Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 Blue Sky 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 | 640-3000 | |
Title of Security | Common Stock, $0.01 par value | |
Trading Symbol | AVID | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,691,214 | |
Entity Central Index Key | 0000896841 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net revenues: | ||||
Revenues | $ 102,985 | $ 101,640 | $ 301,314 | $ 290,880 |
Cost of revenues: | ||||
Total cost of revenues | 33,206 | 35,737 | 101,405 | 103,423 |
Gross profit | 69,779 | 65,903 | 199,909 | 187,457 |
Operating expenses: | ||||
Research and development | 17,110 | 17,129 | 49,869 | 48,639 |
Marketing and selling | 24,362 | 24,413 | 69,962 | 66,511 |
General and administrative | 14,066 | 14,901 | 42,241 | 42,214 |
Restructuring costs, net | 158 | (88) | 515 | 1,001 |
Total operating expenses | 55,696 | 56,355 | 162,587 | 158,365 |
Operating income | 14,083 | 9,548 | 37,322 | 29,092 |
Interest expense, net | (2,741) | (1,646) | (6,161) | (5,547) |
Other income, net | 15 | 7,864 | 7 | 4,459 |
Income before income taxes | 11,357 | 15,766 | 31,168 | 28,004 |
(Benefit from) provision for income taxes | (665) | 991 | 1,187 | 1,832 |
Net income | $ 12,022 | $ 14,775 | $ 29,981 | $ 26,172 |
Net income per common share – basic | $ 0.27 | $ 0.32 | $ 0.67 | $ 0.58 |
Net income per common share – diluted | $ 0.27 | $ 0.32 | $ 0.66 | $ 0.56 |
Weighted-average common shares outstanding – basic | 44,476 | 45,564 | 44,676 | 45,115 |
Weighted-average common shares outstanding – diluted | 44,703 | 46,428 | 45,107 | 46,449 |
Subscription | ||||
Net revenues: | ||||
Revenues | $ 41,782 | $ 28,008 | $ 108,878 | $ 74,384 |
Cost of revenues: | ||||
Total cost of revenues | 6,163 | 4,020 | 18,057 | 10,210 |
Maintenance | ||||
Net revenues: | ||||
Revenues | 27,280 | 30,702 | 83,382 | 90,997 |
Cost of revenues: | ||||
Total cost of revenues | 4,849 | 5,739 | 15,379 | 17,135 |
Integrated solutions & other | ||||
Net revenues: | ||||
Revenues | 33,923 | 42,930 | 109,054 | 125,499 |
Cost of revenues: | ||||
Total cost of revenues | $ 22,194 | $ 25,978 | $ 67,969 | $ 76,078 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net income | $ 12,022 | $ 14,775 | $ 29,981 | $ 26,172 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (1,416) | (738) | (3,352) | (1,980) |
Comprehensive income (loss) | $ 10,606 | $ 14,037 | $ 26,629 | $ 24,192 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 31,344 | $ 56,818 |
Restricted cash | 2,413 | 2,416 |
Accounts receivable, net of allowances | 55,257 | 77,046 |
Inventories | 21,993 | 19,922 |
Prepaid expenses | 8,766 | 5,464 |
Contract assets | 17,728 | 18,903 |
Other current assets | 2,380 | 1,953 |
Total current assets | 139,881 | 182,522 |
Property and equipment, net | 21,215 | 16,028 |
Goodwill | 32,643 | 32,643 |
Right of use assets | 20,553 | 24,143 |
Deferred tax assets, net | 3,972 | 5,210 |
Other long-term assets | 19,271 | 13,454 |
Total assets | 237,535 | 274,000 |
Current liabilities: | ||
Accounts payable | 34,906 | 26,854 |
Accrued compensation and benefits | 22,453 | 35,458 |
Accrued expenses and other current liabilities | 35,560 | 37,552 |
Income taxes payable | 27 | 868 |
Less: current portion | 8,694 | 9,158 |
Deferred revenues | 60,630 | 87,475 |
Total current liabilities | 162,270 | 197,365 |
Long-term debt | 175,683 | 160,806 |
Long-term deferred revenues | 16,045 | 10,607 |
Long-term lease liabilities | 19,978 | 23,379 |
Other long-term liabilities | 4,960 | 5,917 |
Total liabilities | 378,936 | 398,074 |
Commitments and contingencies (Note 7) | ||
Stockholders' deficit: | ||
Common stock, par value $0.01; authorized: 100,000 shares; issued: 46,472 shares at September 30, 2022 and 45,828 shares at December 31, 2021; outstanding: 43,926 shares at September 30, 2022 and 44,954 shares at December 31, 2021 | 461 | 455 |
Treasury stock | (68,651) | (25,090) |
Additional paid-in capital | 1,031,232 | 1,031,633 |
Accumulated deficit | (1,096,978) | (1,126,959) |
Accumulated other comprehensive loss | (7,465) | (4,113) |
Total stockholders' deficit | (141,401) | (124,074) |
Total liabilities and stockholders' deficit | $ 237,535 | $ 274,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Allowance for doubtful accounts | $ 2,317 | $ 1,456 |
Stockholders' deficit: | ||
Commons stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 46,472,000 | 45,828,000 |
Common stock, shares outstanding | 43,926,000 | 44,954,000 |
CONSOLDATED STATEMENTS OF STOCK
CONSOLDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] |
Balances at beginning of period (in shares) at Dec. 31, 2020 | 44,420,000 | 0 | ||||
Balances at beginning of period at Dec. 31, 2020 | $ (132,924) | $ 442 | $ 1,036,658 | $ (1,168,347) | $ (1,677) | $ 0 |
Stock issued pursuant to employee stock plans (in shares) | 592,000 | |||||
Stock issued pursuant to employee stock plans, net of shares withheld for employee tax obligations | (7,706) | $ 6 | (7,712) | |||
Stock-based compensation | 3,122 | 3,122 | ||||
Net income | 4,391 | 4,391 | ||||
Other comprehensive income (loss) | (1,457) | (1,457) | ||||
Balances at end of period (in shares) at Mar. 31, 2021 | 45,012,000 | 0 | ||||
Balances at end of period at Mar. 31, 2021 | (134,574) | $ 448 | 1,032,068 | (1,163,956) | (3,134) | $ 0 |
Balances at beginning of period (in shares) at Dec. 31, 2020 | 44,420,000 | 0 | ||||
Balances at beginning of period at Dec. 31, 2020 | (132,924) | $ 442 | 1,036,658 | (1,168,347) | (1,677) | $ 0 |
Net income | 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) |
Balances at beginning of period (in shares) at Mar. 31, 2021 | 45,012,000 | 0 | ||||
Balances at beginning of period at Mar. 31, 2021 | (134,574) | $ 448 | 1,032,068 | (1,163,956) | (3,134) | $ 0 |
Stock issued pursuant to employee stock plans (in shares) | 513,000 | |||||
Stock issued pursuant to employee stock plans, net of shares withheld for employee tax obligations | (5,969) | $ 4 | (5,973) | |||
Stock-based compensation | 3,580 | 3,580 | ||||
Net income | 7,006 | 7,006 | ||||
Other comprehensive income (loss) | 215 | 215 | ||||
Balances at end of period (in shares) at Jun. 30, 2021 | 45,525,000 | 0 | ||||
Balances at end of period at Jun. 30, 2021 | (129,742) | $ 452 | 1,029,675 | (1,156,950) | (2,919) | $ 0 |
Stock issued pursuant to employee stock plans (in shares) | 168,000 | |||||
Stock issued pursuant to employee stock plans, net of shares withheld for employee tax obligations | (3,071) | $ 2 | (3,073) | |||
Repurchase of common stock (in shares) | (412,000) | |||||
Repurchase of common stock | (11,169) | $ (11,169) | ||||
Stock-based compensation | 3,514 | 3,514 | ||||
Net income | 14,775 | 14,775 | ||||
Other comprehensive income (loss) | (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 | |||||
Balances at beginning of period (in shares) at Dec. 31, 2021 | 44,954,000 | 45,828,000 | (874,000) | |||
Balances at beginning of period at Dec. 31, 2021 | $ (124,074) | $ 455 | 1,031,633 | (1,126,959) | (4,113) | $ (25,090) |
Stock issued pursuant to employee stock plans (in shares) | 391,000 | |||||
Stock issued pursuant to employee stock plans, net of shares withheld for employee tax obligations | (8,936) | $ 4 | (8,940) | |||
Repurchase of common stock (in shares) | (354,000) | |||||
Repurchase of common stock | (10,816) | $ (10,816) | ||||
Stock-based compensation | 3,422 | 3,422 | ||||
Net income | 10,586 | 10,586 | ||||
Other comprehensive income (loss) | (201) | (201) | ||||
Balances at end of period (in shares) at Mar. 31, 2022 | 46,219,000 | (1,228,000) | ||||
Balances at end of period at Mar. 31, 2022 | $ (130,019) | $ 459 | 1,026,115 | (1,116,373) | (4,314) | $ (35,906) |
Balances at beginning of period (in shares) at Dec. 31, 2021 | 44,954,000 | 45,828,000 | (874,000) | |||
Balances at beginning of period at Dec. 31, 2021 | $ (124,074) | $ 455 | 1,031,633 | (1,126,959) | (4,113) | $ (25,090) |
Net income | $ 29,981 | |||||
Balances at end of period (in shares) at Sep. 30, 2022 | 43,926,000 | 46,472,000 | (2,546,000) | |||
Balances at end of period at Sep. 30, 2022 | $ (141,401) | $ 461 | 1,031,232 | (1,096,978) | (7,465) | $ (68,651) |
Balances at beginning of period (in shares) at Mar. 31, 2022 | 46,219,000 | (1,228,000) | ||||
Balances at beginning of period at Mar. 31, 2022 | (130,019) | $ 459 | 1,026,115 | (1,116,373) | (4,314) | $ (35,906) |
Stock issued pursuant to employee stock plans (in shares) | 189,000 | |||||
Stock issued pursuant to employee stock plans, net of shares withheld for employee tax obligations | (1,481) | $ 2 | (1,483) | |||
Repurchase of common stock (in shares) | (560,000) | |||||
Repurchase of common stock | (14,143) | $ (14,143) | ||||
Stock-based compensation | 3,645 | 3,645 | ||||
Net income | 7,373 | 7,373 | ||||
Other comprehensive income (loss) | (1,735) | (1,735) | ||||
Balances at end of period (in shares) at Jun. 30, 2022 | 46,408,000 | (1,788,000) | ||||
Balances at end of period at Jun. 30, 2022 | (136,360) | $ 461 | 1,028,277 | (1,109,000) | (6,049) | $ (50,049) |
Stock issued pursuant to employee stock plans (in shares) | 64,000 | |||||
Stock issued pursuant to employee stock plans, net of shares withheld for employee tax obligations | (992) | $ 0 | (992) | |||
Repurchase of common stock (in shares) | (758,000) | |||||
Repurchase of common stock | (18,602) | $ (18,602) | ||||
Stock-based compensation | 3,947 | 3,947 | ||||
Net income | 12,022 | 12,022 | ||||
Other comprehensive income (loss) | $ (1,416) | (1,416) | ||||
Balances at end of period (in shares) at Sep. 30, 2022 | 43,926,000 | 46,472,000 | (2,546,000) | |||
Balances at end of period at Sep. 30, 2022 | $ (141,401) | $ 461 | $ 1,031,232 | $ (1,096,978) | $ (7,465) | $ (68,651) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 29,981 | $ 26,172 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 6,023 | 6,323 |
Allowance for doubtful accounts | 893 | 401 |
Stock-based compensation expense | 11,014 | 10,216 |
Non-cash provision for restructuring | 495 | 841 |
Non-cash interest expense | 367 | 386 |
Loss (gain) on extinguishment of debt | 0 | 2,579 |
Loss on disposal of fixed assets | 548 | 0 |
Unrealized foreign currency transaction gains | (2,769) | (1,400) |
Provision for (benefit from) deferred taxes | 1,238 | 1,388 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 20,896 | 20,089 |
Inventories | (2,071) | 4,353 |
Prepaid expenses and other assets | (5,624) | (1,343) |
Accounts payable | 8,050 | 590 |
Accrued expenses, compensation and benefits and other liabilities | (17,257) | (10,635) |
Income taxes payable | (841) | (217) |
Deferred revenue and contract assets | (25,380) | (16,525) |
Net cash provided by operating activities | 25,563 | 35,418 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (11,067) | (4,750) |
Net cash used in investing activities | (11,067) | (4,750) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 19,000 | 0 |
Proceeds from long-term debt | 0 | 180,000 |
Repayment of debt | (4,515) | (208,142) |
Payments for repurchase of common stock | (40,929) | (10,526) |
Proceeds from the issuance of common stock under employee stock plans | 468 | 363 |
Common stock repurchases for tax withholdings for net settlement of equity awards | (11,878) | (17,108) |
Prepayment penalty on extinguishment of debt | 0 | (1,169) |
Payments for credit facility issuance costs | (440) | (2,574) |
Net cash (used in) provided by financing activities | (38,294) | (59,156) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,809) | (927) |
Net decrease in cash, cash equivalents and restricted cash | (25,607) | (29,415) |
Cash, cash equivalents and restricted cash at beginning of period | 60,556 | 83,638 |
Cash, cash equivalents and restricted cash at end of period | 34,949 | 54,223 |
Supplemental information: | ||
Cash and cash equivalents | 31,344 | 50,485 |
Restricted cash | 2,413 | 1,422 |
Restricted cash included in other long-term assets | 1,192 | 2,316 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 34,949 | 54,223 |
Cash paid for income taxes | 1,551 | 706 |
Cash paid for interest | 3,095 | 6,354 |
Gain (Loss) on Forgiveness of Debt | $ 0 | $ (7,800) |
FINANCIAL INFORMATION (Notes)
FINANCIAL INFORMATION (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021 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, 2021 in our Annual Report on Form 10-K for the year ended December 31, 2021, 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, 2021. The consolidated results of operations for the three months and nine ended September 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. The Company’s results of operations are affected by economic conditions, including macroeconomic conditions and levels of business and consumer confidence. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus ("COVID-19") a pandemic. The COVID-19 pandemic has created, and may continue to create, significant uncertainty in macroeconomic conditions, including disrupted supply chains and significant volatility in financial markets. The countries in which the Company operates have generally continued easing initial measures to control the spread of COVID-19. However, the Company is not able to estimate the impact that COVID-19 may continue to have on worldwide economic activity or the Company’s financial position. The Russian invasion of Ukraine and related acts of aggression and destruction, including destruction of energy, commercial and industrial infrastructure has caused further direct and indirect economic disruption, which may exacerbate supply chain issues further and may lead to prolonged shortages and economic disruption including foreign currency fluctuation. The Company continues to assess the potential impacts of armed conflict and COVID-19 and the measures taken by governments, businesses and other organizations in response as information becomes available. 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. Reclassifications As our business continues to shift towards a subscription-based model, we have reformatted our income statement presentation to conform with this shift starting on our Annual Report for the year ended December 31, 2021. We have reclassified certain prior period amounts related to revenue and cost of goods sold within our consolidated statements of operations and accompanying notes to conform to our current period presentation. These reclassifications did not affect total revenue or total cost of goods sold. Significant Accounting Policies There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements 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 adopted ASU 2020-04 as of January 1, 2022. The Company has determined the impact of this adoption was not material to our 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, 2022 | |
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, 2022 and 2021: September 30, 2022 September 30, 2021 Non-vested restricted stock units 820 930 The following table sets forth (in thousands) the basic and diluted weighted common shares outstanding for the three and nine months ended September 30, 2022 and 2021: Three months ended Nine months ended September 30 September 30 2022 2021 2022 2021 Weighted common shares outstanding - basic 44,476 45,564 44,676 45,115 Net effect of common stock equivalents 227 864 431 1,334 Weighted common shares outstanding - diluted 44,703 46,428 45,107 46,449 |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and December 31, 2021, 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 $ 375 $ 84 $ 291 $ — Fair Value Measurements at Reporting Date Using December 31, 2021 Quoted Prices in Significant Significant Financial assets: Deferred compensation assets $ 408 $ 99 $ 309 $ — Financial Instruments Not Recorded at Fair Value The carrying amounts of our other financial assets and liabilities including cash, accounts receivable, accounts payable, and accrued liabilities approximate their respective fair values because of the relatively short period of time between their origination and their expected realization or settlement. |
INVENTORIES (Notes)
INVENTORIES (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following (in thousands): September 30, 2022 December 31, 2021 Raw materials $ 8,257 $ 8,519 Work in process 288 304 Finished goods 13,448 11,099 Total $ 21,993 $ 19,922 |
LEASES LEASES (Notes)
LEASES LEASES (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
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 six 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, 2022, the weighted average incremental borrowing rate was 5.9% and the weighted average remaining lease term was 5.3 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, 2022, the weighted-average discount rate was 2.3% and the weighted average remaining lease term was 1.4 years. Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. Our total operating lease costs were $1.4 million and $1.7 million for the three months ended September 30, 2022 and September 30, 2021, respectively and $4.3 million and $5.4 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. Related cash payments were $1.5 million and $1.9 million for the three months ended September 30, 2022 and September 30, 2021, respectively, and $4.6 million and $5.8 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. Short term lease costs were $0.6 million and $0.4 million for the three months ended September 30, 2022 and September 30, 2021, respectively, and $1.9 million and $1.0 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. 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, 2022 (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 (excluding nine months ended September 30, 2022) $ 1,577 $ 56 2023 5,742 219 2024 5,004 72 2025 5,034 — 2026 5,060 — Thereafter 6,446 — Total future minimum lease payments $ 28,863 $ 347 Less effects of discounting (4,307) (4) Total lease liabilities $ 24,556 $ 343 Supplemental balance sheet information related to leases was as follows (in thousands): Operating Leases September 30, 2022 Right of use assets $ 20,553 Accrued expenses and other current liabilities (4,578) Long-term lease liabilities (19,978) Total lease liabilities $ (24,556) Finance Leases September 30, 2022 Other assets $ 316 Accrued expenses and other current liabilities (243) Other long-term liabilities (100) Total lease liabilities $ (343) |
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 six 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, 2022, the weighted average incremental borrowing rate was 5.9% and the weighted average remaining lease term was 5.3 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, 2022, the weighted-average discount rate was 2.3% and the weighted average remaining lease term was 1.4 years. Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. Our total operating lease costs were $1.4 million and $1.7 million for the three months ended September 30, 2022 and September 30, 2021, respectively and $4.3 million and $5.4 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. Related cash payments were $1.5 million and $1.9 million for the three months ended September 30, 2022 and September 30, 2021, respectively, and $4.6 million and $5.8 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. Short term lease costs were $0.6 million and $0.4 million for the three months ended September 30, 2022 and September 30, 2021, respectively, and $1.9 million and $1.0 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. 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, 2022 (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 (excluding nine months ended September 30, 2022) $ 1,577 $ 56 2023 5,742 219 2024 5,004 72 2025 5,034 — 2026 5,060 — Thereafter 6,446 — Total future minimum lease payments $ 28,863 $ 347 Less effects of discounting (4,307) (4) Total lease liabilities $ 24,556 $ 343 Supplemental balance sheet information related to leases was as follows (in thousands): Operating Leases September 30, 2022 Right of use assets $ 20,553 Accrued expenses and other current liabilities (4,578) Long-term lease liabilities (19,978) Total lease liabilities $ (24,556) Finance Leases September 30, 2022 Other assets $ 316 Accrued expenses and other current liabilities (243) Other long-term liabilities (100) Total lease liabilities $ (343) |
OTHER LONG-TERM LIABILITIES (No
OTHER LONG-TERM LIABILITIES (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Other long-term liabilities consisted of the following (in thousands): September 30, 2022 December 31, 2021 Deferred compensation $ 4,263 $ 4,981 Finance lease liabilities 100 289 Other long-term liabilities 597 647 Total $ 4,960 $ 5,917 |
CONTINGENCIES (Notes)
CONTINGENCIES (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
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 $17.9 million of products and services pursuant to this agreement as of September 30, 2022. 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, 2022, be eligible to draw against the letters of credit to a maximum of $0.7 million. 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 2022 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, 2022. 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 employee’s employment agreement. On April 16, 2019, we received an additional notice again alleging we breached the former employee’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 and such amount is material. 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, 2022 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 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, 2022 and 2021 (in thousands): Nine Months Ended September 30, 2022 2021 Accrual balance at beginning of period $ 1,219 $ 1,095 Accruals for product warranties 541 988 Costs of warranty claims (784) (900) Accrual balance at end of period $ 976 $ 1,183 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, 2022 | |
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 2022. During the nine months ended September 30, 2022, we recorded restructuring charges of $0.5 million for employee severance costs related to three positions eliminated throughout 2022. During the nine months ended September 30, 2021 , we recorded restructuring charges of $1.0 million for employee severance costs related to 24 positions eliminated throughout 2021. The following table sets forth the activity in the restructuring accruals for the nine months ended September 30, 2022 (in thousands): Employee Accrual balance as of December 31, 2021 $ 655 Restructuring charges and revisions 515 Cash payments (917) Foreign exchange impact on ending balance (17) Accrual balance as of September 30, 2022 $ 236 |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Subscriptions $ 41,782 $ 28,008 $ 108,878 $ 74,384 Maintenance 27,280 30,702 83,382 90,997 Integrated solutions & other 33,923 42,930 109,054 125,499 Total net revenues $ 102,985 $ 101,640 $ 301,314 $ 290,880 The following table sets forth our revenues by geographic region for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues: United States $ 46,206 $ 45,026 $ 130,755 $ 126,084 Europe, Middle East and Africa 36,865 38,782 112,026 109,400 Asia-Pacific 13,747 12,610 39,066 40,366 Other Americas 6,167 5,222 19,467 15,030 Total net revenues $ 102,985 $ 101,640 $ 301,314 $ 290,880 Contract Asset Contract asset activity for the nine months ended September 30, 2022 and 2021 was as follows (in thousands): September 30, 2022 September 30, 2021 Contract asset at beginning of period $ 25,397 $ 18,579 Revenue in excess of billings 51,400 43,757 Customer billings (47,427) (39,724) Contract asset at end of period $ 29,370 $ 22,612 Less: long-term portion (recorded in other long-term assets) 11,642 — Contract asset, current portion $ 17,728 $ 22,612 The increase in the long-term portion of contract assets is primarily due to long-term subscription agreements with revenue recognition ahead of scheduled billings greater than 12 months. Deferred Revenue Deferred revenue activity for the nine months ended September 30, 2022 and 2021 was as follows (in thousands): September 30, 2022 September 30, 2021 Deferred revenue at beginning of period $ 98,082 $ 99,258 Billings deferred 57,094 56,846 Recognition of prior deferred revenue (78,501) (69,337) Deferred revenue at end of period $ 76,675 $ 86,767 A summary of the significant performance obligations included in deferred revenue is as follows (in thousands): September 30, 2022 Product $ 7,922 Subscription 8,545 Maintenance contracts 55,435 Implied PCS 4,293 Professional services, training and other 480 Deferred revenue at September 30, 2022 $ 76,675 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 $4.3 million attributable to Implied PCS recorded in deferred revenue as of September 30, 2022. We expect to recognize revenue for these remaining performance obligations of $0.5 million for the remainder of 2022 and $1.6 million, $1.1 million, $0.7 million and $0.3 million for the years ending December 31, 2023, 2024, 2025, and 2026, respectively, and $0.1 million thereafter. As of September 30, 2022, we had approximately $22.5 million of transaction price allocated to remaining performance obligations for certain enterprise agreements that have not yet been fully invoiced. Approximately $18.9 million of these performance obligations were unbilled as of September 30, 2022. 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 $22.5 million in roughly equal installments through 2027. 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, 2022 | |
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, 2022 December 31, 2021 Term Loan, net of unamortized issuance costs and debt discount of $2,131 and $2,059 at September 30, 2022 and December 31, 2021, respectively $ 164,594 $ 168,941 Credit Facility 19,000 — Other long-term debt 783 1,023 Total debt $ 184,377 $ 169,964 Less: current portion 8,694 9,158 Total long-term debt $ 175,683 $ 160,806 The following table summarizes the contractual maturities of our borrowing obligations as of September 30, 2022 (in thousands): Fiscal Year Term Loan Credit Facility Other Long-Term Debt Total 2022 (excluding nine months ended September 30, 2022) $ 2,138 $ — $ 35 $ 2,173 2023 8,550 — 147 8,697 2024 11,756 — 157 11,913 2025 16,031 — 169 16,200 2026 17,100 — 181 17,281 Thereafter 111,150 19,000 94 130,244 Total before unamortized discount $ 166,725 $ 19,000 $ 783 $ 186,508 Less: unamortized discount and issuance costs (2,131) — — (2,131) Less: current portion of long-term debt (8,550) — (144) (8,694) Total long-term debt $ 156,044 $ 19,000 $ 639 $ 175,683 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 made up of $2.6 million of remaining unamortized issuance costs as well as a $1.1 million prepayment penalty. In association with the Credit Agreement, the Company incurred $2.5 million of issuance discounts and an immaterial amount of issuance costs. The Term Loan had 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 ranged from 2.00% to 3.25%, depending on leverage. On February 25, 2022, the Company executed an Amended and Restated Credit Agreement (the “A&R Credit Agreement) with JPMorgan Chase Bank, N.A. and the Lenders. The A&R Credit Agreement extended the term of the Term Loan to February 25, 2027, reduced the applicable interest rate margins by 0.25%, removed the LIBOR floor, moved the reference rate from LIBOR to the Secured Overnight Financing Rate (“SOFR”), reset the principal amortization schedule, and eliminated the fixed charge coverage ratio. The effective interest rate for the nine months ended September 30, 2022 was 3.58%. 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 A&R Credit Agreement also requires the Company to maintain a total net leverage ratio of no more than 4.00 to 1.00 initially, with step downs thereafter. Other terms of the A&R Credit Agreement remain substantially the same as the Credit Agreement. We were in compliance with the A&R Credit Agreement covenants as of September 30, 2022. In connection with the A&R Credit Agreement, the Company incurred an additional $0.4 million of issuance costs during the three months ended March 31, 2022. These additional costs and the remaining unamortized Term Loan discount and issuance costs will be amortized jointly over the amended remaining life of the A&R Credit Agreement. We recorded $2.1 million and $4.6 million of interest expense on the Term Loan for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, there was $19.0 million outstanding under the Credit Facility. Subsequent Event On October 6, 2022, the Company executed a Second Amended and Restated Credit Agreement (the “Second A&R Credit Agreement”) with JPMorgan Chase Bank, N.A. and the Lenders. Pursuant to the Second A&R Credit Agreement, the Lenders agreed to provide the Company with (a) an additional term loan in the aggregate principal amount of $20 million (of which approximately $19 million was used to pay off the Company’s existing Credit Facility draw), and (b) an additional $50 million of available borrowing capacity under the revolving credit facility, increasing the aggregate amount available to $120.0 million. The Second A&R Credit Agreement, which replaces the Company’s existing secured credit facility, includes substantially similar terms and does not result in any changes to financial covenants, pricing or the February 2027 maturity. |
STOCKHOLDERS' EQUITY (Notes)
STOCKHOLDERS' EQUITY (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock-Based Compensation Information with respect to the Company’s non-vested restricted stock units for the nine months ended September 30, 2022 was as follows: Number of Restricted Stock Units Weighted- Weighted- Aggregate Shares Retained to Cover Statutory Minimum Withholding Taxes Non-vested at January 1, 2022 1,061,834 $16.60 — Granted 534,419 32.35 — Vested (578,107) 15.20 (209,848) Forfeited (122,887) 19.01 — Outstanding at September 30, 2022 895,259 $26.58 0.98 $20,815 Information with respect to the Company’s non-vested performance-based restricted stock units for the nine months ended September 30, 2022 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, 2022 579,364 $13.20 — Granted 296,405 22.69 — Vested (454,804) 10.19 (200,208) Forfeited (64,964) 24.72 — Non-vested at September 30, 2022 356,001 $22.85 0.94 $8,277 The following table sets forth stock-based compensation expense by award type for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Share-based compensation expense by type: Time-based Restricted Stock Units $ 2,892 $ 2,507 $ 8,272 $ 7,528 Performance-based Restricted Stock Units 1,007 977 2,598 2,599 ESPP 48 30 144 89 Total share-based compensation expense $ 3,947 $ 3,514 $ 11,014 $ 10,216 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, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 588 $ 443 $ 1,603 $ 1,361 Research and development expenses 498 340 1,363 1,270 Marketing and selling expenses 743 639 2,141 1,858 General and administrative expenses 2,118 2,092 5,907 5,727 Total share-based compensation expense $ 3,947 $ 3,514 $ 11,014 $ 10,216 |
FINANCIAL INFORMATION (Policies
FINANCIAL INFORMATION (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue from Contract with Customer | Significant Accounting Policies There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements 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 adopted ASU 2020-04 as of January 1, 2022. The Company has determined the impact of this adoption was not material to our 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, 2022 | |
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, 2022 and 2021: September 30, 2022 September 30, 2021 Non-vested restricted stock units 820 930 |
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, 2022 and 2021: Three months ended Nine months ended September 30 September 30 2022 2021 2022 2021 Weighted common shares outstanding - basic 44,476 45,564 44,676 45,115 Net effect of common stock equivalents 227 864 431 1,334 Weighted common shares outstanding - diluted 44,703 46,428 45,107 46,449 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 $ 375 $ 84 $ 291 $ — Fair Value Measurements at Reporting Date Using December 31, 2021 Quoted Prices in Significant Significant Financial assets: Deferred compensation assets $ 408 $ 99 $ 309 $ — |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): September 30, 2022 December 31, 2021 Raw materials $ 8,257 $ 8,519 Work in process 288 304 Finished goods 13,448 11,099 Total $ 21,993 $ 19,922 |
LEASES LEASES (Tables)
LEASES LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 (excluding nine months ended September 30, 2022) $ 1,577 $ 56 2023 5,742 219 2024 5,004 72 2025 5,034 — 2026 5,060 — Thereafter 6,446 — Total future minimum lease payments $ 28,863 $ 347 Less effects of discounting (4,307) (4) Total lease liabilities $ 24,556 $ 343 |
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, 2022 (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 (excluding nine months ended September 30, 2022) $ 1,577 $ 56 2023 5,742 219 2024 5,004 72 2025 5,034 — 2026 5,060 — Thereafter 6,446 — Total future minimum lease payments $ 28,863 $ 347 Less effects of discounting (4,307) (4) Total lease liabilities $ 24,556 $ 343 |
Assets and Liabilities, Lessee | Supplemental balance sheet information related to leases was as follows (in thousands): Operating Leases September 30, 2022 Right of use assets $ 20,553 Accrued expenses and other current liabilities (4,578) Long-term lease liabilities (19,978) Total lease liabilities $ (24,556) Finance Leases September 30, 2022 Other assets $ 316 Accrued expenses and other current liabilities (243) Other long-term liabilities (100) Total lease liabilities $ (343) |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Long-term liabilities | Other long-term liabilities consisted of the following (in thousands): September 30, 2022 December 31, 2021 Deferred compensation $ 4,263 $ 4,981 Finance lease liabilities 100 289 Other long-term liabilities 597 647 Total $ 4,960 $ 5,917 |
CONTINGENCIES (Tables)
CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021 (in thousands): Nine Months Ended September 30, 2022 2021 Accrual balance at beginning of period $ 1,219 $ 1,095 Accruals for product warranties 541 988 Costs of warranty claims (784) (900) Accrual balance at end of period $ 976 $ 1,183 |
RESTRUCTURING COSTS AND ACCRU_2
RESTRUCTURING COSTS AND ACCRUALS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 (in thousands): Employee Accrual balance as of December 31, 2021 $ 655 Restructuring charges and revisions 515 Cash payments (917) Foreign exchange impact on ending balance (17) Accrual balance as of September 30, 2022 $ 236 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Subscriptions $ 41,782 $ 28,008 $ 108,878 $ 74,384 Maintenance 27,280 30,702 83,382 90,997 Integrated solutions & other 33,923 42,930 109,054 125,499 Total net revenues $ 102,985 $ 101,640 $ 301,314 $ 290,880 |
Revenue by Geographic Region | The following table sets forth our revenues by geographic region for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues: United States $ 46,206 $ 45,026 $ 130,755 $ 126,084 Europe, Middle East and Africa 36,865 38,782 112,026 109,400 Asia-Pacific 13,747 12,610 39,066 40,366 Other Americas 6,167 5,222 19,467 15,030 Total net revenues $ 102,985 $ 101,640 $ 301,314 $ 290,880 |
Contract Asset | Contract Asset Contract asset activity for the nine months ended September 30, 2022 and 2021 was as follows (in thousands): September 30, 2022 September 30, 2021 Contract asset at beginning of period $ 25,397 $ 18,579 Revenue in excess of billings 51,400 43,757 Customer billings (47,427) (39,724) Contract asset at end of period $ 29,370 $ 22,612 Less: long-term portion (recorded in other long-term assets) 11,642 — Contract asset, current portion $ 17,728 $ 22,612 |
Deferred Revenue | Deferred revenue activity for the nine months ended September 30, 2022 and 2021 was as follows (in thousands): September 30, 2022 September 30, 2021 Deferred revenue at beginning of period $ 98,082 $ 99,258 Billings deferred 57,094 56,846 Recognition of prior deferred revenue (78,501) (69,337) Deferred revenue at end of period $ 76,675 $ 86,767 A summary of the significant performance obligations included in deferred revenue is as follows (in thousands): September 30, 2022 Product $ 7,922 Subscription 8,545 Maintenance contracts 55,435 Implied PCS 4,293 Professional services, training and other 480 Deferred revenue at September 30, 2022 $ 76,675 |
LONG-TERM DEBT AND CREDIT AGR_2
LONG-TERM DEBT AND CREDIT AGREEMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): September 30, 2022 December 31, 2021 Term Loan, net of unamortized issuance costs and debt discount of $2,131 and $2,059 at September 30, 2022 and December 31, 2021, respectively $ 164,594 $ 168,941 Credit Facility 19,000 — Other long-term debt 783 1,023 Total debt $ 184,377 $ 169,964 Less: current portion 8,694 9,158 Total long-term debt $ 175,683 $ 160,806 |
Schedule of Maturities of Long-term Debt | The following table summarizes the contractual maturities of our borrowing obligations as of September 30, 2022 (in thousands): Fiscal Year Term Loan Credit Facility Other Long-Term Debt Total 2022 (excluding nine months ended September 30, 2022) $ 2,138 $ — $ 35 $ 2,173 2023 8,550 — 147 8,697 2024 11,756 — 157 11,913 2025 16,031 — 169 16,200 2026 17,100 — 181 17,281 Thereafter 111,150 19,000 94 130,244 Total before unamortized discount $ 166,725 $ 19,000 $ 783 $ 186,508 Less: unamortized discount and issuance costs (2,131) — — (2,131) Less: current portion of long-term debt (8,550) — (144) (8,694) Total long-term debt $ 156,044 $ 19,000 $ 639 $ 175,683 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
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, 2022 was as follows: Number of Restricted Stock Units Weighted- Weighted- Aggregate Shares Retained to Cover Statutory Minimum Withholding Taxes Non-vested at January 1, 2022 1,061,834 $16.60 — Granted 534,419 32.35 — Vested (578,107) 15.20 (209,848) Forfeited (122,887) 19.01 — Outstanding at September 30, 2022 895,259 $26.58 0.98 $20,815 Information with respect to the Company’s non-vested performance-based restricted stock units for the nine months ended September 30, 2022 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, 2022 579,364 $13.20 — Granted 296,405 22.69 — Vested (454,804) 10.19 (200,208) Forfeited (64,964) 24.72 — Non-vested at September 30, 2022 356,001 $22.85 0.94 $8,277 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | tock-based compensation expense by award type for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Share-based compensation expense by type: Time-based Restricted Stock Units $ 2,892 $ 2,507 $ 8,272 $ 7,528 Performance-based Restricted Stock Units 1,007 977 2,598 2,599 ESPP 48 30 144 89 Total share-based compensation expense $ 3,947 $ 3,514 $ 11,014 $ 10,216 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, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 588 $ 443 $ 1,603 $ 1,361 Research and development expenses 498 340 1,363 1,270 Marketing and selling expenses 743 639 2,141 1,858 General and administrative expenses 2,118 2,092 5,907 5,727 Total share-based compensation expense $ 3,947 $ 3,514 $ 11,014 $ 10,216 |
NET INCOME PER SHARE Earnings_3
NET INCOME PER SHARE Earnings Per Share (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
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) | 820 | 930 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares outstanding – basic | 44,476 | 45,564 | 44,676 | 45,115 |
Net effect of common stock equivalents | 227 | 864 | 431 | 1,334 |
Weighted-average common shares outstanding – diluted | 44,703 | 46,428 | 45,107 | 46,449 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Deferred compensation assets | $ 375 | $ 408 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets: | ||
Deferred compensation assets | 84 | 99 |
Significant Other Observable Inputs (Level 2) | ||
Financial Assets: | ||
Deferred compensation assets | 291 | 309 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Deferred compensation assets | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,257 | $ 8,519 |
Work in process | 288 | 304 |
Finished Goods | 13,448 | 11,099 |
Total inventory | 21,993 | 19,922 |
Finished goods, consigned | $ 1,800 | $ 1,900 |
LEASES LEASES (Details)
LEASES LEASES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 5.90% | 5.90% | ||
Operating Lease, Weighted Average Remaining Lease Term | 5 years 3 months 18 days | 5 years 3 months 18 days | ||
Finance Lease, Weighted Average Discount Rate, Percent | 2.30% | 2.30% | ||
Finance Lease, Weighted Average Remaining Lease Term | 1 year 4 months 24 days | 1 year 4 months 24 days | ||
Operating Lease, Cost | $ 1.4 | $ 1.7 | $ 4.3 | $ 5.4 |
Operating Lease, Payments | 1.5 | 1.9 | ||
Short-term Lease, Cost | $ 0.6 | $ 0.4 | $ 1.9 | $ 1 |
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 | 6 years | 6 years |
LEASES Maturity Schedule (Detai
LEASES Maturity Schedule (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 (excluding nine months ended September 30, 2022) | $ 1,577 |
2023 | 5,742 |
2024 | 5,004 |
2025 | 5,034 |
2026 | 5,060 |
Thereafter | 6,446 |
Total future minimum lease payments | 28,863 |
Less effects of discounting | (4,307) |
Total lease liabilities | (24,556) |
Finance Lease, Liability, Payment, Due [Abstract] | |
2022 (excluding nine months ended September 30, 2022) | 56 |
2023 | 219 |
2024 | 72 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total future minimum lease payments | 347 |
Less effects of discounting | (4) |
Total lease liabilities | $ 343 |
LEASES Supplemental Balance She
LEASES Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right of use assets | $ 20,553 | $ 24,143 |
Accrued expenses and other current liabilities | (4,578) | |
Long-term lease liabilities | (19,978) | (23,379) |
Total lease liabilities | (24,556) | |
Other assets | 316 | |
Accrued expenses and other current liabilities | (243) | |
Other long-term liabilities | (100) | $ (289) |
Total lease liabilities | $ (343) |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Deferred Compensation Liability, Classified, Noncurrent | $ 4,263 | $ 4,981 |
Finance Lease, Liability, Noncurrent | 100 | 289 |
Other long-term liabilities | 597 | 647 |
Total | $ 4,960 | $ 5,917 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Product warranty accrual [Roll Forward] | |||
Accrual balance at beginning of year | $ 1,219 | $ 1,095 | |
Accruals for product warranties | 541 | 988 | |
Cost of warranty claims | (784) | (900) | |
Accrual balance at end of period | $ 976 | 976 | $ 1,183 |
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 | |
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 | $ 17,900 | $ 17,900 |
RESTRUCTURING COSTS AND ACCRU_3
RESTRUCTURING COSTS AND ACCRUALS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) position | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 158 | $ (88) | $ 515 | $ 1,001 |
Restructuring and Related Cost, Number of Positions Eliminated | position | 24 | |||
Employee Severance [Member] | ||||
Restructuring accrual [Roll Forward] | ||||
Accrual balance at beginning of year | 655 | |||
New restructuring charges - operating expenses | 515 | |||
Cash payments | (917) | |||
Foreign exchange impact on ending balance | (17) | |||
Accrual balance at end of period | $ 236 | $ 236 |
REVENUE Revenue by Type (Detail
REVENUE Revenue by Type (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||||
Number of reportable segments | 1 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 102,985 | $ 101,640 | $ 301,314 | $ 290,880 |
Subscription | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 41,782 | 28,008 | 108,878 | 74,384 |
Maintenance | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 27,280 | 30,702 | 83,382 | 90,997 |
Integrated solutions & other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 33,923 | $ 42,930 | $ 109,054 | $ 125,499 |
REVENUE Revenue by Geographic R
REVENUE Revenue by Geographic Regions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 102,985 | $ 101,640 | $ 301,314 | $ 290,880 |
United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 46,206 | 45,026 | 130,755 | 126,084 |
Europe, Middle East and Africa | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 36,865 | 38,782 | 112,026 | 109,400 |
Asia-Pacific | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 13,747 | 12,610 | 39,066 | 40,366 |
Other Americas | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 6,167 | $ 5,222 | $ 19,467 | $ 15,030 |
REVENUE Contract Asset (Details
REVENUE Contract Asset (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Change in Contract with Customer, Asset [Abstract] | |||
Contract asset at beginning of period | $ 25,397 | $ 18,579 | |
Revenue in excess of billings | 51,400 | 43,757 | |
Customer billings | (47,427) | (39,724) | |
Contract asset at end of period | 29,370 | $ 22,612 | |
Less: long-term portion (recorded in other long-term assets) | 11,642 | $ 0 | |
Contract asset, current portion | $ 17,728 | $ 22,612 |
REVENUE Deferred Revenue Activi
REVENUE Deferred Revenue Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Movement in Deferred Revenue [Roll Forward] | ||
Deferred revenue at beginning of period | $ 98,082 | $ 99,258 |
Billings deferred | 57,094 | 56,846 |
Recognition of prior deferred revenue | (78,501) | (69,337) |
Deferred revenue at end of period | 76,675 | 86,767 |
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 22,500 | |
Deferred Revenue | 76,675 | $ 86,767 |
Subscription | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 7,922 | |
Subscriptions | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 8,545 | |
Maintenance contracts | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 55,435 | |
Implied PCS | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | 4,293 | |
Professional services, training and other | ||
Deferred Revenue Arrangement [Line Items] | ||
Remaining Performance Obligation | $ 480 |
REVENUE Remaining Performance O
REVENUE Remaining Performance Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||||
Sep. 30, 2022 | Dec. 31, 2027 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Revenue Arrangement [Line Items] | |||||||
Revenue, Performance Obligation, Description of Timing | six years | ||||||
Remaining Performance Obligation | $ 22,500 | ||||||
Unbilled Receivables, Not Billable | 18,900 | ||||||
Subscription | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | 7,922 | ||||||
Subscriptions | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | 8,545 | ||||||
Maintenance contracts | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | 55,435 | ||||||
Implied PCS | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | 4,293 | ||||||
Implied PCS | Forecast [Member] | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | $ 100 | $ 300 | $ 700 | $ 1,100 | $ 1,600 | $ 500 | |
Professional services, training and other | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Remaining Performance Obligation | $ 480 |
LONG-TERM DEBT AND CREDIT AGR_3
LONG-TERM DEBT AND CREDIT AGREEMENT - SCHEDULE OF LONG TERM DEBT (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Term Loan, net of unamortized issuance costs and debt discount of $2,131 and $2,059 at September 30, 2022 and December 31, 2021, respectively | $ 164,594 | $ 168,941 |
Line of Credit Facility, Fair Value of Amount Outstanding | 19,000 | |
Other long-term debt | 783 | 1,023 |
Total debt | 184,377 | 169,964 |
Less: current portion | 8,694 | 9,158 |
Total long-term debt | $ 175,683 | $ 160,806 |
LONG-TERM DEBT AND CREDIT AGR_4
LONG-TERM DEBT AND CREDIT AGREEMENT Debt Disclosure (Details) - USD ($) $ in Thousands | Jan. 05, 2021 | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument, Periodic Payment, Principal | $ 2,173 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 8,697 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 11,913 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 16,200 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 17,281 | ||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 130,244 | ||
Total debt | 186,508 | ||
Convertible Notes unamortized issue discount and debt issuance costs | (2,131) | ||
Less: current portion | (8,694) | $ (9,158) | |
Total long-term debt | 175,683 | $ 160,806 | |
Line of Credit Facility, Fair Value of Amount Outstanding | 19,000 | ||
Line of Credit [Member] | |||
Convertible Notes unamortized issue discount and debt issuance costs | $ 2,500 | ||
Line of Credit [Member] | Cerberus Business Finance LLC [Member] | |||
Repayments of Lines of Credit | $ 201,000 | ||
Revolving Credit Facility [Member] | JPMorgan Chase | |||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 19,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument, Periodic Payment, Principal | 2,138 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 8,550 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 11,756 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 16,031 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 17,100 | ||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 111,150 | ||
Total debt | 166,725 | ||
Convertible Notes unamortized issue discount and debt issuance costs | (2,131) | ||
Less: current portion | (8,550) | ||
Total long-term debt | 156,044 | ||
Other Debt Obligations [Member] | |||
Debt Instrument, Periodic Payment, Principal | 35 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 147 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 157 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 169 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 181 | ||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 94 | ||
Total debt | 783 | ||
Convertible Notes unamortized issue discount and debt issuance costs | 0 | ||
Less: current portion | (144) | ||
Total long-term debt | $ 639 |
LONG-TERM DEBT AND CREDIT AGR_5
LONG-TERM DEBT AND CREDIT AGREEMENT Debt Disclosure1 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Feb. 25, 2022 | Jan. 05, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Other long-term debt | $ 783,000 | $ 783,000 | $ 1,023,000 | |||
Total debt | 184,377,000 | 184,377,000 | 169,964,000 | |||
Less: current portion | 8,694,000 | 8,694,000 | $ 9,158,000 | |||
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | 440,000 | $ 2,574,000 | ||||
Loss (Gain) on Extinguishment of Debt | $ 3,700,000 | 0 | 2,579,000 | |||
Convertible Notes unamortized issue discount and debt issuance costs | (2,131,000) | (2,131,000) | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 8,697,000 | 8,697,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 11,913,000 | 11,913,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 16,200,000 | 16,200,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 17,281,000 | 17,281,000 | ||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 130,244,000 | 130,244,000 | ||||
Write off of Deferred Debt Issuance Cost | 2,600,000 | |||||
Unwind capped call cash receipt | $ 1,100,000 | 0 | $ 1,169,000 | |||
Term Loan | ||||||
Debt Instrument, LIBOR Floor Rate | 0.25% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Term Loan | ||||||
Interest Expense, Long-term Debt | 2,100,000 | 4,600,000 | ||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Term Loan | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||||
JPMorgan Chase | Term Loan | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 180,000,000 | |||||
JPMorgan Chase | Revolving Credit Facility [Member] | ||||||
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | 400,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 70,000,000 | |||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 19,000,000 | $ 19,000,000 | ||||
Line Of Credit Facility, Covenant Terms, Maximum Net Leverage Ratio | 400% | |||||
Debt Instrument, Basis Spread on Variable Rate, Reduction | 0.25% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 3.58% | 3.58% |
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, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 895,259 | 1,061,834 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 534,419 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (578,107) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (122,887) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 26.58 | $ 16.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 32.35 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 15.20 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 19.01 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 11 months 23 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-vested Restricted Stock Aggregate Intrinsic Value | $ 20,815 | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (209,848) | |
Performance-Based Vesting [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 356,001 | 579,364 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 296,405 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (454,804) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (64,964) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 22.85 | $ 13.20 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 22.69 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 10.19 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 24.72 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 11 months 8 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-vested Restricted Stock Aggregate Intrinsic Value | $ 8,277 | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (200,208) |
STOCKHOLDERS' EQUITY Stock-base
STOCKHOLDERS' EQUITY Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payment Arrangement, Expense | $ 3,947 | $ 3,514 | $ 11,014 | $ 10,216 |
Restricted Stock Units (RSUs) [Member] | Time Based RSUs | ||||
Employee Benefits and Share-based Compensation | 2,892 | 2,507 | 8,272 | 7,528 |
Restricted Stock Units (RSUs) [Member] | Performance-Based Vesting [Member] | ||||
Employee Benefits and Share-based Compensation | 1,007 | 977 | 2,598 | 2,599 |
Employee Stock | ||||
Employee Benefits and Share-based Compensation | 48 | 30 | 144 | 89 |
Research and Development Expense [Member] | ||||
Share-based Payment Arrangement, Expense | 498 | 340 | 1,363 | 1,270 |
Selling and Marketing Expense [Member] | ||||
Share-based Payment Arrangement, Expense | 743 | 639 | 2,141 | 1,858 |
General and Administrative Expense [Member] | ||||
Share-based Payment Arrangement, Expense | $ 2,118 | $ 2,092 | $ 5,907 | $ 5,727 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | 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 | $ 46,300 | ||||
Stock Repurchased During Period, Value | $ 18,602 | $ 14,143 | $ 10,816 | $ 11,169 | |
Treasury Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchased During Period, Shares | 758 | 560 | 354 | 412 | |
Stock Repurchased During Period, Value | $ 18,602 | $ 14,143 | $ 10,816 | $ 11,169 |