Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 30, 2017 | May 31, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | QAD INC | |
Entity Central Index Key | 1,036,188 | |
Trading Symbol | qada | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 3,211,691 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,817,834 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Assets | ||
Cash and equivalents | $ 153,348 | $ 145,082 |
Accounts receivable, net of allowances of $2,221 and $2,205 at April 30, 2017 and January 31, 2017, respectively | 46,381 | 69,441 |
Other current assets | 15,851 | 15,351 |
Total current assets | 215,580 | 229,874 |
Property and equipment, net | 30,497 | 30,872 |
Capitalized software costs, net | 641 | 732 |
Goodwill | 10,646 | 10,558 |
Deferred tax assets, net | 6,455 | 6,166 |
Other assets, net | 1,978 | 2,688 |
Total assets | 265,797 | 280,890 |
Liabilities and Stockholders’ Equity | ||
Current portion of long-term debt | 450 | 446 |
Accounts payable | 8,168 | 11,316 |
Deferred revenue | 97,235 | 104,125 |
Other current liabilities | 30,231 | 33,636 |
Total current liabilities | 136,084 | 149,523 |
Long-term debt | 13,654 | 13,767 |
Other liabilities | 5,037 | 4,914 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; none issued or outstanding | ||
Additional paid-in capital | 199,069 | 197,594 |
Treasury stock, at cost (1,115,536 shares and 1,125,552 shares at April 30, 2017 and January 31, 2017, respectively) | (15,047) | (15,170) |
Accumulated deficit | (65,029) | (61,127) |
Accumulated other comprehensive loss | (7,991) | (8,631) |
Total stockholders’ equity | 111,022 | 112,686 |
Total liabilities and stockholders’ equity | 265,797 | 280,890 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Class A, $0.001 par value. Authorized 71,000,000 shares; issued 16,605,215 shares at both April 30, 2017 and January 31, 2017 | 16 | 16 |
Class B, $0.001 par value. Authorized 4,000,000 shares; issued 3,537,380 shares at both April 30, 2017 and January 31, 2017 | 16 | 16 |
Common Class B [Member] | ||
Stockholders’ equity: | ||
Class A, $0.001 par value. Authorized 71,000,000 shares; issued 16,605,215 shares at both April 30, 2017 and January 31, 2017 | 4 | 4 |
Class B, $0.001 par value. Authorized 4,000,000 shares; issued 3,537,380 shares at both April 30, 2017 and January 31, 2017 | $ 4 | $ 4 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Accounts receivable, net of allowance | $ 2,221 | $ 2,205 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 1,115,536 | 1,125,552 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 71,000,000 | 71,000,000 |
Common stock, shares issued (in shares) | 16,605,215 | 16,605,215 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 71,000,000 | 71,000,000 |
Common stock, shares issued (in shares) | 16,605,215 | 16,605,215 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Common stock, shares issued (in shares) | 3,537,380 | 3,537,380 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Common stock, shares issued (in shares) | 3,537,380 | 3,537,380 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Revenue: | ||
Subscription fees | $ 15,343 | $ 11,492 |
License fees | 5,265 | 3,947 |
Maintenance and other | 31,906 | 32,836 |
Professional services | 18,868 | 17,122 |
Total revenue | 71,382 | 65,397 |
Costs of revenue: | ||
Subscription fees | 7,720 | 6,200 |
License fees | 685 | 725 |
Maintenance and other | 7,694 | 7,769 |
Professional services | 18,767 | 17,444 |
Total cost of revenue | 34,866 | 32,138 |
Gross profit | 36,516 | 33,259 |
Operating expenses: | ||
Sales and marketing | 17,587 | 16,938 |
Research and development | 11,532 | 11,143 |
General and administrative | 8,593 | 8,006 |
Amortization of intangibles from acquisitions | 163 | 165 |
Total operating expenses | 37,875 | 36,252 |
Operating loss | (1,359) | (2,993) |
Other expense (income): | ||
Interest income | (168) | (172) |
Interest expense | 156 | 174 |
Other expense (income), net | 604 | 870 |
Total other expense, net | 592 | 872 |
Loss before income taxes | (1,951) | (3,865) |
Income tax expense (benefit) | 620 | (1,073) |
Net loss | (2,571) | (2,792) |
Diluted net loss per share | ||
Net loss | (2,571) | (2,792) |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 640 | 606 |
Total comprehensive loss | (1,931) | (2,186) |
Common Class A [Member] | ||
Other expense (income): | ||
Net loss | $ (2,199) | $ (2,384) |
Basic net loss per share | ||
Basic net (loss) income per share (in dollars per share) | $ (0.14) | $ (0.15) |
Diluted net loss per share | ||
Diluted net (loss) income per share (in dollars per share) | $ (0.14) | $ (0.15) |
Net loss | $ (2,199) | $ (2,384) |
Common Class B [Member] | ||
Other expense (income): | ||
Net loss | $ (372) | $ (408) |
Basic net loss per share | ||
Basic net (loss) income per share (in dollars per share) | $ (0.12) | $ (0.13) |
Diluted net loss per share | ||
Diluted net (loss) income per share (in dollars per share) | $ (0.12) | $ (0.13) |
Net loss | $ (372) | $ (408) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (2,571) | $ (2,792) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,522 | 1,476 |
Provision for doubtful accounts and sales adjustments | 113 | 49 |
Stock-based compensation expense | 1,768 | 1,608 |
Change in fair value of interest rate swap | (13) | 31 |
Changes in assets and liabilities: | ||
Accounts receivable | 23,250 | 21,430 |
Other assets | (111) | (2,964) |
Accounts payable | (3,279) | (3,151) |
Deferred revenue | (7,623) | (7,480) |
Other liabilities | (5,174) | (6,850) |
Net cash provided by operating activities | 7,882 | 1,357 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (652) | (1,074) |
Capitalized software costs | (143) | (12) |
Net cash used in investing activities | (795) | (1,086) |
Cash flows from financing activities: | ||
Repayments of debt | (129) | (106) |
Tax payments, net of proceeds, related to stock awards | (170) | (369) |
Net cash used in financing activities | (299) | (475) |
Effect of exchange rates on cash and equivalents | 1,478 | 2,351 |
Net increase in cash and equivalents | 8,266 | 2,147 |
Cash and equivalents at beginning of period | 145,082 | 137,731 |
Cash and equivalents at end of period | 153,348 | 139,878 |
Supplemental disclosure of non-cash activities: | ||
Obligations associated with dividend declaration | $ 1,331 | $ 1,316 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Recent Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS Basis of Presentation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements fairly present the financial information contained therein. These statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10 10 X. ’s opinion, all necessary adjustments, consisting of normal, recurring and non-recurring adjustments, have been included in the accompanying Condensed Consolidated Financial Statements to present fairly the financial position and operating results of QAD Inc. (“QAD” or the “Company”). The Condensed Consolidated Financial Statements do not 10 January 31, 2017. three April 30, 2017 not January 31, 2018. Recent Accounting Pronouncements With the exception of those discussed below, there have been no three April 30, 2017, Accounting Standards Not In May 2014, 2014 09, Revenue from Contracts with Customers five August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 , to defer the effective date of ASU 2014 09 one 2014 09 2019 not first 2019, The Company anticipates this standard might have a material impact on its consolidated financial statements. The Company has assigned internal resources and has hired third valuation of that impact. While the assessment of all potential impacts of the standard is on-going, the Company currently believes the most significant impact relates to accounting for software license revenue. The requirement to have VSOE for undelivered elements to enable the separation of revenue for the delivered software licenses is eliminated under the new standard. In addition, removal of current limitations on contingent revenue may Due to the complexity of some contracts, the actu al revenue recognition treatment required under the new standard for these arrangements may five seven While the Company continues to assess the potential impacts and disclosure requirements of the new standard, the Company cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements. In February 2016, 2016 02, Leases (Topic 842 2016 02 2016 02 first 2020 2016 02 2016 02. In October 2016, 2016 16, Income Taxes: Intra-Entity Transfers of Assets Other than Inventory 2016 16 February 1, 2018. In January 2017, 2017 04, Intangibles—Goodwill and Other (Topic 350 2 zero 2 February 1, 2020. not 2017 04 In January 2017, 2017 01, Business Combinations: Clarifying the Definition of a Business, February 1, 2018. 2017 01 |
Note 2 - Computation of Net Los
Note 2 - Computation of Net Loss Per Share | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 2. COMPUTATION OF NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended April 30, 201 7 201 6 (in thousands except per share data) Net loss $ (2,571 ) $ (2,792 ) Less: Dividends declared (1,331 ) (1,316 ) Undistributed net loss $ (3,902 ) $ (4,108 ) Net loss per share – Class A Common Stock Dividends declared $ 1,138 $ 1,124 Allocation of undistributed net loss (3,337 ) (3,508 ) Net loss attributable to Class A common stock $ (2,199 ) $ (2,384 ) Weighted average shares of Class A common stock outstanding — basic 15,809 15,594 Weighted average potential shares of Class A common stock — — Weighted average shares of Class A common stock and potential common shares outstanding — diluted 15,809 15,594 Basic net loss per Class A common share $ (0.14 ) $ (0.15 ) Diluted net loss per Class A common share $ (0.14 ) $ (0.15 ) Net loss per share – Class B Common Stock Dividends declared $ 193 $ 192 Allocation of undistributed net loss (565 ) (600 ) Net loss attributable to Class B common stock $ (372 ) $ (408 ) Weighted average shares of Class B common stock outstanding — basic 3,210 3,204 Weighted average potential shares of Class B common stock — — Weighted average shares of Class B common stock and potential common shares outstanding — diluted 3,210 3,204 Basic net loss per Class B common share $ (0.12 ) $ (0.13 ) Diluted net loss per Class B common share $ (0.12 ) $ (0.13 ) Potential common shares consist of the shares issuable upon the release of restricted stock units (“RSUs”) and the exercise of stock options and stock appreciation rights (“SARs”). The Company ’s unvested RSUs and unexercised SARs are not not The following table sets forth the number of potential common shares not Three Months Ended April 30, 201 7 201 6 (in thousands) Class A 3,036 2,807 Class B 389 349 |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 3. FAIR VALUE MEASUREMENTS When determining fair value, the Company uses a three value. Whenever possible, the Company uses observable market data. The Company relies on unobservable inputs only when observable market data is not The following table sets forth the financial assets and liabilities, measured at fair value, as of April 30, 2017 January 31, 2017: Fair value measurement at reporting date using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Money market mutual funds as of April 30, 2017 (a) $ 121,699 Money market mutual funds as of January 31, 2017 (a) $ 116,043 Liability related to the interest rate swap as of April 30, 2017 (b) $ (177 ) Liability related to the interest rate swap as of January 31, 2017 (b) $ (190 ) ___________________________ (a) Money market mutual funds are recorded at fair value based upon quoted market prices. (b) The liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves. Money market mutual funds are classified as part of “Cash and equivalents” in the accompanying Condensed Consolidated Balance Sheets. The amount of cash and equivalents deposited with commercial banks was $3 1 $29 April 30, 2017 January 31, 2017, The Company ’s line of credit and notes payable both bear a variable market interest rate commensurate with the Company’s credit standing. Therefore, the carrying amounts outstanding under the line of credit and note payable reasonably approximate fair value based on Level 2 There have been no three April 30, 2017. Derivative Instruments The Company entered into an interest rate swap in May 2012 one 6 a liability in the Condensed Consolidated Balance Sheets and the change in fair value is reported in “Other (income) expense” in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The fair value of the interest rate swap is estimated as the net present value of projected cash flows based upon forward interest rates at the balance sheet date. The fair values of the derivative instrument at April 30, 2017 January 31, 2017 Liability Fair Value Balance Sheet Location April 30, 2017 January 31, 2017 Derivative instrument: Interest rate swap Other liabilities $ (177 ) $ (190 ) Total $ (177 ) $ (190 ) The change in fair value of the interest rate swap recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss for the three April 30, 2017 April 30, 2016 $13,000 31,000 |
Note 4 - Capitalized Software C
Note 4 - Capitalized Software Costs | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Capitalized Software Costs [Text Block] | 4. Capitalized software costs and accumulated amortization at April 30, 2017 January 31, 2017 April 30, 201 7 January 31, 201 7 (in thousands) Capitalized software costs: Acquired software technology $ 3,458 $ 3,458 Capitalized software development costs 732 748 4,190 4,206 Less accumulated amortization (3,549 ) (3,474 ) Capitalized software costs, net $ 641 $ 732 Acquired software technology costs relate to technology purchased as a result of the Company ’s fiscal 2013 It is the Company ’s policy to write off capitalized software development costs once fully amortized. Accordingly, during the first three 2018, $0.2 Amortization of cap italized software costs was $0.2 three April 30, 2017 2016. The following table summarizes the estimated amortization expense relating to the Company ’s capitalized software costs as of April 30, 2017: Fiscal Years (in thousands) 201 8 remaining $ 443 201 9 123 20 20 70 202 1 5 $ 641 |
Note 5 - Goodwill and Intangibl
Note 5 - Goodwill and Intangible Assets | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the three April 30, 2017 Gross Carrying Amount Accumulated Impairment Goodwill, Net (in thousands) Balance at January 31, 201 7 $ 26,166 $ (15,608 ) $ 10,558 Impact of foreign currency translation 88 - 88 Balance at April 30, 201 7 $ 26,254 $ (15,608 ) $ 10,646 The Company performed its annual goodwill impairment review during t he fourth 2017. November 30, 2016. no 2017. No three April 30, 2017 Intangible Assets April 30, 201 7 January 31, 201 7 (in thousands) Amortizable intangible assets Customer relationships (1) $ 2,742 $ 2,721 Trade name 515 515 3,257 3,236 Less: accumulated amortization (3,004 ) (2,821 ) Net amortizable intangible assets $ 253 $ 415 ______________________ ( 1 Customer relationships include the impact of foreign currency translation. The Company ’s intangible assets are related to the DynaSys and CEBOS acquisitions completed in fiscal 2013. April 30, 2017, Amortizati on of intangible assets was $0.2 three April 30, 2017 2016. April 30, 2017 $253,000 2018. |
Note 6 - Debt
Note 6 - Debt | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6. DEBT April 30, 2017 January 31, 2017 (in thousands) Note payable $ 14,158 $ 14,269 Less current maturities (450 ) (446 ) Less loan origination costs, net (54 ) (56 ) Long-term debt $ 13,654 $ 13,767 Note Payable Effective May 30, 2012 “2012 2012 $16.1 one 2.25%. 0.99% April 30, 2017. 2012 June 2022 ’s headquarters located in Santa Barbara, California. In conjunction with the 2012 $16.1 4.31% 2012 2012 $88,100 one $11.7 April 30, 2017 $14.2 Credit Facility The Company has an unsecured credit agreement with Rabobank, N.A. (the “Facility”). The Facility provides a commitment through July 15, 2017 $20 0.25% $20 one 0.75%. April 30, 2017, 1.74%. The Facility provides that the Company maintain certain financial and operating ratios which include, among other provisions, minimum liquidity on a consolidated basis of $25 not 1.3 1.0 not 1.5 1.0 not 1.5 1.0 ’s ability to incur additional indebtedness. As of April 30, 2017, no |
Note 7 - Accumulated Other Comp
Note 7 - Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Accumulated Other Comprehensive Income (Loss) [Text Block] | 7. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss, net of taxes, were as follows: Foreign Currency Translation Adjustments (in thousands) Balance as of January 31, 201 7 $ (8,631 ) Other comprehensive income before reclassifications 640 Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive income 640 Balance as of April 30, 201 7 $ (7,991 ) During the first three 2018 no |
Note 8 - Income Taxes
Note 8 - Income Taxes | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. INCOME TAXES In determining the quarterly provision for income taxes for the first 2018, The Company recorded income tax expense (benefit) of $0.6 1.1 first three 2018 2017, ’ s effective tax rate decreased to ( 32% 28% not January 31, 2017 first 2017, The gross amount of unrecognized tax benefits was $1.8 April 30, 2017, 2013 11, $1.0 $1.0 ’s effective tax rate. This liability is classified as long-term unless the liability is expected to conclude within twelve twelve $0.1 The Company ’s policy is to recognize interest and penalties, if any, related to unrecognized tax benefits as a component of income tax expense. As of April 30, 2017, $0.3 The Company files U.S. federal, state, and foreign tax returns that are subject to audit by various tax authorities. The Company is currently under audit in: ● India for fiscal years ended March 31, 2010, 2013, 2014 2016 ● Iowa for fiscal year ended January 31, 2014 ● China for calendar years 2013, 2014, 2015 2016 During the first 2018, no ● India for fiscal years ended March 31, 2015 |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. STOCKHOLDERS’ EQUITY Dividends The following table sets forth the dividends that were declared by the Company during the first three 2018: Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount 4/11/2017 4/25/2017 5/2/2017 $ 0.072 $ 0.06 $ 1,331,000 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. STOCK-BASED COMPENSATION The Company ’s equity awards consist of RSUs and SARs. For a description of the Company’s stock-based compensation plans, see Note 5 10 January 31, 2017. Stock-Based Compensation The following table sets forth reported stock-based compensation expense for the three months ended April 30, 2017: Three Months Ended April 30, 201 7 201 6 (in thousands) Cost of subscription $ 25 $ 22 Cost of maintenance and other revenue 77 67 Cost of professional services 220 173 Sales and marketing 317 277 Research and development 253 236 General and administrative 876 833 Total stock-based compensation expense $ 1,768 $ 1,608 RSU Information The estimated fair value of RSUs was calculated based on the closing price of the Company ’s common stock on the date of grant, reduced by the present value of dividends foregone during the vesting period. The following table summarizes the activity for RSUs for the three April 30, 2017: RSUs Weighted Average Grant Date Fair Value (in thousands) Restricted stock at January 31, 201 7 623 $ 20.56 Granted 24 27.04 Released (1) (5 ) 24.39 Forfeited (4 ) 19.79 Restricted stock at April 30, 2017 638 $ 20.78 _________________________ ( 1 The number of RSUs released includes shares withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. The Company withholds a portion of the released shares as consideration for the Company’s payment of applicable employee income taxes. During the three April 30, 2017, 2,000 $61,000. Total unrecognized compensation cost related to RSUs was approximately $9.4 April 30, 2017. 2.5 SAR Information The following table summarizes the activity for outstanding SARs for the three April 30, 2017: SARs (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 201 7 2,793 $ 15.51 Granted — — Exercised (17 ) 9.79 Expired — — Forfeited — — Outstanding at April 30, 2017 2,776 $ 15.54 4.2 $ 38,958 Vested and exercisable at April 30, 2017 1,786 $ 12.96 3.1 $ 29,730 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the aggregate difference between the closing stock price of the Company ’s common stock based on the last trading day as of April 30, 2017, April 30, 2017. three April 30, 2017 $0.3 The number of SARs exercised includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. During the three April 30, 2017, 4,000 $0.1 At April 30, 2017, $4.3 2.3 |
Note 11 - Deferred Revenues
Note 11 - Deferred Revenues | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Deferred Revenue Disclosure [Text Block] | 11. Deferred revenues consisted of the following: April 30, 201 7 January 31, 201 7 (in thousands) Deferred maintenance revenue $ 70,665 $ 78,923 Deferred subscription revenue 23,352 20,389 Deferred services revenue 1,686 2,550 Deferred license revenue 884 1,740 Deferred other revenue 648 523 Deferred revenues, current 97,235 104,125 Deferred revenues, non-current (in Other liabilities) 2,569 2,353 Total deferred revenues $ 99,804 $ 106,478 Deferred maintenance and subscription revenues represent billings and customer payments made in advance for support and subscription contracts. Support and subscription are billed in advance with corresponding revenues being recognized ratably over the support and subscription periods. Support is typically billed annually while subscription is billed quarterly or annually. Deferred license revenues result from undelivered products or specified enhancements, customer specific acceptance provisions and software license transactions that cannot be segmented from undelivered consulting or other services. Deferred services revenues represent both prepayments for our professional services where revenues for these services are generally recognized as the Company completes the performance obligations for the prepaid services and services already provided but deferred due to software revenue recognition rules. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. COMMITMENTS AND CONTINGENCIES Indemnifications The Company sells software licenses and services to its customers under written agreements. Each agreement contains the relevant terms of the contractual arrangement with the customer and generally includes certain provisions for indemnifying the customer against losses, expenses and liabilities from damages that may ’s software is found to infringe upon certain intellectual property rights of a third The Company believes its internal development processes and other policies and practices limit its exposure related to the indemnification provisions of the agreements. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the agreements, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. Legal Actions The Company is subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not ’s consolidated results of operations, financial position or liquidity. |
Note 13 - Business Segment Info
Note 13 - Business Segment Information | 3 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 13. BUSINESS SEGMENT INFORMATION The Company markets its products and services worldwide, primarily to companies in the manufacturing industry, including automotive, consumer products, food and beverage, high technology, industrial products and life sciences industries. The Company sells and licenses its products through its direct sales force in four third ’s Chief Operating Decision Maker, the Chief Executive Officer, reviews the consolidated results within one S ubscription, license and maintenance revenues are allocated to the region where the end user is located. Services revenue is assigned based on the region where the services are performed. Three Months Ended April 30, 201 7 201 6 Revenue: (in thousands) North America (1) $ 33,370 $ 29,519 EMEA 20,881 19,792 Asia Pacific 12,166 11,680 Latin America 4,965 4,406 $ 71,382 $ 65,397 ____________________________ ( 1 Sales into Canada accounted for 1% 2% three April 30, 2017 2016, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements fairly present the financial information contained therein. These statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10 10 X. ’s opinion, all necessary adjustments, consisting of normal, recurring and non-recurring adjustments, have been included in the accompanying Condensed Consolidated Financial Statements to present fairly the financial position and operating results of QAD Inc. (“QAD” or the “Company”). The Condensed Consolidated Financial Statements do not 10 January 31, 2017. three April 30, 2017 not January 31, 2018. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements With the exception of those discussed below, there have been no three April 30, 2017, Accounting Standards Not In May 2014, 2014 09, Revenue from Contracts with Customers five August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 , to defer the effective date of ASU 2014 09 one 2014 09 2019 not first 2019, The Company anticipates this standard might have a material impact on its consolidated financial statements. The Company has assigned internal resources and has hired third valuation of that impact. While the assessment of all potential impacts of the standard is on-going, the Company currently believes the most significant impact relates to accounting for software license revenue. The requirement to have VSOE for undelivered elements to enable the separation of revenue for the delivered software licenses is eliminated under the new standard. In addition, removal of current limitations on contingent revenue may Due to the complexity of some contracts, the actu al revenue recognition treatment required under the new standard for these arrangements may five seven While the Company continues to assess the potential impacts and disclosure requirements of the new standard, the Company cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements. In February 2016, 2016 02, Leases (Topic 842 2016 02 2016 02 first 2020 2016 02 2016 02. In October 2016, 2016 16, Income Taxes: Intra-Entity Transfers of Assets Other than Inventory 2016 16 February 1, 2018. In January 2017, 2017 04, Intangibles—Goodwill and Other (Topic 350 2 zero 2 February 1, 2020. not 2017 04 In January 2017, 2017 01, Business Combinations: Clarifying the Definition of a Business, February 1, 2018. 2017 01 |
Note 2 - Computation of Net L20
Note 2 - Computation of Net Loss Per Share (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended April 30, 201 7 201 6 (in thousands except per share data) Net loss $ (2,571 ) $ (2,792 ) Less: Dividends declared (1,331 ) (1,316 ) Undistributed net loss $ (3,902 ) $ (4,108 ) Net loss per share – Class A Common Stock Dividends declared $ 1,138 $ 1,124 Allocation of undistributed net loss (3,337 ) (3,508 ) Net loss attributable to Class A common stock $ (2,199 ) $ (2,384 ) Weighted average shares of Class A common stock outstanding — basic 15,809 15,594 Weighted average potential shares of Class A common stock — — Weighted average shares of Class A common stock and potential common shares outstanding — diluted 15,809 15,594 Basic net loss per Class A common share $ (0.14 ) $ (0.15 ) Diluted net loss per Class A common share $ (0.14 ) $ (0.15 ) Net loss per share – Class B Common Stock Dividends declared $ 193 $ 192 Allocation of undistributed net loss (565 ) (600 ) Net loss attributable to Class B common stock $ (372 ) $ (408 ) Weighted average shares of Class B common stock outstanding — basic 3,210 3,204 Weighted average potential shares of Class B common stock — — Weighted average shares of Class B common stock and potential common shares outstanding — diluted 3,210 3,204 Basic net loss per Class B common share $ (0.12 ) $ (0.13 ) Diluted net loss per Class B common share $ (0.12 ) $ (0.13 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended April 30, 201 7 201 6 (in thousands) Class A 3,036 2,807 Class B 389 349 |
Note 3 - Fair Value Measureme21
Note 3 - Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair value measurement at reporting date using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Money market mutual funds as of April 30, 2017 (a) $ 121,699 Money market mutual funds as of January 31, 2017 (a) $ 116,043 Liability related to the interest rate swap as of April 30, 2017 (b) $ (177 ) Liability related to the interest rate swap as of January 31, 2017 (b) $ (190 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Liability Fair Value Balance Sheet Location April 30, 2017 January 31, 2017 Derivative instrument: Interest rate swap Other liabilities $ (177 ) $ (190 ) Total $ (177 ) $ (190 ) |
Note 4 - Capitalized Software22
Note 4 - Capitalized Software Costs (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Capitalized Software Costs [Table Text Block] | April 30, 201 7 January 31, 201 7 (in thousands) Capitalized software costs: Acquired software technology $ 3,458 $ 3,458 Capitalized software development costs 732 748 4,190 4,206 Less accumulated amortization (3,549 ) (3,474 ) Capitalized software costs, net $ 641 $ 732 |
Schedule of Capitalized Software Costs Amortization Expense [Table Text Block] | Fiscal Years (in thousands) 201 8 remaining $ 443 201 9 123 20 20 70 202 1 5 $ 641 |
Note 5 - Goodwill and Intangi23
Note 5 - Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount Accumulated Impairment Goodwill, Net (in thousands) Balance at January 31, 201 7 $ 26,166 $ (15,608 ) $ 10,558 Impact of foreign currency translation 88 - 88 Balance at April 30, 201 7 $ 26,254 $ (15,608 ) $ 10,646 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | April 30, 201 7 January 31, 201 7 (in thousands) Amortizable intangible assets Customer relationships (1) $ 2,742 $ 2,721 Trade name 515 515 3,257 3,236 Less: accumulated amortization (3,004 ) (2,821 ) Net amortizable intangible assets $ 253 $ 415 |
Note 6 - Debt (Tables)
Note 6 - Debt (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | April 30, 2017 January 31, 2017 (in thousands) Note payable $ 14,158 $ 14,269 Less current maturities (450 ) (446 ) Less loan origination costs, net (54 ) (56 ) Long-term debt $ 13,654 $ 13,767 |
Note 7 - Accumulated Other Co25
Note 7 - Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments (in thousands) Balance as of January 31, 201 7 $ (8,631 ) Other comprehensive income before reclassifications 640 Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive income 640 Balance as of April 30, 201 7 $ (7,991 ) |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Dividends Declared [Table Text Block] | Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount 4/11/2017 4/25/2017 5/2/2017 $ 0.072 $ 0.06 $ 1,331,000 |
Note 10 - Stock-based Compens27
Note 10 - Stock-based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended April 30, 201 7 201 6 (in thousands) Cost of subscription $ 25 $ 22 Cost of maintenance and other revenue 77 67 Cost of professional services 220 173 Sales and marketing 317 277 Research and development 253 236 General and administrative 876 833 Total stock-based compensation expense $ 1,768 $ 1,608 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | RSUs Weighted Average Grant Date Fair Value (in thousands) Restricted stock at January 31, 201 7 623 $ 20.56 Granted 24 27.04 Released (1) (5 ) 24.39 Forfeited (4 ) 19.79 Restricted stock at April 30, 2017 638 $ 20.78 |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | SARs (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 201 7 2,793 $ 15.51 Granted — — Exercised (17 ) 9.79 Expired — — Forfeited — — Outstanding at April 30, 2017 2,776 $ 15.54 4.2 $ 38,958 Vested and exercisable at April 30, 2017 1,786 $ 12.96 3.1 $ 29,730 |
Note 11 - Deferred Revenues (Ta
Note 11 - Deferred Revenues (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | April 30, 201 7 January 31, 201 7 (in thousands) Deferred maintenance revenue $ 70,665 $ 78,923 Deferred subscription revenue 23,352 20,389 Deferred services revenue 1,686 2,550 Deferred license revenue 884 1,740 Deferred other revenue 648 523 Deferred revenues, current 97,235 104,125 Deferred revenues, non-current (in Other liabilities) 2,569 2,353 Total deferred revenues $ 99,804 $ 106,478 |
Note 13 - Business Segment In29
Note 13 - Business Segment Information (Tables) | 3 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended April 30, 201 7 201 6 Revenue: (in thousands) North America (1) $ 33,370 $ 29,519 EMEA 20,881 19,792 Asia Pacific 12,166 11,680 Latin America 4,965 4,406 $ 71,382 $ 65,397 |
Note 1 - Basis of Presentatio30
Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Details Textual) | 3 Months Ended |
Apr. 30, 2017 | |
Minimum [Member] | |
Deferred Costs of Contracts, Expected Amortization Period | 5 years |
Maximum [Member] | |
Deferred Costs of Contracts, Expected Amortization Period | 7 years |
Note 2 - Computation of Net L31
Note 2 - Computation of Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Net loss per share – Class A Common Stock | ||
Dividends declared | $ 1,331 | $ 1,316 |
Allocation of undistributed net loss | (3,902) | (4,108) |
Net loss | (2,571) | (2,792) |
Less: Dividends declared | (1,331) | (1,316) |
Undistributed net loss | $ (3,902) | $ (4,108) |
Common Class A [Member] | ||
Weighted average shares of common stock outstanding—basic (in shares) | 15,809 | 15,594 |
Weighted average potential shares of common stock (in shares) | ||
Weighted average shares of common stock and potential common shares outstanding—diluted (in shares) | 15,809 | 15,594 |
Basic net loss per Class A common share (in dollars per share) | $ (0.14) | $ (0.15) |
Diluted net loss per Class A common share (in dollars per share) | $ (0.14) | $ (0.15) |
Net loss per share – Class A Common Stock | ||
Dividends declared | $ 1,138 | $ 1,124 |
Allocation of undistributed net loss | (3,337) | (3,508) |
Net loss | (2,199) | (2,384) |
Less: Dividends declared | (1,138) | (1,124) |
Undistributed net loss | $ (3,337) | $ (3,508) |
Common Class B [Member] | ||
Weighted average shares of common stock outstanding—basic (in shares) | 3,210 | 3,204 |
Weighted average potential shares of common stock (in shares) | ||
Weighted average shares of common stock and potential common shares outstanding—diluted (in shares) | 3,210 | 3,204 |
Basic net loss per Class A common share (in dollars per share) | $ (0.12) | $ (0.13) |
Diluted net loss per Class A common share (in dollars per share) | $ (0.12) | $ (0.13) |
Net loss per share – Class A Common Stock | ||
Dividends declared | $ 193 | $ 192 |
Allocation of undistributed net loss | (565) | (600) |
Net loss | (372) | (408) |
Less: Dividends declared | (193) | (192) |
Undistributed net loss | $ (565) | $ (600) |
Note 2 - Computation of Net L32
Note 2 - Computation of Net Loss Per Share - Anti-dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Common Class A [Member] | ||
Antidilutive securities excluded from computation of net income per share (in shares) | 3,036 | 2,807 |
Common Class B [Member] | ||
Antidilutive securities excluded from computation of net income per share (in shares) | 389 | 349 |
Note 3 - Fair Value Measureme33
Note 3 - Fair Value Measurements (Details Textual) - USD ($) | 3 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Cash and Cash Equivalents, at Carrying Value | $ 153,348,000 | $ 139,878,000 | $ 145,082,000 | $ 137,731,000 |
Interest Rate Swap [Member] | ||||
Derivative, Gain (Loss) on Derivative, Net | 13,000 | $ (31,000) | ||
Reported Value Measurement [Member] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 31,000,000 | $ 29,000,000 |
Note 3 - Fair Value Measureme34
Note 3 - Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 | |
Liability related to the interest rate swap | $ (177) | $ (190) | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Money market mutual funds | [1] | 121,699 | 116,043 |
Liability related to the interest rate swap | [2] | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Money market mutual funds | [1] | ||
Liability related to the interest rate swap | [2] | $ (177) | $ (190) |
[1] | Money market mutual funds are recorded at fair value based upon quoted market prices. | ||
[2] | The liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves. |
Note 3 - Fair Value Measureme35
Note 3 - Fair Value Measurements - Fair Values of the Derivative Instrument (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Derivative instrument: | ||
Fair value of derivative instrument | $ (177) | $ (190) |
Interest Rate Swap [Member] | Other Liabilities [Member] | ||
Derivative instrument: | ||
Fair value of derivative instrument | $ (177) | $ (190) |
Note 4 - Capitalized Software36
Note 4 - Capitalized Software Costs (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Capitalized Computer Software Write-Downs | $ 0.2 | |
Capitalized Computer Software, Amortization | $ 0.2 | $ 0.2 |
Note 4 - Capitalized Software37
Note 4 - Capitalized Software Costs - Capitalized Software Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Capitalized software costs: | ||
Acquired software technology | $ 3,458 | $ 3,458 |
Capitalized software development costs | 732 | 748 |
Total capitalized software costs | 4,190 | 4,206 |
Less accumulated amortization | (3,549) | (3,474) |
Capitalized software costs, net | $ 641 | $ 732 |
Note 4 - Capitalized Software38
Note 4 - Capitalized Software Costs - Estimated Amortization Expense (Details) - USD ($) | Apr. 30, 2017 | Jan. 31, 2017 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 253,000 | |
Total | 253,000 | $ 415,000 |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 443,000 | |
2,019 | 123,000 | |
2,020 | 70,000 | |
2,021 | 5,000 | |
Total | $ 641,000 |
Note 5 - Goodwill and Intangi39
Note 5 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | Jan. 31, 2017 | |
Goodwill, Impairment Loss | $ 0 | ||
Amortization of Intangible Assets | $ 163,000 | $ 165,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 253,000 |
Note 5 - Goodwill and Intangi40
Note 5 - Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2017USD ($) | |
Beginning balance, gross | $ 26,166 |
Accumulated impairment | (15,608) |
Beginning balance, net | 10,558 |
Impact of foreign currency translation, gross | 88 |
Impact of foreign currency translation, accumulated impairment | |
Impact of foreign currency translation, net | 88 |
Ending balance, gross | 26,254 |
Ending balance, net | $ 10,646 |
Note 5 - Goodwill and Intangi41
Note 5 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 | |
Amortizable intangible assets | |||
Amortizable intangible assets, gross | $ 3,257 | $ 3,236 | |
Less: accumulated amortization | (3,004) | (2,821) | |
Net amortizable intangible assets | 253 | 415 | |
Customer Relationships [Member] | |||
Amortizable intangible assets | |||
Amortizable intangible assets, gross | [1] | 2,742 | 2,721 |
Trade Names [Member] | |||
Amortizable intangible assets | |||
Amortizable intangible assets, gross | $ 515 | $ 515 | |
[1] | Customer relationships include the impact of foreign currency translation. |
Note 6 - Debt (Details Textual)
Note 6 - Debt (Details Textual) | May 30, 2012USD ($) | Apr. 30, 2017USD ($) |
2012 Mortgage [Member] | Quad Ortega Hill LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.99% | |
2012 Mortgage [Member] | Rabobank N.A [Member] | Quad Ortega Hill LLC [Member] | ||
Debt Instrument, Periodic Payment | $ 88,100 | |
Final Principal Payment | 11,700,000 | |
Debt Instrument, Face Amount | 16,100,000 | |
2012 Mortgage [Member] | Rabobank N.A [Member] | Quad Ortega Hill LLC [Member] | Swap [Member] | ||
Derivative Liability, Notional Amount | $ 16,100,000 | |
Derivative, Fixed Interest Rate | 4.31% | |
2012 Mortgage [Member] | Rabobank N.A [Member] | Quad Ortega Hill LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
Unsecured Credit Agreement [Member] | Rabobank N.A [Member] | ||
Loans Payable to Bank | $ 14,200,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |
Debt Instrument, Interest Rate, Effective Percentage | 1.74% | |
Liquidity on Consolidated Basis Minimum | $ 25,000,000 | |
Current Ratio Minimum | 1.3 | |
Leverage Ratio Maximum | 1.5 | |
Debt Service Coverage Ratio, Minimum | 1.5 | |
Long-term Line of Credit | $ 0 | |
Unsecured Credit Agreement [Member] | Rabobank N.A [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Note 6 - Debt - Summary of Debt
Note 6 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Note payable | $ 14,158 | $ 14,269 |
Less current maturities | (450) | (446) |
Less loan origination costs, net | (54) | (56) |
Long-term debt | $ 13,654 | $ 13,767 |
Note 7 - Accumulated Other Co44
Note 7 - Accumulated Other Comprehensive Loss (Details Textual) $ in Thousands | 3 Months Ended |
Apr. 30, 2017USD ($) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 |
Note 7 - Accumulated Other Co45
Note 7 - Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2017USD ($) | |
Balance | $ (8,631) |
Balance | (7,991) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | (8,631) |
Other comprehensive income before reclassifications | 640 |
Amounts reclassified from accumulated other comprehensive loss | |
Net current period other comprehensive income | 640 |
Balance | $ (7,991) |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Income Tax Expense (Benefit) | $ 620 | $ (1,073) |
Effective Income Tax Rate Reconciliation, Percent | 32.00% | 28.00% |
Unrecognized Tax Benefits | $ 1,800 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | (1,000) | |
Increase (Decrease) in Deferred Tax Asset | (1,000) | |
Unrecognized Tax Benefits Recognized in Next Twelve Months | 100 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 300 |
Note 9 - Stockholders' Equity -
Note 9 - Stockholders' Equity - Dividends (Details) - Dividends Declaration Date One [Member] | 3 Months Ended |
Apr. 30, 2017USD ($)$ / shares | |
Record date | Apr. 25, 2017 |
Payable | May 2, 2017 |
Amount | $ | $ 1,331,000 |
Common Class A [Member] | |
Dividend per share (in dollars per share) | $ 0.072 |
Common Class B [Member] | |
Dividend per share (in dollars per share) | $ 0.06 |
Note 10 - Stock-based Compens48
Note 10 - Stock-based Compensation (Details Textual) | 3 Months Ended |
Apr. 30, 2017USD ($)shares | |
Restricted Stock Units (RSUs) [Member] | |
Shares Paid for Tax Withholding for Share Based Compensation | shares | 2,000 |
Adjustments Related to Tax Withholding for Share-based Compensation | $ 61,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 9,400,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 182 days |
Stock Appreciation Rights (SARs) [Member] | |
Shares Paid for Tax Withholding for Share Based Compensation | shares | 4,000 |
Adjustments Related to Tax Withholding for Share-based Compensation | $ 100,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 4,300,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 109 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 300,000 |
Note 10 - Stock-based Compens49
Note 10 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Allocated stock-based compensation expense | $ 1,768 | $ 1,608 |
Cost of Subscription [Member] | ||
Allocated stock-based compensation expense | 25 | 22 |
Cost of Maintenance and Other Revenue [Member] | ||
Allocated stock-based compensation expense | 77 | 67 |
Cost of Professional Services [Member] | ||
Allocated stock-based compensation expense | 220 | 173 |
Selling and Marketing Expense [Member] | ||
Allocated stock-based compensation expense | 317 | 277 |
Research and Development Expense [Member] | ||
Allocated stock-based compensation expense | 253 | 236 |
General and Administrative Expense [Member] | ||
Allocated stock-based compensation expense | $ 876 | $ 833 |
Note 10 - Stock-based Compens50
Note 10 - Stock-based Compensation - RSUs Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 3 Months Ended | |
Apr. 30, 2017$ / sharesshares | ||
Restricted stock (in shares) | shares | 623 | |
Restricted stock, weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.56 | |
Granted (in shares) | shares | 24 | |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 27.04 | |
Released (in shares) | shares | (5) | [1] |
Released, weighted average grant date fair value (in dollars per share) | $ / shares | $ 24.39 | [1] |
Forfeited (in shares) | shares | (4) | |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 19.79 | |
Restricted stock (in shares) | shares | 638 | |
Restricted stock, weighted average grant date fair value (in dollars per share) | $ / shares | $ 20.78 | |
[1] | The number of RSUs released includes shares withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. |
Note 10 - Stock-based Compens51
Note 10 - Stock-based Compensation - Options/SARs Activity (Details) - Options/SARs [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Apr. 30, 2017USD ($)$ / sharesshares | |
Outstanding (in shares) | shares | 2,793 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 15.51 |
Granted (in shares) | shares | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | |
Exercised (in shares) | shares | (17) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 9.79 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 15.54 |
Outstanding at April 30, 2017 (Year) | 4 years 73 days |
Outstanding at April 30, 2017 | $ | $ 38,958 |
Vested and exercisable (in shares) | shares | 1,786 |
Vested and exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 12.96 |
Vested and exercisable, weighted average remaining contractual term (Year) | 3 years 36 days |
Vested and exercisable, aggregate intrinsic value | $ | $ 29,730 |
Expired (in shares) | shares | |
Expired, weighted average exercise price (in dollars per share) | $ / shares | |
Forfeited (in shares) | shares | |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | |
Outstanding (in shares) | shares | 2,776 |
Note 11 - Deferred Revenues - S
Note 11 - Deferred Revenues - Summary of Deferred Revenues (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jan. 31, 2017 |
Deferred revenue | $ 97,235 | $ 104,125 |
Deferred revenues, non-current (in Other liabilities) | 2,569 | 2,353 |
Total deferred revenues | 99,804 | 106,478 |
Software Service, Support and Maintenance Arrangement [Member] | ||
Deferred revenue | 70,665 | 78,923 |
Subscription Arrangement [Member] | ||
Deferred revenue | 23,352 | 20,389 |
Nonsoftware Service, Support and Maintenance Arrangement [Member] | ||
Deferred revenue | 1,686 | 2,550 |
Software License Arrangement [Member] | ||
Deferred revenue | 884 | 1,740 |
Deferred Other Revenue [Member] | ||
Deferred revenue | $ 648 | $ 523 |
Note 13 - Business Segment In53
Note 13 - Business Segment Information (Details Textual) | 3 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Number of Geographic Locations | 4 | |
Number of Operating Segments | 1 | |
Geographic Concentration Risk [Member] | North America Revenue [Member] | CANADA | ||
Concentration Risk, Percentage | 1.00% | 2.00% |
Note 13 - Business Segment In54
Note 13 - Business Segment Information - Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | ||
Revenue | $ 71,382 | $ 65,397 | |
Reportable Geographical Components [Member] | North America [Member] | |||
Revenue | [1] | 33,370 | 29,519 |
Reportable Geographical Components [Member] | EMEA [Member] | |||
Revenue | 20,881 | 19,792 | |
Reportable Geographical Components [Member] | Asia Pacific [Member] | |||
Revenue | 12,166 | 11,680 | |
Reportable Geographical Components [Member] | Latin America [Member] | |||
Revenue | $ 4,965 | $ 4,406 | |
[1] | Sales into Canada accounted for 1% and 2% of North America total revenue in the three months ended April 30, 2017 and 2016, respectively. |