss per share:
Basic	14,636,433	14,301,709
Diluted	14,636,433	14,301,709
Comprehensive loss:
Net loss	$ (943)	$ (1,888)
Foreign currency translation adjustment	117	40
Comprehensive loss	$ (826)	$ (1,848)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Cash flows provided by operating activities:
Net loss	$ (943)	$ (1,888)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,011	750
Stock-based compensation expense	489	614
Deferred rent expense	(6)	(101)
Deferred income taxes	(12)	(6)
Net change in operating assets and liabilities:
Accounts receivable	17,863	21,097
Prepaid expenses and other current assets	1,242	(1,476)
Other assets	(45)	537
Accounts payable	(970)	4
Accrued expenses	(5,750)	(1,959)
Other liabilities	36	(94)
Deferred revenue	(1,042)	734
Net cash provided by operating activities	11,873	18,212
Cash flows used in investing activities:
Purchases of property and equipment	(521)	(141)
Net cash used in investing activities	(521)	(141)
Cash flows used in financing activities:
Proceeds from stock option exercises	57	648
Payments of capital lease obligations	(751)	(650)
Net cash used in financing activities	(694)	(2)
Effect of exchange rate changes on cash	875	(57)
Net increase in cash and cash equivalents	11,533	18,012
Cash and cash equivalents, beginning of period	27,649	21,785
Cash and cash equivalents, end of period	39,182	39,797
Supplemental cash flow disclosures:
Cash paid for interest	47	65
Cash paid for income taxes	1,137	$ 958
Supplemental disclosure of non-cash investing activities:
Decrease in unpaid purchases of property and equipment	$ (426)

Description of Business

Description of Business	3 Months Ended
	Apr. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	1. Description of Business Exa Corporation (the “Company” or “Exa”), a Delaware corporation, develops, sells and supports simulation software and services used primarily by vehicle manufacturers to enhance the performance of their products, reduce product development costs and improve the efficiency of their design and engineering processes. The Company’s solutions enable engineers and designers to augment or replace conventional methods of evaluating designs that rely on expensive and inefficient physical prototypes and test facilities with accurate digital simulations that are more useful, cost effective and timely. The Company’s simulation solutions enable customers to gain crucial insights about design performance early in the design cycle, reducing the likelihood of expensive redesigns and late-stage engineering changes, which result in cost savings and fundamental improvements in the development process. The Company is primarily focused on the ground transportation market, but is also exploring the application of its capabilities in the aerospace, oil and gas production, chemical processing, architecture, engineering and construction, power generation, biomedical and electronics industries. Exa has offices and sells directly in the United States and through subsidiaries in France, Germany, Italy, Japan, Korea, China, and the United Kingdom. The Company also conducts business in Sweden, India, Brazil, Russia, Canada, Finland, Spain and Australia.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Apr. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Applicable Accounting Guidance Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative United States generally accepted accounting principles (“GAAP”) as found in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Basis of Presentation The interim financial data as of April 30, 2016 and for the three months ended April 30, 2016 and 2015 are unaudited; however, in the opinion of the Company’s management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The condensed consolidated balance sheet presented as of January 31, 2016 has been derived from the audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements presented herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Exa annual report on Form 10-K for the year ended January 31, 2016 filed with the Securities and Exchange Commission on March 21, 2016. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from management’s estimates if future events differ substantially from past experience, or other assumptions, which reasonable when made, do not turn out to be substantially accurate. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718)—Improvements to Employee Share-Based Payment Accounting.

Computation of Net Loss Per Sha

Computation of Net Loss Per Share	3 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Computation of Net Loss Per Share	3. Computation of Net Loss Per Share Net loss per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted amounts per share include the impact of the Company’s outstanding potential common shares, such as shares issuable upon exercise of in-the-money stock options or warrants, when dilutive. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net loss per common share. The following summarizes the calculation of basic and diluted net loss per share: Three Months Ended April 30, 2016 2015 Numerator: Net loss $ (943 ) $ (1,888 ) Denominator: Weighted average common shares, basic and diluted 14,636,433 14,301,709 Basic and diluted net loss per share $ (0.06 ) $ (0.13 ) The table below represents outstanding options, restricted stock unit awards and warrants that were excluded from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect. All of the Company’s outstanding stock options, unvested restricted stock units and warrants were anti-dilutive for the three months ended April 30, 2016 and 2015 due to the net loss position of the Company. Three Months Ended April 30, 2016 2015 Options, restricted stock unit awards and warrants to purchase common and preferred stock 1,943,562 2,606,097

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Apr. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, net	4. Property and Equipment, net Property and equipment, net consists of the following: April 30, 2016 January 31, 2016 Computer software and equipment $ 18,160 $ 17,964 Office equipment and furniture 1,495 1,349 Leasehold improvements 1,619 1,562 Construction-in-process 41 169 Total property and equipment 21,315 21,044 Less accumulated depreciation (10,066 ) (9,012 ) Property and equipment, net $ 11,249 $ 12,032 For the three months ended April 30, 2016 and 2015, depreciation expense was $923 and $662, respectively. Included in computer software and equipment and office equipment and furniture is equipment held pursuant to capital leases with costs of $14,863 and $14,809 and accumulated depreciation of $7,501 and $6,808 as of April 30, 2016 and January 31, 2016, respectively.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Apr. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses	5. Accrued Expenses Accrued expenses consist of the following: April 30, 2016 January 31, 2016 Accrued payroll $ 1,861 $ 1,828 Sales and value added taxes 1,625 4,075 Accrued commissions and bonuses 961 3,900 Accrued income taxes payable 412 541 Deferred rent, current portion 188 186 Legal and professional 554 805 Other 864 864 Total accrued expenses $ 6,465 $ 12,199

Deferred Rent

Deferred Rent	3 Months Ended
	Apr. 30, 2016
Text Block [Abstract]
Deferred Rent	6. Deferred Rent Payment escalations, rent holidays and lease incentives specified in the Company’s non-cancelable operating lease and hosting agreements are recognized on a straight-line basis over the terms of the agreements. The differences arising from straight-line expense recognition and cash payments are recorded as deferred rent in the accompanying consolidated balance sheets. Tenant leasehold improvement allowances received from landlords are recorded as deferred rent and are amortized as operating expense over the applicable lease terms. Deferred rent consists of the following: April 30, 2016 January 31, 2016 Leasehold improvement incentive $ 1,775 $ 1,839 Non-cash rent expense 895 837 Total deferred rent 2,670 2,676 Less current portion included in accrued expenses (188 ) (186 ) Deferred rent, net of current portion $ 2,482 $ 2,490

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements Financial instruments consist primarily of cash and cash equivalents, accounts receivable and capital lease obligations. As of April 30, 2016 and January 31, 2016, the carrying amounts of these instruments approximate their fair values. The estimated fair values have been determined from information obtained from market sources and management estimates. In determining the fair value of its financial assets and liabilities, the Company uses various valuation approaches. ASC 820, Fair Value Measurements and Disclosures Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement and that are based on management’s best estimate of inputs market participants would use for pricing the asset or liability at the measurement date, including assumptions about risk. The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value as of April 30, 2016: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 11,027 $ 11,027 $ — $ — The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value as of January 31, 2016: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 11,019 $ 11,019 $ — $ — The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement.

Acquired Intangible Assets

Acquired Intangible Assets	3 Months Ended
	Apr. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Acquired Intangible Assets	8. Acquired Intangible Assets Intangible assets acquired in a business combination are recorded under the purchase method of accounting at their estimated fair values at the date of acquisition. The Company amortizes acquired intangible assets over their estimated useful lives. The following table reflects the carrying value of intangible assets as of April 30, 2016: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,548 ) $ 1,957 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,586 ) $ 1,957 The following table reflects the carrying value of intangible assets as of January 31, 2016: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,461 ) $ 2,044 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,499 ) $ 2,044 Amortization expense of intangible assets was $88 for the three months ended April 30, 2016 and 2015.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Legal Contingencies From time to time the Company is involved in legal proceedings arising in the ordinary course of business. There is no litigation pending that could, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Guarantees and Indemnification Obligations The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any United States patent, or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification provisions is generally perpetual after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is unlimited. Based on historical experience and information known as of April 30, 2016 and January 31, 2016, the Company has not recorded any liabilities for these guarantees and indemnities.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	10. Stock-Based Compensation The fair value of common stock service-based options for employees and directors is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used: Three Months Ended April 30, 2016 2015 Expected life (years) 6.25 6.25 Risk-free interest rate 1.54 % 1.80 % Expected volatility 35.3 % 39.0 % Expected dividend yield 0.0 % 0.0 % The weighted-average grant date fair value per share for service-based stock options granted in the three months ended April 30, 2016 and 2015 was $4.18 and $4.27, respectively. For standard service-based stock options, the Company records stock-based compensation expense over the estimated service/vesting period. The amount of stock-based compensation expense recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. Performance-based stock options are recognized as expense over the requisite service period when it becomes probable that performance measures triggering vesting will be met. Certain grants vested during the first quarter of fiscal year 2017 based on achieved performance metrics for fiscal year 2016, and accordingly, the Company recorded $51 in share-based compensation expense associated with these options in the three months ended April 30, 2016. Furthermore, as of April 30, 2016, the Company has concluded that it is not probable that the required metrics for vesting of the remaining unvested options will be achieved. As such, the Company has not recognized any additional share-based compensation expense associated with the unvested portion of these performance-based options. During the first quarter of fiscal year 2017, the Company granted performance-based restricted stock units (“PSUs”) for a total of 337,000 shares of common stock. The PSUs are eligible to vest, and will vest over a two-year period, if certain specified targets are met in fiscal year 2017. PSUs are recognized as expense when it becomes probable that performance measures triggering vesting will be achieved. As of April 30, 2016, the Company has concluded that it is not probable that any of the required metrics for vesting of the PSUs will be achieved. As a result, the Company has not recognized any share-based compensation expense associated with these awards. Total stock-based compensation expense related to stock options and restricted stock units issued by the Company is as follows: Three Months Ended April 30, 2016 2015 Cost of revenues $ 44 $ 69 Sales and marketing 90 115 Research and development 183 241 General and administrative 172 189 Total $ 489 $ 614 The total unrecognized compensation cost related to outstanding stock options is $2,484 at April 30, 2016. This amount is expected to be recognized over a weighted-average period of 2.07 years.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes For the three months ended April 30, 2016, the Company’s income tax provision was $120. The provision primarily consists of the tax effects of foreign operating results and foreign withholding taxes. For the three months ended April 30, 2015, the income tax benefit was $26. The benefit for the three months ended April 30, 2015 primarily consists of the tax effect of foreign losses, offset by withholding taxes. In determining the realizability of the net United States federal and state deferred tax assets, the Company considers numerous factors including historical profitability, estimated future taxable income, prudent and feasible tax planning strategies and the industry in which it operates. Management reassesses the realization of the deferred tax assets each reporting period, which resulted in a valuation allowance against the full amount of the Company’s United States deferred tax assets in the first quarter of fiscal year 2015. To the extent that the financial results of the United States operations improve in the future and the deferred tax assets become realizable, the Company will reduce the valuation allowance through earnings. It is reasonably possible within the next nine months that the liability for unrecognized tax benefits relating to transfer pricing in a foreign jurisdiction will decrease by approximately $403, inclusive of interest, primarily as a result of the expiration of the statute of limitations. The Company and one or more of its subsidiaries file United States federal income tax returns and tax returns in various state and foreign jurisdictions. With limited exceptions, the Company is no longer subject to federal, state, local or foreign examinations for years ending prior to January 31, 2012. However, carryforward attributes that were generated in tax years ending prior to January 31, 2013 may still be adjusted upon examination by state or local tax authorities if they either have been or will be used in a future period. Under Section 382 of the Internal Revenue Code of 1986, as amended, substantial changes in the Company’s ownership may limit the amount of net operating loss carryforwards that could be utilized annually in the future to offset its taxable income. Specifically, this limitation may arise in the event of a cumulative change in ownership of the Company of more than 50% within a three-year period. During the first quarter of fiscal year 2015, management determined that the Company had experienced an ownership change for purposes of Section 382. This ownership change resulted in annual limitations to the amount of net operating loss carryforwards that can be utilized to offset future taxable income, if any, at the federal level. The Company’s management has determined that, as of April 30, 2016, it had not experienced another ownership change for purposes of Section 382. However, future transactions in the Company’s common stock could trigger an ownership change for purposes of Section 382, which could limit the amount of net operating loss carryforwards that could be utilized annually in the future to offset the Company’s taxable income, if any. Any such limitation, whether as the result of sales of common stock by the Company’s existing stockholders or sales of common stock by the Company, could have a material adverse effect on the Company’s results of operations in future years.

Geographic Information

Geographic Information	3 Months Ended
	Apr. 30, 2016
Segment Reporting [Abstract]
Geographic Information	12. Geographic Information Revenue by geographic area, attributed to individual countries based upon location of the external customer, is as follows: Three Months Ended April 30, 2016 2015 United States $ 4,307 $ 3,843 Germany 2,549 2,190 Japan 3,426 2,341 France 1,887 1,779 Korea 1,337 1,293 United Kingdom 1,644 1,861 Sweden 418 475 Other 1,217 986 $ 16,785 $ 14,768 Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net long-lived assets by principal geographic areas were as follows: April 30, January 31, United States $ 10,580 $ 11,346 France 353 388 Germany 116 110 Japan 124 116 Other 76 72 $ 11,249 $ 12,032

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 30, 2016
Accounting Policies [Abstract]
Applicable Accounting Guidance	Applicable Accounting Guidance Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative United States generally accepted accounting principles (“GAAP”) as found in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”).
Basis of Presentation	Basis of Presentation The interim financial data as of April 30, 2016 and for the three months ended April 30, 2016 and 2015 are unaudited; however, in the opinion of the Company’s management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The condensed consolidated balance sheet presented as of January 31, 2016 has been derived from the audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements presented herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Exa annual report on Form 10-K for the year ended January 31, 2016 filed with the Securities and Exchange Commission on March 21, 2016.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from management’s estimates if future events differ substantially from past experience, or other assumptions, which reasonable when made, do not turn out to be substantially accurate.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718)—Improvements to Employee Share-Based Payment Accounting.

Computation of Net Loss Per S19

Computation of Net Loss Per Share (Tables)	3 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Net (Loss) Income Per Share	The following summarizes the calculation of basic and diluted net loss per share: Three Months Ended April 30, 2016 2015 Numerator: Net loss $ (943 ) $ (1,888 ) Denominator: Weighted average common shares, basic and diluted 14,636,433 14,301,709 Basic and diluted net loss per share $ (0.06 ) $ (0.13 )
Outstanding Options, Restricted Stock Unit Awards and Warrants Excluded from Computation of Diluted Net Loss Per Share	The table below represents outstanding options, restricted stock unit awards and warrants that were excluded from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect. All of the Company’s outstanding stock options, unvested restricted stock units and warrants were anti-dilutive for the three months ended April 30, 2016 and 2015 due to the net loss position of the Company. Three Months Ended April 30, 2016 2015 Options, restricted stock unit awards and warrants to purchase common and preferred stock 1,943,562 2,606,097

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Apr. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net consists of the following: April 30, 2016 January 31, 2016 Computer software and equipment $ 18,160 $ 17,964 Office equipment and furniture 1,495 1,349 Leasehold improvements 1,619 1,562 Construction-in-process 41 169 Total property and equipment 21,315 21,044 Less accumulated depreciation (10,066 ) (9,012 ) Property and equipment, net $ 11,249 $ 12,032

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Apr. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses	Accrued expenses consist of the following: April 30, 2016 January 31, 2016 Accrued payroll $ 1,861 $ 1,828 Sales and value added taxes 1,625 4,075 Accrued commissions and bonuses 961 3,900 Accrued income taxes payable 412 541 Deferred rent, current portion 188 186 Legal and professional 554 805 Other 864 864 Total accrued expenses $ 6,465 $ 12,199

Deferred Rent (Tables)

Deferred Rent (Tables)	3 Months Ended
	Apr. 30, 2016
Text Block [Abstract]
Deferred Rent	Deferred rent consists of the following: April 30, 2016 January 31, 2016 Leasehold improvement incentive $ 1,775 $ 1,839 Non-cash rent expense 895 837 Total deferred rent 2,670 2,676 Less current portion included in accrued expenses (188 ) (186 ) Deferred rent, net of current portion $ 2,482 $ 2,490

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value	The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value as of April 30, 2016: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 11,027 $ 11,027 $ — $ — The following table summarizes the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value as of January 31, 2016: Total Level 1 Level 2 Level 3 Assets: Money market funds $ 11,019 $ 11,019 $ — $ —

Acquired Intangible Assets (Tab

Acquired Intangible Assets (Tables)	3 Months Ended
	Apr. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Carrying Value of Intangible Assets	The following table reflects the carrying value of intangible assets as of April 30, 2016: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,548 ) $ 1,957 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,586 ) $ 1,957 The following table reflects the carrying value of intangible assets as of January 31, 2016: Cost Accumulated Amortization Net Book Value Intellectual property $ 3,505 $ (1,461 ) $ 2,044 Access to facilities contract 38 (38 ) — Total $ 3,543 $ (1,499 ) $ 2,044

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Apr. 30, 2016
Stock-Based Compensation Expense Related to Stock Options Issued and Restricted Stock Units by the Company	Total stock-based compensation expense related to stock options and restricted stock units issued by the Company is as follows: Three Months Ended April 30, 2016 2015 Cost of revenues $ 44 $ 69 Sales and marketing 90 115 Research and development 183 241 General and administrative 172 189 Total $ 489 $ 614
Service Based Stock Options [Member]
Assumptions Used to Calculate Fair Value of Common Stock Options for Employees, Directors and Executive Team Members	The fair value of common stock service-based options for employees and directors is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used: Three Months Ended April 30, 2016 2015 Expected life (years) 6.25 6.25 Risk-free interest rate 1.54 % 1.80 % Expected volatility 35.3 % 39.0 % Expected dividend yield 0.0 % 0.0 %

Geographic Information (Tables)

Geographic Information (Tables)	3 Months Ended
	Apr. 30, 2016
Segment Reporting [Abstract]
Revenues by Geographic Area	Revenue by geographic area, attributed to individual countries based upon location of the external customer, is as follows: Three Months Ended April 30, 2016 2015 United States $ 4,307 $ 3,843 Germany 2,549 2,190 Japan 3,426 2,341 France 1,887 1,779 Korea 1,337 1,293 United Kingdom 1,644 1,861 Sweden 418 475 Other 1,217 986 $ 16,785 $ 14,768
Net Long-Lived Assets by Principal Geographic Area	Net long-lived assets by principal geographic areas were as follows: April 30, January 31, United States $ 10,580 $ 11,346 France 353 388 Germany 116 110 Japan 124 116 Other 76 72 $ 11,249 $ 12,032

Computation of Net Loss Per S27

Computation of Net Loss Per Share - Calculation of Basic and Diluted Net Loss Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Numerator:
Net loss	$ (943)	$ (1,888)
Denominator:
Weighted average common shares, basic and diluted	14,636,433	14,301,709
Basic and diluted net loss per share	$ (0.06)	$ (0.13)

Computation of Net Loss Per S28

Computation of Net Loss Per Share - Outstanding Options, Restricted Stock Unit Awards and Warrants Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Earnings Per Share [Abstract]
Options, restricted stock unit awards and warrants to purchase common and preferred stock	1,943,562	2,606,097

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 21,315	$ 21,044
Less accumulated depreciation	(10,066)	(9,012)
Property and equipment, net	11,249	12,032
Computer Software and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	18,160	17,964
Office Equipment and Furniture [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,495	1,349
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,619	1,562
Construction in Process [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 41	$ 169

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Jan. 31, 2016
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 923	$ 662
Cost of equipment held pursuant to capital leases	14,863	$ 14,809
Accumulated amortization	10,066		$ 9,012
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Accumulated amortization	$ 7,501		$ 6,808

Accrued Expenses - Accrued Expe

Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Payables and Accruals [Abstract]
Accrued payroll	$ 1,861	$ 1,828
Sales and value added taxes	1,625	4,075
Accrued commissions and bonuses	961	3,900
Accrued income taxes payable	412	541
Deferred rent, current portion	188	186
Legal and professional	554	805
Other	864	864
Total accrued expenses	$ 6,465	$ 12,199

Deferred Rent - Deferred Rent (

Deferred Rent - Deferred Rent (Detail) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Deferred Revenue Disclosure [Abstract]
Leasehold improvement incentive	$ 1,775	$ 1,839
Non-cash rent expense	895	837
Total deferred rent	2,670	2,676
Less current portion included in accrued expenses	(188)	(186)
Deferred rent, net of current portion	2,482	2,490
Total deferred rent	$ 2,670	$ 2,676

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Detail) - Money Market Funds [Member] - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Assets:
Money market funds	$ 11,027	$ 11,019
Level 1 [Member]
Assets:
Money market funds	$ 11,027	$ 11,019

Acquired Intangible Assets - Ca

Acquired Intangible Assets - Carrying Value of Intangible Assets (Detail) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Cost	$ 3,543	$ 3,543
Accumulated Amortization	(1,586)	(1,499)
Net Book Value	1,957	2,044
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	3,505	3,505
Accumulated Amortization	(1,548)	(1,461)
Net Book Value	1,957	2,044
Access to Facilities Contract [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	38	38
Accumulated Amortization	$ (38)	$ (38)

Acquired Intangible Assets - Ad

Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 88	$ 88

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Apr. 30, 2016	Jan. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Recorded liabilities for guarantees and indemnities	$ 0	$ 0

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions Used to Calculate Fair Value of Common Stock Options for Employees, Directors and Executive Team Members (Detail) - Service Based Stock Options [Member]	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	6 years 3 months	6 years 3 months
Risk-free interest rate	1.54%	1.80%
Expected volatility	35.30%	39.00%
Expected dividend yield	0.00%	0.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date per share for stock options	$ 4.18	$ 4.27
Total unrecognized compensation cost	$ 2,484
Weighted-average period	2 years 26 days
Performance Based Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 51
Performance Based Restricted Stock Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, granted	337,000
Vesting period	2 years

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Stock Based Compensation [Line Items]
Stock-based compensation expense	$ 489	$ 614
Cost of Revenues [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	44	69
Sales and Marketing [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	90	115
Research and Development [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	183	241
General and Administrative [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense	$ 172	$ 189

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 120	$ (26)
Income tax examination, description	With limited exceptions, the Company is no longer subject to federal, state, local or foreign examinations for years ending prior to January 31, 2012. However, carryforward attributes that were generated in tax years ending prior to January 31, 2013 may still be adjusted upon examination by state or local tax authorities if they either have been or will be used in a future period.
Decrease in the liability for unrecognized tax benefits	$ 403
Threshold percentage for change in ownership	50.00%
Period of change in ownership	3 years

Geographic Information - Revenu

Geographic Information - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 16,785	$ 14,768
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	4,307	3,843
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,549	2,190
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	3,426	2,341
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,887	1,779
Korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,337	1,293
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,644	1,861
Sweden [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	418	475
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,217	$ 986

Geographic Information - Net Lo

Geographic Information - Net Long-Lived Assets by Principal Geographic Area (Detail) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 11,249	$ 12,032
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	10,580	11,346
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	353	388
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	116	110
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	124	116
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 76	$ 72