Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Jan. 30, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | 8X8 INC /DE/ | |
Entity Central Index Key | 1,023,731 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Is Entity a Well-known Seasoned Issuer? | Yes | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 90,932,838 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 33,457 | $ 33,576 |
Short-term investments | 139,194 | 129,274 |
Accounts receivable, net | 13,069 | 11,070 |
Inventory | 572 | 520 |
Deferred cost of goods sold | 640 | 634 |
Deferred tax asset | 0 | 5,382 |
Other current assets | 5,551 | 5,444 |
Total current assets | 192,483 | 185,900 |
Property and equipment, net | 15,224 | 12,375 |
Intangible assets, net | 16,726 | 21,464 |
Goodwill | 44,327 | 47,420 |
Non-current deferred tax asset | 48,443 | 43,189 |
Other assets | 6,645 | 3,104 |
Total assets | 323,848 | 313,452 |
Current liabilities: | ||
Accounts payable | 12,537 | 10,954 |
Accrued compensation | 12,022 | 10,063 |
Accrued warranty | 290 | 326 |
Accrued taxes | 5,083 | 5,200 |
Accrued outside commissions | 2,843 | 2,186 |
Deferred revenue | 2,089 | 1,925 |
Other accrued liabilities | 3,627 | 4,080 |
Total current liabilities | 38,491 | 34,734 |
Non-current liabilities | 3,001 | 3,258 |
Non-current deferred revenue | 81 | 154 |
Total liabilities | 41,573 | 38,146 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock | 90 | 89 |
Additional paid-in capital | 404,192 | 389,260 |
Accumulated other comprehensive loss | (10,322) | (4,184) |
Accumulated deficit | (111,685) | (109,859) |
Total stockholders' equity | 282,275 | 275,306 |
Total liabilities and stockholders' equity | $ 323,848 | $ 313,452 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Consolidated Statements Of Operations | ||||
Service revenue | $ 60,149 | $ 48,948 | $ 173,162 | $ 140,068 |
Product revenue | 3,527 | 4,220 | 13,738 | 11,935 |
Total revenue | 63,676 | 53,168 | 186,900 | 152,003 |
Operating expenses: | ||||
Cost of service revenue | 10,525 | 9,713 | 31,597 | 27,359 |
Cost of product revenue | 4,240 | 5,087 | 15,527 | 14,065 |
Research and development | 7,095 | 6,404 | 20,310 | 17,930 |
Sales and marketing | 35,667 | 27,585 | 101,049 | 78,138 |
General and administrative | 7,852 | 6,888 | 21,400 | 18,614 |
Total operating expenses | 65,379 | 55,677 | 189,883 | 156,106 |
Loss from operations | (1,703) | (2,509) | (2,983) | (4,103) |
Other income, net | 408 | 272 | 1,209 | 710 |
Loss before provision (benefit) for income taxes | (1,295) | (2,237) | (1,774) | (3,393) |
Provision (benefit) for income taxes | 30 | (557) | 52 | 651 |
Net loss | $ (1,325) | $ (1,680) | $ (1,826) | $ (4,044) |
Net loss per share: | ||||
Basic | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.05) |
Diluted | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.05) |
Weighted average number of shares: | ||||
Basic | 90,774 | 88,289 | 90,062 | 88,812 |
Diluted | 90,774 | 88,289 | 90,062 | 88,812 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (1,325) | $ (1,680) | $ (1,826) | $ (4,044) |
Other comprehensive loss, net of tax | ||||
Unrealized loss on investments in securities | (170) | (245) | (63) | (320) |
Foreign currency translation adjustment | (1,791) | (972) | (6,075) | (904) |
Comprehensive loss | $ (3,286) | $ (2,897) | $ (7,964) | $ (5,268) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (1,826) | $ (4,044) |
Adjustments to reconcile net loss to net cash provided by operating activites: | ||
Depreciation | 4,463 | 3,598 |
Amortization of intangible assets | 2,741 | 2,565 |
Impairment of long-lived assets | 15 | 640 |
Amortization of capitalized software | 442 | 456 |
Net accretion of discount and amortization of premium on marketable securities | 228 | 584 |
Stock-based compensation expense | 15,630 | 11,202 |
Deferred income tax (benefit) provision | (104) | 361 |
Other | 574 | 467 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (3,267) | (3,138) |
Inventory | (87) | (122) |
Other current and noncurrent assets | (1,065) | (1,699) |
Deferred cost of goods sold | (86) | (156) |
Accounts payable | 1,732 | 418 |
Accrued compensation | 2,146 | 3,351 |
Accrued warranty | (36) | (17) |
Accrued taxes | (21) | 1,837 |
Deferred revenue | 168 | (427) |
Accrued outside commissions | 657 | 256 |
Other current and noncurrent liabilities | (84) | (748) |
Net cash provided by operating activities | 22,220 | 15,384 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (6,509) | (3,295) |
Cost of capitalized software | (3,939) | (1,275) |
Purchase of businesses, net of cash acquired | 0 | (23,434) |
Proceeds from maturity of investments | 47,625 | 38,451 |
Sales of investments - available for sale | 34,821 | 43,934 |
Purchase of investments - available for sale | (92,647) | (90,025) |
Net cash used in investing activities | (20,649) | (35,644) |
Cash flows from financing activities: | ||
Capital lease payments | (460) | (321) |
Payment of contingent consideration and escrow | (300) | (200) |
Repurchase of common stock | (2,828) | (11,628) |
Proceeds from issuance of common stock under employee stock plans | 2,694 | 2,848 |
Net cash used in financing activities | (894) | (9,301) |
Effect of exchange rate changes on cash | (796) | 317 |
Net decrease in cash and cash equivalents | (119) | (29,244) |
Cash and cash equivalents, beginning of the period | 33,576 | |
Cash and cash equivalents, end of the period | 33,457 | |
Supplemental cash flow information | ||
Income taxes paid | 350 | 441 |
Interest paid | 16 | 30 |
Non-cash investing and financing activities | ||
Property and equipment acquired under capital leases | $ 823 | $ 0 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Note 1 | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Note 1 | 1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS 8x8, Inc. (8x8 or the Company) is a provider of cloud-based, enterprise-class software solutions that transform the way businesses communicate and collaborate globally. The Company's integrated, "pure-cloud" offering combines global voice, contact center software, conferencing, messaging and video with integrated workflows and big data analytics on a single platform to enable increased team productivity, better customer engagement and real-time insights into business performance. BASIS OF PRESENTATION The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2017 refers to the fiscal year ended March 31, 2017). The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2016. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The March 31, 2016 year-end condensed consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by U.S. generally accepted accounting principles. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2016 and notes thereto included in the Company's fiscal 2016 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. RECLASSIFICATION Certain amounts previously reported within the Company's consolidated balance sheets and statements of cash flows have been reclassified to conform to the current period presentation. The reclassification had no impact on the Company's previously reported net loss, cash flows, or basic or diluted net loss per share amounts. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016 filed with the SEC on May 31, 2016, and there have been no changes to the Company's significant accounting policies during the nine months ended December 31, 2016, except as described in the "Recently Adopted Accounting Pronouncements" section below. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-5, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." In November 2015, the FASB issued ASU No. 2015-17, Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740) RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15 , Presentation of Financial Statements: Going Concern (Subtopic 205-40) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB has issued ASU No. 2016-16 , Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In November 2016, the FASB has issued ASU No. 2016-18 , Statement of Cash Flows (Topic 230) In January 2017, the FASB has issued ASU No. 2017-01 , Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB has issued ASU No. 2017-04, Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
FAIR VALUE MEASUREMENTS - Note
FAIR VALUE MEASUREMENTS - Note 2 | 9 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
FAIR VALUE MEASUREMENTS - Note 2 | 2. FAIR VALUE MEASUREMENTS Cash, cash equivalents, and available-for-sale investments, and contingent consideration were (in thousands): Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of December 31, 2016 Costs Gain Loss Fair Value Equivalents Investments Cash $ 27,382 $ - $ - $ 27,382 $ 27,382 $ - Level 1: Money market funds 6,075 - - 6,075 6,075 - Mutual funds 2,000 - (202) 1,798 - 1,798 Subtotal 35,457 - (202) 35,255 33,457 1,798 Level 2: Commercial paper 20,945 4 (2) 20,947 - 20,947 Corporate debt 90,469 57 (65) 90,461 - 90,461 Asset backed securities 22,630 7 (15) 22,622 - 22,622 Mortgage backed securities 367 - (2) 365 - 365 Agency bond 2,000 1 - 2,001 - 2,001 International government securities 1,000 - - 1,000 - 1,000 Subtotal 137,411 69 (84) 137,396 - 137,396 Total assets $ 172,868 $ 69 $ (286) $ 172,651 $ 33,457 $ 139,194 Level 3: Contingent consideration $ - $ - $ - $ 148 $ - $ - Total liabilities $ - $ - $ - $ 148 $ - $ - Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of March 31, 2016 Costs Gain Loss Fair Value Equivalents Investments Cash $ 18,596 $ - $ - $ 18,596 $ 18,596 $ - Level 1: Money market funds 14,980 - - 14,980 14,980 - Mutual funds 2,000 - (187) 1,813 - 1,813 Subtotal 35,576 - (187) 35,389 33,576 1,813 Level 2: Commercial paper 6,794 2 - 6,796 - 6,796 Corporate debt 85,164 78 (28) 85,214 - 85,214 Municipal securities 1,007 - (1) 1,006 - 1,006 Asset backed securities 24,614 7 (11) 24,610 - 24,610 Mortgage backed securities 2,045 - (17) 2,028 - 2,028 Agency bond 6,805 1 - 6,806 - 6,806 International government securities 1,000 1 - 1,001 - 1,001 Subtotal 127,429 89 (57) 127,461 - 127,461 Total assets $ 163,005 $ 89 $ (244) $ 162,850 $ 33,576 $ 129,274 Level 3: Contingent consideration $ - $ - $ - $ 148 $ - $ - Total liabilities $ - $ - $ - $ 148 $ - $ - Contractual maturities of investments as of December 31, 2016, are set forth below (in thousands): Estimated Fair Value Due within one year $ 86,842 Due after one year 52,352 Total $ 139,194 Contingent Consideration and Escrow Liability The Company's contingent consideration liability and escrow liability, included in other accrued liabilities and noncurrent liabilities on the consolidated balance sheets, was associated with the Quality Software Corporation (QSC) acquisition made in the first quarter of fiscal 2016. Amounts held in escrow were measured at fair value using present value computations. The contingent consideration was measured at fair value using a probability weighted average of the potential payment outcomes that would occur should certain contract milestones be reached. There is no market data available to use in valuing the contingent consideration; therefore, the Company developed its own assumptions related to the achievement of the milestones to evaluate the fair value of the liability. As such, the contingent consideration is classified within Level 3 as described below. The items are classified as Level 3 within the valuation hierarchy, consisting of contingent consideration and escrow liability related to the QSC acquisition, were valued based on an estimate of the probability of success of the milestones being achieved and present value computations, respectively. The table below presents a roll-forward of the contingent consideration and escrow liability valued using a Level 3 input (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Balance at beginning of period $ 216 $ 391 $ 341 $ - Purchase price contingent consideration - - - 541 Fair value adjustment 107 - 107 - Contingent consideration payments (175) (50) (300) (200) Balance at end of period $ 148 $ 341 $ 148 $ 341 |
INVENTORIES - Note 3
INVENTORIES - Note 3 | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
INVENTORIES - Note 3 | 3. INVENTORIES December 31, March 31, 2016 2016 Inventory (in thousands) Work-in-process $ - $ 76 Finished goods 572 444 $ 572 $ 520 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL - Note 4 | 9 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL - Note 4 | 4. INTANGIBLE ASSETS AND GOODWILL The carrying value of intangible assets consisted of the following (in thousands): December 31, 2016 March 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Technology $ 17,402 $ (6,318) $ 11,084 $ 18,640 $ (4,622) $ 14,018 Customer relationships 9,383 (5,858) 3,525 9,993 (4,847) 5,146 Trade names/domains 2,022 - 2,022 2,205 - 2,205 In-process research and development 95 - 95 95 - 95 Total acquired identifiable intangible assets $ 28,902 $ (12,176) $ 16,726 $ 30,933 $ (9,469) $ 21,464 At December 31, 2016, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount Remaining 2017 $ 869 2018 3,229 2019 2,983 2020 2,983 2021 2,644 Thereafter 1,901 Total $ 14,609 Impairment of Long-Lived Assets During the three months ended December 31, 2016, the Company decided to discontinue a certain customer segment of its United Kingdom based platform-as-a-service (DXI PaaS) that was acquired in fiscal 2016 as part of the DXI acquisition. The Company evaluated long-lived assets related to the DXI reporting unit including the technology, customer relationships, and trade name intangible assets for impairment. The Company determined it was appropriate to record an impairment charge equal to the remaining value of the impaired DXI PaaS customer relationship intangible in the third fiscal quarter. The impairment recorded during the fiscal year was immaterial to the consolidated statements of operations. Revenues and net income (loss) from DXI PaaS were not material for all periods presented. During the three months ended December 31, 2015, the Company decided to end-of-life its hosted virtual desktop service (Zerigo). The Company evaluated long-lived assets related to Zerigo including the technology, customer relationships, and trade name intangible assets for impairment. The Company determined it was appropriate to record an impairment charge equal to the remaining value of the impaired long-lived assets in the third fiscal quarter. The impairment recorded during the fiscal year was $0.6 million, of which $0.4 million and $0.2 million was recorded in cost of service and sales and marketing, respectively, in the consolidated statements of operations. Revenues and net income (loss) from Zerigo were not material for all periods presented. The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands): Americas Europe Total Balance as of March 31, 2016 $ 25,729 $ 21,691 $ 47,420 Foreign currency translation - (3,093) (3,093) Balance as of December 31, 2016 $ 25,729 $ 18,598 $ 44,327 |
RESEARCH, DEVELOPMENT AND SOFTW
RESEARCH, DEVELOPMENT AND SOFTWARE COSTS - Note 5 | 9 Months Ended |
Dec. 31, 2016 | |
Research and Development [Abstract] | |
RESEARCH, DEVELOPMENT AND SOFTWARE COSTS - Note 5 | 5. RESEARCH, DEVELOPMENT AND SOFTWARE COSTS In the first nine months of fiscal 2017 and 2016, the Company expensed all research and development costs in accordance with ASC 985-20, Costs of Software to be Sold, Leased or Marketed The Company accounts for computer software developed or obtained for internal use in accordance with ASC 350-40, Internal Use Software Other Long-Term Assets In the first nine months of fiscal 2017, the Company capitalized $3.9 million as other long-term assets. In the first nine months of fiscal 2016, the Company capitalized $1.1 million as other long-term assets. At December 31, 2016 and March 31, 2016, total completed capitalized software development cost included in other long-term assets was approximately $1.7 million. At December 31, 2016 and March 31, 2016, accumulated amortization cost related to completed capitalized software in other long term assets was approximately $0.4 million and $0, respectively. Property and Equipment In the first nine months of fiscal 2017, the Company capitalized $0.7 million as property and equipment. In the first nine months of fiscal 2016, the Company capitalized $0.2 million as property and equipment. At December 31, 2016 and March 31, 2016, total completed capitalized software cost included in property and equipment was approximately $2.5 million and $1.2 million, respectively. At December 31, 2016 and March 31, 2016, accumulated amortization cost related to completed capitalized software in property and equipment was approximately $0.6 million and $0.2 million, respectively. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Note 6 | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
COMMITMENTS AND CONTINGENCIES - Note 6 | 6. COMMITMENTS AND CONTINGENCIES Leases The Company leases its headquarters facility in San Jose, California under an operating lease agreement that expires in October 2019. The lease is an industrial net lease with monthly base rent of $130,821 for the first 15 months with a 3% increase each year thereafter, and requires us to pay property taxes, utilities and normal maintenance costs. The Company also leases facilities for office space under non-cancelable operating leases for its various domestic and international locations. The Company has entered into a series of noncancelable capital lease agreements for office equipment bearing interest at various rates. Assets under capital lease at December 31, 2016 totaled $2.3 million with accumulated amortization of $0.8 million. Guarantees Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. Product Warranties The Company accrues for the estimated costs that may be incurred under its product warranties upon revenue recognition. Changes in the Company's product warranty liability, which is included in cost of product revenues in the consolidated statements of operations, were as follows (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Balance at beginning of period $ 333 $ 325 $ 326 $ 339 Accruals for warranties 24 88 251 263 Settlements (26) (70) (201) (223) Adjustments (41) (21) (86) (57) Balance at end of period $ 290 $ 322 $ 290 $ 322 Minimum Third Party Customer Support Commitments In the third quarter of 2010, the Company amended its contract with one of its third party customer support vendors containing a minimum monthly commitment of approximately $0.4 million effective April 1, 2010. The agreement requires a 150-day notice to terminate. At December 31, 2016, the total remaining obligation upon a termination of the contract was $2.2 million. Minimum Third Party Network Service Provider Commitments The Company has entered into contracts with multiple vendors for third party network service which expire on various dates in fiscal 2017 through 2020. At December 31, 2016, future minimum annual payments under these third party network service contracts were as follows (in thousands): Year ending March 31: Remaining 2017 $ 478 2018 1,363 2019 132 2020 8 Total minimum payments $ 1,981 Legal Proceedings The Company, from time to time, is involved in various legal claims or litigation, including patent infringement claims that can arise in the normal course of the Company's operations. Pending or future litigation could be costly, could cause the diversion of management's attention and could upon resolution, have a material adverse effect on the Company's business, results of operations, financial condition and cash flows. On February 22, 2011, the Company was named a defendant in Bear Creek Technologies, Inc. (BCT) v. 8x8, Inc. et al. In re Bear Creek Technologies, Inc. On November 14, 2016, the Company was named as a defendant in Serenitiva LLC v. 8x8, Inc. filed in U.S. District Court for the E.D. of Texas (Civil Action No. 6:16-cv-1290). Plaintiff Serenitiva LLC is suing the Company based on alleged infringement of U.S. Patent No. 6,865,268 by alleged Company activities in connection with the Company's Virtual Contact Center Agent Console (alleged as providing interactive, real-time call tracking and resolution management over a communications network). Plaintiff Serenitiva LLC also sued nine other defendants regarding the same patent asserted in the complaint filed against the Company. The Company is currently assessing factual and legal defenses to these claims and expect to present a vigorous defense. The Company has not answered the complaint yet and 8x8 cannot estimate potential liability in this case at this early stage of the litigation. Plaintiff Serenitiva and three of these other defendants have already settled/resolved their respective suits. On December 2, 2016, the Company was named as a defendant in Paluxy Messaging LLC v. 8x8, Inc. filed in U.S. District Court for the E.D. of Texas, Tyler Division (Civil Action No. 6:16-cv-1346). Plaintiff Paluxy Messaging LLC is suing the Company based on alleged infringement U.S. Patent No. 8,411,829 by alleged activities in connection with the Company's use of a voicemail system (alleged in the complaint as providing a system for managing messages). Plaintiff Paluxy Messaging LLC also sued seven other defendants regarding the same patent asserted in the complaint filed against the Company. The Company is currently assessing factual and legal defenses to these claims and expect to present a vigorous defense. The Company has not answered the complaint yet and the Company cannot estimate potential liability in this case at this early stage of the litigation. Plaintiff Paluxy Messaging and three of these other defendants have already settled/resolved their respective suits. On April 16, 2015, the Company was named as a defendant in Slocumb Law Firm v. 8x8, Inc. The Slocumb Law Firm has alleged that it purchased certain business services from the Company that did not perform as advertised or expected, and has asserted causes of actions for fraud, breach of contract, violations of the Alabama Deceptive Trade Practices Act and negligence. On May 7, 2015, the Company filed a motion with the U.S. District Court for the Middle District of Alabama, seeking an order compelling the Slocumb Law Firm to arbitrate its claims against the Company in Santa Clara County, California pursuant to a clause mandating arbitration of disputes set forth in the terms and conditions to which Slocumb Law Firm agreed in connection with its purchase of business services from the Company. No briefing schedule or hearing date for the motion has been set as of this time. Discovery has not yet commenced in the case. The Company intends to vigorously defend against the Slocumb Law Firm's claims. State and Municipal Taxes From time to time, the Company has received inquiries from a number of state and municipal taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. During the period ended December 31, 2016, the City of San Francisco levied an assessment for utility taxes against the Company. The Company plans to vigorously appeal the assessment. Based on historical experience of the Company, management has determined the probable loss relating to this exposure to be approximately $0.4 million, which was recorded in the consolidated financial statements as of December 31, 2016. Although the outcome cannot be predicted, the estimated reasonable additional loss is between $0 to $0.6 million. |
STOCK-BASED COMPENSATION - Note
STOCK-BASED COMPENSATION - Note 7 | 9 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
STOCK-BASED COMPENSATION - Note 7 | 7. STOCK-BASED COMPENSATION The following table summarizes stock-based compensation expense (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Cost of service revenue $ 538 $ 346 $ 1,338 $ 828 Cost of product revenue - - - - Research and development 1,061 850 2,811 2,107 Sales and marketing 2,452 1,689 6,118 4,308 General and administrative 2,020 1,778 5,363 3,959 Total stock-based compensation expense related to employee stock options and employee stock purchases, pre-tax 6,071 4,663 15,630 11,202 Tax benefit - - - - Stock-based compensation expense related to employee stock options and employee stock purchases, net of tax $ 6,071 $ 4,663 $ 15,630 $ 11,202 Stock Options, Stock Purchase Right and Restricted Stock Unit Activity Stock Option activity under all the Company's stock option plans for the nine months ended December 31, 2016, is summarized as follows: Weighted Average Number of Exercise Price Shares Per Share Outstanding at March 31, 2016 4,793,266 $ 6.29 Granted 358,832 14.54 Exercised (338,781) 2.17 Canceled/Forfeited (42,469) 9.87 Outstanding at December 31, 2016 4,770,848 $ 7.17 Vested and expected to vest at December 31, 2016 4,770,848 $ 7.17 Exercisable at December 31, 2016 3,265,483 $ 5.99 Stock Purchase Right activity for the nine months ended December 31, 2016 is summarized as follows: Weighted Weighted Average Average Grant-Date Remaining Number of Fair Market Contractual Shares Value Term (in Years) Balance at March 31, 2016 82,171 $ 6.30 0.76 Granted - - Vested (68,426) 5.98 Forfeited (1,125) 6.73 Balance at December 31, 2016 12,620 $ 8.00 1.20 Restricted Stock Unit activity for the nine months ended December 31, 2016 is summarized as follows: Weighted Weighted Average Average Remaining Number of Grant Date Contractual Shares Fair Value Term (in Years) Balance at March 31, 2016 4,544,799 $ 8.09 1.67 Granted 2,115,744 15.07 Vested (1,351,014) 7.99 Forfeited (284,431) 9.35 Balance at December 31, 2016 5,025,098 $ 10.99 1.66 The following table summarizes stock options outstanding and exercisable at December 31, 2016: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Exercise Remaining Aggregate Exercise Aggregate Price Contractual Intrinsic Price Intrinsic Shares Per Share Life (Years) Value Shares Per Share Value $0.55 to $4.26 991,768 $ 1.43 1.6 $ 12,760,718 991,768 $ 1.43 $ 12,760,718 $4.32 to $6.86 1,288,863 $ 6.26 6.7 10,368,791 969,263 $ 6.06 7,990,967 $7.52 to $9.21 1,047,938 $ 8.38 8.1 6,207,461 481,286 $ 8.44 2,821,376 $9.35 to $10.97 1,017,107 $ 9.86 6.9 4,517,121 759,962 $ 9.80 3,418,142 $11.26 to $15.40 425,172 $ 13.95 9.2 389,388 63,204 $ 11.96 156,748 4,770,848 $ 34,243,479 3,265,483 $ 27,147,951 As of December 31, 2016, there was $49.7 million of unamortized stock-based compensation expense related to unvested stock options and awards which is expected to be recognized over a weighted average period of 2.12 years. Unamortized stock-based compensation expense related to shares issued as part of a prior year acquisition was approximately $1.5 million, which will be recognized over a weighted average period of 2.42 years. Assumptions Used to Calculate Stock-Based Compensation Expense The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Expected volatility 42% 51% 44% 53% Expected dividend yield - - - - Risk-free interest rate 1.20% 1.75% 1.17% 1.60% Weighted average expected option term 4.50 years 5.25 years 4.69 years 5.44 years Weighted average fair value of options granted $ 5.54 $ 4.92 $ 5.47 $ 4.12 The estimated fair value of options granted under the Employee Stock Purchase Plan was estimated at the date of grant using Black-Scholes pricing model with the following weighted average assumptions: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Expected volatility - - 40% 45% Expected dividend yield - - - - Risk-free interest rate - - 0.45% 0.30% Weighted average expected ESPP option term - - 0.76 years 0.75 years Weighted average fair value of ESPP options granted $ - $ - $ 4.04 $ 2.78 As of December 31, 2016, there were approximately $0.2 million of total unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.2 years. Performance Stock Units During the nine months ended December 31, 2016, the Company issued restricted performance stock units (PSUs) to a group of executives with vesting that is contingent on both market performance and continued service. These PSUs vest (1) 50% on September 22, 2018 and (2) 50% on September 27, 2019, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR) for each 1% of positive or negative relative TSR, and the number of shares earned will increase or decrease by 2% of the target numbers. In the event 8x8's common stock performance is below negative 30%, relative to the benchmark, no shares will be issued. These PSU grants are included in the restricted stock unit activity disclosure for the nine months ended December 31, 2016. To value these market-based restricted performance stock units under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant. Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the NASDAQ Composite Index, risk free interest rates, and future dividend payments. Stock Repurchases In February 2015, the Company's board of directors authorized the Company to purchase up to $20.0 million of its common stock from time to time until February 29, 2016 (the "2015 Repurchase Plan"). In October 2015, the Company's board of directors authorized the Company to purchase an additional $15.0 million of its common stock from time to time until October 20, 2016. There were no stock repurchases during the nine months ended December 31, 2016. The plan expired in October 2016 with an unused authorized repurchase amount of $15.0 million. |
INCOME TAXES - Note 8
INCOME TAXES - Note 8 | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
INCOME TAXES - Note 8 | 8. INCOME TAXES For the three months ended December 31, 2016, the Company recorded a benefit from income taxes of $35,000, which was primarily attributable to loss from operations. For the three months ended December 31, 2015, the Company recorded a provision for income taxes of $0.6 million, which was primarily attributable to loss from operations. The Company estimated the annual effective rate at the end of each quarterly period, and recorded the tax effect of certain discrete items, which are unusual or occur infrequently, in the interim period in which they occur, including changes in judgment about deferred tax valuation allowances. The determination of the effective tax rate reflects tax expense and benefit generated in certain domestic and foreign jurisdictions. However, jurisdictions with a year-to-date loss where no tax benefit can be recognized are excluded from the annual effective tax rate. At March 31, 2016, the Company had a liability for unrecognized tax benefits of $2.9 million, all of which, if recognized, would decrease the company's effective tax rate. The Company does not believe that there has been any significant change in the unrecognized tax benefits for the three and nine months ended December 31, 2016, and does not expect the remaining unrecognized tax benefit to change materially in the next 12 months. To the extent that the remaining unrecognized tax benefits are ultimately recognized, they will have an impact on the effective tax rate in future periods. The Company is subject to taxation in the U.S., California and various other states and foreign jurisdictions in which it has or had a subsidiary or branch operations or it is collecting sales tax. All tax returns from fiscal 2013 to fiscal 2016 may be subject to examination by the Internal Revenue Service, California and various other states. Net operating losses and tax credits carried forward to March 31, 2016 may still be subject to adjustment by the taxing authorities until the period is closed to examination. As of January 30, 2017, there were no active federal or state income tax audits. Returns filed in foreign jurisdictions may be subject to examination for the fiscal years 2011 to 2016. |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - Note 9 | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
NET INCOME (LOSS) PER SHARE - Note 9 | 9. NET INCOME (LOSS) PER SHARE The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Numerator: Net loss available to common stockholders $ (1,325) $ (1,680) $ (1,826) $ (4,044) Denominator: Common shares used in basic and diluted calculation 90,774 88,289 90,062 88,812 Basic and diluted net loss per share $ (0.01) $ (0.02) $ (0.02) $ (0.05) The following shares attributable to outstanding stock options and restricted stock purchase rights were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Employee stock options 368 1,232 243 2,539 Stock purchase rights 352 - 653 55 Total anti-dilutive employee stock-based securities 720 1,232 896 2,594 |
SEGMENT REPORTING - Note 10
SEGMENT REPORTING - Note 10 | 9 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING - Note 10 | 10. SEGMENT REPORTING ASC 280, Segment Reporting The Company manages its operations primarily on a geographic basis. The Chief Executive Officer, the Chief Financial Officer, and the Chief Technology Officer or the Company's Chief Operating Decision Makers (CODMs), evaluate performance of the Company and make decisions regarding allocation of resources based on geographic results. The Company's reportable segments are the Americas and Europe. The Americas segment is primarily North America. The Europe segment is primarily the United Kingdom. Each operating segment provides similar products and services. The Company's CODMs evaluate the performance of its operating segments based on revenues and net income. Revenues are attributed to each segment based on the ordering location of the customer or ship to location. The Company allocates corporate overhead costs such as research and development, sales and marketing, general and administrative, amortization expense, stock-based compensation expense, and commitment and contingencies to the Americas segment. The Company's revenue distribution by geographic region (based upon the destination of shipments and the customer's service address) was as follows: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Americas (principally US) 90% 87% 89% 87% Europe (principally UK) 10% 13% 10% 12% Asia-Pacific 0% 0% 1% 1% 100% 100% 100% 100% Geographic area data is based upon the location of the property and equipment and is as follows (in thousands): December 31, March 31, 2016 2016 Americas (principally US) $ 10,973 $ 9,165 Europe (principally UK) 4,123 2,642 Asia-Pacific 128 568 Total $ 15,224 $ 12,375 The following table provides financial information by segment for the three and nine months ended December 31, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Americas (principally US): Net revenues $ 57,654 $ 46,503 $ 167,686 $ 134,177 Net income $ 831 $ 467 $ 4,341 $ 733 Europe (principally UK): Net revenues $ 6,022 $ 6,665 $ 19,214 $ 17,826 Net loss $ (2,156) $ (2,147) $ (6,167) $ (4,777) |
SUBSEQUENT EVENTS - Note 11
SUBSEQUENT EVENTS - Note 11 | 9 Months Ended |
Dec. 31, 2016 | |
Subsequent Events - Note 11 | |
SUBSEQUENT EVENTS - Note 11 | 11. SUBSEQUENT EVENTS In January 2017, the Company acquired a technology company in the collaboration space, for approximately $3.0 million. Total acquisition related costs were immaterial. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fiscal Period | The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2017 refers to the fiscal year ended March 31, 2017). |
Use of Estimates | The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2016. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. |
Basis of Accounting | The March 31, 2016 year-end condensed consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by U.S. generally accepted accounting principles. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2016 and notes thereto included in the Company's fiscal 2016 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016 filed with the SEC on May 31, 2016, and there have been no changes to the Company's significant accounting policies during the nine months ended December 31, 2016, except as described in the "Recently Adopted Accounting Pronouncements" section below. |
Reclassification | RECLASSIFICATION Certain amounts previously reported within the Company's consolidated balance sheets and statements of cash flows have been reclassified to conform to the current period presentation. The reclassification had no impact on the Company's previously reported net loss, cash flows, or basic or diluted net income per share amounts. |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. |
Recently Adopted Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-5, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." In November 2015, the FASB issued ASU No. 2015-17, Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740) |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15 , Presentation of Financial Statements: Going Concern (Subtopic 205-40) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB has issued ASU No. 2016-16 , Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In November 2016, the FASB has issued ASU No. 2016-18 , Statement of Cash Flows (Topic 230) In January 2017, the FASB has issued ASU No. 2017-01 , Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB has issued ASU No. 2017-04, Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Research, Development and Software Costs | RESEARCH, DEVELOPMENT AND SOFTWARE COSTS In the first nine months of fiscal 2017 and 2016, the Company expensed all research and development costs in accordance with ASC 985-20, Costs of Software to be Sold, Leased or Marketed The Company accounts for computer software developed or obtained for internal use in accordance with ASC 350-40, Internal Use Software |
Indemnifications | Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. |
Warranty Expense | WARRANTY EXPENSE The Company accrues for the estimated costs that may be incurred under its product warranties upon revenue recognition. |
Segment Reporting | SEGMENT REPORTING ASC 280, Segment Reporting The Company manages its operations primarily on a geographic basis. The Chief Executive Officer, the Chief Financial Officer, and the Chief Technology Officer or the Company's Chief Operating Decision Makers (CODMs), evaluate performance of the Company and make decisions regarding allocation of resources based on geographic results. The Company's reportable segments are the Americas and Europe. The Americas segment is primarily North America. The Europe segment is primarily the United Kingdom. Each operating segment provides similar products and services. The Company's CODMs evaluate the performance of its operating segments based on revenues and net income. Revenues are attributed to each segment based on the ordering location of the customer or ship to location. The Company allocates corporate overhead costs such as research and development, sales and marketing, general and administrative, amortization expense, stock-based compensation expense, and commitment and contingencies to the Americas segment. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements Tables | |
Fair Value Measurements, Recurring and Nonrecurring (Tables) | Cash, cash equivalents, and available-for-sale investments, and contingent consideration were (in thousands): Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of December 31, 2016 Costs Gain Loss Fair Value Equivalents Investments Cash $ 27,382 $ - $ - $ 27,382 $ 27,382 $ - Level 1: Money market funds 6,075 - - 6,075 6,075 - Mutual funds 2,000 - (202) 1,798 - 1,798 Subtotal 35,457 - (202) 35,255 33,457 1,798 Level 2: Commercial paper 20,945 4 (2) 20,947 - 20,947 Corporate debt 90,469 57 (65) 90,461 - 90,461 Asset backed securities 22,630 7 (15) 22,622 - 22,622 Mortgage backed securities 367 - (2) 365 - 365 Agency bond 2,000 1 - 2,001 - 2,001 International government securities 1,000 - - 1,000 - 1,000 Subtotal 137,411 69 (84) 137,396 - 137,396 Total assets $ 172,868 $ 69 $ (286) $ 172,651 $ 33,457 $ 139,194 Level 3: Contingent consideration $ - $ - $ - $ 148 $ - $ - Total liabilities $ - $ - $ - $ 148 $ - $ - Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of March 31, 2016 Costs Gain Loss Fair Value Equivalents Investments Cash $ 18,596 $ - $ - $ 18,596 $ 18,596 $ - Level 1: Money market funds 14,980 - - 14,980 14,980 - Mutual funds 2,000 - (187) 1,813 - 1,813 Subtotal 35,576 - (187) 35,389 33,576 1,813 Level 2: Commercial paper 6,794 2 - 6,796 - 6,796 Corporate debt 85,164 78 (28) 85,214 - 85,214 Municipal securities 1,007 - (1) 1,006 - 1,006 Asset backed securities 24,614 7 (11) 24,610 - 24,610 Mortgage backed securities 2,045 - (17) 2,028 - 2,028 Agency bond 6,805 1 - 6,806 - 6,806 International government securities 1,000 1 - 1,001 - 1,001 Subtotal 127,429 89 (57) 127,461 - 127,461 Total assets $ 163,005 $ 89 $ (244) $ 162,850 $ 33,576 $ 129,274 Level 3: Contingent consideration $ - $ - $ - $ 148 $ - $ - Total liabilities $ - $ - $ - $ 148 $ - $ - |
Investments Classified By Contractual Maturity Date (Tables) | Contractual maturities of investments as of December 31, 2016, are set forth below (in thousands): Estimated Fair Value Due within one year $ 86,842 Due after one year 52,352 Total $ 139,194 |
Rollforward of contingent consideration liabilities (Tables) | The table below presents a roll-forward of the contingent consideration and escrow liability valued using a Level 3 input (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Balance at beginning of period $ 216 $ 391 $ 341 $ - Purchase price contingent consideration - - - 541 Fair value adjustment 107 - 107 - Contingent consideration payments (175) (50) (300) (200) Balance at end of period $ 148 $ 341 $ 148 $ 341 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Inventory Tables | |
Inventory (Tables) | December 31, March 31, 2016 2016 Inventory (in thousands) Work-in-process $ - $ 76 Finished goods 572 444 $ 572 $ 520 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Intangible Assets Tables | |
Carrying values of intangible assets | The carrying value of intangible assets consisted of the following (in thousands): December 31, 2016 March 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Technology $ 17,402 $ (6,318) $ 11,084 $ 18,640 $ (4,622) $ 14,018 Customer relationships 9,383 (5,858) 3,525 9,993 (4,847) 5,146 Trade names/domains 2,022 - 2,022 2,205 - 2,205 In-process research and development 95 - 95 95 - 95 Total acquired identifiable intangible assets $ 28,902 $ (12,176) $ 16,726 $ 30,933 $ (9,469) $ 21,464 |
Finite-lived intangible assets - future amortization expense | At December 31, 2016, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount Remaining 2017 $ 869 2018 3,229 2019 2,983 2020 2,983 2021 2,644 Thereafter 1,901 Total $ 14,609 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Goodwill Tables | |
Carrying amounts of goodwill | The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands): Americas Europe Total Balance as of March 31, 2016 $ 25,729 $ 21,691 $ 47,420 Foreign currency translation - (3,093) (3,093) Balance as of December 31, 2016 $ 25,729 $ 18,598 $ 44,327 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Tables | |
Product warranties | Changes in the Company's product warranty liability, which is included in cost of product revenues in the consolidated statements of operations, were as follows (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Balance at beginning of period $ 333 $ 325 $ 326 $ 339 Accruals for warranties 24 88 251 263 Settlements (26) (70) (201) (223) Adjustments (41) (21) (86) (57) Balance at end of period $ 290 $ 322 $ 290 $ 322 |
Minimum third party network service provider commitments | At December 31, 2016, future minimum annual payments under these third party network service contracts were as follows (in thousands): Year ending March 31: Remaining 2017 $ 478 2018 1,363 2019 132 2020 8 Total minimum payments $ 1,981 |
Distribution of Stock-Based Com
Distribution of Stock-Based Compensation Plan Expense (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Distribution Of Stock-based Compensation Plan Expense Tables | |
Schedule Of Stock-Based Compensation Expense By Statement Of Operations Line Item | The following table summarizes stock-based compensation expense (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Cost of service revenue $ 538 $ 346 $ 1,338 $ 828 Cost of product revenue - - - - Research and development 1,061 850 2,811 2,107 Sales and marketing 2,452 1,689 6,118 4,308 General and administrative 2,020 1,778 5,363 3,959 Total stock-based compensation expense related to employee stock options and employee stock purchases, pre-tax 6,071 4,663 15,630 11,202 Tax benefit - - - - Stock-based compensation expense related to employee stock options and employee stock purchases, net of tax $ 6,071 $ 4,663 $ 15,630 $ 11,202 |
Stock-Based Compensation And Em
Stock-Based Compensation And Employee Purchase Plan (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Employee Stock Purchase Plan | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The estimated fair value of options granted under the Employee Stock Purchase Plan was estimated at the date of grant using Black-Scholes pricing model with the following weighted average assumptions: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Expected volatility - - 40% 45% Expected dividend yield - - - - Risk-free interest rate - - 0.45% 0.30% Weighted average expected ESPP option term - - 0.76 years 0.75 years Weighted average fair value of ESPP options granted $ - $ - $ 4.04 $ 2.78 |
Option Grants | |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | Stock Option activity under all the Company's stock option plans for the nine months ended December 31, 2016, is summarized as follows: Weighted Average Number of Exercise Price Shares Per Share Outstanding at March 31, 2016 4,793,266 $ 6.29 Granted 358,832 14.54 Exercised (338,781) 2.17 Canceled/Forfeited (42,469) 9.87 Outstanding at December 31, 2016 4,770,848 $ 7.17 Vested and expected to vest at December 31, 2016 4,770,848 $ 7.17 Exercisable at December 31, 2016 3,265,483 $ 5.99 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Expected volatility 42% 51% 44% 53% Expected dividend yield - - - - Risk-free interest rate 1.20% 1.75% 1.17% 1.60% Weighted average expected option term 4.50 years 5.25 years 4.69 years 5.44 years Weighted average fair value of options granted $ 5.54 $ 4.92 $ 5.47 $ 4.12 |
Stock Purchase Rights | |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | Stock Purchase Right activity for the nine months ended December 31, 2016 is summarized as follows: Weighted Weighted Average Average Grant-Date Remaining Number of Fair Market Contractual Shares Value Term (in Years) Balance at March 31, 2016 82,171 $ 6.30 0.76 Granted - - Vested (68,426) 5.98 Forfeited (1,125) 6.73 Balance at December 31, 2016 12,620 $ 8.00 1.20 |
Restricted Stock Units | |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | Restricted Stock Unit activity for the nine months ended December 31, 2016 is summarized as follows: Weighted Weighted Average Average Remaining Number of Grant Date Contractual Shares Fair Value Term (in Years) Balance at March 31, 2016 4,544,799 $ 8.09 1.67 Granted 2,115,744 15.07 Vested (1,351,014) 7.99 Forfeited (284,431) 9.35 Balance at December 31, 2016 5,025,098 $ 10.99 1.66 |
Stock Options Outstanding And E
Stock Options Outstanding And Exercisable (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Stock Options Outstanding And Exercisable Tables | |
Summary Of Outstanding And Exercisable Stock Options | The following table summarizes stock options outstanding and exercisable at December 31, 2016: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Exercise Remaining Aggregate Exercise Aggregate Price Contractual Intrinsic Price Intrinsic Shares Per Share Life (Years) Value Shares Per Share Value $0.55 to $4.26 991,768 $ 1.43 1.6 $ 12,760,718 991,768 $ 1.43 $ 12,760,718 $4.32 to $6.86 1,288,863 $ 6.26 6.7 10,368,791 969,263 $ 6.06 7,990,967 $7.52 to $9.21 1,047,938 $ 8.38 8.1 6,207,461 481,286 $ 8.44 2,821,376 $9.35 to $10.97 1,017,107 $ 9.86 6.9 4,517,121 759,962 $ 9.80 3,418,142 $11.26 to $15.40 425,172 $ 13.95 9.2 389,388 63,204 $ 11.96 156,748 4,770,848 $ 34,243,479 3,265,483 $ 27,147,951 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Net Income Loss Per Share Tables | |
Net Income (Loss) Per Share | The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Numerator: Net loss available to common stockholders $ (1,325) $ (1,680) $ (1,826) $ (4,044) Denominator: Common shares used in basic and diluted calculation 90,774 88,289 90,062 88,812 Basic and diluted net loss per share $ (0.01) $ (0.02) $ (0.02) $ (0.05) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares attributable to outstanding stock options and restricted stock purchase rights were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Employee stock options 368 1,232 243 2,539 Stock purchase rights 352 - 653 55 Total anti-dilutive employee stock-based securities 720 1,232 896 2,594 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Segment Information Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The Company's revenue distribution by geographic region (based upon the destination of shipments and the customer's service address) was as follows: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Americas (principally US) 90% 87% 89% 87% Europe (principally UK) 10% 13% 10% 12% Asia-Pacific 0% 0% 1% 1% 100% 100% 100% 100% Geographic area data is based upon the location of the property and equipment and is as follows (in thousands): December 31, March 31, 2016 2016 Americas (principally US) $ 10,973 $ 9,165 Europe (principally UK) 4,123 2,642 Asia-Pacific 128 568 Total $ 15,224 $ 12,375 |
Operating Segment Information (
Operating Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Operating Segment Information Tables | |
Schedule of Segment Reporting Information, by Segment | The following table provides financial information by segment for the three and nine months ended December 31, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 Americas (principally US): Net revenues $ 57,654 $ 46,503 $ 167,686 $ 134,177 Net income $ 831 $ 467 $ 4,341 $ 733 Europe (principally UK): Net revenues $ 6,022 $ 6,665 $ 19,214 $ 17,826 Net loss $ (2,156) $ (2,147) $ (6,167) $ (4,777) |
Description of the Business (Na
Description of the Business (Narrative) (Details) | 9 Months Ended |
Dec. 31, 2016 | |
Description Of Business Narrative Details | |
Fiscal Year End Date | --03-31 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 |
Amortized Costs | $ 172,868 | $ 163,005 | ||||
Gross Unrealized Gains | 69 | 89 | ||||
Gross Unrealized Loss | (286) | (244) | ||||
Estimated Fair Value | 172,651 | 162,850 | ||||
Cash and cash equivalents | 33,457 | 33,576 | ||||
Short-term marketable investments | 139,194 | 129,274 | ||||
Liabilities, Fair Value Disclosure | 148 | $ 216 | 341 | $ 341 | $ 391 | $ 0 |
Aavailable-for-sale investments due within one year | 86,842 | |||||
Aavailable-for-sale investments due after one year | 52,352 | |||||
Level 1 | ||||||
Amortized Costs | 35,457 | 35,576 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Loss | (202) | (187) | ||||
Estimated Fair Value | 35,255 | 35,389 | ||||
Cash and cash equivalents | 33,457 | 33,576 | ||||
Short-term marketable investments | 1,798 | 1,813 | ||||
Level 2 | ||||||
Amortized Costs | 137,411 | 127,429 | ||||
Gross Unrealized Gains | 69 | 89 | ||||
Gross Unrealized Loss | (84) | (57) | ||||
Estimated Fair Value | 137,396 | 127,461 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 137,396 | 127,461 | ||||
Level 3 | ||||||
Amortized Costs | 0 | 0 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Loss | 0 | 0 | ||||
Estimated Fair Value | 148 | 148 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 0 | 0 | ||||
Liabilities, Fair Value Disclosure | 148 | 148 | ||||
Cash | ||||||
Amortized Costs | 27,382 | 18,596 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Loss | 0 | 0 | ||||
Estimated Fair Value | 27,382 | 18,596 | ||||
Cash and cash equivalents | 27,382 | 18,596 | ||||
Short-term marketable investments | 0 | 0 | ||||
Money Market Funds | Level 1 | ||||||
Amortized Costs | 6,075 | 14,980 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Loss | 0 | 0 | ||||
Estimated Fair Value | 6,075 | 14,980 | ||||
Cash and cash equivalents | 6,075 | 14,980 | ||||
Short-term marketable investments | 0 | 0 | ||||
Mutual Funds | Level 1 | ||||||
Amortized Costs | 2,000 | 2,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Loss | (202) | (187) | ||||
Estimated Fair Value | 1,798 | 1,813 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 1,798 | 1,813 | ||||
Commercial Paper | Level 2 | ||||||
Amortized Costs | 20,945 | 6,794 | ||||
Gross Unrealized Gains | 4 | 2 | ||||
Gross Unrealized Loss | (2) | 0 | ||||
Estimated Fair Value | 20,947 | 6,796 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 20,947 | 6,796 | ||||
Corporate Debt | Level 2 | ||||||
Amortized Costs | 90,469 | 85,164 | ||||
Gross Unrealized Gains | 57 | 78 | ||||
Gross Unrealized Loss | (65) | (28) | ||||
Estimated Fair Value | 90,461 | 85,214 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 90,461 | 85,214 | ||||
Municipal Securities | Level 2 | ||||||
Amortized Costs | 1,007 | |||||
Gross Unrealized Gains | 0 | |||||
Gross Unrealized Loss | (1) | |||||
Estimated Fair Value | 1,006 | |||||
Cash and cash equivalents | 0 | |||||
Short-term marketable investments | 1,006 | |||||
Asset-backed Securities | Level 2 | ||||||
Amortized Costs | 22,630 | 24,614 | ||||
Gross Unrealized Gains | 7 | 7 | ||||
Gross Unrealized Loss | (15) | (11) | ||||
Estimated Fair Value | 22,622 | 24,610 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 22,622 | 24,610 | ||||
Mortgage backed Securities | Level 2 | ||||||
Amortized Costs | 367 | 2,045 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Loss | (2) | (17) | ||||
Estimated Fair Value | 365 | 2,028 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 365 | 2,028 | ||||
Agency Bond | Level 2 | ||||||
Amortized Costs | 2,000 | 6,805 | ||||
Gross Unrealized Gains | 1 | 1 | ||||
Gross Unrealized Loss | 0 | 0 | ||||
Estimated Fair Value | 2,001 | 6,806 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 2,001 | 6,806 | ||||
International Government Securities | Level 2 | ||||||
Amortized Costs | 1,000 | 1,000 | ||||
Gross Unrealized Gains | 0 | 1 | ||||
Gross Unrealized Loss | 0 | 0 | ||||
Estimated Fair Value | 1,000 | 1,001 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 1,000 | 1,001 | ||||
Contingent Consideration | Level 3 | ||||||
Amortized Costs | 0 | 0 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Loss | 0 | 0 | ||||
Estimated Fair Value | 148 | 148 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term marketable investments | 0 | 0 | ||||
Liabilities, Fair Value Disclosure | $ 148 | $ 148 |
Fair Value Measurements (Contin
Fair Value Measurements (Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Contingent consideration liabilities [Roll Forward] | ||||
Balance at beginning of period | $ 216 | $ 391 | $ 341 | $ 0 |
Purchase price contingent consideration | 0 | 0 | 0 | 541 |
Fair value adjustment | 107 | 0 | 107 | 0 |
Contingent consideration payments | (175) | (50) | (300) | (200) |
Balance at end of period | $ 148 | $ 341 | $ 148 | $ 341 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Inventory Details | ||
Work-in-process | $ 0 | $ 76 |
Finished goods | 572 | 444 |
Total | $ 572 | $ 520 |
Intangible Assets Schedule Of I
Intangible Assets Schedule Of Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Gross Carrying Amount | $ 28,902 | $ 30,933 |
Accumulated Amortization | (12,176) | (9,469) |
Net Carrying Amount | 16,726 | 21,464 |
Technology | ||
Gross Carrying Amount | 17,402 | 18,640 |
Accumulated Amortization | (6,318) | (4,622) |
Net Carrying Amount | 11,084 | 14,018 |
Customer relationships | ||
Gross Carrying Amount | 9,383 | 9,993 |
Accumulated Amortization | (5,858) | (4,847) |
Net Carrying Amount | 3,525 | 5,146 |
Trade names/domains | ||
Gross Carrying Amount | 2,022 | 2,205 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 2,022 | 2,205 |
In-process R&D | ||
Gross Carrying Amount | 95 | 95 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $ 95 | $ 95 |
Intangible Assets Schedule Of F
Intangible Assets Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Intangible Assets Schedule Of Future Amortization Of Intangibles Details | |
Remaining 2,017 | $ 869 |
2,018 | 3,229 |
2,019 | 2,983 |
2,020 | 2,983 |
2,021 | 2,644 |
Thereafter | 1,901 |
Total | $ 14,609 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Location (Detail) $ in Thousands | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill, beginning balance | $ 47,420 |
Foreign currency translation | (3,093) |
Goodwill, ending balance | 44,327 |
Americas | |
Goodwill, beginning balance | 25,729 |
Foreign currency translation | 0 |
Goodwill, ending balance | 25,729 |
Europe | |
Goodwill, beginning balance | 21,691 |
Foreign currency translation | (3,093) |
Goodwill, ending balance | $ 18,598 |
Software Development Costs (Nar
Software Development Costs (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Other Long-Term Assets | |||
Software costs capitalized during the period | $ 3.9 | $ 1.1 | |
Total capitalized software cost | 1.7 | $ 1.7 | |
Accumulated software cost amortization | 0.4 | 0 | |
Property and Equipment | |||
Software costs capitalized during the period | 0.7 | $ 0.2 | |
Total capitalized software cost | 2.5 | 1.2 | |
Accumulated software cost amortization | $ 0.6 | $ 0.2 |
Commitments and Contingencies37
Commitments and Contingencies (Leases) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments And Contingencies Leases Details | |
Property and equipment under capital lease | $ 2.3 |
Accumulated depreciation related to assets under capital lease | $ 0.8 |
Commitments and Contingencies38
Commitments and Contingencies (Product Warranties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Product Warranties Details | ||||
Balance at beginning of period | $ 333 | $ 325 | $ 326 | $ 339 |
Accruals for warranties | 24 | 88 | 251 | 263 |
Settlements | (26) | (70) | (201) | (223) |
Adjustments | (41) | (21) | (86) | (57) |
Balance at end of period | $ 290 | $ 322 | $ 290 | $ 322 |
Commitments and Contingencies39
Commitments and Contingencies (Service Provider Contracts) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Service Provider Contracts Details | |
Remaining 2,017 | $ 478 |
2,018 | 1,363 |
2,019 | 132 |
2,020 | 8 |
Total minimum payments | $ 1,981 |
Commitments and Contingencies40
Commitments and Contingencies (CustomerSupport Commitments) (Narrative) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments And Contingencies Customersupport Commitments Narrative Details | |
Third party customer support vendor minimum monthly commitment | $ 0.4 |
Third party customer support vendor maximum obligation | $ 2.2 |
Advance termination notice required, days | 150 |
Commitments and Contingencies41
Commitments and Contingencies (State and Municipal Taxes) (Narrative) (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Loss Contingency, Estimate [Abstract] | |
Loss Contingency, Management's Assessment and Process | From time to time, the Company has received inquiries from a number of state and municipal taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. |
Loss Contingency, Estimate of Possible Loss | $ 0.4 |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 0.6 |
Stock-based Compensation Stock-
Stock-based Compensation Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | $ 6,071 | $ 4,663 | $ 15,630 | $ 11,202 |
Tax benefit | 0 | 0 | 0 | 0 |
Stock-based employee compensation expense related to employee stock options and employee stock purchases, net of tax | 6,071 | 4,663 | 15,630 | 11,202 |
Cost of service revenue | ||||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 538 | 346 | 1,338 | 828 |
Cost of product revenue | ||||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 0 | 0 | 0 | 0 |
Research and development | ||||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 1,061 | 850 | 2,811 | 2,107 |
Sales and marketing | ||||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 2,452 | 1,689 | 6,118 | 4,308 |
General and administrative | ||||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | $ 2,020 | $ 1,778 | $ 5,363 | $ 3,959 |
Stock-based Compensation Option
Stock-based Compensation Option Activity (Details) | 9 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock-based Compensation Option Activity Details | |
Balance at beginning of period | shares | 4,793,266 |
Granted | shares | 358,832 |
Exercised | shares | (338,781) |
Cancelled/forfeited | shares | (42,469) |
Balance at end of period | shares | 4,770,848 |
Options, Vested and expected to vest | shares | 4,770,848 |
Options, Exercisable at end of period | shares | 3,265,483 |
Weighted-average exercise price of options outstanding, at beginning of period | $ / shares | $ 6.29 |
Weighted-average exercise price of options granted during period | $ / shares | 14.54 |
Weighted-average exercise price of options exercised during the period | $ / shares | 2.17 |
Weighted-average exercise price of options forfeited, cancelled or expired during the period | $ / shares | 9.87 |
Weighted-average exercise price of options outstanding at end of period | $ / shares | 7.17 |
Options, Vested and Expected to Vest, Weighted Average Exercise Price | $ / shares | 7.17 |
Weighted-Average Exercise Prices, Exercisable at end of period | $ / shares | $ 5.99 |
Stock-based Compensation Stock
Stock-based Compensation Stock Purchase Right Activity (Details) | 9 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock-based Compensation Stock Purchase Right Activity Details | |
Balance at beginning of period | shares | 82,171 |
Granted | shares | 0 |
Vested | shares | (68,426) |
Forfeited | shares | (1,125) |
Balance at end of period | shares | 12,620 |
Weighted-average grant date fair market value, beginning balance | $ / shares | $ 6.30 |
Weighted-average grant date fair market value of restricted stock rights granted | $ / shares | 0 |
Weighted-average grant date fair market value, vested during period | $ / shares | 5.98 |
Weighted-average grant date fair market value, forfeited during period | $ / shares | 6.73 |
Weighted-average grant date fair market value, ending balance | $ / shares | $ 8 |
Weighted-average remaining contractual term, in years, ending balance | 1 year 72 days |
Stock-based Compensation Restri
Stock-based Compensation Restricted Stock Unit Activity (Details) | 9 Months Ended | |
Dec. 31, 2016$ / sharesshares | Mar. 31, 2016 | |
Stock-based Compensation Restricted Stock Unit Activity Details | ||
Balance at beginning of period | shares | 4,544,799 | |
Granted | shares | 2,115,744 | |
Vested | shares | (1,351,014) | |
Forfeited | shares | (284,431) | |
Balance at end of period | shares | 5,025,098 | |
RSU weighted-average remaining contractual term, in years | 1.66 | 1.67 |
Beginning of period, weighted-average grant date fair value | $ / shares | $ 5.09 | |
Granted, weighted-average grant date fair value | $ / shares | 15.07 | |
Vested, weighted-average grant date fair value | $ / shares | 7.99 | |
Forfeited, weighted-average grant date fair value | $ / shares | 9.35 | |
End of period, weighted-average grant date fair value | $ / shares | $ 10.99 |
Stock-based Compenstaion Stock
Stock-based Compenstaion Stock Options Outstanding And Exercisable (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2016 | |
Options Outstanding, Number of Shares | 4,770,848 | 4,793,266 |
Options Outstanding, Weighted-Average Exercise Price Per Share | $ 7.17 | $ 6.29 |
Options Exercisable, Number of Shares | 3,265,483 | |
Options Exercisable, Weighted-Average Exercise Price Per Share | $ 5.99 | |
$0.55 - $4.26 | ||
Range of Exercise Prices, Minimum | 0.55 | |
Range of Exercise Prices, Maximum | $ 4.26 | |
Options Outstanding, Number of Shares | 991,768 | |
Options Outstanding, Weighted-Average Exercise Price Per Share | $ 1.43 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 1 year 216 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 12,760,718 | |
Options Exercisable, Number of Shares | 991,768 | |
Options Exercisable, Weighted-Average Exercise Price Per Share | $ 1.43 | |
Options Exercisable, Aggregate Intrinsic Value | $ 12,760,718 | |
$4.32 - $6.86 | ||
Range of Exercise Prices, Minimum | $ 4.32 | |
Range of Exercise Prices, Maximum | $ 6.86 | |
Options Outstanding, Number of Shares | 1,288,863 | |
Options Outstanding, Weighted-Average Exercise Price Per Share | $ 6.26 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 6 years 252 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 10,368,791 | |
Options Exercisable, Number of Shares | 969,263 | |
Options Exercisable, Weighted-Average Exercise Price Per Share | $ 6.06 | |
Options Exercisable, Aggregate Intrinsic Value | $ 7,990,967 | |
$7.52 - $9.21 | ||
Range of Exercise Prices, Minimum | $ 7.52 | |
Range of Exercise Prices, Maximum | $ 9.21 | |
Options Outstanding, Number of Shares | 1,047,938 | |
Options Outstanding, Weighted-Average Exercise Price Per Share | $ 8.38 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 8 years 36 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 6,207,461 | |
Options Exercisable, Number of Shares | 481,286 | |
Options Exercisable, Weighted-Average Exercise Price Per Share | $ 8.44 | |
Options Exercisable, Aggregate Intrinsic Value | $ 2,821,376 | |
$9.35 - $10.97 | ||
Range of Exercise Prices, Minimum | $ 9.35 | |
Range of Exercise Prices, Maximum | $ 10.97 | |
Options Outstanding, Number of Shares | 1,017,107 | |
Options Outstanding, Weighted-Average Exercise Price Per Share | $ 9.86 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 6 years 324 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 4,517,121 | |
Options Exercisable, Number of Shares | 759,962 | |
Options Exercisable, Weighted-Average Exercise Price Per Share | $ 9.80 | |
Options Exercisable, Aggregate Intrinsic Value | $ 3,418,142 | |
$11.26 - $15.40 | ||
Range of Exercise Prices, Minimum | $ 11.26 | |
Range of Exercise Prices, Maximum | $ 15.40 | |
Options Outstanding, Number of Shares | 425,172 | |
Options Outstanding, Weighted-Average Exercise Price Per Share | $ 13.95 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 9 years 72 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 389,388 | |
Options Exercisable, Number of Shares | 63,204 | |
Options Exercisable, Weighted-Average Exercise Price Per Share | $ 11.96 | |
Options Exercisable, Aggregate Intrinsic Value | $ 156,748 | |
$0.55 - $15.40 | ||
Range of Exercise Prices, Minimum | $ 0.55 | |
Range of Exercise Prices, Maximum | $ 15.40 | |
Options Outstanding, Number of Shares | 4,770,848 | |
Options Outstanding, Aggregate Intrinsic Value | $ 34,243,479 | |
Options Exercisable, Number of Shares | 3,265,483 | |
Options Exercisable, Aggregate Intrinsic Value | $ 27,147,951 |
Stock-based Compenstaion Assump
Stock-based Compenstaion Assumptions Used In Black-Scholes Model (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Option Grants and Stock Purchase Rights | ||||
Expected volatility | 42.00% | 51.00% | 44.00% | 53.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.20% | 1.75% | 1.17% | 1.60% |
Weighted average expected option term, in years | 4 years 180 days | 5 years 90 days | 4 years 248 days | 5 years 158 days |
Weighted average fair value of options granted, per share | $ 5.54 | $ 4.92 | $ 5.47 | $ 4.12 |
Employee Stock Purchase Plan Rights | ||||
Expected volatility | 0.00% | 0.00% | 40.00% | 45.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 0.00% | 0.00% | 0.45% | 0.30% |
Weighted average expected option term, in years | 0 years | 0 years | 274 days | 9 months |
Weighted average fair value of options granted, per share | $ 0 | $ 0 | $ 4.04 | $ 2.78 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Stock-Based Awards | |
Unamortized stock-based compensation expense related to unvested stock awards | $ 49.7 |
Weighted average period of recognition for unrecognized compensation costs (in years) | 2 years 43 days |
Acquisition-related | |
Unamortized stock-based compensation expense related to unvested stock awards | $ 1.5 |
Weighted average period of recognition for unrecognized compensation costs (in years) | 2 years 151 days |
Employee Stock Purchase Plan | |
Unamortized stock-based compensation expense related to unvested stock awards | $ 0.2 |
Weighted average period of recognition for unrecognized compensation costs (in years) | 72 days |
Stock Repurchases (Narrative) (
Stock Repurchases (Narrative) (Detail) - USD ($) | 9 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2016 | ||
February 2,015 | |||
Stock repurchased and retired during period, shares | 0 | ||
Stock repurchased and retired during period, value | [1] | $ 0 | |
Stock repurchased, weighted average price per share | $ 0 | ||
Stock repurchase program, authorized amount | $ 20,000,000 | ||
Stock repurchase program expiration date | Oct. 20, 2016 | ||
October 2,015 | |||
Stock repurchase program, authorized amount | $ 15,000,000 | ||
[1] | Amount excludes commission fees. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2016 | |
Unrecognized tax benefits | $ 2.9 | $ 2.9 |
Federal | ||
Tax years open for examination | 2,013 | |
State | ||
Tax years open for examination | 2,013 | |
Foreign | ||
Tax years open for examination | 2,011 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | ||||
Net loss available to common stockholders | $ (1,325) | $ (1,680) | $ (1,826) | $ (4,044) |
Denominator: | ||||
Common shares used in basic and diluted calculation | 90,774 | 88,289 | 90,062 | 88,812 |
Net loss per share: | ||||
Basic and diluted net loss per share | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.05) |
Net Income (Loss) Per Share (Op
Net Income (Loss) Per Share (Options and Rights Excluded) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Anti-dilutive shares | 720 | 1,232 | 896 | 2,594 |
Employee stock options | ||||
Anti-dilutive shares | 368 | 1,232 | 243 | 2,539 |
Stock purchase rights | ||||
Anti-dilutive shares | 352 | 0 | 653 | 55 |
Segment Reporting Revenue and P
Segment Reporting Revenue and Property and Equipment by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Geographic Areas, Revenue from External Customers | 100% | 100% | 100% | 100% | |
Number of customers at more than 10% of revenue | 0 | 0 | 0 | 0 | |
Geographic Areas, Long-Lived Assets | $ 15,224 | $ 15,224 | $ 12,375 | ||
Americas | |||||
Geographic Areas, Revenue from External Customers | 90% | 87% | 89% | 87% | |
Geographic Areas, Long-Lived Assets | $ 10,973 | $ 10,973 | 9,165 | ||
Europe | |||||
Geographic Areas, Revenue from External Customers | 10% | 134% | 10% | 12% | |
Geographic Areas, Long-Lived Assets | $ 4,123 | $ 4,123 | 2,642 | ||
Asia-Pacific | |||||
Geographic Areas, Revenue from External Customers | 0% | 0% | 1% | 1% | |
Geographic Areas, Long-Lived Assets | $ 128 | $ 128 | $ 568 |
Operating Segment (Details)
Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues | $ 63,676 | $ 53,168 | $ 186,900 | $ 152,003 |
Net income (loss) | (1,325) | (1,680) | (1,826) | (4,044) |
Americas | ||||
Net revenues | 57,654 | 46,503 | 167,686 | 134,177 |
Net income (loss) | 831 | 467 | 4,341 | 733 |
Europe | ||||
Net revenues | 6,022 | 6,665 | 19,214 | 17,826 |
Net income (loss) | $ (2,156) | $ (2,147) | $ (6,167) | $ (4,777) |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2017USD ($) | |
LeChat | Subsequent Event | |
Subsequent Event [Line Items] | |
Approximate purchase consideration | $ 3 |