Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Jul. 26, 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 | Jun. 30, 2017 | |
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 | 91,828,699 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 53,175 | $ 41,030 |
Short-term investments | 124,630 | 133,959 |
Accounts receivable, net | 14,478 | 14,264 |
Other current assets | 9,818 | 8,101 |
Total current assets | 202,101 | 197,354 |
Property and equipment, net | 26,973 | 24,061 |
Intangible assets, net | 15,950 | 17,038 |
Goodwill | 46,926 | 46,136 |
Non-current deferred income taxes | 67,764 | 48,859 |
Other assets | 432 | 407 |
Total assets | 360,146 | 333,855 |
Current liabilities: | ||
Accounts payable | 20,512 | 18,631 |
Accrued compensation | 12,203 | 11,508 |
Accrued taxes | 6,730 | 5,354 |
Deferred revenue | 2,116 | 2,144 |
Other accrued liabilities | 4,864 | 5,707 |
Total current liabilities | 46,425 | 43,344 |
Non-current liabilities | 1,904 | 1,910 |
Total liabilities | 48,329 | 45,254 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Common stock | 91 | 91 |
Additional paid-in capital | 418,685 | 412,762 |
Accumulated other comprehensive loss | (7,824) | (9,642) |
Accumulated deficit | (99,135) | (114,610) |
Total stockholders' equity | 311,817 | 288,601 |
Total liabilities and stockholders' equity | $ 360,146 | $ 333,855 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidated Statements Of Operations | ||
Service revenue | $ 65,091 | $ 55,296 |
Product revenue | 4,007 | 4,745 |
Total revenue | 69,098 | 60,041 |
Operating expenses: | ||
Cost of service revenue | 11,662 | 10,235 |
Cost of product revenue | 4,884 | 5,505 |
Research and development | 7,943 | 6,710 |
Sales and marketing | 41,110 | 31,691 |
General and administrative | 8,956 | 6,801 |
Total operating expenses | 74,555 | 60,942 |
Loss from operations | (5,457) | (901) |
Other income, net | 2,052 | 410 |
Loss before provision (benefit) for income taxes | (3,405) | (491) |
Provision (benefit) for income taxes | (1,236) | 37 |
Net loss | $ (2,169) | $ (528) |
Net loss per share: | ||
Basic | $ (0.02) | $ (0.01) |
Diluted | $ (0.02) | $ (0.01) |
Weighted average number of shares: | ||
Basic | 91,643 | 89,434 |
Diluted | 91,643 | 89,434 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (2,169) | $ (528) |
Other comprehensive income (loss), net of tax | ||
Unrealized gain on investments in securities | 27 | 146 |
Foreign currency translation adjustment | 1,791 | (2,784) |
Comprehensive loss | $ (351) | $ (3,166) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (2,169) | $ (528) |
Adjustments to reconcile net loss to net cash provided by operating activites: | ||
Depreciation | 1,897 | 1,471 |
Amortization of intangible assets | 1,522 | 960 |
Amortization of capitalized software | 308 | 146 |
Stock-based compensation | 6,351 | 5,051 |
Deferred income tax benefit | (1,492) | (44) |
Gain on escrow settlement | (1,393) | 0 |
Other | 101 | 290 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (147) | (1,043) |
Other current and noncurrent assets | (1,623) | (575) |
Accounts payable and accruals | 2,889 | 597 |
Deferred revenue | (61) | 211 |
Net cash provided by operating activities | 6,183 | 6,536 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,293) | (1,604) |
Proceeds from escrow settlement | 1,393 | 0 |
Cost of capitalized software | (2,122) | (707) |
Proceeds from maturity of investments | 25,450 | 17,025 |
Sales of investments - available for sale | 5,252 | 15,324 |
Purchase of investments - available for sale | (21,327) | (42,625) |
Net cash provided by (used) in investing activities | 6,353 | (12,587) |
Cash flows from financing activities: | ||
Capital lease payments | (351) | (182) |
Payment of contingent consideration and escrow | 0 | (200) |
Repurchase and withholding of common stock | (1,054) | (629) |
Proceeds from issuance of common stock under employee stock plans | 720 | 1,039 |
Net cash (used in) provided by financing activities | (685) | 28 |
Effect of exchange rate changes on cash | 294 | (87) |
Net increase (decrease) in cash and cash equivalents | 12,145 | (6,110) |
Cash and cash equivalents at the beginning of the period | 41,030 | 33,576 |
Cash and cash equivalents at the end of the period | 53,175 | 27,466 |
Supplemental cash flow information | ||
Income taxes paid | 69 | 87 |
Interest paid | 7 | 7 |
Property and equipment acquired under capital leases | $ 765 | $ 0 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Note 1 | 3 Months Ended |
Jun. 30, 2017 | |
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, 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 2018 refers to the fiscal year ended March 31, 2018). 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, 2017. 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, liabilities, 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, 2017 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, 2017 and notes thereto included in the Company's fiscal 2017 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 software development costs capitalized in accordance with ASC 350-40, Internal Use Software 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. ACQUISITIONS In May 2015, the Company entered into a share purchase agreement with the shareholders of DXI Limited for a purchase price of $22.5 million, consisting of $18.7 million in cash paid to the DXI shareholders at closing and $3.8 million in cash deposited into escrow to be held for two years as security against indemnity claims made by the Company after the closing date. During the fiscal quarter ended June 30, 2017, $1.4 million of the cash held in escrow was returned to the Company and the escrow fund was closed. Since the purchase accounting for the acquisition was finalized by March 31, 2016, the proceeds are realized as a gain and reported as other income in the consolidated statements of operations. 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, 2017 filed with the SEC on May 30, 2017, and there have been no changes to the Company's significant accounting policies during the three months ended June 30, 2017, except as described in the "Recently Adopted Accounting Pronouncements" section below. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Stock-based Payment Accounting In recording stock-based compensation expense, the ASU allows companies to make a policy election as to whether they will include an estimate of awards expected to be forfeited or whether they will account for forfeitures as they occur. The Company has elected to continue to include an estimate of forfeitures in its stock-based compensation expense. Therefore, there was no impact to the Company's consolidated financial statements. The ASU requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the consolidated statements of cash flows. Previously, the Company already included these cash flows in financing activities. Therefore, the adoption of this provision had no impact. The ASU requires previously unrecognized excess tax benefits from stock-based compensation to be recognized on a modified retrospective basis. Unrecognized tax benefits result when a deduction for stock-based compensation does not reduce taxes payable. The impact to deferred tax assets is disclosed in Note 7. The ASU also requires excess tax benefits to be presented as an operating activity on the statement of cash flows rather than as a financing activity on either a retrospective or prospective basis. The Company has elected to apply this provision of the standard on a prospective basis. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers The Company is in the initial stages of the assessment of the impact of the new standard on the Company's accounting policies, processes and system requirements. The Company has assigned internal resources and engaged third-party service providers to assist with the assessment and implementation. The Company currently believes the most significant impact relates to: The allocation of consideration in a contract between product and service performance obligations; and The determination of performance obligations for professional services. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting. Compensation-Stock Compensation |
FAIR VALUE MEASUREMENTS - Note
FAIR VALUE MEASUREMENTS - Note 2 | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 Costs Gain Loss Fair Value Equivalents Investments Cash $ 31,482 $ - $ - $ 31,482 $ 31,482 $ - Level 1: Money market funds 21,693 - - 21,693 21,693 - Mutual funds 2,000 - (185) 1,815 - 1,815 Subtotal 55,175 - (185) 54,990 53,175 1,815 Level 2: Commercial paper 7,894 - - 7,894 - 7,894 Corporate debt 86,835 63 (40) 86,858 - 86,858 Asset backed securities 28,078 2 (17) 28,063 - 28,063 Subtotal 122,807 65 (57) 122,815 - 122,815 Total assets $ 177,982 $ 65 $ (242) $ 177,805 $ 53,175 $ 124,630 Level 3: Contingent consideration $ - $ - $ - $ 148 $ - $ - Total liabilities $ - $ - $ - $ 148 $ - $ - Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of March 31, 2017 Costs Gain Loss Fair Value Equivalents Investments Cash $ 29,122 $ - $ - $ 29,122 $ 29,122 $ - Level 1: Money market funds 11,908 - - 11,908 11,908 - Mutual funds 2,000 - (194) 1,806 - 1,806 Subtotal 43,030 - (194) 42,836 41,030 1,806 Level 2: Commercial paper 19,144 8 - 19,152 - 19,152 Corporate debt 83,995 61 (58) 83,998 - 83,998 Asset backed securities 26,906 4 (22) 26,888 - 26,888 Mortgage backed securities 116 - (1) 115 - 115 Agency bond 2,000 - - 2,000 - 2,000 Subtotal 132,161 73 (81) 132,153 - 132,153 Total assets $ 175,191 $ 73 $ (275) $ 174,989 $ 41,030 $ 133,959 Level 3: Contingent consideration $ - $ - $ - $ 148 $ - $ - Total liabilities $ - $ - $ - $ 148 $ - $ - Contractual maturities of investments as of June 30, 2017 are set forth below (in thousands): Estimated Fair Value Due within one year $ 63,526 Due after one year 61,104 Total $ 124,630 Contingent Consideration and Escrow Liability The Company's contingent consideration 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. The remaining liability of $0.1 million was settled and paid during the Company's second quarter of fiscal year 2018. 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. |
INTANGIBLE ASSETS - Note 3
INTANGIBLE ASSETS - Note 3 | 3 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS - Note 3 | 3. INTANGIBLE ASSETS The carrying value of intangible assets consisted of the following (in thousands): June 30, 2017 March 31, 2017 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Technology $ 18,958 $ (7,711) $ 11,247 $ 18,685 $ (7,010) $ 11,675 Customer relationships 9,535 (6,523) 3,012 9,419 (6,187) 3,232 Trade names/domains 2,080 (389) 1,691 2,036 - 2,036 In-process research and development 95 (95) - 95 - 95 Total acquired identifiable intangible assets $ 30,668 $ (14,718) $ 15,950 $ 30,235 $ (13,197) $ 17,038 At June 30, 2017, 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 2018 $ 3,619 2019 4,512 2020 3,096 2021 2,740 2022 1,756 Thereafter 227 Total $ 15,950 For the quarter ended June 30, 2017, the Company determined that the tradename/domains no longer have an indefinite life, and has assigned those assets an estimated life of two years. Amortization expenses associated with tradename/domains are included in selling and marketing expenses in the consolidated statements of operations. |
GOODWILL - Note 4
GOODWILL - Note 4 | 3 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL - Note 4 | 4. 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, 2017 $ 27,309 $ 18,827 $ 46,136 Foreign currency translation - 790 790 Balance as of June 30, 2017 $ 27,309 $ 19,617 $ 46,926 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Note 5 | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
COMMITMENTS AND CONTINGENCIES - Note 5 | 5. COMMITMENTS AND CONTINGENCIES Facility and Equipment Leases The Company leases its headquarters facility in San Jose, California and also leases office space under non-cancelable operating leases in various domestic and international locations. Future minimum annual lease payments were as follows (in thousands): Amount Remaining 2018 $ 3,792 2019 5,704 2020 5,015 2021 2,545 2022 2,243 Thereafter 4,976 Total $ 24,275 The Company has entered into a series of noncancelable capital lease agreements for data center and office equipment bearing interest at various rates. Other Commitments, Indemnifications and Contingencies There were no material changes in our other commitments under contractual obligations, indemnification and other contingencies since March 31, 2017. 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 |
STOCK-BASED COMPENSATION - Note
STOCK-BASED COMPENSATION - Note 6 | 3 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
STOCK-BASED COMPENSATION - Note 6 | 6. STOCK-BASED COMPENSATION The following table summarizes information pertaining to the stock-based compensation expense from stock options and stock awards (in thousands, except grant-date fair value and recognition period): Three Months Ended June 30, 2017 2016 Cost of service revenue $ 391 $ 360 Cost of product revenue - - Research and development 1,337 887 Sales and marketing 2,647 1,915 General and administrative 1,976 1,889 Total $ 6,351 $ 5,051 Three Months Ended June 30, 2017 2016 Stock options outstanding at the beginning of the period: 4,462 4,793 Options granted 35 54 Options exercised (101) (192) Options canceled and forfeited (48) - Options outstanding at the end of the period: 4,348 4,655 Weighted-average fair value of grants during the period $ 4.93 $ 5.45 Total intrinsic value of options exercised during the period $ 792 $ 2,018 Weighted-average remaining recognition period at period-end (in years) 1.92 2.22 Unvested stock awards outstanding at the beginning of the period: 4,950 4,545 Stock awards granted 370 301 Stock awards vested (189) (312) Stock awards canceled and forfeited (128) (101) Unvested stock awards outstanding at the end of the period: 5,003 4,433 Weighted-average fair value of grants during the period $ 13.50 $ 11.53 Weighted-average remaining recognition period at period-end (in years) 2.45 2.49 Total unrecognized compensation expense at period-end $ 46,171 $ 32,920 Stock Repurchases In May 2017, the Company's board of directors authorized the Company to purchase $25.0 million of its common stock from time to time under the 2017 Repurchase Plan (the "2017 Plan"). The 2017 Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the board of directors. There were no stock repurchases under the 2017 Plan for the period ended June 30, 2017. |
INCOME TAXES - Note 7
INCOME TAXES - Note 7 | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
INCOME TAXES - Note 7 | 7. INCOME TAXES The Company's effective tax rate was 36.3% and negative 7.5% for the three months ended June 30, 2017 and 2016, respectively. The effective tax rate is calculated by dividing the income tax provision by net income before income tax expense. The difference in the effective tax rate and the U.S. federal statutory rate of 34% in both periods was due primarily to the change in pretax profitability, geographic mix of profits and losses, and adoption of new accounting guidance effective April 1, 2017. As described in Note 1, the Company adopted the updated accounting standard for share-based payment accounting in the three months ended June 30, 2017. As a result, the Company recorded deferred tax assets of approximately $17.6 million with a corresponding increase to retained earnings related to previously unrecognized excess tax benefits. For the three months ended June 30, 2017, the Company recognized approximately $0.4 million of excess tax benefits within the provision for income taxes. Additionally, the Company elected to prospectively apply the change in presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Accordingly, prior period classification of cash flows related to excess tax benefits were not adjusted. |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - Note 8 | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
NET INCOME (LOSS) PER SHARE - Note 8 | 8. 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 income (loss) per share (in thousands, except share and per share data): Three Months Ended June 30, 2017 2016 Numerator: Net loss available to common stockholders $ (2,169) $ (528) Denominator: Common shares 91,643 89,434 Denominator for basic calculation 91,643 89,434 Denominator for diluted calculation 91,643 89,434 Net loss per share Basic $ (0.02) $ (0.01) Diluted $ (0.02) $ (0.01) The following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands): Three Months Ended June 30, 2017 2016 Stock options 4,348 4,655 Stock awards 5,003 4,433 Total anti-dilutive shares 9,351 9,088 |
SEGMENT REPORTING - Note 9
SEGMENT REPORTING - Note 9 | 3 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING - Note 9 | 9. SEGMENT REPORTING ASC 280, Segment Reporting The Company's CODMs evaluate the performance of its operating segments based on revenues and net income. The Company does not allocate research and development, sales and marketing, general and administrative, amortization expense, stock-based compensation expense, and commitment and contingencies for each segment as management does not consider this information in its evaluation of the performance of each operating segment. Revenues are attributed to each segment based on the ordering location of the customer or ship to location. The following tables set forth the segment and geographic information for each period (in thousands): Revenue for the Three Months Ended June 30, 2017 2016 Americas (principally US) $ 62,405 $ 53,398 Europe (principally UK) 6,693 6,643 $ 69,098 $ 60,041 Revenue is based upon the destination of shipments and the customers' service address. For the three months ended June 30, 2017 and 2016, intersegment revenues of approximately $2.5 million and $1.1 million, respectively, were eliminated in consolidation, and have been excluded from the table above. Depreciation and Amortization for the Three Months Ended June 30, 2017 2016 Americas (principally US) $ 2,533 $ 1,618 Europe (principally UK) 1,194 959 $ 3,727 $ 2,577 Net Income (Loss) for the Three Months Ended June 30, 2017 2016 Americas (principally US) $ 409 $ 1,466 Europe (principally UK) (2,578) (1,994) $ (2,169) $ (528) June 30, 2017 March 31, 2017 Total Property and Total Property and Assets Equipment, net Assets Equipment, net Americas (principally US) $ 309,212 $ 20,519 $ 284,011 $ 11,803 Europe (principally UK) 50,934 6,454 49,844 4,581 $ 360,146 $ 26,973 $ 333,855 $ 16,384 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
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 2018 refers to the fiscal year ended March 31, 2018). |
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, 2017. 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 Presentation | The March 31, 2017 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, 2017 and notes thereto included in the Company's fiscal 2017 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, 2017 filed with the SEC on May 30, 2017, and there have been no changes to the Company's significant accounting policies during the three months ended June 30, 2017, except as described in the "Recently Adopted Accounting Pronouncements" section below. |
Reclassification | RECLASSIFICATION Certain software development costs capitalized in accordance with ASC 350-40, Internal Use Software 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. |
Acquisitions | ACQUISITIONS In May 2015, the Company entered into a share purchase agreement with the shareholders of DXI Limited for a purchase price of $22.5 million, consisting of $18.7 million in cash paid to the DXI shareholders at closing and $3.8 million in cash deposited into escrow to be held for two years as security against indemnity claims made by the Company after the closing date. During the fiscal quarter ended June 30, 2017, $1.4 million of the cash held in escrow was returned to the Company and the escrow fund was closed. Since the purchase accounting for the acquisition was finalized by March 31, 2016, the proceeds are realized as a gain and reported as other income in the consolidated statements of operations. |
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 March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Stock-based Payment Accounting In recording stock-based compensation expense, the ASU allows companies to make a policy election as to whether they will include an estimate of awards expected to be forfeited or whether they will account for forfeitures as they occur. The Company has elected to continue to include an estimate of forfeitures in its stock-based compensation expense. Therefore, there was no impact to the Company's consolidated financial statements. The ASU requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the consolidated statements of cash flows. Previously, the Company already included these cash flows in financing activities. Therefore, the adoption of this provision had no impact. The ASU requires previously unrecognized excess tax benefits from stock-based compensation to be recognized on a modified retrospective basis. Unrecognized tax benefits result when a deduction for stock-based compensation does not reduce taxes payable. The impact to deferred tax assets is disclosed in Note 7. Th ASU also requires excess tax benefits to be presented as an operating activity on the statement of cash flows rather than as a financing activity on either a retrospective or prospective basis. The Company has elected to apply this provision of the standard on a prospective basis. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers The Company is in the initial stages of the assessment of the impact of the new standard on the Company's accounting policies, processes and system requirements. The Company has assigned internal resources and engaged third-party service providers to assist with the assessment and implementation. The Company currently believes the most significant impact relates to: The allocation of consideration in a contract between product and service performance obligations; and The determination of performance obligations for professional services. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting. Compensation-Stock Compensation |
Segment Reporting | SEGMENT REPORTING ASC 280, Segment Reporting The Company's CODMs evaluate the performance of its operating segments based on revenues and net income. The Company does not allocate research and development, sales and marketing, general and administrative, amortization expense, stock-based compensation expense, and commitment and contingencies for each segment as management does not consider this information in its evaluation of the performance of each operating segment. Revenues are attributed to each segment based on the ordering location of the customer or ship to location. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 Costs Gain Loss Fair Value Equivalents Investments Cash $ 31,482 $ - $ - $ 31,482 $ 31,482 $ - Level 1: Money market funds 21,693 - - 21,693 21,693 - Mutual funds 2,000 - (185) 1,815 - 1,815 Subtotal 55,175 - (185) 54,990 53,175 1,815 Level 2: Commercial paper 7,894 - - 7,894 - 7,894 Corporate debt 86,835 63 (40) 86,858 - 86,858 Asset backed securities 28,078 2 (17) 28,063 - 28,063 Subtotal 122,807 65 (57) 122,815 - 122,815 Total assets $ 177,982 $ 65 $ (242) $ 177,805 $ 53,175 $ 124,630 Level 3: Contingent consideration $ - $ - $ - $ 148 $ - $ - Total liabilities $ - $ - $ - $ 148 $ - $ - Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of March 31, 2017 Costs Gain Loss Fair Value Equivalents Investments Cash $ 29,122 $ - $ - $ 29,122 $ 29,122 $ - Level 1: Money market funds 11,908 - - 11,908 11,908 - Mutual funds 2,000 - (194) 1,806 - 1,806 Subtotal 43,030 - (194) 42,836 41,030 1,806 Level 2: Commercial paper 19,144 8 - 19,152 - 19,152 Corporate debt 83,995 61 (58) 83,998 - 83,998 Asset backed securities 26,906 4 (22) 26,888 - 26,888 Mortgage backed securities 116 - (1) 115 - 115 Agency bond 2,000 - - 2,000 - 2,000 Subtotal 132,161 73 (81) 132,153 - 132,153 Total assets $ 175,191 $ 73 $ (275) $ 174,989 $ 41,030 $ 133,959 Level 3: Contingent consideration $ - $ - $ - $ 148 $ - $ - Total liabilities $ - $ - $ - $ 148 $ - $ - Contractual maturities of investments as of June 30, 2017 are set forth below (in thousands): Estimated Fair Value Due within one year $ 63,526 Due after one year 61,104 Total $ 124,630 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Intangible Assets Tables | |
Carrying values of intangible assets | The carrying value of intangible assets consisted of the following (in thousands): June 30, 2017 March 31, 2017 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Technology $ 18,958 $ (7,711) $ 11,247 $ 18,685 $ (7,010) $ 11,675 Customer relationships 9,535 (6,523) 3,012 9,419 (6,187) 3,232 Trade names/domains 2,080 (389) 1,691 2,036 - 2,036 In-process research and development 95 (95) - 95 - 95 Total acquired identifiable intangible assets $ 30,668 $ (14,718) $ 15,950 $ 30,235 $ (13,197) $ 17,038 |
Finite-lived intangible assets - future amortization expense | At June 30, 2017, 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 2018 $ 3,619 2019 4,512 2020 3,096 2021 2,740 2022 1,756 Thereafter 227 Total $ 15,950 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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, 2017 $ 27,309 $ 18,827 $ 46,136 Foreign currency translation - 790 790 Balance as of June 30, 2017 $ 27,309 $ 19,617 $ 46,926 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Tables | |
Future minimum annual operating lease payments | The Company leases its headquarters facility in San Jose, California and also leases office space under non-cancelable operating leases in various domestic and international locations. Future minimum annual lease payments were as follows (in thousands): Amount Remaining 2018 $ 3,792 2019 5,704 2020 5,015 2021 2,545 2022 2,243 Thereafter 4,976 Total $ 24,275 |
Distribution of Stock-Based Com
Distribution of Stock-Based Compensation Plan Expense (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 2016 Cost of service revenue $ 391 $ 360 Cost of product revenue - - Research and development 1,337 887 Sales and marketing 2,647 1,915 General and administrative 1,976 1,889 Total $ 6,351 $ 5,051 |
Stock-Based Compensation And Em
Stock-Based Compensation And Employee Purchase Plan (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 three months ended June 30, 2017, is summarized as follows: Three Months Ended June 30, 2017 2016 Stock options outstanding at the beginning of the period: 4,462 4,793 Options granted 35 54 Options exercised (101) (192) Options canceled and forfeited (48) - Options outstanding at the end of the period: 4,348 4,655 Weighted-average fair value of grants during the period $ 4.93 $ 5.45 Total intrinsic value of options exercised during the period $ 792 $ 2,018 Weighted-average remaining recognition period at period-end (in years) 1.92 2.22 |
Stock Awards | |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | Three Months Ended June 30, 2017 2016 Unvested stock awards outstanding at the beginning of the period: 4,950 4,545 Stock awards granted 370 301 Stock awards vested (189) (312) Stock awards canceled and forfeited (128) (101) Unvested stock awards outstanding at the end of the period: 5,003 4,433 Weighted-average fair value of grants during the period $ 13.50 $ 11.53 Weighted-average remaining recognition period at period-end (in years) 2.45 2.49 Total unrecognized compensation expense at period-end $ 46,171 $ 32,920 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 income (loss) per share (in thousands, except share and per share data): Three Months Ended June 30, 2017 2016 Numerator: Net loss available to common stockholders $ (2,169) $ (528) Denominator: Common shares 91,643 89,434 Denominator for basic calculation 91,643 89,434 Denominator for diluted calculation 91,643 89,434 Net loss per share Basic $ (0.02) $ (0.01) Diluted $ (0.02) $ (0.01) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands): Three Months Ended June 30, 2017 2016 Stock options 4,348 4,655 Stock awards 5,003 4,433 Total anti-dilutive shares 9,351 9,088 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Segment Information Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables set forth the segment and geographic information for each period (in thousands): Revenue for the Three Months Ended June 30, 2017 2016 Americas (principally US) $ 62,405 $ 53,398 Europe (principally UK) 6,693 6,643 $ 69,098 $ 60,041 June 30, 2017 March 31, 2017 Total Property and Total Property and Assets Equipment, net Assets Equipment, net Americas (principally US) $ 309,212 $ 20,519 $ 284,011 $ 11,803 Europe (principally UK) 50,934 6,454 49,844 4,581 $ 360,146 $ 26,973 $ 333,855 $ 16,384 |
Schedule of Segment Reporting Information, by Segment | Depreciation and Amortization for the Three Months Ended June 30, 2017 2016 Americas (principally US) $ 2,533 $ 1,618 Europe (principally UK) 1,194 959 $ 3,727 $ 2,577 Net Income (Loss) for the Three Months Ended June 30, 2017 2016 Americas (principally US) $ 409 $ 1,466 Europe (principally UK) (2,578) (1,994) $ (2,169) $ (528) |
Description of the Business (Na
Description of the Business (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | |
Description Of Business Narrative Details | ||
Fiscal Year End Date | --03-31 | |
Assets, net of accumulated amortization reclassified | $ 7.7 | |
Net captialized software development costs | $ 12.5 | $ 10.4 |
Description of the Business (Ac
Description of the Business (Acquisitions Narrative) (Details) | 1 Months Ended |
May 31, 2015 | |
Description Of Business Acquisitions Narrative Details | |
Effective date of purchase agreement | May 26, 2015 |
Business Acquisition, Description of Acquired Entity | In May 2015, the Company entered into a share purchase agreement with the shareholders of DXI Limited for a purchase price of $22.5 million, consisting of $18.7 million in cash paid to the DXI shareholders at closing and $3.8 million in cash deposited into escrow to be held for two years as security against indemnity claims made by the Company after the closing date. During the fiscal quarter ended June 30, 2017, $1.4 million of the cash held in escrow was returned to the Company and the escrow fund was closed. Since the purchase accounting for the acquisition was finalized by March 31, 2016, the proceeds are realized as a gain and reported as other income in the consolidated statements of operations. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 |
Amortized Costs | $ 177,982 | $ 175,191 | ||
Gross Unrealized Gains | 65 | 73 | ||
Gross Unrealized Loss | (242) | (275) | ||
Estimated Fair Value | 177,805 | 174,989 | ||
Cash and cash equivalents | 53,175 | 41,030 | $ 27,466 | $ 33,576 |
Short-term marketable investments | 124,630 | 133,959 | ||
Liabilities, Fair Value Disclosure | 148 | 148 | ||
Aavailable-for-sale investments due within one year | 63,526 | |||
Aavailable-for-sale investments due after one year | 61,104 | |||
Level 1 | ||||
Amortized Costs | 55,175 | 43,030 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Loss | (185) | (194) | ||
Estimated Fair Value | 54,990 | 42,836 | ||
Cash and cash equivalents | 53,175 | 41,030 | ||
Short-term marketable investments | 1,815 | 1,806 | ||
Level 2 | ||||
Amortized Costs | 122,807 | 132,161 | ||
Gross Unrealized Gains | 65 | 73 | ||
Gross Unrealized Loss | (57) | (81) | ||
Estimated Fair Value | 122,815 | 132,153 | ||
Cash and cash equivalents | 0 | 0 | ||
Short-term marketable investments | 122,815 | 132,153 | ||
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 | 31,482 | 29,122 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Loss | 0 | 0 | ||
Estimated Fair Value | 31,482 | 29,122 | ||
Cash and cash equivalents | 31,482 | 29,122 | ||
Short-term marketable investments | 0 | 0 | ||
Money Market Funds | Level 1 | ||||
Amortized Costs | 21,693 | 11,908 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Loss | 0 | 0 | ||
Estimated Fair Value | 21,693 | 11,908 | ||
Cash and cash equivalents | 21,693 | 11,908 | ||
Short-term marketable investments | 0 | 0 | ||
Mutual Funds | Level 1 | ||||
Amortized Costs | 2,000 | 2,000 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Loss | (185) | (194) | ||
Estimated Fair Value | 1,815 | 1,806 | ||
Cash and cash equivalents | 0 | 0 | ||
Short-term marketable investments | 1,815 | 1,806 | ||
Commercial Paper | Level 2 | ||||
Amortized Costs | 7,894 | 19,144 | ||
Gross Unrealized Gains | 0 | 8 | ||
Gross Unrealized Loss | 0 | 0 | ||
Estimated Fair Value | 7,894 | 19,152 | ||
Cash and cash equivalents | 0 | 0 | ||
Short-term marketable investments | 7,894 | 19,152 | ||
Corporate Debt | Level 2 | ||||
Amortized Costs | 86,835 | 83,995 | ||
Gross Unrealized Gains | 63 | 61 | ||
Gross Unrealized Loss | (40) | (58) | ||
Estimated Fair Value | 86,858 | 83,998 | ||
Cash and cash equivalents | 0 | 0 | ||
Short-term marketable investments | 86,858 | 83,998 | ||
Asset-backed Securities | Level 2 | ||||
Amortized Costs | 28,078 | 26,906 | ||
Gross Unrealized Gains | 2 | 4 | ||
Gross Unrealized Loss | (17) | (22) | ||
Estimated Fair Value | 28,063 | 26,888 | ||
Cash and cash equivalents | 0 | 0 | ||
Short-term marketable investments | 28,063 | 26,888 | ||
Mortgage backed Securities | Level 2 | ||||
Amortized Costs | 116 | |||
Gross Unrealized Gains | 0 | |||
Gross Unrealized Loss | (1) | |||
Estimated Fair Value | 115 | |||
Cash and cash equivalents | 0 | |||
Short-term marketable investments | 115 | |||
Agency Bond | Level 2 | ||||
Amortized Costs | 2,000 | |||
Gross Unrealized Gains | 0 | |||
Gross Unrealized Loss | 0 | |||
Estimated Fair Value | 2,000 | |||
Cash and cash equivalents | 0 | |||
Short-term marketable investments | 2,000 | |||
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 |
Intangible Assets Schedule Of I
Intangible Assets Schedule Of Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Gross Carrying Amount | $ 30,668 | $ 30,235 |
Accumulated Amortization | (14,718) | (13,197) |
Net Carrying Amount | 15,950 | 17,038 |
Technology | ||
Gross Carrying Amount | 18,958 | 18,685 |
Accumulated Amortization | (7,711) | (7,010) |
Net Carrying Amount | 11,247 | 11,675 |
Customer relationships | ||
Gross Carrying Amount | 9,535 | 9,419 |
Accumulated Amortization | (6,523) | (6,187) |
Net Carrying Amount | 3,012 | 3,232 |
Trade names/domains | ||
Gross Carrying Amount | 2,080 | 2,036 |
Accumulated Amortization | (389) | 0 |
Net Carrying Amount | 1,691 | 2,036 |
In-process research and development | ||
Gross Carrying Amount | 95 | 95 |
Accumulated Amortization | (95) | 0 |
Net Carrying Amount | $ 0 | $ 95 |
Intangible Assets Schedule Of F
Intangible Assets Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Intangible Assets Schedule Of Future Amortization Of Intangibles Details | |
Remaining 2,018 | $ 3,619 |
2,019 | 4,512 |
2,020 | 3,096 |
2,021 | 2,740 |
2,022 | 1,756 |
Thereafter | 227 |
Total | $ 15,950 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Location (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill, beginning balance | $ 46,136 |
Foreign currency translation | 790 |
Goodwill, ending balance | 46,926 |
Americas | |
Goodwill, beginning balance | 27,309 |
Foreign currency translation | 0 |
Goodwill, ending balance | 27,309 |
Europe | |
Goodwill, beginning balance | 18,827 |
Foreign currency translation | 790 |
Goodwill, ending balance | $ 19,617 |
Commitments and Contingencies30
Commitments and Contingencies (Operating Leases) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Year ending March 31: | |
Remaining 2,018 | $ 3,792 |
2,019 | 5,704 |
2,020 | 5,015 |
2,021 | 2,545 |
2,022 | 2,243 |
Thereafter | 4,976 |
Total | $ 24,275 |
Stock-based Compensation Stock-
Stock-based Compensation Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | $ 6,351 | $ 5,051 |
Cost of service revenue | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 391 | 360 |
Cost of product revenue | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 0 | 0 |
Research and development | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 1,337 | 887 |
Sales and marketing | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 2,647 | 1,915 |
General and administrative | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | $ 1,976 | $ 1,889 |
Stock-based Compensation Option
Stock-based Compensation Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-based Compensation Option Activity Details | ||
Balance at beginning of period | 4,462 | 4,793 |
Granted | 35 | 54 |
Exercised | (101) | (192) |
Cancelled/forfeited | (48) | 0 |
Balance at end of period | 4,348 | 4,655 |
Weighted-average exercise price of options granted during period | $ 4.93 | $ 5.45 |
Total intrinsic value of options exercised during the period | $ 792 | $ 2,018 |
Weighted Average Remaining recognition period in years | 1 year 331 days | 2 years 79 days |
Stock-based Compensation Stock
Stock-based Compensation Stock Awards Activity (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-based Compensation Stock Awards Activity Details | ||
Balance at beginning of period | 4,950 | 4,545 |
Granted | 370 | 301 |
Vested | (189) | (312) |
Canceled and forfeited | (128) | (101) |
Balance at end of period | 5,003 | 4,433 |
Weighted-average grant date fair market value of restricted stock rights granted | $ 13.50 | $ 11.53 |
Weighted-average remaining contractual term, in years, ending balance | 2 years 162 days | 2 years 176 days |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Stock-based Compensation Narrative Details | ||
Total unrecognized compensation expense related to stock awards | $ 46,171 | $ 32,920 |
Stock Repurchases 2017 (Detail)
Stock Repurchases 2017 (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | |
Stock Repurchases 2017 Detail | ||
Stock repurchased and retired during period, shares | 0 | |
Stock repurchased and retired during period, value | $ 0 | |
Stock repurchase program, authorized amount | $ 25,000,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Effective Income Tax Rate, Percent | 36.30% | (7.50%) |
Federal | ||
U.S. federal statutory rate | 34.00% |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||
Net loss available to common stockholders | $ (2,169) | $ (528) |
Denominator: | ||
Common shares | 91,643 | 89,434 |
Denominator for basic calculation | 91,643 | 89,434 |
Denominator for diluted calculation | 91,643 | 89,434 |
Net loss per share: | ||
Basic | $ (0.02) | $ (0.01) |
Diluted | $ (0.02) | $ (0.01) |
Net Income (Loss) Per Share (Op
Net Income (Loss) Per Share (Options and Awards Excluded) (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Anti-dilutive shares | 9,351 | 9,088 |
Stock options | ||
Anti-dilutive shares | 4,348 | 4,655 |
Stock awards | ||
Anti-dilutive shares | 5,003 | 4,433 |
Segment Reporting Revenue and P
Segment Reporting Revenue and Property and Equipment by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | |
Net revenue | $ 69,098 | $ 60,041 | |
Depreciation and amortization expense | 3,727 | 2,577 | |
Net income (loss) | (2,169) | (528) | |
Intersegment revenues eliminated in consolidation | 2,500 | 1,100 | |
Total assets | 360,146 | $ 333,855 | |
Property and equipments, net | 26,973 | 16,384 | |
Americas | |||
Net revenue | 62,405 | 53,398 | |
Depreciation and amortization expense | 2,533 | 1,618 | |
Net income (loss) | 409 | 1,466 | |
Total assets | 309,212 | 284,011 | |
Property and equipments, net | 20,519 | 11,803 | |
Europe | |||
Net revenue | 6,693 | 6,643 | |
Depreciation and amortization expense | 1,194 | 959 | |
Net income (loss) | (2,578) | $ (1,994) | |
Total assets | 50,934 | 49,844 | |
Property and equipments, net | $ 6,454 | $ 4,581 |