Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2021shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2021 |
Document Transition Report | false |
Entity File Number | 1-36254 |
Entity Registrant Name | Avid Technology, Inc. |
State of Incorporation | DE |
Entity Tax Identification Number | 04-2977748 |
Entity Address, Address Line One | 75 Network Drive |
Entity Address, City or Town | Burlington |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 01803 |
City Area Code | 978 |
Local Phone Number | 640-6789 |
Title of Security | Common Stock, $0.01 par value |
Trading Symbol | AVID |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 45,021,985 |
Entity Central Index Key | 0000896841 |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net revenues: | ||||
Revenues | $ 101,640 | $ 90,431 | $ 290,880 | $ 256,165 |
Cost of revenues: | ||||
Total cost of revenues | 35,737 | 32,174 | 103,423 | 93,195 |
Gross profit | 65,903 | 58,257 | 187,457 | 162,970 |
Operating expenses: | ||||
Research and development | 17,129 | 13,623 | 48,639 | 42,116 |
Marketing and selling | 24,413 | 19,998 | 66,511 | 64,977 |
General and administrative | 14,901 | 10,796 | 42,214 | 34,144 |
Restructuring costs, net | (88) | 723 | 1,001 | 1,008 |
Total operating expenses | 56,355 | 45,140 | 158,365 | 142,245 |
Operating income | 9,548 | 13,117 | 29,092 | 20,725 |
Interest expense, net | (1,646) | (4,566) | (5,547) | (15,437) |
Other income, net | 7,864 | 143 | 4,459 | 233 |
Income before income taxes | 15,766 | 8,694 | 28,004 | 5,521 |
Provision for income taxes | 991 | 707 | 1,832 | 1,546 |
Net income | $ 14,775 | $ 7,987 | $ 26,172 | $ 3,975 |
Net income per common share – basic | $ 0.32 | $ 0.18 | $ 0.58 | $ 0.09 |
Net income per common share – diluted | $ 0.32 | $ 0.18 | $ 0.56 | $ 0.09 |
Weighted-average common shares outstanding – basic | 45,564 | 44,019 | 45,115 | 43,665 |
Weighted-average common shares outstanding – diluted | 46,428 | 44,758 | 46,449 | 44,498 |
Products | ||||
Net revenues: | ||||
Revenues | $ 36,850 | $ 35,775 | $ 107,295 | $ 98,121 |
Cost of revenues: | ||||
Total cost of revenues | 20,468 | 20,957 | 60,044 | 58,873 |
Services | ||||
Net revenues: | ||||
Revenues | 64,790 | 54,656 | 183,585 | 158,044 |
Cost of revenues: | ||||
Total cost of revenues | $ 15,269 | $ 11,217 | $ 43,379 | $ 34,322 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income | $ 14,775 | $ 7,987 | $ 26,172 | $ 3,975 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (738) | 995 | (1,980) | 1,114 |
Comprehensive income (loss) | $ 14,037 | $ 8,982 | $ 24,192 | $ 5,089 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 50,485 | $ 79,899 |
Restricted cash | 1,422 | 1,422 |
Accounts receivable, net of allowances | 58,125 | 78,614 |
Inventories | 22,215 | 26,568 |
Prepaid expenses | 6,766 | 6,044 |
Contract assets | 22,612 | 18,579 |
Other current assets | 2,335 | 2,366 |
Total current assets | 163,960 | 213,492 |
Property and equipment, net | 15,211 | 16,814 |
Goodwill | 32,643 | 32,643 |
Right of use assets | 25,202 | 29,430 |
Deferred tax assets, net | 5,413 | 6,801 |
Other long-term assets | 6,462 | 5,958 |
Total assets | 248,891 | 305,138 |
Current liabilities: | ||
Accounts payable | 22,413 | 21,823 |
Accrued compensation and benefits | 26,320 | 29,105 |
Accrued expenses and other current liabilities | 34,511 | 42,264 |
Income taxes payable | 1,447 | 1,664 |
Less: current portion | 9,159 | 4,941 |
Deferred revenues | 76,658 | 87,974 |
Total current liabilities | 170,508 | 187,771 |
Long-term debt | 162,990 | 202,759 |
Long-term deferred revenues | 10,109 | 11,284 |
Long-term lease liabilities | 24,466 | 28,462 |
Other long-term liabilities | 7,249 | 7,786 |
Total liabilities | 375,322 | 438,062 |
Commitments and contingencies (Note 7) | ||
Stockholders' deficit: | ||
Common stock, par value $0.01; authorized: 100,000 shares; issued: 45,693 shares at September 30, 2021 and 44,420 shares at December 31, 2020; outstanding: 45,281 shares at September 30, 2021 and 44,420 shares at December 31, 2020 | 454 | 442 |
Treasury stock | (11,169) | 0 |
Additional paid-in capital | 1,030,116 | 1,036,658 |
Accumulated deficit | (1,142,175) | (1,168,347) |
Accumulated other comprehensive loss | (3,657) | (1,677) |
Total stockholders' deficit | (126,431) | (132,924) |
Total liabilities and stockholders' deficit | $ 248,891 | $ 305,138 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts | $ 0 |
CONSOLDATED STATEMENTS OF STOCK
CONSOLDATED STATEMENTS OF STOCKHOLDERS' DEFICIT Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] |
Shares, Issued | 43,150,000 | |||||
Balances at beginning of period at Dec. 31, 2019 | $ (155,085) | $ 430 | $ 1,027,824 | $ (1,179,409) | $ (3,930) | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 398,000 | |||||
Stock issued pursuant to employee stock plans | (1,814) | $ 4 | (1,818) | |||
Stock-based compensation | 2,109 | 2,109 | ||||
Net Income (Loss) Attributable to Parent | (5,857) | (5,857) | ||||
Other Comprehensive Income (Loss), Net of Tax | (815) | (815) | ||||
Balances at end of period at Mar. 31, 2020 | (161,462) | 434 | 1,028,115 | (1,185,266) | (4,745) | |
Balances at beginning of period at Dec. 31, 2019 | (155,085) | 430 | 1,027,824 | (1,179,409) | (3,930) | |
Net Income (Loss) Attributable to Parent | 3,975 | |||||
Balances at end of period at Sep. 30, 2020 | (144,212) | $ 439 | 1,033,599 | (1,175,434) | (2,816) | |
Shares, Issued | 43,548,000 | |||||
Balances at beginning of period at Mar. 31, 2020 | (161,462) | $ 434 | 1,028,115 | (1,185,266) | (4,745) | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 368,000 | |||||
Stock issued pursuant to employee stock plans | (535) | $ 3 | (538) | |||
Stock-based compensation | 2,726 | 2,726 | ||||
Net Income (Loss) Attributable to Parent | 1,845 | 1,845 | ||||
Other Comprehensive Income (Loss), Net of Tax | 934 | 934 | ||||
Balances at end of period at Jun. 30, 2020 | (156,492) | $ 437 | 1,030,303 | (1,183,421) | (3,811) | |
Shares, Issued | 43,916,000 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 207,000 | |||||
Stock issued pursuant to employee stock plans | 1 | $ 2 | (1) | |||
Stock-based compensation | 3,297 | 3,297 | ||||
Net Income (Loss) Attributable to Parent | 7,987 | 7,987 | ||||
Other Comprehensive Income (Loss), Net of Tax | 995 | 995 | ||||
Balances at end of period at Sep. 30, 2020 | (144,212) | $ 439 | 1,033,599 | (1,175,434) | (2,816) | |
Shares, Issued | 44,123,000 | |||||
Shares, Issued | 44,420,000 | |||||
Balances at beginning of period at Dec. 31, 2020 | (132,924) | $ 442 | 1,036,658 | (1,168,347) | (1,677) | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 592,000 | |||||
Stock issued pursuant to employee stock plans | (7,706) | $ 6 | (7,712) | |||
Stock-based compensation | 3,122 | 3,122 | ||||
Net Income (Loss) Attributable to Parent | 4,391 | 4,391 | ||||
Other Comprehensive Income (Loss), Net of Tax | (1,457) | (1,457) | ||||
Balances at end of period at Mar. 31, 2021 | (134,574) | 448 | 1,032,068 | (1,163,956) | (3,134) | |
Balances at beginning of period at Dec. 31, 2020 | (132,924) | 442 | 1,036,658 | (1,168,347) | (1,677) | |
Net Income (Loss) Attributable to Parent | 26,172 | |||||
Balances at end of period (in shares) at Sep. 30, 2021 | (412,000) | |||||
Balances at end of period at Sep. 30, 2021 | (126,431) | $ 454 | 1,030,116 | (1,142,175) | (3,657) | $ (11,169) |
Shares, Issued | 45,012,000 | |||||
Balances at beginning of period at Mar. 31, 2021 | (134,574) | $ 448 | 1,032,068 | (1,163,956) | (3,134) | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 513,000 | |||||
Stock issued pursuant to employee stock plans | (5,969) | $ 4 | (5,973) | |||
Stock-based compensation | 3,580 | 3,580 | ||||
Net Income (Loss) Attributable to Parent | 7,006 | 7,006 | ||||
Other Comprehensive Income (Loss), Net of Tax | 215 | 215 | ||||
Balances at end of period at Jun. 30, 2021 | (129,742) | $ 452 | 1,029,675 | (1,156,950) | (2,919) | |
Shares, Issued | 45,525,000 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 168,000 | |||||
Stock issued pursuant to employee stock plans | (3,071) | $ 2 | (3,073) | |||
Repurchase of common stock | (11,169) | $ (11,169) | ||||
Repurchase of common stock (in shares) | (412,175) | |||||
Stock-based compensation | 3,514 | 3,514 | ||||
Net Income (Loss) Attributable to Parent | 14,775 | 14,775 | ||||
Other Comprehensive Income (Loss), Net of Tax | (738) | (738) | ||||
Balances at end of period (in shares) at Sep. 30, 2021 | (412,000) | |||||
Balances at end of period at Sep. 30, 2021 | $ (126,431) | $ 454 | $ 1,030,116 | $ (1,142,175) | $ (3,657) | $ (11,169) |
Shares, Issued | 45,693,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 26,172 | $ 3,975 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 6,323 | 6,317 |
Allowance for doubtful accounts | 401 | 1,349 |
Stock-based compensation expense | 10,216 | 8,132 |
Non-cash provision for restructuring | 841 | 653 |
Non-cash interest expense | 386 | 3,408 |
Loss (gain) on extinguishment of debt | 2,579 | 0 |
Gain on forgiveness of PPP loan | 7,800 | 0 |
Unrealized foreign currency transaction (gains) losses | (1,400) | 219 |
Provision for (benefit from) deferred taxes | 1,388 | 997 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 20,089 | 12,741 |
Inventories | 4,353 | 788 |
Prepaid expenses and other assets | (1,343) | 1,390 |
Accounts payable | 590 | (26,440) |
Accrued expenses, compensation and benefits and other liabilities | (10,635) | 7,752 |
Income taxes payable | (217) | 81 |
Deferred revenue and contract assets | (16,525) | (12,519) |
Net cash provided by operating activities | 35,418 | 8,843 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4,750) | (5,619) |
Net cash used in investing activities | (4,750) | (5,619) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 0 | 22,000 |
Repayment on revolving line of credit | 0 | (22,000) |
Proceeds from long-term debt | 180,000 | 7,800 |
Repayment of debt | (208,142) | (1,474) |
Payments for repurchase of common stock | (10,526) | 0 |
Payments for repurchase of outstanding notes | 0 | (28,867) |
Proceeds from the issuance of common stock under employee stock plans | 363 | 252 |
Common stock repurchases for tax withholdings for net settlement of equity awards | (17,108) | (2,610) |
Unwind capped call cash receipt | 0 | 875 |
Prepayment penalty on extinguishment of debt | (1,169) | 0 |
Payments for credit facility issuance costs | (2,574) | (289) |
Net cash (used in) provided by financing activities | (59,156) | (24,313) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (927) | 1,394 |
Net decrease in cash, cash equivalents and restricted cash | (29,415) | (19,695) |
Cash, cash equivalents and restricted cash at beginning of period | 83,638 | 72,575 |
Cash, cash equivalents and restricted cash at end of period | 54,223 | 52,880 |
Supplemental information: | ||
Cash and cash equivalents | 50,485 | 49,142 |
Restricted cash | 1,422 | 1,664 |
Restricted cash included in other long-term assets | 2,316 | 2,074 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 54,223 | 52,880 |
Cash paid (refunded) for income taxes | 706 | (659) |
Cash paid for interest | $ 6,354 | $ 13,579 |
FINANCIAL INFORMATION (Notes)
FINANCIAL INFORMATION (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
FINANCIAL INFORMATION | FINANCIAL INFORMATION The accompanying condensed consolidated financial statements include the accounts of Avid Technology, Inc. and its wholly owned subsidiaries (collectively, “we” or “our”). These financial statements are unaudited. However, in the opinion of management, the condensed consolidated financial statements reflect all normal and recurring adjustments necessary for their fair statement. Interim results are not necessarily indicative of results expected for any other interim period or a full year. We prepared the accompanying unaudited condensed consolidated financial statements in accordance with the instructions for Form 10-Q and, therefore, include all information and footnotes necessary for a complete presentation of operations, comprehensive income, financial position, changes in stockholders’ deficit, and cash flows in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying condensed consolidated balance sheet as of December 31, 2020 was derived from our audited consolidated financial statements and does not include all disclosures required by U.S. GAAP for annual financial statements. We filed audited consolidated financial statements as of and for the year ended December 31, 2020 in our Annual Report on Form 10-K for the year ended December 31, 2020, which included information and footnotes necessary for such presentation. The financial statements contained in this Form 10-Q should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020. The consolidated results of operations for the three or nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business and consumer confidence. The novel coronavirus (COVID-19) pandemic, together with the measures implemented or recommended by governmental authorities and private organizations in response to the pandemic, has had a material adverse impact to the Company's business, operating results and financial condition primarily due to reduced demand for our products and services which has led to lower net revenues. The Company began experiencing a significant decline in international and domestic demand due to COVID-19 by the end of the first quarter of 2020, and this reduction in demand continued through the balance of 2020. These economic impacts were the result of, but not limited to: • the postponement or cancellation of film and television productions, major sporting events, and live music events; • delays in purchasing and projects by our enterprise customers and channel partners; • disruption to the supply chain caused by distribution and other logistical issues, including disruptions arising from government restrictions; and • decreased productivity due to travel restrictions, work-from-home policies or shelter-in-place orders. Through 2021, our results have shown a gradual recovery towards pre-pandemic spending levels with the continuing positive signs of recovery from the impacts of the COVID-19 pandemic driven by vaccination and government stimulus programs, particularly in the United States. At the same time, certain countries continue to face challenges with renewed lockdowns and travel restrictions and there remains uncertainty relating to the ongoing spread and severity of the virus and its variants. While we are encouraged by the trends we have seen so far in 2021, to the extent that the pandemic continues to have negative impacts on economies, our results could be affected and uneven. Consequently, we will continue to evaluate our financial position in light of future developments, particularly those relating to COVID-19. Our preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from our estimates. Significant Accounting Policies - Revenue Recognition We enter into contracts with customers that include various combinations of products and services, which are typically capable of being distinct and are accounted for as separate performance obligations. We account for a contract when (i) it has approval and commitment from both parties, (ii) the rights of the parties have been identified, (iii) payment terms have been identified, (iv) the contract has commercial substance, and (v) collectability is probable. We recognize revenue upon transfer of control of promised products or services to customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts, in an amount that reflects the consideration we expect to receive in exchange for those products or services. We often enter into contractual arrangements that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These arrangements may include a combination of products, maintenance, training, and professional services. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price of each distinct performance obligation. See Note 9 for disaggregated revenue schedules and further discussion on revenue and deferred revenue performance obligations and the timing of revenue recognition. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements On January 1, 2021, we adopted ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. Our adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements To Be Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
NET INCOME PER SHARE Earnings P
NET INCOME PER SHARE Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Net income per common share is presented for both basic income per share (“Basic EPS”) and diluted income per share (“Diluted EPS”). Basic EPS is based on the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and common share equivalents outstanding during the period. The potential common shares that were considered anti-dilutive securities were excluded from the diluted earnings per share calculations for the relevant periods either because the sum of the exercise price per share and the unrecognized compensation cost per share was greater than the average market price of our common stock for the relevant periods, or because they were considered contingently issuable. The contingently issuable potential common shares result from certain stock options and restricted stock units granted to our employees that vest based on performance conditions, market conditions, or a combination of performance and market conditions. The following table sets forth (in thousands) potential common shares that were considered anti-dilutive securities at September 30, 2021 and 2020: September 30, 2021 September 30, 2020 Options — 390 Non-vested restricted stock units 930 3,220 Anti-dilutive potential common shares 930 3,610 The following table sets forth (in thousands) the basic and diluted weighted common shares outstanding for the three and nine months ended September 30, 2021: Three months ended Nine month ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Weighted common shares outstanding - basic 45,564 44,019 45,115 43,665 Net effect of common stock equivalents 864 739 1,334 833 Weighted common shares outstanding - diluted 46,428 44,758 46,449 44,498 |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets Measured at Fair Value on a Recurring Basis We measure deferred compensation investments on a recurring basis. As of September 30, 2021 and December 31, 2020, our deferred compensation investments were classified as either Level 1 or Level 2 in the fair value hierarchy. Assets valued using quoted market prices in active markets and classified as Level 1 are money market and mutual funds. Assets valued based on other observable inputs and classified as Level 2 are insurance contracts. The following tables summarize our deferred compensation investments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Reporting Date Using September 30, Quoted Prices in Significant Significant Financial assets: Deferred compensation assets $ 372 $ 99 $ 273 $ — Fair Value Measurements at Reporting Date Using December 31, 2020 Quoted Prices in Significant Significant Financial assets: Deferred compensation assets $ 522 $ 282 $ 240 $ — Financial Instruments Not Recorded at Fair Value |
INVENTORIES (Notes)
INVENTORIES (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following (in thousands): September 30, 2021 December 31, 2020 Raw materials $ 6,710 $ 8,223 Work in process 304 353 Finished goods 15,201 17,992 Total $ 22,215 $ 26,568 |
LEASES LEASES (Notes)
LEASES LEASES (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES We have entered into a number of facility leases to support our research and development activities, sales operations, and other corporate and administrative functions in North America, Europe, and Asia, which qualify as operating leases under U.S. GAAP. We also have a limited number of equipment leases that qualify as either operating or finance leases. We determine if contracts with vendors represent a lease or have a lease component under U.S. GAAP at contract inception. Our leases have remaining terms ranging from less than one year to seven years. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. As our leases generally do not provide an implicit rate, we use an estimated incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular location and currency environment. As of September 30, 2021, the weighted average incremental borrowing rate was 6.0% and the weighted average remaining lease term was 6.0 years. Finance lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. Each lease agreement provides an implicit discount rate used to determine the present value of future payments. As of September 30, 2021, the weighted-average discount rate was 2.3% and the weighted average remaining lease term was 2.0 years. Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. Our total operating lease costs were $1.7 million and $2.2 million for the three months ended September 30, 2021 and September 30, 2020, respectively, and $5.4 million and $7.2 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. Related cash payments were $1.9 million and $2.0 million for the three months ended September 30, 2021 and September 30, 2020, respectively, and were $5.8 million and $6.9 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. Short term lease costs were $0.4 million and $1.0 million for the three and nine months ended September 30, 2021, respectively. Short term lease costs for the three and nine months ended September 30, 2020 were immaterial. Operating lease costs are included within research and development, marketing and selling, and general and administrative lines on the condensed consolidated statements of operations, and the related cash payments are included in the operating cash flows on the condensed consolidated statements of cash flows. Finance lease costs, variable lease costs, and sublease income are not material. The table below reconciles the undiscounted future minimum lease payments for operating and finance leases under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2021 (in thousands): Year Ending December 31, Operating Leases Finance Leases 2021 (excluding nine months ended September 30, 2021) $ 1,847 $ 167 2022 6,549 255 2023 5,613 226 2024 4,942 — 2025 5,031 — Thereafter 11,695 — Total future minimum lease payments $ 35,677 $ 648 Less effects of discounting (6,004) (13) Total lease liabilities $ 29,673 $ 635 Supplemental balance sheet information related to leases was as follows (in thousands): Operating Leases September 30, 2021 Right of use assets $ 25,202 Accrued expenses and other current liabilities (5,207) Long-term lease liabilities (24,466) Total lease liabilities $ (29,673) Finance Leases September 30, 2021 Other assets $ 490 Accrued expenses and other current liabilities (246) Other long-term liabilities (389) Total lease liabilities $ (635) |
LEASES | LEASES We have entered into a number of facility leases to support our research and development activities, sales operations, and other corporate and administrative functions in North America, Europe, and Asia, which qualify as operating leases under U.S. GAAP. We also have a limited number of equipment leases that qualify as either operating or finance leases. We determine if contracts with vendors represent a lease or have a lease component under U.S. GAAP at contract inception. Our leases have remaining terms ranging from less than one year to seven years. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. As our leases generally do not provide an implicit rate, we use an estimated incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular location and currency environment. As of September 30, 2021, the weighted average incremental borrowing rate was 6.0% and the weighted average remaining lease term was 6.0 years. Finance lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. Each lease agreement provides an implicit discount rate used to determine the present value of future payments. As of September 30, 2021, the weighted-average discount rate was 2.3% and the weighted average remaining lease term was 2.0 years. Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. Our total operating lease costs were $1.7 million and $2.2 million for the three months ended September 30, 2021 and September 30, 2020, respectively, and $5.4 million and $7.2 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. Related cash payments were $1.9 million and $2.0 million for the three months ended September 30, 2021 and September 30, 2020, respectively, and were $5.8 million and $6.9 million for the nine months ended September 30, 2021 and September 30, 2020, respectively. Short term lease costs were $0.4 million and $1.0 million for the three and nine months ended September 30, 2021, respectively. Short term lease costs for the three and nine months ended September 30, 2020 were immaterial. Operating lease costs are included within research and development, marketing and selling, and general and administrative lines on the condensed consolidated statements of operations, and the related cash payments are included in the operating cash flows on the condensed consolidated statements of cash flows. Finance lease costs, variable lease costs, and sublease income are not material. The table below reconciles the undiscounted future minimum lease payments for operating and finance leases under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2021 (in thousands): Year Ending December 31, Operating Leases Finance Leases 2021 (excluding nine months ended September 30, 2021) $ 1,847 $ 167 2022 6,549 255 2023 5,613 226 2024 4,942 — 2025 5,031 — Thereafter 11,695 — Total future minimum lease payments $ 35,677 $ 648 Less effects of discounting (6,004) (13) Total lease liabilities $ 29,673 $ 635 Supplemental balance sheet information related to leases was as follows (in thousands): Operating Leases September 30, 2021 Right of use assets $ 25,202 Accrued expenses and other current liabilities (5,207) Long-term lease liabilities (24,466) Total lease liabilities $ (29,673) Finance Leases September 30, 2021 Other assets $ 490 Accrued expenses and other current liabilities (246) Other long-term liabilities (389) Total lease liabilities $ (635) |
OTHER LONG-TERM LIABILITIES (No
OTHER LONG-TERM LIABILITIES (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Other long-term liabilities consisted of the following (in thousands): September 30, 2021 December 31, 2020 Deferred compensation $ 5,407 $ 5,818 Finance lease liabilities 389 472 Other long-term liabilities 1,453 1,496 Total $ 7,249 $ 7,786 |
CONTINGENCIES (Notes)
CONTINGENCIES (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments We entered into a long-term agreement to purchase a variety of information technology solutions from a third party in the second quarter of 2020, which included an unconditional commitment to purchase a minimum of $32.2 million of products and services over the initial five years of the agreement. We have purchased $9.2 million of products and services pursuant to this agreement as of September 30, 2021. We have letters of credit that are used as security deposits in connection with our leased Burlington, Massachusetts office space. In the event of default on the underlying leases, the landlords would, at September 30, 2021, be eligible to draw against the letters of credit to a maximum of $0.7 million in the aggregate. The letters of credit are subject to aggregate reductions provided that we are not in default under the underlying leases and meet certain financial performance conditions. In no case will the letters of credit amounts for the Burlington leases be reduced to below $0.7 million in the aggregate throughout the lease periods. We also have letters of credit in connection with security deposits for other facility leases totaling $0.6 million in the aggregate, as well as letters of credit totaling $1.9 million that otherwise support our ongoing operations. These letters of credit have various terms and expire during 2021 and beyond, while some of the letters of credit may automatically renew based on the terms of the underlying agreements. Substantially all of our letters of credit are collateralized by restricted cash included in the caption “Restricted cash” and “Other long-term assets” on our condensed consolidated balance sheets as of September 30, 2021. Contingencies Our industry is characterized by the existence of a large number of patents and frequent claims and litigation regarding patent and other intellectual property rights. In addition to the legal proceedings described below, we are involved in legal proceedings from time to time arising from the normal course of business activities, including claims of alleged infringement of intellectual property rights and contractual, commercial, employee relations, product or service performance, or other matters. We do not believe these matters will have a material adverse effect on our financial position or results of operations. However, the outcome of legal proceedings and claims brought against us is subject to significant uncertainty. Therefore, our financial position or results of operations may be negatively affected by the unfavorable resolution of one or more of these proceedings for the period in which a matter is resolved. Our results could be materially adversely affected if we are accused of, or found to be, infringing third parties’ intellectual property rights. Following the termination of our former Chairman and Chief Executive Officer on February 25, 2018, we received a notice alleging that we breached the former executive’s employment agreement. On April 16, 2019, we received an additional notice again alleging we breached the former executive’s employment agreement. We have since been in communications with our former Chairman and Chief Executive Officer’s counsel. While we intend to defend any claim vigorously, when and if a claim is actually filed, we are currently unable to estimate an amount or range of any reasonably possible losses that could occur as a result of this matter. On July 14, 2020, we sent a notice to a customer demanding sums that we believe are due to Avid pursuant to a contract. On October 7, 2020, the customer sent a notice to us denying any legal liability and demanding payment for breach of contract resulting from various alleged delays by us. While we intend to defend any claim vigorously when and if a claim is actually filed, we are currently unable to estimate an amount or range of any reasonably possible losses that could occur related to this matter. We consider all claims on a quarterly basis and based on known facts assess whether potential losses are considered reasonably possible, probable, and estimable. Based upon this assessment, we then evaluate disclosure requirements and whether to accrue for such claims in our condensed consolidated financial statements. We record a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. At September 30, 2021 and as of the date of filing of these condensed consolidated financial statements, we believe that, other than as set forth in this note, no provision for liability nor disclosure is required related to any claims because: (a) there is no reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim, (b) a reasonably possible loss or range of loss cannot be estimated, or (c) such estimate is immaterial. Additionally, we provide indemnification to certain customers for losses incurred in connection with intellectual property infringement claims brought by third parties with respect to our products. These indemnification provisions generally offer perpetual coverage for infringement claims based upon the products covered by the agreement and the maximum potential amount of future payments we could be required to make under these indemnification provisions is theoretically unlimited. To date, we have not incurred material costs related to these indemnification provisions; accordingly, we believe the estimated fair value of these indemnification provisions is immaterial. Further, certain of our arrangements with customers include clauses whereby we may be subject to penalties for failure to meet certain performance obligations; however, we have not recorded any related material penalties to date. We provide warranties on externally sourced and internally developed hardware. For internally developed hardware, and in cases where the warranty granted to customers for externally sourced hardware is greater than that provided by the manufacturer, we record an accrual for the related liability based on historical trends and actual material and labor costs. The following table sets forth the activity in the product warranty accrual account for the nine months ended September 30, 2021 and 2020 (in thousands): Nine Months Ended September 30, 2021 2020 Accrual balance at beginning of period $ 1,095 $ 1,337 Accruals for product warranties 988 1,030 Costs of warranty claims (900) (1,003) Accrual balance at end of period $ 1,183 $ 1,364 The warranty accrual is included in the caption “accrued expenses and other current liabilities” in our condensed consolidated balance sheet. |
RESTRUCTURING COSTS AND ACCRUAL
RESTRUCTURING COSTS AND ACCRUALS (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS AND ACCRUALS | RESTRUCTURING COSTS AND ACCRUALS In October 2020, we committed to a restructuring plan in order to undergo a strategic reorganization of our business. The strategic reorganization involved significant changes in business operations to better support our strategy and overall performance. The restructuring plan related to our strategic reorganization is expected to be substantially completed in 2021. During the three months ended September 30, 2021, we recorded recoveries of $0.1 million due to employee severance cost adjustments. During the nine months ended September 30, 2021, we recorded restructuring charges of $1.0 million for employee severance costs related to approximately 24 positions eliminated throughout 2021. During the three months and nine months ended September 30, 2020 , we recorded restructuring charges of $0.7 million and $1.0 million, respectively, for employee severance costs. The following table sets forth the activity in the restructuring accruals for the nine months ended September 30, 2021 (in thousands): Employee Accrual balance as of December 31, 2020 $ 3,687 Restructuring charges and revisions 838 Cash payments (3,778) Foreign exchange impact on ending balance (24) Accrual balance as of September 30, 2021 $ 723 The employee restructuring accrual at September 30, 2021 represents severance costs to former employees that will be paid out within 12 months, and is, therefore, included in the caption “accrued expenses and other current liabilities” in our condensed consolidated balance sheets as of September 30, 2021. |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregated Revenue and Geography Information Through the evaluation of the discrete financial information that is regularly reviewed by the chief operating decision makers (our chief executive officer and chief financial officer), we have determined that we have one reportable segment. The following table is a summary of our revenues by type for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Products and solutions net revenues $ 36,850 $ 35,775 $ 107,295 $ 98,121 Subscription services 28,008 17,907 74,384 48,292 Maintenance 30,702 30,826 90,997 93,190 Professional services, training and other services 6,080 5,923 18,204 16,562 Total net revenues $ 101,640 $ 90,431 $ 290,880 $ 256,165 The following table sets forth our revenues by geographic region for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: United States $ 45,026 $ 36,190 $ 126,084 $ 105,166 Other Americas 5,222 4,505 15,030 15,841 Europe, Middle East and Africa 38,782 37,537 109,400 99,478 Asia-Pacific 12,610 12,199 40,366 35,680 Total net revenues $ 101,640 $ 90,431 $ 290,880 $ 256,165 Contract Asset Contract asset activity for the nine months ended September 30, 2021 and 2020 was as follows (in thousands): September 30, 2021 September 30, 2020 Contract asset at beginning of year $ 18,579 $ 19,494 Revenue in excess of billings 43,757 22,045 Customer billings (39,724) (26,263) Contract asset at end of period $ 22,612 $ 15,276 Deferred Revenue Deferred revenue activity for the nine months ended September 30, 2021 and 2020 was as follows (in thousands): September 30, 2021 September 30, 2020 Deferred revenue at beginning of period $ 99,258 $ 97,901 Billings deferred 56,846 47,723 Recognition of prior deferred revenue (69,337) (64,460) Deferred revenue at end of period $ 86,767 $ 81,164 A summary of the significant performance obligations included in deferred revenue is as follows (in thousands): September 30, 2021 Product $ 4,364 Subscription 7,380 Maintenance contracts 66,676 Implied PCS 6,400 Professional services, training and other 1,947 Deferred revenue at September 30, 2021 $ 86,767 Remaining Performance Obligations For transaction prices allocated to remaining performance obligations, we apply practical expedients and do not disclose quantitative or qualitative information for remaining performance obligations (i) that have original expected durations of one year or less and (ii) where we recognize revenue equal to what we have the right to invoice and that amount corresponds directly with the value to the customer of our performance to date. Historically, for many of our products, we had an ongoing practice of making when-and-if-available software updates available to customers free of charge for a period of time after initial sales to customers. The expectation created by this practice of providing free Software Updates represents an implied obligation of a form of post-contract customer support (“Implied PCS”) which represents a performance obligation. While we have ceased providing Implied PCS on new product offerings, we continue to provide Implied PCS for older products that were predominately sold in prior years. Revenue attributable to Implied PCS performance obligations is recognized over time on a ratable basis over the period that Implied PCS is expected to be provided, which is typically six years. We have remaining performance obligations of $6.4 million attributable to Implied PCS recorded in deferred revenue as of September 30, 2021. We expect to recognize revenue for these remaining performance obligations of $0.7 million for the remainder of 2021 and $2.2 million, $1.5 million, $1.0 million and $0.6 million for the years ending December 31, 2022, 2023, 2024, and 2025, respectively, and $0.4 million thereafter. As of September 30, 2021, we had approximately $40.7 million of transaction price allocated to remaining performance obligations for certain enterprise agreements that have not yet been fully invoiced. Approximately $32.0 million of these performance obligations were unbilled as of September 30, 2021. Remaining performance obligations represent obligations we must deliver for specific products and services in the future where there is not yet an enforceable right to invoice the customer. Our remaining performance obligations do not include contractually committed minimum purchases that are common in our strategic purchase agreements with resellers since our specific obligations to deliver products or services is not yet known, as customers may satisfy such commitments by purchasing an unknown combination of current or future product offerings. While the timing of fulfilling individual performance obligations under the contracts can vary dramatically based on customer requirements, we expect to recognize the $40.7 million in roughly equal installments through 2026. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations due to contract breach, contract amendments, and changes in the expected timing of delivery. |
LONG-TERM DEBT AND CREDIT AGREE
LONG-TERM DEBT AND CREDIT AGREEMENT (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG TERM DEBT AND CREDIT AGREEMENT | LONG-TERM DEBT AND CREDIT AGREEMENT Long-term debt consisted of the following (in thousands): September 30, 2021 December 31, 2020 Term Loan, net of unamortized issuance costs and debt discount of $2,188 and $2,579 at September 30, 2021 and December 31, 2020, respectively $ 171,062 $ 198,629 PPP loan — 7,800 Other long-term debt 1,087 1,271 Total debt $ 172,149 $ 207,700 Less: current portion 9,159 4,941 Total long-term debt $ 162,990 $ 202,759 The following table summarizes the contractual maturities of our borrowing obligations as of September 30, 2021 (in thousands): Fiscal Year Credit Agreement Other Long-Term Debt Total 2021 $ 2,250 39 $ 2,289 2022 9,000 162 9,162 2023 13,500 174 13,674 2024 18,000 186 18,186 2025 18,000 200 18,200 Thereafter 112,500 326 112,826 Total before unamortized discount 173,250 1,087 174,337 Less: unamortized discount and issuance costs 2,188 — 2,188 Less: current portion of long-term debt 9,000 159 9,159 Total long-term debt $ 162,062 $ 928 $ 162,990 Credit Agreement On January 5, 2021, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. as collateral and administrative agent, and a syndicate of banks, as lenders thereunder (the “Lenders”). Pursuant to the Credit Agreement, the Lenders agreed to provide the Company with (a) a term loan in the aggregate principal amount of $180.0 million (the “Term Loan”) and (b) a revolving credit facility (the “Credit Facility”) of up to a maximum of $70.0 million in borrowings outstanding at any time. The Credit Facility, which was undrawn at closing, can be used for working capital, other general corporate purposes and for other permitted uses. The proceeds from the Term Loan, plus available cash on hand, were used to repay outstanding borrowings of $201 million under the Company’s prior financing agreement with Cerberus Business Finance, LLC ( the “Financing Agreement”), which was then terminated. As a result of this termination, the Company incurred a loss on extinguishment of debt of $3.7 million as a result of writing off $2.6 million of remaining unamortized issuance costs as well as a $1.1 million prepayment penalty. The Term Loan has an initial interest rate of LIBOR plus an applicable margin of 3.00%, with a 0.25% LIBOR floor. The applicable margin on the Term Loan and the Credit Facility ranges from 2.00% to 3.25%, depending on leverage. The effective interest rate for the three months ended September 30, 2021 was 2.86%. The Term Loan requires quarterly principal payments which commenced in March 2021 equal to 5.0% of the original principal amount of the Term Loan in years one and two, 7.5% of the original principal amount of the Term Loan in year three, and 10% of the original principal amount of the Term Loan in years four and five, with the remaining aggregate principal amount due at maturity. The Company granted a security interest on substantially all of its assets to secure the obligations under the Credit Facility and the Term Loan. The Credit Agreement contains two financial covenants: (i) a requirement to maintain a total net leverage ratio, as defined in the Credit Agreement, of no more than 4.00 to 1.00 through June 30, 2021, with step downs thereafter, and (ii) a requirement to maintain a fixed charge coverage ratio, as defined in the Credit Agreement, of no less than 1.20 to 1.00. Both the Term Loan and the revolving Credit Facility mature on January 5, 2026. We were in compliance with the Credit Agreement covenants as of September 30, 2021. In connection with the Credit Agreement, the Company incurred $2.5 million of issuance discounts and an immaterial amount of issuance costs. The Term Loan discount and issuance costs will be amortized over the five year life of the Credit Agreement. We recorded $1.3 million and $4.1 million of interest expense on the Term Loan for the three and nine months ended September 30, 2021, respectively. As of September 30, 2021, there were no amounts drawn under the Credit Facility. PPP Loan On May 11, 2020, the Company received $7.8 million of proceeds in connection with its incurrence of a loan under the Paycheck Protection Program (“PPP”) which was created through the Coronavirus Aid, Relief, and Economic Act (“CARES Act”) and is administered by the U.S. Small Business Administration (“SBA”). The application for these funds required the Company to, in good faith, certify that the economic uncertainty at the time of application made the loan request necessary to support the ongoing operations of the Company. This certification further required the Company to take into account its then-current business activity and ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of the loan attendant to these funds, was dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on its future adherence to the forgiveness criteria. On July 6, 2021, the Company received notification from the Lender that the SBA approved the Company’s PPP loan forgiveness application for the entire PPP loan balance of $7.8 million plus all accrued interest. The Company recorded the forgiveness of $7.8 million of principal as a gain on forgiveness of debt, included in the Statements of Operations as other income. |
STOCKHOLDERS' EQUITY (Notes)
STOCKHOLDERS' EQUITY (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock-Based Compensation Information with respect to the Company’s option shares granted under all of our stock incentive plans for the nine months ended September 30, 2021 was as follows: Total Number of Options Weighted- Weighted- Aggregate Options outstanding at January 1, 2021 246,000 $7.48 Granted — — Exercised (246,000) 7.48 Forfeited or canceled — — Options outstanding at September 30, 2021 — — — — Information with respect to the Company’s non-vested restricted stock units for the nine months ended September 30, 2021 was as follows: Number of Restricted Stock Units Weighted- Weighted- Aggregate Shares Retained to Cover Statutory Minimum Withholding Taxes Non-vested at January 1, 2021 2,114,879 $7.01 — Granted 452,759 28.99 — Vested (1,269,341) 6.76 (414,070) Forfeited (41,123) 9.25 — Outstanding at September 30, 2021 1,257,174 $15.09 0.92 $36,345 Information with respect to the Company’s non-vested performance-based restricted stock units for the nine months ended September 30, 2021 was as follows: Number of Performance-based Restricted Stock Units Weighted- Weighted- Aggregate Shares Retained to Cover Statutory Minimum Withholding Taxes Non-vested at January 1, 2021 653,428 $6.74 — Granted 397,048 15.07 — Vested (471,112) 5.81 (196,703) Forfeited — — — Non-vested at September 30, 2021 579,364 $13.20 1.04 $16,749 Stock-based compensation was included in the following captions in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Share-based compensation expense by type: Time-based Restricted Stock Units $ 2,507 $ 2,515 $ 7,528 $ 6,032 Performance-based Restricted Stock Units 977 756 2,599 2,021 ESPP 30 26 89 79 Total share-based compensation expense $ 3,514 $ 3,297 $ 10,216 $ 8,132 ` Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of products revenues $ 132 $ 150 $ 423 $ 370 Cost of services revenues 311 283 938 539 Research and development expenses 340 546 1,270 1,199 Marketing and selling expenses 639 739 1,858 1,761 General and administrative expenses 2,092 1,579 5,727 4,263 Total share-based compensation expense $ 3,514 $ 3,297 $ 10,216 $ 8,132 |
FINANCIAL INFORMATION (Policies
FINANCIAL INFORMATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue from Contract with Customer | Significant Accounting Policies - Revenue Recognition We enter into contracts with customers that include various combinations of products and services, which are typically capable of being distinct and are accounted for as separate performance obligations. We account for a contract when (i) it has approval and commitment from both parties, (ii) the rights of the parties have been identified, (iii) payment terms have been identified, (iv) the contract has commercial substance, and (v) collectability is probable. We recognize revenue upon transfer of control of promised products or services to customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts, in an amount that reflects the consideration we expect to receive in exchange for those products or services. We often enter into contractual arrangements that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These arrangements may include a combination of products, maintenance, training, and professional services. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price of each distinct performance obligation. See Note 9 for disaggregated revenue schedules and further discussion on revenue and deferred revenue performance obligations and the timing of revenue recognition. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements On January 1, 2021, we adopted ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. Our adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements To Be Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
NET INCOME PER SHARE Earnings_2
NET INCOME PER SHARE Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded From Computation of Net (Income) Loss Per Share | The following table sets forth (in thousands) potential common shares that were considered anti-dilutive securities at September 30, 2021 and 2020: September 30, 2021 September 30, 2020 Options — 390 Non-vested restricted stock units 930 3,220 Anti-dilutive potential common shares 930 3,610 |
Schedule of Weighted Average Number of Shares | The following table sets forth (in thousands) the basic and diluted weighted common shares outstanding for the three and nine months ended September 30, 2021: Three months ended Nine month ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Weighted common shares outstanding - basic 45,564 44,019 45,115 43,665 Net effect of common stock equivalents 864 739 1,334 833 Weighted common shares outstanding - diluted 46,428 44,758 46,449 44,498 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on a recurring basis | The following tables summarize our deferred compensation investments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Reporting Date Using September 30, Quoted Prices in Significant Significant Financial assets: Deferred compensation assets $ 372 $ 99 $ 273 $ — Fair Value Measurements at Reporting Date Using December 31, 2020 Quoted Prices in Significant Significant Financial assets: Deferred compensation assets $ 522 $ 282 $ 240 $ — |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): September 30, 2021 December 31, 2020 Raw materials $ 6,710 $ 8,223 Work in process 304 353 Finished goods 15,201 17,992 Total $ 22,215 $ 26,568 |
LEASES LEASES (Tables)
LEASES LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The table below reconciles the undiscounted future minimum lease payments for operating and finance leases under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2021 (in thousands): Year Ending December 31, Operating Leases Finance Leases 2021 (excluding nine months ended September 30, 2021) $ 1,847 $ 167 2022 6,549 255 2023 5,613 226 2024 4,942 — 2025 5,031 — Thereafter 11,695 — Total future minimum lease payments $ 35,677 $ 648 Less effects of discounting (6,004) (13) Total lease liabilities $ 29,673 $ 635 |
Finance Lease, Liability, Maturity | The table below reconciles the undiscounted future minimum lease payments for operating and finance leases under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2021 (in thousands): Year Ending December 31, Operating Leases Finance Leases 2021 (excluding nine months ended September 30, 2021) $ 1,847 $ 167 2022 6,549 255 2023 5,613 226 2024 4,942 — 2025 5,031 — Thereafter 11,695 — Total future minimum lease payments $ 35,677 $ 648 Less effects of discounting (6,004) (13) Total lease liabilities $ 29,673 $ 635 |
Assets and Liabilities, Lessee | Supplemental balance sheet information related to leases was as follows (in thousands): Operating Leases September 30, 2021 Right of use assets $ 25,202 Accrued expenses and other current liabilities (5,207) Long-term lease liabilities (24,466) Total lease liabilities $ (29,673) Finance Leases September 30, 2021 Other assets $ 490 Accrued expenses and other current liabilities (246) Other long-term liabilities (389) Total lease liabilities $ (635) |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Long-term liabilities | Other long-term liabilities consisted of the following (in thousands): September 30, 2021 December 31, 2020 Deferred compensation $ 5,407 $ 5,818 Finance lease liabilities 389 472 Other long-term liabilities 1,453 1,496 Total $ 7,249 $ 7,786 |
CONTINGENCIES (Tables)
CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product warranty accrual activity | The following table sets forth the activity in the product warranty accrual account for the nine months ended September 30, 2021 and 2020 (in thousands): Nine Months Ended September 30, 2021 2020 Accrual balance at beginning of period $ 1,095 $ 1,337 Accruals for product warranties 988 1,030 Costs of warranty claims (900) (1,003) Accrual balance at end of period $ 1,183 $ 1,364 |
RESTRUCTURING COSTS AND ACCRU_2
RESTRUCTURING COSTS AND ACCRUALS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table sets forth the activity in the restructuring accruals for the nine months ended September 30, 2021 (in thousands): Employee Accrual balance as of December 31, 2020 $ 3,687 Restructuring charges and revisions 838 Cash payments (3,778) Foreign exchange impact on ending balance (24) Accrual balance as of September 30, 2021 $ 723 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Type | The following table is a summary of our revenues by type for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Products and solutions net revenues $ 36,850 $ 35,775 $ 107,295 $ 98,121 Subscription services 28,008 17,907 74,384 48,292 Maintenance 30,702 30,826 90,997 93,190 Professional services, training and other services 6,080 5,923 18,204 16,562 Total net revenues $ 101,640 $ 90,431 $ 290,880 $ 256,165 |
Revenue by Geographic Region | The following table sets forth our revenues by geographic region for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: United States $ 45,026 $ 36,190 $ 126,084 $ 105,166 Other Americas 5,222 4,505 15,030 15,841 Europe, Middle East and Africa 38,782 37,537 109,400 99,478 Asia-Pacific 12,610 12,199 40,366 35,680 Total net revenues $ 101,640 $ 90,431 $ 290,880 $ 256,165 |
Contract Asset | Contract Asset Contract asset activity for the nine months ended September 30, 2021 and 2020 was as follows (in thousands): September 30, 2021 September 30, 2020 Contract asset at beginning of year $ 18,579 $ 19,494 Revenue in excess of billings 43,757 22,045 Customer billings (39,724) (26,263) Contract asset at end of period $ 22,612 $ 15,276 |
Deferred Revenue | Deferred revenue activity for the nine months ended September 30, 2021 and 2020 was as follows (in thousands): September 30, 2021 September 30, 2020 Deferred revenue at beginning of period $ 99,258 $ 97,901 Billings deferred 56,846 47,723 Recognition of prior deferred revenue (69,337) (64,460) Deferred revenue at end of period $ 86,767 $ 81,164 A summary of the significant performance obligations included in deferred revenue is as follows (in thousands): September 30, 2021 Product $ 4,364 Subscription 7,380 Maintenance contracts 66,676 Implied PCS 6,400 Professional services, training and other 1,947 Deferred revenue at September 30, 2021 $ 86,767 |
LONG-TERM DEBT AND CREDIT AGR_2
LONG-TERM DEBT AND CREDIT AGREEMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): September 30, 2021 December 31, 2020 Term Loan, net of unamortized issuance costs and debt discount of $2,188 and $2,579 at September 30, 2021 and December 31, 2020, respectively $ 171,062 $ 198,629 PPP loan — 7,800 Other long-term debt 1,087 1,271 Total debt $ 172,149 $ 207,700 Less: current portion 9,159 4,941 Total long-term debt $ 162,990 $ 202,759 |
Schedule of Maturities of Long-term Debt | The following table summarizes the contractual maturities of our borrowing obligations as of September 30, 2021 (in thousands): Fiscal Year Credit Agreement Other Long-Term Debt Total 2021 $ 2,250 39 $ 2,289 2022 9,000 162 9,162 2023 13,500 174 13,674 2024 18,000 186 18,186 2025 18,000 200 18,200 Thereafter 112,500 326 112,826 Total before unamortized discount 173,250 1,087 174,337 Less: unamortized discount and issuance costs 2,188 — 2,188 Less: current portion of long-term debt 9,000 159 9,159 Total long-term debt $ 162,062 $ 928 $ 162,990 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity | Information with respect to the Company’s option shares granted under all of our stock incentive plans for the nine months ended September 30, 2021 was as follows: Total Number of Options Weighted- Weighted- Aggregate Options outstanding at January 1, 2021 246,000 $7.48 Granted — — Exercised (246,000) 7.48 Forfeited or canceled — — Options outstanding at September 30, 2021 — — — — |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | Information with respect to the Company’s non-vested restricted stock units for the nine months ended September 30, 2021 was as follows: Number of Restricted Stock Units Weighted- Weighted- Aggregate Shares Retained to Cover Statutory Minimum Withholding Taxes Non-vested at January 1, 2021 2,114,879 $7.01 — Granted 452,759 28.99 — Vested (1,269,341) 6.76 (414,070) Forfeited (41,123) 9.25 — Outstanding at September 30, 2021 1,257,174 $15.09 0.92 $36,345 Information with respect to the Company’s non-vested performance-based restricted stock units for the nine months ended September 30, 2021 was as follows: Number of Performance-based Restricted Stock Units Weighted- Weighted- Aggregate Shares Retained to Cover Statutory Minimum Withholding Taxes Non-vested at January 1, 2021 653,428 $6.74 — Granted 397,048 15.07 — Vested (471,112) 5.81 (196,703) Forfeited — — — Non-vested at September 30, 2021 579,364 $13.20 1.04 $16,749 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Stock-based compensation was included in the following captions in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Share-based compensation expense by type: Time-based Restricted Stock Units $ 2,507 $ 2,515 $ 7,528 $ 6,032 Performance-based Restricted Stock Units 977 756 2,599 2,021 ESPP 30 26 89 79 Total share-based compensation expense $ 3,514 $ 3,297 $ 10,216 $ 8,132 ` Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of products revenues $ 132 $ 150 $ 423 $ 370 Cost of services revenues 311 283 938 539 Research and development expenses 340 546 1,270 1,199 Marketing and selling expenses 639 739 1,858 1,761 General and administrative expenses 2,092 1,579 5,727 4,263 Total share-based compensation expense $ 3,514 $ 3,297 $ 10,216 $ 8,132 |
NET INCOME PER SHARE Earnings_3
NET INCOME PER SHARE Earnings Per Share (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ||
Anti-dilutive potential common shares (in thousands of shares) | 930 | 3,610 |
Options | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ||
Anti-dilutive potential common shares (in thousands of shares) | 0 | 390 |
Non-vested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ||
Anti-dilutive potential common shares (in thousands of shares) | 930 | 3,220 |
NET INCOME PER SHARE Weighted A
NET INCOME PER SHARE Weighted Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding – basic | 45,564 | 44,019 | 45,115 | 43,665 |
Net effect of common stock equivalents | 864 | 739 | 1,334 | 833 |
Weighted-average common shares outstanding – diluted | 46,428 | 44,758 | 46,449 | 44,498 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Deferred compensation assets | $ 372 | $ 522 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets: | ||
Deferred compensation assets | 99 | 282 |
Significant Other Observable Inputs (Level 2) | ||
Financial Assets: | ||
Deferred compensation assets | 273 | 240 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Deferred compensation assets | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,710 | $ 8,223 |
Work in process | 304 | 353 |
Finished Goods | 15,201 | 17,992 |
Total inventory | 22,215 | 26,568 |
Finished goods, consigned | $ 1,600 | $ 1,200 |
LEASES LEASES (Details)
LEASES LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% | 6.00% | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years | 6 years | ||
Finance Lease, Weighted Average Discount Rate, Percent | 2.30% | 2.30% | ||
Finance Lease, Weighted Average Remaining Lease Term | 2 years | 2 years | ||
Operating Lease, Cost | $ 1,700 | $ 2,200 | $ 5,400 | $ 7,200 |
Operating Lease, Payments | 1,900 | $ 2,000 | 5,800 | $ 6,900 |
2024 | 4,942 | 4,942 | ||
2025 | 5,031 | 5,031 | ||
2023 | $ 5,613 | $ 5,613 | ||
Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | ||
Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 7 years | 7 years |
LEASES Maturity Schedule (Detai
LEASES Maturity Schedule (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 (excluding nine months ended September 30, 2021) | $ 1,847 |
2022 | 6,549 |
2023 | 5,613 |
2024 | 4,942 |
2025 | 5,031 |
Thereafter | 11,695 |
Total future minimum lease payments | 35,677 |
Less effects of discounting | (6,004) |
Total lease liabilities | (29,673) |
Finance Lease, Liability, Payment, Due [Abstract] | |
2021 (excluding nine months ended September 30, 2021) | 167 |
2022 | 255 |
2023 | 226 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total future minimum lease payments | 648 |
Less effects of discounting | (13) |
Total lease liabilities | $ 635 |
LEASES Supplemental Balance She
LEASES Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Right of use assets | $ 25,202 | $ 29,430 |
Accrued expenses and other current liabilities | (5,207) | |
Long-term lease liabilities | (24,466) | (28,462) |
Total lease liabilities | (29,673) | |
Other assets | 490 | |
Accrued expenses and other current liabilities | (246) | |
Other long-term liabilities | (389) | $ (472) |
Total lease liabilities | $ (635) |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation | $ 5,407 | $ 5,818 |
Finance Lease, Liability, Noncurrent | 389 | 472 |
Other long-term liabilities | 1,453 | 1,496 |
Total | $ 7,249 | $ 7,786 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Product warranty accrual [Roll Forward] | |||
Accrual balance at beginning of year | $ 1,095 | $ 1,337 | |
Accruals for product warranties | 988 | 1,030 | |
Cost of warranty claims | (900) | (1,003) | |
Accrual balance at end of period | $ 1,183 | 1,183 | $ 1,364 |
Standby Letters of Credit [Member] | Office Space - Burlington, Massachusetts [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 700 | 700 | |
Loss Contingency, Range Of Possible Loss, Portion Not Accrued, Minimum | 700 | 700 | |
Standby Letters of Credit [Member] | Office Space - Other Facilities [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of Credit Outstanding, Amount | 600 | 600 | |
Standby Letters of Credit [Member] | Other Operating Obligations [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of Credit Outstanding, Amount | 1,900 | 1,900 | |
Research and Development Arrangement [Member] | |||
Loss Contingencies [Line Items] | |||
Long-term Purchase Commitment, Amount | $ 32,200 | ||
Long-term Purchase Commitment, Period | 5 years | ||
Other Inventory, Purchased Goods, Gross | $ 9,200 | $ 9,200 |
RESTRUCTURING COSTS AND ACCRU_3
RESTRUCTURING COSTS AND ACCRUALS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)position | Sep. 30, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | position | 24 | |||
Restructuring charges | $ (88) | $ 723 | $ 1,001 | $ 1,008 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | 100 | |||
Restructuring charges | 700 | 1,000 | ||
Restructuring accrual [Roll Forward] | ||||
Accrual balance at beginning of year | 3,687 | |||
New restructuring charges - operating expenses | 838 | |||
Cash payments | (3,778) | |||
Foreign exchange impact on ending balance | (24) | |||
Accrual balance at end of period | $ 723 | $ 723 |
REVENUE Revenue by Type (Detail
REVENUE Revenue by Type (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||||
Number of reportable segments | 1 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 101,640 | $ 90,431 | $ 290,880 | $ 256,165 |
Products and solutions net revenues | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 36,850 | 107,295 | ||
Subscription services | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 28,008 | 17,907 | 74,384 | 48,292 |
Maintenance | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 30,702 | 30,826 | 90,997 | 93,190 |
Professional services, training and other services | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 6,080 | $ 5,923 | $ 18,204 | $ 16,562 |
REVENUE Revenue by Geographic R
REVENUE Revenue by Geographic Regions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 101,640 | $ 90,431 | $ 290,880 | $ 256,165 |
United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 45,026 | 36,190 | 126,084 | 105,166 |
Other Americas | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 5,222 | 4,505 | 15,030 | 15,841 |
Europe, Middle East and Africa | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 38,782 | 37,537 | 109,400 | 99,478 |
Asia-Pacific | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 12,610 | $ 12,199 | $ 40,366 | $ 35,680 |
REVENUE Contract Asset (Details
REVENUE Contract Asset (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Change in Contract with Customer, Asset [Abstract] | ||
Contract asset at beginning of year | $ 18,579 | $ 19,494 |
Revenue in excess of billings | 43,757 | 22,045 |
Customer billings | (39,724) | (26,263) |
Contract asset at end of period | $ 22,612 | $ 15,276 |
REVENUE Deferred Revenue Activi
REVENUE Deferred Revenue Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Deferred Revenue [Roll Forward] | ||
Deferred revenue at beginning of period | $ 99,258 | $ 97,901 |
Billings deferred | 56,846 | 47,723 |
Recognition of prior deferred revenue | (69,337) | (64,460) |
Deferred revenue at end of period | 86,767 | 81,164 |
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 40,700 | |
Deferred Revenue | 86,767 | $ 81,164 |
Products | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 4,364 | |
Subscription services | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 7,380 | |
Maintenance contracts | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 66,676 | |
Implied PCS | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 6,400 | |
Professional services, training and other | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | $ 1,947 |
REVENUE Remaining Performance O
REVENUE Remaining Performance Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||||
Sep. 30, 2021 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Revenue Arrangement [Line Items] | |||||||
Revenue, Performance Obligation, Description of Timing | six years | ||||||
Remaining Performance Obligation | $ 40,700 | ||||||
Unbilled Receivables, Not Billable | 32,000 | ||||||
Products | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | 4,364 | ||||||
Subscription services | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | 7,380 | ||||||
Maintenance contracts | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | 66,676 | ||||||
Implied PCS | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | 6,400 | ||||||
Implied PCS | Forecast [Member] | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | $ 400 | $ 600 | $ 1,000 | $ 1,500 | $ 2,200 | $ 700 | |
Professional services, training and other | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | $ 1,947 |
LONG-TERM DEBT AND CREDIT AGR_3
LONG-TERM DEBT AND CREDIT AGREEMENT - SCHEDULE OF LONG TERM DEBT (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Term Loan, net of unamortized issuance costs and debt discount of $2,188 and $2,579 at September 30, 2021 and December 31, 2020, respectively | $ 171,062 | |
Other long-term debt | 1,087 | |
Total debt | 172,149 | $ 207,700 |
Less: current portion | 9,159 | 4,941 |
Total long-term debt | 162,990 | $ 202,759 |
Federal Home Loan Bank Advances [Member] | ||
Debt Instrument [Line Items] | ||
PPP loan | $ 0 |
LONG-TERM DEBT AND CREDIT AGR_4
LONG-TERM DEBT AND CREDIT AGREEMENT Debt Disclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument, Periodic Payment, Principal | $ 2,289 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 9,162 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 13,674 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 18,186 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 18,200 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 112,826 | |
Total debt | 174,337 | |
Convertible Notes unamortized issue discount and debt issuance costs | 2,188 | |
Less: current portion | 9,159 | $ 4,941 |
Total long-term debt | 162,990 | $ 202,759 |
Revolving Credit Facility [Member] | ||
Debt Instrument, Periodic Payment, Principal | 2,250 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 9,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 13,500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 18,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 18,000 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 112,500 | |
Total debt | 173,250 | |
Convertible Notes unamortized issue discount and debt issuance costs | 2,188 | |
Less: current portion | 9,000 | |
Total long-term debt | 162,062 | |
Other Debt Obligations [Member] | ||
Debt Instrument, Periodic Payment, Principal | 39 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 162 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 174 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 186 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 200 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 326 | |
Total debt | 1,087 | |
Convertible Notes unamortized issue discount and debt issuance costs | 0 | |
Less: current portion | 159 | |
Total long-term debt | $ 928 |
LONG-TERM DEBT AND CREDIT AGR_5
LONG-TERM DEBT AND CREDIT AGREEMENT Debt Disclosurre (Details) - USD ($) | Jan. 05, 2021 | Jun. 28, 2019 | May 02, 2019 | May 10, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Apr. 08, 2019 | Feb. 26, 2016 |
Other long-term debt | $ 1,087,000 | $ 1,087,000 | |||||||||
Total debt | 172,149,000 | 172,149,000 | $ 207,700,000 | ||||||||
Less: current portion | 9,159,000 | 9,159,000 | 4,941,000 | ||||||||
Total long-term debt | 162,990,000 | 162,990,000 | 202,759,000 | ||||||||
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | 2,574,000 | $ 289,000 | |||||||||
Interest Expense | 1,646,000 | $ 4,566,000 | 5,547,000 | 15,437,000 | |||||||
Loss (Gain) on Extinguishment of Debt | $ 3,700,000 | 2,579,000 | 0 | ||||||||
Convertible Notes unamortized issue discount and debt issuance costs | 2,188,000 | 2,188,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 9,162,000 | 9,162,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 13,674,000 | 13,674,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 18,186,000 | 18,186,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 18,200,000 | 18,200,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 112,826,000 | 112,826,000 | |||||||||
Repayments of Lines of Credit | 0 | 22,000,000 | |||||||||
Write off of Deferred Debt Issuance Cost | 2,600,000 | ||||||||||
Unwind capped call cash receipt | $ 1,100,000 | 1,169,000 | $ 0 | ||||||||
Term Loan | |||||||||||
Debt Instrument, LIBOR Floor Rate | 0.25% | ||||||||||
Term Loan | Debt Instrument, Principal Payment Period One | |||||||||||
Debt Instrument, Periodic Payment, Principal, Percent | 5.00% | ||||||||||
Term Loan | Debt Instrument, Principal Payment Period Two | |||||||||||
Debt Instrument, Periodic Payment, Principal, Percent | 7.50% | ||||||||||
Term Loan | Debt Instrument, Principal Payment Period Three | |||||||||||
Debt Instrument, Periodic Payment, Principal, Percent | 10.00% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Term Loan | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Term Loan | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Less: current portion | 9,000,000 | 9,000,000 | |||||||||
Total long-term debt | 162,062,000 | 162,062,000 | |||||||||
Convertible Notes unamortized issue discount and debt issuance costs | 2,188,000 | 2,188,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 9,000,000 | 9,000,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 13,500,000 | 13,500,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 18,000,000 | 18,000,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 18,000,000 | 18,000,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 112,500,000 | 112,500,000 | |||||||||
Other Debt Obligations [Member] | |||||||||||
Less: current portion | 159,000 | 159,000 | |||||||||
Total long-term debt | 928,000 | 928,000 | |||||||||
Convertible Notes unamortized issue discount and debt issuance costs | 0 | 0 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 162,000 | 162,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 174,000 | 174,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 186,000 | 186,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 200,000 | 200,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 326,000 | 326,000 | |||||||||
Convertible Debt [Member] | |||||||||||
Convertible Notes unamortized issue discount and debt issuance costs | 0 | 0 | 680,000 | ||||||||
Federal Home Loan Bank Advances [Member] | |||||||||||
PPP loan | 0 | 0 | |||||||||
Cerberus Business Finance LLC [Member] | |||||||||||
Proceeds from Loans | $ 22,500,000 | ||||||||||
Cerberus Business Finance LLC [Member] | Line of Credit [Member] | |||||||||||
Repayments of Lines of Credit | $ 201,000,000 | ||||||||||
Cerberus Business Finance LLC [Member] | Long-term Debt [Member] | |||||||||||
Unamortized Debt Issuance Expense | 2,188,000 | 2,188,000 | $ 3,334,000 | ||||||||
Interest Expense, Long-term Debt | 1,300,000 | 4,100,000 | |||||||||
Convertible Notes unamortized issue discount and debt issuance costs | $ 2,500,000 | $ 2,500,000 | |||||||||
Term Loan, Net, Period Increase (Decrease) | 22,700,000 | ||||||||||
Cerberus Business Finance LLC [Member] | Long-term Debt [Member] | Delayed Draw Funds | |||||||||||
Total long-term debt | $ 79,300,000 | $ 100,000,000 | |||||||||
Repayments of Long-term Debt | $ 20,700,000 | ||||||||||
Cerberus Business Finance LLC [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument, Restrictive Covenant, Excess Cash Flow Payment Requirement, As A Percentage | 50.00% | ||||||||||
Line of Credit Facility, Increase (Decrease), Net | $ 12,500,000 | ||||||||||
JPMorgan Chase | Term Loan | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 180,000,000 | ||||||||||
JPMorgan Chase | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 70,000,000 | ||||||||||
JPMorgan Chase | Line of Credit [Member] | |||||||||||
Line Of Credit Facility, Covenant Terms, Maximum Net Leverage Ratio | 4 | ||||||||||
Line Of Credit Facility, Covenant Terms, Minimum Fixed Charge Ratio | 1.20 | ||||||||||
Convertible Debt [Member] | |||||||||||
Repayments of Senior Debt | $ 72,700,000 | ||||||||||
Interest Expense | 600,000 | ||||||||||
Payments of Financing Costs | $ 6,000,000 |
STOCKHOLDERS' EQUITY Options Ac
STOCKHOLDERS' EQUITY Options Activity (Details) - Share-based Payment Arrangement, Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 246,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (246,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0 | $ 7.48 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 7.48 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 |
STOCKHOLDERS' EQUITY Non-vested
STOCKHOLDERS' EQUITY Non-vested Restricted Stock (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,257,174 | 2,114,879 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 452,759 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (1,269,341) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (41,123) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 15.09 | $ 7.01 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 28.99 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 6.76 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 9.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 11 months 1 day | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-vested Restricted Stock Aggregate Intrinsic Value | $ 36,345 | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (414,070) | |
Performance-Based Vesting [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 579,364 | 653,428 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 397,048 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (471,112) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 13.20 | $ 6.74 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 15.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 5.81 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 14 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-vested Restricted Stock Aggregate Intrinsic Value | $ 16,749 | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (196,703) |
STOCKHOLDERS' EQUITY Stock-base
STOCKHOLDERS' EQUITY Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expense | $ 3,514 | $ 3,297 | $ 10,216 | $ 8,132 |
Restricted Stock Units (RSUs) [Member] | Time Based RSUs | ||||
Employee Benefits and Share-based Compensation | 2,507 | 2,515 | 7,528 | 6,032 |
Restricted Stock Units (RSUs) [Member] | Performance-Based Vesting [Member] | ||||
Employee Benefits and Share-based Compensation | 977 | 756 | 2,599 | 2,021 |
Employee Stock | ||||
Employee Benefits and Share-based Compensation | 30 | 26 | 89 | 79 |
Cost of Products Revenues [Member] | ||||
Share-based Payment Arrangement, Expense | 132 | 150 | 423 | 370 |
Cost of Services Revenues [Member] | ||||
Share-based Payment Arrangement, Expense | 311 | 283 | 938 | 539 |
Research and Development Expense [Member] | ||||
Share-based Payment Arrangement, Expense | 340 | 546 | 1,270 | 1,199 |
Selling and Marketing Expense [Member] | ||||
Share-based Payment Arrangement, Expense | 639 | 739 | 1,858 | 1,761 |
General and Administrative Expense [Member] | ||||
Share-based Payment Arrangement, Expense | $ 2,092 | $ 1,579 | $ 5,727 | $ 4,263 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 09, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 115,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 103,800 | |
Stock Repurchased During Period, Value | $ 11,169 | |
Treasury Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchased During Period, Shares | 412,175 | |
Stock Repurchased During Period, Value | $ 11,169 |